Sample Questions Exam 1

Avec runs an organization that is in a rapidly changing environment. Which management perspective should Avec take when planning how to respond to changes in the environment?

Contingency

What is often at the center of debates on ethics and social responsibility?

Corporate governance

Olesia is a strong believer in corporate social responsibility. Which argument would support Olesia's view?

Corporations are citizens in our society.

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 does research suggest about the potential of success for new businesses and entrepreneurship?

Entrepreneurship yields a high level of business failure.

What might occur to an organization when it does not monitor feedback from its environment and make adjustments as needed?

Entropy

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

What was Henri Fayol's contribution to the field of management?

He was the first to identify the specific managerial functions of planning, organizing, leading, and controlling.

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.

What is true of a tactical plan?

It is developed to implement specific parts of a strategic plan.

A cell phone company manager has a goal of boosting the profitability of her store in the next year. Which type of goal has the manager set?

Operational

Marah has been tasked with the job of outlining decisions about resource allocation, priorities, and action steps that are necessary to reach one of his company's strategic goals. What is Marah developing?

Strategic plans

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 are the skills and capabilities that do not enable an organization to choose and implement strategies that support its mission?

Weaknesses

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

Wholesale

Where does any effort to enhance ethical behavior in the workplace begin?

With top management

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.

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

Culture can be maintained by _____.

slogans and ceremonies

Organizations relate to their environments in ways that often involve ethical dilemmas and decisions. These situations are generally viewed within the context of the organization's _____ .

social responsibility

The local university has set up a task force and committed to increasing recycling efforts and reducing its carbon emissions by 50% in the next ten years. These efforts demonstrate a commitment to _____.

social responsibility

Jinhua discovered that many of his employees were deliberately working at a pace lower than their capabilities in order to get more hours. Learning from the work of Frederick W. Taylor, Jinhua implemented a piecework pay system based on output in order to eliminate _____.

soldiering

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

________ are businesses that have the largest share of a rapidly growing market.

stars

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

Which of the following are two or more companies that work together in a joint venture or other partnership in the task environment?

strategic partners

A comprehensive plan for accomplishing an organization's goals

strategy

Lighthouse Cinema has enjoyed a successful history in the town of Battle Ridge, VA. Despite the growth of multiplex theaters in most population centers, Lighthouse Cinema has remained a popular entertainment option for the surrounding area, based on its small size and location. This movie theater's popularity and attractiveness as a destination are a(n) _____.

strength

According to the systems perspective, the marketing, production, or finance functions of a company would all be considered _____ .

subsystems

DynaView produced a cartoon program that became extremely popular. DynaView went on to create toys and games based on the characters in the program, launch a breakfast cereal featuring the program's characters, and start a line of children's clothing. All of these separate divisions within DynaView benefit from the success of the others. In this situation, according to the systems perspective, DynaView is benefiting from _____.

synergy

Which of the following includes inputs, transformation processes, outputs, and feedback in a way that allows them to function as an interrelated set of elements?

system

What is the basis for operational plans?

tactical plans

Roberto is a strong believer in social responsibility and wants his company to become more socially responsible. One of the arguments he makes is that _____.

the company has surplus revenues that could be used to solve social problems

What is the third step in developing contingency plans?

the company specifies certain indicators or signs that suggest that a contingency event is about to take place.

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

Construction

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

23.5 percent

Approximately what percentage of the jobs in the high-technology sectors of the U.S. economy are filled by small businesses?

40 percent

Most experts recommend that a new business should have enough capital on hand to operate for at least how long without earning a profit?

6 months

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

What is a strategy?

A comprehensive plan for accomplishing an organization's goals

Pallavi knows that if she is able to achieve the goals set by her manager, she is likely to receive a bonus. In this case, what does the setting of goals serve as for Pallavi?

A source of motivation

What is a tariff?

A tax collected on goods shipped across national boundaries

What is the first step in developing contingency plans?

Consider contingency events when developing strategic, tactical, and operational plans

What is the advantage of setting business-level strategies?

Ability to focus efforts in a targeted manner

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

Rene is a manager at a medium-size hospital. She has basic familiarity with all functional areas necessary to manage the hospital. Which type of manager is she?

Administrative

The need to provide structure and direction to enable a growing group of middle managers to plan, organize, lead, and control calls for which management perspective within the new top management team?

Administrative

Which area of classical management should you study to learn more about managing the total organization?

Administrative

Ugar is a manager who likes change. When people become complacent, he tries to shake things up to reenergize them. Ugar is likely to see change management as:

An opportunity

How can managers use knowledge of theory and history in contemporary organizations?

As the basis for new, personal theories

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.

In some countries, it is expected that people shake hands when they are introduced. In other cultures, the appropriate action is to bow slightly or to exchange business cards. These are examples of which type of process that vary in a global economy?

Behavioral

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

Bounded rationality

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

Bounded rationality

The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market.

Business-level strategy

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 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

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

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

Samir is the supplies purchaser for his office. Samir's brother is a sales rep at a firm that offers a competitive price on the copier paper Samir needs to buy, so Samir did not look for a less expensive supplier. What might have occurred in this scenario?

Conflict of interest

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

Decision making

Which type of management skills refer to the manager's ability to correctly recognize and define problems and opportunities?

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.

______ are businesses that have a very small share of a market that is not expected to grow.

Dogs

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

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

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

Finance

Ira is a manager at a textile company. He and his staff are focused on accounting, cash management, and investment activities. In which area of the company does Ira work?

Finance

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

First-mover advantage

Who was one of the earliest advocates of scientific management?

Frederick Taylor

Which trade agreement uses the most favored national (MFN) principle, in which members of the agreement receive preferential treatment?

General Agreement on Tariffs and Trade (GATT)

Although standards of ethics vary from person to person, how do we apply the concept of ethical behavior?

Generally accepted social norms

Which of the following is used to provide a source of motivation for an organization's employees?

Goals

Ozlem has just finished reviewing the new mission for his organization. What will this mission help to determine?

Goals and plans

Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an important component of the company's growth strategy. As the management team considers the best approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?

Greater political risk

Mikel is a middle-level manager who is in the process of determining goals and objectives for his managers. He has set goals he feels are necessary to achieve the strategic goals given to him. Which of the following will these goals focus on?

How to operationalize actions

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

How will the alternative affect competitors?

As a middle manager, what might Yui's job entail?

Implementing policies and plans

What is the relationship between quality and productivity?

Improving quality tends to increase productivity because making higher-quality products generally results in less waste and rework.

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

Bonafide Fresh offers an expanding brand of personal care products that are made with all-natural ingredients. The company has an organizational goal to increase the number of product lines that it offers. Which of the following is the best example of a tactical plan for achieving this objective?

Increasing efforts over the next year to develop a line of children's skin protection products

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

Insist that a group evaluate all alternatives.

Which type of regulator is formed by its members to attempt to influence organizations?

Interest group

Which of the following is a part of an organization's general environment?

Interest rates

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.

Which of the following is true of organizational culture?

It consists of a firm's set of values and beliefs.

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.

Who or what is generally the starting point of an organization's culture?

Its founder

Jewel wants to expand into the South America market by purchasing a small production company in a South American country to handle production and distribution. Which of the following best characterizes this arrangement?

Jewel wants to buy a wholly owned subsidiary in South America.

Which of the following is true regarding job creation?

Jobs are created by entrepreneurial companies of all sizes.

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

What is the basic premise of ethical leadership?

Leaders serving as role models

Since the company's founding, Petra and her top executives have provided a consistent message to employees that customers, employees, communities where the company did business, and shareholders were all important. This is an example of which type of informal organization dimension of managing social responsibility?

Leadership practices

As the top human resource executive, Ahmed is responsible for ensuring compliance with regulations concerning hiring, pay, and workplace safety. Which formal dimension of social responsibility is Ahmed involved in?

Legal

Montazar has formed an agreement with an international firm whereby he can use its brand name and technology on his products. In return, he pays the other firm a royalty, based on sales. Which type of arrangement has Montazar entered into?

Licensing agreement

In the context of SWOT analysis, which of the following would be considered as an organization's weakness?

Low cash reserves

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

_________ science focuses specifically on the development of mathematical models.

Management

Eli's company has decided to pay workers a living wage instead of a legally required minimum wage. Eli considers this part of the ethical treatment of his employees. Which type of ethical standards is Eli promoting in his organization?

Managerial

In which way is crowdsourcing a solution different than using the Delphi technique?

Not everyone is an expert.

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

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 field of management typically works with clients and consumers in areas such as new product development, promotion, and distribution?

Marketing

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

Maturity

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

Maturity

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

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

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

Myrna used her savings to start a computer repair service.

Many managers are facing an increased work pace, less time to think through a decision, and more information to process. This can all be tied to which contemporary management challenge?

New technology

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

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

Each summer the local running club hosts a marathon and looks for sponsors to support the event. This year, they contacted the local water bottling plant. The manager of the plant can see the benefits of this event, but the plant has never participated in something like this. Which type of decision needs to be made about the potential sponsorship of the local marathon?

Nonprogrammed

Manoj is considering the acquisition and conversion of a nearby production facility to increase output of his company. This decision is an uncommon one for Manoj to make, and he does not have a formula to follow for making this decision. Which type of decision does Manoj need to make?

Nonprogrammed

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

Which approach in management acknowledges that human behavior is much more complex than the human relationists realized?

Organizational behavior

What is an informal organizational dimension of managing social responsibility?

Organizational culture

Using simple product design coupled with efficient high-volume manufacturing capacity may help a company achieve what?

Overall cost leadership

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

Destani bought stock in her favorite technology company, giving her legal property rights to the business. Destani is now a(n) _____.

Owner

What is a Theory X assumption?

People prefer to be directed and to avoid responsibility.

Which of the following is the key element in quality decisions about what is right behavior for a situation?

Personal judgment

Which of the following is a formal dimension of managing social responsibility for organizations?

Philanthropic giving

When considering the basic management functions, decision making is part of which process?

Planning

Dajhia is currently a first-line manager, and wants to move up into middle management. What job title should she look for when looking at her company's internal job postings?

Plant manager

What is a standing plan that specifies the organization's general response to a designated problem or situation?

Policy

The availability of natural resources and the variation in government regulation are just two of the challenges posed by _____.

globalization

Alacorp wants to open a new plant and has narrowed the search down to three possible cities. Mikel's job is to investigate the deed and zoning restrictions of each potential location, as well as the tax rates. Mikel also must report on each city council's history in working with new businesses. Mikel is focusing on which dimension of the general environment?

Political-legal

Car manufacturers must meet certain emissions standards as dictated by the federal and state governments. This requirement is an aspect of which dimension of the general environment?

Political-legal

Neal is the head of the marketing department. Under his guidance, marketing supervisors have developed a three-stage operating plan to support the organization's goals. They are planning an elaborate six-month campaign to distribute samples to a wide variety of retail and restaurant outlets for the purpose of increasing brand identity. Which type of single-use plan will Neal's department use to accomplish this goal?

Program

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

Programmed decisions recur with more frequency than non-programmed decisions.

What is an effective way to establish one common vision and direction when organizations with different cultural norms merge?

Promote employees whose behaviors are consistent with the desired culture.

Ramkumar is the head of human resources at a large firm. For the past few years, his firm has had a difficult time hiring and retaining employees. What can Ramkumar do to better attract and retain today's workers?

Provide new and different incentives.

________ are businesses that have only a small share of a quickly growing market. Future performance is uncertain.

Question marks

Armen runs a profitable jewelry manufacturing company and sells in many international markets. However, one country he sells to has just placed a limit as to how his company can sell in that country. Which of the following will now limit how much Armen can sell?

Quota

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 of the following is a dimension of an organization's task environment?

Regulators

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

Whose works should you study if you want to understand the origins of the recognition of the importance of human resources and the personal welfare of workers?

Robert Owen

Which type of management perspective deals with improving the performance of individual employees?

Scientific

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

Service

Offers free consulting services to help individuals starting new businesses. These counselors are available through the Small Business Administration.

Service Corps of Retired Executives (SCORE)

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

The culture at SilverCircle is quite weak. The management team changes often. Employees are not able to sense any direction or purpose for the company, and there is a high turnover rate. In contrast, employees at Wellesby speak very highly of their company. Many of them have worked there for years under the guidance of a steady management team. The differences in culture at the two companies are in part attributable to what?

Shared experiences

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

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.

Which of the following is true of job creation?

Small firms eliminate jobs at a faster rate.

In order for a tactic to be successful, what must it include?

Specific resources and time frames

Neal is the head of the marketing department. Under his guidance, marketing supervisors have developed a three-stage operating plan to support the organization's goals. They are launching an online ordering system for retail and restaurant accounts. The new system simplifies and clearly outlines the steps to be followed from sales inquiry to final order payment. Which type of standing plan will be used to enhance the ongoing efficiency of the order management process?

Standard operating procedure

Which type of a standing plan outlines the steps to be followed in particular circumstances?

Standard operating procedure

Which of the following refers to a condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates?

State of risk

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

State of uncertainty

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

_____ plans are set by the board of directors and top management.

Strategic

The managerial function of controlling involves _____.

monitoring an organization's progress toward its goals

Rumi has found that selling gluten-free products at her bakery has been an effective strategy and has allowed her to achieve some of her strategic goals for sales. Which of the following makes this an effective strategy for Rumi?

Superior alignment with her environment

When Amina needs additional employees on a short-term basis, she contacts an employment agency. This agency not only has employees Amina can contract with on a short-term basis, but it shares information on trends and economic conditions with Amina. Which aspect of the task environment does the employment agency work in when supporting Amina?

Supplier

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

Supply

The best strategies do all of the following:

Support the mission; Exploit opportunities and strengths; Neutralize threats

Carduci Corporation is a food processing company that specializes in a complete line of artisan sausage products. The top leaders in the organization have established a strategy that involves increasing the marketing budget to grow sales. Neal is the head of the marketing department, and it is his job to develop a plan that flows from and is consistent with the strategic plan. What type of plan will Neal work to develop?

Tactical

_______ plans clearly state which resources are to be used and a timeline for completion

Tactical

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.

Which type of environment includes information a firm can use about competitors, suppliers, customers, and strategic partners?

Task

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

As a first-line manager, Payal spends a lot of time training her employees and answering questions about work-related problems. Which type of fundamental skill does Payal use to do this?

Technical

Which type of management skills are necessary to accomplish the specific kind of work done in an organization?

Technical

Over the next several years, Sushil expects electric vehicles to change the way the retail gas and oil unit of her firm does business . The expansion of electric vehicles will impact which general environment dimension for Sushil's firm?

Technological

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.

Polani is working on her firm's approach to social responsibility. How should she approach the development of this strategy?

The same way as any other business strategy

What must a decision maker understand in order to make the most effective decision possible?

The situation driving the decision

Paramita believes that people naturally do not like work , and as a manager, she must control, direct, coerce, and even threaten her employees to get them to work toward the organization's goals. Paramita's management style is informed by which view within the behavioral management perspective?

Theory X

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.

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

They can focus limited resources on narrow market segments.

Why do organizations have a difficult time focusing on weaknesses?

They might indicate poor managerial skills.

Why do operational plans tend to be narrowly focused with short time horizons?

They support tactical goals.

As part of Sushil's performance review, she was given a list of goals and objectives. How will her work on these goals affect her in the future?

They will serve as a mechanism for performance evaluation.

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.

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

To correct them

Why is the planning and decision making function important to managers in an organization?

To determine how to allocate resources

In which way can managers use information from the product life cycle?

To determine which strategies for products need to evolve

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

To stay in business

Which of the following is considered to be the first step in the planning process?

Understanding the environment

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

are limited by unconscious reflexes

Which management perspective helps contemporary managers recognize the importance of employees as valuable resources instead of mere tools?

behavioral

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

An organization's culture _____.

can become a weakness

Most successful entrepreneurs _____.

carefully analyze market conditions

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

When Yui began a new job, included in her packet of information was a set of guidelines for how to act in accordance with the firm's values. These guidelines are the firm's _____.

code of ethics

Manoj is very good at transmitting ideas to others, coordinating work with peers and colleagues, and keeping higher-level managers informed. In other words, Manoj excels at which type of skills?

communication

One disadvantage of team decision making is that _____.

compromise decisions may emerge

Cora is an operations manager for a privately owned Midwestern trucking company. She spends the first day of each month reviewing the previous month's productivity levels and compares that information against monthly goals. This basic management function is known as _____.

controlling

The language, values, symbols, and beliefs that guide behavior in a country are that country's _____.

cultural environment

Pollack Food Services supplies meals for all the schools in the Culver City public school system. In the Pollack Food Services task environment, the school system is considered to be a _____.

customer

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

Which of the following are reasons for success?

dedication and drive, luck, managerial completence

The decision-making process begins by _____.

defining the decision situation

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. JJ employs six knowledgeable mechanics and provides these car experts with ongoing training to continually expand their knowledge and skill sets. By maintaining exceptional capabilities at his shop, JJ is solidifying his _____.

distinctive competence

The number of different businesses that an organization runs, and the extent to which these businesses relate to one another, is represented by _____.

diversification

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

entrepreneurship

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

entrepreneurship

Many brick-and-mortar stores are facing challenges from online sales companies. According to systems theory, a primary objective of management at these traditional companies would be to keep pace with these changes in the marketplace in order to avoid _____.

entropy

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

escalation of commitment

Cash cows are businesses that have a large share of a market that is not expected to ___________.

grow substantially

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

The board of directors is part of an organization's _____ .

internal environment

An individual who gets along well with others at all levels in the organization is said to have good _____.

interpersonal skills

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

What is a characteristic of the art, rather than the science, of management?

intuition

Because operations management is less mathematical and statistically less sophisticated than management science, _____.

it can be applied more directly to managerial situations

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

it is costlier

Destani is setting up a training program for all managers who interview candidates and make hiring decisions to ensure they follow all local, state, and federal laws in all areas, from ADA compliance to determining correct knowledge, skills, and abilities needed for the job. Destani is ensuring the firm's hiring practices follow guidelines for _____.

legal compliance

Operational goals are set by and for _______ managers.

lower-level

Aviva has mathematical models that she relies on at the start of each new project to determine how to allocate the resources within her department. Aviva is making use of _____.

management science

Behaviors that relate to ethical ambiguity in areas such as advertising, purchasing, solicitations, bargaining, and other business relationships are part of _____.

managerial ethics

Which type of system interacts with its environment?

open

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

A major computer technology firm has committed to building a computer lab at the local university, and it is awarding scholarships to students who pursue this field. This action is an example of _____.

philanthropic giving

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

Synergy refers to _____.

two or more subsystems working together to be more successful than working alone

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

In the context of SWOT analysis, which of the following would be considered as an organization's strength?

unique reputation

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

BritTrek is a British bicycle company. It produces its mountain bikes in England and sells them throughout North America. Which of the following best characterizes this arrangement?

BritTrek is exporting its products to North America.

Nila applied for a management position in her organization, but did not get it. She was told she had not yet demonstrated the ability to think in the abstract and did not seem to grasp how all the parts of the organization fit together. Which type of management skill does Nila need to work on?

Conceptual

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

Manoj has asked managers of each division to review the impact of expanding into overseas markets. Manoj will then have a group of experts review their proposals and combine their opinions to reach a consensus decision. Which type of decision-making group is Manoj using?

Delphi

What is the term that describes differences among people?

Diversity

What is true regarding quality as a contemporary management challenge?

Enhancing quality lowers costs.

Which of the following refers to a normal process leading to system decline?

Entropy

Which of the following describes an individual's personal beliefs about whether a behavior, action, or decision is right or wrong?

Ethics

Darian has a profitable software company in his home country, but he wants to sell his software in international markets. He knows he can make modifications in his current facility that will work in other markets. Which type of approach to internationalization should Darian pursue?

Exporting

Which of the following is accurate regarding organizational culture?

It is intangible in nature.

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.

What distinguishes the behavioral management perspective from earlier management theories?

It placed more emphasis on individual attitudes, behaviors, and group processes.

Dajhia must make significant budget cuts in order for her organization to remain profitable. No matter what is decided, employees will be impacted. If employees disagree with the specific cuts that are made, there is great potential to harm morale, which could, in turn, impact productivity and cut profits even more. Dajhia has the authority to make all budget decisions, but she has opted to assemble a team from across the organization to make these decisions. How will she benefit from the group decision-making process?

More acceptance of the final decision is likely.

Why are small businesses important to big businesses?

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

Which of the following influences patterns of work-related behavior and attitudes toward work?

Norms

_____ goals are set by and for lower-level managers.

Operational

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

As the head of IT, Ramon feels strongly about online privacy and has taken measures to address this issue. What can Ramon do to ensure all employees and users of the company systems are aware of the firm's stand on privacy?

Post the policy on the company website.

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

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

Quickly expand a new business easily

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

What is an advantage of importing or exporting over other approaches to internationalization?

Small cash outlay and little risk

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

Stable performance over time

Which of the following is a disadvantage to owning a franchise?

Start-up costs

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?

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

Women

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

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

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

Supply chain management and enterprise resource planning are both management concepts that were evolved from which management perspective and use of models to solve problems?

quantitative

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

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. JJ wants to use his profits to expand the business. He is not sure whether to open a detailing shop on an adjoining property or to open an auto repair shop in the neighboring county. This choice of how to invest in his business would be a decision about _____.

resource deployment

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

scope

Raphael started a new financial consulting business on the side, with the hopes that it would someday become his full-time work. He had a lot of experience in this field before launching his company. He did his research and knew what services to offer at what prices. Raphael lined up a number of clients and hired workers to service the accounts. In spite of all this, his business failed. What led to this business failure?

neglect

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

services

Dezmon, a small parts manufacturer, is looking for quick entry into foreign markets with access to materials available in those markets. Which approach to internationalization would best fit his needs?

Strategic alliances

Cut'n'Clip hair salon has opened locations inside many SilverCircle stores. In this situation, what are Cut'n'Clip and SilverCircle to each other?

Strategic partners

How does strategy formulation relate to strategy implementation?

Strategy formulation is the set of processes involved in creating an organization's strategies, whereas strategy implementation is the methods by which those strategies are operationalized.

Lupita's company is slowly recovering from the most recent economic recession. While the recession forced her firm to make tough decisions, it also enabled her to reframe her company. What might Lupita have done during the recession that will make the company stronger in the long run?

Streamline operating procedures

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

politics

Sabine just submitted a bid to take over the paper supply contract for a large firm in town. She knows that another firm bid as well, and only one of them will win the contract. These two firms exist in each other's _____.

task environment