MGMT Test

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

What refers to a condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative?

State of certainty

Which is an international strategy in which a company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness?

Transnational

JJ's Auto Repair is where most residents go for any type of car repair. If JJ elected to open another auto repair shop in the neighboring county, he would be expanding his _____.

business scope

What are considered to be the two most important types of technical innovations?

Product and process

Nila wants to start a new business but wants to draw in customers immediately and take advantage of established working relationships. In terms of her new business, Nila is considering _____.

buying an existing business

All of the following are reasons for success EXCEPT _____.

poor analysis of market conditions

Manoj wants to be able to choose lenders, equipment, inventories, locations, and other aspects of his new business. When starting his business, Manoj should _____.

start from scratch

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

question mark

Approximately what percent of U.S. workers are employed by companies that have fewer than 20 people?

23.5 percent

Yui would like some advice about potentially starting a small business. Where could she go for free advice from retired executives who understand her industry?

A SCORE counselor

One area of organization change involves human resources. Which of the following is an example of a change in this area?

A change in the skill level of a firm's workforce

Which type of decision-making approach assumes that managers are logical, that they have complete information, that they can eliminate uncertainty, and that all of the decisions they make will be in the best interests of the organization?

Classical

During his performance review, Eli's manager helped him understand ways to perform better in the future and achieve some of his work-related goals. Which type of OD technique was Eli's manager using?

Coaching

Ramon wants to establish a culture that rewards innovative ideas. What can he do to encourage innovation in his firm?

Communicate the feeling that failure is acceptable and expected.

Which strategy would Pepsi use to promote its Aquafina brand on the basis of its purity?

Differentiation

According to the proponents of evidence-based management (EBM), what does it mean to treat your organization as an unfinished prototype?

Encourage experimentation and learning by doing.

What can be described as the process of planning, organizing, operating, and assuming the risk of a new venture?

Entrepreneurship

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

Which of the following refers to an organization's beginning of the business activities formerly conducted by its customers?

Forward vertical integration

What does the BCG matrix use to evaluate an organization's set of businesses?

Growth rate and market share

Kaia's firm took its distinctive competencies and used those when expanding into foreign markets. This provided it with the same firm-specific advantage it had in its original location. Which strategic alternative for international business is Kaia's firm using?

Home replication

Polani owns a small parts distributorship. While she is bigger than her local competitors, she is not big enough to really influence the environment. What can be said about Polani's small parts distributorship?

It is a small business.

Which of the following are reasons for failure?

Launching the business in spare time

Blain's Medical Services has had a 20 percent attrition rate in its sales department. Exit interviews reveal that many of the employees are leaving the firm due to a lack of personal and professional growth. Which of the following organization development techniques is the best approach for Blain's Medical Services to address this problem area?

Life and career planning

Kevin started a new lawn care business. He had a lot of experience in this field before starting out on his own, he did his research and knew what services to offer at what prices, and he was willing to put in the time and effort needed to succeed. Despite all this, his business failed. What reason for success is missing from this picture?

Luck

Which source of management advice often has advisors who specialize in one area, such as start-ups or international business, and provide an objective and trained outlook to problems, but can be quite expensive to use?

Management consultants

Lack of effective control systems leads to what problem that causes businesses to fail?

Managers may be in serious trouble before more visible difficulties alert them.

Which of the following statements about large and small businesses is true?

Most U.S. workers are employed by small firms.

Based on differentiation strategy, why are customers willing to pay more for one product over a similar product?

Perceived extra value

Which type of change is associated with lower risk?

Planned

Amina is working on developing and implementing ideas in order to take advantage of business opportunities and challenges in the market. Which skills will Amina need to use to approach those challenges and opportunities?

Strategic management

What is the process of creating or determining the organization's strategies?

Strategy formulation

What is the method by which processes are operationalized or executed within the organization?

Strategy implementation

What is a potential downfall when using a SWOT analysis?

Subjective assessment

In the introduction stage of the product life cycle, what do managers typically need to focus on?

Supply

Which type of OD technique is intended to promote overall group effectiveness?

Team building

Which of the following best summarizes the relationship between necessary resources and the prevalence of small businesses in an industry group?

The more resources an industry requires, the harder it is to start a business and the less likely it is that the industry is dominated by small firms.

What is satisficing?

The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

Why should organizations avoid reactive changes when possible?

There is an increased likelihood of poorly conceived and executed change.

Which of the following is an advantage of team decision making?

There is more information available in a team setting.

Why is it important to identify weaknesses in a SWOT analysis?

To correct them

Using the comprehensive model for change, what should managers consider after they have set goals for change?

Understanding what brought on the need for change

Which group is comprised of investors seeking to make profits on companies with rapid growth potential?

Venture capital companies

One disadvantage of team decision making is that _____.

compromise decisions may emerge

An organization that competes in dozens or even hundreds of markets is called a(n) _____.

conglomerate

Bess, the purchasing manager at World Textiles, is choosing a supplier for the cotton fabric to be used for a new line of youth bedsheets from among four bidders. Bess is engaged in _____.

decision making

An organization is behaving most typically when it does not change in sync with its environment, and it _____.

maintains the status quo

Decentralizing power in the hands of a local subsidiary _____.

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

Junhua would like to start a business to sellcarry-out food in grocery stores and is looking for sources of financing. Junhua took out a second mortgage on his house and tapped into his savings to finance the new business. In this scenario, Junhua's source of financing falls into the category of _____.

personal resources

The most important source of money for people starting up a new business is _____.

personal resources

The final step in the Lewin model of change is _____.

refreezing

An example of an internal force that drives an organization toward change is_____.

workers' demand for a change in working hours

What is created by a firm when it exploits an opportunity before any other firm?

First-mover advantage

Companywide processes—such as materials management, production planning, order management, and financial reporting—can all be linked through _____.

enterprise resource planning (ERP)

When a decision maker stays with a decision even when it appears to be wrong, the behavioral process is called _________.

escalation of commitment

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

evaluating the results of the chosen alternative

Raul and Raj have worked together on a project since the project began, and they have formed a close working relationship. Since the project was so well done, regular project meetings are no longer necessary, and monitoring the project will be given to a junior member of the team. Raul and Raj are resistant to the restructuring. Their resistance is based on _____.

feelings of loss

Reactive change _____.

is a piecemeal response to circumstances

Because the process of group or team decision making takes longer, _____.

it is costlier

While there are many businesses in the general area that offer lawn mower repair, they all require that the customer bring the equipment to the store. Diane realized that this is difficult for many consumers, and she started a business in which her service techs bring the repair shop to the customer. Diane is capitalizing on a(n) _____.

niche

The area that increases the difficulty of an organization performing at a high level is a _____.

threat

Aviva is considering a capital expenditure to upgrade the plant. Aviva is considering various financing options, but she is worried about what the interest rates will be, the benefits of issuing stocks or bonds, or if she will win a contract large enough to cover the cost of the upgrade. Aviva is making a decision under conditions of _____.

uncertainty

Employees who think they may not be able to fully understand or follow new procedures may resist change because of _____.

uncertainty

When a firm identifies a weakness within its organization, what can it do to address that weakness?

It can modify its mission.

Tamara is a retired executive who now offers free advice to new small business owners through a program established by the SBA. Tamara is a(n) _____.

SCORE volunteer

Petra is uncertain where to begin in formulating strategy for her division. What is a good place for her to start?

SWOT analysis

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

Scope

Why do organizations have a difficult time focusing on weaknesses?

They might indicate poor managerial skills.

The market for mountain bikes, while large, is not expected to grow much more. Ruff'n'Tuff Bikes has a major share of that market. According to the BCG matrix, Ruff'n'Tuff Bikes is a _____.

cash cow

At which point in the product innovation process does a firm try to determine if customers will want to buy the innovative product or service?

Application launch

Which concept can be used by managers to develop a better understanding of their inherent biases and limitations?

Bounded rationality

The Federal Reserve lowered adjusted interest rates, making it difficult for Chartab to get the loans needed to expand certain operations. Chartab had to adjust its production and sales forecasts accordingly. In this scenario, Chartab is responding to an external force for change in which dimension?

Economic

Which is a contract between an entrepreneur and a parent company that requires the entrepreneur to pay the parent company for the use of its trademarks, products, formulas, and business plans?

Franchising agreement

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

Programmed

Polani's company is a leader in the creation of mobile phone cases, and it recently has expanded to make cases for tablets and laptops. Polani's company is using related diversification. What is an advantage of this strategy for the firm?

Synergy

Jones International is a large organization with holdings in the United States, Europe, and Southeast Asia. The corporation's mix of strategic business units (SBUs) allows the company to exploit its strengths and capabilities in more than one line of business and to exploit synergies across business lines. One of the disadvantages of Jones International's strategy is that it _____.

increases management complexity

Which of the following helps an organization perceive, or even generate, new opportunities in its environment?

Creativity

Financial difficulties led to the closing of Aviva's software testing department, so Aviva decided to start her own business. She plans to make use of her extensive experience to succeed at this small-business start-up. Which of the following factors could work against Aviva?

Access to capital

Which model reflects the subjective considerations that often impact decision making and explain why, when a decision is made with little regard for logic, it can still turn out to be correct?

Administrative

Apoorva's organization makes decisions using evidence-based management. What can Apoorva do to support a culture in which facts are encouraged?

Allow people to tell the truth, even if it is unpleasant.

What is a coalition?

An informal alliance of individuals or groups formed to achieve a common goal

The local party store developed a busy lunch business by offering slices of pizza and deli sandwiches to go. They also offered a wide selection of soft drinks in their coolers. Recently, a fast-food restaurant opened down the street, and it offers salads and bottled water. To compete, the party store did the same and expanded its other menu offerings. Which type of business strategy did this store use?

Analyzer

Which of the following is a recommendation made by the proponents of evidence-based management?

Avoid basing decisions on what has been done in the past.

Teresita has a successful business that produces sauces, salsas, and salad dressings. Recently, she stopped buying labels from her supplier because she found she can make them less expensively in-house. This also allows her to change labels for seasonal and small batch items. Which type of diversification did Teresita engage in?

Backward vertical integration

Which of the following suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits?

Bounded rationality

JJ's Auto Repair is where most residents go for any type of car repair. Inspired by his entrepreneurial son, JJ has decided to open a detailing shop on an adjoining property. Which type of strategy targets the market of local automobile owners for the purpose of increasing revenues?

Business-level

In a SWOT analysis, how will the identification of strengths help to accomplish an organization's mission?

By allowing the exploitation of skills and capabilities

In which way do organizations determine alternatives for working in a particular industry or market?

By setting business-level strategies

According to the BCG matrix, which type of organization is not expected to grow substantially, even though it currently has a large share of the market?

Cash cows

Which of the following is least likely to cause resistance to change?

Certainty

Which of the following is one of the most basic strategic challenges facing a start-up operation?

Choosing an industry

Several managers agreed that the current course of action in the firm was leading to disaster. The managers submitted a plan to the CEO suggesting an alternative they think will be significantly more effective, and they have agreed to continue to work together until this new plan is put in place. Which of the following have these managers used to promote the new goal?

Coalition

Which of the following occurs when an organization is not implementing valuable strategies that are being implemented by competing organizations?

Competitive disadvantage

What does the GE Business Screen use to determine the attractiveness of an organization?

Competitive position

A small retail shop in the local community offers a wide variety of women's clothing at low prices. In order to be competitive with larger chains found at the mall, the store owner frequently works alone, and she has adjusted store hours to capitalize on busy days. What should this retail shop owner be pursuing as part of her general business-level strategy?

Concentrating on reducing operating costs

Home builders, roofers, and painters are all examples of which type of firms?

Construction

Which of the following is typical behavior for an organization when it resists the need for business process change?

Consuming its own resources

What is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets?

Corporate-level strategy

Most grocery stores carry a wide variety of national brands in addition to their own private label brands. The private label brands are often made by the same national brands they are competing with. Which type of strategy is a firm using when it creates a lower-priced private label brand in addition to its other, higher-priced brands?

Cost leadership

The local dollar store sells a variety of products, all at $1 each. These items are no different than the products of other retail chains, but sizes are slightly smaller. In addition, the store is a little out of the way for most shoppers, but shoppers find the value is worth the trip. In which way does the local dollar store compete with nearby retailers?

Cost leadership

Mica was employed by the regional hospital system and decided to start her own business in the medical support field. She plans to make use of her extensive experience to succeed at this small-business start-up. Which type of entrepreneurial trend does this represent?

Crossover from big business

Which of the following does the administrative model of decision making claim?

Decision makers are constrained by bounded rationality.

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

Decision making

Which of the following is false about evidence-based management?

Decisions should be made based on evidence, experiences, and principles of thought and analysis.

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

Which of the following is a recent trend in small-business start-ups?

Decline in the failure rate

Lupita's products are in the mature stage of the product life cycle. To remain competitive, Lupita's organization has improved the efficiency of its manufacturing process, which allowed it to lower costs. Which strategy is Lupita's firm pursuing?

Defender

When a new line of organic salad dressing was launched, it was very successful. Competitors soon began to produce a similar product. What should the organization do to keep its competitive advantage?

Develop strategies to slow the entry of competitors.

During which stage of the product and process innovation process do physical attributes and capability most affect organizational performance?

Development

What is entrepreneurship?

Entrepreneurship is the process of planning, organizing, operating, and assuming the risks of a business venture.

WholePath Cereals introduced a new line of whole grain cereal for children. Formal surveys have shown that customers do not like the taste of the cereal, and even those who bought it once are not repeat customers. WholePath invested a lot of money in developing and marketing the new product. To protect their investment, they have increased the advertising budget to try to increase enthusiasm and generate additional sales. Which of the following concepts is illustrated in the scenario?

Escalation of commitment

Hassam manages a bakery, and most of the bakery's business is foot traffic. When another bakery opened its doors around the corner, Hassam saw his sales decline. He immediately began promoting daily specials to regain some of his clientele. Hassam's new marketing tactics were in response to which forces for change?

External

Martin's purchasing department is converting to an automated perpetual inventory system that will reduce costs and improve accuracy. Martin is aware of his employees' anxiety about the change. During the conversion, he made only the necessary changes, announced those changes well in advance, and allowed time for employees to adjust to new ways of doing things. Which technique did Martin use to overcome resistance to this change?

Facilitation

In which type of strategy does an organization concentrate on a specific regional market, product line, or group of buyers?

Focus

As Summer Fair was preparing to open its newest roller coaster, numerous problems and questions arose regarding the safety of the ride. At each step of the way, the decision makers argued that the ride met all safety regulations and everything would be fine. Within the first week of operation, the ride experienced a serious malfunction, injuring many of its riders. What disadvantage of group decision making does this scenario represent?

Groupthink

When a group arrives at a decision that seems to not be in the best interest of the organization but resulted from a process that avoided any conflict, what has likely occurred?

Groupthink

Which of the following questions is least important to ask when evaluating alternatives in the decision-making process?

How will the alternative affect competitors?

After winning a large contract, Aisha needs to decide how to staff the project. She is currently calculating the costs of hiring new employees, using overtime, and adding a second shift. At which stage of the decision-making process is Aisha in?

Identifying alternatives

Raul's division is moving to a new facility. Today, all employees were given supplies and told to start packing and labeling their files. Which stage of the Lewin model are they in?

Implementation

Aisha is putting together a task force, but she is concerned that one key member may become dominant and not allow others to offer input. Unfortunately, that person is important to the ability of the group to understand the background of the problem. What can Aisha do to manage this?

Include other strong-willed people on the task force

Nila has formed a task force to develop a cafeteria-style benefits package for all employees. They have generated many alternatives and provided a great deal of information as to which benefits will be most important to employees. What else will this task force help provide?

Increased acceptance of the decision

EvruTech developed an innovative new way to deliver products to its customers. At this point, most companies in the industry have access to this delivery method and are now using it. EvruTech's innovation has reached which stage?

Innovation maturity

Which of the following can managers use to promote effective group decision making?

Insist that a group evaluate all alternatives.

Apoorva believes in a functional organization structure and has begun implementing changes in the organization to match this structure. Which type of change is Apoorva creating?

Internal

As the plant manager, Eli is concerned with having enough employees to meet production needs and managing cash flow for a specific product. Which stage of the product life cycle is Eli likely managing?

Introduction

Which of the following is true of the BCG matrix?

It helps managers understand how strategic business units contribute to an overall organization.

Dezmon works for a large company, but lately he has been thinking about starting his own small manufacturing company. What should Dezmon keep in mind about the ability of small business owners to succeed in the manufacturing field?

It is not uncommon for small manufacturers to outperform big business in innovative-driven industries.

Why is the Lewin model of change considered to be less preferred than a comprehensive approach to change?

It lacks operational specificity.

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.

Kamiya plans to open a business writing software. While researching her strategy, Kamiya discovered a profitable niche in children's educational software. How will pursuing this niche help Kamiya outperform her competitors?

It will give her a distinctive competency.

Which of the following is a critical assumption of organizational development?

It will influence individual and group behavior.

Which of the following is true regarding job creation?

Jobs are created by entrepreneurial companies of all sizes.

Which of the following must occur for an organization to support differentiation?

Marketing and sales must emphasize the high-value image of an organization's products.

In which stage of the product life cycle should an organization begin to search for new products or services as part of its strategy?

Maturity

Overall demand growth for a product begins to slow down during which stage of the product life cycle?

Maturity

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.

Why are small businesses important to big businesses?

Most of the products made by big manufacturers are sold to consumers by small businesses.

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

Zereth is looking for ways to increase foot traffic into her brick-and-mortar locations. She has decided to open a small coffee shop with free Wi-Fi in her store. This is an example of which type of decision?

Nonprogrammed

How can encouraging creativity and flexibility help an organization that is pursuing a prospector strategy?

Opportunities can be created and it can quickly change to take advantage of them.

Janelle is in the process of selecting a new location for her beauty salon. She is using a rational decision-making model to evaluate the alternatives before her. Each of her four options is feasible and satisfies her decision criteria. Which of the following options should Janelle choose?

Option C, which has low financial costs and low nonfinancial costs

_____ change refers to any substantive modification to some part of the organization.

Organization

What can an organization use to plan change and intervention in the organization's process, and manage it from the top, using behavioral science knowledge?

Organization development

Approximately how many of the innovations introduced into the U.S. marketplace each year are supplied by small businesses?

Over half

ZeroBreeze Inc. is an outerwear manufacturer that caters to a large customer base. In addition to the high volume of coats and jackets that it manufactures, the company sells light jackets for low prices. Many customers buy ZeroBreeze jackets because they are durable and inexpensive. Which of the following strategies is illustrated in the scenario?

Overall cost leadership

Management at Azim's company has rolled out a new quality assurance process. It will be faster than the old process with little impact on actual quality. Azim feels that the new process will negatively impact product quality and will, ultimately, harm sales. Management might have been able to prevent Azim's resistance if Azim had been involved in planning and implementing the changes, rather than just notified of them. Which method of overcoming resistance would that have entailed?

Participation

When creating organization change that has to do with people, what is a common focus?

Perceptions and expectations

Which of the following is the most important source of money for financing a new business?

Personal resources

As the head of IT, Teresita is implementing one new hardware or software change each year. It is her goal to create change that is timely and orderly and that allows her to respond to future events. Which type of change is Teresita working on?

Planned

Jinhoon owns and manages a franchise sandwich shop and pays his employees minimum wage. Recently, his employees have met to discuss how difficult it is to live on minimum wage and to ask Jinhoon to increase the wages for all workers. Which type of decision-making element must Jinhoon now respond to?

Political forces

Which of the following can be a major disadvantage to a task force or committee?

Politics

Olesia is managing the diversification of divisions for her organization. She wants to monitor how to engage and manage subsidiaries to maximize corporate performance. What should Olesia use to track this information?

Portfolio management techniques

Sabine has developed an improved system for delivering parts to production employees when and where they need them. Which type of innovation did Sabine make?

Process

Which type of innovations are changes in the physical characteristics or performance of existing products or services or the creation of brand-new products or services?

Product

Decisions about when to reorder standard supplies based on quantity-on-hand information are most likely to be which type of decisions?

Programmed

Leader Books Inc. sponsors the Fairfax Public Library's summer reading program every year. The regional manager of Leader Books sends a check to the Fairfax Public Library in February of each year in order for them to prepare for the reading program. The regional manager's decision about when to send the check is which type of decision?

Programmed

Which of the following is a difference between programmed and nonprogrammed decisions?

Programmed decisions recur with more frequency than nonprogrammed decisions.

In what way can a new start-up use e-commerce to do business?

Quickly expand a new business easily

Which type of innovation includes new products and technologies that completely replace existing products and technologies in an industry?

Radical

Bhavik needs to address overcapacity at his plant, but he wants to avoid inappropriate assumptions and common pitfalls associated with making decisions. He wants his approach to be based on logic and sound reasoning. He also expects that his strongly held belief in benchmarking will enhance the quality of his decision. Which decision-making model should Bhavik use in this situation?

Rational

Which type of change has a greater potential to be poorly conceived and executed?

Reactive

Which type of change is based on developing circumstances?

Reactive

According to the comprehensive approach to change, which of the following is the first step in the change process?

Recognition of the need for change

Which of the following represents a managerial innovation?

Reengineering

Which is the most common type of diversification strategy for larger businesses in the United States?

Related

In which type of strategy does an organization operate in several businesses that are somehow linked with one another?

Related diversification

The best strategies do all of the following EXCEPT what?

Require resource deployment

Jolanta is determining how to distribute various resources in order to improve her organization's ability to compete in the market. What is Jolanta determining?

Resource deployment

Julius owns This'n'That, a shop in which nothing costs more than five dollars. He buys his products from a number of distributors to sell in his store. His customers are primarily people who live or work in the neighborhood. Julius's shop operates in which industry?

Retail

Which business segment is the fastest-growing segment of small-business enterprise, with fewer than 20 employees?

Service

Which industry are entrepreneurs drawn to because the industry offers the highest return on time invested and appeals to the talent and innovation that many small enterprises typify?

Services

Which of the following is true of small businesses' role in the economy?

Small business is a strong presence in the U.S. economy, as well as in virtually all of the world's mature economies.

Which of the following is true of job creation?

Small firms eliminate jobs at a faster rate.

Zereth buys leather goods to sell in her shop from a supplier overseas. Recently it was found that this supplier underpays its workers and has hazardous working conditions. As a result, many customers are refusing to buy this brand. In response, Zereth discontinued that line and replaced it with a local line. Zereth responded to external forces for change in which environment?

Sociocultural

Which of the following best defines an entrepreneur?

Someone who plans, organizes, operates, and assumes the risk of a new business

What is the advantage to those organizations who use unrelated diversification?

Stable performance over time

A store manager notices that monthly sales have been down 5 percent each of the last three months. Which step has this manager reached in the rational decision-making process?

Step 1: Recognizing and defining the decision situation

Geert would like to open a cafeteria to provide meals to workers at the local hospital. However, he needs to find a source of financing. He has approached the hospital to discuss them providing and building the cafeteria. Which source of financing is Geert pursuing?

Strategic alliances

Which of the following is true of decision makers in the classical decision model?

They have complete information about the decision situation and alternatives.

As the most common form of decision-making groups, which of the following includes members who openly discuss, argue about, and agree on the best alternative?

Team

Which of the following is an external force that drives an organization toward change?

Technological innovations in the market

What is escalation of commitment?

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

Which of the following is true of nominal groups?

There is very limited interaction among members.

How do managers with a high level of risk propensity compare with their more conservative counterparts?

They are more likely to achieve big successes with their decisions and to incur greater losses.

How is an organizational threat different from an organizational weakness?

Threats are uncovered by analyzing the organization's environment, while weaknesses are internal to the organization.

What is one of the main purposes of a SWOT analysis?

To identify distinctive competencies

One of the current trends in small business start-ups includes which group starting more new businesses?

Women

Which of the following would be an organizational change that would fall into the category of technology and operations?

Work processes

Jacque wants to open a diner in his community, but first he wants to learn more about the market, including the types of customers to expect and the food they might order. What is one of the best ways for Jacque to gain this knowledge?

Work in a diner before starting his own.

Which question should be answered by a business plan?

What are the entrepreneur's goals and objectives?

Which of the following is one of the basic questions that is answered in a business plan?

What strategies will the entrepreneur use to obtain his or her goals and objectives?

At what point should an entrepreneur ask the questions, "who are my customers, and where are they?"

When seeking an opening in the market for a start-up

Which unique skill does a product champion usually possess?

Where to secure resources for successful development

Once an alternative has passed the test of feasibility, what must be considered as it relates to that alternative?

Whether the alternative satisfies the conditions of the decision situation

Andy opened a business called Quality Textiles. He imports linen, silk, and high thread count cotton sheets and distributes them to bedding stores in the Midwest. Quality Textiles is a business in which industry group?

Wholesale

For a given volume of business, a firm in which industry group would typically need the fewest employees?

Wholesale

Which type of business buys products from manufacturers or other producers and then sells them to retailers?

Wholesale

Ramkumar works in an organization's European office, and Atmir works in the Asia Pacific office. Even though they both work for the same firm, both offices operate differently, based on the unique needs in each country. Which of the following contributes to that?

Worldwide learning

A theoretical advantage of unrelated diversification is that _____.

a business will have stable performance over time

A manager who relies heavily on intuition and reaches decisions quickly has the characteristics of a person with _____.

a high level of risk propensity

The choice of creating an entrepreneur-friendly environment is good public policy because small businesses _____.

are an important source of new jobs

When using the administrative model of decision making, decision makers _____ .

are limited by unconscious reflexes

Organizational opportunities are _____.

areas in the environment that may generate higher performance

One advantage of team decision making is that _____.

better decisions generally emerge

When entering into a new business, having established supplier relationships is an advantage to _____.

buying an existing business

The decision-making process begins by _____.

defining the decision situation

Marah initiated a new quality assurance process. It will be faster than the old process with little impact on actual quality. Ozlem continues to argue against the change process because she feels that the new process will negatively impact product quality and will, ultimately, harm sales. Her resistance is based on _____.

different perceptions

Camille's Coffee Shop has a very small share of the market and has no plans for growth. According to the BCG matrix, this business is a _____.

dog

Sources of advice regarding management include all EXCEPT _____.

information technology professionals

Dajhia has assembled a task force to consider ways to respond to the threat of unionization by some hourly employees. This task force is an example of a(n) _____ .

interacting team

Renata, the manager of Bath and Beauty Boutique, expects her staff to make a certain amount of decisions based on their experience and the practice they have in making decisions in similar situations. In other words, she wants them to rely on _____.

intuition

For years, Rabeya's purchasing department has used a cycle counting system to monitor inventory levels. Upper management has decided to convert to an automated perpetual inventory system that will reduce costs and improve accuracy. This type of organization change is known as _____.

reengineering

In the growth stage of the product life cycle, the _____.

sales of the product increase

The Lewin model of organizational change process includes refreezing, which involves _____.

supporting the change

Chartab Industries recently adopted a new enterprise resource planning (ERP) system to help with financial reporting. The company's adoption of the new ERP system reflects a change in the area of _____.

technology and operations

Sushil has purchased and installed new equipment for two of the production lines in her department. This is an example of a change in the area of _____.

technology and operations

Helena has been particularly resistant to the new restructuring where she works. Her department is now slightly smaller than it was before, and she feels that this will give her less influence in the company. Helena's resistance is based on _____.

threatened self-interest

If an organization has higher prices for a similar good or service, the prices are an organizational _____.

weakness

Amina's department has been having problems with its order fulfillment system. Orders went through three different people on the path from receipt to fulfillment. They found that if one person handled the first two steps, the process had fewer errors. When Amina made this change, she was changing the _____.

work sequence

Approximately which percentage of businesses in the United States are owned by women?

29 percent

When devising a new strategy, it is best to start with what?

A SWOT analysis

Ugar manages a bakery and has seen his sales decline. He has many customers come in who are looking for gluten-free products, which he does not have. He would like to find a way to capture this market. Many also come in and want to enjoy their purchase at the store with coffee, which he does not sell. Those customers leave without making any purchases. Which of the following steps in the comprehensive change model would improve Ugar's approach and his likelihood for success?

Diagnosis of relevant variables

Paramita, a recent college graduate, opened a small sandwich shop just off campus. She had never done this kind of thing before, but she enjoyed cooking and putting together creative combinations. Paramita did her research and knew what services to offer at what prices, and she was willing to put in the time and effort needed to succeed. Despite all this, her business failed. What reason for success is missing from this picture?

Managerial competence

Junhua is a "morning person " and holds his staff meetings at 8a.m. Members of his staff have suggested that a later meeting time would be more effective for most employees, but Junhua is a creature of habit and insists that meetings be held early in the morning since that has always worked best for him. In this scenario, Junhua's decision making is being constrained by _____.

bounded rationality

A person who develops new businesses within the context of a large organization is a(n) _____.

intrapreneur

What is a strategy?

A comprehensive plan for accomplishing an organization's goals

Which type of strategy would allow an organization to try and maintain its current business while also trying to be innovative and pursue new businesses?

Analyzer

Woojin has been thinking about starting his own firm, but he is uncertain about the time and other resources he will need to devote to the process. What should be Woojin's first step in launching a new start-up?

Assess his commitment to becoming a business owner.

Nour is planning to open a small retail shop in her town. Although she does not need to borrow money, a friend suggested she develop a business plan. What will a business plan help Nour accomplish?

Crystallizing her thinking about how to launch the business successfully

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, and choose the alternative that best fits the situation.

Pallavi is worried about how the new procedures for quality control will affect her job. Because she does not understand these new procedures, she has become very resistant to using them. What might have prevented Pallavi's reaction to this change?

Education and communication

Lupita's company is experiencing high turnover and she needs to develop a solution. Using the rational decision-making process, Lupita thinks that adding benefits might not help with turnover, but increasing wages or changing hiring standards might. Which step in the decision-making process is Lupita in?

Evaluating alternatives

Changes in car emissions standards forced automakers to design and build more fuel-efficient vehicles. In this situation, the automakers are responding to which force for change?

External

Based on the forces for change, what is a primary reason for problems that organizations face?

Failure to anticipate or respond to change properly

Because Jolanta believes that each item she produces should be custom fit for each customer, she does not allow the online purchasing of her specialty clothing line. However, she now finds her sales are declining, and once-steady customers who asked for online ordering are no longer shopping with her. Which of the following is affecting Jolanta's business?

Failure to recognize opportunities

A regional mortgage company servicing a limited geographical area is a small business in which industry?

Finance

What is the second step in the Lewin model of organizational change?

Implementation

Which type of innovation refers to a new product, service, or technology that modifies an existing one?

Incremental

At which stage in the organizational innovation process does the organization no longer maintain a competitive advantage because of a decrease in demand?

Innovation decline

During recent union negotiations, Hua, the company's labor expert, refused to concede to a demand made by the union. While this could have resulted in a strike, Hua felt the union was bluffing and would not strike. What was Hua's decision to refuse the union's demand based on?

Intuition

Destani has a small business that is doing well, and she is ready to expand. Before she does, she would like to meet with other female business owners and get their feedback. How might Destani seek out information from other women to do this?

Join a networking group.

When Hua opened his small business, he immediately had several regular clients, and the business was growing. Despite all this, Hua found that he was not making enough money to cover all expenses, let alone turn a profit. After three months, he couldn't pay supplies or pay his employees and he closed the business. What led to this business failure?

Lack of capital

The management at BigWell Industries understands the need to innovate in order to remain competitive. Unfortunately, BigWell does not have the creative personnel on staff to drive innovations, and it lacks the budget for any new hires this year. BigWell's failure to innovate can be blamed on what?

Lack of resources

Yui is working on a new marketing campaign and has decided to form a team to help with this process. What are the advantages of using a team for the marketing decisions?

More alternatives are likely to be generated.

Which of the following people is most likely to be an entrepreneur?

Myrna used her savings to start a computer repair service.

Which type of group is a group in name only, as the members are brought together in a face-to-face setting but do not talk to one another freely?

Nominal

According to Jinhoon's analysis, the market for products made in his plant should grow three to five percent over the next five years. To prepare for this, Jinhoon is making arrangements to expand his manufacturing facility and increase staff to meet the increased demand. Which type of change is Jinhoon implementing?

Planned

As a manager, Kaia is working closely with employees to help them become accustomed to the new equipment they are using. She wants them to make these new processes part of the system. Which part of the Lewin model is Kaia using?

Refreezing

Scott works for a firm that specializes in oil and gas products. During the last recession, one of the business units lost considerable income, but other parts of the business were healthy enough to offset that loss. Which type of corporate strategy was Scott's company using?

Related diversification

MollyMaids, a small business that cleans houses, is in which industry group?

Services

Olesia put up her personal money to start a business and hired a professional manager to run it. What can be said of Olesia?

She is assuming the risk of the venture.

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

When we refer to strengths in a SWOT analysis, what is being referred to?

Skills and capabilities that help an organization implement its strategies

Ahmed has managed a company for seven years. He employs sixty people and has annual sales in excess of $20 million. The company he works for has no real influence in the market. Which type of business does Ahmed run?

Small business

Which of the following is true of trends in small businesses?

Small businesses suffer a higher mortality rate than larger concerns.

Petra is a senior manager, and she is highly supportive of a new product being developed in the organization. Petra has provided a budget for this project, and she uses organizational politics to ensure this project is completed. Petra is playing which intrapreneurial role?

Sponsor

In which situation is the decision maker most likely to make a mistake?

State of uncertainty

Maya would like to increase sales for the upcoming holiday season. She plans to increase advertising in the local paper, cut prices on selected items, or implement a loyalty program. Which step has Maya reached in the rational decision-making process?

Step 2: Identifying alternatives

The Pour House coffee shop wants to increase sales and local foot traffic. The owner has considered daily specials, loyalty programs, and expanded menu selections. Ultimately, he decided to implement a loyalty program because it stimulates repeat business and customer loyalty. He has not started the new loyalty program yet. Which step is the manager of the Pour House at in his rational decision-making process?

Step 4: Selecting the best alternative

A competitor of Avec's company just lowered its prices, and this is causing some of her long-time customers to reconsider their work relationship with her company. Which external force for change in the environment will Avec have to respond to?

Task

Why do people who start small retail businesses tend to favor specialty shops?

They can focus limited resources on narrow market segments.

Atmir wants to make changes to the health insurance plan his company offers. After researching plans and costs, he set up meetings to explain to leadership why these changes are necessary. Which stage of the Lewin model are they in?

Unfreezing

Once an entrepreneur has chosen an industry to compete in and determined which distinctive competencies to emphasize, these choices are usually included in a document called a _____.

business plan

According to the BCG matrix, businesses that have a large share of a market that is not expected to grow substantially are considered _____.

cash cows

Middleboro, VT, has experienced a recent upsurge in new business development. Some of the economic progress has been the result of a community partnership with the local college that was created to stimulate entrepreneurship in the community. The most likely reason that the partnership chose entrepreneurship as a method of boosting the health of the town's economy was because it _____.

creates new jobs

Elaine has opened a donut shop. She invested her own resources to start the business. She makes all major decisions regarding what products it provides and at what prices. Elaine will be taking full responsibility for the success or failure of the donut shop. Elaine is most likely a(n) _____.

entrepreneur

Arayla plans to open a small business and estimates that the new operation will require $800,000 during the first three years. She has $100,000 in personal savings to invest in the new venture. The balance will be borrowed from the Second State Bank. Arayla is in the process of _____.

financing the business

After several employees complained about being underpaid, management was able to collect data from the industry to show that the firm pays a competitive wage and offers excellent benefits. In this scenario, management is trying to change _____.

perceptions

An organization that implements a defender strategy focuses on _____.

protecting its market from new competitors

Blair works at a convenience store. One of the three slushy machines in the store has clogged four times this week. Now Blair is looking at the machine and trying to decide if the problem is a bad machine, if employees are not filling it properly, or if people are just using it incorrectly. Blair is currently _____.

recognizing and defining the decision situation

Under the SBA's guaranteed loan program, a small business can borrow money from a commercial lender, and the SBA guarantees to repay 75 to 85 percent of the amount, not to exceed _____.

$5 million