SM 131 Final Exam (Fall 2020)
Corportation
- Ability to draw capital from many investors - Minimal personal risk (the amount invested)
The Fundamental Fact of Strategy
- Both external environments & internal environments affect profits
What is Strategy?
- Brain that coordinates all firm functions. - Strategy helps coordinate all internal firm activities by giving guidelines to each function within the firm. - Strategy is a broad theme that drives organizational choices & policies
Make a decision and test it
- Considering all the approaches, which option best addresses the situation?
Recognize an ethical issue
- Could this decision or situation damage someone or some group? - Does this decision involve a choice between a good and a bad alternative? - Does this issue involve more than simply legal considerations? If so, then in what way?
Act and Reflect on the Outcome
- How can be decision be implemented with the greatest care and attention to the concerns of all stakeholders? - How did my decision turn out and what did I learn from this situation?
Sole Proprietorship
- Limited resources of one person - High person risk (all personal assets exposed)
Goal of strategy
- Maximize value creation & capture. - Develop & implement approaches to ensure that organizations achieve the highest possible rate of success (profitability), particularly relative to rivals
Partnership
- Pulled resources across 2 or more partners - High person risk, but spread across partners
Get the facts
- What are the relevant facts of the situation? - Do I have sufficient information to make a decision? - Which individuals and/or groups have an important stake in the outcome? - Have I consulted all relevant persons and groups?
Evaluate alternative actions
- Which option will produce the most good and do the least harm? (the utilitarian approach) - Which option best respects the rights of all stakeholders? (the rights approach) - Which option treats people equally or proportionately? (the fairness approach) - Which option best serves the community as a whole, and not just some members? (the common good approach) - Which option leads me to act as the sort of person I want to be? (the virtues approach)
If there is no ethical framework...
-Desires, moods, unconscious mind, group dynamics, social norms take over -Decisions become expedient & reactive (System 1), instead of deliberate & proactive (System 2) -The decisions you make are not based on the true you -Big Four may take over: Greed, Speed, Laziness and Haziness
How to find the right organization for you?
-Know your self -Know your organization -Make choices that: reflect what is good and right, you are proud off, are yours -Work for the right company (value match)
4 Standards of Ethical Framework
-Stable -Make Sense -Be Practical..can be applied in practice and with consistency -Be Authentic..ring true
What are ethics?
-Unwritten rules we have developed for our interactions with one another. -Standards of conduct accepted that govern society. -Virtues in action: honesty, fairness, justice. -How you behave when no one is looking.
What are types of stakes?
1. An Interest 2. A Right - Legal right; Moral right 3. Ownership
Three imperatives for social programs
1. Protect & support communities 2. Protect and renew the environment 3. Sustainable practices for business and planet's future
Most Basic Analytic Tools (for strategy)
1. SWOT 2. 5 Forces 3. Competitive Positioning
3 basic forms of business
1. Sole Proprietorship 2. Partnership 3. Corporation
What is Strategy? What are its key features?
1. goal = max value create & capture 2. strategy = brains of business 3. rivals (and others) respond 4. both external & internal environment 5. strategy requires tradeoffs
5 steps making ethical decision
1. recognize an ethical issue 2. get the facts 3. evaluate alternative actions 4. make a decision and test it 5. act and reflect on the outcome
System 2
5%
System 1
95%
Balance Sheet
A Picture of Where the Company Is. Assets (what you own) - Liabilities (what you owe) = Equity (what you are "worth"). if: A - L = E then: A = L + E (At any single point in time)
Shanice's hair salon is one of the best salons in town. However, Shanice is the only person working in the salon and the process for getting a haircut involves shampooing, cutting and then styling. If it takes Shanice 10 minutes to shampoo, 15 minutes to cut and 20 minutes to style hair, how many haircuts can Shanice do in one 8 hour-shift (assuming that she works continuously, and stops after 8 hours)? A. 10 haircuts B. 11 haircuts C. 24 haircuts D. 32 haircuts E. 48 haircuts
A. 10 haircuts
A factory produces 20 units of toy per hour and wants 360 units in one day. What is its capacity utilization? A. 75% B. 18% C. 5.56% D. 133%
A. 75%
The SDG compass is: A. A guide to help companies measure and manage their contribution to SDG's. B. A system that "points" companies to global opportunities. C. A system that brings companies together. D. A guide for compliance to UN regulations. E. A system of do's and don't for companies to adhere to.
A. A guide to help companies measure and manage their contribution to SDG's.
Which of the following is not a common mistake in Talent analytics? A. Accepting less than 100% accuracy on data collected B. Keeping a metric live when it has no clear business reason for being C. Failing to monitor changes in organizational priorities. D. Using analytics to hire lower-level people but not when assessing senior level E. Relying on just a few metrics to evaluate employee performance
A. Accepting less than 100% accuracy on data collected
GVV pillars 4-6 (Normalization, Self Knowledge & Alignment, and Voice) are most closely aligned with which of the 3 A's of Business Ethics process: A. Action B. Activity C. Analysis D. Apathy E. Awareness
A. Action
The ___________ product is the product layer composed of elements such as Brand, Quality, Style, Packaging and Design. A. Actual B. Finished C. Visual D. Augmented E. Core
A. Actual
When examining Organizational Culture, pictures on walls, the office décor, and formal or informal dress code within an office are all examples of which element: A. Artifacts B. Unconscious beliefs C. Conscious beliefs D. Implicit mental models E. Shared assumptions
A. Artifacts
Packaging must perform the following functions, except: A. Be made of recyclable material B. Attract the buyer's attention C. Protect the goods inside D. Describe and give information E. Explain the benefits of the good inside
A. Be made of recyclable material
When they are different from your peers, an employee will: characteristic of the culture: A. Be more creative B. Be drawing from a similar knowledge base C. Have less potential for conflict D. Fit in faster E. Be more satisfied
A. Be more creative
What is it called when even if we try to behave ethically, it is difficult to do so based on many reasons? A. Bounded ethicality B. CSR C. Blind Spots D. Ethical fading E. Greenwashing
A. Bounded ethicality
What is competitive advantage?(multiple answers) A. Cost leadership B. Education C. Lack of innovation D. Differentiation
A. Cost leadership D. Differentiation
CSR can achieve all of the following, EXCEPT: A. Decrease customer retention B. Improve results by lowering operational costs C. Attract, retain, and maintain a satisfied workforce D. Enhance relationships with suppliers E. Provide access to investment and funding opportunities
A. Decrease customer retention
What is it called when we no longer see the ethical implications of our business decisions? A. Ethical fading B. Blind Spots C. Bounded ethicality D. Greenwashing E. CSR
A. Ethical fading
If there are always customers in line and all orders are processed in 20 seconds, how often does a customer exit the system? A. 20 secs B. 25 secs C. 15 secs D. 27 secs
A. Every 20 seconds (cycle time)
From the perspective of an employee, what is a benefits of a strong organizational culture: A. Feel comfortable enough to thrive in the organization B. The ability to take advantage of educational opportunities C. Have strong mentorship programs D. Knowledge that there are promotional opportunities E. The organization has a sense of control over how employees interact
A. Feel comfortable enough to thrive in the organization
According to Drucker, which of the following is most responsible for the sacrifice of long-range wealth-producing capacity to short-term gains? A. Hostile takeovers B. National culture C. Labor unions D. Lack of common goals and shared values E. Innovation
A. Hostile takeovers
According to Porter's economic model of industry profit, which industry is an example of "perfect competition"? A. House cleaning services B. Airlines industry C. Supermarket retailing D. Mobile telecom industry E. IT consultancy
A. House cleaning services
Drucker believes that the business enterprise only has two basic functions. They are: A. Innovation and marketing B. Finance and innovation C. Innovation and production D. Research and development, and production E. Production and marketing
A. Innovation and marketing
Freeman told a story about how his son asked him, "which is more important, your family or your job?" What was he illustrating with this story? A. It's important to accept a challenge to our values as important in what we do B. He should get involved more with his son's activities C. How he can compromise with his son and go on a trip and be involved in family activities? D. It's impossible to balance the interests of the stakeholders E. It's important to spend time with his son playing basketball
A. It's important to accept a challenge to our values as important in what we do
Ethics are all the followings, EXCEPT: A. Legal guidelines of acceptable conduct B. How you behave when nobody is looking C. Virtues in action such as honesty, fairness, and justice D. Unwritten rules we have developed for our interactions with one another E. Standards of conduct generally accepted that govern society
A. Legal guidelines of acceptable conduct
To encourage organ donation in some European nations, authorities have decided to enroll citizens in the system automatically, and then let them opt out if they wish. The program increased the proportion of people agreeing to be donors from less than 30% to more than 80%. This is example of what psychological effect: A. Nudge effect B. Thinking slow effect C. Opt-in effect D. Risk aversion E. Trade-off effect
A. Nudge effect
Tiffany cheated on her first biology exam by getting a copy of last semester's exam from her roommate who had taken the class. Tiffany received an A on the first exam. Judging from the outcome of her first exam, Tiffany decided to ask her roommate for copies of the other two exams. In terms of the 20 cognitive biases, this is an example of: A. Outcome Bias B. Recency C. Survivorship D. Salience E. Anchoring
A. Outcome Bias
What is an advantage of operating a sole proprietorship?(multiple answers): A. Owner has direct control B. The owner is liable for anything that goes wrong C. Easy to set up D. Generates the most revenues
A. Owner has direct control C. Easy to set up
Campbell Soup has recently introduced "Go Soup". These soups are targeted at the millennial generation (18-29). They are sold in a microwavable pouch and are positioned as a gourmet soup, with fresh ingredients and exotic flavors such as Moroccan Style Chicken with Chick Peas. The decision to sell the soups in a microwavable pouch is related to: A. Product B. Price C. Place D. Promotion
A. Product
Marish Manwani (Unilever) advocated for a program that did what? A. Provided soap for hand-washing B. Free glasses and eye exams for people in India C. Low cost incubators for babies in developing countries D. A low-cost SARS test E. Provided clean water
A. Provided soap for hand-washing
Financial accountants do the following, EXCEPT: A. Review systems, process, controls, and the numbers B. Assess risks and benefits of investments C. Prepare financial statements D. Analyze financial statements E. Analyze new opportunities for the business
A. Review systems, process, controls, and the numbers
In the Netflix documentary called "Tiger King"; we are introduced to Joe Exotic, a zoo owner who breeds tigers and lions for show in order to make a profit. We are also introduced to Carole Baskin, a woman who wants to save the tigers and lions from captivity through her non-profit "Big Cat Rescue ". "Big Cat Rescue" is what type of stakeholder? A. Secondary Non-Social Stakeholder B. Primary Non-Social Stakeholder C. Secondary Social Stakeholder D. Primary Social Stakeholder
A. Secondary Non-Social Stakeholder
Which of the following is NOT one of the seven Pillars of GVV: A. Self-Awareness B. Reasons & Rationalization C. Purpose D. Choice E. Voice
A. Self-Awareness
Gabriel was driving on a highway when all of the sudden, he noticed a car moving into his lane. Gabriel quickly swerved into the lane to his left to avoid the collision. Lucky for him, he avoided a terrible collision. We can say that Gabriel engaged in: A. System 1 Thinking B. Effortful Thinking C. Critical Thinking D. Deliberative Thinking E. System 2 Thinking
A. System 1 Thinking
Which of the following is a symptom of "Lazy Management"? A. Tendency for managers to look for quick fixes to complex retention problems B. Tendency for managers to blame organizational problems on lack of resources C. Tendency for managers to overlook key cultural artifacts that would help build community D. Tendency for managers to blame low performance on lack of training E. Tendency for managers to look for key employees to solve problems quickly
A. Tendency for managers to look for quick fixes to complex retention problems
What is strategy from an organizational perspective? A. The activities that coordinates all the firm's functions B. The course of actions that the shareholders want implemented C. The discipline that analyzes the drivers of profit D. The agreed upon approach for employees to best achieve short-term goals E. The collective vision of the board and executive team
A. The activities that coordinates all the firm's functions
What does cost of sales represent? A. The direct cost of goods provided to customers B. The operational expenses related to running the business during a specific period of time C. The dollar amount of markdowns applied when items are discounted D. The cost (salaries + expenses) of sales peoples E. The expenses incurred by a company to receive revenue for their product or service
A. The direct cost of goods provided to customers
Which of the following is NOT a characteristic of business objectives? A. They determine the future of the business B. They determine how people are allocated to tasks C. They determine who you compete against D. They determine the key activities that must occur E. They determine the structure of a business
A. They determine the future of the business
According to Drucker, which of the following allowed low-wage countries to become efficient enough to compete with higher-wage countries? A. Training B. Information Technology C. Automation D. Trade-unions E. Research and Development
A. Training
Bottleneck time is also process cycle time. A. True B. False
A. True
Bounded ethicality is the idea that even when we try to behave ethically, it is difficult due to a variety of organizational pressures and psychological tendencies. A. True B. False
A. True
Effective management involves companies having a "Values Statement" that incorporates its stakeholders. A. True B. False
A. True
Ethics is not following culturally accepted norms. A. True B. False
A. True
In general, stakeholders have a claim on the business because the business has a potential to harm or benefit them. A. True B. False
A. True
In light of COVID-19, fast-food retail establishments are using their websites for mobile orders as opposed to using workers for in-person service. This is an example of a change to Processes as it relates to the 4Ps of Operations. A. True B. False
A. True
Most employees would forgo a pay raise if the tradeoff was seeing their boss fired. A. True B. False
A. True
On a Balance Sheet, Assets are things purchased by the company. A. True B. False
A. True
Operating income margin is less than gross profit margin from revenues. A. True B. False
A. True
Strategy requires you to choose what not to do: A. True B. False
A. True
Suppose you are operating a machine that produces only one type of part and the part is produced every 30 seconds (its cycle time). The capacity of your machine in units per hour is 120 units/hour. A. True B. False
A. True
The point of industry analysis is to understand the underpinnings of competition and the root cause for profitability. A. True B. False
A. True
Unethical decisions are usually costly for you, your community or your business. A. True B. False
A. True
Values conflicts in the workplace often appear in the form of reasons and rationalizations for pursuing a particular course of action: A. True B. False
A. True
When a company is able to harvest its own materials, assemble products and sell them directly to the consumer, this is known as vertical integration. A. True B. False
A. True
Which of the following is a key question you should respond to when thinking about "Reasons and Rationalizations" in GVV? A. What is at stake for key parties who may be impacted by this decision? B. What levers can I use with people who agree with me? C. What are the supporting arguments I will get? D. Do I need to tell everyone my decision? E. How can I benefit from this decision?
A. What is at stake for key parties who may be impacted by this decision?
Which of the following is the first and most crucial question to be asked in defining the purpose and mission of a business? A. Who is our customer? B. What does the customer buy? C. What is our business? D. Where is our budget? E. Who are our competitors?
A. Who is our customer?
GVV Pillar 7
Acting on Your Values: - Reasons & Rationalizations - What is at stake for the key parties, including those who disagree with you? - What are the main arguments you are trying to counter? - What arguments or levers can you use to influence those who disagree with you? - What is your plan of action?
GVV Pillars 4-6
Acting on Your Values: - Requires a strategy - Acting on your values is possible - Doesn't require poking holes in others' successes - Requires thought and engagement to develop - Not so much about persuading others you are right as it is about accomplishing your goal of having the opposing party understand your position
Selective perception
Allowing our expectations to influence how we perceive the world.
Survivorship bias
An error that comes from focusing only on surviving examples, causing us to misjudge a situation.
What is a stake?
An interest or a share in an undertaking
What is a stakeholder?
Any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization
Blind Spots
Areas in which one fails to exercise judgment or discrimination.
GVV Pillars 1-3
Awareness: 1. What are the facts? What you see is NOT all there is. 2. What are the critical issues? Think broadly about your objectives Get outside advice, Think about them 1 by 1. 3. What are the alternatives? Think broadly about possible outcomes Think broadly about your options Look at them together 4. What are the consequences of each alternative? 5. Make a decision
Most ethical dilemmas fall in the following categories or patterns, Except: A. "Short term versus long term" B. "Money versus people" C. "Individual versus community" D. "Truth versus loyalty" E. "Justice versus mercy"
B. "Money versus people"
Which company is an example of Focused Cost Leadership according to the Competitive Positioning framework? A. Kia, a popular Korean automaker competing on price and design B. A discount, business-class only airline that operates between London and New York only C. Starbucks Reserve, 12 new Starbucks locations, serving only the rarest, most extraordinary coffees D. Greyhound, the leader in intercity bus transportation in the US E. Ikea the largest furnishing retailer, inspired by Swedish design
B. A discount, business-class only airline that operates between London and New York only
What are the 3 A's of GVV process? A. Analysis, Awareness and Attraction B. Awareness, Analysis and Action C. Action, Analysis and Attraction D. Awareness, Appearance and Activity E. Action, Appearance and Analysis
B. Awareness, Analysis and Action
Drucker would be more likely to believe that: A. The BU Hub is a waste of time B. Balancing a professional education with humanities/liberal arts is critical C. That the humanities arts such as ethnography or history have little to offer to managers D. That philosophy has no role in business E. Studying business skill is what matters most for leadership success
B. Balancing a professional education with humanities/liberal arts is critical
Which of the following is true? A. CSR connects societal development with business activities B. CSV creates societal and economic impact C. CSV is susceptible to greenwashing D. CSR enables local cluster development
B. CSV creates societal and economic impact
Who prepares the financial statements for a company? A. Auditors B. Company management C. Accountants D. The Board of Directors
B. Company management
Which of these represent Carroll's components of CSR? A. Economic, legal, societal, and personal. B. Economic, legal, ethical, and philanthropic. C. Legal, societal, philanthropic, and moral. D. Economic, ideal, moral, and spatial. E. Philanthropic, legal, individual, and reportable.
B. Economic, legal, ethical, and philanthropic.
On an Income Statement, what are the costs of running a company called? A. Entitlements B. Expenses C. Liabilities D. Debt E. Depreciations
B. Expenses
A software company will usually have a lot fewer current assets than long term assets? A. True B. False
B. False
Branding, Advertising campaigns, and online strategies are the main components of marketing. A. True B. False
B. False
Companies in the same industry tend follow the same supply chain design approach. A. True B. False
B. False
Damien has a wedding invitations printing yes business. He made a typo on the invitation for Alejandro and Kendra's wedding. He only saw the mistake while inspecting the order before mailing out the 100 invitations on behalf of the couple. Consequently, all 100 invitations had to be scrapped (thrown away in the recycle bin) and he had to redo everything. Scraping the 100 invitations is an example of prevention costs for quality management. A. True B. False
B. False
During an accounting audit, the auditors spends many hours look checking every financial transaction in the company. A. True B. False
B. False
For jobs involving complex decisions and creativity, teams who are similar and share interest and values typically out-perform those who are diverse. A. True B. False
B. False
GVV is a proactive approach to ethics for large organizations. A. True B. False
B. False
GVV seeks to help people figure what the ethical choice should be: A. True B. False
B. False
In CSR, social programs and business activities are integrated and embedded. A. True B. False
B. False
It is always a bad idea to try to be more than one thing in consumers' mind. A. True B. False
B. False
One goal of an ethical framework is to make more expedient and faster decisions. A. True B. False
B. False
Operating Income is determined after interest and tax are deducted. A. True B. False
B. False
Optimal cost of quality is reached when prevention costs and appraisal cost are at their lowest point. A. True B. False
B. False
Product price should be set based on product variable cost. A. True B. False
B. False
Shared assumptions are surface artifacts of organizational culture. A. True B. False
B. False
Stakeholder Perspectives is based on creating different levels between stakeholders. A. True B. False
B. False
The answer to 2+2 will draw on system 2 thinking. A. True B. False
B. False
The income statement shows information at one point in time. A. True B. False
B. False
Typically, operating income is greater than gross profit. A. True B. False
B. False
You wait in line at Starbucks for 5 minutes. It takes 2 minutes for you to place your order of a tall mocha with the cashier and pay. It takes 4 minutes for the barista to make the mocha. The bottleneck in this process is your wait time of 5 minutes. A. True B. False
B. False
Brody and Hooper have an ongoing debate: which industry is more profitable- food service (such as a restaurant) or high-end clothing retail. Which strategic analysis framework is most relevant to finding the answer? A. Competitive positioning analysis B. Five forces analysis C. 4P analysis D. Stakeholder analysis
B. Five forces analysis
In GVV, Gentile advocates that people should ask the following question: A. How do I get everyone to change their positions? B. How will I act on my values? C. How do I select what is the right thing to do? D. How can I convince everyone I am right? E. How do I know if I am wrong?
B. How will I act on my values?
Which one is not a basic category of stakeholders? A. Owners B. Human rights groups C. Consumers D. Employees E. Community
B. Human rights groups
Accounting can be described as an 'information system' that does all of the following, EXCEPT: A. Communicates results to decision makers B. Is mainly preoccupied with tax issues C. Measures business activities D. Processes data into financial statements E. Supports efficient allocation of capital
B. Is mainly preoccupied with tax issues
The rights approach to ethics is often associated with: A. Jean-Baptiste Rousseau B. John Locke C. Jeremy Bentham D. Aristotle E. John Rawls
B. John Locke
According to Drucker, which of the following is the single largest reason for the decline of existing organizations: A. Lack of scientific management B. Lack of innovation C. Lack of marketing D. Lack of available skilled workers E. Lack of logic and statistical analysis
B. Lack of innovation
Which of the following is NOT a suggestion for managers who want to use cultural fit in a more productive way: A. Fit should be based on data driven analysis of what types of values, traits and behaviors predict on the job success B. Make sure the definition of the right candidate is closely aligned with managers' personal values C. Communicate and clear and consistent idea of what the organization's culture is D. Create formal procedures for measuring fit E. Require limits on how much 'fit' can influence hiring
B. Make sure the definition of the right candidate is closely aligned with managers' personal values
To be successful a company must realize all the following, EXCEPT: A. Innovation success is predicated on having the right business model B. Marketing innovation principles only apply to tangible product C. Innovation must solve needs or relieves a pain point better than competing alternatives D. A need can usually be solved by many types of products or services E. Customers must be willing to pay for the product or services
B. Marketing innovation principles only apply to tangible product
What does Milton Friedman believe? A. Maximize stakeholder's value B. Maximize profit C. Creating share value D. CSR
B. Maximize profit
What is an advantage of having diversity in your team? A. Faster fitting in B. More creative C. Harder to communicate D. Less potential conflict
B. More creative
Which of the following not a typical management failure we experience at work? A. Our voices are not heard B. Most leaders think they are not inspiring C. Teammates don't care enough D. Most employees think leaders are not inspiring E. Cannot persuade my colleagues
B. Most leaders think they are not inspiring
When a company advertises "Our car goes 0-60 miles per hour in 6.1 seconds" they are promoting: A. Product attributes B. Rational benefits C. Emotional benefits D. Values E. All of the above
B. Rational benefits
Ethical tests are useful to clarify what the most prudent course of action should be. All the followings are ethical tests, EXCEPT: A. Purified idea test B. Sins test C. Gag Test D. Big four test E. Common sense test
B. Sins test
Georgia's boss, Stanley, recently turned her down for a promotion at work because he assumed that as a woman, Georgia would prioritize her role as a wife and mother over a high-paying career. In this way, Stanley has engaged in the cognitive bias known as: A. Confirmation Bias B. Stereotyping Bias C. Conservatism Bias D. Bandwagon effect E. Information Bias
B. Stereotyping Bias
Gucci designs their products to appeal to 18-40 women.This is a strategy of: A. Primary Marketing B. Target Marketing C. Branding D. Focus group selection
B. Target Marketing
Which is not a managerial competency needed to manage people? A. Interpersonal skills B. Trainings skills C. Analytical thinking skills D. Strategic insights skills E. These are all needed managerial competencies
B. Trainings skills
Utilitarian
Bring the greatest good to the greatest number of people. Which option will produce the most good and do the least harm? Create most benefit over harm for the most stakeholders.
Creating Shared Value
Business and society can be brought together if business redefines the basic purpose as creating shared value. That is generating economic value in a way that also produces value for society.
Small Business LLC has $25,000 in cash, $275,000 in long term assets, and they owe $200,000 for a mortgage. How much do they have in equity? A. $250,000 B. $225,000 C. $100,000 D. $175,000 E. $75,000
C. $100,000
The copy center has a job order that requires 500 pages of white paper and 200 pages of pink paper. The copying rate is 25 pages per minute, the overall setup time is 5 minutes, and the color change time is 2 minutes. What is the hourly copy center capacity to do jobs like this one? (Assume that the setup must be done for every job of this type). A. Less than 1 job per hour B. 1 or more job per hour, but less than 1.5 jobs per hour C. 1.5 or more jobs per hour, but less than 2 jobs per hour D. 2 or more jobs per hour, but less than 2.5 jobs per hour E. 2.5 or more jobs per hour
C. 1.5 or more jobs per hour, but less than 2 jobs per hour
Which is part of system 1? A. More reliable B. Slower C. Automatic thinking D. Rational thinking
C. Automatic thinking
According to the HBR article, "Don't let lazy managers drive away your top performers", managers have to see themselves as: A. Analytic Superstars B. Test Pilots C. Behavioral Scientists D. Retention Specialists E. Motivational speakers
C. Behavioral Scientists
Which statement is true: A. GVV is rational and theoretical ethics B. GVV is emotional and theoretical ethic C. GVV is rational and practical ethics D. GVV is emotional and practical ethics E. They are all true
C. GVV is rational and practical ethics
Boeing is selling aircraft to Jet Blue and Pacific. Which is not a primary social stakeholder? A. Shareholders B. Employees C. Government D. Customers
C. Government
As part of positioning, marketing managers should consider: A. What the competitive set for the product/brand is B. What distinguishes the product/brand from the competitors C. How consumers should think about the product/brand D. How the company will impact consumers' thinking about the product/brand E. All of the above
C. How consumers should think about the product/brand
Which of these SDGs is NOT a top 4 priority for US businesses? A. Climate action B. Gender equality C. Industry, Innovation and Infrastructure D. Responsible consumption and production E. Decent work and economic growth
C. Industry, Innovation and Infrastructure
Which of the following forces is NOT one of Michael Porter's Five Forces: A. Buyer power B. Threat of Substitutes C. Labor power D. Threat of entry E. Industry rivalry
C. Labor power
Which of the following leadership principles is not a leadership principle at Walmart? A. Share profits with your associates B. Swim upstream C. Lower customers' expectations D. Control your expenses better than your competition E. Listen to everyone in your company
C. Lower customers' expectations
The goal of the virtue approach to ethics is to: A. Create the most benefits over harm for the most stakeholders B. Take the actions that does infringe on others' rights C. Make sure that I live up to my best self D. Make sure that society is benefits E. Make sure people are not affected unfairly
C. Make sure that I live up to my best self
The goal of the common good approach to ethics is to: A. Create the most benefits over harm for the most stakeholders B. Make sure that I live up to my best self C. Make sure that society is benefits D. Take the actions that does infringe on others' rights E. Make sure people are not affected unfairly
C. Make sure that society is benefits
Competition is greatest in which stage of the product life cycle: A. Introduction B. Growth C. Maturity D. Decline E. Both A&B
C. Maturity
According to Drucker, the one valid definition of business purpose is to create a customer. According to Drucker, which of the following best described what customers value? A. Getting low priced goods and/or services for their money B. Getting what they want before they know they want it C. Maximizing the utility that the product provides them with D. Getting the highest quality product E. Something that provides them with social status
C. Maximizing the utility that the product provides them with
Which of the following is a liability? A. Account receivable B. Goodwill C. Notes payable D. Retained earnings
C. Notes payable
Bex works in a law office as a receptionist and is confronted with an ethical dilemma. She was recently exposed to someone who tested positive for COVID-19 but she does not suffer from any symptoms. She fears getting tested because she would rather not receive bad news. In terms of the 20 cognitive biases that get in the way of good decision-making, this is an example of: A. Zero-risk Bias B. Placebo Effect C. Ostrich Effect D. Conservatism Bias E. Confirmation Bias
C. Ostrich Effect
What are the components of the Marketing Mix or 4Ps? A. Process, Plant, Product, Profit B. Planet, Profit, People, Price C. Place, Promotion, Product, Price D. Promotion, Product, Price, Profit E. Product, People, Planet, Profit
C. Place, Promotion, Product, Price
Which of the following is NOT a potential lever that can be used in crafting your GVV. A. Consider the firm's wider purpose B. Consider an ally C. Position yourself as a conservative agent D. Provide actionable alternatives E. Assume the audience is pragmatic
C. Position yourself as a conservative agent
Which one is NOT one the basic competitive strategies identified in Porter's competitive positioning framework? A. Cost leadership B. Differentiation C. Price leadership D. Focused differentiation E. All four are competitive strategies identified in Porter's framework
C. Price leadership
What is arguably the most basic/simple strategy tool? A. Competitive positioning analysis B. Scenario planning C. SWOT analysis D. Cost-Benefit analysis E. Five Forces analysis
C. SWOT analysis
Which one is not an example of middle management? A. Plant managers B. Division managers C. Supervisors D. Department managers E. These all are examples of middle management
C. Supervisors
Which of the following statements is true? A. Segmentation divides a market into smaller segments of heterogeneous customers B. Segmentation is always done based on demographic characteristics C. Targeting is about selecting the best potential segment D. Positioning is about finding the optimal store/shelf location for a product E. All of the above are true
C. Targeting is about selecting the best potential segment
When training people in the art and practice of GVV, one should emphasize the followings, EXCEPT: A. An emphasis on the importance of finding an alignment between one's individual sense of purpose and that of the organization B. A focus on positive examples C. The opportunity to concentrate on pre-decision making D. The opportunity to build commitment by practicing delivering responses E. The opportunity to construct and practice responses
C. The opportunity to concentrate on pre-decision making
In Operations, what does "Cheap" mean in the phrase "Good Stuff Cheap"? A. The product is produced with low cost labor B. The product is sold at a low price C. The product is produced using the fewest resources D. The product satisfies the customers wants and needs E. The product is produced using low cost materials
C. The product is produced using the fewest resources
What does cycle time mean in terms of Process Analysis? A. The time of the bottleneck process B. The time required to complete a task C. The time between completion of successive tasks. D. The time required for a job to go from start to finish E. The time waiting where there is no value
C. The time between completion of successive tasks.
Which of the following is NOT one of the Five Key questions of Stakeholder management? A. What are our stakeholders' stakes? B. Who are our organization's stakeholders? C. Why do the stakeholders want to be involved with the firm? D. What strategies or actions should the firm take to address their challenges?
C. Why do the stakeholders want to be involved with the firm?
Data from Communication Platform
Chat, email, text messaging, Slack
Ethical Framework must be...
Codified, communicated and lived by.
Data from Company Surveys
Commitment, job satisfaction, psychological safety, team effectiveness
The number of SDGs is: A. 7 B. 12 C. 21 D. 17 E. 14
D. 17
If you wait 5 minutes and it takes 20 seconds to be served, how long are you in the system? A. 5.11 Mins B. 6.33 Mins C. 5.21 Mins D. 5.33 Mins
D. 5 minutes + 20 seconds = 5.33 minutes (throughput time)
The way to achieve the goal of Strategy is to: A. Increase price B. Decrease cost C. Increase quantity D. All of the above
D. All of the above
In Accounting, what is the formula used for a Balance Sheet? A. Assets + Liabilities = Equity B. Assets - Liabilities = Gross Income C. Liabilities = Assets + Equity D. Assets = Liabilities + Equity E. Revenue - Liabilities = Gross Income
D. Assets = Liabilities + Equity
Which of the following is true? A. Balance sheet tells both "where the company is" and "what happened" B. Balance sheet and income statements both tell "what happened" C. Income statement tells both "where the company is" and "what happened" D. Balance sheet tells "where the company is" and Income statement tells "what happened" E. Balance sheet tells "what happened" and income statement tells "where the company is"
D. Balance sheet tells "where the company is" and Income statement tells "what happened"
An ethical framework should meet all of the following criteria, EXCEPT: A. Be consistent B. Make sense C. Be authentic D. Be dynamic E. Be practical
D. Be dynamic
Which is true about strategy? A. External environments are always unpredictable B. Internal factors must be weighed against rivals before setting prices C. The best internal decisions are based on external factors only D. Both external environments & internal environments affect profits E. Profitability is based on a firm's ability to make its rivals look "bad"
D. Both external environments & internal environments affect profits
What is the company's top most focused SDG goal according to Professor Brunel? A. Gender Equality B. Responsible consumption and production C. Decent work and economic growth D. Climate action
D. Climate action
Which of the following is NOT a reason Walmart is effective in managing their supply chain? A. The delivery dot B. Vendor managed inventory C. Leader in logistics and supply chain technology D. Closely guarded demand data for competitive advantage E. Point of use delivery
D. Closely guarded demand data for competitive advantage
What are the 4 Structure considerations of an organization that will assist in managing people? A. Communications, Incentives, Promotion, Challenge B. Power, Incentives, Control, Culture C. Promotion, Challenge, Incentives, Culture D. Communication, Power, Incentives, Culture E. Incentives, Autonomy, Professional Development, Environment
D. Communication, Power, Incentives, Culture
What are some of advantages to US companies manufacturing themselves as opposed to outsourcing/offshoring the Supply Chain? A. Companies can lower the investments needed B. Companies can expand their markets C. Companies can pay lower wages D. Companies can have more control over their operations E. Companies can have fewer regulations to worry about
D. Companies can have more control over their operations
When a firm attempts to achieve a sustainable competitive advantage by preserving what is distinctive about the firm (selecting the customers it will serve, deciding what different activities to perform), which of the strategy frameworks would be most helpful? A. 5-C analysis B. Segmentation analysis C. A SWOT Analysis D. Competitive Positioning Analysis E. Five Forces Analysis
D. Competitive Positioning Analysis
What are the 5Cs in marketing management analysis? A. Customers, Channels, Competitors, Collaborators, Context B. Channels, Consumers, Competitors, Company, Context C. Customers, Channels, Collaborators, Company, Context D. Customers, Company, Competitors, Collaborators, Context E. Customers, Consumers, Competitors, Company, Collaborators
D. Customers, Company, Competitors, Collaborators, Context
The profits realized by a firm become: A. Equity B. Revenue C. Dividends D. Dividends and/or equity E. Assets
D. Dividends and/or equity
What does ESG stand for? A. Earnings B. Enriching social goals C. Extra societal goals D. Environmental social governance E. Environmental special goals
D. Environmental social governance
Creating shared value calls for all the followings, EXCEPT: A. Recreating products and markets B. Investments that address social objectives C. Redefining productivity in the supply chain D. Investments in short term competitiveness E. Enabling local cluster development
D. Investments in short term competitiveness
Which of the following individuals is commonly associated with the ethical principle of Utilitarianism? A. John Rawls B. Aristotle C. John Locke D. Jeremy Bentham
D. Jeremy Bentham
Generating economic value by in a way that also produces value for society by addressing its challenges would be advocated by which thinker? A. John Stewart Mill B. Milton Friedman C. Friedrich Hayek D. Michael Porter E. Ed Freeman
D. Michael Porter
Humans sometimes behave unethically out of self-interest. This phenomenon is called: A. Bounded rationality B. Irrationality C. Attribution bias D. Motivated blindness E. Risk avoidance
D. Motivated blindness
What are the 4Ps of Operations? A. Processes, Partnerships, Price and People B. Place, Price, Promotion, and Product/Service C. Promotion, Product, Price and Profit D. People, Place, Processes, and Partnerships E. Product, People, Partnership, and Processes
D. People, Place, Processes, and Partnerships
KP encourages employees to donate and deliver books to children in need is an example of ____ CSR. A. Economic B. Legal C. Ethical D. Philanthropic
D. Philanthropic
Elizabeth Holmes supposedly created the technology to test and pre-diagnose illnesses with only a few drops of blood. The company she started was called Theranos. She was so confident in her technology that she was able to raise millions of dollars from investors. However, she never allowed the scientific community to test her product and ultimately it was revealed that the technology did not work and her company committed fraud. Investors in her business fell victim to which type of cognitive bias? A. Zero-risk bias B. Bandwagon bias C. Information bias D. Pro-innovation bias E. Information bias
D. Pro-innovation bias
Triple bottom line is often also called: A. Profit, Payout, Promises B. Product, Payout, Pension C. Product, People, Profit D. Profit, People, Planet E. Product, People, Planet
D. Profit, People, Planet
In the Ted Talk, 'business is about purpose', Edward Freeman states there are 3 flaws in the story of the purpose of business. Which of the following is not one of them? A. People are not simple beings about self interest B. Business and ethics are contradictions C. Money is the purpose D. Purpose needs Profits
D. Purpose needs Profits
Having channels intermediaries: A. Always drives costs up for consumers B. Is old fashioned and on its way out C. Increases the power of manufacturers D. Reduces the number of transactions in the market E. Does not create value for consumers
D. Reduces the number of transactions in the market
What is greenwashing? A. New energy and water conversation standards for laundry appliance. B. Giving money to political ecological organization. C. A new generation of laundry detergent developed by Unilever. D. Seeking to convey the image of CSR when it is not true. E. Shareholders allowing for lower corporate value if companies are environmentally friendly.
D. Seeking to convey the image of CSR when it is not true.
The basic objectives of marketing communication are the following EXCEPT: A. Inform B. Persuade C. Remind D. Serve
D. Serve
All of the followings are classes of consumer goods, EXCEPT: A. Convenience goods B. Shopping goods C. Specialty goods D. Support goods E. Unsought goods
D. Support goods
SDG stands for: A. Subsided Direct Grants B. Simple Decision Guide C. Sustainable & Desirable Governance D. Sustainable Development Goals E. Sustainable Development Grants
D. Sustainable Development Goals
In the movie Star Trek, Dr. Spock was always stoic but logical. He always approached every problem with critical thinking. In this way, Dr. Spock following what system of thinking? A. Efficient Thinking B. Affective Thinking C. Intuition Thinking D. System 2 Thinking E. System 1 Thinking
D. System 2 Thinking
The followings are historical eras in the development of the marketing discipline: EXCEPT: A. The production era B. The selling era C. The customer relationship era D. The service era E. The marketing concept era
D. The service era
For "Acting on your values", all of the followings are true, EXCEPT: A. Your goal is to have the opposing party understand your position B. It requires thought and engagement to develop C. You need a strategy D. You need to persuade others E. It doesn't require poking holes in others' successes
D. You need to persuade others
What are unethical decisions?
Decisions that are dishonest, unfair and unjust and costly for you, your community and your business.
Amazon, the most valuable brand in the world, is worth about: A. $2,000 Billions B. $20 Billions C. $200 Millions D. $2 Billions E. $200 Billions
E. $200 Billions
The copy center has a job order that requires 500 pages of white paper and 200 pages of pink paper. The copying rate is 25 pages per minute, the overall setup time is 5 minutes, and the color change time is 2 minutes. The routing for the job also calls for stapling and three-hole drilling (in that order). The time standards are 10 minutes and 20 minutes, respectively. If labor cost is charged on the basis of total standard time multiplied by $6.00 per hour, estimate the cost of this job, including the work in Problem 1. A. $2.80 per job B. $3.00 per job C. $5.80 per job D. $6.00 per job E. $6.50 per job
E. $6.50 per job
The copy center has a job order that requires 500 pages of white paper and 200 pages of pink paper. The copying rate is 25 pages per minute, the overall setup time is 5 minutes, and the color change time is 2 minutes. If the job has to wait in queue at the copy work center for 24 minutes, at the stapling work center for 43 minutes, and at the three-hole drilling work center for 17 minutes, what is the throughput time for this job? (These queue times apply only to this question!) A. 82 minutes B. 84 minutes C. 108 minutes D. 132 minutes E. 149 minutes
E. 149 minutes
The copy center has a job order that requires 500 pages of white paper and 200 pages of pink paper. The copying rate is 25 pages per minute, the overall setup time is 5 minutes, and the color change time is 2 minutes. Suppose the copy center only did jobs exactly like this one (500 white, 200 pink). What would the cycle time be? Assume that different people work in each of the three work centers. A. 20 minutes B. 28 minutes C. 30 minutes D. 33 minutes E. 35 minutes
E. 35 minutes
What does the "stake" in stakeholder mean? A. A defined set of rules governing who legally can determine outcomes B. A preference for one way of doing things C. A barrier to entry in an industry D. Rights of employees, customers and owners only E. A person who has interest, right or ownership position in something
E. A person who has interest, right or ownership position in something
According to the reading, what percentage of companies are impacted by SDG's? A. About 33% B. About 50% C. About 66% D. About 75% E. About 100%
E. About 100%
According to Freeman, what is the 'So What?' of the emerging story about business? A. Business is about purpose B. Get the purpose right profits will follow C. Business is about working together to create value together D. Create value for stakeholders without making tradeoffs E. All of the above
E. All of the above
Companies often make supply chain decisions based on which criteria: A. Labor costs B. Labor regulations C. Environmental standards D. Tax laws E. All of the above
E. All of the above
Sustainable business practices should produce results which are: A. Viable B. Equitable C. Sustainable D. Bearable E. All of the above
E. All of the above
It is important to consider what is at stakes for the parties you are trying to influence in the GVV approach. Which is the question you should consider? A. What is important to them? B. Who has a stake in the outcome of your decision? C. What are the motivations of each stakeholder? D. How much power does each hold? E. All of the above are aspects to be considered?
E. All of the above are aspects to be considered?
To recognize an ethical issue, once must ask the following question: A. Does this decision involve more than what is legal? B. Does this decision involve a choice between a good and bad alternative? C. Does this decision involve a choice between two goods alternatives? D. Does this decision involve a choice between two bad alternatives? E. All of the above are potential ethical issues
E. All of the above are potential ethical issues
Studies have shown that the number 1 driver impacting unethical behavior in organizations is: A. Society's moral climate B. Formal organization policy C. Ethical norms in the industry D. Behavior of peers E. Behavior of superiors
E. Behavior of superiors
What is the best way to create customer value? A. Decreasing costs B. Increasing benefits C. Decreasing cost and benefits D. Increasing benefits and cost E. Both A or B can do it
E. Both A or B can do it
Operational effectiveness can be a source of competitive advantage via improvement in the following activities, except: A. Delivery processes B. Creation processes C. Selling processes D. Production processes E. Communication processes
E. Communication processes
In the United States, what is the name/acronym for the rules we use for Accounting? A. IFRS B. US-IFRS C. US-ACC D. IRS E. GAAP
E. GAAP
What are the three possible mechanisms to ensure long-term profitability of the firm? A. Corner the market, decrease number of competitors, or retain more customers B. Increase profits, lower prices, or improve quality C. Increase quantity, improve quality, or lower costs D. Lower costs, increase market share, or decrease defective products E. Increase prices, increase quantity, or lower costs
E. Increase prices, increase quantity, or lower costs
The emergence of management has converted this from a social ornament and luxury into the true capital of any economy: A. Financial instruments B. Unskilled labor C. Skilled labor D. Credit cards E. Knowledge
E. Knowledge
Which of the following is not a key Take-a-way from the lecture: A. Organizational Culture has many elements, which shape how employees do their work B. Managers today need more than interpersonal skills they need strategic thinking and analytical skills. C. Leaders can balance and achieve multiple goals by designing optimal organizational structures D. Diverse and Inclusive workplaces require cultures that celebrate differences E. Managing people is mainly common sense, we just need to practice more
E. Managing people is mainly common sense, we just need to practice more
According to the Forbes articles, the Business Round table's recent affirmed: A. Generating the best quarterly income statements is sole purpose of a corporation. B. Maximizing shareholder value is the sole purpose of a corporation. C. Milton Freidman's belief that corporations should put social good ahead of profit. D. Changing from GAAP to IFRS is in the best interest of American businesses. E. Maximizing social impact is the purpose of a corporation.
E. Maximizing social impact is the purpose of a corporation.
"The only group that has a more claim on the corporation is the people who own shares of the stocks" can be best attributed to: A. Michael Sandal B. Peter Drucker C. Edward Freeman D. Michael Porter E. Milton Friedman
E. Milton Friedman
Which of the following categories would a stakeholder be in who is high potential for threat and cooperation? A. Non-supportive B. Marginal C. Supportive D. Ally E. Mixed-blessing
E. Mixed-blessing
All of the followings are ethical approaches grounded in philosophical thinking that we discussed in the lecture, EXCEPT: A. Virtue approach B. Common good approach C. Utilitarian approach D. Rights approach E. Moral approach
E. Moral approach
Hyun and Asha have started a Fruit Stand business in a rented store front. For this year, they bought fruits for $400,000, they ran ads in the local paper for $5,000. During the same period, they sold $600,000 of fruits and paid $100,000 in payroll for the two of them? What is their operating income? A. $95,000 B. $100,000 C. $195,000 D. $200,000 E. Not enough information to determine.
E. Not enough information to determine.
Which statement is not true? A. Perception mistakes can be driven by context B. Perception mistakes can stem from our expectations C. Perception mistakes are predictable D. Perception mistakes can stem from visual complexity E. Perception mistakes are limited to visual illusions
E. Perception mistakes are limited to visual illusions
The building blocks of an ethical framework are: A. Integrity, values, and purpose B. Trust, values and integrity C. Principles, trust and integrity D. Purpose, trust and integrity E. Purpose, values and principles
E. Purpose, values and principles
All of the following are correct limitations of the SWOT analysis EXCEPT: A. strengths can also be weaknesses B. SWOT does not tell us much about external drivers of profits C. sensible, thoughtful, well-informed people can draw completely different SWOT analyses D. SWOT does not tell us much about internal drivers of profits E. SWOT is not widely used in strategy analysis
E. SWOT is not widely used in strategy analysis
Which of the following about primary and secondary stakeholders is true? A. Primary social stakeholders always have a lot of power B. Future human generations are always secondary stakeholders C. Government can only be a secondary stakeholder D. Animals can be considered primary social stakeholders if their lives are in danger. E. Secondary social stakeholders advocate for people
E. Secondary social stakeholders advocate for people
According to the video you watched on the Stroop effect, which of the following statements is true? A. Assume that more information is better B. You can avoid the Stroop effect by reading everything that is right in front of you C. Reading is not automatic D. To avoid the Stroop effect, you should watch something or someone as opposed to just listening to them E. Squint to see more clearly
E. Squint to see more clearly
Making ethical decisions is hard because: A. The human mind is not designed to make thoughtful decisions B. We face too many ethical dilemmas in our everyday lives C. Most of us cannot agree on what is right and what is wrong D. We are not used to making decisions E. There can be many contextual factors that interfere in the decision making process
E. There can be many contextual factors that interfere in the decision making process
Which marketing element has the least impact on the firm expenses? A. Product B. Place C. Price D. Promotion E. They all have comparable impact on expenses
E. They all have comparable impact on expenses
Which of the following is not a Managerial Responsibility? A. Retention B. Compensation C. Motivation D. Recruiting E. They are all managerial responsibilities
E. They are all managerial responsibilities
Which is true of corporations? A. They have simple governance structures B. They are the most common type of business in the US C. They represent a small amount of business activity in the US D. They come with large personal risks for investors E. They can draw large amount of capital from many investors
E. They can draw large amount of capital from many investors
What is the main goal of the Porter's 5-Forces Analysis? A. To analyze supply chain forces' contribution to profit B. To determine how product, people, place, processes and strategic processes impact profit C. To determine the intensity of one's rivals and its impact on profit D. To analyze the impact of company, customers, competitors, collaborators and context on profit E. To analyze expected industry profitability
E. To analyze expected industry profitability
According to the TED talk by Dan Ariely called "Our Buggy Moral Code", which of the following statements is TRUE? A. People cheat less when they see members in their in-group cheat more B. Our intuition is always right C. Incidence of cheating goes down when we are reminded of our mortality D. People cheat less when they see members in their out-group cheat more E. Two of the above are correct
E. Two of the above are correct
When making ethical decisions, one should remember: A. System 1 thinking requires you to slow down and be more deliberate with your thinking B. System 2 thinking requires you to make decisions in the moment and quickly C. Using the GVV framework allows you to make more rational and practical ethical decisions D. One often knows what the right decision is, how to act on it is the difficulty E. Two of the above are correct when making ethical decisions
E. Two of the above are correct when making ethical decisions
What attributes of stakeholders determine whether managers pay attention to them? A. Voting rights, power and legitimacy B. Proximity, urgency and legal rights C. Power and legal rights D. Legal rights E. Urgency, legitimacy and power
E. Urgency, legitimacy and power
The responsibilities a firm has toward its stakeholders can be all of the followings, EXCEPT: A. Ethical B. Economic C. Philanthropic D. Legal E. Welfare
E. Welfare
The underlying trust that Netflix places in its employees, no matter when they hired, is an example of which of the following elements of Culture: A. shared values B. language C. legends D. stories E. shared assumptions
E. shared assumptions
Customers will usually buy which product? A. the one with the lowest price B. the one with the most features C. the one with the most benefits D. the one with the lowest cost E. the one with the highest value
E. the one with the highest value
What is the goal of strategy in practice? A. to enable the organization to devote most its capital to shareholder-maximizing activities B. to achieve operational efficiencies that minimize waste C. to achieve the largest market share relative to competitors D. to achieve long-term environmental sustainability E. to enable organizations to achieve the greatest possible profit
E. to enable organizations to achieve the greatest possible profit
What should be baked into the company's DNA?
Ethical Framework
Stereotyping
Expecting a group or person to have certain qualities without having real information about that person.
Blind-Spot Bias
Failing to recognize your own cognitive biases is a bias in itself. People notice cognitive and motivational biases much more in others than in themselves.
Justice Approach
Fairness, equity and justice. Which option treats people equally or proportionately? Are all stakeholders being affected fairly vis-a-vis the relevant factors?
First-line Management
Foremen, Supervisors, Office Managers
Goal of Accounting
Give these investors information to efficiently allocate capital
Good Stuff Cheap
Good = Effectiveness: The extent to which the product and its delivery satisfy the customers' wants and needs. Stuff = Goods & Services Cheap = Efficiency: The extent to which products are produced using the fewest resources necessary.
Common Good Approach
Good attainable only by the community, yet individually shared by its members. Which option best serves the community as a whole, and not just some members? By benefiting the society, did I help others progress as well as myself?
Primary stakeholders
Have a direct stake in the organization and its success.
Secondary stakeholders
Have a public or special interest stake in the organization that is more indirect.
Data from HR Information Systems
Headcount, tenure, performance ratings, salary, turnover, demographics
Capacity
How many units can be produced (or customers can be served) in a period of time
Segmentation
Identifying and describing groups of customers who share similar needs
CSR Greenwashing
Intentionally seeking to convey the image of a socially responsible firm when in fact they are conducting business as usual.
System 1 Thinking
Intuition & Instinct - Based on intuition or emotion; quick and effortless. - Grounded in evolution: Automatic fight or flight responses. - It is also the source of many of the perception distortions, blind-spots and biases that we have identified today.
Outcome Bias
Judging a decision based on the outcome - rather than how the decision was made in the moment. Just because you won a lot of money in Vegas, doesn't mean gambling was a smart decision.
Edward Freeman
Many groups have a moral claim on the corporation because the corporation has the potential to harm or benefit them - The stakeholders
What is Marketing?
Marketing is about understanding customer needs in order to create value.
What is Operations?
Operations is about realizing that value by producing goods and services that customers can purchase.
What is Operations Management?
Operations management is the business function concerned with designing, controlling, and improving the process of producing goods or services.
Purpose
Our reason being...Our North Star. It gives life to our values and principles
Salience
Our tendency to focus on the most easily recognizable features of a person or concept.
What is People Analytics?
People Analytics is a data-driven approach to employee-related decisions and practices
Anchoring bias
People are over-reliant on the first piece of information they hear.
Availability Heuristic
People overestimate the importance of information that is available to them. A person might argue that smoking is not unhealthy because they know someone who lived to 100 who smoked 3 packs a day.
Middle Management
Plant Managers, Division Managers, Department Managers
Biases
Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.
Top Management
President, CEO, Executive Vice Presidents
Ethical Framework
Purpose + Value + Principles
System 2 Thinking
Rational Thinking - It is conscious and effortful - It is based on logic and critical thinking.
Data from Company Operations
Revenue, assets, net income, operating expenses, ROA
Rights Approach
Right to life, liberty, pursuit of happiness. Which option best respects the rights of all stakeholders? Take the action that does not infringe on other's rights.
Targeting
Selecting the group(s) of customers to go after (best potential return)
Zero-risk Bias
Sociologists have found that we love certainty - even if it's counterproductive. Eliminating risk entirely means there is no chance of harm being caused.
Overconfidence
Some of us are too confident about our abilities, and this causes us to take greater risks in our daily lives.
Unconscious Fast Associative Automatic Pilot
System 1
Takes Effort Slow Logical Lazy Indecisive
System 2
Income Statement
Tells the Story for a Certain Period Revenue (what you sold to customers) - Expenses (what it cost to run the company) = Net Income (what's left over for owners!)
What is Quality?
The ability of a product or service to consistently meet or exceed customer expectations.
Rousseau
The common good approach
Ostrich Effect
The decision to ignore dangerous or negative information by "burying" one's head in the sand, like an ostrich.
Bounded Ethically
The idea that even when we try to behave ethically, it is difficult due to a variety of organizational pressures and psychological tendencies.
Rawls
The justice approach
Milton Friedman
The only group that has a moral claim on the corporation is the people who own shares of the stock - The shareholders
Bandwagon Effect
The probability of one person adopting a belief increases based on the number of people who hold that belief. This is a powerful form of groupthink and the reason why team meetings are often unproductive.
Locke
The rights approach
Information Bias
The tendency to seek information even when it does not affect action. More information is not always better.
Recency
The tendency to weigh the latest information more heavily than older data.
Aristole
The virtue approach
Clustering Illusion
This is the tendency to see patterns in random events. It is key to various gambling fallacies, like the idea that red is more or less likely to turn up on a roulette table after a string of reds.
Cycle time
Time between completion of successive units
Throughput time
Time for a single unit (or customer) to get from the beginning of the process to the end. Throughput time = Queue time + Task time.
Task time
Time required to complete a task Task Time = Run Time + Setup Time
A strong ethical framework will...
Unite the organization's workforce under a common vision, creating a better workplace culture in the process.
Bentham
Utilitarian
What are the 7 Pillars of GVV?
Values Purpose Choice Normalization Self-Knowledge & Alignment Voice Reasons & Rationalizations
Confirmation Bias
We tend to listen to only information that confirms out preconceptions - one of the many reasons it's so hard ti have an intelligent conversation about climate change.
Virtue Ethics Approach
What sort of person should I be or become? Which option leads me to act as the sort of person I want to be? Can I live with my decision and the effects it has? Does it represent me?
Values
What's good - The things we strive & care for, desire and seek to protect.
Principles
What's right- The lines we will never cross; outlines how we may or may not achieve our values.
Pro-innovation Bias
When a proponent of an innovation tends to overvalue its usefulness and undervalue its limitations. Ex: Silicon Valley.
Placebo Effect
When simply believing that something will have a certain effect on you causes it to have that effect.
Choice-supportive bias
When you choose something, you tend to feel positive about it, even if that choice has flaws.
Conservatism Bias
Where people favor prior evidence over new evidence or information that has emerged. People were slow to accept that the Earth was round because they maintained their earlier understanding that the planet was flat.
Bottleneck
Work center with least capacity (longest cycle time)
Giving Voice to Values (GVV)
You don't improvise ethics in the moment. You need to rehearse and train yourself on how to react if certain situations were to happen
External Failure Costs
• Customer Complaint Adjustment • Returned Materials - Restocking and Reshipping • Warranty Charges • Allowances for Defective Materials • Lost Business
Appraisal Costs
• Incoming Inspection • In-Process Inspection • Final Inspection • Testing Devices • Destructive Testing • Inventory Safeguarding
How are effectiveness and efficiency achieved?
• Knowing customer needs • Understanding technology • Innovation • Design • Technology • Process • Deploying and coordinating resources • Process design • Process execution • Discipline • Consistency
Accounting is an information system that...
• Measures business activities • Processes data into reports and financial statements • Communicates results to decision makers
Prevention Costs
• Quality Planning (Hoshin Kanri) • Design (Prototyping, Field Testing) • Education and Training • Process Control • Information • Reporting • QIP, QIT • Supplier Involvement
Internal Failure Costs
• Scrap • Rework • Retesting • Downtime - Capacity • Yield Losses • Managing Defective Materials
Who Uses Accounting Information?
• Stockholders (investors in firm equity) • Potential Stockholders • Creditors • Potential Creditors
SWOT analysis
• Strengths = internal & positive • Weaknesses = internal & negative • Opportunities = external & positive • Threats = external & negative
What is Organizational Culture?
• The values, assumptions shared within an organization • Provides direction toward the "right way" of doing things • Company's DNA: invisible, yet powerful template for employee behavior • An ideology that helps edit people's everyday experience • Shared standard of relevance as to the critical aspects of the work that is being accomplished
What characterizes these stakeholders?
• They are vital to the survival and success of the corporation • Their relationship with the corporation enables them to be benefited by the corporation's actions and operations • This relationship also makes it possible for the corporation to harm them or to violate their rights
Potential Levers (GVV)
• Think in the long run as well as the short run • Consider the firm's wider purpose • Consider competitive advantage • Position yourself as an agent of continuous improvement • Provide actionable alternatives • Consider an ally • Consider the costs to each affected party • Assume the audience is pragmatic • Share good examples
Queue Time (wait time)
• Time spent waiting where no value is added. • The input is not transformed in any material way.
Five Forces Analysis (for strategy)
• goal = analyze expected industry average profits • like applied microeconomics
Competitive Positioning Analysis (for strategy)
• goal = understand firm strategy choices (tradeoffs!) • helps understand how firms in same industry make different choice & explain firm-level profits
SWOT Analysis (for strategy)
• most basic tool • simple overview of strategic issues
This mean that businesses need to:
• understand customers' needs and demands • and develop innovative solutions to satisfy these needs.
