MGMT 3000 test 2: ch.6,7,8,10

A concept developed by the Boston Consulting Group that evaluates strategic business units with respect to two dimensions—business growth rate and market share—and classifies them as cash cows, stars, question marks, or dogs.

BCG Matrix

Because of Walmart's reach with customers, it can often dictate at what price it will purchase a company's product for sale in its stores. In this scenario, which of the following forces will the company that wants to sell its products through Walmart encounter?

Bargaining power of the buyer

level of strategy made up of the Consumer products, biotechnology, and media units

Business level strategy

involves building an alliance of people who support a manager's goals and influencing other people to accept and work toward those goals

Coalitional management

Refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace.

Competitive advantage

define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. - ex. a safety manager planning how to improve safety equipment/protocol

Contingency planning

preparing organization, managers, and employees to cope with catastrophic events that could destroy the firm

Crisis Planning

first step in the organizational planning process that involves defining the mission/ vision, setting goals, and managing goal conflict.

Developing the plan

businesses with low market share and low growth rate equate to ________ in the BCG Matrix.

Dogs

level of strategy made up of the finance, R&D, manufacturing, and marketing departments

Functional level strategy

level of strategy that Pertains to the major functional departments within each business unit, such as manufacturing, marketing, and research and development (R&D). (How do we support the business level strategy?)

Functional level strategy

combines global coordination to attain efficiency with local flexibility to meet needs in different countries

Glocalization strategy

tool used to assess what is important to an organization and how well the organization is progressing toward achieving its strategic goal

Key performance indicators (KPIs)

A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

Management by objectives (MBO)

After studying a number of business organizations, _____ proposed that business-level strategies are the result of understanding competitive forces in the company's environment.

Michael E. Porter

handling of competition in each country remains independent of industry competition in other countries

Multi-domestic strategy

The management scholar who first described the management by objectives (MBO) system is _____.

Peter Drucker

third step in the organizational planning process that involves defining operational goals/plans, selecting measures/targets, setting stretch goals, and crisis planning.

Plan operations

An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance.

SWOT Analysis

forecasting technique that looks at current trends and discontinuities and visualizes future possibilities

Scenario building

businesses with high market share and high growth rate equate to ________ in the BCG Matrix.

Stars

Refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals.

Strategic Management

A broad statement of where an organization wants to be in the future; pertains to the organization as a whole rather than to specific divisions or departments.

Strategic goals (official goals)

second step in the organizational planning process that involves defining tactical plans/objectives, developing a strategy map, and defining contingency plans/ scenarios

Translate the plan

Richard, owner of a small accounting firm, sets a goal to hire another CPA this year so he can take on more clients and increase his company's income. Richard knows that this goal will act as _________.

a guide to action

Building a new headquarters; converting all paper files to digital is an example of ....

a single use plan in a program

Procedures for issuing refunds; procedures for handling employee grievances in an example of

a standing plan (procedure)

In which of the following situations would a smaller span of control be more appropriate? a) A great deal of time is required in nonsupervisory activities. b) Rules and procedures defining task activities are available. c) Subordinates are highly trained and need little direction in performing tasks. d) Subordinates perform similar work tasks.

a) A great deal of time is required in nonsupervisory activities.

Which of the following is a benefit to planning and goal setting? a) Goals and plans motivate employees. b) Goals and plans prevent effective resource allocation. c) Goals and plans always create pressure to meet them. d) Goals and plans may make employees and managers rigid.

a) Goals and plans motivate employees.

Because stretch goals are typically beyond the current levels, _____. a) people must innovate to find ways to reach them b) they are seldom achieved c) they are least effective in fast-changing environments d)employees tend to feel discouraged and demotivated by them

a) people must innovate to find ways to reach them - they require totally new activities and approaches to achieve

occurs when organizational parts interact to produce a joint effect that is greater than the sum of its parts acting alone (element of CA)

achieving synergy

MBO activity that defines the course of action needed to achieve the stated goals; are made for both individuals and departments.

action plans

The primary difference between divisional and functional structures is that in a divisional structure _____. a) the structure encourages centralization b) the chain of command from each function converges lower in the hierarchy c) economies of scale and efficient resource use are greater d) differences of opinion among R&D, Marketing, Manufacturing, and Finance would be resolved by the top executive

b) the chain of command from each function converges lower in the hierarchy

level of strategy that Pertains to each business unit or product line within the organization. (How do we compete?)

business level strategy

In order to provide maximum flexibility to meet customer needs and adapt to shifts in the environment, most organizations today encourage managers to _____. a) forgo line authority in favor of staff authority b) eliminate a chain of command c) delegate authority to the lowest possible level d) maintain taller rather than flatter structures

c) delegate authority to the lowest possible level

An organization attempts to develop innovative products unique to the market with a _____. a) collaboration strategy b) cost leadership strategy c) differentiation strategy d) bottom-up strategy

c) differentiation strategy

Manufacturing technologies differ in terms of technical complexity which refers to the degree to which complicated machinery is involved in the production process to the exclusion of people; therefore, a continuous process would be _____. a) low in this category b) medium in this category c) high in this category d) more mechanistic in this category

c) high in this category

Although they are assigned specific territories, sales people at Gibson & Associates contact clients outside of their territories. They are hoping to make additional sales which will increase their chances to meet their goals. One reason that might explain this behavior is that goals and plans ________.

can get in the way of intuition and creativity

businesses with high market share and low growth rate equate to ________ in the BCG Matrix.

cash cows

In the formulation of strategy, a manager's first activity would be to:

conduct SWOT analysis

Something that the organization does particularly well in comparison to others. (element of CA)

core competence

level of strategy that Pertains to the organization as a whole and the combination of business units and products that make it up. (what business are we in?)

corporate level strategy

A strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry.

cost-leadership strategy

If Justin wants to avoid duplication of activities among various business divisions, he would choose ____. a) neither centralization nor decentralization b) greater decentralization c) less centralization d) greater centralization

d) greater centralization

A strategy with which managers seek to distinguish the organization's products and services from those of others in the industry.

differentiation startegy

The strategy of moving into new lines of business.

diversification

Some businesses handle corporate-level strategy by moving into new lines of business as a way to expand the firm's business operations to produce new kinds of valuable products and services. This approach is known as a:

diversification strategy

The stuffed animals division of a toy manufacturer has only a small share of a slow-growth market, which provides little profit for the corporation. Where would this business fit in the BCG matrix?

dogs

Which of the following factors that contribute to the failure of strategy execution accounts for the most frequently encountered barrier?

employee resistance

After a review of the company's mission and goals, Keeley finds that the company is losing market share to several companies in the industry. Keeley's next step would be to:

engage in the process of strategy formulation.

The strategic management process begins when executives:

evaluate their current position with respect to mission, goals, and strategies.

A strategy where managers use either a differentiation or a cost leadership approach, but they concentrate on a specific regional market or buyer group.

focus strategy

strategy that uses characteristics of cost-leadership strategy directed at target customer. measures cost of providing product/service and maintaining customer loyalty.

focused cost leadership

use of standardized product design and advertisingstrategies throughout the world

globalization strategy

Ways to resolve ____ ______ include building a coalition, addressing conflict with debate and dialogue, promoting collaboration, modifying goals, and manager departures.

goal conflict

involves a strategic alliance or program by two or more organizations. typically occurs when a project is too complex, expensive, or uncertain for one firm to handle alone.

joint venture

When two or more organizations combine to become one.

merger

Which level in the organizational hierarchy is typically responsible for turning strategic plans into tactical plans?

middle managers

The reason for an organizations existence (top of the hierarchy)

mission

A broadly stated definition of an organization's basic business scope and operations that distinguishes it from similar types of organizations.

mission statement

At Patagonia's Web site, this statement is posted: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." This is an example of a well-designed _____.

mission statement

a well defined ______ ________ clearly articulates the strategic direction and sets a clear framework for the development of subsequent goals and plans, and it motivates and inspires employees

mission statement

"Process 150 sales applications each week," "Achieve 90 percent of deliveries on time," "Reduce overtime by 10 percent next month," and "Develop two new online courses in accounting." are examples of

operational goals

A specific, measurable result that is expected from departments, work groups, and individuals. (stated in quantitative terms)

operational goals

A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n):

plan

As Jackie's company moves into its second year of operation, she will review the company goals and revise as necessary as well as specifying the actions to be taken to achieve those goals. Jackie is engaged in the process of_____.

planning

determining the organization's goals and defining the means for achieving them. Incorporates both goals and plans

planning

Strategy that Pertains to the mix of strategic business unit (SBUs) and product lines that fit together in a logical way to provide synergy and competitive advantage.

portfolio strategy

Indira is working to flatten out the structure of the organization by introducing horizontal teams. The goal of the teams is to help the organization achieve dramatic improvements in the company's costs and product quality. Indira is engaged in _____.

re-engineering

Moving into a new business that is related to the corporation's existing business activities.

related diversification

A plan that is developed to achieve a set of goals that is unlikely to be repeated in the future. (includes programs and projects)

single-use plans

the personal conduct policy for players implemented by the National Football League (NFL) after a domestic-violence scandal hit professional football is an example of a......

standing plan (policy)

An ongoing plan used to provide guidance for tasks that occur repeatedly in the organization. (organizational policies, rules, and procedures)

standing plans

plans that generally pertain to matters such as employee illness, absences, smoking, discipline, hiring, and dismissal

standing plans

A division of the organization that has a unique business, mission, product or service line, competitors, and markets relative to other units of the same organization.

strategic business units

In formulating corporate strategy, Haris would like to prevent the organization from becoming too dependent on one business. Therefore, Haris has chosen a number of product lines that fit together in a synergistic way and provide an overall competitive advantage for the organization. These product lines are unique businesses known as:

strategic business units

Volkswagen's decision to focus more on designing and building electric cars is an example of a .....

strategic goal

VW cutting unnecessary expenses and using the money to invest in new technology to help reach their goal of being carbon neutral is an example of a ....

strategic plan

Action steps that and org. will take to achieve their strategic goals. the blueprint that defines the organizational activities and resource allocations.

strategic plans

In order to achieve competitive advantage through strategy, managers can use geography, demographics, or interests to: (element of CA)

target customers

A large fire broke out in the main warehouse at Tess's company. No one was hurt, but the fire caused a lot of damage. To deal with the questions from suppliers, customers, and employees, Tess created a team with members from various departments across the company to address important issues and make immediate plans for moving forward. This is known as a _____.

task force

As a strategic manager in a manufacturing company, Kofi knows that making structural decisions must take into consideration pressures from the bottom up. These pressures would include _____

technology and work processes

In a SWOT analysis, strengths and weaknesses are an evaluation of _____, whereas opportunities and threats are an evaluation of _____.

the internal environment; the external environment

Jamal is in the process of defining contingency plans and scenarios so that top management can apply flexible goal setting as necessary. This task falls within which of the following portions of the overall organizational planning process?

translate the plan

Refers to expanding into totally new lines of business.

unrelated diversification

A mission statement includes the organizations... (3)

values, aspirations, and reasons for being.

A strategy of expanding into businesses that either provide the supplies needed to make products or distribute and sell the company's products.

vertical integration

Espen manages a modular furniture manufacturer. The organization Espen works for also owns a plastics manufacturer, which makes mostly storage containers. The organization recently purchased a smaller home goods retailer. This purchase takes the organization another step toward greater:

vertical integration

Characteristics of effective goals: 1) specific & __________ 2) linked to ______ 3) ________ but realistic 4) cover key _____ areas 5) have a defined _______ period

1) specific and measurable 2) linked to rewards 3) challenging but realistic 4) cover key result areas 5) have a defined time period

A plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goals

Strategy

reasonable yet highly ambitious and compelling goals, characterized by both extreme difficulty and extreme novelty, that energize people and inspire excellence

Stretch Goals

fifth step in the organizational planning process that involves holding planning reviews and operational reviews

Monitor and learn

For Haven, the strategic management process begins with an evaluation of the current mission and goals and it ends with execution of that strategy with the organization. What steps need to occur, in order, in this process between initial evaluation and execution of the strategy?

Perform SWOT analysis, define new mission and goals, and formulate strategy.

fourth step in the organizational planning process that involves management by objectives, single use plans, and standing plans.

Performance management

No-eating rule in areas of the company where employees are visible to the public is an example of

a standing plan (rule)

Sexual harassment policies; Internet and social media policies are examples of

a standing plan in policy

Green Dot Bioplastics manufactures a number of biodegradable biocomposites that can be used as containers. Top managers have challenged employees to submit ideas for new products beyond containers to be made from biocomposites. This challenge represents _____.

a stretch goal

With a team-based structure _____. a) the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals b) aspects of both functional and divisional structures are combined simultaneously, in the same part of the organization c) departments are grouped together based on similar organizational outputs d) departmentalization occurs by organizational resources because each type of activity represents specific resources for performing the organization's task

a) the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals

Kelly would like to build relational coordination into the fabric of the organization. Which of the following statements best expresses what relational coordination looks like? a) Frontline supervisors typically have larger spans of control so they can increase horizontal coordination. b) Managers resolve cross-departmental conflicts based on shared goals rather than emphasizing goals of their separate departments. c) Strict work rules guide interactions and the format that individual and team contributions take. d) Rewards are based on individual efforts and accomplishments.

b) Managers resolve cross-departmental conflicts based on shared goals rather than emphasizing goals of their separate departments.

The key areas of a strategy map might include learning and growth, internal processes, customer service, and financial performance goals. Such a map would likely show _____. a) simple linear relationships among goals that are stated in general terms b) that achieving learning and growth goals will help the organization build internal business processes c) the relationship of goals, which upper-level management can benefit by knowing but contributes little to workers in the organization d) that financial goals are the foundation of learning and growth goals and customer service goals

b) that achieving learning and growth goals will help the organization build internal business processes

Because the previous company Elliot worked for dealt with several crises that eventually caused the company to close, Elliot was committed to establishing a crisis management plan at the new company. The key to any crisis management plan is that it _____.

be a detailed written plan that specifies the steps to be taken

Kairos works for a company whose main strategic goal is one of differentiation. The organization atmosphere values innovation and flexibility. Which of the following best fits with the description of Kairos's company? a) A mechanistic system with a functional structure b) A mechanistic system with a divisional structure c) An organic system with horizontal teams d) An organic system with interdepartmental task forces

c) An organic system with horizontal teams

In the matrix structure, which of the following provides traditional control within functional departments? a) Dual lines of authority b) Staff authority c) Accountability d) The vertical structure

d) The vertical structure

In setting goals for the department, Kevin wants to be able to assess what is important to the organization and how well the organization is progressing toward attaining its strategic goals. To do so, Kevin would select a few carefully chosen goals with clear measures of success, also referred to as _____ _________ _________.

key performance indicators (tools used to assess what is important to an organization_

A new systematic approach that focuses people on the methods and processes used to attain results, rather than on the results themselves. Focuses people on considering the means rather than just on reaching the goals.

management by means (MBM)

Managers use ____________ goals to direct employees and resources

operational goals

Specifies the action steps toward achieving operational goals and supports tactical activities. the department manager's tool for daily and weekly operations

operational plans

A corn processing plant is adding a new building for starch conversion processes. Coordinating the construction of the building and its integration into the functioning of the company has been assigned to Trae. His position is located outside the departments and is responsible for coordinating several departments to achieve desired project outcomes. Trae's job title is _____.

project manager

The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.

strategy execution

The stage of strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan.

strategy formulation

A ________ ____provides a powerful way for managers to see the cause-and-effect relationships among goals and plans.

strategy map

A visual representation of the key drivers of an organization's success, showing the cause-and-effect relationship among goals and plans.

strategy map

The outcome that major divisions and departments must achieve for an organization to reach its overall goals.

tactical goals

Designed to help execute major strategic plans and to accomplish a specific part of a company's strategy. typically have a shorter time horizon than strategic plans.

tactical plans

businesses with low market share and high growth rate equate to ________ in the BCG Matrix.

Bright prospects

The BCG matrix organizes businesses along which of the following two dimensions?

Business growth rate and market share

The popularity of its newest personal fitness tracker spurred members of Cass's team to consider developing variations of the tracker. Their concerns about development, advertising, and necessary production facilities fall within the level of:

Business level strategy

Strategy _____ includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan, whereas strategy _____ involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.

formulation; execution

Shante manages the payroll function for her company. She advises other managers about ranges for pay raises for employees and changes in various benefits offered by the company. In this role, Shante exercises _____. a) staff authority b) line authority c) delegation d) span of management

a) staff authority

Which of the following would be considered an operational-level goal for a company that produces school buses? a) Reduce line shutdowns in transmission assembly to fewer than two per quarter b) Daily output level of 85 high-standard finished seats with less than 2 flawed/fixable seats c) Improve company profits by 5% over the coming year d) Provide exceptional vehicles for school transportation needs

b) Daily output level of 85 high-standard finished seats with less than 2 flawed/fixable seats

Because the focus of reengineering is on horizontal workflows rather than functions _______. a) reengineering generally leads to a shift toward a strong vertical structure b) reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination c) the organization hierarchy remains vertical, but with more senior executives in traditional support functions such as finance and HR d) the radical redesign of business processes achieves dramatic enhancements to the organization's vertical structure

b) reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination

Which of the following statements is NOT part of the definition of organizational structure? a) Organizational structure is the design of systems to ensure effective coordination of employees across departments. b) Organizational structure is the set of formal tasks assigned to individuals and departments. c) Organizational structure is the creation of a shared culture and values that communicate goals and infuses employees with the desire to perform at a high level. d) Organizational structure is the formal reporting relationships, including lines of authority and decision responsibility.

c) Organizational structure is the creation of a shared culture and values that communicate goals and infuses employees with the desire to perform at a high level.

Which of the following is a disadvantage of the functional structure? a) The convergence of the chain of command at the top of the functional structure offers a way to centralize decision making and provide unified direction from top managers. b) Functionally based departments enhance the development of in-depth skills because people work on a variety of related problems. c) Grouping employees by common task permits economies of scale and efficient resource use. d) Separating people into distinct departments shrinks communication and coordination across functions, deterring response to environmental changes.

d) Separating people into distinct departments shrinks communication and coordination across functions, deterring response to environmental changes.

Carly manages a production department. Operators within the department simply read dials, fix machines that break down, and manage the production process that has no starting and stopping. Carly manages a _____. a) mass production b) small-batch production c) large-batch production d) continuous process production

d) continuous process production

In selecting the mission and strategic goals for an organization, the top executive's role is to _____. a) encourage precise and measurable plans for operations of the organization b) define how major departments and organizational subunits contribute to organizational goals c) provide stated goals in quantitative terms that can be coordinated with the budget d) get people thinking as a team and negotiating about which goals are the important ones to pursue

d) get people thinking as a team and negotiating about which goals are the important ones to pursue

Most managers who have used management by objectives (MBO) feel that it _____. a) is an effective stand-alone management approach b) is more oriented toward process than to goal achievement c) is not an effective management tool d) helps employees see how their jobs and performance contribute to the business

d) helps employees see how their jobs and performance contribute to the business

A desired future state that the organization wants to realize. are important because organizations exist for a purpose, and these define and state that purpose.

goal(s)

Although they are assigned specific territories, sales people at Gibson & Associates contact clients outside of their territories. They are hoping to make additional sales which will increase their chances to meet their goals. One reason that might explain this behavior is that goals and plans ________.

goals and plans can create too much pressure

define what major departments and organizational subunits will do to implement the organization's strategic plan.

tactical plans

Coulson's company has an exceptional research and development department with several of the industry's preeminent researchers. Coulson would rather focus efforts on facilitating the work of these researchers rather than to manufacture and distribute the products. He outsourced those functions, along with the accounting and human resource functions to companies that do those functions well and at a lower cost than his company could. Coulson's company is an example of a _____.

virtual network