MGMT EXAM 2 (Chapter 6-8,20)

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. a. prospector b. defender c. reactor d. rescuer e. analyzer

A

A single-use plan that has a more narrow scope than a program is called a(n) a. project. b. policy. c. standard operating procedure. d. rule. e. agenda.

A

A(n) ____ for Mothers Against Drunk Driving could be "to develop an advertising campaign for the summer months that would reach teenagers." It would develop naturally out of a strategic goal "to reduce the number of deaths as the direct result of drunk driving by 10 percent next year." a. tactical goal b. mission statement c. operational goal d. operational plan e. vision

A

A(n) ____ is a financial statement that lists all of the organization's assets and liabilities at a given point in time. a. balance sheet b. revenue statement c. income statement d. financial plan e. capital expenditures budget

A

According to the Miles and Snow model of business strategy, which of these strategies is the most appropriate for use in an unstable environment? a. Prospector b. Defender c. Reactor d. Rescuer e. Analyzer

A

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 a. question mark. b. rising star. c. star. d. barking dog. e. cash cow.

A

AirTran Airlines (formerly ValuJet) has an airplane fleet that is older than those owned by other airlines. This is a potential ____ because it can give the company an image of poor quality or unsafe planes. a. organizational weakness b. strategic limitation c. entropy d. organizational threat e. organizational opportunity

A

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

At the beginning of the planning-controlling process, planning a. plays a major role in shaping the control process. b. is temporarily unrelated to the control process. c. is shaped by the control system requirements. d. decreases organizational flexibility. e. increases the accuracy of organizational processes.

A

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

Booz Allen Hamilton requires employees to use a key that keeps track of how many copies they make on copy machines. Some employees resent the lack of trust. This is an example of a. overcontrol. b. verification procedures. c. resistance to control. d. reducing uncertainty. e. management by objectives.

A

Chelsea Milling Company, maker of Jiffy mixes, has never spent one cent on advertising. This allows Chelsea to keep prices very low. This is an example of a(n) ____ plan. a. strategic b. standing c. contingency d. tactical e. operational

A

Coca-Cola's success in global marketing is the result of its distribution system and its marketing communications, which are two of the company's a. organizational strengths. b. competitive disadvantages. c. organizational opportunities. d. scope. e. SBUs.

A

Extra funds should be channeled to the ____, which is a product with a high share of a fast-growing market. a. star b. cash cow c. rising star d. defender e. question mark

A

Food 4 All, Inc. sold its three nonfood businesses and replaced them with firms in the food industry. Which element of corporate strategy does this choice to compete in the food industry specifically address? a. Scope b. Resource deployment c. Distinctive competence d. Synergy e. Alignment

A

Franke, a Swiss manufacturer of sink and facet systems, sold accessories through retail stores and then added Internet sales. Franke used a. forward vertical integration. b. unrelated diversification. c. backward vertical integration. d. horizontal integration. e. a defender strategy.

A

GE competes in industries ranging from medical devices to appliances to television networks. GE's mixed strategy is an example of ____ strategy. a. corporate-level b. long-term c. business-level d. functional e. short-term

A

GE noticed that financial institutions had large profit margins. When GE entered the industry, its SBU was a. a question mark. b. a winner. c. a loser. d. an average business. e. a profit producer.

A

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

Goals set for a new product launch are called a. tactical. b. strategic. c. operational. d. functional. e. autonomous.

A

If a manager has a participative style, works in a participative organization, and has subordinates who wish to participate, which control structure is most appropriate? a. Decentralized b. Organic c. System 4 d. Bureaucratic e. Laissez-faire

A

In environmental SWOT analysis, the external organizational position is analyzed according to its a. opportunities and threats. b. opportunities and weaknesses. c. strengths and threats. d. strengths and weaknesses. e. return on investment.

A

Jill, a helicopter pilot in the Army, went on a training flight with Marine pilots who had never flown with a woman before. The Marines were visibly uncomfortable. Jill explained to them that even in the Army most of her flights were with men, and those men did not treat her differently. Jill demonstrated ____ in order to put the men at ease. a. a willingness to communicate b. diversity training c. cross-cultural training d. organization culture modification e. designing new organizational practices

A

Krispy Kreme has a distribution network that allows fresh doughnuts to be transported to convenience stores, supermarkets, and Krispy Kreme outlets before dawn so that consumers can enjoy them that same day. This is an example of a(n) ____ for the Krispy Kreme organization. a. organizational strength b. scope extension strategy c. defender strategy d. distinctive strategy e. competitive disadvantage

A

Managers at Timber Industries have just written a plan that allocates a large part of the firm's cash and personnel resources to a new product line. They have done this because they feel they can get a real advantage over their competition and that the new facilities will have a synergistic effect when combined with current facilities. What kind of plan is this? a. Strategic b. Standing c. Contingency d. Tactical e. Operational

A

Marion Laboratories runs chemical analyses of materials to be used in the production process before those materials leave the receiving area of the warehouse. What kind of operations control is this? a. Preliminary b. Feedback c. Concurrent d. Screening e. Yes-no

A

Middle managers are most closely associated with organizational plans at the ____ level. a. tactical b. strategic c. contingency d. operational e. functional

A

On the end-of-year report for Yoplait yogurt, the division manager noted that "the gross margin for the product was lower than expected." This statement indicates that the control system used by Yoplait might lack a. objectivity. b. flexibility. c. accuracy. d. timeliness. e. integration with planning.

A

Perspective employees searching for openings at Merrill Lynch can click to see Merrill Lynch's Equal Employment Opportunity statement. This is an example of which of the organizational approaches to managing diversity? a. Organizational policies b. Diversity training c. Selective recruitment d. Development of a supportive organization culture e. Organizational practices

A

Princeton High School requires all written information sent to parents to be in English and Spanish. This is ____ that organizations can use to demonstrate understanding of the different needs of stakeholders. a. an organizational policy b. diversity training c. selective recruitment d. a supportive organization culture e. an organizational practice

A

Reality shows became prevalent on television after CBS introduced the first Survivor series. That type of television show is now in the maturity stage of its product life cycle. This means a. demand for the product has reached a plateau. b. the number of companies producing reality television shows is declining rapidly. c. more firms are producing more reality shows and are finding it easy to sell the concepts and the filmed shows to the networks. d. production companies find themselves left with shows that the networks do not want unless they differentiate their product. e. None of these choices

A

Reckitt & Colman, Inc. manufactures Spray 'n Wash laundry stain remover, Resolve fabric refresher, and Woolite fabric wash. This is an example of ____ diversification. a. related b. integrated c. unrelated d. consumer e. product

A

San Francisco County, California, is the most diverse county in the nation because people of different nationalities have long been attracted to the area. The proportions of major ethnic groups are closer to being equal than anywhere else. Which of the following factors most contributed to the diversity of this county? a. Changing demographics b. Globalization c. Legislation d. Downsizing e. Desire to improve quality of workforce

A

Screening controls a. take place during the transformation process. b. involve interviewing potential employees. c. are the same as preliminary control. d. determine organizational flexibility. e. determine accuracy of organizational standards.

A

Secretary of Defense, Gates, shifted the pentagon's budget from expensive, high tech weapon systems to timely, responsive systems. Small defense contractors were more responsive to the change and won more contracts. In this case ____ control helped the small companies. a. structural b. hierarchical c. strategic d. managerial e. operations

A

Some public schools require uniforms for students. One of the benefits is it evens the playing field socially for kids from different economic backgrounds. This is an example of a. integration of the informal network. b. full structural integration. c. absence of discrimination. d. pluralism. e. low levels of intergroup conflict.

A

Starbucks store managers decide how to customize the snacks to the local market. They make the ____ plan. a. operational b. standing c. single-use d. contingency e. tactical

A

Stephanie makes hand-crafted jewelry. She knows the amount of inventory she brings to a show and how long it takes her to make each piece. She is calculating what she needs to do to get ready for her next show. She is making a ____ budget. a. labor b. production c. space d. balance sheet e. capital expenditure

A

Strategy formulation is a. a set of processes involving the organization's strategies. b. the method by which strategies are operationalized. c. the same as goal development. d. also called corporate-level strategy. e. a form of functional strategy.

A

The Toyota Prius initially had a waiting list and was excluded from all rebate offers. The Toyota Prius was at which stage of the product life cycle? a. Introduction b. Growth c. Maturity d. Decline e. Extinct

A

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan, tuition and fees, alumni contributions, and research grants. This is an example of a(n) ____ budget. a. revenue b. output c. capital expenditures d. balance sheet e. cash-flow

A

The Wal-mart greeter, who offers customers a cart as they enter the store is part of the ____ control. a. preliminary b. screening c. postaction d. cybernetic e. feedback

A

The ____ is the single most important individual in any organization's planning process. a. chief executive officer b. chief legal counsel c. head of planning task force d. chief financial officer e. vice president of planning

A

The ____ shows an organization's bottom line (profit or loss) and summarizes activities over a period of time. a. income statement b. balance sheet c. internal audit d. operations budget e. pro forma statement

A

The starting point in formulating strategies is usually a. a SWOT analysis. b. goal implementation. c. operational plans. d. a mission statement. e. a control function.

A

To what part of a system are preliminary controls applied? a. Resources b. Transformation processes c. Outputs d. Feedback elements e. Subsystems

A

Using the Boston Consulting Group matrix, SBUs are classified on the basis of a. market share and market growth rate. b. market share and cash generation potential. c. market growth rate and financial strength. d. financial strength and product life cycle. e. cash generation potential and product life cycle.

A

Warsteiner beer has the slogan "Life is too short, to drink cheap beer." This slogan supports a ____ strategy. a. differentiation b. cost leadership c. reactor d. prospector e. guerrilla

A

What characteristic of effective control systems is lacking when a control system reports production output as being better than average, satisfactory, marginal, or unsatisfactory? a. Objectivity b. Flexibility c. Accuracy d. Timeliness e. Integration with planning

A

When Turner Broadcasting purchased a movie studio with its vault of old movies, it was an example of a(n) ____ diversification strategy. Turner was able to get a source for movies to show on its various cable television stations. a. related b. integrated c. unrelated d. functional e. institutional

A

When a team is chosen for an important assignment the composition of the group will be noted by employees. It can indicate if the organization has a. full structural integration. b. pluralism. c. reverse discrimination. d. cultural identification. e. equality.

A

When classifying controls on the basis of the resources involved, we find that one class of resources is related to the control of all other resource classes as well. Which resource class overlaps all other classes? a. Financial b. Information c. Physical d. Human e. Technological

A

When the external labor market's composition is reflected by that of an organization, ____ has occurred. a. full structural integration b. pluralism c. reverse discrimination d. cultural identification e. equality

A

Which of the following is NOT a method managers can use to change organization culture? a. Reward people who behave in a manner consistent with the existing culture b. Adopt new slogans c. Hire outsiders into management positions d. Stage new ceremonies e. Break with tradition and host an annual awards banquet

A

Which of the following is NOT a type of operating budget? a. Production b. Sales c. Expense d. Profit e. Revenue

A

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

Which of the following is NOT one of the characteristics of an effective control system? a. Developed and implemented by top management b. Flexibility c. Integrated with planning d. Developed with accurate input e. Timeliness

A

Which of the following organizations would face the most difficulty in developing long-range plans? a. Those with dynamic, complex environments b. Those with dynamic, simple environments c. Those with stable, complex environments d. Those with stable, simple environments e. None of these choices

A

Which of the following statements about the resource acquisition argument for diversity is TRUE? a. Organizations that manage diversity and multiculturalism effectively are better able to attract qualified employees from women and minorities. b. A manager can reduce employee absenteeism and turnover by learning how to manage diversity and multiculturalism. c. Diversity and multiculturalism are accompanied by an increased pool of information. d. Organizations with diversity and multiculturalism are generally more creative and innovative than other organizations. e. Organizations with diversity and multiculturalism are better able to understand different market segments than are less diverse organizations.

A

Which of the following statements does NOT describe a reason why interpersonal communication can be difficult in a diverse workforce? a. Employees with different backgrounds may encode and decode messages similarly. b. Words may have different meanings in different cultures. c. Words may have different meanings to younger workers than to older workers. d. Workers may speak a different language than their supervisor. e. Symbols of respect may differ from generation to generation.

A

Which of the following statements is TRUE concerning what happens to control as the level of uncertainty increases? a. Measurements need to be taken more frequently. b. Controls can become less focused. c. Employees are less likely to resist controls. d. The control system becomes more objective. e. The importance of adequate controls decreases.

A

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

Which of the strategy types in the Miles and Snow model avoids long-term commitment to any single technology, is highly decentralized, and has a propensity to take risk? a. Prospector b. Defender c. Reactor d. Rescuer e. Analyzer

A

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

YouTube has high market share and high market growth rate, which would make it a ____. However it still does not have a profitable business plan. a. star b. question mark c. dog d. cash cow e. rising star

A

____ involves balancing and reconciling possible conflicts among goals. a. Optimization b. Benefaction c. Maximization d. Assimilation e. Elimination

A

____ plans are the organizational plans that are broadest in focus and have the longest time frame. a. Strategic b. Functional c. Contingency d. Tactical e. Operational

A

____ ratios assess the ease with which the assets of the organization can be converted into cash. a. Liquidity b. Profitability c. Debt d. Operating e. Activity

A

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

A

____ strategies in the Miles and Snow model represent a middle-of-the-road approach to business strategy. a. Analyzer b. Defender c. Cash cow d. Prospector e. Star

A

____ strategy refers to a mid-range strategy that attempts to move into new market areas at a deliberate and carefully planned pace. a. Analyzer b. Prospector c. Targeted d. Defender e. Differentiation

A

A company that carefully evaluates its raw materials is using a ____ control. a. screening b. preliminary c. postaction d. cybernetic e. yes-no

B

A contingency plan a. is used in conjunction with the organization's originally developed plan. b. is developed after considering contingency events. c. can be used only at a strategic level. d. makes an organization less flexible. e. is unnecessary for organizations that face a dynamic environment.

B

A pluralistic organization is one that has heterogeneous membership and takes steps to achieve full ____ of people who are different from the dominant group. a. assimilation b. integration c. networking d. identification e. commiseration

B

A properly designed control system is important to an organization because it can be used to a. maximize costs. b. anticipate, monitor, and respond to changing circumstances. c. modify inappropriate organizational focus. d. modify organizational standards. e. reduce resistance to change.

B

A waitress who returns to check on you after you have tasted the food but before the bill is part of a ____ control. a. preliminary b. screening c. postaction d. cybernetic e. feedback

B

A(n) ____ strategy is a plan chosen and implemented to support specific goals, such as an increase of market share by 5 percent. a. valid b. deliberate c. reliable d. emergent e. synergistic

B

An organization could have a high level of intergroup conflict if a. its employees understand each other's diverse cultures. b. the management uses a closed-door policy. c. employee empathy is encouraged. d. employees have tolerance for other employees. e. any conflict that arises is over meaningful and work-related issues.

B

As the product being produced becomes more complex, which of the following types of operations controls would logically become more important? a. Preliminary b. Screening c. Postaction d. Preliminary e. Feedback

B

At a meeting last week, Steve had to pretend he was a woman during a group discussion. This was probably part of which of the following? a. OJT b. Diversity training c. Cross-cultural training d. Organization culture modification e. Designing new organizational practices

B

Chelsea Milling Company produces Jiffy Mix and other mixes. The company is the fourth largest baking mix producer, has never spent a cent on advertising, and sells its product for one-half to one-third the cost of its competitors. The company pursues a(n) ____ strategy. a. guerrilla b. overall cost leadership c. focus d. differentiation e. defender

B

Companies should invest carefully and monitor closely a ____, which is a product that has a small share of a growing market. a. cash cow b. question mark c. defender d. star e. rising star

B

Deirdre has made out a financial budget that shows her personal income from all sources and how it will be spent, invested, and saved for the next year. This is an example of a(n) ____ budget. a. labor b. cash-flow or cash c. capital expenditure d. expense e. revenue

B

ETS runs a math, science, and technology competition each year for high schoolers. ETS uses ____ a. a project. b. a standing plan. c. standard operating procedures. d. rules and regulations. e. an agenda.

B

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

Facebook partnered with Nielsen Co. to poll users about ads on Facebook. Nielsen then packaged the information for advertisers. This was a response to advertiser complaints about the effectiveness of ads on the social network. Verifying ad effectiveness on Facebook is a ____ control for the advertisers. a. screening b. preliminary c. concurrent d. postaction e. feedback

B

For years, the Tabasco Company used a(n) ____ strategy and manufactured only its famous hot sauce. a. defender b. single-product c. aggregation d. forward integration e. backward integration

B

General Plastics Corporation instituted a new absenteeism control policy that took effect the first day of June. It expects the new policy to result in a 25 percent reduction in absenteeism the first year. Like the previous policy, the new program counts vacation days as absenteeism. On the first of September, the personnel director evaluated the results of the program for the first three months and was disappointed to find that absenteeism had dropped only half of 1 percent. What is the likely problem? a. Employees are resisting control. b. The indicator of success was inappropriate. c. Control is inappropriately focused. d. The standard is not specific enough. e. A reduction of 25 percent is too much to hope for.

B

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

Goals set for broad general issues are called a. tactical. b. strategic. c. operational. d. functional. e. autonomous.

B

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

Greg has just completed work on a plan to implement one of the major objectives of the company's strategy. The plan deals with specific time constraints and outlines specific human resource allocations for implementing the plan. What kind of plan is this? a. Strategic b. Tactical c. Long-range d. Contingency e. Integrated

B

Howard Schultz traveled in Italy and liked the coffee. He founded Starbucks with a plan to introduce American coffee drinkers to this Italian-style drink. This is an example of ____. a. lack of organizational synergy b. organizational opportunity c. sustained competitive advantage d. distinctive competency e. organizational threat

B

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

In a small community in Michigan, there are two funeral homes. One of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home chose to make similar customer contact, the competitors would have a. differential advantage. b. strategic imitation. c. emergent strategy. d. distinctive competence. e. competitive advantage.

B

Internal audits tend to be a. more expensive than external audits. b. more specific than external audits. c. more political than external audits. d. more focused on efficiency. e. All of these choices

B

Kraft Foods Inc. offered to buy Cadbury. This is an example of a(n) ____ plan. a. operational b. strategic c. tactical d. contingency e. standing

B

Kraft Foods Inc. set a(n) ____ goal to expand its presence in Europe. a. tactical b. strategic c. operational d. functional e. autonomous

B

Many organizations develop a professional planning staff with overall responsibility for the planning process. Which of the following is NOT a reason for using a planning staff? a. The need to integrate and coordinate planning activities b. The need to reduce coalition formation in the organization c. The fact that managers often lack the required tools and skills to do a good job of planning d. The fact that managers tend to focus only on what is good for their part of the organization e. The need to reduce the workload of individual managers

B

One barrier to effective communication is the filtering of upward communication. Which characteristic of effective control systems would this affect? a. Flexibility b. Accuracy c. Accountability d. Timeliness e. Objectivity

B

One characteristic of an SBU classified as a star is a. a large share of a low-growth market. b. a large amount of short-run cash support. c. a very small amount of money for growth and expansion. d. probable divestiture by the corporation. e. the potential to achieve a large market share.

B

Organizational control is a. the regulation of management activities to increase leadership. b. the regulation of organizational activities to facilitate goal attainment. c. the system that monitors and manages via a self-regulating mechanism. d. a mechanism for maintaining the status quo. e. a device for determining where the organization should be at some future time.

B

Participation in a control system a. causes employees to resist control. b. is a technique for overcoming resistance to controls. c. is a criterion for making a control effective. d. is a step in the control process. e. is an action taken after evaluation control.

B

Paul, a young manager is full of energy and impatience. His communications manager is two years from retiring and does not want to make "mistakes." Paul understands the caution, but does not like it. He has a. conflict resolution. b. tolerance. c. empathy. d. entropy. e. synergy.

B

Pregna is a vegetarian. But she passes no judgments on meat eaters and even prepares meat for her family. She demonstrates ____ for others. a. conflict b. empathy c. entropy d. pluralism e. monoculturalism

B

Secretary of Defense, Robert Gates, wanted more cheaper aircraft. Acquisition officers began using price as a ____ control before entering contracts negotiations. a. screening b. preliminary c. postaction d. cybernetic e. yes-no

B

Some investment firms require traders to take two consecutive weeks of vacation, so the traders books be reviewed. This is an example of a. management development. b. verification procedures. c. resistance to control. d. reducing uncertainty. e. management by objectives.

B

Suranga Chandratillake started Blinkx, an Internet video search company. He created Blinkx to be flexible and ready to respond to environmental change. The diverse culture at Blinkx supports this need. Suranga subscribes to the ____ argument. a. resource acquisition b. systems flexibility c. cost d. marketing e. creativity

B

The ____ argument supports the idea that if managers work effectively with a diverse group the organization as a whole will respond more effectively to its changing environment. a. resource acquisition b. systems flexibility c. cost d. marketing e. creativity

B

The ____ of the Helene Cody Foundation is to "to inspire youth to volunteer, to better their communities and themselves." a. tactical plan b. mission statement c. operational goal d. operational plan e. strategic goal

B

The aircraft engine division of General Electric, which competes with Pratt & Whitney, has its own mission and a strategy that often differs considerably from other parts of the corporation. What is a division such as this called? a. An independent business b. A strategic business unit c. An entrepreneurship d. A functional department e. A competitive unit

B

The college admissions board required students to have certain grade point averages and SAT scores to be accepted at the school. What form of operations control do these requirements represent? a. Screening b. Preliminary c. Postaction d. Cybernetic e. Yes-no

B

The last step in the control process is to a. establish standards. b. determine the need for corrective action. c. compare performance against standards. d. measure performance. e. maintain the status quo.

B

The primary concern of strategy implementation is a. the content of the strategy. b. how the strategy is operationalized and executed. c. goal development. d. corporate-level strategy. e. functional strategy.

B

The purpose of control is to a. determine where the organization should be at some point in the future. b. assess organizational performance relative to some desired goal. c. determine how to structure the organization so as to carry out organizational plans. d. get the organization's employees to work toward organizational goals. e. verify that the organization's strategy is appropriate for its environment.

B

The starting point for managing diversity in an organization is a. diversity training. b. organizational policies. c. federally sponsored affirmative action programs. d. selective recruitment. e. the development of supportive organization culture.

B

The strategic goal set forth by Central Ice Machine Company was to be the leading seller of ice machine replacement parts in the United States. As part of its ____ plan, it set up distribution contracts with six manufacturers of refrigeration units. a. strategic b. tactical c. long-range d. contingency e. integrated

B

The term objective as it relates to controls means that the controls a. can be used to identify hidden costs. b. are quantifiable. c. are realistic. d. are focused on the right measures. e. provide information when needed.

B

To find the right host for a game show, a television production company/network will spend hours of time and manpower trying to find just the right personality who will be interesting enough for the typical audience without detracting from the actual game. This is an example of a ____ control. a. screening b. preliminary c. concurrent d. postaction e. feedback

B

Vic Clark is a sales manager. Every December he requires his salespeople to set their sales goals for the following year, or they cannot attend the annual sales meeting in Jamaica. Clark's action reflects which barrier to goal setting and planning? a. Inappropriate goals b. Improper reward system c. Dynamic and complex environment d. Reluctance to establish goals e. Resistance to change

B

What is wrong with a compensation system that rewards members of the sales force for the number of sales calls made without also looking at the average dollar sales per call? a. Lack of accountability b. Inappropriate focus c. Undercontrol d. Overcontrol e. Lack of standards

B

When one disposable shaver maker introduced a three-blade shaver, the other introduced three blades within months. They repeated the process with four blades. This is an example of a. product aping. b. tactical imitation. c. product emulation. d. product integration. e. strategic imitation.

B

When someone understands and empathizes with another, but still does not necessarily like it, they are demonstrating a. conflict resolution. b. tolerance. c. empathy. d. entropy. e. synergy.

B

Where would you expect to find the following information: "XYZ Corporation has $46 million dollars worth of debt"? a. Income statement b. Balance sheet c. Internal audit d. Operations budget e. Pro forma statement

B

Which of the following areas does a well-conceived strategy address? a. The organizational chart b. Scope c. Suppliers and distributors d. Pricing strategy e. Tactical goals

B

Which of the following directly follows from the organization's mission? a. Operational plans b. Strategic goals c. Tactical goals d. Tactical plans e. Functional plans

B

Which of the following does NOT typically shape an organization culture? a. Past successes b. The organization design c. The history of the organization d. Shared experiences e. Symbols, stories, and slogans

B

Which of the following is NOT an example of a basis of relatedness for implementing related diversification? a. Similar technology b. Similar human resources c. Common brand name and reputation d. Common customers e. Common distribution and marketing skills

B

Which of the following statements about the cost argument for diversity is TRUE? a. Organizations that manage diversity and multiculturalism effectively are better able to attract qualified employees from women and minorities. b. A manager can reduce employee absenteeism and turnover by learning how to manage diversity and multiculturalism. c. Diversity and multiculturalism are accompanied by an increased pool of information. d. Organizations with diversity and multiculturalism are generally more creative and innovative than other organizations. e. Organizations with diversity and multiculturalism are better able to understand different market segments than are less diverse organizations.

B

Which of these is concerned with the changes in the sales volume of a product during its existence? a. Portfolio approach b. Product life cycle approach c. Environmental SWOT analysis d. Miles and Snow model e. Maslow's hierarchy

B

____ is NOT a characteristic of a truly multicultural organization. a. Pluralism b. Isolation of informal networks c. Full structural integration d. Absence of prejudice e. A low level of intergroup conflict

B

____ is the proportion of the market controlled by the product. a. Market growth rate b. Relative market share c. Competitive advantage d. Tactical scope e. Functional reach

B

A Day without Immigrants was organized in cities and companies throughout the United States. Tyson closed several meat processing plants for the day. Tyson created a(n) ____ plan to address the absence of workers. a. contingency b. standing c. action d. reaction e. functional

C

A plant manager is told that she has 8,000 labor hours to allocate in a week. This is an example of a(n) ____ budget. a. operations b. financial c. nonmonetary d. output e. expense

C

A year before the census, the federal government hired tens of thousands of temporary workers to prepare for the count. This is an example of a(n) ____ plan. a. contingency b. standing c. action d. reaction e. functional

C

A(n) ____ for Mothers Against Drunk Driving could be to run an ad every week during American Idol. It would develop naturally out of a tactical goal "to develop an advertising campaign for the summer months that would reach teenagers." a. vision b. mission statement c. operational goal d. operational plan e. strategic goal

C

A(n) ____ is a financial statement that presents a picture of the organization's financial performance over a period of time as opposed to a single point in time. a. balance sheet b. operating budget c. income statement d. sales budget e. capital expenditures budget

C

Abercrombie and Fitch sells young adult clothing with overtly sexual advertising at high prices with poor quality sewing. It uses a(n) ____ strategy. a. guerrilla b. overall cost leadership c. focus d. differentiation e. defender

C

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

According to the text, what are the two broad schemes by which controls can be classified? a. Level and cost b. Cost and focus c. Area and level d. Level and complexity e. Complexity and focus

C

After so many people complimented Robin Hoder's honey mustard, she decided to start a small business called Naples Valley Products to manufacture and market her mustard. At this juncture, Hoder was engaged in a. strategic marketing. b. tactical implementation. c. strategic formulation. d. corporate strategy. e. competitive response.

C

American Greetings Corporation reported that "its sales have been hurt by people increasingly using the Internet to communicate" and by "lower-priced competition including Hallmark's Warm Wishes line of 99-cent cards." As a result, it decided to lay off 13 percent of its full-time workforce. This need for cost-cutting measures would have been detected by its ____ control system. a. operations b. organizational c. strategic d. functional e. environmental

C

An organization that has achieved high levels of diversity with few problems and that can capitalize on the advantages of being diverse is called a(n) ____ organization. a. global b. heterogeneous c. multicultural d. paternalistic e. ethnocentric

C

Assuming an SBU retained its share of the market, how would it be classified if it were a star and its market subsequently became a low-growth market? a. Still a star b. A defender c. A cash cow d. A dog e. A question mark

C

Bausch & Lomb has a large share of the growing contact lens market. Bausch & Lomb is an example of a a. cash cow. b. prospector. c. star. d. question mark. e. dog.

C

Brokerage firms on Wall Street are now closely monitoring research analyst's e-mails. If the analysts view this as inappropriate, the control system will be characterized by a. overcontrol. b. no verification procedures. c. resistance to control. d. reducing uncertainty. e. management by objectives.

C

Chaparral Steel is so efficient in its steel production and casting processes that it is the only U.S. steel producer that regularly exports its products to Japan. This is an example of Chaparral Steel's a. organizational opportunity. b. common strength. c. distinctive competence. d. resource deployment. e. scope.

C

Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a restaurant chain. This is an example of ____ diversification. a. related b. integrated c. unrelated d. consumer e. product

C

Coca-Cola sells soft drinks, bottled water, and sports drinks. This is an example of a. alignment. b. synergy. c. scope. d. resource deployment. e. entropy.

C

Ford once supplied every part to its automobiles, except the rubber (it even tried to grow the trees, to no avail). This is an example of a. forward vertical integration. b. unrelated diversification. c. backward vertical integration. d. horizontal integration. e. a defender strategy.

C

Fox News covers stories from a right of center political point of view. They use a(n) ____ strategy. All reporters say they have no bias. a. prospecting b. emergent c. focus d. cost leadership e. guerrilla

C

Goals set for short-term issues are called a. tactical. b. strategic. c. operational. d. functional. e. autonomous.

C

Gymboree sells high quality children's clothing at high prices. It uses a(n) ____ strategy. a. prospecting b. emergent c. differentiation d. cost leadership e. guerrilla

C

If Suzlon Energy Ltd. wants to focus on the strength of its wind-turbine division, it will use ____ ratios. a. coverage b. debt c. operating d. return e. activity

C

If the marketing department adopts a strategy calling for substantial test marketing, aggressive advertising campaigns, and inducing consumer product trials, which of the following is most likely the business strategy being used by the company as a whole? a. Analyzer b. defender c. Prospector d. Cost leadership e. Focus

C

In their book In Search of Excellence, Peters and Waterman found that successful companies "stuck to their knitting." In other words, they concentrated on those things that they do well. To which component of organizational strategy does this idea most directly relate? a. Organizational opportunity b. Common strength c. Distinctive competence d. Resource deployment e. Scope

C

Inappropriate goals a. focus almost entirely on qualitative factors. b. are not tied to the organization's reward system. c. are not consistent with the organization's mission. d. focus almost exclusively on qualitative factors. e. are not viewed as impossible for employees to achieve.

C

John Hamann began his company making herb vinegars from a recipe his grandmother had given him. As demand grew, he had to buy a large commercial kitchen. Which of the following ratios would a banker have been most interested in before allowing Hamann to borrow $500,000? a. Liquidity ratios b. Profitability ratios c. Debt ratios d. Operating ratios e. Activity ratios

C

Jordache was once a dominant brand in the American blue-jean market, commanding high prices. Now Jordache is sold in Wal-Mart. This strategy is called a. prospector. b. defender. c. reactor. d. rescuer. e. analyzer.

C

Kmart has struggled for years competing with Wal-Mart and Target. It tried celebrity labels, but that did not help. It can not lower prices as low as Wal-Mart, because it does not have the cost cutting expertise. This is an example of a(n) ____ strategy. a. prospector b. defender c. reactor d. rescuer e. analyzer

C

Krispy Kreme sells doughnuts. It markets them primarily to people who want something quick and sweet for breakfast or as a morning snack. This is an example of Krispy Kreme's a. industry niche. b. synergy. c. scope. d. resource deployment. e. entropy.

C

Lands' End prides itself on quality control. If a garment is not the right color or the stitching has flaws, Lands' End sells it at a reduced price in the Not-Quite-Perfect section of its website. This is an example of a ____ control. a. preliminary b. screening c. postaction d. cybernetic e. feedback

C

MNCs can exploit advantages over domestic businesses. Which of the following in NOT an advantage? a. Location efficiencies b. Economies of scope c. Multiple accounting systems d. Multi-market flexibility e. Worldwide learning

C

Marmot Mountain produces high-quality outerwear and sleeping bags. When distribution problems arose, it talked to its retailers to learn how its performance could equal the standards the retailers wanted. Getting feedback from retailers who sell its products is an example of ____ control. a. preliminary b. screening c. postaction d. cybernetic e. feedback

C

News Networks operates in a very dynamic environment. Its managers have decided to be on the lookout for new market and product opportunities and to take advantage of them when they arise. In addition, they have organized the firm along bureaucratic lines based on the president's desires. You would probably be safe in predicting that News Networks will be a(n) a. defender. b. strategic failure. c. prospector. d. analyzer. e. reactor.

C

One action that an organization may take with respect to an SBU classified as a dog is to sell it. It seems odd that one organization would want to buy another's dog. Which of the following might explain such a purchase? a. A need to generate large amounts of short-run cash b. A desire to expand into a rapidly growing market c. Possible synergistic effects on the buying organization d. A decision to adopt a retrenchment strategy e. A desire to complete a hostile takeover of the seller

C

One problem with qualitative goals is that they a. reward inappropriate goal setting. b. are easily measured, so managers tend to overuse them as performance benchmarks. c. are difficult to measure and thus are not good indicators of success or failure. d. are usually inappropriate when viewed in the context of the organization's mission. e. usually involve unattainable performance standards.

C

Overcontrol is most problematic in areas dealing with ____ resources. a. financial b. physical c. human d. information e. international

C

Pea-in-the-Pod is a small chain of retailers that sell clothes only to pregnant women and new mothers. Its quality materials, innovative designs, reasonable prices, and ____ strategy create a competitive advantage for the chain. a. guerrilla b. overall cost leadership c. focus d. emergent e. defender

C

Plants Alive rents and maintains plants for businesses and homeowners who love beautiful plants but do not have the time to care for them. The small business could set a(n) ____ to create a newspaper advertisement for a spring sale within the next four weeks. a. tactical goal b. mission statement c. operational goal d. operational plan e. strategic goal

C

Postaction control is most appropriate when the a. time between goal setting and attainment is short. b. product being produced is nonperishable. c. product being produced is simple and routine. d. production process is very complicated. e. volume of product output is extremely large.

C

Smart cars are the only cars that can park perpendicular to the curb, which is especially beneficial in cities. This is an example of a. scope. b. synergy. c. distinctive competence. d. competitive response. e. resource deployment.

C

Some managers at J.P. Morgan Chase viewed the CEO monitoring all of their expenses as too much involvement. They saw it as a. extreme objectivity. b. inappropriate focus. c. overcontrol. d. excessive accountability. e. inflexibility.

C

Standards used in organizational control are most like a. policies. b. strategies. c. goals. d. rules. e. standing plans.

C

Texas Instruments got into the watch business as a result of developing a technology that radically changed the nature of wristwatches. Its strategy included the use of new equipment and automation to drive down costs. This example best represents which component of strategy? a. Scope b. Synergy c. Distinctive competence d. Competitive response e. Resource deployment

C

The credit crisis and the Federal Reserve's response to it faced criticism from Congress. The Treasury Department requested a review of the central bank's structure and governance. There is now broad support for auditing the Fed using the Government Accounting Office. The change in the economic and political environment of the Fed means the Fed needs to adapt its ____ control. a. structural b. hierarchical c. strategic d. managerial e. operations

C

The credit crisis and the Federal Reserve's response to it faced criticism from Congress. The Treasury Department requested a review of the central bank's structure and governance. There is now broad support for auditing the Fed using the Government Accounting Office. This example illustrates how a control system can be used to a. minimize costs. b. limit the accumulation of errors. c. adapt to the environmental change. d. cope with wide spans of management. e. All of these choices

C

The local, state, and federal response to hurricane Katrina highlighted problems at each level. In the end, more than 1,000 people died. This illustrates a. organizational complexity. b. how changing conditions are influenced by innovation. c. why control is necessary to reduce the accumulation of errors. d. how control helps organizations respond to changing standards. e. how organizations cope with multiple control standards.

C

The purpose of bureaucratic control is to a. enhance employee participation in the control function. b. produce performance above minimum acceptable standards. c. get employee compliance. d. increase group performance. e. increase employee self-control.

C

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

The two most common types of operational plans are a. long-range and short-range. b. functional and hierarchical. c. standing and single-use. d. policies and programs. e. contingency and integrated.

C

The ultimate test of an organization's commitment to managing diversity and multiculturalism is its a. organization chart. b. employee recruitment and selection process. c. organization culture. d. employee absenteeism and turnover. e. organization design.

C

Toyota is the most successful automaker selling hybrid vehicles. Toyota uses a. differentiation, focus. b. overall cost leadership. c. differentiation. d. focus. e. cost leadership, focus.

C

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

What is the problem with a university reward system that encourages faculty members to publish numerous research articles but fails to consider the quality of the articles? a. Overcontrol b. Rewarding inefficiency c. Inappropriate focus d. No accountability e. Too restrictive

C

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

What kind of control is a year-end sales report? a. Preliminary b. Screening c. Postaction d. Cybernetic e. Feedback

C

When Boeing bought the aviation parts and services company Aviall, it stated that it expected to have no initial change in earnings and the following year a modest gain. It was a. attempting to control its external environment. b. attempting to be timely with its controls. c. integrating planning with control. d. relying on bureaucratic controls. e. None of these choices

C

When Secretary of Defense, Robert Gates, shifted defense acquisitions to cheaper weapon systems, the large defense contractors like Boeing and Lockheed had to shift their ____ control systems. a. operations b. organizational c. strategic d. functional e. environmental

C

Which of the following is NOT a characteristic of effective controls? a. Flexibility b. Accuracy c. Accountability d. Timeliness e. Objectivity

C

Which of the following is NOT a strategy for managing diversity? a. Organizational policies b. Diversity training c. Selective recruitment d. Supportive organization culture e. Organizational practices

C

Which of the following is NOT an advantage inherent in related diversification? a. Reducing business dependence b. Reducing overhead c. Scope d. Synergy e. Reducing risk

C

Which of the following is NOT one of the areas on which strategic control should focus? a. Structure b. Leadership c. Competitive advantage d. Human resources e. Technology

C

Which of the following is the BEST example of a single-use plan? a. The "No Smoking" sign on the restaurant door b. The sign requiring all workers to wash their hands after visiting the restroom c. The plan to build an equestrian site for the 2008 Olympics d. The day-care plan for dealing with a toddler who hits another e. The plan for how McDonald's should cook its french fries

C

Which of the following is the BEST example of a standard operating procedure? a. The "Do Not Litter" sign in the city park b. The high school plan for dealing with a student with a learning disability c. The Dairy Queen restaurant's plan for how to make a banana split d. The way students are selected for college admission e. The plan to build an equestrian site for the 2004 Olympics

C

Which of the following statements does NOT describe a weakness associated with budgeting? a. Some managers apply budgets too rigidly. b. Developing budgets can be very time consuming. c. Budgets link planning and controlling. d. Budgets may limit innovation and change. e. Budgets may make it impossible to procure funds to take advantage of an unexpected opportunity.

C

Which of the following statements regarding diversity in organizations is FALSE? a. Diverse groups may generate significantly more productivity than homogeneous groups. b. Organizations that manage diversity well may attract a better-qualified set of job applicants. c. Heterogeneous groups tend to be more cohesive than homogeneous groups. d. Organizations with diverse workforces are better able to understand different market segments. e. Diverse organizations have a larger pool of information for problem-solving purposes.

C

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

You are a banker reviewing a loan application from a local business. Which of the following ratios would you look at to get a quick measure of the business's ability to meet its long-term financial obligations? a. Liquidity ratio b. Return on assets c. Debt ratio d. Current ratio e. Activity ratio

C

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

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

Your management information system provides managers with weekly data concerning deviations from standards in each department. Which step in the control process does this represent? a. Taking corrective action b. Measuring performance c. Comparing performance to standards d. Establishing performance standards e. Setting goals

C

____ planning is the process by which managers identify alternative courses of action that the organization might follow if various conditions arise. a. Strategic b. Standard c. Contingency d. Integrative e. Goal optimization

C

____ ratios indicate the effectiveness of specific functional areas rather than that of the total organization. a. Coverage b. Debt c. Operating d. Return e. Activity

C

80. Dorothy Thompson heads the research and development laboratory at a small chemical company. Because she is not a chemist, she feels uneasy setting goals for the research chemists, so she asks them to set their own goals. Thompson's area suffers from which of the following barriers to goal setting and planning? a. Inappropriate goals b. Improper reward system c. Dynamic and complex environment d. Reluctance to establish goals e. Reluctance to change

D

A New York Times journalist was taken hostage by the Taliban. Special Forces created a(n) ____ plan and rescued the journalist. a. organizational b. standing c. action d. reaction e. functional

D

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. a. valid b. deliberate c. reliable d. emergent e. synergistic

D

An example of ____ would be when credit card and mortgage divisions of banks often get their customers from the bank's commercial loan customers. a. resource deployment b. strategic scope c. competitive advantage d. synergy in related diversification e. None of these choices

D

An example of a gap in organizational identification based on cultural identity would be a. women represented in all positions in the organization. b. minorities represented in all positions in the organization. c. women overcoming glass ceilings. d. Asians being stereotyped as great in math. e. advancement policies that are based on ability.

D

Anu is comparing the performance of her small landscaping business against the standards she established. When she has finished her comparisons, any of the following actions may be appropriate EXCEPT a. correct deviations as required. b. maintain the status quo. c. increase the control standards. d. eliminate the control if things went as planned. e. decrease the control standards.

D

Business-level strategy focuses primarily on a. which markets to enter and how to use the firm's money, people, and physical facilities. b. which markets to enter and in what areas the firm may have a competitive edge. c. which markets to enter and how the parts of the organization enhance the entry. d. the areas in which the firm may have an advantage and how much various organizational parts enhance each other. e. the firm's competitive advantage(s).

D

Businesses that use H-form or M-form organizational design may have several ____ who are responsible for helping line managers with their control functions, for coordinating the organization's overall control system, and for gathering and assimilating relevant information. a. ombudsmen b. facilitators c. change agents d. controllers e. control champions

D

Compu Desk has a small share of the growing desktop computer market. Compu Desk is an example of a a. cash cow. b. prospector. c. star. d. question mark. e. dog.

D

Don opened a pizza shop. It was successful, so he opened a restaurant; it failed. So he opened a bed and breakfast; it succeeded. He wanted to save a historic building, so he turned it into a retreat center. Don uses a(n) ____ strategy. a. valid b. deliberate c. reliable d. emergent e. synergistic

D

Effective strategies a. develop long-range plans for resource allocation. b. provide an in-depth analysis of the organization's internal strengths and weaknesses. c. provide managers with a list of environmental contingency factors. d. align the organization and environment to achieve strategic goals. e. focus on the mission statement.

D

Engelhard has just learned of a hostile takeover attempt from BASF. Engelhard needs to develop a(n) ____ plan to thwart this attempted acquisition. a. contingency b. standing c. action d. reaction e. functional

D

Fort Howard Paper Company has a cost-saving manufacturing process that its competitors cannot imitate. Fort Howard Paper enjoys a(n) a. organizational opportunity. b. organizational threat. c. product integration. d. sustained competitive advantage. e. product emulation.

D

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

Google bought YouTube even though it operated at a loss. The business strategy for YouTube is ____. a. valid b. deliberate c. reliable d. emergent e. synergistic

D

Historically African Americans have voted more for Democrats than for Republicans. Michael Steele, Chairman of the Republican National Committee, is African American. As the leader of the party he is in a position to address concerns of all segments of the population. This illustrates the ____ argument. a. resource acquisition b. systems flexibility c. cost d. marketing e. creativity

D

Holiday Casinos provides foreign-language training for employees who will come into contact with casino patrons who speak a language other than English. This is an example of a. organizational policies. b. organizational practices. c. selective recruitment. d. diversity training. e. developing a supportive organization culture.

D

If a manager has a directive leadership style and works in an organization in which performance expectations are minimal, which control structure is most appropriate? a. Decentralized b. Organic c. System 4 d. Bureaucratic e. Laissez-faire

D

In 1987, Allegis Corporation consisted of United Airlines, Hertz Rent-a-Car, and Westin Hotels. United had purchased and combined these firms into one corporation because it was thought that they could accomplish more joined together than they could operating as separate units. Which advantage of related diversification does this best represent? a. Reducing overhead b. Creating a distinctive competence c. Innovation d. Synergy e. Reducing business dependence

D

In the 1980s, if you mentioned Harley-Davidson motorcycles to the average consumer, he or she immediately thought of motorcycle gangs⎯more specifically, Hell's Angels. Now the price of a Harley can top $20,000, and there are riding clubs like Rubs (Rich urban riders) that include executives, attorneys, and doctors. The club members are attracted to Harleys for their wild and free image. Harley-Davidson's image is a(n) ____ not easily imitated by competitors. a. organizational weakness b. strategic limitation c. Entropy d. distinctive competence e. organizational opportunity

D

Kraft Food Inc offered to buy Cadbury, a confection and beverage company. Which advantage of related diversification could result from the merging of these two businesses? a. Reducing overhead b. Creating a distinctive competence c. Innovation d. Synergy e. Reducing business dependence

D

Managers can improve the effectiveness of the control system by a. changing the performance standards. b. controlling as many things in the organization as possible. c. computerizing the system. d. integrating control with planning. e. correcting all deviations from standards.

D

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

Oshkosh Corp. hired hundreds of workers to meet an order deadline. The employee training process had to adapt. Which of the characteristics of an effective control system did the training system need? a. Timeliness b. Accuracy c. Focus d. Flexibility e. Objectivity

D

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

Rhode Island's governor told 81% of the state employees to stay home for twelve days without pay in order to save the state millions of dollars. Unemployment in the state had risen to 12.7%, which caused a budget deficit. This is an example of a(n) ____ plan. a. strategic b. tactical c. long-range d. contingency e. integrated

D

Siemens corporate research earns on average 20 patents a day. The patents give Siemens a(n) ____. a. organizational opportunity b. organizational threat c. product integration d. sustained competitive advantage e. product emulation

D

Starstruck Eateries has been very successful over the years by monitoring what successful restaurants in other cities are doing and copying them. This is known as a. competitive parity. b. competitive advantage. c. distinctive competence. d. strategic imitation. e. tactical differentiation.

D

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

The Sarbanes-Oxley Act, passed after the fall of Enron and Arthur Andersen, requires accounting firms to separate the auditing function from the consulting function. This example illustrates a. organizational complexity. b. how changing conditions are influenced by innovation. c. why control is necessary to reduce the accumulation of errors. d. how control helps organizations respond to changing standards. e. All of these choices

D

The ____ of Applebee's is to "weekly repeat guests through providing surprisingly friendly hospitality, superior quality food, and world class service and value." a. operational goal b. tactical plan c. strategic plan d. mission statement e. operational plan

D

The ____ of West Point is "to educate, train, and inspire the Corps of Cadets so that each graduate is a commissioned leader of character committed to the values of Duty, Honor, Country and prepared for a career of professional excellence and service to the Nation as an officer in the United States Army." a. operational goal b. tactical plan c. strategic plan d. mission statement e. strategic goal

D

The control standard at McDonald's fast-food restaurants is to fill each order within 90 seconds and to have no customer wait longer than 3.5 minutes. As with most control standards, these are derived from the company's a. historical data. b. time-series data. c. external data. d. organizational goals. e. production indices.

D

The expiration of a pharmaceutical drug patent allows generic drug makers to introduce the same chemical compound under a different name and at lower prices. This is an example of ____ for the developer of the original drug. a. organizational weakness b. strategic limitation c. entropy d. organizational threat e. organizational opportunity

D

The level of control designed to ensure that the organization meets its goals is ____ control. a. operations b. organizational c. functional d. strategic e. administrative

D

The major policy through which an organization can reflect its stance on diversity is its a. recruitment procedures. b. promotional patterns. c. organizational chart. d. mission statement. e. rules and regulations.

D

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

D

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

The owners of the Pizza Place set a goal of expanding into five new markets over the next three years. What kind of goal is this? a. Level b. Short-range c. Area d. Intermediate-range e. Long-range

D

The production company that provided the television show Who Wants to Marry My Dad? to be shown on night-time television to compete in a market begun by Joe Millionaire had to cut cash flow when the demand for the show did not live up to expectations. According to the BCG matrix, the TV show Who Wants to Marry My Dad? was an example of a a. question mark. b. rising star. c. star. d. dog. e. cash cow.

D

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

The staff at Brace Place is supportive of each other. If someone needs to change her schedule with short notice someone else will cover. The know the next time it might be them. They demonstrate ____. a. understanding b. a willingness to communicate c. tolerance d. empathy e. management skills

D

There are many reasons the median age of workers in the US is increasing. Which of the following is NOT one of them? a. Aging baby boomers b. Declining birthrates c. Improved health care d. Younger workers attending college e. Higher legal limits for mandatory retirement

D

To the extent possible, standards used for control purposes should be derived from a. historical data. b. time-series data. c. external data. d. organizational goals. e. production indices.

D

Wal-Mart sought approval for an industrial bank charter. This is an example of changing a. alignment. b. synergy. c. scope. d. resource deployment. e. entropy.

D

When a new diversity initiative was implemented by the human resources department, many managers were confused about the goals, so they continued with the original system. This is an example of a. inappropriate goals. b. the use of an improper reward system. c. a dynamic and complex environment. d. a reluctance to establish goals. e. constraints.

D

When an airline uses profits from one region to lower prices in another region it is using a. alignment. b. synergy. c. scope. d. resource deployment. e. entropy.

D

When people use stereotypes they demonstrate a. incomplete structural integration. b. pluralism. c. low levels of conflict. d. a gap in identification based on cultural identity group. e. incomplete integration of the informal network.

D

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

Which of the following companies is noted primarily for employing an overall cost leadership strategy? a. Neiman-Marcus b. Johnson & Johnson c. Procter & Gamble d. Wal-Mart e. Tiffany's

D

Which of the following is NOT a major form of operations control discussed in the text? a. Preliminary b. Screening c. Postaction d. Functional e. None of these choices

D

Which of the following is NOT a necessary task while engaged in contingency planning? a. Consider contingency events while planning b. Formally identify contingency events c. Specify indicators for the contingency events d. Monitor the competition e. Develop contingency plans for all contingency events

D

Which of the following is NOT a reason for rising diversity? a. Changing demographics b. Globalization c. Legislative and judicial decisions in the United States d. International travel e. Competition to get a quality workforce

D

Which of the following is NOT listed as a reason for the increase in the age of the American workforce? a. The baby-boom generation b. Fewer children being born to the baby-boom generation c. Better medical care d. Globalization e. Legislation

D

Which of the following is NOT one of the strategy types listed in the Miles and Snow typology? a. Prospector b. Defender c. Reactor d. Rescuer e. Analyzer

D

Which of the following is a type of financial budget that deals with forecasting the organization's assets and liabilities in the event all other budgets are met? a. Cash-flow b. Liquidity c. Capital expenditure d. Balance sheet e. Pro forma

D

Which of the following is an example of one of the Miles and Snow typology classifications for business strategies? a. Focuser b. Rescuer c. Aggressor d. Prospector e. Differentiator

D

Which of the following statements BEST reflects the proper approach to goal setting? a. Top executives set goals for everyone in the organization. b. Goals should be set starting from the bottom of the organization. c. Individual goals should be set first and then organizational goals. d. Managers should set goals for their own level in the organization. e. Middle managers set goals for all managers lower than them.

D

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

Which of the following would NOT be included in the typical balance sheet? a. Current assets b. Fixed assets c. Stockholder's equity d. Revenues e. Long-term liabilities

D

While Tupperware wanted to increase its sales, its consultants were reluctant to support any change that could reduce their commissions. This is an example of which of the following barriers to goal setting and planning? a. Overemphasis on quantitative goals b. Rewarding people for counterproductive goals c. Overemphasis on qualitative goals d. Resistance to change e. Reluctance to establish goals

D

Who is responsible for identifying, analyzing, and recommending program alternatives; developing and submitting budgets; and finally putting plans into action? a. Top-level managers b. Middle-level managers c. The planning staff d. Line managers e. Marketing staff

D

You are looking at a document that has entries for such items as revenues, expenses, and profit. You are looking at a(n) a. balance sheet. b. revenue budget. c. capital expenditure budget. d. income statement. e. master budget.

D

You just received news that a new product you put on supermarket shelves six week ago is a miserable failure because your competitor came out with a better product that is more convenient to use. You did not foresee this turn of events, and now you must develop a plan to take care of the situation. What kind of plan are you about to develop? a. Contingency b. Standing c. Action d. Reaction e. Functional

D

____ control is a form of organizational control characterized by formal and mechanistic structural arrangements. a. Decentralized b. Divisional c. Chain of command d. Bureaucratic e. Administrative

D

____ is the component of strategy that indicates what the organization does exceptionally well. a. Resource deployment b. Synergy c. Scope d. Distinctive competence e. None of these choices

D

A ____ was developed when Chicago made a bid for the 2016 Summer Olympics. a. Project b. Policy c. standard operating procedure d. Rule e. Program

E

A production manager argues that the increase in absenteeism is caused by decreased recruiting and placement standards. The argument is supported by personnel documents. This is an example of a. overcoming resistance to control. b. overcontrol. c. objectivity. d. participation. e. checks and balances.

E

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

A(n) ____ for Quaker Oats Company could be to improve returns for its shareholders by 2 percent annually. a. tactical plan b. mission statement c. operational goal d. operational plan e. strategic goal

E

A(n) ____ ratio is a measure of the firm's ability to meet its long-term financial obligations. a. liquidity b. income c. activity d. operating e. debt

E

AOL eliminated fees to some subscribers to try to attract more users. AOL was using a(n) ____ strategy. a. analyzer b. star c. reactor d. prospector e. defender

E

After evaluation, an appropriate decision may be to a. raise standards. b. do nothing. c. correct the deviation. d. lower standards. e. Do any of these choices

E

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

E

An organization implementing a prospector strategy needs to a. create new opportunity. b. remain flexible. c. respond quickly. d. decentralize decision making. e. All of these choices

E

Budgets a. help managers coordinate resources. b. help define standards for control. c. provide guidelines about resources. d. enable the evaluation of the performance of managers. e. All of these choices

E

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

Datril was introduced into the pain-reliever market as a product just like Tylenol. The makers of Datril used ____ to copy Tylenol's distinctive competence. a. product aping b. tactical imitation c. product emulation d. product integration e. strategic imitation

E

European wine producers from regions such as Chablis, Chianti, and Bordeaux set a goal of increasing sales. They ran into ____. Their wine name was already registered in some countries. a. overemphasis on quantitative goals b. rewarding people for counterproductive goals c. overemphasis on qualitative goals d. resistance to change e. Constraints

E

Facebook partnered with Nielsen Co. to poll users about ads on Facebook. Nielsen then packaged the information for advertisers. This was a response to advertiser complaints about the effectiveness of ads on the social network. This indicates that Facebook is placing an emphasis on ____ controls. a. structural b. hierarchical c. strategic d. managerial e. operations

E

For years Dell computers were only available through Dell. Then it contracted with Wal-Mart to sell there too. Dell used a(n) ____ strategy. a. prospector b. defender c. reactor d. rescuer e. analyzer

E

Forms of diversification include a. acquisitions. b. vertical integration. c. mergers. d. the internal development of new products. e. All of these choices

E

GE is highly leveraged. Financial analysts look at its ____ ratio to determine if it can make interest payments. a. liquidity b. leverage c. activity d. operating e. coverage

E

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

E

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

Implementing the control process includes which of the following steps? a. Establish standards b. Determine the need for corrective action c. Compare performance against standards d. Measure performance e. All of these choices

E

In what order should the following be developed? a. Mission, operational, strategic, and tactical b. Strategic, tactical, mission, and operational c. Mission, tactical, strategic, and operational d. Tactical, strategic, mission, and operational e. Mission, strategic, tactical, and operational

E

Income statements, balance sheets, and audits are examples of the control of a. physical resources. b. cybernetics. c. human resources. d. organizational complexity. e. financial resources.

E

MTV has a(n) ____ perspective toward international strategic control. It does not require its various divisions (MTV Europe, MTV Australia, MTV India, MTV Latin America, and so on) to report in frequently. It believes in letting each manager have the authority to respond quickly to environmental changes. These changes do not have to be approved by MTV before they are implemented. a. administrative b. mechanistic c. centralized d. bureaucratic e. decentralized

E

Merrill Lynch monitored a research analyst's e-mails, discovered illegal information sent to a client, and fired the analyst. Merrill Lynch's ____ helped reduce resistance to control. a. participation b. flexibility c. appropriate focus d. high standards e. verification procedures

E

Network new programs have been losing viewers for years. They all cover stories from left of center in the political spectrum. Fox News saw a(n) ____ and covers stories from right of center. The reporters all say they have no bias. a. organizational weakness b. strategic limitation c. entropy d. organizational threat e. organizational opportunity

E

Organizational practices used to manage diversity include a. flexible working hours. b. job sharing. c. accommodating benefit packages. d. multicultural work teams. e. All of these choices

E

Philip Morris markets Marlboro cigarettes, the number-one selling cigarette brand in the world. Outside the United States, Marlboro generates huge profits that Philip Morris uses to support other less successful SBUs. According to the BCG matrix, Marlboro is an example of a a. question mark. b. problem child. c. star. d. barking dog. e. cash cow.

E

Pluralism means that a. the organization shares a common culture. b. the organization's employees speak more than one language. c. the organization culture encourages diversity. d. every ethnicity is represented in the workforce. e. every group represented in the organization works to better understand every other group.

E

Porsche Automobil Holding and Volkswagen own each others stock. They plan to integrate the companies in 2011. This diversification strategy is ____. a. acquisition b. forward vertical integration c. horizontal integration d. backward integration e. merger

E

Porter's generic strategies classify firms by which of the following? a. Stagnant b. Growth c. Declining d. Analyzing e. Focus

E

Prior to 1990, Campbell Soup Company was languishing near the bottom of the food industry. It was committed to maintaining its current market and was not interested in growth. Then it got a new CEO, David W. Johnson. The company exceeded its growth goals in both 1991 and 1992, and launched 122 new products. Its strategy prior to the hiring of Johnson exemplified a ____ strategy. a. differentiation b. cost leadership c. reactor d. prospector e. defender

E

Schools in New Jersey are closed on Rosh Hashanah, Yom Kippur, Christmas, and Easter among other holidays. This is an example of which of the organizational approaches to managing diversity? a. Organizational policies b. Diversity training c. Selective recruitment d. Development of a supportive organization culture e. Organizational practices

E

Starbucks middle managers responsible for joint venture agreements with bookstores, hotels and airports, work from a(n) ____ plan. a. operational b. standing c. single-use d. contingency e. tactical

E

Tactical plans a. require a planning staff for development. b. are used to react to unforeseen circumstances. c. are normally developed by the board of directors. d. cover many years. e. are an organized sequence of steps designed to execute strategic plans.

E

The Culinary Institute of America (CIA) teaches cooking and operates French, Italian, and American restaurants. It also sells cooking supplies. This is an example of CIA's ____. a. alignment b. synergy c. distinctive competence d. resource deployment e. Scope

E

The GE business screen is an expansion of the ideas from a. the product life cycle approach. b. the Miles and Snow typology of business strategy. c. the generic strategy approach. d. Porter's competitive strategies. e. the BCG matrix.

E

The ____ at McDonald's fast-food restaurants is to fill each order within 90 seconds and to have no customer wait longer than 3.5 minutes. a. structural goal b. physical resource control c. financial control d. corrective strategy e. control standard

E

The ____ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used. a. operating b. capital expenditure c. revenue d. cash-flow e. nonmonetary

E

The ____ strategy is the most conservative approach in the Miles and Snow classifications of business strategies. a. analyzer b. star c. prospector d. reactor e. defender

E

The basic purpose of control is a. to cope with organizational complexity. b. to adapt to environmental changes. c. to minimize costs. d. to limit the accumulation of error. e. All of these choices

E

The best way to integrate planning and control is to a. develop controls as plans develop. b. set goals and standards for control during planning. c. link control with planning. d. make integration explicit and precise. e. All of these choices

E

The product life cycle a. shows how sales volume changes over time for products. b. can help managers recognize that strategies need to evolve over time. c. begins when a new product or technology is first introduced. d. generally consists of four stages. e. All of these choices

E

The tactical plan was to increase sales of King bread mixes through the use of sales promotions. The ____ plan done by a marketing manager low in the management hierarchy included the development of a 50-cents-off coupon to go on the outside of each bread mix box. a. strategic b. standing c. contingency d. single-use e. operational

E

There are no problems at XYZ Corporation arising from age, gender or ethnicity. It is characterized by a. full structural integration. b. pluralism. c. an absence of discrimination and prejudice. d. cultural identification. e. low levels of intergroup conflict.

E

What is the MOST important factor in effectively integrating the planning and control functions? a. Set clear objectives b. Develop a strategy that eliminates the need for controls c. Compare past performance to standards d. Ensure that the system is flexible e. Provide for controls as plans are developed

E

When Starbucks expands internationally it considers market size, local standard of living, business environment, income level and U.S. sentiment. This is considered in the ____ plan. a. short-term strategic b. intermediate-term strategic c. long-term tactical d. intermediate-term tactical e. long-term strategic

E

When every individual has the opportunity to influence the organization's culture and norms, ____ has occurred. a. full structural integration b. equality c. an absence of discrimination and prejudice d. cultural identification e. pluralism

E

When implementing a differentiation strategy it is important to have a. marketing emphasize high-value distinction. b. control of funds without discouraging creativity. c. manufacturing adjust inventory. d. a culture focused on customer needs. e. All of these choices

E

When the CBS network introduced the reality show Survivor, the show was an immediate success for the network. As a result ABC, NBC, and Fox tried to introduce their own reality shows. In this instance, ABC, NBC, and Fox used a. product aping. b. tactical imitation. c. product emulation. d. product integration. e. strategic imitation.

E

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

Which of the following arguments for diversity are related? a. Cost and resource acquisition b. Problem solving and marketing c. Marketing and cost d. Systems flexibility and cost e. Problem solving and creativity

E

Which of the following describes a determinant of organization culture? a. Its success in developing and marketing a line of hypoallergenic cosmetics b. Its slogan, "We are what every woman desires." c. The memory of when the company was merged with another cosmetics manufacturer d. The story of how the founder of the company mixed cosmetics at her kitchen table e. All of these choices

E

Which of the following is NOT a type of financial budget? a. Cash-flow b. Capital expenditure c. Balance sheet d. Cash e. Profit

E

Which of the following is NOT an international business strategy? a. Home replication b. Transnational c. Multi-domestic d. Global e. Intercontinental

E

Which of the following is NOT characteristic of the bureaucratic approach to organizational control? a. Rewards focused on individual performance b. Tall organizational structure c. Limited employee participation d. Reliance on rules and a rigid hierarchy e. Reliance on group norms

E

Which of the following is a technique for overcoming barriers to goal setting and planning? a. An understanding of the purpose of goals and planning b. Communication and participation c. Goal and plan consistency, revision, and updating d. An effective reward system e. All of these choices

E

Which of the following is an example of a financial control that allows managers to compare different elements of a balance sheet and income statement to one another? a. Balance sheet b. Income statement c. External audit d. Return on assets computation e. Financial ratios

E

Which of the following is an example of a standing plan? a. The "Do Not Litter" sign in the city park b. The middle school plan for dealing with a student with a learning disability c. The Dairy Queen restaurant's plan for how to make a banana split d. The way students are selected for college admission e. All of these choices

E

Which of the following is an example of an intermediate-range plan? a. Develop an alcohol-powered small engine in the next ten years b. FDA claims that nutrition labels on juice bottle are misleading c. Conduct a Fourth of July sale d. Sponsor a community wellness day next month e. Reduce employee absenteeism by 20 percent within the next two years

E

Which of the following is an organizational approach used to manage diversity? a. Providing managers and employees with diversity training b. Developing a supportive organization culture c. Having mentoring programs for women and minorities d. Creating a diversity task force e. All of these choices

E

Which of the following practices indicates an organization that does NOT value diversity? a. The benefits packages are tailored to individual needs. b. Work hours are flexible. c. Committee assignments are diverse. d. Multicultural training is provided. e. Policies and procedures follow the letter of the EEO law.

E

Which of the following statements about financial audits is TRUE? a. They are independent appraisals. b. They may be internal or external to the organization. c. They may be used to monitor accounting, financial, and operating systems within an organization. d. They may be conducted on a continual or an intermittent basis. e. All of these choices

E

Which of the following statements about the marketing argument for diversity is TRUE? a. Organizations that manage diversity and multiculturalism effectively are better able to attract qualified employees from women and minorities. b. A manager can reduce employee absenteeism and turnover by learning how to manage diversity and multiculturalism. c. Diversity and multiculturalism are accompanied by an increased pool of information. d. Organizations with diversity and multiculturalism are generally more creative and innovative than other organizations. e. Organizations with diversity and multiculturalism are better able to understand different market segments than are less diverse organizations.

E

Working Mother magazine recognized General Mills as one of the top ten companies for working families. General Mills was described as a leader in responding to emplyee needs for child care, flexible scheduling, and woman's advancement. You can infer that General Mills agrees with the _____ argument a. resource acquisition b. systems flexibility c. cost d. marketing e. All of these choices

E

____ are corporate-level strategies for becoming a diversified firm. a. Internal developments of new products b. Backward vertical integrations c. Mergers d. Acquisitions e. All of these choices

E

____ exists when the economic value together is greater than the value of the parts. a. Entropy b. Competitive support c. Resource deployment d. Scope e. Synergy

E

____ is a useful framework for managers to use as they plot business strategy over time. a. The BCG matrix b. The GE screen c. Porter's competitive strategies model d. The Miles and Snow model of business strategy e. The product life cycle

E

____ plans are the broad plans developed by top managers and the board of directors to guide the general direction of the organization. a. Tactical b. Contingency c. Operational d. Single-use e. Strategic

E

T/F The last step in the control process is to change the standard.

F

T/F The responsibility for managing control rests on the CEO

F

T/F one purpose of control is to simplify organizations

F

T/F An after-action report is a screening control

F

T/F An operating budget is a budget that determines the number of units to be produced during the coming time period.

F

T/F As the number of things being controlled by the organization increases, the likelihood that employees will resist those controls tends to decrease.

F

T/F Bureaucratic control focuses on enhanced performance that exceeds minimum acceptable standards.

F

T/F Bureaucratic control is outdated and not effective any more.

F

T/F Internal audits are not as effective as external audits.

F

T/F Reporters who verify stories with additional sources are using screening control.

F

T/F Return ratios are measures of an organization's ability to convert assets into cash quickly.

F

T/F Strategic control in global organizations is the same as domestic organizations.

F

T/F The CEO is responsible for developing the budget and communicating it to managers.

F

T/F The listing of an organization's assets and liabilities at a particular point in time can usually be found in its cash flow budget.

F

PepsiCo consistently ranks as a great place for minorities to work. PepsiCo is thus better able to attract qualified employees. This illustrates the ____ argument

Resource acquisition

T/F A properly designed control system can help management anticipate, monitor, and respond to changing circumstances

T

T/F Effective control helps managers decide where they want their business to go, point it I that direction, and monitor results to keep it on track.

T

T/F Strategic controls are concerned with how well the organization aligns itself with the environment.

T

T/F After a comparison of performance to standards, one action that may be appropriate is to do nothing.

T

T/F An effective way to promote employee participation in the control process is to use screening controls.

T

T/F As much as possible, standards established for control purposes should reflect the goals of the organization.

T

T/F Decentralized control relies heavily on self-control by the organization's employees.

T

T/F Financial resource controls are interrelated with the control of all other organizational resources.

T

T/F If objective data are available, they will provide more useful information than will mere subjective impressions.

T

T/F Information systems are an essential element of strategic control.

T

T/F Internal audits examine the efficiency and appropriateness of financial and accounting procedures.

T

T/F Managers make a surprisingly large number of decisions based on inaccurate information.

T

T/F Operations controls monitor input, transformation, and output.

T

T/F Some auditors specialize in legal bills, pension plans, or benefit plans.

T

T/F The most common controls are screening controls.

T

T/F The planning and controlling functions are interrelated.

T

T/F Toyota is designing a new car. At the same time it is planning the recycling abilities of the parts. Toyota is effectively integrating planning and control processes.

T

Audits are independent appraisals of an organization's ____________________, and operating systems.

accounting

Preventing small mistakes and errors from adding up to large problems is called limiting the

accumulation of error

Effective control systems are integrated, flexible, ____________________, timely, and objective.

accurate

a(n) ________ is a plan expressed in numerical terms

budget

_______ are intended to serve as frameworks, but managers sometimes fail to recognize that changing circumstances may warrant adjustments

budgets

A manager's style that is directive fits more appropriately with a company's control system that is ____________________.

bureaucratic

The form of organizational control characterized by formal and mechanistic structural arrangements is ____________________ control.

bureaucratic

______ is the regulation of organizational activities in such a way as to facilitate goal attainment

control

a target against which subsequent performance will be compared is a(n)

control standard

the final step in the control process is to determine the need for _____ action

corrective

When an organization effectively manages diversity, absenteeism decreases, turnover is reduced, and productivity increases. These results are suggested by the _____ argument

cost

The ______ argument for diversity suggests that diverse and multicultural workforces are generally more innovative than other organizations

creativity

When the managerial style is participative, the appropriate control style is ____________________.

decentralized

The financial statement that reflects revenues and expenses over a period of time is the ____________________.

income statement

The form of organizational control based on ____________________ structural arrangements is decentralized control.

informal organic

most organizations define areas of control in terms of the four basic types of resources the use: physical, human, _________ and financial

information

the non-monetary budget that focuses on the hours of direct labor available for use is the ______ budget

labor

Because of both their ____________________ and ____________________ associated with international business, global organizations must take an especially pronounced strategic view of their control systems

large size;complexity

which of the following is NOT an argument that has been proposed for how multiculturalism contributes to competitiveness?

management argument

The makers of Zestra, an ointment for women, used an all male marketing team. Sales were disappointing and the company filed for Chapter 11. Two women arranged financing and bought the company, changed the name, packaging and message. Semprae is now selling well. This illustrates the ____ argument

marketing

_______ budgets focus on such factors as units of output and allocation of space

nonmonetary

Differences in ______ do not contribute to workforce diversity

occupation

the expense budget is a type of _____ budget that anticipates expenses for the organization during the coming time period

operating

______ focuses on the processes the organization uses to transform resources into products or services

operations control

At Dell, running the computer before shipment is an ________ control

postaction

a year-end sales report is an example of a(n) ______ control

postaction

controls applied to screen employees before they are hired are called _______ controls

preliminary

Eric, an American, is an executive coach at Boeing. One of the executives he coaches is from India. Their diverse backgrounds add variety and create more solutions for management challenges. This illustrates the ____ argument

problem solving

Timeliness does not necessarily mean ____________________.

quickness

The calculation of one or more financial ratios to assess some aspect of the organization's financial health is the ____________________ analysis.

ratio

Tasking a subordinate who does not complain about work instead of a subordinate who complains all the time, can hurt control by ____________________.

rewarding inefficiency

a quality control inspection that takes place while a product is being manufactured is called an _____ control

screening

________ control is concerned with how elements of the organization's structure are serving their intended purpose

structural

A change in the demographics around Detroit prompted a real estate company to hire agents that more closely reflected the buying market. In doing so the entire office became more flexible and able to adapt to its changing environment. This is an example of the _____ argument for diversity.

systems flexibility

the growth of multinational corporations has left little room for distinction. Any perceived competitive advantage is quickly copied. However, an area for competitive adv remains in the level of ______ orgs attract, motivate and retain

talent

Strategic control generally focuses on structure, leadership, ____________________, human resources, and information and operating systems.

technology

A gender-related problem that many organizations face today is called

the glass ceiling

The best way to overcome resistance to control is to create effective control ____________________.

to begin with

Which of the following ethnic groups is expected to experience a drop in the % of workers in the workforce by the year 2025?

whites

The biggest predicted change with respect to ethnicity will be for

whites and hispanics