MGMT 309 Exam 2

A Forever 21 retail store creates value and provides place and time utility by bringing together the customer and products made by others. (T/F)

False

A program is similar to a project, but smaller. (T/F)

False

Existing groups or teams can be ad hoc committees, task forces, or newly constituted work teams (T/F)

False

You have decided to go into business for yourself. On your loan application, you state that you intend to open a flower shop in the Village Center Mall. What does this statement on your loan application represent? a. A strategic goal b. An operational plan c. A mission statement d. A strategic plan e. A tactical plan

c. A mission statement

A(n) ____ group is the most common form of a decision-making group.

interacting group

What chart provides a framework for evaluating the relative performance of business in which a diversified organization operates?

BCG Matrix

If a manager makes a decision despite having imperfect information, what model of decision-making is he using?

Behavioral Models

An international strategy in which the company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness is called global strategy. (T/F)

False (this is transnational strategy)

What is a method of evaluating businesses along 2 two dimensions: industry attractiveness and competitive position?

GE Business Screen

A Six Sigma defect rate is six standard deviations above the mean rate. (T/F)

True

A contingency plan is usually done as an action plan. (T/F)

True

A plant manager notices that overtime seems to be excessive. This will stimulate a decision. (T/F)

True

A triathlon uses a product layout. (T/F)

True

An impulsive CEO can turn a deliberate strategy into an emergent strategy. (T/F)

True

Activist investors often try to influence a board to sell off a business unit if it does not have a lot of synergy with other business units. To gain enough influence with the board, these investors usually require

a coalition

Which of the following is NOT necessary for a Management By Objective (MBO) program to be effective? a. Clear goals assigned to employees by management b. Involvement by top management and subordinates c. An implementation consistent with overall organizational goals d. Employees understanding why MBO was adopted e. A formal goal-setting process

a. Clear goals assigned to employees by management

Who has the formal authority and responsibility for an organization's management? a. Line managers b. Chief executive officer c. Board of directors d. Planning staff e. Executive committee members

a. Line managers

Which of the following would be most likely to cause employees to ignore intermediate- and long-term planning? a. Strong emphasis on short-term goals such as quarterly profits b. Overemphasis on quantitative goals c. Extremely challenging goals d. Means-end inversion e. Overemphasis on qualitative goals

a. Strong emphasis on short-term goals such as quarterly profits

Goals are classified according to their ____ when the terms quality, productivity, and innovation are applied to them. a. area b. specificity c. time frame d. function e. level

a. area

An organization's chief executive officer a. is normally involved in all phases of the planning process. b. usually doesn't assume a direct role in the planning process. c. should not be involved in the planning process. d. tends to act as a consultant in the planning process. e. plays more of an advisory role in the planning process.

a. is normally involved in all phases of the planning process

Black Entertainment Television's target audience is male 18 to 34 years old, because advertisers spend more money on younger consumers. High ratings with those viewers is a(n) ____. a. tactical goal b. mission statement c. operational goal d. operational plan e. strategic goal

a. tactical goal

Goals serve four very important purposes. Each purpose is related closely to one of the four functions of management. According to the text, which of the four functions of management is NOT specifically addressed by one of the purposes served by goals? a. Planning b. Organizing c. Leading d. Motivating e. Controlling

b. Organizing

ETS runs a math, science, and technology competition each year for high schoolers. ETS uses a ____ if plagiarism is suspected. It specifies ETS's general response to the situation. a. Project b. Policy c. standard operating procedure d. rule and regulations e. single-use plans

b. Policy

In a manufacturing company, you will most likely find more a. long-term than short-term operational goals. b. long-term than short-term strategic goals. c. short-term than long-term functional goals. d. long-term than short-term tactical goals. e. short-term than long-term strategic goals.

b. long-term than short-term strategic goals

Google founders Sergey Brin and Larry Page developed the search technology then discovered a profitable business model, selling advertising in the form of sponsored links and search-specific ads. The business model is Google's ____. a. tactical goal b. strategic plan c. operational goal d. operational plan e. strategic goal

b. strategic plan

What is the essence of formal goal setting? a. A dynamic mission statement b. A stable internal environment c. Collaborative goal setting d. A tall organization structure e. A wide span of management

c. Collaborative goal setting

____ set tactical goals. a. Line managers b. Staff members c. Middle-level managers d. Stockholders e. Top-level managers

c. Middle-level managers

What is the proper managerial response when there are conflicts among goals in different parts of an organization? a. Minimization b. Maximization c. Optimization d. Purification

c. Optimization

You just wrote a short-range plan in support of an intermediate plan. You based this plan on your best estimate of future environmental conditions. What kind of plan did you write? a. Contingency b. Standing c. Action d. Reaction e. Functional

c. action

Which of the following types of plans is least subject to change because of the time frame involved? a. Strategic b. Functional c. contingency d. Tactical e. Operational

c. contingency

The spread of H1N1 flu led colleges and universities to establish their own ____ for dealing with infected individuals. a. Project b. Policy c. standard operating procedure d. Rule e. Agenda

c. standard operating procedure

According to the planning process described in the text, operational plans flow directly from a. strategic goals. b. strategic plans. c. tactical plans. d. the organization's purpose. e. the organization culture.

c. tactical plans

Businesses with a large share in a market that is not expected to grow are called what?

cash cows

A disadvantage of the ____ decision-making model is that it does not use ethics.

classical

Tactical planning success depends on execution. Proper implementation requires all EXCEPT which of the following? a. The ability to evaluate each course in light of the goal it is intended to reach b. Vertical and horizontal communication c. The ability to monitor ongoing activities d. Clear-cut operational plans e. The appropriate information and resources in the hands of the decision makers

d. Clear-cut operational plans

Which of the following statements most correctly reflects the relationship between goal setting and planning? a. Goal setting enhances planning. b. Planning facilitates goal setting. c. The two processes are independent. d. Each process enhances the other. e. The two processes are the same thing.

d. Each process enhances the other.

The mission statement should include all EXCEPT which of the following? a. Directions b. Premises c. Values d. Tactics e. Purpose

d. Tactics

Which of the following circumstances would most likely result in the use of a planning task force to help develop plans? a. It is desired that line managers be excluded from the planning process. b. The situation involves normal planning activities. c. The organization uses a centralized decision-making process. d. There is a special circumstance to be addressed. e. Management has decided to give the professional planning staff more authority.

d. There is a special circumstance to be addressed.

The most likely reason for the failure of formal goal setting is a. a too-wide span of management. b. a dynamic external environment. c. an ineffective reward system. d. a lack of top management support. e. resource shortages.

d. a lack of top management support

The responsibility for establishing corporate mission and strategy lies with the a. planning task force. b. executive committee. c. chief executive officer. d. board of directors. e. stockholders.

d. board of directors

Managers may have to make a(n) ____ plan in anticipation of changes in technology, the economy, the competition, and the labor market. a. strategic b. tactical c. long-range d. contingency e. integrated

d. contingency

Plans that have an intermediate time horizon and are concerned with getting things done are called ____ plans. a. strategic b. standing c. contingency d. tactical e. operational

d. tactical

Goals are set by a. department, level, and time. b. distance, area, and group. c. time, region, and level. d. time frame, area, and level. e. department, team, and group.

d. time frame, area, and level

AOL eliminated fees to some subscribers to try to attract more users. AOL was using a(n) ____ strategy.

defender

Abercrombie & Fitch uses its ability to manage its supply chain more effectively than most of its competitors to create

distinctive competence

Businesses that have a small share in a market not expected to grow are called what?

dogs

Goals can a. provide guidance and direction. b. improve planning. c. motivate employees. d. provide measure and control. e. All of these choices

e. All of these choices

When we identify strategic, tactical, and operational goals, we are classifying them by a. area. b. specificity. c. time frame. d. purpose. e. level.

e. level

Comcast launched TV One a station geared to African Americans who are 24 to 54 years old. It does not offer much hip hop. The program selection is part of Comcast's ____ plan. a. strategic b. standing c. contingency d. tactical e. operational

e. operational

Google has an algorithm that auctions advertising to the highest bidder. The algorithm is part of the ____ plan for collecting ad revenue. a. strategic b. standing c. contingency d. tactical e. operational

e. operational

An objective is a(n) ____. a. tactical plan b. strategic goal c. operational plan d. strategic plan e. operational goal

e. operational goal

A single-use plan for a large set of activities is called a a. project. b. policy. c. standard operating procedure. d. rule. e. program.

e. program

A(n) ____ strategy is a pattern of action that develops over time in an organization in the absence of missions and goals, or despite missions and goals.

emergent

Which type of layout would you expect to find in the manufacturing plant that makes Clif bars energy bars? product

product

A single-use plan for a large set of activities is called a

program

A single-use plan that has a more narrow scope than a program is called a(n)

project

3M is a highly innovative firm that is constantly seeking new markets and is oriented toward growth and taking risks. It uses a(n) ____ strategy.

prospector

According to the Miles and Snow model of business strategy, which of these strategies is the most appropriate for use in an unstable environment?

prospector

Adolph Coors Company heavily developed Zima brand beer that was targeted to Generation Xers, but Zima gained only a small share of a rapidly growing market. According to the BCG matrix, Zima is an example of a

question mark

Businesses with a small share in a quickly growing market are called what?

question marks

A(n) ____ for Choice Waste Management could be "to develop a recycling campaign for rural communities of less than 1000 customers." It would develop naturally out of a strategic goal seeking "to increase recycling by 10% everywhere."

tactical goal

A product layout MOST likely would be found in organizations

using large-batch (mass production) technology