Management - Chapters 4, 5, 6 Quiz

Starting service businesses

Which of the following is a good strategy for small businesses because of the ease of entry into the market?

NutriMax has introduced its low-fat cookies in Asia.

Which of the following is an example of a company that has identified a new market?

Evaluating the results

A plant manager had taken measures to try to reduce worker turnover. For four months, they monitored the implementation of the measures. They now find that the turnover rate is reduced by 10 percent. Which step of the rational decision-making model is illustrated in the scenario?

Identifying alternatives

After winning a large contract, Aisha needs to decide how to staff the project. She is currently calculating the costs of hiring new employees, using overtime, and adding a second shift. Which stage of the decision-making process is Aisha in?

Service

Angela runs a same-day delivery service. Her work involves hiring reliable drivers and working out their schedules. She has to monitor her drivers' locations to match them up with the delivery requests as calls come in from clients. She bills the clients on a monthly basis according to an established rate fee. Angela's business operates in the _____ industry.

Departmentalization

As his company has grown, Geert finds that he can no longer manage everything. He is now working to group jobs together in some way that makes sense for the workers and managers. What is Geert trying to establish?

More alternatives can be identified and evaluated.

As the head of Human Resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees—single, married, single parents, and older workers—on the team. Which of the following advantages will this team provide?

coordination

At Delta Corp. the manufacturing and design department frequently consults with the research and development department and the marketing and sales department regularly interacts with the manufacturing and design department. This scenario illustrates _____ at Delta.

Functional departmentalization

At Gamma Inc., there are separate departments of employees who specialize in sales, service maintenance, customer service, and accounting. Which form of departmentalization does Gamma use?

sequential interdependence

At Heritage Chocolates, the raw materials are processed at a plant and then sent to the manufacturing plant. The manufactured chocolates are finally sent to the packaging plant. This scenario illustrates _____ at Heritage Chocolates.

Reciprocal interdependence

At Libra Motors Inc. operations managers give availability information to the dealerships department. When the dealerships department has a specific order, it is sent to the operations department. Which of the following concepts is illustrated in the scenario?

Centralization

Gadgetbug Inc. manufactures home appliances. All the decisions are made by the top managers at the company. The middle and lower managers follow the instructions given by top managers rather than making decisions by themselves. Which of the following concepts is illustrated in the scenario?

Identifying alternatives

Christof noticed that the performances of his students on class tests have been declining. While attempting to find a solution to the problem, he thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly on the tests. Which step of the rational decision-making process is Christof in?

Nonprogrammed

Decisions made by top managers involving strategy, such as mergers and acquisitions, are examples of _____ decisions.

a venture capital company

Delta Inc., an electric car maker, initially had financing from a small group of investors seeking to make profits through rapid growth. The investors did not lend money, but invested it in the company in return for stock. Delta's source of financing was________.

Manufacturing

Delta LLC. purchases raw materials such as leather and canvas from suppliers and processes them into finished shoes. Delta LLC. operates in the _____ industry.

Escalation of commitment

Dorian is using a new process for screening potential employees in his department, but he is unsure if it is efficient and helps recruiters find the best candidates. However, Dorian continues to require the process because it was so expensive to set up the initial system. Which of the following concepts is illustrated in the scenario?

Strategic alliances

Geert would like to open a cafeteria to provide meals to workers at the local hospital. However, he needs to find a source of financing. He has approached the hospital to discuss itproviding and building the cafeteria. Which source of financing is Geert pursuing?

Wholesale

Graver Bros. Inc. is a company that buys packaged organic grains from local farmers and sells them to supermarkets in large cities. Graver Bros. Inc. operates in the _____ industry.

identifying a new market

Henry created a new flavor of ice cream to add tohis menu of homemade ice creams in the ice cream parlor he owns in Florida. The ice cream became an instant hit; he plans to sell the ice cream in Georgia by supplying it to retailers there. Henry is involved in_______.

Evaluating alternatives

In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of alternatives before choosing one?

Small-batch technology

Jeanne owns a boutique best known for the suits that she hand-makes for working women. Suits are customized for each of the customers, based on body type, personal style, and appearance goals. Which of the following technologies is Jeanne using in her boutique?

Political forces

Jinhoon owns and manages a franchise sandwich shop and pays his employees minimum wage. Recently, his employees have met to discuss how difficult it is to live on minimum wage, and to ask Jinhoon to increase the wages for all workers. Which type of decision-making element must Jinhoon now respond to?

programmed

Nutrimax Inc. sponsors a football championship in Oriel in August every year. The Oriel regional manager of Nutrimax sends across a check to the Oriel Football Association (OFA) in July of each year in order for them to prepare for the championship. The regional manager's decision about when to send the check to the OFA is a(n) _____ decision.

Choosing an industry in which to compete

Of the basic strategic challenges facing small firms, which one must be addressed first?

administrative costs rise because each department must have its own functional specialists

One disadvantage of using product departmentalization is that _____.

Work teams

PDC Industries has given a production line group the responsibility to design the work system to be used, including assigning tasks and monitoring and controlling its own performance. What approach is PDC using as an alternative to job specialization?

Satisfactoriness

Petra was looking for ways to double her plant's production capacity, and she considered acquiring the production plant of a rival company. The engineers in Petra's company advised her against it because acquiring the new plant would only increase their company's production by 15 percent. Petra's idea failed the test for _____ in the context of the rational decision-making process.

Nonprogrammed

R&D at Venus Electronics Inc. has created an innovative new device. Management now needs to decide if Venus should launch this device as its next new product. This is an example of a(n) _____ decision.

Satisficing

Ramon is in a hurry to appoint a personal assistant to help him. He posts an advertisement on a job website and picks the first person who sends in their resumé. He only checks for the candidate's qualifications and does not consider their work experience. This is an example of _____.

Product

Relish Inc. is a large corporation in the food industry that manufactures canned foods, confectionery, and baked foods. The organization has a separate department for each of these types of food manufactured. Each department integrates all the activities required to manage its respective line of food. Which of the following types of departmentalization is illustrated in the scenario?

a coalition

Rico's Tools Company just acquired Coney Tools. The purchase came about because the employees in both the research and development and the production departments at Rico's Tools joined forces to lobby for the purchase of Coney Tools as opposed to other companies. Both departments wanted Coney Tools because of its state-of-the-art research and production facilities. This is an example of _____.

entrepreneur

Sasha owns a day care center and makes all decisions about how the center runs, what services it provides, and at what prices. She has funded the venture with her own savings and has complete responsibility for the success or failure of the venture. Sasha is most likely a(n)________.

Midlife

SignaCorp is in a stage of slow and steady growth, and it appears to be heading toward stability. Which stage would it be in according to the factor of organizational life cycle?

Decentralization

Supertech operates in a business environment that is not predictable. The middle managers, supervisors, and employees have a degree of autonomy and are encouraged to make decisions. Which of the following concepts is illustrated in the scenario?

Mechanistic

Teresita structures her company activities in predictable ways, and she uses rules, specialized jobs, and centralized authority. Which type of process does Teresita use in her organization?

economy of scale

The idea that the manufacturing costs per unit decrease as the number of units produced increases is known as_______.

how much money is needed to start the business and keep it operating

The most important element of a business plan's financial plan is the cash budget, which shows______.

U-form

Which form of organizational design shares the basic advantages and disadvantages of functional departmentalization?

Niche

While there are many businesses in the general area that offer lawn mower repair, they all require that the customer bring the equipment to the store. Diane realized that this is difficult for many consumers, and she started a business in which her service techs bring the repair shop to the customer. Diane is capitalizing on a(n)______.