MGMT test 2
All of the following are Porter's competitive forces except: a. differentiation. b. bargaining power of buyers. c. bargaining power of suppliers. d. threat of substitute products. e. potential new entrants.
a
hen Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a _____. a. corporate-level strategy b. business-level strategy c. functional-level strategy d. multidomestic strategy e. retrenchment strategy
a
Personal _____ style refers to differences among people with respect to how they perceives problems and make decisions. a. risk taking b. behavior c. decision d. strategic e. analysis
c
Once the desired alternative is developed, it should be _____. a. analyzed b. evaluated c. selected d. recognized e. identified
c
Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____. a. external opportunity b. internal strength c. external threat d. external weakness e. congressional chaos
c
Some people argue that _____ is the most difficult and most important part of strategic management. a. SWOT analysis b. strategic formation c. strategic execution d. strategic analysis e. strategy evaluation
c
According to the administrative model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints. a. True b. False
t
For successful execution, alignment of everyone in the organization must occur. a. True b. False
t
Groupthink refers to the tendency of people in groups to suppress contrary opinions. a. True b. False
t
Justifying past decisions is a common bias of managers. a. True b. False
t
Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff. a. True b. False
t
Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. a. True b. False
t
Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends. a. True b. False
t
Which approach defines how a decision-maker should make decisions? a. Normative b. Scientific c. Descriptive d. Reflective e. Humanistic
a
Which of the following is a choice made from available alternatives? a. Decision b. Plan c. Goal d. Tactic e. Strategy
a
The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.
f
The growth of quantitative decision techniques that use computers has reduced the use of the classical approach. a. True b. False
f
The most effective managers are consistent in using their own decision style rather than shifting among styles. a. True b. False
f
The transnational strategy handles markets independently for each country. a. True b. False
f
Two employees in Stacey's department quit which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision. a. True b. False
f
With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and production approaches. a. True b. False
f
Managers must understand no plan is perfect, but should grow and change to meet new conditions. a. True b. False
t
Prevention and preparation are the two stages of crisis management. a. True b. False
t
The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level. a. True b. False
t
The process of forming alliances among managers is called coalition building. a. True b. False
t
The question mark exists in a new, rapidly growing industry but has only a small market share, according to the BCG Matrix. a. True b. False
t
The growth of quantitative decision techniques that use computers has expanded the use of which decision-making approach? a. Administrative b. Classical c. Intuitive d. Political e. Bureaucratic
b
The planning process begins with which of these? a. The development of operational goals b. The development of a mission statement c. Communication of goals to the rest of the organization d. A company-wide meeting e. Brainstorming
b
Which of the following is NOT one of the tools used for putting strategy into action? a. Visible leadership b. Diversification c. Human Resources d. Communication e. Clear roles and accountability
b
Which of the following refers to the willingness to undertake risk with the opportunity to increase one's return? a. Tunnel vision b. Risk propensity c. Risk averse d. Thrill seeking e. Ineffective investment philosophy
b
Associated with the condition of _____ is the lowest possibility of failure. a. ambiguity b. uncertainty c. certainty d. risk e. all of these
c
The classical model of decision making is based on _____ assumptions. a. philosophical b. irrational c. economic d. uncertainty e. technological
c
_____ is by far the most difficult situation for a decision-maker. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming
d
_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries. a. Domestic strategy b. Global strategy c. Transnational strategy d. Multidomestic strategy e. Market design strategy
d
ntuition is based on _____, but lacking in _____. a. conscious thought; practicality b. experience; applicability c. a solid analysis; applicability d. experience; conscious thought e. thought-process; guts
d
Managers work with planning experts to develop their own goals and plans in decentralized planning. a. True b. False
t
_____ refers to a broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations. a. Mission statement b. Goal statement c. Management by objective d. Goal setting e. Corporate competitive-value statement
a
_____ is the final step in the MBO process. a. Appraise overall performance b. Develop an action plan c. Review progress d. Set goals e. Conduct periodic checkups
a
_____ is the first step in the MBO process. a. Setting goals b. Developing action plans c. Appraising overall performance d. Reviewing progress e. None of these
a
_____ is the last step in the decision making process. a. Evaluation and feedback b. Development of alternatives c. Implementation of chosen alternative d. Selection of desired requirement e. Recognition of decision requirement
a
When a small community hospital decides to add a radiation therapy unit, it is considered a: a. programmed decision. b. structured decision. c. nonprogrammed decision. d. poor management decision. e. certainty decision.
c
The _____ is the department manager's tool for daily and weekly operations. a. conventional goal b. strategic goal c. strategic plan d. operational plan e. targeted plan
d
_____ is primarily responsible for operational goals/plans. a. Middle management b. Board of directors c. Consultants d. Top management e. Lower management
e
_____ level strategy pertains to the major functional departments within the business unit. a. Operational b. Corporate c. National d. Business e. Functional
e
Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them. a. True b. False
t
Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy. a. True b. False
t
The administration and implementation of the strategic plan is strategy execution. a. True b. False
t
The administrative model of decision making describes how managers actually make decisions in difficult situations. a. True b. False
t
The approach that managers use to make decisions usually falls into one of three types - the classical model, the administrative model, and the political model. a. True b. False
t
The dog, according to the BCG Matrix, is a poor performer. a. True b. False
t
The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy. a. True b. False
t
The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes. a. True b. False
t
Top managers and chief executives have the final responsibility for strategic planning. a. True b. False
t
Unrelated diversification occurs when an organization expands into a totally new line of business. a. True b. False
t
lanning is the act of determining the organization goals and the means for achieving them. a. True b. False
t
transnational strategy combines degrees of both global standardization and national responsiveness. a. True b. False
t
vertical integration means a firm expands into businesses that either produce the supplies needed to make products or that distribute and sell those products to customers. a. True b. False
t
. _____ specify future ends and _____ specify today's means. a. Goals; plans b. Plans; goals c. Planning; organizing d. Ideas; behaviors e. Mission; vision
a
Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals? a. Operational goals b. Tactical plans c. Strategic goals d. Mission statement e. Vision
a
The official goals of the organization are best represented by the _____. a. strategic goals b. tactical goals c. operational goals d. competitive goals e. none of these
a
The planning process starts with: a. a formal mission that defines the organization's purpose. b. tactical planning. c. strategic planning. d. operational planning. e. controlling performance.
a
We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's _____. a. mission b. strategic goals c. tactical goals d. strategic plans e. tactical plans
a
Which of the following refer to specific results expected from individuals? a. Operational goals b. Tactical goals c. Strategic goals d. Operational plans e. Mission statements
a
Which of these is(are) primarily concerned with tactical goals/plans? a. Middle management b. Board of directors c. Consultants d. Senior management e. Lower management
a
A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n) _____. a. goal b. plan c. mission d. vision e. objective
b
All of the following are characteristics of effective goal setting except: a. goals should be challenging but not unreasonably difficult. b. goals should be set for every aspect of employee behavior. c. specific and measurable. d. cover key results area. e. linked to rewards.
b
Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called: a. strategic goals. b. tactical goals. c. operational goals. d. a mission. e. a plan.
b
No food and/or drinks in the classroom" is an example of a _____. a. procedure b. rule c. policy d. single-use plan e. project
b
One major limitation of goals and plans is: a. goals and plans guide resource allocation. b. goals and plans may cause rigidity in a turbulent environment. c. goals and plans decrease employee motivation. d. goals and plans decrease employee commitment. e. none of the above.
b
Sarah is a middle manager at Style Sneakers Corporation. She is most likely responsible for the achievement of _____ goals. a. operational b. tactical c. strategic d. lower-level e. top-level
b
Standing plans: a. are developed to achieve a set of goals that are unlikely to be repeated in the future. b. are used to provide guidance for tasks performed repeatedly within the organization. c. define company responses to specific situations, such as emergencies or setbacks. d. are the most important in the organizations. e. are none of these.
b
A long-term time frame is most closely associated with: a. operational plans. b. tactical plans. c. strategic plans. d. mission plans. e. tactical goals.
c
Contingency plans are also referred to as: a. standing plans. b. rules. c. scenarios. d. procedures. e. operationally tactical plans.
c
_____ are the broad statements of where the organization wants to be in the future. a. Operational goals b. Tactical goals c. Strategic goals d. Operational goals e. Tactical plans
c
_____ is the act of determining the organization's goals and the means for achieving them. a. Brainstorming b. Organizing c. Planning d. Developing a mission e. A blueprint
c
_____ refers to a desired future state that an organization attempts to realize. a. Plan b. Vision statement c. Goal d. Mission statement e. Idea
c
. _____ goals lead to the attainment of _____ goals, which in turn lead to the attainment of _____ goals. a. Operational; strategic; tactical b. Tactical; operational; strategic c. Strategic; tactical; operational d. Operational; tactical; strategic e. None of these.
d
A project is an example of a: a. policy. b. standing plan. c. procedure. d. single-use plan. e. rule.
d
A statement that identifies distinguishing characteristics of an organization is known as a(n): a. goals statement. b. values statement. c. income statement. d. mission statement. e. competitive-edge statement.
d
At the top of the goal hierarchy is: a. strategic goals. b. tactical goals. c. operational goals. d. a mission. e. employee goals.
d
Of the strategic management functions, which is considered the most fundamental? a. Executing b. Analyzing c. Controlling d. Planning e. Leading
d
The ultimate impact of goals depended on the extent to which goal achievement is linked to: a. rewards. b. salary increases. c. promotions. d. all of these. e. salary increases and promotions.
d
Which of these are described by mission statements? a. Corporate values b. Product quality c. Location of facilities d. All of these e. None of these
d
A(n) _____ is a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue. a. espionage team b. functional team c. task force d. project team e. intelligence team
e
The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a crisis occurs. a. vague, verbal plan b. detailed, verbal plan c. long, difficult to read plan d. vague, written plan e. detailed, written plan
e
_____ are called the action steps by which an organization intends to attain its strategic goals. a. Tactical goals b. Operational goals c. Tactical plans d. Operational plans e. Strategic plans
e
A desired future state that the individual or organization attempts to realize is a goal. a. True b. False
f
A plan tells "why" to achieve the goal. a. True b. False
f
Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. a. True b. False
f
Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map. a. True b. False
f
Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks. a. True b. False
f
Step 1 in Management by Objectives is to review progress. a. True b. False
f
Strategic thinking is more important in for-profit businesses than for non-profit organizations. a. True b. False
f
Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals. a. True b. False
f
Tactical goals and plans are the responsibility of front-line managers and supervisors. a. True b. False
f
The "How do we compete?" question concerns functional-level strategy. a. True b. False
f
The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level. a. True b. False
f
Top managers make the broad strategic plan and identify specific tactical plans. a. True b. False
f
Trend management is looking at trends and discontinuities and imagining possible alternative futures. a. True b. False
f
A desired future state that the individual or organization attempts to realize is a goal. a. True b. False
t
Building good relationships with suppliers and partners would be considered internal business process goals. a. True b. False
t
Corporate-level strategy pertains to the organization as a whole. a. True b. False
t
Goals and plans provide a sense of direction and focus on specific targets and direct employee efforts toward important outcomes. a. True b. False
t
Goals are typically stated in quantitative terms. a. True b. False
t
Management by objectives, single-use plans, and standing plans are all management planning approaches. a. True b. False
t
Front-line managers have the final responsibility for strategic planning. a. True b. False
f
Goals must be set for every aspect of employee behavior or organizational performance to be effective. a. True b. False
f
In step 1 of Management By Objectives, overall performance is appraised. a. True b. False
f
Making a choice is the most significant part of the decision-making process. a. True b. False
f
Managers will frequently look for new information that contradicts thier instincts or original point of view.. a. True b. False
f
Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood require only one step. a. True b. False
f
One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility. a. True b. False
f
Opportunities are characteristics of the internal environment that have the potential to help the organization achieve or exceed its strategic goals. a. True b. False
f
Strategic partnerships are the current trend, rather than mergers and acquisitions. a. True b. False
t
Planning cannot tame a turbulent environment. a. True b. False
t
A corporate-level strategy is concerned with the question: a. what business are we in? b. how do we compete? c. how do we support our chosen strategy? d. where do we market our products? e. should we promote from within?
a
Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of: a. a programmed decision. b. a nonprogrammed decision. c. an insignificant decision. d. poor management. e. personal grudge.
a
Good examples of _____ decisions are strategic decisions. a. nonprogrammed b. programmed c. insignificant d. recurring e. structured
a
If your instructor has an attendance policy, she/he is using a(n): a. programmed decision. b. unique approach. c. condition of ambiguity. d. nonprogrammed decision. e. none of these.
a
Managers are often referred to as: a. decision makers. b. peace makers. c. conflict creators. d. an unnecessary layer of employees. e. profit suppressor.
a
Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____ strategy. a. focus b. differentiation c. cost leadership d. multidomestic e. universal strategy
a
Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy? a. Leadership b. Structural design c. Human resources d. Information and control systems e. Compensation
a
Sears' decision to sell off much of its financial services division is an example of a: a. corporate-level strategy. b. business-level strategy. c. functional-level strategy. d. growth strategy. e. stability strategy.
a
The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors. a. cost leadership b. differentiation c. focus d. internal growth e. liquidation
a
The assumption that a single global market exists would lead to a: a. globalization strategy. b. multidomestic strategy. c. diversity strategy. d. domestic strategy. e. liquidation strategy.
a
The condition under which ambiguity occurs is when: a. alternatives are difficult to define. b. objectives are well defined. c. information about outcomes is readily available. d. all the alternatives are known. e. decisions are already made.
a
The four positions on the possibility of failure scale include certainty, risk, ambiguity, and _____. a. uncertainty b. conflict c. necessity d. indecision e. possibility
a
The star has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market. e. moderate market share in a slow growth industry.
a
To remain competitive, companies should develop strategies that focus on core competencies, providing synergy, and creating value for _____. a. customers b. suppliers c. stockholders d. employees e. board members
a
When did it occur" and "how did it occur" are questions associated with which step of the decision making process? a. Diagnosis and analysis of causes b. Recognition of decision requirement c. Development of alternatives d. Selection of desired alternative e. None of these
a
When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line. a. synergy b. competitors c. government contacts d. command structure e. cooperation among customers
a
Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making? a. Brainstorming b. Groupthink c. Point-counterpoint d. Brainwriting e. Devil's advocate
a
Which of the following is a decision-making technique in which people are assigned to express competing points of view? a. Point-counterpoint b. Devil's advocate c. Debate d. Groupthink e. Brainwriting
a
Which of the following means that all the information the decision-maker needs is fully available? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. None of these
a
Which of the following refers to the planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan? a. Strategy formulation b. Strategy implementation c. Strategy coordination d. Strategy control e. SWOT
a
Which of these is lacking in the goal "profits should be increased in the coming year?" a. Specific and measurable b. Challenging but realistic c. Covers key result areas d. Defined time period e. None of these
a
Which of these styles is adopted by managers who have a deep concern for others as individuals? a. Behavioral b. Classical c. Analytic d. Logical e. Conceptual
a
. Examples of nonprogrammed decisions would include the decision to: a. reorder supplies. b. develop a new product or service. c. perform routine maintenance on one of the machines in manufacturing. d. terminate an employee for violation of company rules. e. fill a position.
b
All of these are basic assumptions of the political model except: a. organizations are made up of groups with diverse interests, goals, and values. b. information is clear and complete. c. managers do not have the time, resources, or mental capacity to identify all dimensions of the problem. d. managers engage in the push and pull of debate to decide goals and discuss alternatives. e. all of these are basic assumptions of the political model.
b
Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as: a. a dog. b. a star. c. a question mark. d. a cash cow. e. stuck in the middle.
b
For a programmed decision: a. alternatives are usually difficult to identify. b. alternatives are usually easy to identify. c. there are usually few alternatives. d. there are usually few alternatives and they are difficult to identify. e. there are no alternatives.
b
Ford's decision to completely redesign its Ford Taurus can be classified as a: a. corporate level strategy. b. business level strategy. c. functional level strategy. d. retrenchment strategy. e. stability strategy.
b
Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will: a. conduct an external wage survey. b. search for the strengths, weaknesses, opportunities, and threats that impact his firm. c. choose a grand strategy for his firm. d. do a cost/benefit analysis. e. develop a mission.
b
Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as _____. a. dogs b. question marks c. stars d. cash cows e. none of these
b
How business units and product lines fit together in a logical way is the essence of: a. business-level strategy. b. portfolio strategy. c. competitive strategy. d. financial strategy. e. functional strategy.
b
In developing a strategy map for her interior design business, Carla has decided to promote employee development by providing online training tools. This involves goals in which strategy map category? a. Financial performance goals b. Learning and growth goals c. Internal business process goals d. Customer service goals e. Supply chain goals
b
Managers use _____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively. a. strategic goals b. operational goals c. growth goals d. financial results e. internal business process goals
b
Programmed decisions are made in response to _____ organizational problems. a. unusual b. recurring c. significant d. minor e. unique
b
The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as: a. satisficing. b. bounded rationality. c. classical model of decision making. d. normative approach. e. scientific approach.
b
The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as: a. core competence. b. synergy. c. value creation. d. business-level strategy. e. multidomestic strategy.
b
The purpose of _____ is to expand the firm's business operations to produce new kinds of valuable products and services? a. retrenchment b. diversification c. liquidation d. cash cow e. internal growth
b
The traditional approach to corporate planning was to: a. have a decentralized planning staff. b. have a centralized planning department. c. set up a planning task force. d. set up planning committees. e. use TQM approach.
b
Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a: a. programmed decision. b. nonprogrammed decision. c. decision rule. d. structured decision. e. bad community decision.
b
When an organization expands into a totally new line of business, it is implementing a strategy of: a. Related diversification b. Unrelated diversification c. Cross-functional diversification d. Product line diversification e. Industry diversification
b
When managers know which goals they wish to achieve, but information about alternatives and future events is incomplete, the condition of _____ exists. a. risk b. uncertainty c. ambiguity d. certainty e. problematic
b
Which model of decision making is associated with satisficing, bounded rationality, and uncertainty? a. Classical b. Administrative c. Quantitative d. Rational e. Political
b
Which of the following has the highest possibility of failure? a. The condition of certainty b. The condition of ambiguity c. The condition of uncertainty d. The condition of risk e. All of these
b
Which of the following is NOT a tool for executing a plan? a. Management by objectives b. Operations map c. Performance dashboards d. Single use plans e. Decentralized responsibility
b
Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming
b
Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry? a. Cost leadership b. Differentiation c. Focus d. Internal growth e. Liquidation
b
Which of these assumptions are included in the classical model of decision making? a. Problems are unstructured and ill defined. b. The decision-maker strives for conditions of certainty. c. Criteria for evaluating alternatives are unknown. d. The decision-maker selects the alternatives that will minimize the economic return to the organization. e. The situation is always uncertain.
b
Which of these is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance? a. Organizational planning b. Management by objectives c. Goal setting d. Mission development e. Vision development
b
_____ are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. a. Operational goals b. Stretch goals c. Strategic goals d. Tactical goals e. Bottom-up goals
b
_____ can be defined as the combination of benefits received and costs paid by the customer. a. Organizational benefits b. Value c. Cost-benefit diversity d. Synergy e. Core competence
b
_____ define boundaries within which to make a decision. a. Programs b. Policies c. Rules d. Procedures e. Projects
b
_____ is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation. a. Analysis b. Diagnosis c. Recognition d. Judgment e. Identification
b
_____ refers to the tendency of people in groups to suppress contrary opinions. a. Point-counterpoint b. Groupthink c. Devil's advocacy d. Escalating commitment e. Brainstorming
b
. "We seek to become the premier business school in the west" is an example of a statement you are most likely to find in the organization's _____. a. tactical goals b. operational goals c. mission d. tactical plans e. operational plans
c
. _____ decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, and unclear links among decision elements. a. Nonprogrammed b. Programmed c. Wicked d. Conventional e. Irrational
c
All of the following are cognitive biases that can affect manager's judgment except: a. being influenced by initial impressions. b. justifying past decisions. c. seeing what you don't want to see. d. perpetuating the status quo. e. overconfidence.
c
An example of a _____ is a statement supporting the organization's efforts in the area of sexual harassment. a. procedure b. rule c. policy d. single-use plan e. program
c
In using MBO, objectives should be set by the: a. supervisor. b. employee. c. supervisor and the employee jointly. d. accounting department. e. top management.
c
The BCG matrix organizes along which of the following dimensions? a. Market share and profit b. Sales and market share c. Business growth rate and market share d. Business growth rate and profit e. Sales and profits
c
The _____ is the individual who is assigned the role of challenging assumptions made by the group. a. group gadfly b. multiple advocate c. devil's advocate d. brainstormer e. inferior member
c
The _____ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity. a. normative b. classical c. administrative d. scientific management e. objective
c
The _____ model of decision making is most valuable when applied to _____. a. administrative; programmed decisions b. classical; nonprogrammed decisions c. classical; programmed decisions d. classical; ambiguous decisions e. administrative; structured decisions
c
The organization's reason for existence is known as the organization's _____. a. value b. vision c. mission d. goal e. service
c
The question mark has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market. e. moderate market share in a slow growth industry.
c
The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as: a. strategy formulation. b. strategic planning. c. strategic management. d. strategy implementation. e. strategy evaluation.
c
The two stages of crisis planning include: a. prevention and control. b. planning and leading. c. prevention and preparation. d. preparation and control. e. leading and organizing.
c
Under conditions of _____, statistical analyses are useful. a. certainty b. ambiguity c. risk d. uncertainty e. conflict
c
What type of organizational unit has a unique business mission, product line, competitors, and markets relative to other units in the same corporation? a. Product unit b. Functional unit c. Strategic business unit d. Operational unit e. Business consulting group unit
c
Where does the information about opportunities and threats comes from? a. An analysis of the organization's internal environment b. A department by department study of the organization c. Scanning the external environments d. Employee grievances e. Financial ratios of the organization
c
Which of the following is NOT one of Porter's competitive forces? a. Potential new entrants b. Bargaining power of suppliers c. Bargaining power of stockholders d. Bargaining power of customers e. Rivalry among competitors
c
Which of the following is a visual representation of the key drivers of an organization's success, showing the cause-and-effect relationships among goals and plans? a. Operational plan b. Gantt chart c. Strategy map d. SWOT analysis e. Strategic plan
c
Which of the following is the process of forming alliances among managers during the decision making process? a. Networking b. Socializing c. Coalition building d. Satisficing e. Passing the buck
c
Which of the following pertains to the organization as a whole? a. Business-level strategy b. Functional-level strategy c. Corporate-level strategy d. Operational-level strategy e. Competitive-level strategy
c
Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries? a. Domestic strategy b. Global strategy c. Transnational strategy d. Multidomestic strategy e. Region design strategy
c
Which of the following represent plans developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities? a. Tactical plans b. Strategic plans c. Operational plans d. Supervisory plans e. Organizational plans
c
Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low? a. Globalization b. Multidomestic c. Export d. Transnational e. Import
c
Which style is used by people who prefer simple, clear-cut solutions to problems? a. Behavioral b. Conceptual c. Directive d. Analytical e. Classical
c
Which type of plan helps managers implement the overall strategic plan? a. Operational b. Contingency c. Tactical d. Crisis e. Corporate-level
c
With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group. a. cost leadership b. differentiation c. focus d. internal growth e. liquidation
c
_____ decisions are associated with decision rules. a. Nonprogrammed b. Unique c. Programmed d. Ill-structured e. Novel
c
_____ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization. a. Administrative b. Descriptive c. Normative d. Bounded rationality e. None of these
c
_____ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Advocacy
c
_____ refers to the process of identifying problems and then resolving them. a. Organizing b. Controlling c. Decision-making d. Planning e. Leading
c
_____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals. a. Strategy formulation b. Strategy coordination c. Strategy execution d. Strategy control e. Strategy planning
c
he decision-maker must _____ once the problem has been recognized and analyzed. a. evaluate and provide feedback b. choose among alternatives c. generate alternatives d. prioritize the alternatives e. reanalyze the problem
c
hich of these questions is central to a functional-level strategy? a. What business are we in? b. How do we compete? c. How do we support our chosen strategy? d. What business do we buy? e. Where to market our products?
c
All of the following are characteristics of the classical decision making model except: a. clear-cut problems and goals. b. conditions of certainty. c. rational choice by individual for maximizing outcomes. d. limited information about alternatives and their outcomes. e. all of these are characteristics of classical decision making model.
d
Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n) _____. a. internal weakness b. external opportunity c. external strength d. internal strength e. neutral factor
d
Decisions regarding the proper amount of advertising for a particular good or service are related to: a. corporate-level strategies. b. functional-level strategies. c. tactical-level strategies. d. business-level strategies. e. retrenchment strategies.
d
If ABC International has standardized its product line throughout the world it is pursuing a: a. multidomestic strategy. b. retrenchment strategy. c. diversity strategy. d. globalization strategy. e. liquidation strategy.
d
Managers are considered to have a(n) _____ style when they prefer to consider complex solutions based on as much data as they can gather. a. behavioral b. conceptual c. directive d. analytical e. classical
d
Nonprogrammed decisions are made in response to situations that are: a. unique. b. unstructured. c. important to the organization. d. all of these e. unique and important to the organization.
d
People with a(n) _____ style usually are concerned with the personal development of others and may make decisions that help others achieve their goals. a. classical b. analytic c. logical d. behavioral e. conceptual
d
Research has identified four major decision styles. These include all of the following except _____. a. behavioral b. conceptual c. analytical d. authoritative e. directive
d
The _____ is the basis for the strategic level of goals and plans which in turn shapes the _____, and _____ level. a. goal; mission, tactical b. objective; operational, mission c. operational goal; mission and tactical d. mission; tactical, operational e. tactical plan; operational, mission
d
The _____ model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take. a. classical b. functional c. bureaucratic d. political e. administrative
d
The essence of _____ is to choose the first solution available. a. bounded rationality b. creativity c. decision maximization d. satisficing e. the classical model of decision making
d
When AT&T decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy. a. functional-level b. internal growth c. multi-domestic d. corporate-level e. business-level
d
Which of the following is NOT one of the benefits of MBO? a. Performance can be improved at all company levels. b. Employees are motivated. c. Efforts are focused on activities that will lead to goal attainment. d. Operational goals are able to displace strategic goals. e. Individual and department goals are aligned with company goals.
d
Which of the following is a business activity that an organization does especially well relative to its competition? a. Strategy b. Synergy c. Cash cow d. Core competence e. Multidomestic
d
Which of the following lists the strategic management process in proper order? a. Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy; Control strategy. b. Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new mission/goals. c. Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform SWOT analysis . d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy. e. Define new mission/goals; Execute strategy; Formulate strategy; Evaluate new mission/goals; Perform SWOT analysis.
d
Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market? a. Star b. Cash cow c. Question mark d. Dog e. Cat
d
Which of the following strategies refers to moving into a new business that is related to the company's existing business activities? a. Horizontal integration b. Vertical integration c. Unrelated diversification d. Related diversification e. Strategic partnership
d
Which of these is true about the cash cow? a. It generates tremendous profits in a rapidly growing industry. b. It has a small market share in a rapidly growing industry. c. It has a small market share in a slow growth industry. d. It has a large market share in a slow growth industry. e. It is generally a dead business that should be divested.
d
Which of these is true about the dog division? a. It has a large market share in a rapidly growing industry. b. It has a large market share in a slow growth industry. c. It has a small market share in a rapidly growing industry. d. It has a small share of a slow growth market. e. It has a moderate market share in a rapidly growing industry.
d
Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices? a. Focus b. Globalization c. Overall cost leadership d. Differentiation e. Liquidation
d
You are violating which of these goal characteristics when you attempt to create goals for every aspect of employee behavior? a. Specific and measurable b. Linked to rewards c. Defined time period d. Cover key result areas e. Challenging but realistic
d
_____ enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response. a. Incident planning b. Contingency planning c. Strategic planning d. Crisis planning e. Emergency planning
d
_____ is a vital part of good management because decisions determine how the organization solves its problems, allocates resources, and accomplishes its goals. a. Organizing b. Competitive visioning c. Proper alignment d. Good decision making e. Leadership
d
the _____ step in the decision making process involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action. a. recognition b. analysis c. evaluation d. implementation e. feedback
d
A(n) _____ occurs when the organizational accomplishment is less than established goals. a. strength b. threat c. diagnosis d. opportunity e. problem
e
Feedback is important because: a. decision making is a continuous process. b. it provides decision-makers with new information. c. it helps determine if a new decision needs to be made. d. it provides decision-makers with new information and it helps determine if a new decision needs to be made. e. all of these.
e
Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which stage of the organizational planning process? a. Developing the plan b. Translating the plan c. Plan operations d. Executing the plan e. Monitoring and learning
e
The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals. a. production b. leadership c. information and control systems d. structural design e. human resource
e
The _____ model closely resembles the real environment in which most managers and decision-makers operate. a. normative b. administrative c. descriptive d. classical e. political
e
The ability to make _____ decisions is a critical skill in today's fast-moving organizations. a. fast b. widely supported c. high-quality d. frequent e. all of these
e
The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n) _____. a. goal b. objective c. mission d. vision e. strategy
e
The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as: a. technological decisions. b. collective intuition. c. decision learning. d. team delay. e. escalating commitment.
e
Which of the following is not a step in the organizational planning process? a. Monitor and learn b. Plan operations c. Translate the plan d. Develop the plan e. Plan marketing tactics
e
According to both research and managerial experience, intuitive decisions are best and always work out. a. True b. False
f
An SBU stands for Star Business Unit. a. True b. False
f
Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies. a. True b. False
f
Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment. a. True b. False
f
Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or services from that of competitors. a. True b. False
f
Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. a. True b. False
f
Defining operational goals and plans occurs in the execution phase of the organizational planning process. a. True b. False
f
Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. a. True b. False
f
For a non-programmed decision, feasible alternatives are hard to identify and in fact are already available within the organization's rules and procedures. a. True b. False
f
The CEO of Andre's Autos, Inc. must do all of the planning for the company because that is the way to do things in today's workplace. a. True b. False
f
The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather. a. True b. False
f
The classical model of decision-making works best in organizations that are made up of groups with diverse interests, goals, and values. a. True b. False
f
The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry. a. True b. False
f
Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view. a. True b. False
t
Research has shown that strategic thinking and planning positively affect a firm's performance and financial success. a. True b. False
t
A decision is a choice made from available alternatives. a. True b. False
t
A director of finance would most likely be interested in executing functional level strategies. a. True b. False
t
A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity. a. True b. False
t
Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions. a. True b. False
t
Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making. a. True b. False
t
For the social networking site Facebook, technological know-how and an aggressive and innovative culture are significant strengths to include in its SWOT analysis. a. True b. False
t
Gerald's Groceries and Marty's Market decided to merge their operations, something neither company has tried before. This would be considered a nonprogrammed decision. a. True b. False
t
If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases. a. True b. False
t
In strategy implementation, leadership is the ability to influence people to adopt the new behaviors needed. a. True b. False
t
Managers believe they are better oriented toward goal achievement when MBO is used. a. True b. False
t
People who prefer simple, clear-cut solutions to problems use the directive style. a. True b. False
t
