MGT-3003 Exam 1

What are the 5 steps in the strategic management process?

1. Establish mission and vision 2. Asses the current reality 3.Formulate the grand strategy & strategic, tactical, and operational plans 4. Implement the strategy 5. Maintain strategic control

Costco currently has locations in Australia and in South Korea. Which of the following trading blocs would reduce tariffs and other trade barriers between the United States, Australia, and South Korea? A. APEC B. Mercosur C. EU D. NAFTA E. CAFTA-DR

A. APEC

Which of the following is NOT a reason Best Buy has had a hard time competing with Amazon? A. Best Buy decided to bring in Hubert Joly as CEO to replace Brian Dunn. B. Amazon has many strategically located distribution centers across the United States. C. Best Buy had significant expenses that did not help improve sales. D. Amazon has a deep supply of products to draw from. E. Best Buy has faced some key leadership challenges.

A. Best Buy decided to bring in Hubert Joly as CEO to replace Brian Dunn.

_______ bias occurs when someone uses information from the outcome of a decision, often a negative outcome, and retrospectively realizes what they should have done. A. Hindsight B. Availability C. Framing D. Escalation of commitment E. Representative

A. Hindsight

Quality Builders, a home builder in the United States, makes use of many suppliers to provide quality products in the homes it builds, such as a roofer in the same city and Belize International in Guatemala, which provides some of the highest-quality cabinets available. ______ is the use of outside suppliers to help the contractor build homes for customers. A. Outsourcing B. Importing C. Bartering D. Exporting E. Resourcing

A. Outsourcing

The McCloskeys developed an ultra-filtration process for a new milk drink. Based on the case and VRIO framework, which of the following is surely true? A. The McCloskeys have at least a temporary competitive advantage. B. The McCloskeys are about equally competitive with competitors. C. The McCloskeys have a sustained competitive advantage. D. The new product does not build on the McCloskeys's mission statement. E. Fair Life LLC is organized to exploit their new capability.

A. The McCloskeys have at least a temporary competitive advantage.

IKEA's product development process is based on extensive market research. Which step of the strategic-management process is most closely related to this development process? A. assess the current reality B. formulate the grand strategy C. implement the strategy D. maintain strategic control E. establish the mission, vision, and values statements

A. assess the current reality

Uber does not own its fleet of cars; rather, it relies on contracted drivers. These drivers represent which competitive force in Uber's environment? A. bargaining power of suppliers B. bargaining power of buyers C. threat of substitute products or services D. rivalry among competitors E. threat of new entrants

A. bargaining power of suppliers

How will you close skill gaps between what you feel you possess and what employers perceive you have? A. be motivated to learn B. share diverse experiences C. have a high level of energy and an orientation toward action D. believe in personal control of destiny E. seek high levels of achievement

A. be motivated to learn

Assume Uber planned to cut losses by 40 percent by withdrawing from countries like China and Singapore. A year has now passed since they have withdrawn, and the company determines that losses have actually increased. Which step in the planning/control cycle does Uber need to now execute? A. control the direction B. make the goal C. carry out the plan D. define objectives E. make the plan

A. control the direction

If a company is using a ______ pay structure, then more efficient workers earn higher wages. A. differential rate B. sliding wage C. scaled rate D. biased wage E. merited pay

A. differential rate

In Mexico people tend to rely on situational cues, such as a handshake, for meaning when communicating with others. If a manager from one of Costco's U.S. locations is traveling to one of Mexico's warehouses, she should be aware that Mexico has a(n) _______ culture. A. high-context B. low-context C. individualistic D. collectivistic E. mid-context

A. high-context

Based on Carroll's social responsibility pyramid, Uber's "Greyball" may not have made it past which of the following stages? A. making a profit B. being ethical in your practices C. being a good global corporate citizen D. obeying the law E. compensating fairly

A. making a profit

Fair Oaks Farms' manure management, specifically the use of cow manure to power their facilities and fuel their milk tankers, is most closely related to which managerial challenge? A. managing for sustainability B. managing for animal welfare C. managing for information technology D. managing for diversity E. managing for globalization

A. managing for sustainability

Frank is a CPA who became interested in helping adults in some of the poorer neighborhoods file their taxes. He plans to start a tax filing center in a low-income area to help residents file their taxes at no cost. Frank's center is an example of a(n) A. nonprofit organization. B. for-profit organization. C. association. D. coop. E. union.

A. nonprofit organization.

The 21-day process used to break down the manure into "compost-like material while releasing biogas, which is captured in pipes" is part of a(n) A. operating plan. B. strategic plan. C. action plan. D. master plan. E. common plan.

A. operating plan.

Based on what you know about the types of plans, self-driving cars would be an example of which of the following? A. program B. policy C. procedure D. project E. rule

A. program

Former CEO Kalanick routinely allowing drivers to begin work illegally when Uber expanded overseas represents what type of reaction to a decision situation? A. relaxed avoidance B. panic C. rational D. evidence-based E. relaxed change

A. relaxed avoidance

The ___________ bias promotes the use of stereotypes. A. representative B. escallation of commitment C. framing D. availability E. hindsight

A. representative

Hayley, a restaurant manager, has been observing and analyzing the work process of the cooks, servers, and bussers because she would like to increase their productivity. Hayley is engaging in ____ management. A. scientific B. quantitative C. administrative D. systems E. contingency

A. scientific

The phenomenon that more people are willing to pay premium prices for food grown without pesticides or synthetic fertilizers is a ________ force. A. sociocultural B. demographic C. political-legal D. technological E. international

A. sociocultural

Mike and Sue McCloskey are examples of A. top managers. B. functional managers. C. nonmanagerial employees. D. first-line managers. E. middle managers.

A. top managers.

Assume Amy's wants to do the greatest good for the greatest number of people. Based on this, which approach to resolving ethical dilemmas would the company most likely employ? A. utilitarian B. justice C. individual D. universal E. moral-rights

A. utilitarian

A(n) ________ is the declaration that expresses what the organization should become and where it wants to go strategically. A. vision statement B. objectives statement C. code of ethics D. management code E. mission statement

A. vision statement

________ is a control mechanism for making sure the right people do the right things at the right time. A. An organization chart B. A hierarchy of authority C. A contingency design D. A matrix structure E. A division of labor

B. A hierarchy of authority

Uber reviews and evaluates each ride, which can be in the millions each day, in order to set surge pricing. This concept is most closely related to which of the following? A. nonrational decision making B. big data analytics C. bounded rationality D. intuition E. satisficing

B. big data analytics

A multinational corporation is a(n) A. corporation with a globally diverse workforce. B. business firm with operations in several countries. C. organization with a globally diverse culture. D. nonprofit global company. E. organization that helps businesses set up global companies.

B. business firm with operations in several countries.

CEO Khosrowshahi spent his first two months as CEO meeting with Uber teams and employees across the globe to seek their input on what the company needed to repair itself and move forward. Assume Khosrowshahi did not decide on what management style to utilize until after these observations. In this case, he would be utilizing the ______ viewpoint. A. systems B. contingent C. quantitative D. behavioral E. classical

B. contingent

The case mentions that Uber's valuation has recently dropped. If a manager at Uber is tracking the company's performance and comparing it to goals, this person would be performing the ______ managerial function. A. planning B. controlling C. leading D. organizing E. auditing

B. controlling

Jameson's Furniture in Tennessee produces high-quality furniture and ships its products to customers in over 40 countries. Jameson's Furniture is ______ its products. A. bartering B. exporting C. countermarketing D. dumping E. importing

B. exporting

Uber's initial public offering (IPO) ambitions represent a ________ strategy, and its interest in developing Uber Air can be considered a(n) ________ strategy. A. growth; stability B. growth; innovation C. defensive; growth D. defensive; stability E. stability; innovation

B. growth; innovation

When Fair Oaks' management shares its vision with its 300-plus employees and seeks feedback, it is able to influence employees and gain buy-in from them. Which managerial function is the company performing? A. organizing B. leading C. controlling D. planning E. motivating

B. leading

As part of the original "Renew Blue" strategy, Best Buy increased its investment in stores and redesigned them to be roomier, airier and staffed with well-trained employees. This is an example of sound ______________ practices. A. quality control B. operations management C. administrative management D. evidence-based management E. human relations

B. operations management

Amy, the daughter of Amy's owners, believes that happiness does not come from money...she says it comes from meaning and purpose. Based on this statement, which element of the triple bottom line would Amy be least concerned with? A. planet B. profit C. place D. product E. people

B. profit

A hierarchy culture has an internal focus; it values ____ over flexibility. A. authority B. stability and control C. external stakeholders d. community standards E. risk taking

B. stability and control

Based on the BCG matrix, IKEA would most likely be labeled a A. hit. B. star. C. dog. D. question mark. E. grower.

B. star.

In the case, John Dudovskiy of Research Methodology recommends that Uber exhibit what type of span of control? A. divisional B. wide C. narrow D. modular E. functional

B. wide

Which of the following is not true about group decision-making? A. Groups take longer to make decisions. B. The larger the group, the lower the quality of the decision. C. An added benefit of group decision-making is groupthink. D. Groups are more confident about their choices than individuals are. E. People who aren't familiar with one another tend to make better decisions when the members have common knowledge.

C. An added benefit of group decision-making is groupthink.

_______ is the trend of the world economy toward becoming a more interdependent system. A. Expropriation B. Geocentricity C. Globalization D. Polycentricity E. Diversity

C. Globalization

Lottery organizers heavily promote the jackpot winners so that people are continually hearing about those who've won big. By contrast, players hear almost nothing about the vast majority of people who haven't won a single dollar. This tactic draws upon which type of bias? A. framing bias B. representative bias C. availability bias D. confirmation bias E. overconfidence bias

C. availability bias

Based on the case, Khosrowshahi has more of a ________ decision-making style whereas Kalanick was more ________. A. directive; analytical B. analytical; behavioral C. behavioral; directive D. behavioral; analytical E. directive; behavioral

C. behavioral; directive

If Uber compares its performance in Canada to the performance of Lyft, it would be A. trend analyzing. B. contingency planning. C. benchmarking. D. forecasting. E. environmental scanning.

C. benchmarking.

Best Buy uses sales-performance data to develop methods for improving in-store employee performance. This is an example of following the _______________ viewpoint of management. A. classical B. systems C. contingency D. quality-management E. behavioral

C. contingency

The shared set of beliefs, values, knowledge, and patterns of behavior common to its people is a nation's A. ethical set. B. synergy. C. culture. D. alliances. E. laws.

C. culture.

CEO Hubert Joly implemented employee empowerment at all organizational levels. He believed that this management practice enabled employees to make better and timelier decisions at the point of customer interactions. Which of the following concepts best supports Joly's decision? A. quality control B. administrative management C. human relations movement D. operations management E. management science

C. human relations movement

If Costco plans on continued success in Japan, whose citizens tend to take pride in being members of their family, circle of close friends, and their work organization, the warehouse club should focus on the _______________ cultural dimension. A. gender egalitarianism B. institutional collectivism C. in-group collectivism D. assertiveness E. humane orientation

C. in-group collectivism

Which of the following should be the first consideration when facing an ethical dilemma? A. management's initial instincts B. ethics involved with taking the action C. legality of action D. ethics involved with not taking the action E. maximization of shareholder value

C. legality of action

Based on the competing values framework, it would seem that Uber had a ________ culture under Kalanick, but now has more of a ________ culture with Khosrowshahi at the helm. A. hierarchy; clan B. adhocracy; market C. market; clan D. clan; market E. hierarchy; adhocracy

C. market; clan

A(n) ________ is a standing plan that outlines the general response to a designated problem or situation. A. order B. norm statement C. policy D. ethical value E. standing rule

C. policy

An organization should adopt planning and strategic management to A. decrease costs and increase synergy. B. keep employees happy, encourage new ideas, and decrease costs. C. provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage. D. develop MBO, encourage new ideas, and increase profits. E. provide encourage new ideas and increase organization diversity.

C. provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage.

Uber's high growth rate and high market share in the United States would categorize it as a ________ on the BCG matrix. A. dog B. winner C. star D. cash cow E. question mark

C. star

Which of the following is an example of Uber's organizational structure possibly supporting its culture? A. Khosrowshahi soliciting input from employees rather than just directing new cultural norms B. Kalanick's display of Uber's 14 values at the company's San Francisco headquarters C. the weakening of Kalanick's authority by the board of directors D. the transformation of Kalanick's 14 values to Khosrowshahi's 8 cultural norms E. the booking fee Uber charges in addition to its 25 percent commission rate

C. the weakening of Kalanick's authority by the board of directors

As part of the original "Renew Blue" strategy, Best Buy committed to increasing its ability to ship products directly from stores to its online customers. Based on Figure 2.4, this reflects which part of a system? A. logistics B. outputs C. transformational processes D. feedback E. inputs

C. transformational processes

Why should you encourage Dionne to use groups to make decisions? A. Because groups use groupthink B. Because groups seek decisions that are good enough C. Because groups cut down on the variety of ideas D. Because groups have a greater pool of knowledge E. Because groups subsume the primary goal with secondary goals

D. Because groups have a greater pool of knowledge

Under former CEO Kalanick, when Uber entered into a new market, it often disregarded local laws and allowed its drivers to begin work illegally. Which step in the ethical decision tree was Uber not considering? A. Does it maximize employee value? B. Does it maximize shareholder value? C. Is it ethical to take the action? D. Is the proposed action legal? E. Would it be unethical not to take the action?

D. Is the proposed action legal?

One of Uber's values under CEO Khosrowshahi is that all employees, regardless of their background, need to feel welcomed, to be open to different approaches, and to come together to execute the best ideas. This is most closely related to which of the following? A. systems viewpoint B. bureaucracy C. Theory X management D. Total Quality Management E. management science

D. Total Quality Management

A goal is... A. a type of mission statement. B. a type of plan. C. a norm that can result in organization synergy. D. a specific commitment to achieve a measurable result within a stated period of time. E. the purpose of the organization.

D. a specific commitment to achieve a measurable result within a stated period of time.

To help with hiring decisions during peak seasons and holidays, Cards for All Seasons uses time-series forecasts, like sales from last Valentine's Day and Christmas, to predict future sales based on patterns of historical data. Cards for All Seasons is making use of A. a seasonal trend. B. a trend decision. C. diagnosis. D. analytics. E. a logical system.

D. analytics.

When applying for jobs, job seekers often focus on a desired salary while ignoring other aspects of the job offer such as benefits, fit with the job, and working environment. In many cases, the salary may be good, but there are other, negative features of the job not being considered. This is an example of A. representativeness bias. B. hindsight bias. C. framing bias. D. anchoring bias. E. overconfidence bias.

D. anchoring bias.

IKEA is strategically positioning itself based on which of the following customer needs? A. ambiguous needs, many customers B. few needs, few customers C. broad needs, few customers D. broad needs, many customers E. few needs, many customers

D. broad needs, many customers

Uber has created new product lines aimed at growing revenue, such as establishing Uber Air, which would function as an air taxi. This strategy is known as A. diversification. B. vertical integration. C. single-product. D. cost-focus. E. merger.

D. cost-focus.

Managers who believe that their native country, culture, language, and behavior are superior to all others are ____ managers. A. maquiladoras B. polycentric C. diverse D. ethnocentric E. geocentric

D. ethnocentric

Costco has started its operations in China through an e-commerce partnership with Alibaba. Which method of expanding internationally does this exhibit? A. global outsourcing B. wholly-owned subsidiaries C. licensing and franchising D. joint ventures E. importing, exporting, and countertrading

D. joint ventures

Omar works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through planning, organizing, leading, and controlling company resources. Omar is ___ A. developing synergy. B. delegating. C. entrepreneuring. D. managing. E. vision planning.

D. managing.

Sophie, a shift manager in a shoe store, has 40 employees on her shift that she directly supervises. The 40 workers who report directly to Sophie represent her A. unity of command. B. hierarchy of authority. C. span of direction. D. span of control. E. division of labor.

D. span of control.

_______ is the arrangement of having discrete parts of a task done by different people. A. An organization chart B. A common purpose C. A contingency approach D. An employee structure E. A division of labor

E. A division of labor

When analyzing the ethical implications of a proposed action, one should weigh the effects of the decision on shareholders versus the effect on A. customers. B. employees. C. community. D. environment. E. All of these choices are correct.

E. All of these choices are correct.

Based on the case, which of the following is a driver of Uber's organizational culture? A. contracted drivers ("Partners") B. competitors C. board of directors D. human resources E. CEO Khosrowshahi

E. CEO Khosrowshahi

Uber stores every single ride it has provided and uses this data for other purposes, including surge pricing, driver notices, and so on. To which of the seven challenges to being an exceptional manager is this activity most closely related? A. Challenge 3: Managing for diversity B. Challenge 4: Managing for globalization C. Challenge 7: Managing for happiness and meaning D. Challenge 6: Managing for sustainability E. Challenge 2: Managing for information technology

E. Challenge 2: Managing for information technology

______ is the notion that corporations are expected to go above and beyond following the law and making a profit to help society. A. Corporate morality B. Green business practice C. Societal responsibility D. Corporate sustainability E. Corporate social responsibility

E. Corporate social responsibility

________ is setting goals and deciding how to achieve them A. Focusing B. Organizing C. Regulating D. Controlling E. Planning

E. Planning

Pietro, the county sheriff, told his deputies to "Think big and endeavor to be more detailed and caring while at work and in setting goals. Therefore, when you give me your goals, I want them to be specific, measurable, attainable, results-oriented, and have target dates." Pietro was asking for his deputies' A. focused heart statements. B. policies. C. strategic goals. D. synergy objectives. E. SMART goals.

E. SMART goals.

Henry is proposing to change the manufacturing process at his organization's cement production plant in order to reduce carbon emissions. This change will cause additional expenses for the organization but will make the plant more environmentally friendly. Which of the following questions is Henry analyzing? A. Is the proposed action legal? B. Would it be ethical to take the action? C. Would the employee support the action? D. Does the proposed action maximize shareholder value? E. Would it be ethical not to take action?

E. Would it be ethical not to take action?

Gamma Manufacturing employs some of the top professionals in its field, and because of their skills and experience, Gamma is highly efficient and outperforms its competitors. Gamma Manufacturing has a(n) ____ over its competition. A. quality mark B. effectiveness advantage C. synergistic advantage D. collaborative advantage E. competitive advantage

E. competitive advantage

Imagine you are part of Uber's senior leadership team and are eager to see the company expand to a particular country. If you were to only pull data from sources you believed would support your feeling that demand in the country is high, you would be exhibiting the ________ bias. A. hindsight B. escalation of commitment C. sunk-cost D. anchoring and adjustment E. confirmation

E. confirmation

Which of Porter's four competitive strategies is IKEA primarily embracing? A. focused-differentiation B. differentiation C. cost-focus D. defensive E. cost-leadership

E. cost-leadership

Based on Carroll's global corporate social responsibility pyramid, Amy's is fulfilling which of its responsibilities? A. economic and ethical B. legal and ethical C. economic D. ethical and philanthropic E. economic, legal, ethical, philanthropic

E. economic, legal, ethical, philanthropic

The United States has prohibited the import of products from Iran due to the political situation in that nation. This complete ban is an example of a(n) A. import limit. B. sanction. C. tariff. D. protective accord. E. embargo.

E. embargo.

Former-CEO Kalanick's question of "What kind of brand do we want to be?" represents which stage of the strategic management process? A. implement the strategy B. assess the current reality C. formulate the grand strategy and strategic, tactical, and operational plans D. maintain strategic control E. establish the mission and vision and values

E. establish the mission and vision and values

Upon taking over the company, CEO Khosrowshahi said, "Rather than ditching everything, I'm focused on preserving what works while quickly changing what doesn't." What type of management is this most closely related to? A. behavioral-based B. systems-based C. management science D. administrative-based E. evidence-based

E. evidence-based

Omar, who works as a waiter in a top restaurant in Manhattan, likes the fast pace of his work and the fact that things are always changing there. Omar can be said to A. have a large need for structure. B. have a low tolerance for ambiguity. C. have a high task orientation. D. rank high on the stress index. E. have a high tolerance for ambiguity.

E. have a high tolerance for ambiguity.

Quilt and Dye Fabrics buys products for its customers from over 30 countries. Quilt and Dye Fabrics is an example of a company that A. exports. B. outsources. C. offshores. D. barters. E. imports.

E. imports.

The board of directors, employees, and owners are the organization's A. external stakeholders. B. advisory group. C. community stakeholders. D. shareholders. E. internal stakeholders.

E. internal stakeholders.

Uber's employees are part of ______, while government regulators are part of ______. A. task environment; general environment B. general environment; internal stakeholders C. general environment; task environment D. task environment; internal stakeholders E. internal stakeholders; task environment

E. internal stakeholders; task environment

Mike and Sue McCloskey wanted to change the dairy farming industry itself. They did this by opening up their farms to the public to educate people on the farming industry. To which managerial challenge is this most closely related? A. managing for globalization B. managing for diversity C. managing for employee needs D. managing for information technology E. managing for competitive advantage

E. managing for competitive advantage

The celebration of key accomplishments by chest bumps and the push-up contests reflected what level of organizational culture at Uber during former CEO Kalanick's tenure? A. enacted values B. hierarchy C. espoused values D. basic assumptions E. observable artifacts

E. observable artifacts

A company dress code and award ceremonies would be part of A. ethical codes. B. a mission statement. C. organization benefits. D. core values. E. observable artifacts.

E. observable artifacts.

Evan and Sia Steele are wealthy entrepreneurs who are very interested in helping children who have been abused. What philosophy would they choose to implement? A. corporate governance B. corporate sustainability C. mentoring D. corporate ethics E. philanthropy

E. philanthropy

The setting of Fair Oaks Farms' mission, vision, and goals is an example of which managerial function? A. leading B. organizing C. controlling D. structuring E. planning

E. planning

Assume Costco is opening a location in Kenya and believes that native Kenyan managers best understand native personnel and practices, so the home office leaves them alone. What type of management would Costco be practicing? A. parochial B. geocentric C. regional D. ethnocentric E. polycentric

E. polycentric

The chain of command is also known as the A. movement chart. B. horizontal specialization. C. analytics tool. D. organizational picture. E. vertical hierarchy.

E. vertical hierarchy.

TRUE OR FALSE: In an organic organization, tasks and rules are clearly specified.

False

TRUE or FALSE: The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times.

False

TRUE or FALSE: Mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical.

False From his observations and other research, Mintzberg concluded that managers play three broad types of roles (or organized sets of behavior): interpersonal, informational, and decisional.

TRUE OR FALSE: The term "learning organization" is used to describe organizations in the educational and nonprofit industries.

False Learning organizations, says Massachusetts Institute of Technology professor Peter Senge, who coined the term, are places "where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together.

TRUE OR FALSE: Max Weber believed that a company that is a bureaucracy never achieves a competitive advantage because it is inefficient and is plagued with management problems.

False Max Weber believed that a bureaucracy was a rational, efficient, ideal organization based on principles of logic.

TRUE or FALSE: Efficiency and effectiveness mean using resources—people, money, raw materials, and the like—wisely and cost-effectively.

False To be efficient means to use resources like people, money, and raw materials wisely and cost-effectively. To be effective means to achieve results, to make the right decisions, and to successfully carry them out so they achieve the organization's goals.

TRUE OR FALSE: A corporate culture is a defined set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

True

TRUE OR FALSE: Organizations cannot easily control the macro environment, which includes sociocultural, demographic, political-legal, and international forces.

True

TRUE OR FALSE: The human relations movement proposed that better human relations could increase worker productivity.

True

TRUE OR FALSE: The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance.

True

TRUE OR FALSE: Theory X managers are pessimistic and have a negative view of employees. This type of manager believes that workers are irresponsible, lack ambition, and hate work.

True

TRUE or FALSE: Ricardo is a district manager who oversees several store managers in a national chain of department stores. Ricardo reports directly to the vice president of stores and marketing, a member of top management. Ricardo is a middle manager.

True

TRUE or FALSE: Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization.

True