Mid Term MGMT (4-6)

Which of the following is a drawback of planning?

A potential pitfall of planning is the detachment of planners

What type of planning would be used to create the festivities necessary to celebrate the 100 year anniversary of a furniture manufacturing company?

A single use plan

_____ is defined as the purchase of a company by another company.

Acquisition

Organizations can achieve a _____ by using their resources to provide greater value for customers than competitors can.

Competitive advantage

_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.

Diversification

____ responsibility means making a profit by producing a product valued by society.

Economic

Which of the following terms describes the degree of concern people have about an ethical issue?

Ethical intensity

According to the USSCGO, which of the following is a method used to determine the level of an offense?

Examining the loss incurred by the victims

A strategic objective is a statement of a company's purpose or reason for existing.

False

An analysis of an organization's external environment begins with an assessment of the company's distinctive competencies and core capabilities.

False

An organization's purpose must regularly change to adapt to changes in the environment over time.

False

Budgeting is a form of qualitative planning.

False

Companies that succeed are often constantly re-examining strategies or competitive practices that have been successful in the past in order to ascertain their probable future success.

False

Developing a purpose statement is the sole responsibility of middle management.

False

Industry level strategy is a corporate strategy that addresses the question "How should we compete against a particular firm in our industry?"

False

Management by objectives is a two step process

False

Proximity of effect is the time between an act and the consequences the act produces.

False

Standing plans deal with unique, one time only events.

False

The purpose of action plans is to leave commitments open by maintaining a cushion of resources, such as extra time, people, money, or production capacity, that can be used to address and adapt to unanticipated changes, problems, or opportunities.

False

The shareholder model holds that management's most important responsibility is the firm's long term survival.

False

When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk taking, strategy.

False

Which of the following is an accepted method for tracking progress toward goal achievement?

Gathering and providing performance feedback.

Which of the following is an example of a common approach to corporate level strategy?

Grand strategies

Which of the following is a pitfall of planning?

It can impede change and slow needed adaptation.

According to ____, the only social responsibility that organizations have is to satisfy their owners, that is, company shareholders.

Milton Friedman

A(n) _____ is a test that estimates employee honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviors.

Overt Integrity Test

_____ integrity test indirectly estimate employee honesty by measuring psychological traits.

Personality based

____ is choosing a goal and developing a method or strategy to achieve a goal.

Planning

_____ strategy is a corporate level strategy that minimizes risk by diversifying investment among various businesses or product lines.

Portfolio

_____ are the assets, capabilities, processes....

Resources

_____ is a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy.

Strategic dissonance

______ plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission

Tactical

Which of the following is an example of core capabilities of an organization?

The organization's skill in maintaing large inventories effectively.

Which of the following is an objective of ethics training?

To achieve credibility with employees

A competitive advantage becomes a sustainable competitive advantage when other companies cannot duplicate the value a firm is providing to customers.

True

Companies often choose a stability strategy when their external environment doesn't change much or after they have struggled whit periods of explosive growth.

True

Concentration of effect is how much an act affects the average person.

True

In order to ensure that a company's ethics code will encourage ethical decision making and behavior, companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company. The second is to develop practical ethical standards and procedures specific to the company's line of business.

True

Planning works best when the goals and action plans at the bottom and middle of the organization supports the goals and action plans at the top of the organization.

True

Portfolio strategy is a corporate level strategy that minimizes risk by diversifying investment among various businesses or product lines.

True

Probability of effect is the chance that something will happen and then result in harm to others.

True

Stakeholders are people or groups with an interest in a company's actions.

True

Tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two years.

True

The concept of magnitude of consequences is the total harm or benefit derived from an ethical decision.

True

The first step in establishing an ethical climate in a company is for managers to act ethically themselves.

True

The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible

True

The threat of substitute products or services is a measure of the ease with which customers can find substitutes for an industry's goods or services.

True

The three kinds of operational plans are single use plans and budgets

True

The three kinds of standing plans are policies, procedures, and rules and regulations

True

The three positioning strategies are cost leadership, differentiation, and focus.

True

The three steps of the strategy making process are assess the need for strategic change, conduct a situational analysis, and choose the strategic alternatives.

True

Under the U.S Sentencing Commission Guidelines, a culpability score is a way of assigning blame to a company.

True

Under the U.S Sentencing Commission Guidelines, companies without compliance programs can pay fines many times larger than companies with established compliance programs.

True

According to the USSCGO, which of the following steps should be followed right after the standards and procedures for the compliance program have been established?

Upper level managers should be assigned to be in charge of the program.

Which of the following statements about ethics is true?

When people believe their work environment is ethical, they are six times more likely to stay with that company

Which of the following is an advantage of planning?

it encourages people to work harder for extended periods

Which of the following is true about planning?

it helps managers create task strategies

According to the SMART guidelines, goals should be

measurable

Valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are _____

nonsubstitutable

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

official approval of a company's ethics code by government regulators.

The basic purpose of ____ planning is to leave commitments open by maintaining slack resources.

options based

A (n) ____ is a brief, two sentence statement of a company's purpose for existing.

organizational mission

The two general categories of stakeholders are ___ stakeholders.

primary and secondary

A _____ resource is a resource that is not controlled or possessed by many competing firms

rare

Top management is responsible for developing

strategic plans

Which of the following is NOT one of the characteristics of SMART goals?

synergistic

Management by objectives is a management technique often used to develop and carry out _____.

tactical plans

The strategy making process begins with:

the assessment of the need for strategic change.

The three stages of moral development identified by Kohlberg are

the pre conventional level, the conventional level, and the post conventional level

A person who reports others' violations to management or legal authorities is termed a(n) ____.

whistleblower

In the basic model of ethical decision making, after the problem has been identified, the next step is to ____.

identify the constituents

A(n) _____ resource is a resource that is impossible or extremely costly or difficult for other firms to duplicate.

imperfectly imitable

The last step in the basic model of ethical decision making is to _____.

act on the situation

The most popular approach to increasing goal commitment is

encouraging workers' participation in goal setting

In the context of the strategic reference point theory, the _____ strategy aims to protect an existing competitive advantage.

risk avoiding

A _____ is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.

situational analysis

According to the ____ model, management's most important responsibility is long term survival

stakeholder