Management Exam 2

Cash Cow, stability

A ________ in the BCG matrix would have a high market share in a low-growth market, and the correct grand or master strategy is ________.

isolate themselves to make the decision alone

A common mistake made by managers in crisis situations is that they ________.

can be easily measured

A good performance objective is written in such a way that it ________.

problem solver

A manager who is reactive and works hard to address problems after they occur is known as a ________.

sensation thinking

A person likes to deal with hard facts and clear goals in a decision situation; she also likes to be in control and keep things impersonal. This person's cognitive style tends toward ________.

standing-use

A sexual harassment policy is an example of ________ plans used by organizations.

executive dashboard

A visual display of up to the minute KPI is called a

systematic

A(n) ________ thinker approaches problems in a rational and an analytic fashion.

The ethics of a decision can be checked with the "spotlight" question: "How would you feel if your family found out?". Also, one can test the decision by evaluating it on four criteria: (1) Utility (2) Rights (3) Justice (4) Caring

How can a manager double-check the ethics of a decision?

By anticipating possible crises and preparing teams and plans ahead of time for how to handle them if they do occur.

How can the members of an organization be trained in crisis management?

(1) Define your objectives, (2) determine where you stand relative to objectives, (3) develop premises about future conditions, (4) identify and choose among action alternatives to accomplish objectives, (5) implement action plans and evaluate results.

List five steps in the planning process and give examples of each.

(1) Establish objectives and standards, (2) measure actual performance, (3) compare actual performance with objectives and standards, and (4) take necessary action.

List the four steps in the controlling process and give examples of each.

focusing attention where the need for action is greatest

Management by exception means ________.

setting objectives, deciding how to accomplish them

Planning is the process of ________ and ________.

cooperation

Strategic alliances that link together airlines in code sharing and joint marketing agreements are examples of how businesses can use ________ strategies.

"Where do we want to be in the future?"

The most appropriate first question to ask in strategic planning is ________.

plans are implemented and results evaluated

The planning process isn't complete until ________.

corporate governance

The role of the board of directors as an oversight body that holds top executives accountable for the success of business strategies is called ________.

market share

The two questions asked by Porter to identify competitive strategies for a business or product line are: 1—What is the market scope? 2—What is the ________?

cost leadership

According to Porter's model of competitive strategies, a firm that wants to compete with its rivals in a broad market by selling a very low-priced product would need to successfully implement a ________ strategy.

Measure results.

After objectives and standards are set, what step comes next in the control process?

current ratio

Among the financial ratios used for control, Current Assets/Current Liabilities is known as the ________.

breaking down barriers internally and externally

Among the ways information technology is changing organizations today, ________ is one of its most noteworthy characteristics.

lack of participation

An example of a process failure in strategic planning is ________.

restructuring

An organization that is downsizing by laying off workers to reduce costs is implementing a ________ strategy.

unstructured

Being asked to develop a plan to increase international sales of a product is an example of the types of ________ problems that managers must be prepared to deal with.

informal

Cost efficiency and product quality are two examples of ________ objectives of organizations.

ethical soundness

Costs, timeliness, and ________ are among the recommended criteria for evaluating alternative courses of action.

Douglas McGregor's concept of Theory Y involves the assumption that people can be trusted to exercise self-control in their work. This is the essence of internal control—people controlling their own work by taking personal responsibility for results. If managers approach work with McGregor's Theory Y assumptions, they will, according to him, promote more self-control—or internal control—by people at work.

How does Douglas McGregor's Theory Y relate to the concept of internal control?

Planning helps improve focus for organizations and for individuals. Essential to the planning process is identifying your objectives and specifying exactly where it is you hope to get in the future.

How does planning help to improve focus?

Feedforward control involves the careful selection of system inputs to ensure that outcomes are of the desired quality and up to all performance standards. In the case of a local bookstore, one of the major points of influence over performance and customer satisfaction is the relationship between the customers and the store's employees who serve them. Thus, a good example of feedforward control is exercising great care when the manager hires new employees and then trains them to work according to the store's expectations.

How might feedforward control be used by the owner/manager of a local bookstore?

Benchmarking is the use of external standards to help evaluate one's own situation and develop ideas and directions for improvement. The bookstore owner/manager might visit other bookstores in other towns that are known for their success. By observing and studying the operations of those stores and then comparing her store to them, the owner/manager can develop plans for future action.

How might planning through benchmarking be used by the owner of a local bookstore?

A manager using systematic thinking is going to approach problem solving in a logical and rational way. A manager using intuitive thinking will be more spontaneous and open in problem solving.

How would a manager use systematic thinking and intuitive thinking in problem solving?

relative comparison

If an organization's top management visits a firm in another industry to learn more about its excellent record in hiring and promoting minority and female candidates, this is an example of using ________ for control purposes.

2,500

If fixed costs are $10,000, variable costs are $4 per unit, and the target selling price per unit is $8, what is the breakeven point?

low bargaining power of suppliers

In Porter's five forces framework, having ________ increases industry attractiveness.

activities, sequences

In a CPM/PERT analysis the focus is on ________ and the event that link them together with the finished project.

corporate

In a complex conglomerate such as General Electric that owns a large number of different businesses, a(n) ________ level strategy sets strategic direction for a strategic business unit.

functional

In order to help implement its corporate strategy, a business firm would likely develop a (an) ________ plan for the marketing department.

more commitment to implementation

One of the benefits of participatory planning is ________.

a communication gap between planners and implementers

One of the problems in relying too much on staff planners is ________.

task motivation

Personal creativity drivers include creativity skills, task expertise, and ________.

must be completed by a specific time

Projects are unique one-time events that ________.

Gantt

The ________ chart graphically displays the scheduling of tasks required to complete a project.

classical, behavioral

The ________ decision model views managers as making optimizing decisions, whereas the ________ decision model views them as making satisficing decisions.

corporate culture

The ________ is a predominant value system for an organization as a whole.

competitive advantage

The ability of a firm to consistently outperform its rivals is called ________.

risk

The assigning of probabilities for action alternatives and their consequences indicates the presence of ________ in the decision environment.

improved focus

The benefits of planning include ________.

Need for Action

The control equation states: ________ =Desired Performance−Actual Performance

establish objectives and standards

The first step in the control process is to ________.

find and define the problem

The first step in the decision-making process is to ________.

means

The ideal situation in a hierarchy of objectives is that lower-level plans become the ________ for accomplishing higher-level plans.

(1) Financial Performance—To improve financially, how should we appear to our shareholders? (2) Customer Satisfaction—To achieve our vision, how should we appear to our customers? (3) Internal Process Improvement—To satisfy our customers and shareholders, at what internal business processes should we excel? (4) Innovation and Learning—To achieve our vision, how will we sustain our ability to change and improve?

What four questions could be used to organize the presentation of a real-time balanced scorecard in the executive dashboard for a small business?

The ability to create enthusiasm in people to participate in continuous change, performance enhancement, and the implementation of organizational strategies.

What is strategic leadership?

An optimizing decision is one that represents the absolute "best" choice of alternatives. A satisficing decision selects the first alternative that offers a "satisfactory".

What is the difference between an optimizing decision and a satisficing decision?

A corporate strategy sets long-term direction for an enterprise as a whole. Functional strategies set directions so that business functions such as marketing and manufacturing support the overall corporate strategy.

What is the difference between corporate strategy and functional strategy?

The focus strategy concentrates attention on a special market segment or niche. The differentiation strategy concentrates on building loyalty to a unique product or service.

What is the difference between focus and differentiation as competitive strategies?

A SWOT analysis is useful during strategic planning. It involves the analysis of organizational strengths and weaknesses, and of environmental opportunities and threats.

What would a manager look at in a SWOT analysis?

differentiation

When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing a ________ strategy.

related diversification

When PepsiCo acquired Tropicana, a maker of orange juice, the firm's strategy was growth by ________.

an engineering comparison

When a UPS manager compares the amount of time a driver takes to make certain deliveries against standards set through a quantitative analysis of her delivery route, this is known as ________.

escalating commitment

When a manager decides to continue pursuing a course of action that facts otherwise indicate is failing to deliver desired results, this is called ________.

zero-based

When a manager is asked to justify a new budget proposal on the basis of projected activities rather than past practices, this is an example of ________ budgeting.

anchoring and adjustment

When a manager makes a decision about someone's annual pay raise only after looking at his or her current salary, the risk is that the decision will be biased because of ________.

framing error

When a problem is addressed according to the positive or negative context in which it is presented, this is an example of ________.

output standard

When a soccer coach tells her players at the end of a game, "I'm pleased you stayed with the game plan," she is using a/an ________ to a measure performance, even though in terms of outcomes her team lost.

concurrent

When a supervisor working alongside an employee corrects him or her when a mistake is made, this is an example of ________ control.

the team leader and team member

When a team leader is trying to follow an approach known as management by objectives, who should set a team member's performance objectives?

feedforward

When an automobile manufacturer is careful to purchase only the highest-quality components for use in production, this is an example of an attempt to ensure high performance through ________ control.

identify best practices used by others

When managers use the benchmarking approach to planning, they ________.

clan

When one team member advises another team member that "your behavior is crossing the line in terms of our expectations for workplace civility," she is exercising a form of ________ control over the other's inappropriate behaviors.

business intelligence

Whereas management information systems use the latest technologies to collect, organize, and distribute data, ________ involves tapping the available data to extract and report it in organized ways that are most useful to decision makers.

strategic

Which type of plan is used to guide resource allocations for long-term advancement of the organization's mission or purpose?

Very often plans fail because the people who make the plans aren't the same ones who must implement them. When people who will be implementing are allowed to participate in the planning process, at least two positive results may happen that help improve implementation: (1) Through involvement they better understand the final plans, and (2) through involvement they become more committed to making those plans work.

Why does participatory planning facilitate implementation?

increase ROA, decrease debt

With respect to return on assets (ROA) and the debt ratio, the preferred directions when analyzing them from a control standpoint are ________.

Contingency

________ planning identifies alternative courses of action that can be taken if and when certain situations arise.