Chapter 8 Managing People and Work, MGMT 3340 Ch. 8

A group of managers analyze both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this?

SWOT analysis

Which method of international expansion causes the least amount of risk?

exporting

According to Henri Fayol, an effective plan should have four qualities, namely, unity, continuity, accuracy, and

flexibility

In pursuing a _____ strategy, managers aim to make their organization the lowest-cost company serving a few segments of the overall market.

focused low-cost strategy

A toy manufacturing company which previously sold its products through a popular toy and juvenile-product retailer decides to enter the retail industry, quickly establishing several retail outlets exclusively for its products. The toy manufacturing company is engaging in

forward vertical integration.

Typically ______-level goals and strategies require intermediate- and short-term plans.

functional

Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson combining a part of their resources to manufacture mobile phones is an example of a(n)

joint venture

In pursuing a _____ strategy, managers focus on driving the company's costs down below the costs of its industry rivals.

low-cost

A furniture company is trying to keep the costs of the company low by switching its suppliers and ordering materials in larger quantities to reduce overall costs. The company is employing a

low-cost strategy.

A(n) _____ broadly defines an organization's purpose—what it is seeking to achieve from its activities—identifies what is unique or important about its products to its employees and customers, and also distinguishes or differentiates the organization in some ways from its competitors.

mission statement

In the five forces model, the _____ that companies compete against one another for customers, the _____ the level of profits is likely to be for that industry.

more; lower

In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers customized versions of its menu to suit different countries. This is an example of a(n) _______ strategy.

multidomestic

The managers of an organization develop a single, well-researched, and effective plan to complete a set of tasks. Which of the following qualities, according to Henri Fayol, does this plan have?

unity

Cameo Ltd., a record label company, subsequently entered the airline industry to expand business. This example of a record label company entering the airline industry is an example of

unrelated diversification

In performing a SWOT analysis, a firm realized that the manufacturing costs for its new division were rising. The firm would classify this as a potential

weakness

Nokia has established production operations in foreign countries to sell its phones in those regions. The production operations perform as separate entities without any local direct involvement. These production operations are _____ of Nokia.

wholly owned foreign subsidiaries

________ is the duration over which a plan is intended to be applied or endured.

A time horizon

______ is the first step in implementing a strategy.

Allocating responsibility for implementation to the appropriate individuals or groups

_____ is a corporate-level strategy in which a company expands its business operations into a new industry that produces inputs for the company's products.

Backward vertical integration

_____ is a corporate-level strategy that emphasizes reinvesting a company's profits in strengthening its competitive position in its current industry.

Concentration on a single industry

An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a(n)

Differentiation strategy

Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true?

Extremely well managed companies may be able to keep low costs and differentiate their products.

________ is selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits.

Franchising

_____ strategy is a plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services.

Functional-level

A(n) _________ strategy is selling the same standardized product and using the same basic marketing approach in each national market.

Global

_____ is the final step in implementing strategy.

Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals

There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customer tastes. This is called

Hyper-competition

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as

Licensing

Which of the following can be defined as a threat according to the five forces model?

Only a few large customers are available to buy an industry's output.

_____ are used in situations in which programmed decision making is appropriate.

Standing plans

Which of the following will most likely be an opportunity according to an organization's SWOT analysis?

The company can take over one of its bankrupt competitors.

According to an organization's SWOT analysis, which of the following would be a potential strength?

The organization has the ability to manage strategic change

In a first of its kind, a multinational tire manufacturer introduces a new range of premium tires that can handle extreme temperatures better at a higher price. The tires are designed keeping in mind the climatic conditions in the Middle East and products are marketed only in the Middle East. The manufacturer is pursuing

a focused differentiation strategy.

According to Henri Fayol, _____ means that managers need to make every attempt to collect and use all available information in the organization's planning process.

accuracy

A(n) _____ strategy indicates how a division intends to compete against its rivals in an industry.

business-level

Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure is called an organization's _____ plan.

business-level

A functional-level plan states the goals that the managers of each function will pursue to help their division attain its ______ goals, which, in turn, will allow the entire company to achieve its ______ goals.

business-level; corporate

As a part of its yearly planning activities, PDQ Financial Services generates a list of possible future scenarios and creates a plan to respond to each of these forecasts. PDQ Financial Services is practicing

contingency planning

There has been a rapid increase in the percentage of the population of a third-world nation switching to cellular technology in recent years. A major multinational telecommunication services company decides to take advantage of this change and plans to set up an industry in the country with the intention of dominating the country's telecommunication market. This is an example of a _______ strategy.

corporate-level

Top management's decisions pertaining to the organization's mission, overall strategy, and structure constitute an organization's

corporate-level plan

To determine an organization's missions and goals, managers must first

define its business

In large organizations the functional level of management is also known as the _____ of management.

departmental level

The first step in planning for an organization is

determining the organization's missions and goals

With a _____ strategy, managers distinguish the organization's products from those of competitors on dimensions such as quality and product design.

differentiation

_____ raises costs and forces companies to raise the prices of their products.

differentiation

The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifies all the departments associated with the division. The departmental managers must alter their _____ plan to accommodate the earlier release date.

functional-level

Most electronic goods have the option of changing the operating language. This is done by manufacturers so that the same electronic device can be supplied and marketed around the world. The manufacturers in this case are applying a(n)

global strategy

After defining new corporate strategies to accomplish the organization's mission and goals, managers face the challenge of

implementing the strategies.

A standing plan that acts as a general guide to action, or a(n)______, applies to the employees of an organization.

policy

Though not formally written, an organization allows its employees to dress casually on Fridays. This is a(n) _____ of the organization.

policy

Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses is called

related diversification strategy

A _____ plan enables managers to make midcourse corrections if environmental changes warrant or to change the thrust of the plan altogether if it no longer seems appropriate.

rolling

Because of the hostile external environment, AKY Consulting treats its multiyear corporate-level plan as a _____ plan in order to maintain flexibility without losing sight of the need to plan for the long term.

rolling

Managers at ANC Inc. operate with planning horizons greater than five years. The top managers are concerned about changing conditions in the external environment. It is difficult to predict competitive conditions five years in the future, so they implemented a plan that involves regular reviews and updates in all levels of the company. The plan enables the company to respond quickly and make adjustments as necessary. This is an example of a(n) _____ plan.

rolling

A firm has a formal, written guide regarding its zero-tolerance attitude toward sexual harassment and the consequences of its violation. By definition, this is a _____ of the firm.

rule

Another name for contingency planning is ________ planning.

scenario

As the managers plan for the future, they want to be able to handle unexpected circumstances. They are developing backup plans with alternative courses of action in case conditions change. This is an example of

scenario planning

Managers use _____ to analyze how to respond effectively to multiple forecasts of future conditions.

scenario planning

_______ plans are developed to handle nonprogrammed decision making in unusual or one-of-a-kind situations.

single-use

A __________ is a written set of instructions which describes the series of actions that a manager should take in a specific situation.

standard operating procedure

Policies, rules, and standard operating procedures (SOPs) are all types of _____ plans.

standing

In a ____________, managers pool or share their organization's resources and know-how with a foreign company and the two organizations share the rewards and risks of starting a new venture.

strategic alliance

Employees tend to be motivated and perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essential for top managers to develop a strong sense of

strategic leadership

A(n) _____ is a group of related managerial decisions and actions to help an organization achieve one of its goals.

strategy

Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and reduce fixed costs. This is an example of

synergy

The pharmaceutical industry is extremely dynamic. A company that releases a product to the general public with the intention of keeping prices high may see quick competition arising from other products made from different compounds that perform the same functions as the company's product. According to the five forces model, this type of threat is called

the threat of substitute products

In performing a SWOT analysis, a furniture company realized that the number of competing firms in its industry was increasing. The company would classify this as a(n)

threat