MGMT Exam 1 Questions

A group of 21 Pacific Rim countries whose purpose is to improve economic and political ties is known as the ________.

Asia-Pacific Economic Cooperation

Greg is using a ________ perspective when he sets up a system with inputs, outputs, transformation processes, and feedback and then utilizes a management style that varies according to the individual and environmental situation, with a strategy for minimizing errors by managing each stage of production.

Contemporary

When a manager assesses a particular situation and decides what to do according to the individual and environmental situation, the manager is utilizing the ________ viewpoint.

Contingency Theory

Because business was slow at her Grove Tailgate Setup company, Lauren decided to drop the price of setup. This price decrease resulted in a large increase in setup orders. The increase in orders is a type of ________.

Feedback

Pepper is an executive at a large technology company. She recently attended a training conference sponsored by several top professionals in her field, where she learned numerous ways to ensure that her company can better serve its governmental customers. Pepper is excited that the company owners asked her to present this information to them so the company can make needed improvements. Pepper's company is a(n) ________ organization.

Learning

The classical viewpoint of management emphasized ways to ________.

Manage work more efficiently

The corporate director of Domino's uses mathematical tools to aid in product ordering and scheduling decisions; this is an example of ________.

Management science

Who are our customers? What are our major products or services? In what geographic areas do we compete? These are all questions that are answered in a good ________.

Mission Statement

To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals, compared to keeping those stores open and benefiting fewer people. This logic is an example of the ________ approach.

Utilitarian

Joe, owner of ABC Electronics, just discovered that his trusted friend Paul, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Joe must decide whether to publicly ignore his friend's actions and avoid bad publicity for the firm, an example of ________.

an ethical dilemma

Ethnocentric managers believe that their native country, culture, language, and behavior ________.

are superior to all others

I think that my inventory turnover ratios are good, but I'm uncertain so I compare them to the inventory turnover ratio of the high-performing competitors in my industry. This is known as ________.

benchmarking

An organization's internal stakeholders consist of ________.

board of directors, employees, owners

Sal, a production manager, knows that some of his employees are upset with the new corporate policy, and as a result, are participating in soldiering. To eliminate soldiering Sal can ________.

carefully select workers according to their abilities and give workers training

In order to ensure that his employees knew how to treat customers, suppliers, competitors, and other stakeholders Mr. Quill wrote about his expectations in a set of standards called a(n) ________.

code of ethics

George, a chef and owner of a popular restaurant, is always visiting his competition to observe how they are doing things in their restaurants. He told one of his managers that "I do this because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item like us, but better." George is utilizing ________.

competitive advantage

Three brothers, Larry, Darryl, and Darrell who own Bottletop Bakery, are concerned because Panera Bread is opening a new store just one mile from their shop. They know that Panera will be offering similar products; therefore, Panera Bread will be a ________ to Bottletop Bakery.

competitor

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they market, current events, and markets such as housing. All of these independent factors often behave as a single unit based on events and economic news, and respond to the environment and affect the stock market. This is an example of ________.

complexity theory

According to the findings of the GLOBE project, the assertiveness dimension represents the extent to which a society values ________.

confrontation & competitiveness

Dallas, the president of a successful family-owned company, wants to give back to the people of the community. To do this, she consistently donates a significant portion of company profit to local charities, sponsors little league teams, and ensures that the company is acting like a good citizen. What Dallas's company is doing is an example of ________.

corporate social responsibility

Closets, Closets, Closets, Closets, Incorporated sells shelving to building contractors at prices that are below those of Home Depot and Lowes, who offer a larger line of products and focus on broader markets. Closets, Closets, Closets, Closets, Incorporated is pursuing a ________ strategy.

cost-focus

Artemis, from Mississippi, arrived in Saudia Arabia and immediately noticed that the way Saudi men treat women is vastly different than how men in the U.S. treat women. Artemis was feeling uncomfortable because she was experiencing ________.

culture shock

Management science stresses the use of rational, science-based techniques and mathematical models to improve ________.

decision making and strategic planning

As a store manager, Liandra has to play the role of negotiator, such as purchasing products at a fair price for her company. As she handles this responsibility, Liandra is playing the ________ role.

decisional

Over his entire life, Sally grew her company to six clothing stores. As she approaches retirement in the face of increased competition, she decided to reduce the number of stores to two in order to reduce the amount of effort she has to spend. Sally's reduction of effort represents a ________.

defensive strategy

A pay structure, in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a(n) ________ system.

differential rate

A construction company offers not only construction services but also home repair, snow removal, and other household services in order to limit their risk exposure. This business is utilizing a ________ strategy.

diversification

The macroenvironment includes these forces: ________.

economic, technological, sociocultural, demographic, political-legal, international

Bill runs an manufacturing plant and he decides to implement a quality control program that increases customer satisfaction, which results in higher sales. Bill is an example of a(n) ________ manager.

effective

Management is defined as the pursuit of organizational goals ________.

efficiently and effectively

In the hope that he can discover possible opportunities for new products or threats from competitors, Anakin keeps a close eye on his company's internal and external environment. This is an example of ________.

environmental scanning

In order, the steps of the strategic-management process are ________.

establish the mission and vision; assess the current reality; formulate the grand strategy; implement the strategy; maintain strategic control

The beliefs that there are few really new ideas and that true is better than new are two of the foundational principles of ________.

evidence-based management

Alice's Pasta Kitchen makes quality pasta and sells its products to customers in other countries. This is an example of ________.

exporting

To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ________.

external stakeholders

Recent protests against World Bank operations involve complaints of supporting countries permitting sweatshop labor or that restrict religious freedom, and ________.

financing projects which could damage the ecosystem

As organizations strive to obtain a competitive advantage, taking care of the customer is the ________.

first law of business

Mark directly supervises union employee in the Toyota factory he works at. This makes him a(n) ________ level manager.

first-line

Donna is the vice president of finance. As a result, she has complete control over the finances of her company. Because of this, we consider her a ________ manager.

functional

A large production company has been utilizing the Hawthorne effect in its 12 international factories, and it has seen great success from implementing the Hawthorne principles that propose that ________.

giving more attention to employees increases worker productivity, if they think managers care about the

The multiplier effect states that a manager's influence on the organization ________.

has implications far beyond the results that can be achieved by one person acting alone

Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer's best long-term interests, is reflected by the ________ approach to deciding ethical dilemmas.

individual

Small manufacturers could allow waste to runoff into a stream that feeds a local lake because it benefits them in the short term. Instead, they follow good disposal practices to avoid harming others in the long run, because it is in their best long-term interests to have good relationships with the community. This reflects the ________ approach to deciding ethical dilemmas.

individual

Despite having her bakery destroyed in a flood, Leeloo believed that she was in control of her own destiny and made a decision to rebuild the company. Leeloo is an individual with a(n) ________.

internal locus of control

When a country's laws forbid foreigners from ownership within their nation, American companies can use a(n) ________ to have a presence there.

joint venture

I'm trying to decide whether I would like to start a company to enter the garbage disposal industry. Sales indicate that while the garbage disposal market is large, it is also growing by 8% annually, which is great. It would take $100M of capital investment to create a garbage disposal facility. That is a lot of money for pretty much anyone, but I have access to that amount. In fact, it is such a large amount, I would say that few other people could afford to enter the industry. One challenge though is that there is only a single company that makes garbage trucks. In addition, because everyone needs their garbage taken away, there are plenty of customers. However, there are few other garbage companies nation-wide and there is little price competition. Conduct a five forces analysis. I. Threat of New Entry II. Supplier Power III. Intensity of Rivalry IV. Customer Power

just II

At times, customers have an unexpected need and require certain departments, such as production, to change their schedule to meet the demands of the sales department. When Susan, the vice president of marketing, is involved in resolving this conflict, this is an essential part of which management function?

leading

Don works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through planning, organizing, leading, and controlling company resources. Don is ________.

managing

Two of the primary challenges facing managers today are ________.

managing the effects of globalization and information technology

Free trade is the ________.

movement of products between countries without political or economic obstruction

Corporate governance is the system ________.

of governing a company so that the interests of corporate owners and other stakeholders are protected

Globalization is the trend ________.

of the world economy toward becoming a more interdependent system

Boeing, a company that builds airplanes, typically buys some parts for its jets from other companies with specialized production facilities. This practice is known as ________.

outsourcing

Sabine, a successful banker and educator, has decided to retire, but she is very interested in staying involved with her company because "it cares." So when asked to be on its board of directors, she gladly accepted the invitation. As a member of the board, Sabine will be involved with the organization's ________.

overall strategic goals and approval of major decisions

Functional managers from the Flextronics plant in Hungary contact corporate HR in the US with complaints about their plant manager, Marcia, who is originally from New York. They complain that "Marcia only sees things as a New Yorker and doesn't consider the perspectives of others." Marcia's management style can be described as ________.

parochialism

Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach ________.

provides clues to the meaning of your managers' decisions

Those who study management will understand how to ________.

relate to their managers and deal with organizations from the outside

Local communities are stakeholders of organizations because communities ________.

rely on the tax base from companies, and their employee payrolls, to thrive

Mateo, an IT manager, has been studying the work methods of each task to increase the productivity of the employees in his department. Mateo is utilizing ________.

scientific management

The rarest and most precious resource in business according to Fortune magazine is ________.

skilled & effective managers

Don, the owner of a fishing business, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ________ performance.

social, environmental, financial

Americans driving less and young people having less interest in cars are examples of trends in society known as ________ forces.

sociocultural

Ethics are ________.

standards of right & wrong that influence behavior

To provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage are reasons why an organization should adopt ________.

strategic management & strategic planning

When building a new residential development or mall, a national real estate organization typically does not remove many trees, basing its decision on the belief that natural resources are limited and the company must not compromise the ability of future generations to meet its own needs. This philosophy is known as ________.

sustainability

The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. This is an example of a(n) ________.

system

One way to think of management is ________.

the art of getting things done through people

A nation's culture is ________.

the shared set of beliefs, values, knowledge, and patterns of behavior common to its people

Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment; these forces are ________.

threats of new entrants and substitute products or services, bargaining power of suppliers and buyers, and competitive rivalries

Ben and his family have developed a successful business selling rich, organic compost material to farmers in his area to help them grow healthy strong plants. Recently Seeds R' Us, a national seed company, has been marketing a chemical fertilizer to his customers that is less expensive than Tom's product that has similar results. Seeds R' Us' efforts are an example of ________ in Porter's model for industry analysis.

threats of substitute products or services

The United States uses government regulations, such as tariffs, embargoes, and import quotas, to limit the import of goods and services and protect their U.S. industries against foreign competition. This use of these regulations is known as ________.

trade protectionism

Is it appropriate for the organization and for the times? Does it set standards of excellence and reflect high ideals? Is it ambitious? These are all questions that are answered in a good ________.

vision statement

Edward told a friend, "I'm tired of my company ignoring the environment. They keep dumping hazardous waste into the groundwater. I just hate that they're getting away with it so I'm called the EPA to report them." in this situation, Edward 's decision to expose company action makes him a(n) ________.

whistle-blower

Andre creates a firm in Japan that is totally owned and controlled by his company. Although starting this firm costs a lot, there is a potential for high levels of profitability as a result. This type of organization is an example of a ________.

wholly-owned subsidiary

The law that makes it illegal for employees of U.S. companies to make "questionable" or "dubious" contributions to political decision makers in foreign nations is the ________.

Foreign Corrupt Practices Act