MANGT 420: Exam 1

Procter & Gamble is a consumer products company. It launches many new products every year. The team for each new product must understand consumer tastes, distribution, manufacturing, marketing, accounting, and legal issues. P&G creates teams from each of these functional areas for each project. This is called a

NOT functional organization

My knee hurts when I climb stairs and I need to solve the problem. ______ decision-making would involve trying different solutions to see if I can solve the problem.

NOT maximizing

This level of management scans the environments and sets long-term goals and defines strategies to achieve them.

Top management

Walmart serves cost-conscious customers. To keep prices low, it needs efficient operations. It is not particularly worried about adaptability and flexibility. Walmart uses

a bureaucratic organization with functional and geographic departmentalization

When customers perceive the product differentiation as valuable, they will prefer to purchase the business's product over a competitor's products. This is called

a competitive advantage

Burger King is a fast-food restaurant with locations around the world. Because of the cultural and legal differences between countries, the restaurant management uses

a geographic departmentalization

In this class, students are allowed a two-day grace period on late assignments. This is an example of which of the following?

a policy

________ refers to the technique of comparing performance to similar efforts. The comparison may be to other companies in the same industry, to other industries, or to other time periods.

benchmarking

A manager that has the ability to see the big picture and how a decision made in one part of the company will affect another part of the company has this skill.

conceptual

Strategic management

considers the entire organization and how the pieces fit together

What type of plan describes what will happen in a possible--but not expected--situation. For example, what would you call an airport's plan for what do to if a plane crashes on takeoff or landing?

contingency plan

Southwest Airlines gives its employees considerable spending authority to fix a problem. When a flight was delayed, the pilot ordered lunch for the passengers and paid with his Southwest credit card. The company praised him for taking the initiative instead of faulting the expense. This represents

decentralization

Analytics that try to understand and describe what has taken place are ________. The analyst attempts to explain what the data reveals about the events that have occurred, the relationships between different events and market forces, and why the numbers are what they are.

descriptive

A _______ communicates the organization's reason for being.

mission statement

Making decisions on how resources will be allocated across an organization represents this function of management.

organizing

If you stop and take the time to ask yourself if you are being realistic about your skills, perceptions, and judgments, you are more likely to avoid which bias?

overconfidence bias

The management of ThussenKrupp AG set goals to derive the majority of its revenue from elevator-related activities. This is an example of which of the four functions of management?

planning

The second step of the strategy process, Strategy Formulation, includes

prioritizing the tactics most important to achieving the objectives

Many companies forbid smoking at work. This is an example of a

regulation

For most of our decisions, we do not try to optimize the decision but simply make a good decision and move on. This is called

satisficing

Society and culture have great impacts on the business environment. These factors include demographics like population growth, age distribution, and attitudes toward safety and health consciousness. The macro term for these factors in the PESTEL analysis is

social

Valve is a software company that makes video games. Officially, all the employees report to the CEO. There are no other official managers. This means the CEO's ________ is larger than generally recommended.

span of control

The team leader shares the information she received at the management briefing with her team. She is carrying out the information role of ______ as identified by Mintzberg.

spokesperson

SWOT analysis stands for:

strengths, weaknesses, opportunities, threats

im recently spent $4000 replacing the transmission in his car. He has now been told that he either needs to junk the car or replace his engine at a cost of approximately$5000. Jim feels that since he has already invested in replacing the transmission, he needs to go ahead and replace the engine. This is an example of this type of decision-making bias.

sunk cost

Procedures are steps to be followed in established and repeated operations. An investment advisor should write procedures for

the proper method for wiring funds to JP Morgan bank

A company wishes to convince customers that its product or service provides more value to them than a competitor's product or service. That is, it offers a

value proposition

The advertisements for the Apple MacBook show an edge-on image of a MacBook with the caption "MacBook: Light. Years ahead." This refers to the lightweight design and the advanced tech inside. This is Apple's

value proposition

Not all players in an industry will be in direct competition with your organization. The first step in competitor analysis is to decide who your competitor is. For example,

Ford and Porsche both make cars, but Ford does not compete with Porsche

Which of the following does bounded rationality suggest are limitations to rational decision-making? Select all correct answers.

1. Time limitations. 2. Computational and analytical limitations of decision makers. 3. Lack of access to all information and/or flawed or imperfect information.

Which of the following is NOT one of the management roles identified by Henry Mintzberg?

Analytical

Checking to see what is happening, what is working and what isn't and what needs to be continued, improved or changed described this function of management.

Controlling

The following goal does not meet the five characteristics of a S.M.A.R.T. goal. What is wrong with the following goal statement? "Save money from October 1, 2020 until May 5, 2021 to buy a new car."

It does not include a measurement

Which of the following is true regarding Management by Objectives?

MBO are goals set jointly by managers and employees for the employee.

Which of the following is a disadvantage of planning?

Plans inhibit creativity.

Walmart is the largest private employer in the United States and has over 2 million employees. To accommodate all the reporting relationships, Walmart has

a tall hierarchy

A(n)______ defines what needs to be done to achieve a stated goal.

action plan

An instructor who is free to choose the textbook, design the course content, and use any relevant materials when delivering lectures has high levels of

autonomy

Domestic U.S. companies conducting a PESTEL analysis consider national growth, employment, inflation, and interest rates. These are aspects of which macro term?

economic

Sue, a front-line manager, watches to ensure that her production line doesn't produce defective products that have to be scrapped. Sue is an example of a(n) _______ manager.

effective

The Ritz Carlton is a luxury hotel chain. The Ritz has calculated that the lifetime value of a customer is a quarter million dollars. To keep customers happy and coming back, they

empower employees to spend $2000 per incident to help out customers, without asking a manager

The traditional hierarchical structure uses rules and procedures to standardize decisions. Some companies decide to trust the employees and to give them the authority to make decisions, even mistakes. This is called

empowering the employee

E-commerce creates a great deal of data on how consumers interact with a website. L.L.Bean keeps records that show how quickly consumers make decisions, how many alternatives they explore, and whether they stop without completing a purchase. When a manager sees an issue and proposes a solution, the company can easily test the solution. This is an example of

evidence-based decision-making

Managers should use group when making when a decision needs to be made quickly.

false

It is usually important for this level of manager to have good technical skills or an understanding of how to do the job of the workers they supervise.

first-line managers

Yahoo was an enthusiastic adopter of ROWE—results-oriented work environment—where employees are paid for results and not hours. In this spirit, Yahoo adopted ________, so that employees could work from home or shift their hours.

flexible work arrangements

When a decision is made as a group, all the members will

have a far greater understanding of the issues and the reasons behind the decision

This type of skill is important for managers at all levels.

human

Identify the step in the rational decision-making model represented by the following statement: "The car we buy must cost less than $15,000 and include four doors."

identify the decision criteria

An ________ is a method for a company to assess its market position relative to its competitors.

industry analysis