MGT True/False

The statement that identifies the scope of a company's operations in terms of products and markets is the tactical plan.

False

There are four distinct levels of international business activity that differentiate organizations.

False

Typically, the first type of international business in which most firms engage is direct investment.

False

Unpleasant outcomes will not occur as long as an individual makes ethical choices

False

WellPoint insurance customers medical records, credit card numbers and other sensitive data were compromised by a security breach. The potential abuse of information technology is an ethics dilemma for only a few companies.

False

Strategic planning is more closely associated with top management than with middle management.

True

The EU created the first economic community.

True

The Food Allergy and Anaphylaxis Network is working to ban peanuts on airline flights. This is an example of a special interest group attempting to act in the role of regulator.

True

The Siemens Foundation conducts Siemens' Science Day in schools across the country reaching thousands of children. Teachers choose the activities that complement their curriculum. Siemens employees lead the activities from pre-made kits. The employees follow a standing plan.

True

The ability to assign probability estimates to the various outcomes in a decision-making situation is associated with the decision-making condition known as risk.

True

The concept of synergy suggests that two people can achieve more working together than they can achieve working individually.

True

The external environment of an organization consists of the organization's general environment and task environment.

True

The fundamental premise of the human relations movement is that the social aspects of the workplace are more important to increasing worker productivity than economic incentives.

True

The least common decision making condition is the state of certainty.

True

The steps to be followed in case of a fire are posted on the back of every hotel door. These instructions are an example of a standard operating procedure.

True

The top managers of an organization determine the organization's ethical standards of behavior.

True

The two major types of operational plans are single-use plans and standing plans.

True

The use of color holds significant symbolic value in most cultures.

True

The values held by an organization's founder or founders are often among the major determinants of corporate culture.

True

Toyota Motors owns factories in the United States, which manufacture Toyota-brand cars for sale to U.S. customers. Toyota is making a direct investment.

True

Understanding the product life cycle is important to managers because strategies need to evolve over time to keep pace with changes the product experiences over its life cycle.

True

When a firm develops a set of strategic alternatives for all the various businesses in which it competes, it has developed a business-level strategy.

True

Zynga is the creator of FarmVille, a popular game on Facebook. Zynga expanded to the Apple iPhone, iPod Touch and iPad markets. Zynga and Apple have a strategic partnership.

True

The product life cycle and BCG matrix combine to show that products progress from dogs, to question marks, to cash cows, to stars.

False

Talbots, an American company, owns a factory in Macau that makes clothing. The clothing is sold in the United States. This is an example of a strategic alliance.

False

The GATT replaced the WTO.

False

The resource deployment dimension of a strategy defines the markets in which the organization intends to compete.

False

The Hawthorne studies showed that piece-rate pay systems are effective in increasing worker output up to the limit of the workers' physical capacity.

False

The activity of acquiring another company is primarily an outcome of controlling.

False

The culture of an organization is easy to measure objectively.

False

The first step in planning is to write the operational goals.

False

The original Hawthorne studies found expected results⎯that workers' productivity seemed unrelated to the level of lighting

False

Spirit Airlines was the first to start charging passengers extra for services that used to be included in the ticket. Other airlines quickly followed. Spirit Airlines has a distinctive competence in pricing.

False

Tactical goals are built upon the foundation provided by the organization's mission statement.

False

The simplest way to get involved in international business is by Maquiladoras.

False

Tactics focus primarily on resources and the environment, whereas strategies focus primarily on people and actions.

False

"Stars" in the BCG matrix are products that control a small share of a growing market.

False

"Vice President" is a common title for a middle manager.

False

A SWOT analysis evaluates the organization's strengths and weaknesses against the environment's operations and tactics.

False

A company in France makes and sells baby food in France. The product is from a patent held by an American company and the France-based firm pays the American manufacturer a specified amount for each unit sold. These two firms are operating under an exporting agreement.

False

A company operating solely in the USA will not be impacted by globalization

False

A program is used for a set of activities that are expected to occur repeatedly.

False

Administrative management focuses on improving the output of individual workers as opposed to improving the management of the whole organization.

False

An example of a human resource is the stockholder who invests money in a corporation.

False

Both people and organizations have ethics

False

Choosing between alternatives is risk assessment.

False

Coca-Cola uses the same recipe for coke around the world, but it changes the packaging and marketing. Coca-Cola uses a single-product strategy.

False

Ethics is defined as "an organization's beliefs about what is right or wrong."

False

Fast-food restaurant cannot build standard designs in the historical district of Jackson Hole Wyoming. Fast-food establishments must use architecture that complements the structures in the neighborhood. This is part of the economic dimension of the general environment.

False

First-line management typically contains the largest contingent of managers within an organization.

False

History is a conceptual framework for organizing knowledge and providing a blueprint for action.

False

Interest rates, government regulation, and development of computer systems are all part of the task environment.

False

International licensing agreements involve regulations for truckers transporting products between countries.

False

Kinneri is a general manager for Marriott hotels in Philadelphia. She would best be classified as a first- line manager.

False

MBT first introduced 'toning sneakers' with a rounded bottom. Other shoe companies quickly imitated the design. MBT has a distinctive competence in sneaker design.

False

Managers at Six Flags amusement parks made the decision to form a strategic alliance with Papa John's pizza. This is an example of a programmed decision.

False

Managers can disregard the general environment because it is vague, imprecise and long-term.

False

Managers should lead by example. Therefore they need all the technical skills to do the jobs of their subordinates.

False

Managers who are able to see the overall relationships among their organization, its competitors, its suppliers, and the economy are said to have good technical skills.

False

Managers who deal with the marketing aspects of a firm are frequently referred to as financial managers.

False

Managing is a sequential process of planning, organizing, leading, and controlling.

False

Melissa Mayer holds informal "office hours" two to three times a week to keep her ears open and build a reputation for being receptive. Her approach reflects application of scientific management.

False

Most MNCs use direct investment exclusively because they are so big they can afford to buy companies.

False

Most products sold in the United States are currently in the introduction stage of the product life cycle.

False

Operational goals are set with and for middle managers.

False

Operational plans have a longer-term focus than either strategic or tactical plans.

False

Over time, SBUs tend to remain in one category of the BCG matrix.

False

Planning is the most challenging of all the managerial activities.

False

Policies are the most specific types of standing plans.

False

Porter's generic strategies of overall cost leadership, differentiation, and focus all concentrate on reducing the firm's expenses to minimal levels.

False

Quantitative management is useful to managers today because it offers insights into individual behavior, motivation, and social interaction in organizations.

False

Ritz-Carlton opened a hotel outside Tucson. It could use the same program to open a hotel at another location.

False

Since the passage of the Sarbanes-Oxley Act turnover in the CFO position has risen dramatically. CFOs point to greatly increased risk without increased reward. Increasing regulation has few side effects.

False

A given organizational unit could be either a system or a subsystem, depending on the context in which you are studying it at a given point in time.

True

According to McGregor, Theory X typifies negative managerial thinking.

True

An SBU is a distinct business or related set of businesses contained within a corporation's structure.

True

An effective strategy is one in which an organization is properly aligned with its environment and therefore is likely to achieve its strategic goals.

True

Anthony is a freshman in college. He must select a major course of study. For Anthony, this decision is a nonprogrammed decision.

True

Asha is a realtor selling her own home, but she does not disclose that information to potential buyers. Asha has a conflict of interest.

True

Belgium was the first EU country to outlaw burqas, full body covering worn by some Muslim women. Lawmakers stated concern about the ability to identify people in public. Masks are also not allowed. This is an example of the cultural context of international business.

True

Citicorp settled a civil lawsuit by the SEC for $75 million, which was less than 3% of its quarterly net income. Citicorp chose to settle, a state of certainty rather than go to trial with a state of uncertainty.

True

Decision making is perhaps the most basic and fundamental of all managerial activities.

True

Effective strategies address distinctive competence, scope, and resource deployment.

True

Ethical actions conform to generally accepted social norms.

True

First-line managers typically spend a large portion of their time supervising the work of subordinates

True

Google is known for its excellent search engine, rapid growth, and unusual working environment. Based on this information, Google must be an effective company.

True

If a manager makes a decision and has a computer program written to embody the decision, the manager is apparently dealing with a programmed decision

True

Iftikhar is trying to decide where to invest company funds and has determined that there are only four options open to him that will provide a guaranteed return on the funds. He is operating under the decision-making condition known as certainty.

True

International mergers are more complicated than domestic mergers.

True

Jacques Torres started Jacques Torres Chocolate. He is an entrepreneur. He used all the management activities: planning, decision making, organizing, leading, and controlling.

True

Kathy Meier is in an apprenticeship program to learn the skills required to be a plumber. She will be learning technical skills.

True

Making the right decisions and successfully implementing them is known as effective management.

True

Managers can be classified by both the level of the organization at which they work and the area in which they specialize.

True

Managers who select a course of action from among a set of rational alternatives are involved in decision making.

True

Maquiladoras are an example of what the text refers to as direct investment.

True

Most organizations have a difficult time focusing on weaknesses

True

Programmed decisions are routine decisions that deal with factors that are familiar and have occurred in the past.

True

Recent business scandals have focused more attention on corporate governance.

True

Rules, regulations, and SOPs are similar in that they are substitutes for decision making.

True

Scientific management is called "scientific" because it attempts to use scientific methods such as focused observation, experimentation, and quantifying of results to improve management.

True