MGT 300 Final Exam 5, 6, and 8
Which of the following carmakers pursues a focus-differentiation strategy? A) Ferrari B) Ford C) Volkswagen D) Honda E) Kia
A) Ferrari
Which of the following is NOT a question that Bossily and Charan believe a strong strategic plan must address? A) How will the company handle their social responsibility? B) What is the assessment of the external environment? C) Who is the competition? D) Can the business execute the strategy? E) Are the short term and long term balanced?
A) How will the company handle their social responsibility?
Daitaro started a tax consulting business with his friend Will. They have a small space in a strip mall and one administrative assistant. At which stage of the organizational life cycle is their business? A. Birth stage B. Introduction stage C. Adolescent stage D. Youth stage E. Midlife stage
A) birth stage
Butterfield Grocers is a medium sized but growing company that works diligently to create a supportive and family-like atmosphere for its employees. It provides superior benefits and involves employees in decisions large and small. Butterfield has a(n) _______ culture A) clan B) adhocracy C) market D) hierarchy E) espoused
A) clan
Which of the following is NOT a stage in the strategic-management process? A) conduct a trend analysis B) maintain strategic control C) establish the grand strategy D) establish the mission and vision E) carry out the strategic plans
A) conduct a trend analysis
Creation of alternative hypothetical but equally likely future conditions is called A) contingency planning B) trend analysis C) balancing the scorecard D) strategy formulation E) forecasting
A) contingency planning
An organization is developing a low cost line of environmentally friendly cleaning products that it intends to distribute internationally. Here, the organization is following a _______ strategy. A) cost leadership B) differentiation C) cost focus D) retrenchment E) focus-differentiation
A) cost leadership
Timex Watch makes inexpensive but reliable watches sold throughout the U.S. and is an example of an organization pursuing a _______ strategy. A) cost leadership B) differentiation C) cost focus D) focus-differentiation E) retrenchment
A) cost leadership
_____ help you ignore extraneous matters in favor of focusing on what's important---realizing the goals on time and on budget. A) deadlines B) relationships C) changes D) networks E) options
A) deadlines
A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n) A) defender B) analyzer C) adaptor D) prospector E) reactor
A) defender
______ values are the explicitly stated values and norms preferred by an organization. A. Espoused B. Inherent C. Enacted D. Expressed E. Internalized
A) espoused
When analyzing the "O" in SWOT analysis, a manager might take note of A) favorable government regulations B) absenteeism among employees C) good morale among workers D) high service levels E) good financial position
A) favorable government regulations
Among the jobs titles at Greensboro Regional Hospital are Chief of Medical Services, Director of Administrative Services, and Director of Outpatient Services. Greensboro has a ______ structure. A. functional B. network C. simple D. divisional E. matrix
A) functional
Zach manages a small bike repair store. In order to determine if strategic planning will be likely to help this business, Zach should primarily assess A) how many competitors he has B) foot traffic by his location C) his probability in the prior six months D) industry trends E) how much he intends to grow in the next five years
A) how many competitors he has
Which of the following is an example of a nonprofit organization? A. The Humane Society B. The Democratic party C. State Farm Insurance D. American Institute of CPAs E. Teamsters Union
A) humane society
Which of the following is an example of an observable artifact? A. Enacted norms B. Myths about the company C. Basic assumptions D. Core values E. Internal values
B) myths about the company
With a ______ structure, an organization can become a boundaryless organization, with extensive operations but a small core that keeps payroll and overhead down. A. functional B. network C. simple D. team-based E. matrix
B) network
The goal to "improve the quality of customer service by instituting follow-up telephone calls this month" is not a SMART goal because it is A) unlikely to align with higher level goals B) not measurable C) to simplistic D) not results-oriented E) unlikely to result in improvement to customer service
B) not measurable
Jorje is meeting with his subordinates to determine which workers from his department need training in order to handle production increases expected during the next nine months. Jorje is involved in A) vision development B) operational planning C) controlling D) tactical planning E) developing an MBO
B) operational planning
Environmental factors that the organization may exploit for a competitive advantage are known as A) organizational strengths B) organizational opportunities C) organizational threats D) organizational weaknesses E) competitive strategies
B) organizational opportunities
According to Bossily and Charan, which business process is most important for effective execution? A) strategy B) people C) alignment D) operations E) research
B) people
The constant feedback loop of the ______ is designed to ensure plans stay headed in the right direction. A) means-end chain B) planning/control cycle C) control system D) project management method E) project planning loop
B) planning/control cycle
In a new broadband environment, consumers are more able than ever before to download products like music, movies, and books. Netflix has been aggressive in taking advantage of this fact, offering web streaming and game console-access to its customers. According to Miles and Snow, Netflix would be a(n) A) reactor B) prospector C) analyzer D) defender E) executor
B) prospector
Management instituted a new _______ in Eric's workplace that "employees who falsify timesheet will be given a written warning". A) policy B) rule C) procedure D) project E) program
B) rule
A SMART goal is one that is A) specific, maintainable, affordable, realistic, and timely B) specific, measurable, attainable, results-oriented, and has target dates C) specific, maintainable, achievement-oriented, real-time, and timely D) specific, measurable, affordable, realistic, and has target dates E) specific, maintainable, aligned with other goals, realistic, and timely
B) specific, measurable, attainable, results-oriented, and has target dates
Southwest Airlines employees all know about when CEO Herb Kelleher visited one of the airlines' hangars in the middle of the night in a dress with a purple boa - just to liven things up. In fact, this is part of Southwest's history. This is an example of a A. myth. B. story. C. ritual. D. rite. E. value
B) story
_____ consists of monitoring the execution of strategy and making adjustments, if necessary. A) mission translation B) strategic control C) strategy implementation D) contingency planning E) SWOT analysis
B) strategic control
Long-term decisions about the overall direction of the organization, based in part on environment conditions outside the firm, are part of the A) management plan B) strategic plan C) tactical plan D) operational plan E) implementation plan
B) strategic plan
Sandra is participating with other managers in a discussion about the external environment and what her organization's goals should be for the next three years. She is participating in A) tactical planning B) strategic planning C) operational planning D) controlling E) writing a missions
B) strategic planning
The ______ perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance. A. market B. strength C. fit D. objective E. adaptive
B) strength
One of the typical devices for transmitting culture, a(n) ______ is an object, act, quality, or event that conveys meaning to others. A. icon B. symbol C. sign D. representation E. ritual
B) symbol
________ refers to the idea that the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately. A) structural benefit B) synergy C) selective function D) alignment E) interaction
B) synergy
According to productivity expert Odette Pollar, which of the following should a manager delegate? A) emergencies B) tasks that challenge subordinates C) special tasks your boss has asked you to do D) personnel matters E) confidential matters
B) tasks that challenge subordinates
Karen has just completed an assessment that indicates that her employees lack technological expertise to produce a new product line. She has discovered one of her firm's A) strengths B) weaknesses C) opportunities D) threats E) market changes
B) weaknesses
According to the text, a small firm is likely to benefit significantly from strategic planning A) regardless of the nature of its industry or market B) when it is in a very competitive industry C) when it is in a very new industry D) when it is in a very stable industry E) when it has a very small market
B) when it is in a very competitive industry
The arrangement of having discrete parts of a task done by different people is called an organization's A. coordinated effort. B. work specialization. C. span of control. D. chain of command. E. matrix division.
B) work specialization
A recent survey found that the top concern among CEOs worldwide is A) profit growth B) customer loyalty C) excellence in execution D) stimulating innovation E) finding qualified employees
C) excellence in execution
Which of the following is a consequence of decentralized authority? A. Greater uniformity B. Decreased efficiency C. Greater flexibility D. Slower decisions E. Decreased duplication of work
C) greater flexibility
Rocky Mountains Ski and Snowboard is a small shop that provides ski equipment for Rocky Mountain skiers. It has decided to increase advertising in the Denver Post and the Vail Voice as well as the sponsor one of the mountain competitions. It is following which strategy? A) inducement B) defensive C) growth D) stability E) enhancement
C) growth
The common grand strategies are A) star, question mark, cash cow, and dog B) cost-leadership, differentiation, cost focus, and focus differentiation C) growth, stability, and defensive D) strengths, weaknesses, opportunities, and threats E) defender, prosector, analyzer, and reactor
C) growth, stability, and defensive
An organization's ______ is a control mechanism for making sure the right people do the right things at the right time. A. central command B. division of labor C. hierarchy of authority D. span of control E. strategic plan
C) hierarchy of authority
When analyzing the "W" in the SWOT analysis, a manager might take note of A) a decrease in the size of the market B) competitors' actions C) high turnover of employees D) good financial resources of the firm E) governmental actions
C) high turnover of employees
At Clarkson Farm Equipment, specialists from marketing, manufacturing, and engineering departments work closely together on new tractor designs. Clarkson is an example of a ______ organization. A. highly differentiated B. centralized C. highly integrated D. mechanistic E. bureaucratic
C) highly integrated
A formal chain of command, standardization of rules and procedures, and use of cross-functional teams enhance an organization's A. assimilation. B. differentiation. C. integration. D. decentralization. E. centralization.
C) integration
Which of the following would BEST describe MBO? A) it works at the highest levels of an organization B) it works at the lowest levels of an organization C) its purpose is to motivate employees D) its purpose is to control employees E) it is used to benchmark against competitors
C) its purpose is to motivate employees
Which of the following statements is good advice for those transitioning upward in an organization? A. Don't try to manage upward or sideways B. Invent your own kind of management style C. Maintain good relationships with other departments D. Enjoy the solitude of upper management positions E. Focus on the rights and privileges of your new job
C) maintain good relationships with other departments
At which stage of the organizational life cycles does lack of flexibility and innovation become the danger to the business? A. Adult stage B. Birth stage C. Maturity stage D. Adolescent stage E. Youth stage
C) maturity stage
Avery Micro has tight requirements and very detailed procedures for creating small machine parts through an injection molding process. Avery is a(n) ______ organization. A. hybrid B. integrated C. mechanistic D. flat E. organic
C) mechanistic
Which level of management is most often engaged in tactical planning? A) working-level employees B) first-line managers C) middle managers D) top managers E) consultants
C) middle managers
In a functional structure, people with ______ are grouped together. A. similar levels of authority B. temporary jobs on the same project C. similar occupational specialties D. jobs related to similar products E. jobs in the same geographic region
C) similar occupational specialities
A career that is upwardly mobile, with a number of jobs that are fundamentally different yet still build on one another is known as a(n) ______ career A) steady-state B) portfolio C) spiral D) inclining E) linear
C) spiral
On an organizational chart, a dotted line indicates a(n) A. outside company. B. line position. C. staff position. D. temporary employee. E. non-managerial employee.
C) staff position
A ______ represents an "educated guess" about what must be done in the long term for survival or the prosperity of the organization or its principal parts. A) trend analysis B) mission C) strategy D) forecast E) contingency plan
C) strategy
Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helping for A) situation analysis B) strategy formulation C) strategy implementation D) contingency planning E) strategic control
C) strategy implementation
Aurelia is working with a group from different departments in her company on a special project, yet she still has all of responsibilities of her regular job and still reports to the same manager. Aurelia is working in a ______ structure. A. matrix B. work cluster C. team-based D. hybrid E. network
C) team-based
In an organic organization, A. authority is centralized. B. communication is formal. C. the span of control is wide. D. tasks are highly specialized. E. many rules and procedures exist.
C) the span of control is wide
A time series forecast, which is used to predict long-term trends, cyclic patterns and seasonal variations, is one type of A) organizational strength B) contingency planning C) trend analysis D) balancing the scorecard E) strategy formulation
C) trend analysis
Which of the following is the way culture becomes embedded in an organization? A. Writing a strategic plan B. Performing competitive analysis C. Using a teaching process D. Conducting formal market research E. Following legal requirements
C) use a teaching process
Andy is interested in learning more about what one of his competitors is doing so that he can anticipate its upcoming moves and react quickly. Which of the following would you suggest to him for this purpose? A) go through the competitor's trash on its property B) pose as an applicant for a job with the competitor C) use investor information D) call the competitor, explain who you are, and ask directly E) pay the competitor's customers for information
C) use investor information
Goodwill Industries, a charity that provides training and employment services to the disabled, is which type of organization? A. Clan B. For-profit C. Mutual-benefit D. Nonprofit E. Market
D) Nonprofit
Which of the following is a good reason to avoid delegating tasks? A) a wish to keep subordinates from taking risks B) to avoid making subordinates deal with a difficult client C) a desire to keep an enjoyable part of the job D) a fear that sensitive personnel matters will not be kept private E) a concern that subordinates could do a better job
D) a fear that sensitive personnel matters will not be kept private
Which of the following is most likely to use a diversification strategy? A) a tax preparation business B) a flower shop C) a lawn service D) a grocery store E) a shoe store
D) a grocery store
If a business lacks insights or fails to use the adaptive cycle properly, it is likely to become which of the following? A) a prospector B) an analyzer C) a defender D) a reactor E) an imitator
D) a reactor
Good job design requires matching the level of responsibility to the level of A. liability. B. dependability. C. delegation. D. authority. E. position power.
D) authority
Adriana is assessing her company's portfolio of products. One of them is the best selling brand of mouthwash, although this is now a slow growing market. If Adriana uses the BCG matrix, she would classify this product as a A) star B) cloud C) question mark D) cash cow E) dog
D) cash cow
If you do not have all the information for a complete plan, you should A) make decisions based on what you have, since perfect information is rare B) wait until you can get that information to take action you know will be appropriate C) implement two or more courses of action simultaneously D) shrink the plan to limit its scope to only areas where you have good information E) disregard the plan and go with your intuition
A) make decisions based on what you have, since perfect information is rare
An organization that contains two command structures, and in which some people actually report to two bosses, is a ______ structure. A. matrix B. bi-functional C. team-based D. hybrid E. network
A) matrix
A ______ structure has a central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization. A. network B. matrix C. technology D. hybrid E. mechanistic
A) network
The skills and capabilities that give the organization advantages in executing strategies in pursuit of its mission are known as A) organizational strengths B) organizational opportunities C) organizational threats D) organizational weakness E) competitive strategies
A) organizational strengths
A _____ outlines the general response to a designated problem or situation A) policy B) project C) rule D) procedure E) program
A) policy
After setting goals, managers should next A) prepare an action plan for accomplishing the goals B) propose changes to the goals of same-level managers to bring all into alignment C) supervise subordinates closely D) report failure to meet goals to superiors E) begin the planning process anew
A) prepare an action plan for accomplishing the goals
The obligation you have to perform the tasks assigned to you is called A. responsibility. B. accountability. C. delegation. D. authority. E. position power.
A) responsibility
A strategy that involves reduction in the organization's efforts is the A) retrenchment B) reorganization C) downsize D) growth E) stability
A) retrenchment
Toledo Fashions has decided its industry requires it to move to a more organic structure. Toledo should A. simplify and eliminate rules and procedures. B. centralize authority. C. clearly define job responsibilities. D. disband teams and task forces. E. add one or more layers of management.
A) simplify and eliminate rules and procedures
Sabra has been running a commercial real estate business for nearly thirty years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Sabra is using which grand strategy? A) stability B) retrenchment C) inducement D) defensive E) growth
A) stability
Amazon's Kindle has a very high percentage of the market for eBook readers, and this is also a quickly growing market. Thus, using the BCG matrix, the Kindle would be classified as a A) star B) cloud C) question mark D) cash cow E) dog
A) star
The process of choosing among different strategies and altering them to best fit the organization is called A) strategy formulation B) contingency planning C) strategic control D) strategy implementation E) trend analysis
A) strategy formulation
Which of the following is NOT an area in which a company needs to get and stay ahead in order to sustain a competitive advantage? A) talented employees B) quality C) effectiveness D) being responsive to customers E) innovating
A) talented employees
Productivity gains from MBO are higher when an organization has A) top-management commitment B) few budge problems C) team rather than individual performance reviews D) union support E) non managerial employee support
A) top-management commitment
Which of the following can be classified as a mutual-benefit organization? A. Trade association B. Hospital C. Financial company D. Retail company E. College
A) trade association
Amazon.com's statement expressing its desire "to build a place where people can come to find and discover anything they might want to buy online" is a(n) A) vision statement B) intention statement C) goal statement D) mission statement E) rationale statement
A) vision statement
The managers of Zach's Furniture recently crafted this statement: "Zach's endeavors to become the largest supplier of discount furniture in the western United States." This is most likely a(n) A) vision statement B) intention statement C) goal statement D) mission statement E) rationale statement
A) vision statement
A situational analysis is also known as A) strategic control B) SWOT analysis C) trend analysis D) contingency planning E) forecasting
B) SWOT analysis
When analyzing the "T" in SWOT analysis, a manager might take note of A) a firm's assets B) a competitor's new product C) employee absenteeism D) strong corporate culture E) high service levels
B) a competitor's new product
__________ means that managers must report and justify work results to managers above them. A. Liability B. Accountability C. Delegation D. Hierarchical control E. Position power
B) accountability
Which of the following is NOT one of the mechanisms used to embed culture into an organization? A. Formal statements B. Accounting practices C. Leader reactions to crisis D. Training and coaching E. Measurable activities
B) accounting practices
Which of the following is a characteristic of a simple structure? A. Comprehensive set of rules B. Centralized authority C. High work specialization D. Extensive division of labor E. Tall hierarchy
B) centralized authority
Maz has examined the environment in which his organization operates and has determined that currently the market demands an organic and integrated structure. Maz did this as part of his A. environmental analysis. B. contingency design. C. life cycle analysis. D. Diversification plan. E. Integration plan.
B) contingency design
Desiree, a sales manager, met with her staff to discuss that they were only a third of the way to their sales goal, but halfway through the sales period. She was looking for suggestions to improve second half performance. Which part of the planning/control cycle is Desiree doing? A) benchmarking against competitors B) controlling the direction C) making the plan D) carrying out the plan E) updating the plan
B) controlling the direction
An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of A) cost leadership B) differentiation C) cost focus D) diversification E) focus-differentiation
B) differentiation
Technical specialization and division of labor in an organization lead to A. bureaucracy. B. differentiation. C. integration. D. conglomeration. E. decentralization.
B) differentiation
The "HP Way" at Hewlett-Packard fostered a culture of integrity, teamwork, and innovation that complemented the high-technology industry of the time. This is an example of which perspective? A. Strength perspective B. Fit perspective C. Match perspective D. Conditional perspective E. Adaptive perspective
B) fit perspective
The benefit of the single-product company is A) synergy B) focus C) isolated systems D) differentiation E) lower costs
B) focus
A vision or projection of the future is called a(n) A) trend B) forecast C) contingency D) strategy E) opportunity
B) forecast
American Auto Parts recently acquired two smaller auto parts companies in the Southwest to gain a national presence. American Auto Parts is pursuing a(n) _______ strategy. A) escalation B) growth C) stability D) merger E) defensive
B) growth
Which of the following is NOT a typical cause of bad planning? A) information overload B) inadequate planning budgets C) ineffective group dynamics D) poor assessment of an organization's capabilities E) faulty assumptions about the future
B) inadequate planning budgets
Which of the following steps of the strategic-management process is the source of its feedback loop? A) carry out the strategic plan B) maintain strategic control C) establish the grand strategy D) establish the mission and vision E) formulate the strategic plans
B) maintain strategic control
MBO stands for A) management by observation B) management by objectives C) management by ownership D) management by obligation E) management by organization
B) management by objectives
Xerox Corporation is currently in what stage of its organizational life cycle? A. Birth stage B. Maturity stage C. Adolescent stage D. Youth stage E. Adult stage
B) maturity stage
Which of the following is a stage in the life of an organization? A. Introduction B. Midlife C. Decline D. Adolescent E. Growth
B) midlife
Laurie has been struggling with her weight and one of her coworkers suggested that she make a SMART goal for herself. Which of the following is the best example of a SMART goal for Laurie? A) I want to lose a lot of weight. B) I want to look better in a swimsuit. C) I want to lose 20 pounds by June 1, 2011. D) I want to start losing weight soon. E) I want to lose 30% of my body mass by next month
C) I want to lose 20 pounds by June 1, 2011
An example of a firm that pursues a differentiation strategy is A) Cartier B) Bic C) Lexus D) San Francisco Bay Area discount gas station chain E) Rolls Royce
C) Lexus
Which of the following is NOT a device through which culture is typically transmitted to employees? A. Symbols B. Stories C. Strategic plan D. Heroes E. Rites and rituals
C) Strategic Plan
In what stage of the organizational life cycle does a firm increase its hiring, create some division of labor and begin setting rules? A. Midlife B. Maturity C. Youth D. Growth E. Birth
C) Youth
Which of the following is NOT a description of organizational culture? A) a system of shared beliefs and values B) "social glue" binding members together C) a system of reporting relationships D) an organization's personality E) a system that guides the behavior of organizational members
C) a system of reporting relationships
Digital Globe is a technology company that provides advanced high-resolution satellite pictures of the earth, digitalized for electronic use. As the military, governments, and other demand clear pictures, Digital Globe provides them immediately with its innovative and responsive products. Digital Globe is most likely an example of a(n) _______ culture A) inventive B) clan C) adhocracy D) market E) hierarchy
C) adhocracy
A company producing cameras and video cameras prefers to focus its resources on a fast imitation program to reverse engineer new features from competitors and add those, rather than implementing truly inventive features. Miles and Show would call this company a(n) A) reactor B) prospector C) analyzer D) defender E) imitator
C) analyzer
Which of the following statements about strategic planning and strategic management is true? A) strategic planning is rarely used because it does not allow for flexibility in changing conditions B) strategic management is a process completed by top managers C) both can be used to develop a sustainable competitive advantage D) middle managers need not understand strategies; they simply follow them E) strategic planning is used to accomplish tactical goals
C) both can be used to develop a sustainable competitive advantage
Customers can use a national company called Service Magic to receive bids from quality providers of a variety of services, including home remodel, landscaping, plumbing, and housecleaning. Which of the following is the source of Service Magic's strategic position? A) low profit margin and many customers B) broad needs and few customers C) broad needs and many customers D) high profit margin and many customers E) high profit margin and few customers
C) broad needs and many customers
At Birney Electronics, all purchasing, hiring, and production decisions are made by top management. Birney has ______ authority. A. classical B. wide C. centralized D. for-profit E. matrix
C) centralized
In terms of difficulty, the best goals are A) just beyond what is achievable, to maximize motivation B) easy to attain, so failure will not hurt morale C) challenging but realistic D) impossible, because they are meant to be inspirational E) easy or hard, since both work equally well
C) challenging but realistic
An organization that keeps costs and prices low in targeting a narrow market is pursuing a strategy of A) cost leadership B) differentiation C) cost focus D) stability E) focus-differentiation
C) cost focus
Porter's competitive strategies include A) prospector, defender, analyzer, and reactor B) growth, stability, and retrenchment C) cost leadership, differentiation, cost focus, and focused differentiation D) strengths, weaknesses, opportunities, and threats E) stars, question marks, cash cows, and dogs
C) cost leadership, differentiation, cost focus, and focused differentiation
Which of the following is one of the organizational responses organizations make when confronted with uncertainty, as identified by Miles and Snow? A) aggressor B) investigator C) defender D) planner E) reorganizer
C) defender
A luxury cruise line was struggling with heavy debt and a sharp decline in customers, and it eventually declared bankruptcy. Which of the following strategies has the company followed? A) growth B) stability C) defensive D) reduction E) reactive
C) defensive
Lane Office Products phased out its line of typewriters several years ago as part of its _______ strategy. A) growth B) stability C) defensive D) reorganization E) reactor
C) defensive
The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy is called A. designation. B. accountability. C. delegation. D. authority. E. allocation.
C) delegation
Time Warner runs different divisions specializing in television, music, and publishing. Time Warner is using a(n) ______ strategy. A) stability B) defensive C) diversification D) differentiation E) infiltration
C) diversification
Which of the following is NOT one of Bryan Barry's recommendations to keep a strategic plan on track? A) keep moving B) engage people C) dont second guess D) keep it simple E) stay focused
C) dont second guess
What is time frame of operational plan? A) 2-10 years B) 1-5 years C) 6-24 months D) 1-52 weeks E) 1-90 days
D) 1-52 weeks
The competing values framework classifies organizational cultures into which of the following? A) stable, flexible, and laddered cultures B) observable, flexible, competitive, and driven cultures C) symbolic, heroic, and basic cultures D) clan, adhocracy, market, and hierarchy cultures E) observable, espoused, and core cultures
D) clan, adhocracy, market and hierarchy cultures
Which of the following is NOT a likely source of information for competitive intelligence? A) competitors' press releases B) industry gossip C) competitors' annual reports D) competitor's customer records E) field visits to customers
D) competitor's customer records
Improving future plans is part of which step in the planning/control cycle? A) making the plan B) carrying out the plan C) benchmarking against competitors D) controlling the direction E) updating the plan
D) controlling the direction
Management at the Pauly Recreational Products has recognized that the firm is much slower than the competition at getting new designs to market. The problem seems to stem from coordination problems between the various functional departments involved in the recreational vehicle design process. Pauly should A. improve technical training for employees. B. formalize the division of labor. C. relax its rules and procedures. D. create cross-functional teams for development. E. cancel all social events for employees.
D) create cross-functional teams for development
Techno Tools is selling off land, buildings, and some of its product inventory. This is a variation of which of these grand strategies? A) right-size B) growth C) stability D) defensive E) reorganization
D) defensive
Which of the following is associated with operational planning? A) decisions about the overall direction of the organization B) examination of the environment outside of the organization C) implementation of policies and plans of top management D) directing daily tasks to nonmanagerial personnel E) making decisions under highly uncertain conditions
D) directing daily tasks to nonmanagerial personnel
Hisoka took a new job at a small consulting firm and was surprised to find that most employees had no job titles. A coworker explained that top management wanted to create a level playing field, allowing motivated employees to seek leadership roles on a project by project basis. No job titles, here, is an example of A. stabilizing structure B. measuring activities C. increasing accountability D. embedding culture E. reinforcing hierarchy
D) embedding culture
According to Bossily and Charan, effective ______ requires managers to build a foundation for it within three core principles: people, strategy, and operations. A) tactics B) strategy C) follow-through D) execution E) operations
D) execution
Which of the following is one of the challenges of planning? A) assigning the right people to tasks B) determining the correct budget C) measuring results with accuracy D) finding the time to plan E) motivating employees
D) finding the time to plan
Which of the following should be included in a good vision statement? A) firm's attitude toward its employees B) geographical areas in which the firm is complete C) firm's basic technology D) firm's standards of excellence and high ideas E) firm's major products or services
D) firm's standards of excellence and high ideas
_______ group activities around defined regional locations. A. Functional structures B. Locality divisions C. Site networks D. Geographic divisions E. Matrix organizations
D) geographic divisions
A Ritz-Carlton beach attendant who surprised a couple with flowers, candles, and champagne for the man's proposal would be considered a A. champion. B. key employee. C. potential manager. D. hero. E. superior.
D) hero
Ellie met with her supervisor for a formal review of her job performance over the past year. Though Ellie had agreed to complete five training modules during the course of the year, she only did two. At this stage, which part of the planning/control cycle would be applicable to her manager going forward? A) carry out the plan B) improve feedback C) correct deviations in the plan D) improve future plans E) benchmark against other employees
D) improve future plans
Kia Motors takes a very aggressive stance to fire executives who don't meet sales goals, which makes the company an example of a(n) _______ culture. A) clan B) target-driven C) adhocracy D) market E) hierarchy
D) market
Purcell Natural Gas Co. has a functional structure throughout the company but also has a second chain of command based on the part of the U.S. where one works. This organization has a ______ structure. A. bi-functional B. hybrid C. network D. matrix E. team-based
D) matrix
Agile Consultant, Inc. has a written statement which says, "Agile exists to provide its clients with exemplary service, to help them achieve their goals, and to use our success to make the city of Las Vegas a better place to live." This is an example of a(n) A) purpose statement B) vision statement C) intention statement D) mission statement E) goal statement
D) mission statement
Which of the following is the correct order of planning steps within an organization? A) strategic planning, mission statement and vision statement, operational planning, tactical planning B) strategic planning, mission statement and vision statement, tactical planning, operational planning C) strategic planning, operational planning, mission statement and vision statement, tactical planning D) mission statement and vision statement, strategic planning, tactical planning, operational planning E) mission statement and vision statement, strategic planning, operational planning, tactical planning
D) mission statement and vision statement, strategic planning, tactical planning, operational planning
In a ______ structure, a firm assembles product chunks, or modules, provided by outside contractors. A. compilation B. network C. outsourced D. modular E. production
D) modular
When managers must be closely involved with their subordinates, they should have a ______ span of control. A. flexible B. wide C. flat D. narrow E. lean
D) narrow
Information-technology companies such as Motorola favor a(n) ______ structure because they constantly have to adjust to technological change. A. mechanistic B. bureaucratic C. formalized D. organic E. tall
D) organic
Bossily and Charan believe that to excel at execution, a leader should A) be hands-off once the strategy is set B) micromanage the tactics C) empower employees to take over the execution D) probe for weakness in the substance and details E) let the plan run its course before attempting to revise it
D) probe for weakness in the substance and details
When White Castle specifies exactly how to dress a hamburger, including the order of the condiments, this is called a A) program B) policy C) rule D) procedure E) project
D) procedure
A single-use plan encompassing a range of projects or activities is a(n) A) strategy B) series C) agenda D) program E) mission
D) program
The space shuttle Discovery is an example a A) policy B) rule C) procedure D) project E) program
D) project
Terell is a new manager, and he is using MBO for the first time. It is essential for Terell to A) decide on goals for employees and clearly inform them to these goals B) ask the employee to commit the goals to memory C) set goals that are just out of the subordinate's reach D) reward employees when they meet objectives E) review an employee's performance one, at the end of the performance period
D) reward employees when they meet objectives
The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as A. myths. B. stories. C. conventions. D. rites and rituals. E. values.
D) rites and rituals
Planning is defined as A) formulating a method to allocate resources effectively B) motivating employees C) coping with obstacles to past performance D) setting goals and deciding how to achieve them E) implementing strategic goals
D) setting goals and deciding how to achieve them
According to Lawrence and Lorsch, the _____ determine(s) the degree of differentiation or integration that is appropriate. A. resources available to an organization B. governmental pressures on an organization C. organization's culture D. stability of an organization's environment E. size of the organization
D) stability of an organization's environment
"Find out what customers want, then provide it to them as cheaply and quickly as possible" is Wal-Mart's A) growth plan B) technical plan C) synergy D) strategy E) forecast
D) strategy
When analyzing the "S" in a SWOT analysis, a manager might take note of A) a decrease in the size of the market B) competitors' actions C) high turnover of employees D) strong financial resources of the firm E) governmental actions
D) strong financial resources of the firm
Apple has a plan to generate buzz for its new products by maintaining secrecy about them. Apple has learned that strong measures are required to protect such mysteries, so it has enhanced its security and even fired and sued employees for leaking news about the products. These efforts would be considered which part of the planning/control cycle? A) making the plan B) carrying out the plan C) comparing results D) taking corrective action E) benchmarking competitors
D) taking corrective action
In a mechanistic organization, A. most communication is informal. B. many teams and task forces are operating simultaneously. C. authority is decentralized. D. tasks and rules are clearly specified. E. employees are loosely supervised.
D) tasks and rules are clearly specified
Which of the following strategy tools suggests that an organization will do better in fast-growing markets in which it has a high market share rather than in slow-growing markets in which it has a low market share? A) SWOT analysis B) Porter's model for industry analysis C) Porter's competitive strategies D) The BCG matrix E) Trend analysis
D) the BCG matrix
Emily has prepared a report that details how prices for several of the raw materials her firm uses in production have risen up to 30% in the last year. Her report would be an input into the _______ part of the SWOT analysis. A) strengths B) weaknesses C) opportunities D) threats E) structure
D) threats
Which of the following is NOT one of the forces that affects industry competition, according to Porter's model for industry analysis? A) threats to new entrants B) threats to substitute products and services C) bargaining power of buyers D) threats of government interference E) bargaining power of suppliers
D) threats of government interference
Which of the following would be considered a reason for adopting strategic management and strategic planning? A) to enhance employee loyalty B) to keep corporate taxes C) to develop independent work from the staff D) to provide direction and momentum E) to increase market dominance with repeat purchase
D) to provide direction and momentum
Another term for the chain of command of an organization is A. reporting linkage. B. span of control. C. horizontal specialization. D. vertical hierarchy. E. network structure.
D) vertical hierarchy
What cultural perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes? A. Strength perspective B. Fit perspective C. Adjustment perspective D. Conditional perspective E. Adaptive perspective
E) adaptive
Which of the following cultural perspectives leads to the highest long-term financial performance? A. Strength perspective B. Fit perspective C. Market perspective D. Conditional perspective E. Adaptive perspective
E) adaptive
The core values of an organization's culture are represented by its A. enacted norms. B. invisible artifacts. C. symbolic culture. D. heroic mores. E. basic assumptions.
E) basic assumptions
JT runs a small bakery on the main street of a resort town. Though his was the only bakery around, the business had been suffering in the recent recession and he was contemplating whether he should attempt strategic planning. JT should be aware of what research finding regarding strategic planning? A) only large firms show performance gains from strategic planning B) only small firms show performance gains from strategic planning C) performance gains from strategic planning are equal among small and large firms D) both small and large firms benefit from strategic planning, but small firms get a larger boost in performance E) both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms
E) both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms
As an organization goes through the stages of the life cycle, it becomes more A) informal B) centralized C) unstable D) organic E) bureaucratic
E) bureaucratic
Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately is called A) SWOT analysis B) forecasting model C) contingency plan D) trend analysis E) competitive intelligence
E) competitive intelligence
Herndon Security operates across Florida and Georgia with a variety of products and services. It has a unit located in Tampa that provides home security to its clients, and another unit in Atlanta that provides security for businesses, in particular banks and high-technology firms. This is a ______ structure. A. functional B. simple C. geographic divisional D. matrix E. customer divisional
E) customer divisional
Elizabeth is a good manager but she is also a perfectionist. She often feels that she is the only one who can handle her division's special clients, so she frequently has problems with A. responsibility. B. allocation. C. accountability. D. authority. E. delegation.
E) delegation
Although managers may wish to affect employees with explicitly stated values, they are frequently more influenced by ______ ones. A. subversive B. expressed C. espoused D. adopted E. enacted
E) enacted
The adaptive cycle portrays businesses as continuously cycling through kinds of business decisions: entrepreneurial, _______, and administrative. A) leadership B) alignment C) organization D) production E) engineering
E) engineering
Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plan is called A) competitive intelligene B) forecasting C) contingency planning D) trend analysis E) environmental scanning
E) environmental scanning
Which of the following statements about strategy and strategic positioning is FASLE? A) many customers with broad needs can be a source of strategic position B) a company has to choose not only what strategy to follow but what strategy not to follow C) few customers with broad needs can be a source of strategic position D) strategy involves creating a "fit" among activities E) few customers with narrow needs can be a source of strategic planning
E) few customers with narrow needs can be a source of strategic position
An organization that offers unique, superior products or services to a narrow market is pursuing a strategy of A) cost leadership B) differentiation C) cost focus D) diversification E) focus-differentiation
E) focus-differentiation
Which type of culture has an internal focus and values stability and control over flexibility? A) clan B) adhocracy C) market D) classical E) hierarchy
E) hierarchy
Hernandez Construction Supply has product divisions for lumber, hardware, electrical supplies, and plumbing supplies. Each has its own production facility and sales staff. Hernandez is A. tightly integrated. B. team-based. C. functionally organized. D. a matrix organization. E. highly differentiated.
E) highly differentiated
The first step in the MBO process is to A) determine rewards for meeting goals B) give a performance appraisal C) develop an action plan D) periodically review performance E) jointly set objectives
E) jointly set objectives
Effective strategic management involves A) only top management B) only top and middle management C) only middle and lower management levels D) only lower management level E) managers from all parts of the organization
E) managers from all parts of the organization
The statement which expresses the purpose of an organization is called a(n) A) goal statement B) rationale statement C) vision statement D) intention statement E) mission statement
E) mission statement
Analysis of changing demographics of the population would be part of the assessment of a company's A) strengths B) weaknesses C) opportunities D) threats E) opportunities or threats depending on the outcome of the analysis
E) opportunities or threats depending on the outcome of the analysis
Which of the following is a benefit of planning? A) planning allows you to spend little time preparing for the future B) planning allows you to make all decisions without consulting superiors C) planning helps you compare your results to your competitors' D) planning helps the company to be spontaneous E) planning helps you cope with uncertainty
E) planning helps you cope with uncertainty
_______ group activities around similar products or services. A. Output structures B. Matrix organizations C. Offering divisions D. Functional structures E. Product divisions
E) product divisions
MBO works by cascading objectives down through the organization, and these objectives become more ______ at lower levels of the organization. A) measurable B) challenging C) results-orientated D) attainable E) specific
E) specific
Burrold Baggage expects to improve profitability of the organization by 15% over the next three years by cutting costs through global outsourcing. This is an example of a(n) A) managerial objective B) operational goal C) tactical goal D) organizational objective E) strategic goal
E) strategic goal
______ means performing different activities from rivals or performing similar ones in different ways. A) competitive planning B) distinctive positioning C) collaborative planning D) strategic segmentation E) strategic positioning
E) strategic positioning
There are three levels of planning. Their oder, from first to last, is A) operational, tactical, and strategic B) strategic, operational, and tactical C) tactical, operational, and strategic D) tactical, strategic, and operational E) strategic, tactical, and operational
E) strategic, tactical, and operational
A manager assessing the organization's access to capital is involved in analysis of A) strengths B) weaknesses C) opportunities D) threats E) strengths or weaknesses depending on the outcome of the assessment
E) strengths or weaknesses depending on the outcome of the assessment
In which type of culture do employees adhere to the organization's values because they believe in its purpose? A. Fit B. Strategic C. Conditional D. Adaptive E. Strong
E) strong
Top management has recently made some new long-term goals for the organization, so than, a division manager, is meeting with other managers to discuss how to implement policies to support these goals in the next 24 hours. He is participating in A) mission development B) strategic planning C) controlling D) operational planning E) tactical planning
E) tactical planning
Oil companies must be aware of other firms' development of ethanol products since this is an example of which one force in Porter's model for industry analysis? A) bargaining power of buyers B) rivalry among competitors C) bargaining power of suppliers D) threats of new entrants E) threats of substitute products and services
E) threats of substitute products and services
Which of the following is NOT a behavior of a leader who executes? A) set clear priorities B) insist on realism C) follow through D) know yourself E) understand employee limitations
E) understand employee limitations
Which of the following is an example of a mutual-benefit organization? A. Federal Bureau of Investigation B. University of California at Berkeley C. U.S. Postal Service D. Public Broadcasting System E. United Auto Workers union
E) united auto workers union
Which of the following is a question that should be answered by a company's mission statement? A) does it inspire enthusiasm and encourage commitment? B) does it set standards of excellence? C) is it appropriate for the organization? D) is it well articulated? E) who is our customer?
E) who is our customer?
A supervisor of an assembly line has 45 employees that report to her; this would be considered a(n) ______ span of control. A. unsustainable B. tall C. deep D. complex E. wide
E) wide
