Management Final
The management process starts with identifying a problem, then proceeds to decision making, usually to leading, and finally to
auditing or examining the results of the process
While social justice has many meanings, for this course we emphasize that social justice means
equal opportunity and procedural justice, not equal outcomes
In "When Ideas Have Sex," Ridley notes that the world got better from the human habit of
exchange and specialization which had led to an extraordinary rise in living standards
David Green claimed that "the ________________________, where I know how much it costs me to make something but I'm going to fool you, the consumer, into paying as much as possible."
market economy is based on a fundamental deception
The goal of capitalism is to maximize individual well-being and happiness without violating the rights of others, by
maximizing individual freedom and responsibility
The original use of ___________ referred to the protection and maintenance of the natural, non-human environment.
sustainability
Long-term wealth creation is dependent upon the firm creating a _______________that allows the firm to continue to create, satisfy and maintain loyal customers.
sustainable comparative advantage
Prosocial and altruistic efforts to reduce income inequality include
taxation, charity, pensions, public education and healthcare
We have a lot of similarities all over the world, and the images we see in the media, they show us the world is a very, very strange place. But when we look at___________, they do not look like that.
the Dollar Street images
Advantage describes the need for a firm to be more than competitive. Comparative refers to how the firm stands up to competition. Sustainable (in SCA) means that
the comparative advantage needs to be viable in the long-term
From human, business and environmental sustainability, we have evolved to the concept of sustainable development, where we seek a balance among
the economy, the environment and equitable distribution of benefits
In his talk, Matt Ridley notes the inescapable conclusion is that
the human uses of fossil fuels has been causing the greening of the planet
"What we do can come under the rubric of compassionate capitalism. In other words, we try to figure out_______________________. Profit is a means to an end rather than as an end to itself."
the least amount of money we can sell a product or service for and still survive
The second big lesson that we learned is that it's not just the number of friends you have, and it's not whether or not you're in a committed relationship, but it's
the quality of your close relationships that matters.
Wealth creation has driven significant improvements in human development, ____________________ these last two hundred years.
the quantity and quality of life, life expectancy and social progress
Organizational behavior is______________, or micro and macro organizational behavior, respectively
the study of behavior in and of organizations
Many American politicians, economists, and religious leaders are concerned about
the wealth gap - wealth inequality and the growth in the gap
According to Matt Ridley, humans are the only species
to become more prosperous as we become more populous
According to the Good Country talk, when we elect governments or tolerate unelected governments, we're telling them that what we want is for them to deliver us in our country a certain number of things. We want them
to deliver prosperity, growth, competitiveness, transparency and justice
In linking carbon emissions with tariffs, the goal is to encourage sustainable local production, to reduce externalized costs of carbon emissions, to fund reductions in social insurance taxes, and
to provide benefits for those adversely affected by carbon emissions
In her TED talk, Ms. Torres: said, "And one of the leaders shared with me the fact that the most impactful development comes when you are able to build the emotional stamina
to withstand people telling you your new idea is naive, reckless or stupid"
One obvious implication of modern economic history is that it's quite hard to
transition to democracy before you've established secure private property rights
One of the most exciting scientific findings of the past half-century has been the discovery of ____________, an ecological process which starts at the top of the food chain and tumbles all the way down to the bottom.
trophic cascade
Social entrepreneurs seek broad value-added for
undeseverd customers, viewing profit as a cost of doing business
Census data showed three behaviors that characterize American adults who are not in poverty.
They finished high school, worked for one year, and married and stayed married
Which of the following behaviors were among those highlighted in the Results exercise?
Two of the above are correct
Which of the following are two of the seven key leader behaviors?
Use positive reinforcement. Use a constructive form of punishment
In his TED talk on leadership and management, Simon Sinek asked:
What's your purpose? What's your cause? What's your belief?
In the Project exercise, a lesson from personal scores suggested that
lower personal scores indicated higher management intuition
In his TED talk to demonstrate progress in the world, the late Hans Rosling asked the audience:
"How many of you hand-wash your jeans and your bed sheets?"
A century ago, the richest countries devoted _____ of their wealth to children, the poor, the sick and the aged; today they spend almost ______.
1%; 25%
There has been strong convergence in world incomes over the entire post-World War II period. Developing countries' share of the world's middle class has risen from _____ in 1960 to ______.
20 percent; 70 percent in 2000
Since 1910, the average number of hours worked annually in America has dropped from about
2800 hours to 1600 in 2010
Through most of human history, continuing into the 19th century, a newborn was expected to live about __________. In the two centuries since, life expectancy across the world has risen to _____, and in the developed world that life expectancy is 81.
30 years; 71
Two hundred years ago, about ______ of the world's one billion people were poor. Today, the number of people who are poor remains almost unchanged while there are ________ people who are not poor.
94%; six billion
Which of the following are all among the seven key leader behaviors?
Articulate and enact a vision. Establish clear goals. Develop self-efficacy
Prior to the practice of capitalism, wealth was not created and not widely shared. There was little economic growth.
Capitalism is about creating wealth
Greed is not peculiar to capitalism.
Capitalism means creation, not accumulation
25. Aquinas wrote, "Envy according to the aspect of its object is contrary to charity, whence the soul derives its spiritual life. _____________________________________."
Charity rejoices in our neighbor's good, while encyclopedias grieves over it.
Cotton trading is not capitalism; it is not even a good metaphor for capitalism.
Cotton trading does not create wealth; it is primarily speculation
"Prosperous societies can invest in allowing each individual to develop the virtues and values, character and competences which make them authors of their own life stories." The eight prosperity sub-indices are Economy, Entrepreneurship and Opportunity, Governance,
Education, Health, Safety and Security, Personal Freedom and Social Capital.
Which is NOT one of the rights specified by David Landes?
Enforce rights to education and health care
__________________ describes the process of protecting and preserving natural resources, with a focus on the economic and social costs of environmental degradation.
Environmental sustainability
Which of the following behaviors were also among those highlighted in the Results exercise?
Establish and maintain a clear and meaningful vision and mission
What is the first step in the Project exercise?
Gather and analyze the facts of the current situation
Matt Ridley claimed, "_____________ is proving to be expensive and damaging to the environment as well as the economy."
Global warming is slow and mild and renewable energy
Which of the following is not one of Ferguson's "killer apps"?
Harnessing fossil fuels
___________________________ create a context for management and leadership.
History, culture and technology
In the United States you look at the guy that lives in the mansion on the hill, and you think, you know, one day, if I work really hard, I could live in that mansion. In Ireland, people look up at the mansion on the hill and say, one day,
I'm going to get that bastard
Landes notes a single characteristic separates American culture from other wealth-developing countries: _________________________. This characteristic positively impacts the entrepreneurial activity, self-reliance, personal responsibility and initiative needed for wealth creation.
Individualism
Which of the following characteristics of first industrial revolution does not fit?
Industrial
________________ a by-product of a positive ethic of wealth creation for customers and the firm. a. Cleaner air and water are
Maximizing shareholder wealth is
Which of the following is not one of Ferguson's "killer apps"?
Modern transport
For most of history wealth was rarely created; it was most often stolen or otherwise expropriated.
Much of the natural environment was a fixed, limited resource
In his talk on health and inequality, Wilkinson asked, "What about causality? Correlation in itself doesn't prove causality." He concluded,
People know the causal links quite well in some of these outcomes
___________________ has been used to refer to achieving a balance between environmental sustainability and the improvement of human (quality of) life, prosperity, progress and well-being.
Sustainable development
The Social Progress Index asked this/these questions: Does everyone have the
Three are correct
Assessing an economy by using GDP instead of wealth as the key measure is like looking exclusively at
a company's income statements without considering assets on it balance sheet
Winston Churchill said, "Socialism is ______________________, and the gospel of envy, its inherent virtue is the equal sharing of misery."
a philosophy of failure, the creed of ignorance
The greatest shift in wealth in America in the past fifty years has been
a shift of poverty from the retired elderly to the young working college graduate
When pursuing the management goal of creating ___________________, firms need to innovate their products and processes to achieve and keep a long-term competitive advantage in the market, offering customers an enduring value proposition.
a sustainable comparative advantage
Ethical sustainability refers to the responsibility to
be productive, contribute to public well-being and leave the world a better place
Capitalism destroyed
class structure and toppled social barriers
Thomas Friedman claimed that trade, brands and markets have become global, creating a flat playing field where
comparative advantages based on geography and distance have dissipated
The professor's goals for students in this course are (1) to help students learn how to leave the world a better place than you found it and (2) to
correct false or outdated notions
Economic sustainability requires efficient use of resources,
cost-benefit analysis and private ownership of common resources
To operate effectively requires ______________________, which requires an informed, unbiased examination of rhetoric, of claims without data, of assertions without evidence, of narrow, one-sided arguments, or conventional wisdom.
critical thinking based on knowledge
Management refers to values. Key management values are the creation of wealth,
customers and a sustainable development advantage
In terms of financial wealth, the best strategy for accumulating wealth is to
defer, postpone or reduce consumption
Focus first on _________________ rather than to start by assuming businesses will do bad things.
doing good (positive ethics)
Social justice is more than charity, altruism, or wealth re-distribution. Social justice is more about
equal opportunity and equal treatment, not so much about equal outcomes
A critical lesson is to appreciate the historical transition of our understanding of wealth ______.
from the narrow, tangible image of wealth to a broad concept, able to be created
And the third big lesson that we learned about relationships and our health is that
good relationships don't just protect out bodies, they protect our brains
Hamilton and Hepburn defined six sub-components of wealth, including:
human and natural capital, plus intellectual property
History shows that 'Mother Nature' can be an incredibly destructive force and that
human progress conceded with human mastery and stewardship of natural resources
The progression from global poverty to prosperity has been marked by increases in the creation of multiple forms of wealth, tremendous reductions in absolute poverty, and
increases in income and wealth inequality
Relative poverty is not a measurement of poverty. Instead, it measures ___________.
inequality
Leadership is about
influencing people's behavior
Wealth can be defined as a combination of natural resources, produced goods and services, and
intangible assets
Contrast family size and life expectancy at birth in countries around the world and we see that the old story of
large families, short lives has evolved to smaller families and higher life expectancies
The Human Development Index (HDI) is a composite statistic of
life expectancy, education and per-capita GDP
Contrast the claim from the American Declaration of Independence - ____________ - with the comparable French motto - liberte, egalite, fraternite.
life, liberty and the pursuit of happiness
New York mayor DiBlasio said, "I think there's a socialistic impulse, which I hear every day, in every kind of community, that they would _________________________."
like things to be planned in accordance to their needs
"We don't actually count benefits in kind or aid through the tax system in our definition of poverty. The upshot of this is that in the old days the poverty line was really measuring the ________________."
number of people who were poor after the things we did to reduce poverty
Poverty is at the root of many of our social and cultural problems, including race, health, education, and perhaps most of all -
opportunity
Equality or social justice can be best expressed in terms of
opportunity, process, and outcomes
John Locke said that freedom was rooted in ________________________. That's the basis for the Western model of representative government.
private property rights and the protection of law
Wealth-creating societies had to ___________________ and create sustainable strategies (entrepreneurship, innovation, educate and education).
produce and incentivize value creation (production and retention)
The seven Good Country indices measure the global contribution of each assessed country to science and technology, culture, international peace and security, world order,
prosperity and equality and health and well-being
Business creates wealth. Government ________________to allow people and markets to thrive
provides peace and security, education and the rule of law
While health outcomes inequalities are a form of injustice, it is not clear that these differences are caused by income inequalities,
reducing economic inequality man not reduce health outcomes
The top-scoring social progress countries are predominantly Anglo-European. This pattern reflects the construction of the index, using values that
reflect western beliefs, norms, values and culture
The __________ provides people with the confidence and security to work, trade, and borrow; it reduces risk, uncertainty and the level of indiscriminate injustice. ___________ allows a society to grow, improve and innovate.
rule of law; education
In the universal basic income TED talk, farmers scored much worse on an IQ test before the harvest. The speaker summed up the cause in two words:
scarcity mentality
Greed exists in any economic system. People often sought to hoard wealth through politics, corruption and violence. With capitalism,
self-interest creates value and wealth.
With its focus on wealth distribution rather than creation,
socialism is a zero-sum economic growth model
Per Margaret Thatcher, "The problem with socialism is that
sooner or later you run out of other people's money."
Business is a process, the combination of
various forms of capital to create value by service customers
Business students need to appreciate the concept of wealth, the importance of wealth, and the misunderstanding of
wealth accumulation as a primary goal
Absolute poverty is a condition that occurs _______________________________.
when a person's or a household's income falls below a specific threshold level of income