MGMT Practice Questions

In what way is a global business different from a multinational business?

a global business is not committed to a single home country

Tactical plans must flow from and be consistent with _____.

a strategic plan

What is a tariff?

a tax collected on goods shipped across national boundaries

What is the advantage of setting business-level strategies?

ability to focus efforts in a targeted manner

Jewel's company was just purchased by a much larger competitor who makes products in a similar line. The products made by Jewel's company will still be made, but branded with the new company's name. Which type of diversification does this process involve?

acquisition

Which is the act of choosing one alternative from among a set of alternatives?

decision making

Product differentiation, low costs, and the development of new products or services are key to a company's success at which stage of the product life cycle?

decline

The final step in the rational decision-making process is _____.

evaluating and defining the nature of a decision situation

What is defined as a commitment to finding and using the best theory and data available at the time to make decisions?

evidence based management

Horizontal consistency of goals means that _____.

goals should be consistent from one department to the next.

Woojin is looking at expanding his organization to overseas markets. Part of his consideration on where to open a new facility is based on the ability to move goods in and out of the country. Woojin needs to look carefully at _____.

infrastructure

Decentralizing power in the hands of a local subsidiary _____.

may make it difficult to transfer learning from one subsidiary to another

Which economy has become the second largest economy in the world, behind the United States?

China

Tariq knows the production levels he wants to achieve this week and for the next three months. What does Tariq need to use when he determines the schedules of his employees?

operational plan

What does an organization use to manage its operations across several industries and several markets simultaneously?

Corporate level strategy

Which was the first, and often considered the most important, economic community in the world?

EU

Due to an explosion at a supplier's plant, L'Meese will no longer be able to achieve goals set by her division manager. What should L'Meese remember about goals?

Goals are targets, not absolute objectives

The United States, Canada, and Mexico entered into which agreement to eliminate barriers to trade among them?

NAFTA

Before instituting budget cuts, Apoorva wants to get feedback from her managers and work on developing creative and innovative alternatives. She asked each of her managers to brainstorm a list of ways they can cut their budgets without affecting workers. Ideas were placed on a flip chart, and each was then discussed. Which type of team is Apoorva using?

Nominal

The manager of Follicle, a salon and spa, believes that the techniques they have followed for generations are superior to the latest techniques that are scientifically proven to be more effective. He fears that the use of new techniques may lead to failure and continues to use the existing techniques. In this scenario, which of the following barriers to goal setting and planning is most evident?

Resistance to change

Gnomatics sells just one type of product in the local marketplace. The staff works hard to ensure their product is successful, even though there really are no other companies that compete with them. Which type of strategy does Gnomatics use?

Single Product

One advantage of team decision making is that _____.

better decisions generally emerge

Which of the following best explains what occurs during the step of selecting the best alternative when completing the rational decision-making process?

consider all situational factors, anc choose the alternative that best fits the situation

In the event of a disaster or other unexpected calamity, where can a plan with procedures for handling the disaster be found?

crisis management

Keane Industries is a privately owned firm that manufactures and installs large, deep well digging equipment that can be operated with little technical expertise. The company has a cash surplus due to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the biggest priority for the owners is to maintain full control of any new operations. Which level of international business activity is Keane Industries seeking?

direct investment

Aisha's organization produces a unique line of leather goods that it sells to large retail department stores. Recently, the organization opened a small store where it sells discontinued items or items with small flaws that were rejected by the large retailers. Which type of diversification did Aisha's firm engage in?

forward vertical integration

Jewel often uses standing plans while managing inventory levels and ordering within her organization. Why are standing plans effective for this process?

inventory and ordering occur regularly s

Anke is planning her production schedule for the upcoming quarter. While she does not know for sure, she feels strongly that her company will win a large contract that will affect production. Based on her intuition, Anke is thinking that she should include the purchase of additional equipment and hiring staff in her production schedule, but she does not have specific reasons for making this decision. Why is the classical model of decision making an unsuitable approach for Anke to use in this situation?

it rests on the assumption that managers are logical and rational

Nita's organization has been doing business in foreign countries for many years, and it has built plants in the local communities overseas. Recently, her company has been nationalized. What does that mean for Nita?

it was taken over by the government

It is difficult to imitate a distinctive competence because _____.

its nature might not be understood by competing firms

As the head of human resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees—single, married, single parents, and older workers—on the team. Which of the following advantages will this team provide?

more alternatives can be identified and evaluated

Nour's organization buys raw materials from all over the world, and in turn, sells finished goods worldwide. Which type of organization does Nour run?

multinational

Ugar has relocated a production firm to a country that has lower production costs, and it is closer to his customers. Which type of advantage does this offer Ugar's firm?

production efficiencies

Which type of decisions are relatively structured or recur with some frequency?

programmed

Darien wants to introduce a new product within the organization's existing product line. Which type of plan should he use to do so?

project

Bishop must select a new supplier for ink before the next print run for the product's packaging or risk missing a critical shipping deadline. The first bid he received met his price point, and he accepted the bid immediately, without waiting for the other bids to arrive or do any further research. This is an example of _____.

satisficing

Which of the following specifies the range of markets in which an organization will compete?

scope

The market for memory chips for electronic devices is growing at an incredible rate, and GloTech has the largest share of that market. According to the BCG matrix, GloTech is a _____.

star

Ahmed is responding to a situation that does not happen often. He talked with a colleague about how to resolve the issue. When a colleague suggested Ahmed change his tactical plan, he did not. Why wouldn't Ahmed change his tactical plan to resolve this situation?

tactical plans address several goals

What is escalation of commitment?

the commitment to a course of action even when the decisions appear to have been wrong

What is one of the reasons why an organization would have organizational goals?

to set a unified direction for employees

Why is it critical for an organization to understand that eventually a product will go into the decline stage?

to stay in business

When receiving a new project form his manager, Manoj likes to know all the details and expectations up front. If some information is unavailable, Manoj finds this very stressful. Which of Hofstede's orientations would Manoj have a low level of?

uncertainty acceptance

Junhua has been working toward his goals, but a change in the market has created conflict between the goals. He is unsure which goals he should now pursue. What should Junhua do to balance his goals?

use optimizing