Management 371 Final Exam (Test 2)

I'm trying to decide whether I would like to start a company to enter the garbage disposal industry. Sales indicate that while the garbage disposal market is large, it is also growing by 8% annually, which is great. It would take $100M of capital investment to create a garbage disposal facility. That is a lot of money for pretty much anyone, but I have access to that amount. In fact, it is such a large amount, I would say that few other people could afford to enter the industry. One challenge though is that there is only a single company that makes garbage trucks. In addition, because everyone needs their garbage taken away, there are plenty of customers. However, there are few other garbage companies nation-wide and there is little price competition. Conduct a five forces analysis. I. Threat of New Entry II. Supplier Power III. Intensity of Rivalry IV. Customer Power Using just the information in this scenario, what factor(s) are most concerning when entering the industry?

1,3,4

In an extension of Hofstede's study on national culture, the GLOBE studies have expanded the number of dimensions that defines a national culture. Which of the following behaviors would be includeed under one of the GLOBE dimensions? 1. Levels of aggresion in a culture 2. whether a culture is masculine or feminin 3. Loyalty to group goals versus individual goals 4. A focus on perfomance exellence

1,3,4

Fayol's five functions of management

1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Controlling

Economic bubbles occur when individuals make decisions that inflate the price of a resource above its inherent value. An example of this would be the real estate bubble that popped in 2008. Many, many people grew to believe that real estate investment was the way to personal wealth. Despite the innate chaos associated with real estate markets, housing prices inflated as if it was being coordinated by someone due to this common belief. This is an example of ____________

A complex adaptive system

Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture?

Alfredo's culture is low in power distnace

Arnold, CEO of Delos, is constantly reading press releases, ads and new articles about his competition. He regularly checks information about new competitive products and visits trade shows to study his competiton. Arnold is involved in ____________

Competitive intellignece

Which of the following best descibes a situation where there is a high potential for substitues?

Consumers can choose between soda, water, iced tea and many other options to quench their thirst

When Joe checks the number of units that employees completed adn the number of units that have been rejected for quality defects, he is performed which of the following management functions?

Controlling

Dallas, the president of a successful family-owned company, wants to give back to the people of the community. To do this, she consistently donates a significant portion of company profit to local charities, sponsors little league teams, and ensures that the company is acting like a good citizen. What Dallas's company is doing is an example of ________.

Corporate social responsibility

Which of the following would lead to lower profits for an industry?

Cost-based competition

Gas prices are very low right now. This is partially due to the fact that new oil fields have been discovered that have made oil plentiful. This is an example of _______ forces working on the oil industry

Environmental

Tyrell Corporation is putting plans into place to try to accomplish their profitability goals when they realize that their cash reserves are depleted. As a resutl, they cannot pay their electric bill so they can complete their current order. In this case, their lacking what production factor?

Financial Capital

Don is the owner of a multinational fishing business. Why might his company have an advantage over other non-multinational fishing businesses?

His company can catch fish up to the number limited by each of the countries his company operates in instead of being held to the limits of just one country

When a company grows by buying its competitors, it indulges in ___________

Horizontal integration

Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach _____.

Humanist

Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer's best long-term interests; this is reflected by the _____ approach to deciding ethical dilemmas.

Justice

The _____ approach to ethical decision making focuses on ensuring that people have a fair and equitable amount of liberty and equality

Justice

In general, citizens of the United States believe that leaders should be democratic and should share information openly with their followers. According to Hofstede, this is because the culture of the US is characterized by ________

Low power distance

As a teacher in a primary school in scottsdale, arizona. Ruth expects her students to stay in their seats and not question her lessons or how she runs her classroom. This is an example of ________

Power distance

Which of the following is not a resource used by organizationd as an input?

Profit

Although Roland feels that his company needs to be profitable but it should also do things that benefits society. However, he worries about engaging in activities that disctract from his primary responsibility to the owners of the company. His responsibility to the owners of the company is _______________

Profit maximization

Ruth, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach ___________

Provides clues to the meaning of your managers decisions

The corporate director of Dominos uses mathematical tools to aid product ordering and scheduling decisions, this is an example of ____________

Scientific management

Three brothers, Larry, Daryl and Darrell, who own Bottletop Bakery, are concerned becuase Panera Bread is opening a new store just one mile from their shop. They decide to lower the quality of their products which allowes them to lower costs and compete against panera. Thsi allows them to remain at the same level of profitability and maintain their livestyle. This attitude by the brothers reflect a ____________ of ethical decison making

Shareholder

Donna works diligently to be the person that everyone in the organization looks to when it comes time to make big announcements. Donna is acting as a ___________

Spokesperson

The earlies known written account of management principles is in __________

The code of hammurabi

Lauren decided to use mathematical tools to aid employee scheduling in her Grove tailgate setup business in order to aid her labor efficiency. After she started using these tools, her employee work day length doubled to 14 hours and about half of her long term employees quit their jobs. The increase in turnover of employees can be explained by ________.

The focus of scientific management on human beings as machines that can be optimized

Maria, the vice president of sales for a US based shoe company, worries about trade protectionism affecting her shoe sales to Australia. While speaking with her attorney, Alisha, she mentions that "one thing I'm most worried about is the Australian government instituting a complete ban on the importation of shoes from the US" Alisha explains to Maria that what she is describing here is a ________

Trade embargo

Of the following, which is not something managers do regularly?

Troubleshoot communication system

An executive who justifies paying a bribe because it allows his company to provide the greatest good for the greatest number of people adheres to the _____ approach to ethical decision making.

Utilarian

In the early 20th century, automobiles were made one at a time bu craftsmen who could perform every operation necessary to build the car. Henry ford decided to limit the number of tasks each worker performed so each person could become expert in his position. With this practice, Ford introdued ______________

Work specialization

The Tyrell corporation plant in Shangahi, China sells its latex products to Tyrell Import Company in New York City. Vandelay Industries complains to the US government that Tyrell Corp is dumping their Latex products in the US in violation of a trade agreement. In order to resolve this dispute, the US government would bring a case before __________

World Trade Organization

According to the social responsibility perspective, managers should ______

balance returns to shareholders, against legitimate concerns of stakeholders

The process which a company compares its performance with that of high performing organizations is known as ___________

benchmarking

Mateo, an IT manager, has been studying the work methods of each task to increase the productivity of the employees in his department. Mateo is utilizing ____.

bureaucratic management

________ is the extent to which a persons identity is a function of the groups to which he or she belongs and the extent to which group members are expected to look after each other

collectivism

____________, or the ability to think analytically and visualize how the organization works as a whole in order to make good decisions, are importnat for the top levels of management

conceptual skills

When Paula the manager of a landscaping company, calculates the efficiency of her crews in lawns mowed per hour and the instructs them on how to improve their mowing speeds, she is involved with ________

controlling

______________ indicated cash contributions, donations of equitment and products, and support for the volunteer efforts of company employees

corporate philanthropy

When an organization operates several buisnesses to spread the risk, such as a landscaping company that offers not only the landscaping services but also lawn care, snow removal, and other services, that business is utilizing _______ strategy

diversification

In your grandparets time, busines moved slow with little difference between years. That is no longer the case due to ____________

enviormental dynamism

Alice's Pasta Kitchen makes quality pasta and sells its products to customers in other countries. This is an example of ____.

exporting

Melissa, the hotel manager, knows that the number of guests at her hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Melissa needs to work with the hotel department managers on how to cut costs, as a part of her role as ___________

negotiatior

You owe Pet Pants RU which makes pants for pets. It costs you $2 to make the pants, which are then sold for 1.99. You sold 10 pairs today . Pet Pants R is _____________

not profitable

Sally grew her company to six clothing stores, but has finnaly decided to retire and pass the company on to her daughter. Competition in the clothing business has increased and the company has seen a downward trend in sales. Her daughter decides to freshen up the stores with a new coat of paint ans reviralize the clothing stock in the stores. The daugthers plan represents a ___________

retrenchment strategy

To increase profitability, top management of a national retailer needs to decide if it will close several stores. The CEO believes that the owner of the company have a right to profits of the company, even if the CEO has to treat comany employment unethically. This logic is an example of the ______ approach

rights

Edward told a friend, "My primary duty as the CEO of this company is to making money for the shareholders, so if I have to shutdown a plant and send those jobs overseas to save $0.15 a share, then I will." in this situation, Edward is promoting a ________ of ethical management.

socioeconomic view

The idea that there are no true universal rules of managment is the foundational principle of __________

the contingency school

The United states uses government regulations, such as tariffs, embargos, and import quotas, to limit the import of goods and services and protect their US industries against foreign competition. This use of these regulations is known as ____________

trade protectionism

George, a chef, is worried about his status as the top resturant in the city. In order to defend his status, he decides to engage in gathering some competitive intelligence. Which of the following best represents a competitive intelligence activity?

visit other resturants to observe what their doing