exam 2 true or false ch. 4,5,6

6. The effective decision maker attempts to minimize hunches and intuition in the process of making a decision.

false

7. Perfectionism usually enhances decision making because the decision maker knows exactly what he or she wants.

false

8. A problem many pessimistic decision makers face is that they keep searching for good alternative solutions to problems.

false

8. The prudence trap in making forecasts leads a person to make overly optimistic forecast so as not to appear too conservative.

false

10. The information compiled in a Gantt chart is well suited as a control device.

true

11. Janet is supervising the construction of an animal hospital. An example of a milestone in her project would the installation of the operating room.

true

11. The major purpose of the strategic inventory is to help the manager size up the competition, the customers, and the technology necessary to compete effectively.

true

11. Visualization to improve decision making under crisis, centers around rehearsing in your mind the worst possibilities that could occur.

true

23. Operational planning often focuses on the short term.

true

1. The data-driven decision maker relies mostly on intuition when making decisions.

false

13. A SWOT analysis is often used to decide upon which weapons and tactics will be used to deal with a corporate crisis such as a contaminated food product.

false

13. To speed up the completion of a project, the manager should attempt to give top priority to all activities not on the critical path.

false

13. You use an integrative decision-making style when you explore one option, and use less information.

false

15. Corporate-level strategy helps answer the question, "Which businesses should we enter?"

false

16. Break-even analysis assumes that unit costs vary in relation to sales volume.

false

16. Creative thinkers generally stick closely to following the rules.

false

16. One of the competitive forces identified by Michael Porter is the power of charities to extract money from a corporation.

false

17. The experience of General Motors in diversifying into financial services illustrates how sticking to core competencies is the most effective business strategy.

false

18. A generally effective practice for fostering creativity is to punish people for attempting creative solutions that fail to solve the problem.

false

18. The Rolls Royce and Mercedes Benz automobiles are examples of a cost leadership strategy.

false

18. The inventory management system called LIFO, refers to selling your oldest inventory first.

false

19. Nike and Apple get together to produce a soccer ball that plays tunes when in motion, illustrating a functional-level business strategy.

false

21. Risk taking does not enhance creativity.

false

21. Under just-in-time inventory control, an ample safety stock is accumulated to deal with emergencies such as supplier problems and labor strikes.

false

22. The experience if Ideo, the design firm, is that preparing for brainstorming meetings inhibits spontaneity so much that preparation is not worth the effort.

false

25. In management by objectives, the objectives start at the bottom of the organization and move upward.

false

25. Playing the roles of artist, judge, and lawyer is a method for a team leader to encourage creative problem solving among team members.

false

3. The major thrust of business strategy is to achieve a high level of operational effectiveness and efficiency.

false

3. Walt Disney naming his cartoon mouse "Mickey" instead of "Mortimer" proved to be a satisficing decision.

false

1. The first step in the planning process is defining the present situation.

true

1. You know you have a problem when the conditions that exist with respect to a particular situation are much different than what you want.

true

10. Firms must constantly change in order to be aligned with their key environments.

true

10. The ability to supply managers with high-quality information forms the major justification for information systems.

true

12. According to the decision-making styles of Decision Dynamics, the two dimensions of decision making are how information is used, and how many options are explored.

true

12. Corporate-level strategy is concerned with the total direction of the enterprise and the selection of specific businesses.

true

12. Much of the accuracy of a PERT chart depends upon estimates of the time necessary to complete each activity.

true

14. Groupthink takes place where there is so much consensus that members lose their ability to evaluate their ideas critically.

true

14. In an advanced application of PERT, expected times are based on frequency distributions of how long certain events took place in the past.

true

14. One of the five competitive forces is the power of customers to affect pricing and reduce profit margins.

true

15. The nominal group technique provides information about how people react to decision alternatives.

true

15. With scenario planning, you prepare for what the future might look like.

true

17. Lateral thinking would be required to uncover new markets for the products or services of one's firm.

true

17. Maintaining the right level of inventory is a major factor influencing the financial health of an organization.

true

19. A decision tree is a graphic illustration of the alternative solutions available to solve a problem.

true

19. Many people are poor decision makers because they procrastinate, or delay taking action without a valid reason.

true

2. Brett is a data-driven manager so he relies more on facts than human impressions when making decisions.

true

2. In planning, measuring external threats is part of defining the present situation.

true

20. An example of the business strategy of sticking to core competencies is for a company like Papa John's Pizza to concentrate on selling pizza and related food and beverage items to the public.

true

20. Conflict and tension that put people on edge can also foster creativity.

true

20. The economic-order quantity (EOQ) is the inventory level that minimizes ordering and carrying costs.

true

21. A medical products firm specializes in the manufacture of prosthetic arms and legs, thereby illustrating a focus strategy.

true

22. A rule is a specific course of action or conduct that must be followed;.

true

22. The just-in-time system emphasizes that customer demand is the most important factor in determining how much product to manufacture.

true

23. Just in time is applicable only to highly repetitive manufacturing operations such as car or residential furnace manufacturing.

true

24. A well-accepted method of stimulating creativity is to engage in physical exercise.

true

24. An MBO program involves people setting many objectives for themselves.

true

24. The 80/20 (Pareto) Principle is a general guide as to what percent activities are likely to cause most of the results in a given situation.

true

25. The Delphi Technique is a form of group decision making designed to provide group members with one another's ideas and feedback while avoiding some of the problems associated with interacting groups

true

3. Data-driven management is more of an attitude and approach than a specific technique,

true

4. A major technique for improving decision making is to dig for alternatives rather than accept the first possibility that comes to mind.

true

4. A technological forecast predicts what types of technological changes will take

true

4. An exit strategy might be part of the contingency plan.

true

5. A firm's strategy is a master plan for achieving its goals and objectives.

true

5. An example of a heuristic would be not to spend more than 30% of your net income on debt other than a home mortgage.

true

5. Time-series analysis is an historical approach to making forecasts.

true

6. A major aspect of the nature of business strategy is to choose a unique set of activities to deliver a unique value.

true

6. If a manager recalls success stories from global expansion to Singapore, he might overestimate the chances of succeeding in that country. This is an example of the recallability trap.

true

7. The mission of the Grand Union supermarket chain is probably to provide food, beverages, and related merchandise (all of high quality) to the general public.

true

7. The overconfidence trap in making forecasts leads a person to overestimate the accuracy of his or her forecasts.

true

8. The purpose of crowdcasting is to obtain widespread input into the development of business strategy.

true

9. Cognitive (or traditional) intelligence carries a profound influence in decision-making effectiveness.

true

9. Forecasts that are updated regularly with fresh data are referred to as rolling forecasts.

true

A powerful approach to developing an innovative organization is to systematically gather ideas from people inside and outside the firm.

true

A well-planned and highly structured organization reduces the number of nonprogrammed decisions by formulating policies.

true

To bring about a successful SWOT analysis, it is important to be clear about what you are doing and why.

true