Exam 1

According to a book by a Harvard Business School professor, some organizational cultures simply cannot meet the challenges posed by innovation and must respond to threats from new technologies by building outside ventures. Digital Equipment is described as having one of those organizational cultures. The company squandered the opportunities presented by the PC revolution even though it was well equipped to build cheap PCs. The company did not have ____.

adaptability

One of the difficulties encountered in recent mergers has been the inability of employees in the two existing organizational cultures to operate harmoniously. In other words, merging organizational cultures often lack the ____ that would increase the likelihood of a merger's success.

adaptability

Small manufacturers are successful often because Wal-Mart agrees to carry their products. If Wal-Mart does not like a price increase, it often will refuse to do business with the manufacturer. At this point, many small manufacturers will offer price reductions because they fear failure if they lose the Wal-Mart account. The relationship between these small manufacturers and Wal-Mart can be described as ____.

buyer dependent

Which skills increase in their importance to success as managers' rise through the managerial ranks?

conceptual skills and the motivation to manage

____ is defined as getting work done through others.

management

Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two-acre yards. The other is offering a similar size of house with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the smaller lots most likely used ____ to determine what homebuyers desired.

proactive customer monitoring

An accountant with ____ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.

technical skill

Which type of skills tends to be most important to the success of lower-level managers?

technical skills

Which of the following is a secondary stakeholder group?

the media

Secondary stakeholders are important to a company because ____.

they can affect public perceptions and opinions

Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver, became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like room to a "soft room" protected by drywall that you could punch a hole through. Graf eventually had to take his concerns to the media before the plutonium was stored once again in a safe location. Graf actions can be described as a(n) ____.

whistleblower

____ is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture a company wants to create.

Behavioral Addition

In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called ____.

Behavioral substitution

Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?

Competitive Products

____ involves deciding who your competitors are, anticipating competitors' moves, and determining competitors' strengths and weaknesses.

Competitive analysis

The ability to perform ____ increases in its importance to success as managers' rise through the managerial ranks.

Conceptual Skills

Southern Living magazine was forced to pull an issue off newsstands and mail warnings to 2.5 million subscribers after it became clear that a recipe for dinner rolls described as "little pillows from heaven" was considered controversial. The management function of ____ was used when the warnings were mailed to subscribers.

Controlling

Which of the following statements about social responsibility is true?

Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.

____ is the accomplishment of tasks that help fulfill organizational objectives.

Effectiveness

At the death of her husband, Miriam McAllister became the CEO of a company that is the world's leading manufacturer of kidney dialysis machines. Even though she was not expected to, she quickly asked company employees to develop ideas for new products that would lead to organizational growth in a changing environment. The decisional role she took on was that of a(n):

Entrepreneur

Which of the following statements about ethics is true?

Ethics is the set of moral principles or values that defines right and wrong for a person or group

When Millard Fuller, who founded the world-renowned Christian housing ministry Habitat for Humanity International with his wife, ended his service as president his role was limited to that of a figurehead. After this change, what functions did Fuller most likely do until he retired?

He performed ceremonial duties like greeting company visitors.

Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all international manufacturers of rubber chemicals. They have all been indicted as participants in a price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. These companies ignored their ____ responsibility to society.

Legal

As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward performing employees and bolster morale during a sales-flattening economic downturn. Radeback is an example of a:

Middle manager

According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open?

Negotiator

After an organization's founders are gone, the organization can use ____ to sustain its organizational culture.

Organizational heros

Which of the following is a component of Coca-Cola's specific environment and will directly influence how it does business?

Pepsi-cola

To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards. Which management function was used to create this program?

Planning

____ stakeholders are any groups that can influence or be influenced by the company and can affect public perceptions about its socially responsible behavior.

Secondary

According to a speech to a forum for retail leaders made by Dr. Hans-Joachim Koerber, "Sustained growth is essential. Sustaining growth is a challenge for virtually every company." Koerber is the CEO of Metro Group, Germany's largest retailer, which has more than 2,400 stores in 30 countries. What informational role did Koerber assume?

Spokesperson

As described by Mintzberg, a marketing manager who was hired by a manufacturer of plumbing fixtures to operate information booths would have the informational role of:

Spokesperson

Over the past 20 years, which of the following is an industry that has experienced both the stable and dynamic environments predicted by punctuated equilibrium theory?

The airline industry

Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas. The new brands grabbed a combined market share of less than 1 percent. Coke's and PepsiCo's ____ would be responsible for determining that the product should be deleted from each of their product lines.

Top management

____ are responsible for creating a positive organizational culture through language and action.

Top managers

The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.

U.S. Sentencing Commission Guidelines

What is social responsibility?

a business's obligation to pursue policies, make decisions, and take actions that benefit society

Which of the following is one of the steps in the process that managers use to make sense of their changing environments?

acting on threats and opportunities

According to the stakeholder model, which primary stakeholder group is theoretically most important to the company?

all primary stakeholders are of equal importance

The manager of a company that produces a soy-based sausage wants to conduct a competitive analysis. During this competitive analysis, he should look at ____.

companies that produce other brands of pork-based sausage Morningstar, a company that has a complete line of soy-based products companies that produce other forms of breakfast meats like bacon individuals who make their own sausage They should look at all of these.

In recent years Kowalski's Markets expanded by purchasing four existing stores. One of the stores was located in Minneapolis's Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had an obligation to provide a neighborhood grocery store to that community. Which of the following is an example of a primary stakeholder group for Kowalski's markets?

customers in the Camden neighborhood

The social responsiveness strategy that could be considered essentially a public relations approach is the ____ strategy.

defensive

For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. By providing the drugs at a fraction of their usual costs, GSK was acting at which level of social responsibility?

discretionary

The informational role managers play when they share information they have collected with their subordinates and others in the company is called the ____ role.

disseminator

IBM has a long-standing "Reinventing Education" program, which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. In the process, the program is actually helping to shape a market of significant interest to IBM. IBM views the program as an investment rather than as a charitable contribution. This is an example of the positive relationship between social responsibility and ____.

economic performance

Lever's most successful product in India is Fair & Lovely, a skin whitening agent that is sold to dark-skinned women in India marketed to help the women find better husbands and better jobs. Lever is emphasizing its ____ responsibility to make a profit and ignoring its ____ responsibility to help women realize that their appearances are superficial.

economic; discretionary

Coca-Cola and PepsiCo spent a total of $75 million to launch two sodas, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse. The new brands grabbed a combined market share of less than 1 percent. Given that the objective of both soft drink manufacturers was to increase their market share, the introductions failed to achieve:

efficiency

First-line managers will most likely have to:

encourage, monitor, and reward the performances of their employees

A ____ for a McDonald's fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules.

first-line manager

Managers who train and supervise the performance of nonmanagerial employees and who are directly responsible for producing the company's products or services are categorized as:

first-line managers

The ____ consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations.

general environment

In terms of external organizational environments, the ____ environment affects all organizations while the ____ environment is unique to each company.

general; specific

The basic model of ethical decision-making ____.

has five steps provides a method for analyzing the ethical climate can be used to determine which principle of ethical decision making is appropriate to the situation begins with a diagnosis of the situation is not accurately described by any of these

A company facing a simple environment would ____.

have few external factors in the environment that affect it

The creation of Ingram Distribution allows booksellers to streamline the ordering and return procedures of their books. Ingram made all the books bookstore owners wanted available in one centralized warehouse. Many new bookstore owners would be unwilling and/or unable to return to the method of ordering books from the individual publishers. This is an example of the creation of ____.

high buyer dependence on a supplier

Typically the most important factor in the relationship between companies and their suppliers is ____.

how dependent they are on each other

Middle managers will most likely have to:

implement the changes generated by top managers

Shell Oil Company's plan to sink an abandoned offshore oil-storage buoy had a massive effect on employee motivation and recruitment. The number of qualified people applying for jobs at Shell plummeted, and many employees looked for positions in other companies. The plan caused much greater harm than Shell's managers had ever imagined it would. In other words, the plan had a much greater ____ than predicted.

magnitude of consequences

The Department of Defense doesn't classify pilferage as a major problem, as its annual inventory losses run $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to ____.

magnitude of consequences

Typical responsibilities for ____ include setting objectives consistent with organizational goals and then planning and implementing the subunit strategies for achieving these goals.

middle managers

Managers can use behavioral addition and behavioral substitution to ____.

modify corporate culture

A high degree of buyer or seller dependence can lead to ____ in which one party benefits at the expense of the other.

opportunistic behavior

Middle managers typically:

plan and allocate resources coordinate and link groups and departments implement changes and strategies generated by top managers monitor the activities of first-line managers who report to them They do all of these

Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. This reflects a change in the ____ component of the general environment.

political/legal

The two general categories of stakeholders are ____ stakeholders and ____ stakeholders.

primary; secondary

____ is a tactic in which an advocacy group actively tries to convince consumers not to purchase a company's product or service.

product boycott

Bayer AG was indicted as a participant in an international price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. Bayer AG paid its fine but did not admit culpability. Instead, the company announced that paying the fine was less costly than litigation. Bayer AG implemented a(n) ____ strategy.

reactive

An emphasis on ____ is likely to decrease opportunistic behavior but will never completely eliminate it.

relationship behavior

Shell's efforts to sink an abandoned offshore oil-storage buoy, were derailed by Greenpeace in Germany, which mounted a well-orchestrated public relations blitz that caused Shell's gasoline sales to plunge by 50 percent at some German stations. This is an example of how ____ stakeholders can influence organizational strategy.

secondary

Due to ____ , the intentional pollution of a metropolitan water supply would have greater ethical intensity than insider trading in which a few participants netted less than $10,000.

social consensus magnitude of consequences temporal immediacy probability of effect all of them

In an article about BP Amoco, its CEO said that the company's commitment to ____ is all about trying to align its policies, values, and behavior with those of the societies in which it operates because, ultimately, superior performance means being in touch.

social responsibility

Various persons or groups with a legitimate interest in a company's actions are called ____.

stakeholders

IAG (Individualized Apparel Group) formally closed its H. Freeman factory in Philadelphia in May. Jim Brubaker, IAG's division president of clothing, informed the workers of this closing one month earlier, in April. Due to ____, this decision produced strong ethical intensity.

temporal immediacy

If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy. Its sentence would be determined by ____.

the U.S. Sentencing Commission Guidelines

Under the stakeholder model, ____ would be an example of a stakeholder group that does not engage in regular transactions with the company and is not critical to its long-term survival but can still affect public perceptions and opinions about the company's socially responsible behavior.

the media

Kodak makes digital cameras and paper for prints. Kodak would view the ubiquity of digital cameras as a(n) ____ in its external environment if it considered how digital cameras affect sales of cameras that use film. On the other hand, Kodak would view the growing popularity of digital cameras as a(n) ____ in its external environment if it considered the amount of Kodak processing paper used in printing pictures made by digital cameras.

threat; opportunity