MGMT ALL QUIZ 3&4 FOR EXAM 2 PT 2
policy uncertainty
(most common and frustrating) refers to the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business
phase model of globalization
(not deterministic or followed completely) a company makes the transition from a domestic company to a global company through a set of sequential phases (each step, the company grows much larger, uses resources to enter more global markets, is less dependent on home country sales, and is more committed in its orientation to global business): exporting, cooperative contracts, strategic alliances, then wholly owned affiliates
What is the four-step process for managing experiential learning?
-Planning: develop learning objective for activity -Preparing: brainstorm activities -Presenting: inform trainees about activity and purpose for it -Assessing: conduct personal thought inventory, "take away" from trainees
Be able to list the reasons why a trainer should set training objectives when developing a training session. What purpose do training objectives serve?
-Serve as a contract: participants know what they are expected to learn -Describe a precise, specific outcome -Used to measure success -Inform participants about what they should value, understand, do with subject information or skills -Based on needs assessment results in gap analysis
What are the four things you should consider when selecting the best training method?
-consider your trainees -consider your learning objectives -consider advantages and disadvantages -consider your level of comfort
What are some variables that will determine the level of adherence to a client's exercise program?
-demographic -cognitive -environmental -characteristics of the actual activity
What are some good qualities for trainers to possess?
-empathy -good listening skills -coaching skills -professional at all times
What does realistic mean in regards to SMART goals?
-goal must be believable to client -needs to motivate clients -not an aggressive goal -educate clients on realistic weight loss
What does action oriented mean in regards to SMART goals?
-goals should be associated with a specific action (train 3 times a week)
What does timed mean in regards to SMART goals?
-goals should have dates associated with them -long-term/short-term/combination -within long-term goals, have short-term goals, which allow for feedback and further motivation
What does measurable mean in regards to SMART goals?
-great for giving feedback -set goals -rating scales (1-10) -how will your client feel (energy) -if you are not able to set a measurement for a goal, then the goal is prob. not worth setting
What is a holistic way for trainers to work with their clients and their individual psychosocial needs?
-lifestyle coaching
What does specific mean in regards to SMART goals?
-questioning skills -difference between running a marathon and being able to play soccer with your children -how much weight you'd like to lose -how do you want to feel -what do you want to change
What are the five steps used when teaching a trainee new skills
-tell: tell trainee what to do -show: demonstrate how to perform the skill -invite: ask them to perform the skill -encourage: coach trainees to perform the skill the right way -correct: offer praise and then suggestions
If an environment is high in uncertainty, the manager
-will be able to predict events in the future -will be unable to make good plans for the organization -will be unable to establish actions needed to cope with environmental change
Describe three different leadership styles and give an example in which each style could be used most effectively?
1. Autocratic Leadership means making managerial decisions without consulting others. This style is effective in emergencies and when absolute followership is needed-for example, when fighting fires. Autocratic leadership is also effective sometimes with new, relatively unskilled workers who need clear direction and guidance. 2. Participative (Democratic) Leadership: Involves managers and employees working together to make decisions. Research has found that employee participation in decisions may not always increase effectiveness, but it usually does increase job satisfaction. Many large corporations like Google and Apple have been highly successful using a democratic style of leadership that values traits such as flexibility, good listening skills, and empathy. Employees meet to discuss and resolve management issues by giving everyone some opportunity to contribute to decisions. 3. Free-Rein Leadership: Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. Free-rein leadership is often the most successful leadership style in certain organizations, such as those in which managers supervise doctors, professors, engineers, or other professionals. The traits managers need in such organizations include warmth, friendliness, and understanding. More and more firms are adopting this style of leadership with at least some of their employees.
Effective group problem solving and decision making steps (best applied to complex problems)
1. Identify the problem 2. Clarify the problem 3. Analyze the cause 4. Search for alternative solutions 5. Select alternatives 6. Plan for implementation 7. Clarify the contract 8. Develop an action plan 9. Provide for evaluation and accountability
MBO Process Model
1. Set goals: looks beyond day to day activities. corporate goals, depart. goals, indv. goals. 2. Develop Action Plans: Indv. and depart. 3. Review Progress: plan can be changed to attain goals 4. Appraise overall performance
What five training delivery methods were discussed in the article? What characteristics are associated with each of these delivery methods?
1. Team training: learning to work with group to solve a problem 2. Mentoring: working on specific skill acquisition 3. Simulation: creating possible conflicts or solutions to demonstrate proper execution of skill 4. Seminars: focus on specific topics in small groups that are encouraged to actively participate 5. Field trips and tours: going off-site/learning about how to apply new situations to their work 6. E-learning: using technology with training programs increases ways to learn and allows trainees to exchange info for future use
NGT steps
1. Work team members are assembled 2. Team leader presents a specific question 3. Individual team members write down their ideas independently without speaking to other members 4. Each team member in turn presents one idea to the group 5. After each idea is presented, group clarifies and evaluates suggestions 6. Meeting ends with a silent, independent rating of the alternatives
how to go global
1. consistency vs. adaptation 2. method of entry for foreign market (phase model of globalization/getting products to global market) 3. choosing the global market to enter
What are the four theoretical and conceptual foundations of scenistic methodology?
1.Situated learning or cognition 2.Constructivism and experiential learning theory 3.Transformative learning theory 4.Action theory
Planning Process
1: Develop Plan. define mission; set goals 2: Translate Plan. strategy map, intelligence teams, scenario and contingency plans, tactical plans 3: Plan Operations. operational goals and plans, crisis plans, set stretch goals, select measures and targets. 4. Execute Plan. management by objective, single use plans, decentralized, dashboards 5. Monitor and Learn. hold planning reviews and operational reviews.
Levels of Goals and Plans (pyramid)
1: Mission Statement 2: Strategic goals/plans; Senior (top) Management, Org as a whole 3: Tactical goals/plans: Responsibility of middle managers in charge of major divisions. Focus on major actions the division must fill to meet strategic plan 4. Operational: Lower management, departments, individuals. Front-line managers focus on specific tasks that help meet tactical and strategic goals.
Situational Analysis (SWOT)
: an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
An organization's grandest aspiration for the future, one that differentiates it from all its competitors, is known as: A. Its mission B. Its vision C. A Big Hairy Audacious Goal D. A stretch goal
A Big Hairy Audacious Goal
problem
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).
Sole Proprietorship
A business that is owned, and usually managed, by one person
A balanced scorecard augments traditional financial measures with benchmarks for performance in each of the following key nonfinancial areas EXCEPT: A. A company's relationship with its customers B. A company's key internal processes C. A company's relationship with shareholders D. A company's learning and growtH
A company's relationship with shareholders
Nominal Group Technique (NGT)
A group problem solving technique that calls people together in a structured meeting with limited interaction
Brainstorming
A group problem solving technique that promotes creativity by encouraging idea generation through noncritical discussion Encourages hitchhiking
Differences between managers and leaders
A manager plans, organizes, and controls functions within an organization. A leader has vision and inspires others to grasp that vision, establishes corporate values, emphasizes corporate ethics, and doesn't fear change.
Runners preparing for a marathon usually follow a training schedule involving daily runs of specified times and distances, cross-training, and days of rest. This integrated series of lower-level, short-term goals to provide the foundation and motivation for ultimately achieving the higher goal of completing the marathon within a targeted time is a good example of: A. A reticulated behavioral chain B. Goal-chain training C. Multi-level goal progression D. A means-end chain
A means-end chain
A standing plan is ________. A) A plan designed for repeated use in response to commonly occurring events B) A plan developed to achieve a particular goal or in response to an event that is not expected to be repeated C)A plan that interprets an organizational strategy into a market- or community-based opportunity for division or departmental manager D) A plan that covers an intermediate time scale and enacts divisional strategies by allocating people and resources
A plan designed for repeated use in response to commonly occurring events
SWOT
A planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?
A situational analysis
____ is the emotional reaction that can occur when disagreements become personal rather than professional. a. A-type conflict b. Organizational disharmony c. C-type conflict d. Norm disruption e. Emotive empowerment
A-type conflict
When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____.
Accountability
Stretch goals
Ambitious, clear, compelling, and imaginative that they fire up employee excellence. Important bc things move fast. Require innovation
SCORE
An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)
The first step in the strategy-making process is to _____.
Assess the need for strategic change
Equity
Assets - Liabilities
What are the three types of training objectives? What are the specific attributes/characteristics of each type of objective?
Attitude Development (feel), Skill Development (do), Knowledge Development (think).
75. Companies can achieve growth mainly by . • shrinking the scope of their business • growing internally through direct expansion or creating new businesses • deleting all cash cows from their portfolios • only maintaining stars in their portfolios • doing all of these
B. growing internally through direct expansion or creating new businesses
People tend to be more motivated by __________ goals.
Challenging
____ is the measure of the intensity of competitive behavior between companies in an industry.
Character of the rivalry
is the measure of the intensity of competitive behavior between companies in an industry.
Character of the rivalry
Which of the following is NOT one of the core job characteristics in the job characteristics model (JCM)?
Client relationships
Which of the following types of tests accurately predicts job performance in almost all kinds of jobs?
Cognitive ability tests
____ is the extent to which team members are attracted to a team and motivated to remain with it.
Cohesiveness
Leadership
Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives
Crisis Planning
Crisis prevention stage: detect warning signs of potential crises. builds open, trusting relationships with stakeholders Crisis preparation: detailed planning. 1:designating a crisis management team and spokesperson. 2:crisis management plan. 3:setting up and effective communications system
Commerce Insurance Services has five functional divisions. They are personal; core commercial; Main Street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ____ departmentalization.
Customer
Two thirds to three fourths of a managers time is spent
Dealing with people
___ is the process of choosing a solution from available alternatives
Decision making
____ is the process of choosing a solution from available alternatives.
Decision making
____ is the process of choosing a solution from available alternatives. a. Divesting b. Decision making c. Self-dealing d. Deskilling e. Environmental scanning
Decision making
Planning
Determining the org.'s goals and defining the means for achieving them. goal-a desired future state that the organization attempts to realize. (future ends) plan-a blueprint for goal achievement with specific resource allocations, schedules, tasks, etc. (Today's means)
Which of the following is the first step in management by objectives? a. Developing operational plans b. Centralizing decision making power c. Preparing worker schedules d. Discussing possible goals e. Reviewing progress towards goal achievement
Discussing possible goals
____ is intentional discrimination that occurs when people are purposefully not given the same hiring, promotion, or membership opportunities because of their race, sex, age, ethnic group, national origin, or religious beliefs.
Disparate treatment
Which of the following statements about portfolio strategy is true?
Dysfunctional consequences can occur when companies are categorized
Fran Wilson Creative Cosmetics is a medium sized U.S. company that sells 1.5 million tubs of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its product are sold there. Fran Wilson Creative Cosmetics uses________ to reach the Japanese market. a. franchising b. direcdt investment c. licensing d. a strategic alliance e. exporting
E. exporting
Three forces in brainstorming that block ideas:
Evaluation Apprehension: don't talk bc fear of being critically evaluated Free riding: social loafing Inhibiting procedures: only one person speaks at a time, people forget their ideas
Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?
Existing complementary products
What training method(s) do you think your team will use to conduct your training session?
Experiential Lectures Group discussions
A european car manufacturer signing a contract to manufacture cars in a chinese factory is an example of direct foreign investment.
F
Companies face very litte uncertainty in their strategic business environments.
F
T or F. Encouraging worker participation in goal setting and getting top management's support are not recommended ways to increase goal commitment in an organization.
F
There are two conditions that must be met if a firm's resource are to used to achieve a sustainable competitive advantage. The resources must be valuable and rare.
F
A Q-level is the degree to which a company or its business model can grow, given the necessary resources. Select one: True False
False
A Type A personality is a behavioral pattern where individuals tend to be more patient, relaxed, easygoing, and more sensitive to the feelings of others. Select one: True False
False
A business model is a newly formed organization with limited or no operational history Select one: True False
False
A business plan is a set of stakeholders necessary to support the innovation and creation of new market value. Select one: True False
False
Agreeableness is is when an individual exhibits thoughtfulness, organization, and responsibility in the pursuit of goals. Select one: True False
False
Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.
False
Burnout is the physiological and emotional reactions experienced by individuals to excessive pressures or demands at work. Select one: True False
False
Differentiation is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors.
False
Expansive government policy is a barrier to entry. Select one: True False
False
Managers that practice the art of self-awareness are far more likely to be sure to exert their authority often. Select one: True False
False
Needing excessive motivation from their superiors is characteristic of knowledge workers. Select one: True False
False
Planning is a three-step process which involves first setting goals, next developing effective action plans, and finally tracking progress toward goal achievement.
False
Profit sharing is a system that allows employees to share in any cost savings made by the firm. Select one: True False
False
Scheduling group meetings for all new employees to ensure that all of their questions and concerns are being addressed is one of the top 10 HR on boarding success rituals/habits. Select one: True False
False
The greater the market commonality, the less intense the direct competition between two companies.
False
When an organization seeks competitive advantage by providing goods or services that are significantly different from the competition, it is pursuing a focus strategy. Select one: True False
False
The only kinds of adaptive strategies are defending, analyzing, and reacting
False, There are four kinds of adaptive strategies: defending, analyzing, prospecting, and reacting.
The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.
False;
When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.
False;
If retrenchment works, it is typically followed by a stability strategy.
False; If retrenchment works, it is often followed by a recovery strategy that focuses on growing the business again.
The organization's vision must regularly change to adapt to changes in the environment over time
False; One of the defining characteristics of an organizational vision is that it should be enduring.
S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.
False; S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely.
Developing a vision and mission statement is the sole responsibility of middle management.
False; this is the responsibility of top managers
Groupware pros
Faster, clearer communication Communicate when it otherwise wouldn't be possible Enable telecommuting Reduce travel costs Bring together multiple perspectives and expertise Assemble groups with common interests when it wouldn't be possible face to face To facilitate group problem solving
Which of the following organizations are most directly in competition with each other?
FedEx and UPS
According to Hofstede's research on cultural dimensions, ____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.
Feminine
Advocacy
Fighting for one position Opposite of inquiry, approached decision making as a contest with a winning alternative Personality conflicts come into play
When the bargaining power of suppliers and buyers is high, companies in the industry will ____.
Find it more difficult to be profitable
The positioning strategies identified by Michael Porter are _____.
Focus, cost leadership, and differentiation
_____ are both examples of cooperative contracts.
Franchising and licensing
Which of the following is a method used for compensating employees for team participation and accomplishments?
Gainsharing
Which of the following is an accepted method for tracking progress toward goal achievement? a. Practicing planner detachment b. Data warehousing and data mining c. Gathering and providing performance feedback d. Using micromanagement techniques e. Setting response and stimulus goals
Gathering and providing performance feedback
The two major approaches to corporate-level strategy are ____.
Grand and the portfolio strategy
What is a cross-functional, self-managed team? Who would serve on such teams? Why do these teams often lead to networking?
Groups of employees from different departments who work together on a long-term basis (as opposed to the temporary teams established in matrix-style organizations). Self managed means that they are empowered to make decisions without management approval. The barriers among design, engineering, marketing, distribution, and other functions fall when interdepartmental teams are created. Cross-Functional teams works best when leadership is shared.
Cross Functional Teams
Groups of employees from different departments who work together on a long-term basis.
Which of the following is NOT an example of a pay-variability decision used to motivate employee performance?
Hierarchical pay
Which of the following is true about planning? a. It reduces effort from employees and managers. b. It fixes all organizational problems. c. It quickens needed adaptation. d. It helps managers create task strategies. e. It decreases persistence toward goals.
It helps managers create task strategies.
_____ attempts to overcome the deficiencies in specialized work by increasing the number of tasks and by giving workers the authority to make meaningful decisions about their work.
Job enrichment
A(n) _____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication.
Mechanistic
Electronic brainstorming
Method of generating ideas with the aid of a computer. Group members simultaneously and anonymously enter their suggestions into a computer, and the ideas are distributed to monitors of other group members -Can be anonymous; users can answer whenever
As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward performing employees and bolster morale during a sales-flattening economic downturn. Radeback is an example of a:
Middle Manager
Who among the following is responsible for the creation of tactical plans? a. Top managers b. Lower-level managers c. Middle managers d. Team leaders e. Facilities team
Middle managers
Who is responsible for the creation of tactical plans?
Middle managers
Nestle is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestle is an example of a ______.
Multinational corporation
Which of the following statements about the Strategic Reference Point Theory is true?
None are true.
Which of the following statements about the strategic reference point theory is true?
None of these statements about the Strategic Reference Point Theory is true
consistency versus adaptation
Once a company has decided that it will go global, it must decide how to go global. Strategies include: Global consistency and Local adaptation
There are three kinds of ___ plans; single-use, standing, and budget plans
Operational
A plan that guides the day-to-day production or delivery of an organization's goods and services, and which enacts a functional strategy is known as a(n):
Operational plan
____ planning keeps options open by making small, simultaneous investments in many alternative plans.
Options-based
_____ planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans. a. Operational b. Action-based c. Functional d. Strategic e. Options-based
Options-based
Which of the following is NOT one of the ways multinational companies manage their operations abroad?
Outsourcing
A visual representation of an organization's strategies and goals, which allows managers to track progress toward metrics and goals immediately, is called a:
Performance dashboard
Nestlé was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars were not suitable for the Indian markets because the candy had to sit in direct sunlight without benefit of air conditioning and became messy. Nestlé adopted an innovation strategy and developed Chocostick, a liquid chocolate, which is very popular. Solving this problem involved what management function?
Planning
____ are types of standing plans. a. Transformational plans b. MBO guidelines c. Long-term tactical strategies d. Policies and procedures e. Targeted plans
Policies and procedures
What are the two types of political risk that affect companies ....global business?
Political uncertainty and policy uncertainty
____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.
Rational decision making
____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. a. Problem identification b. Benchmarking c. Multivariable selection d. Keystoning e. Rational decision making
Rational decision making
An organization which is a ____ in terms of its adaptive strategy would NOT follow a consistent strategy.
Reactor
Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?
Realistic
Which of the following is NOT one of the characteristics of S.M.A.R.T. goals? A. Specific B. Measurable C. Achievable D. Realistic E. Time-bound
Realistic
An organization that has ____ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
Resources
In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was ICI using?
Retrenchment
Which of the following statements is true about how the portfolio strategy can be used to help managers acquire companies that fit well with the rest of their corporate portfolio?
Risk can be reduced through related diversification (creating or acquiring companies in related businesses).
Which of the following is the most specific type of standing plan? a. Policies b. Budgets c. MBO plans d. Procedures e. Rules and regulations
Rules and regulations
What are S.M.A.R.T. objectives and how do you make sure your objectives are SMART?
SPECIFIC( use words that encourage that promote specific behaviors that can be observed and measured), MEASURABLE (avoid using words that cannot be measured like to learn/understand. Also should be able to evaluate how behavior was performed), ATTAINABLE( objectives are realistic and achievable), RELEVANT, TIME BOUND
____ occurs when managers choose an alternative that is good enough, rather than the best possible alternative.
Satisficing
____ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. a. Budgeting b. Optimizing c. Alternating d. Maximizing e. Satisficing
Satisficing
Which of the following is NOT one of the rules for effective brainstorming?
Select an open-minded group leader
____ is the process of gathering information about job applicants to decide who should be offered a job.
Selection
The highest level of team autonomy is found in _____.
Self-designing teams
____ are a type of operational plan.
Single-use plans
Reality Check: make assessments of the surrounding environment called ______ _______ as known as Environmental Analysis.
Situation Analysis
A _____, also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
Situational analysis
_____ occurs when workers withhold their efforts and fail to perform their share of the work.
Social loafing
The matrix separates businesses into four categories which are WHAT?
Star, Question mark,Cash cow, and Dog
Explain the difference between strategic, tactical, operational, and contingency planning?
Strategic planning is broad, long-range planning that outlines the goals of the organization. Tactical planning is specific, short-term planning that lists organizational objectives. Operational planning is part of tactical planning and sets specific timetables and standards. Contingency planning is developing an alternative set of plans in case the first set doesn't work out
____ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.
Strategic reference points
President John F. Kennedy's announcement in 1961 of U.S. intentions to achieve the first human moon landing by the end of the decade is an example of which if the following?
Stretch goal
President John F. Kennedy's announcement in 1961 of U.S. intentions to achieve the first human moon landing by the end of the decade is an example of which if the following? A. Proximal goal B. Stretch goal C. Tactical goal D. Short-term goal
Stretch goal
The ____ interview uses only standardized, job-related interview questions that are prepared ahead of time and asked of all candidates.
Structured
____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
Subsidies
Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?
Synergistic
Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?
Synergistic;
A technology cycle begins with the birth of a new technology and ends when that technology reaches its limits and dies; it is then replaced by newer substantially better Technology.
T
Companies that succeed are continuously re examining their strategies and competitive practices that have been successful in the pasdt in order to ascertain their probable future success.
T
Companies that succeed over a long period of time are often continually re-examining strategies or competitive practices that have been successful in the past in order to assure their probable future success.
T
Companies that want to sustain a competitive advantage must understand and protect themselves from the strategic threats of both innovation and ocmpetitors.
T
Corporate level strategy is the overall organizational strategy that addresses the question "what business or businesses are we in or should we be in?"
T
Global joint ventures can be difficult to manage because they represent a merging of a different cultures.
T
In a multinational company, managers at a company headquarters may value global consistency as a company police because global consistency simplifies decision-making at corporate headquarters and costs.
T
T or F. Groupthink is not likely to occur in a highly cohesive group that is insulated from others and no established procedure for systematically defining problems and exploring alternatives.
T
T or F. Planning is a good way to improve organizational performance.
T
T or F. The tree kinds of standing (or permanent) plans are policies, procedures, and rules and regulations.
T
Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.
T
____ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
Tactical
_____ plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. a. Tactical b. Single-use c. Visionary d. Strategic e. Operational
Tactical
The two general kinds of trade barriers are _____.
Tariff barriers and nontariff barriers
____describes the average level of ability, experience, personality, or any other factor on a team.
Team level
Uniform Partnership Act
The Uniform Partnership Act provides that a majority interest of the remaining partners can agree to continue the partnership within 90 days of the dissociation. The Uniform Partnership Act effectively saved partnerships from dissolution following a partner's dissociation. In addition, the UPA provides rules regarding partnership formation, fiduciary duties and the ownership of partnership assets. The initial Uniform Partnership Act was adopted in every state except Louisiana.
Sole Proprietorships- Why is it a popular form of ownership for new firms? Why can it be unattractive to growing firms?
The advantages of sole proprietorships include ease of starting and ending, ability to be your own boss, pride of ownership, retention of profit, and no special taxes. The disadvantages include unlimited liability, limited financial resources, difficulty in management, overwhelming time commitment, few fringe benefits, limited growth, and limited life span
Political Decision making model
The assumption about decision making that people bring preconceived notions and biases into the decision making situation "Satisfying one's own interest" Facts and figures that conflict with personal biases and preferences might get blocked out of memory or rationalized away
Strategic planning
The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve these goals
Tactical planning
The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done.
Networking
The process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.
Contingency planning
The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
Group Decision Making
The process of reaching a judgement based on feedback from more than one individual Purpose is agreeing on a solution and making a decision
Operational planning
The process of setting work standards and schedules necessary to implement the company's tactical objectives.
Which of the following statements is correct?
The rate of change has increased for most organizations in the past 20 years
Franchise
The right to use a specific business's name and sell its products or services in a given territory
Economies of Scale
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk, the average cost of goods goes down as production levels increase
Strategy Making for Firms Big and Small
The strategy-making process is the method by which companies create strategies that produce sustainable competitive advantage
Rational Decision making model
The traditional, logical approach to decision making based on the scientific method Based on an economic view of decision making
Core competencies
Those functions that the organization can do as well as or better than any other organization in the world
____ is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years.
Top management
____ means providing opportunities to employees to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their performance.
Training
A Machiavellian leader has little respect for his or her subordinates, tends to take credit for their ideas, and rules with fear. Select one: True False
True
A aggregation venture is a business strategy defined by acquiring, merging, and coordinating existing market products, services, and companies, while a discovery venture is a business strategy that seeks to invent a brand-new product or service or find a new resource. Select one: True False
True
A company that uses strategies for high risk and fast growth through product and market innovation is known as a prospector. Select one: True False
True
A servant leader is a person that focuses on the needs, objectives, and aspirations of team members to help them achieve organizational goals. Select one: True False
True
A strategic group is a group of other companies, within an industry, that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities.
True
According to the text, John F. Kennedy is a good example of which of the "good man" type of leader. Select one: True False
True
An analyzer is a company whose strategies seek to maintain existing products and services while pursuing limited innovation. Select one: True False
True
Benefits are non-monetary compensation in the form of health insurance, pensions, paid vacation, etc., which vary depending on the industry and organization. Select one: True False
True
Both proximal and distal goals are used to provide additional motivation and rewards for employees
True
Capacity refers to the financial and human resources available to the company, which will enable or hinder it to achieve goals. Select one: True False
True
Companies often choose a stability strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.
True
Companies use their resources to improve organizational efficiency and effectiveness
True
Companies use their resources to improve organizational efficiency and effectiveness.
True
Creativity is the ability to devise innovative ideas to meet the needs of a particular task or organizational goals. Select one: True False
True
Face-to-face communication is considered the richest form of communication. Select one: True False
True
Feasibility is the degree to which a business venture is possible, given the availability of resources and technologies. Select one: True False
True
For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.
True
From a competitive standpoint, resource similarity means that the strategic actions your company takes can probably be matched by your direct competitors.
True
Key performance indicators (KPIs) are measurements that managers identify as vital to the company's performance with regard to financials, internal processes, customers, and learning/growth. Select one: True False
True
Managers that practice the art of self-awareness are far more likely to obtain feedback from their employees. Select one: True False
True
Motivation may be defined as the incentive or drive to complete a task, function, or idea. Select one: True False
True
People tend to be more motivated by challenging goals. Select one: True False
True
Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
True
Power is the ability to influence how others behave. Select one: True False
True
Strategic dissonance is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.
True
Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
True
The Civil Rights Act of 1964 is a law that has a primary purpose of outlawing discrimination based on race and gender in schools, housing, and hiring. Select one: True False
True
The innovators initially use and test a new product or service, while early adopters use a new product or service after innovators have used and tested it Select one: True False
True
The renewal strategy addresses declining performance through retrenchment and regrowth. Select one: True False
True
The term decision making is used to refer to the process of choosing a solution from available alternatives.
True
The threat of substitute products or services is a measure of the ease with which customers can find substitutes for an industry's goods or services.
True
The three positioning strategies are cost leadership, differentiation, and focus
True
The three positioning strategies are cost leadership, differentiation, and focus.
True
There are four conditions that must be met if a firm's resources are to be used to achieve a sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.
True
he Behaviorally Anchored Rating Scale (BARS) is a method that rates employee performance based on specific behaviors relating to a particular role. Select one: True False
True
united states foreign investment
U.S. companies have made their largest direct foreign investments in the United Kingdom, the Netherlands, and Canada. Overall, U.S. companies invest more than $2.8 trillion a year to do business in other countries
What three words are unacceptable to use when writing training objectives?
Understand, Know, Learn
Brainstorming purpose
Used as a method of finding alternatives to real life problems and as a creativity training program
Which of the following is NOT an example of the pitfalls of goal setting? A. Excessive risk-taking B. Increases in stress C. Using goals as a baseline for performance D. Short-range thinking
Using goals as a baseline for performance
WHAT are the following four conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
Valuable resource,Rare resource ,Imperfectly imitable resource, and Nonsubstitutable resource
A(n) ____is defined as a team composed of geographically and/or organizationally dispersed coworkers who use telecommunications and information technologies to accomplish an organizational task.
Virtual team
Why you shouldn't email too much
Warmth of human interaction and facial expression is lost Face to face interaction facilitates creativity as people exchange ideas
Which of the following is one of the six steps in the rational decision-making process?
Weight the criteria
direct foreign investment
When a company builds a new business or buys an existing business in a foreign country
Three aspects of group problem solving in making more effective decisions
Working through the group problem solving steps Managing disagreement about the decision Aiming for inquiry rather than advocacy
The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the:
World Trade Organization
A behavioral method that involves withholding praise or a positive reward is known as: Select one: a. Extinction b. Positive reinforcement c. Positive punishment d. Withholding behavioral therapy e. Avoidance learning
a
A plan of action for achieving goals is known as: Select one: a. Strategy b. Marketing c. Operating d. Structuring
a
Activities and processes that an organization routinely does well in comparison to its competitors are: Select one: a. Core capabilities b. Primary processes c. Key advantages d. Essential elements
a
The process of influence aimed at directing behavior toward the accomplishment of objectives is known as: Select one: a. Leadership b. Power c. Controlling d. Management
a
When decision making is limited by time, cognitive abilities, and available information it is known as: Select one: a. Bounded rationality b. Satisficing c. Reasoned judgment d. Administrative model
a
Which of the following kinds of power results from the influence that a manager has because of his or her title inside an organization or status in a community? Select one: a. Legitimate b. Coercive c. Reward d. Referent e. Expert
a
Question mark
a company with a small share of a fast-growing market
Dog
a company with a small share of a slow-growing market.
Intelligence Teams
a cross functional group of managers and employees who work together to gain understanding of issue, with the aim of presenting insights, possibilities, and recommendations about goals and plans related to the issue.
According to the text, which of the following is a pitfall of planning?
a false sense of certainty based on faulty assumptions
which of the following is a pitfall of planning?
a false sense of certainty based on faulty assumptions
Strategic group
a group of companies within an industry that top managers choose to compare, evaluate, and benchmark strategic threats and opportunities.
As direct competitors, UPS and FedEx would have _____
a high degree of market commonality
Imperfectly imitable resource
a resource that is impossible or extremely costly or difficult for other firms to duplicate.
Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?
a situational analysis
Diversification
a strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses), so that the failure of one stock or one business does not doom the entire portfolio.
Stability strategy
a strategy that focuses on improving the way in which the company sells the same products or services to the same customers
Growth strategy
a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business.
field simulation training
a technique made popular by the U.S. Peace Corps, places trainees in an ethnic neighborhood for three to four hours to talk to residents about cultural differences
Which of the following is a component of a book publisher's general environment and will indirectly influence how it does business?
a trend towards leisure time
What are case studies and how are they used in experiential learning?
a type of problem-based learning that includes a detailed and contextualized problem that is presented to trainees for solving, used in experiential learning to help trainees practice skills
Which of the following is the first step in management by objectives?
a. Discussing possible goals
Which of the following is an accepted method for tracking progress toward goal achievement?
a. Gathering and providing performance feedback
58. are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage. a. Strategic reference points b. Strategic focus points c. Differentiation targets d. Imperfectly imitable resources e. Strategic monitors
a. Strategic reference points
38. The first step in the strategy-making process is to . a. assess the need for strategic change b. conduct a situation analysis c. choose strategic alternatives d. evaluate the impact of changes on the internal environment e. create a strategic budget
a. assess the need for strategic change
94. When The Home Depot opened stores in Canada, it ran a series of ads featuring an animated hammer that showed that the U.S.-based home improvement store had the lowest prices. According to Michael Porter, which of the following positioning strategies did The Home Depot adopt to deal with existing Canadian stores that sold similar products? a. cost leadership b. diversification c. focus d. differentiation e. repositioning
a. cost leadership
88. An ad for a major brand of clothes washer reads, "Since our humble beginnings back in 1950, we have been dedicated to building machines with superior cleaning power, reliability, and style." This manufacturer is more than likely using which kind of positioning strategy? a. differentiation b. retrenchment c. diversification d. focus e. stability
a. differentiation
91. When the bargaining power of suppliers and buyers is high, companies in the industry will . a. find it more difficult to be profitable b. most likely use a growth strategy c. divest themselves of all of their cash cows d. engage in organizational restructuring e. not own any stars
a. find it more difficult to be profitable
70. A strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use. a. grand b. growth c. stability d. retrenchment/recovery e. repositioning.
a. grand
72. McDonald's uses a strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich. a. growth b. decline c. retrenchment/recovery d. repositioning e. pioneering
a. growth
102. Resource similarity and are factors that determine the extent to which firms will be in direct competition with each other. a. market commonality b. resource quality c. related diversification d. product differentiation e. customer autonomy
a. market commonality
37. According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are resources. a. nonsubstitutable b. substitutable c. reliable d. expensive e. imitable
a. nonsubstitutable
A(n) _____ is a brief, two-sentence statement of a company's purpose for existing.
a. organizational mission
Starbucks is expanding its global operations into south america in spite of the real probability of civil wars terrorist activities in many of the continent's nations. As starbucks expands into south america, it must deal with a. political uncertainty b. economic uncertianty c. infrastructure regulation d. nationalistic equity e. strategy risk
a. political uncertainty
Russia imposed limits on how much poultry, beef, and pork could be imported into the nation from the European Union in retaliation to limits the EU placed on how much grain Russia could export. What type of nontariff barrier did Russia use to control the amount of poultry, beef, and port it imported from the EU? a. quotas b. substities c. boycotts d. customs classifications e. duties
a. quotas
35. A(n) is a resource that is impossible or extremely costly or difficult for other firms to duplicate. a. rare b. imperfectly imitable c. nonsubstitutable d. strategically dissonant e. reliable
a. rare
71. In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was ICI using? a. retrenchment b. stability c. growth d. maturity e. cutback
a. retrenchment
82. If successful, which strategy is often followed by a growth strategy? a. retrenchment b. stability c. portfolio d. focus e. differentiation
a. retrenchment
77. Companies often choose a strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. a. stability b. growth c. pioneering d. portfolio e. retrenchment
a. stability
The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.
a. standing plan
53. For companies whose main products will not be seen by consumers and whose skills lie in productivity anonymity, a could be to create a brand image to create a distinctive competence. a. strategic reference point b. tactical benchmark c. strategic mission d. core advantage e. competitive sustainability
a. strategic reference point
40. Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golf balls gives Top-Flite a(n) . a. sustainable competitive advantage b. aggregate marketing strategy c. reliable differentiation d. strategic stance e. differential stance
a. sustainable competitive advantage
Knowledge development
ability to demonstrate acquired knowledge, ability to comprehend information, ability to analyze concepts
The activities taken to have people "buy-in" to the plans is called
acceptance planning
What does 'A' stand for?
action oriented
Strategic plans
actions steps by which the company intends to attain strategic goals. Blueprint; activities and resource allocations. Long term, 2-5 years.
control
active strategy to prevent or reduce political risks, lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country
spouse family and dual career issues
adaptability screening: assesses how well managers and families are likely to adjust to a foreign culture, language and cross-cultural training for the family is just as, if not more important than training for employees
short term/long term orientation
addresses whether cultures are oriented to the present and seek immediate gratification or to the future and defer gratification (short term cultures are more consumer driven while long term cultures are are savings driven)
Strategic goals
aka official goals. Broad statements of where the org. wants to be in the future. As a whole rather than specific departments. ex-general motors want the automaker to get back on track after years of decline
Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?
all of these
Which of the following is a component of a creative work environment that encourages creativity?
all of these
general agreement on tariffs and trade (GATT)
an agreement to regulate trade among more than 120 countries. It was active from 1947 to 1995, members engaged in eight rounds of trade negotiations, with the Uruguay Round (which made it much easier and cheaper for consumers in all countries to buy foreign products/limits on how much national governments can subsidize certain companies/established protections for intellectual property) signed in 1994 and going into effect in 1995, established stricter limits on government subsidies,
WHAT are the three steps to create strategies that produce sustainable competitive advantage?
assess the need for strategic change, conduct a situational analysis, and choose strategic alternatives.
political uncertainty
associated with the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events
the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance
at both the beginning and end of the cycle
in the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance
at the midpoint of the cycle
A plan that guides the day-to-day production or delivery of an organization's goods and services, and which enacts a functional strategy is known as a(n): Select one: a. Tactical plan b. Operational plan c. Options-based plan d. Directional plan
b
The space shuttle Challenger disaster was presented in the text as a tragic example of which of the following decision-making problems? Select one: a. Representative bias b. Groupthink c. Satisficing d. Ambiguity
b
Which of the following can be become problematic when implementing decision alternatives? Select one: a. Illusion of control b. Production blocking c. Satisficing d. Prior hypothesis bias
b
Which of the following levels of strategy answers the question, "How will a business compete in a particular industry or market?" Select one: a. Operational strategy b. Divisional strategy c. Organizational strategy d. Functional strategy
b
62. Which of the following statements is true about how the portfolio strategy can be used to help managers acquire companies that fit well with the rest of their corporate portfolio? a. The fewer businesses in which a corporation competes, the smaller its overall chances of failing. b. Risk can be reduced through related diversification (creating or acquiring companies in related businesses). c. Invest the profits and cash from mature, slow-growth businesses into newer, faster growing businesses. d. The most significant advantage of the portfolio strategy is the ability to categorize businesses as stars, exclamation points, question marks, and dogs. e. All of these statements about how the portfolio strategy can be used to help managers acquire companies that fit well with the rest of their corporate portfolio are true.
b. Risk can be reduced through related diversification (creating or acquiring companies in related businesses).
_____ plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
b. Tactical
104. As direct competitors, UPS and FedEx would have . a. a low degree of resource variability b. a high degree of market commonality c. a low degree of competitive inertia d. a low degree of market commonality e. a high degree of resource synergy
b. a high degree of market commonality
59. The term refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?" a. firm-level strategy b. corporate-level strategy c. industry-level strategy d. portfolio strategy e. vision
b. corporate-level strategy
87. Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability? a. character of the rivalry b. existing complementary products c. bargaining power of suppliers d. threat of substitute products e. bargaining power of buyers
b. existing complementary products
Groupthink occurs in ____.
b. highly cohesive groups where there is a great deal of pressure to agree with each other
34. A(n) resource is a resource that is not controlled or possessed by many competing firms. a. rare b. imperfectly imitable c. nonsubstitutable d. strategically dissonant e. permanent
b. imperfectly imitable
Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage? a. differentiation b. imperfectly imitable resources c. related diversification d. unrelated diversification e. a matrix organizational structure
b. imperfectly imitable resources
83. A(n) strategy is a corporate strategy that addresses the question "How should we compete in this industry?" a. corporate-level b. industry-level c. firm-level d. niche-specific e. SBU-level
b. industry-level
Organizational __________ is the successful inplementation of creative ideas in organizations. a. change b. innovation c. design d. development e. deployment
b. innovation
According to the S.M.A.R.T. guidelines, one of the requirements for effective goals should be a. service oriented b. measurable c. rational d. tactical e. actionable
b. measurable
Deusche bank is the largest bank in the world. Would this give them a sustainable competive advantage? a. yes, because it would make its operaton synergistic b. no, because size isnot criteria for a sustainable competitive advantage c. no, because large institutions do not neccessarily make best use of resources d. no, because large institutions are always targeted for anti trust activites e. yes, because size is directly related to effieciency
b. no, because size is not a criteria for a substainable competitbe advantage
33. Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage? a. yes, because it would make its operations synergistic b. no, because size is not a criteria for sustainable competitive advantage c. no, because large institutions make more effective use of resources d. no, because large organizations are always targeted for anti-trust activities e. yes, because size is directly and positively related to efficiency
b. no, because size is not a criteria for sustainable competitive advantage
Budgets are a type of ____ plans.
b. operational
Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of a. coroporate synergy b. organizational innovation c. assembly networking d. organizational networking e. reverse engineering
b. organizational innovation
In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example? a. rules and regulations b. procedure c. policy d. organizational norm e. security governance
b. procedure
_________________ is a systematic process of defining problem, evaluating alternatives, and choosing optimal solutions a. problem identification b. rational decision making c. benchmarking d. problem analysis e. none of the above
b. rational decision making
67. Deutsche Bank became the world's largest bank through mergers with Bankers Trust, a transatlantic banking operation. Since both banking companies had similar core capabilities, this would be classified as an example of ____. a. related differentiation b. related diversification c. an integrated acquisition d. competency acquisition e. unrelated diversification
b. related diversification
69. The research on diversification in portfolio management indicates that the best approach is probably . a. related differentiation b. related diversification c. unrelated diversification d. repositioning e. no diversification
b. related diversification
When clorox corporation, acquired kingsford charcoal and prime choice brand steak sauce; it was a example of ____________. a. related differentiation b. related diversification c. an integrated acquisition d. competency acquistion e. unrelated diversification
b. related diversification
105. From a competitive standpoint, means that the strategic actions your company takes can probably be matched by your direct competitors. a. market commonality b. resource similarity c. character of the rivalry d. competitive inertia e. competitive autonomy
b. resource similarity
80. Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a strategy. a. portfolio b. retrenchment c. stability d. firm-level e. grand
b. retrenchment
55. When doing an analysis of strategic groups to assess external environmental threats and opportunities, Firms are firms that use related but somewhat different strategies than firms. a. secondary; pioneering b. secondary; core c. transient; core d. pioneering; secondary e. core; transient
b. secondary; core
Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was an ________________ a. technological subraction b. technological discontinuity c. process obsolescence d. process addtiion e. example of design advantage
b. technological discontinuity
According to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces Porter identified?
bargaining power of suppliers
North American Free Trade Agreement
between the United States, Canada, and Mexico, went into effect on 1 January 1994. More than any other regional trade agreement, NAFTA has liberalized trade between countries so that businesses can plan for one market (North America) rather than for three separate markets (the United States, Canada, and Mexico). One of NAFTA's most important achievements was to eliminate most product tariff s and prevent the three countries from increasing existing tariff s or introducing new ones.
Planning works best when the goals and action plans at the ____ of the organization support the goals and action plans at the ____ of the organization.
bottom and middle; top
Video Arts Inc., a Chicago-based business training company, is currently marketing The Grapevine, a 30-minute training video designed to teach companies how to deal with and prevent damaging gossip. Which of the following is an example of a secondary stakeholder group for Video Arts?
business magazines that run ads for the training video
A _____________ is when several individuals manifest and spread generally inaccurate or misleading information throughout the organization. Select one: a. Cluster chain b. Communication network c. Gossip chain d. Grapevine
c
A decision based on preestablished rules in response to a recurring situation is called: Select one: a. Convention b. Non-conventional c. Programmed d. Non-programmed
c
A method of problem analysis that isolates the variables in a system that can truly be addressed through management intervention is known as: Select one: a. Regulation-based analysis b. Rule-based analysis c. Systemic-based analysis d. Policy-based analysis
c
The organizational function that deals with people-related issues such as recruitment, performance management, benefits, training, employee motivation, safety, and administration, while ensuring compliance with employment and labor laws is: Select one: a. Organizational development b. Strategic management c. Human resources management d. Diversity management
c
__________ are concepts that create, nurture, and support other concepts. Select one: a. Flow b. Processes c. Meta-ideas d. Creativity
c
65. The is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds. a. investment matrix b. SWOT matrix c. BCG matrix d. portfolio management matrix e. Maslow grid
c. BCG matrix
86. is the measure of the intensity of competitive behavior between companies in an industry. a. Character of culture b. Competitive barrier c. Character of the rivalry d. Benchmarked rivalries e. Product substitutability
c. Character of the rivalry
Which of the following organizations are most directly in competition with each other? a. Kmart and Gap b. a local flower shop and a grocery store that sells flowers c. FedEx and UPS d. an independent bookstore and a library e. HBO and UPN television network
c. FedEx and UPS
42. The highly fragmented chemical industry in Europe has experienced decreasing profits in an industry reluctance to change the way it conducts business, especially in how it competes against lower-priced U.S. imports. This is an example of . a. competitive dissonance b. strategic apathy c. competitive inertia d. strategic inertia e. competitive apathy
c. competitive inertia
According to Hofstede, when people in a culture are orieted to the present and seek immediate gratication, that culture is described as__________ a. having a long term orientation b. masculine c. having a short term orientation d. individualistic e. feminine
c. having a short term orientation
The last step in effective planning is to _____.
c. maintain flexibility in planning
78. The purpose of a strategy is to turn around very poor company performance by shrinking the size or scope of the business. a. growth b. stability c. retrenchment d. maturity e. repositioning
c. retrenchment
57. According to strategic reference point theory, managers have two basic strategic alternatives. They are . a. risk-avoiding strategy and pioneering strategy b. risk-maintenance strategy and conflict-avoidance strategy c. risk-avoiding strategy and risk-seeking strategy d. frontal attack strategy and guerilla strategy e. none of these
c. risk-avoiding strategy and risk-seeking strategy
Top management is responsible for developing ____.
c. strategic plans
89. Clorox Corporation controls 60 percent of the bleach market. Imagine you are an entrepreneur who was considering developing and marketing a new brand of bleach. Which of Michael Porter's industry forces should you be most concerned about? a. bargaining power of buyers b. threat of substitute products or services c. threat of new entrants d. bargaining power of suppliers e. character of the rivalry
c. threat of new entrants
masculinity/femininity
capture the difference between highly assertive and highly nurturing cultures (masculine: assertiveness, competition, material success, and achievement) vs. (feminine: relationships, modesty, caring for the weak, and quality of life)
Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.
change agent
According to Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time, while ____ supports the status quo, or the existing state of conditions in an organization
change forces; resistance forces
Clorox Corporation controls 60 percent of the bleach market. Imagine you are an entrepreneur who was considering developing and marketing a new brand of bleach. Which of Michael Porter's industry forces should you be most concerned about?
character of the rivalry
Planning is ultimately based upon ____.
choosing a goal and developing a method or strategy to achieve that goal
advantages of strategic alliances
companies avoid trade barriers, companies only bear part of the costs, and partners can learn from each other
advantage of licensing cooperative contracts
companies earn money without investing more money and companies can avoid trade barriers
foreign investment in the united states
companies from the United Kingdom, Japan, the Netherlands, Germany, Canada, Switzerland, France, and Luxembourg have the largest direct foreign investment in the United States. Overall, foreign companies invest more than $2.1 trillion a year to do business in the United States
minimizing political risk
companies should attempt to identify two types of political risk: political uncertainty and policy uncertainty and can use avoidance strategy, control, and cooperation
global new ventures
companies that are founded with an active global strategy, all share two common factors: the company founders successfully develop and communicate the company's global vision from inception and rather than going global one country at a time, new global ventures bring a product or service to market in several foreign markets at the same time
Contingency Planning
company responses in case of emergencies, setbacks, or unexpected conditions. ex- sales fall 20% and prices drop 8%-company will form contingency plan that include layoffs, new markets, etc.
An organization is experiencing ____ when it is reluctant to change strategies or competitive practices that have been successful in the past.
competitive inertia
An organization is experiencing _____ when it is reluctant to change strategies or competitive practices that have been successful in the past.
competitive inertia
The highly fragmented chemical industry in Europe has experienced decreasing profits in an industry reluctance to change the way it conducts business, especially in how it competes against lower-priced U.S. imports. This is an example of ____.
competitive inertia
While ____ is a problem strongly associated with top managers, ____ is a problem more likely to be associated with middle and lower-level managers.
competitive inertia; strategic dissonance
ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to-the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the ____ approach to innovation.
compression
A very important skill at the top level of management is
conceptual skills
The stage of moral development at which individuals focus on external considerations is
conventional level
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Since then, the company has maintained a technological leadership in the production of bike and bike accessories and an organizational culture that encourages innovation. Technological leadership, as well as its organizational culture, are the company's ____.
core capabilities
The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is ____.
costs
Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to ____.
create a competitive advantage
Related diversification
creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures
The Green Giant consumer products company learned that it could not use their Jolly Green Giant character in parts of Asia where a green hat worn by a man signifies that he has an unfaithful wife. This is an example of a(n) ____ that influenced global marketing.
cultural difference
In contemplating a new job you must evaluate the organization's _________________ and see if it "fits" your own value system
culture
A style of leadership that includes behaviors that encourage positive psychological capacities, an ethical climate, greater self-awareness, an internalized moral perspective, a balanced processing of information, and self-development is known as: Select one: a. Servant leadership b. Shared leadership c. Fair leadership d. Authentic leadership
d
A visual representation of an organization's strategies and goals, which allows managers to track progress toward metrics and goals immediately, is called a: Select one: a. Balanced scorecard b. Visualized goal chart c. Metric analyzer d. Performance dashboard
d
In the area of education, teachers might be awarded a bonus if their students perform well in their classes or on exams. This is an example of which of the following? Select one: a. Performance-based bonuses b. Scalon plans c. Pierce-rate incentives d. Merit-based rewards
d
Through progress reports and other types of feedback, managers can: Select one: a. Clarify expectations b. Assess the process c. Make adjustments if necessary d. All of the above
d
When an organization purchases another organization or business in order to grow it is called: Select one: a. An acquirement b. An obtainment c. A procuration d. An acquisition
d
When individuals experience a lack of self-awareness or self-consciousness; they are so wholly focused on achieving the goal that it becomes the only thing that matters, it is referred to as: Select one: a. Altered sense of time b. Personal control c. Living in the present d. Loss of ego
d
Which of these is NOT one of the five main growth accelerants that affect the performance of new ventures? Select one: a. Marketing/branding b. Product/services/after-sales c. Human resources/people/organization culture d. Company financing/liquidity e. Market opportunity/customers/competitors
d
____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.
d. Rational decision making
96. An industry-level strategy that is best suited to changes in the organization's external environment is a(n) . a. positioning b. differentiation c. growth d. adaptive e. diversification
d. adaptive
41. An organization is experiencing been successful in the past. a. strategic dissonance b. strategic inertia c. competitive dissonance d. competitive inertia e. sustained competitive disarray when it is reluctant to change strategies or competitive practices that have
d. competitive inertia
48. In any organization, the are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs. a. imperfectly imitable resources b. valuable resources c. distinctive competencies d. core capabilities e. sources of innovation
d. core capabilities
52. Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Since then, the company has maintained a technological leadership in the production of bike and bike accessories and an organizational culture that encourages innovation. Technological leadership, as well as its organizational culture, are the company's . a. customer sustainabilities b. organizational advantages c. relative competencies d. core capabilities e. superlative advantages
d. core capabilities
51. Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a . a. cash cow b. primary firms c. unrelated firm d. core firm e. secondary firm
d. core firm
46. Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes. This ability is its . a. customer sustainability b. organizational advantage c. relative competence d. distinctive competence e. superlative advantage
d. distinctive competence
74. When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of . a. internal growth b. a stability strategy c. a pioneering strategy d. external growth e. a repositioning strategy
d. external growth
93. The positioning strategies identified by Michael Porter are . a. entrepreneurial, growth, and stability b. diversification, acquisition, and divestment c. defender strategy; diversification, and cost leadership d. focus, cost leadership, and differentiation e. divestment; cost leadership, and diversification
d. focus, cost leadership, and differentiation
61. Which of the following is an example of a common approach to corporate-level strategy? a. positioning strategies b. adaptive strategies c. ROI strategies d. grand strategies e. none of these
d. grand strategies
106. Under conditions of advantage, a competitive attack by the stronger rival is more likely to produce sustained competitive a. high market commonality b. high competitive autonomy c. high resource similarity d. low resource similarity e. low market commonality
d. low resource similarity
According to harvard professor Michael Porter, five industry forces determine an industry's overall attractiveness and its ___________ a. potential for long term change b. potential for short term profitability c. level of risk d. potential for long term profitability e. potential for short term growth
d. potential for long term profitability
85. According to Harvard professor Michael Porter, five industry forces (character of rivalry, threat of new entrants, threat of substitute products or services, bargaining power of suppliers, and the bargaining power of buyers) determine an industry's overall attractiveness and its . a. potential for long-term change b. potential for short-term profitability c. level of risk d. potential for long-term profitability e. potential for short-term growth
d. potential for long-term profitability
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).
d. problem
100. An organization which is a in terms of its adaptive strategy would NOT follow a consistent strategy. a. defender b. pioneer c. analyzer d. reactor e. prospector
d. reactor
________ are the assets, capabilities, processes, information, and knowledge that an organization used to improve its effectiveness and efficiency, to create and sustain competitive advantage. a. grand strategies b. distinctive competencies c. competitive advantages d. resources e. strategic stances
d. resources
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____.
d. standing plans
66. Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. Specialized bikes have a large share of a fast-growing market. According to the BCG matrix, specialized mountain bikes would be classified as . a. problem children b. cash cows c. exclamation points d. stars e. question marks
d. stars
Skills Development
deals with behavior, easier to identify and to determine if met, focus is on performing task or procedure
choosing international markets
deciding where to go global is at least as important as deciding how to go global, key metric is growth potential affected by two factors: purchasing power and foreign competition
Neither Chile nor Peru have a mass-market café culture, but that fact has not stopped Starbucks from engaging in ____ to determine how best to expand into those markets.
decision making
Allocating resources is part of the
decision role
According to John Kotter, which of the following actions will adversely influence refreezing efforts
declaring victory too soon
Hohner is a company that manufactures and markets harmonicas, a product with a steady demand rate. It is so successful at what it does that the company controls 85 percent of the world's harmonica industry. In terms of the adaptive strategies, Hohner would most likely be categorized as a(n) ____.
defender
Kodak is a company name that is associated with photography. The company has recognized that digital photography is a threat to the future growth of the company. Therefore, the company has decided to become a market leader in digital imaging while still providing customer support for people still using film cameras. The existence of both technologies is an example of ____.
design competition
Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of ____ was used to develop Covisint.
design iteration
Single-use plans
developed to achieve goals that aren't likely to be used in the future. Include programs and projects.
An ad for a major brand of clothes washer reads, "Since our humble beginnings back in 1950, we have been dedicated to building machines with superior cleaning power, reliability, and style." This manufacturer is more than likely using which kind of positioning strategy?
differentiation
When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which state of the technology cycle did it enter?
discontinuous change
Companies are not considered unethical if they do not perform their ____ responsibilities.
discretionary
A manufacturer of suntan lotion could set a(n) ____ goal to increase revenues by 8 percent over the next five years and a(n) ____ goal to increase sales next June in Miami Beach by 3 percent.
distal; proximal
An analysis of an organization's internal environment begins with an assessment of WHAT?
distinctive competencies and core capabilities
While ____ are tangible, ____ are not.
distinctive competencies; core capabilities
The use of milestones in the experiential approach to innovation
does all of these
One of the benefits of planning is how it:
does none of these
99. Among companies who use the adaptive strategies, blend the strategies used by . a. prospectors; analyzers and reactors b. analyzers; defenders and reactors c. reactors; prospectors and analyzers d. reactors; defenders and prospectors e. analyzers; defenders and prospectors
e. analyzers; defenders and prospectors
84. According to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces Porter identified? a. existence of complementary products b. organizational structure c. existing benchmarks d. span of management e. bargaining power of suppliers
e. bargaining power of suppliers
44. While is a problem strongly associated with top managers, is a problem more likely to be associated with middle and lower-level managers. a. competitive dissonance; strategic inertia b. differentiation discrepancy; strategic dissonance c. strategic inertia; competitive dissonance d. strategic dissonance; competitive discrepancy e. competitive inertia; strategic dissonance
e. competitive inertia; strategic dissonance
39. NTL is the largest cable company in the United Kingdom. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in this strategy-making process? a. finding the optimal strategic solution b. brainstorming c. conducting focus groups d. assessing the need for strategic change e. conducting a situation analysis
e. conducting a situation analysis
36. Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to . a. create synergy through relationship marketing b. prevent product duplication c. make efficient use of imitative resources d. eliminate the need for nonsubstitutable resources e. create a competitive advantage
e. create a competitive advantage
Aveda is a manufacturer and marketer of cosmetics, perfurms, hair care, and skin care products. To differentiate its products from other similar brands. Aveda focuses on educationing its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to _________________. a. create synergy through relationship marketing b. prevent product duplication c. make efficient use of imitative resources d. eliminate the need for non substitutable resources e. create a competitive advantage by differentiating themselves form their competitors.
e. create a competitive advantage by differentiating themselves from their competitors.
97. Hohner is a company that manufactures and markets harmonicas, a product with a steady demand rate. It is so successful at what it does that the company controls 85 percent of the world's harmonica industry. In terms of the adaptive strategies, Hohner would most likely be categorized as a(n) . a. reactor b. diversifier c. stabilizer d. analyzer e. defender
e. defender
47. While are tangible, are not. a. core capabilities; distinctive competencies b. competitive advantages; differential advantages c. strengths and weaknesses; opportunities and threats d. opportunities and threats; strengths and weaknesses e. distinctive competencies; core capabilities
e. distinctive competencies; core capabilities
98. Because of slowing sales, Arm & Hammer started promoting innovative uses for its baking soda. By searching for new market opportunities, the manufacturer of Arm & Hammer is using which type of adaptive strategy? a. defending b. cost leading c. analyzing d. reacting e. prospecting
e. prospecting
101. Which of the adaptive strategies tends to result in the poorest performance? a. niche marketers b. analyzers c. prospectors d. defenders e. reactors
e. reactors
81. In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. If ICI is successful in making the needed changes, it will more than likely implement a strategy. a. harvesting b. revitalization c. diversification d. revival e. recovery
e. recovery
_______ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. a. maximizing b. optimizing c. availability bias d. negative frame e. satisficing
e. satisficing
45. A , also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment. a. market audit b. firm-level strategy c. competitive advantage d. differentiation analysis e. situational analysis
e. situational analysis
64. When Clorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of . a. related differentiation b. related diversification c. an integrated acquisition d. competency acquisition e. unrelated diversification
e. unrelated diversification
A country or region that has an attractive business climate for companies that want to go global has ____.
easy access to growing markets
One of the benefits of planning is how it
encourages people to work harder for extended periods
The most popular approach to increasing goal commitment is ____. a. encouraging workers' participation in goal setting b. getting top management's support c. assigning goals to workers d. management by mentoring e. assigning unattainable goals
encouraging workers' participation in goal setting
Proactiveness
entrepreneurial firms anticipate future problems, needs, or changes and develop solutions to meet them, even if they are unrelated to their current business.
The final step in the decision making process is to
evaluate and control
According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense (i.e., the seriousness of the problem)?
examining the loss incurred by the victims
Performance Dashboards
executives keep track of key metrics, such as sales in relation to targets, products on back order, etc.
Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?
existing complementary products
Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch wide seed beds spaced 40 inches apart. Before introducing the new tiller to themarket, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the _____ approach to innovation.
experiential
When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of _____.
external growth
According to Hofstede's research on cultural dimensions, _____ cultures emphasize the importance of relationships, modesty, caring, for the weak, and quality of life
feminine
A ____ for a McDonald's fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules.
first-line manager
The positioning strategies identified by Michael Porter are ____.
focus, cost leadership, and differentiation
documentary training
focuses on identifying specific critical differences between cultures
wholly owned affiliates
foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company, parent company receives all of the profits and has complete control however losses for parent company can be enormous
When evaluating alternatives, you should
gather information bearing on each alternative and use gathered information to rate alternatives against decision criteria
The goal of a company was to reduce the expenses incurred by the sales force. A manager examining weekly expense sheets would be using which of the accepted methods for tracking progress toward goal achievement?
gathering and providing performance feedback
Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has a greater capacity. Therefore, many software companies engage in
generational change
______________ are typically expressed in terms of what is to be achieved, how much is to be achieved, and when it is to be achieved.
goals
disadvantages of exporting
goods subject to trade barriers and transportation costs
trade barriers
governments use these to make it much more difficult or expensive to buy imported goods (include tariff and non-tariff barriers)
The two major approaches to corporate-level strategy are ____.
grand strategies and the portfolio strategy
There are three types of grand strategies. Name them.
growth, stability, and retrenchment
A company facing a simple environment would ____.
have few external factors in the environment that affect it
For options-based planning to work, the organization must ____.
have slack resources
world trade organization (WTO)
headquartered in Geneva, Switzerland, this administers trade agreements, provides a forum for trade negotiations, handles trade disputes, monitors national trade policies, and offers technical assistance and training for developing countries, trade disputes between countries are fully settled by arbitration panels of this body, all members (those who agreed to GATT) no longer have veto power and rulings are final
Tactical Plans
help execute top manager's strategic plans and to accomplish a specific part of the company's strategy. shorter time that strategic plan. ex: Gm's tactical goal is to enhance reputation of most imp. brand by buying ads on websites. (Tactical goal helps achieve strategic goal of inc. US market share by 20%)
Groupthink occurs in ____. a. standing committees whose members are under no pressure to agree b. highly cohesive groups where there is a great deal of pressure to agree with each other c. groups in which members have dissimilar backgrounds d. newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions e. groups whose members are elected to serve as figureheads
highly cohesive groups where there is a great deal of pressure to agree with each other
Uncertainty has to do with
how well manager can predict changes and trends affecting their business
One skill that is fairly uniform in its importance throughout the organizational levels is
human skills
A(n) ____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate.
imperfectly imitable
Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage
imperfectly imitable resources
impact of global business
includes: multinational corporations and direct foreign investment
trade agreements
increase choice, competition, and purchasing power, and decrease prices (US market is easy to enter)
patterns of innovation over time that can create sustainable competitive advantage are called
innovation streams
The organizational culture is found in the
internal enviornment
Companies in the chemical industry are struggling to attract the most talented college graduates. One of the biggest challenges facing these companies is attracting new talent to organizations with an "old economy" image. A situational analysis would term this challenge a(n) ____.
internal weakness
Benchmarking
involves identifying outstanding practices, processes, and standards at other companies and adapting them to your own company
Rational decision making
is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
Middle managemen
is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years
Which of the following is NOT a step in the management by objectives (MBO) process?
jointly develop operational plans;
quantitative location factors
kind of facility being built, trade barriers, exchange rates, and transportation and labor costs
Technology is the ____ used to transform inputs (raw materials, information, etc.) into outputs (products or services).
knowledge, tools, and technique
Sodima is a French Cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of ____
licensing
cooperative contracts
licensing: a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce its product, sell its service, or use its brand name in a particular foreign market franchise: a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee
disadvantage of licensing cooperative contracts
licensor gives up control over product quality and licensees can become competitors
Building Scenarios
looking at current trends and discontinuities and visualizing future possibilities.
disadvantage of franchising cooperative contracts
loss of control and culture bound
In terms of Hofstede's cultural differences, the people who are described as happy-go-lucky and are people who are comfortable with an unstructured life and deal well with sudden changes, have a ____.
low degree of uncertainty avoidance
Operational plans
lower levels of orgs. to specify action steps toward achieving operational goals and support tactical plans. ex-schedules
Who is primarily responsible for developing operational plans?
lower-level managers
The last step in effective planning is to ____.
maintain flexibility in planning
The last step in effective planning is to _____. a. develop long-term action plans b. develop goal commitment c. maintain flexibility in planning d. acculturate the employees e. track progress toward goal achievement
maintain flexibility in planning
Which of the following is a commonly used method for increasing goal commitment?
make goals public
advantages of exporting
makes company less dependent on domestic sales and gives company more control
cooperation
makes use of joint ventures and collaborative contracts, such as franchising and licensing, does not eliminate political risk of doing business in a country, however it does limit the risk associated with foreign ownership of a business
Team leaders typically:
manage external and internal relationships
At the beginning of the year, A.J. met with his manager and agreed to specific goals that were then used to measure his performance during the year. A.J.'s manager is using a technique known as:
management by objectives (MBO)
Oper. Planning- MBO
managers and employees define goals for every department, project, and person and use them to monitor performance.
According to the S.M.A.R.T. guidelines, goals should be ____. a. actionable b. measurable c. broad d. rational e. nonspecific
measurable
purchasing power
measured by comparing the relative cost of a standard set of goods and services in different countries (want it high)
Tactical goals and plans provide guidance and coordination at the _________________ level.
middle management
Who is responsible for the creation of tactical plans?
middle managers
The planning documents that are intended primarily for external consumption would include
mission statements
Managers can use behavioral addition and behavioral substitution to ____.
modify corporate culture
During a meeting of the Ambulatory Care Nursing Association (ACNA) board of directors, a commitment was made to ask members for their feedback about their experiences with and perceptions of ACNA. The head of the organization said, "The essence of being a leader is to make sure the organization knows itself." Then she volunteered to conduct the environmental scanning and share what she learned with the others. What informational roles is she assuming?
monitor and disseminator
government subsidies
nations use these to to develop and protect companies in special industries through long-term, low-interest loans, cash grants, and tax deferments
According to the S.M.A.R.T. guidelines, goals should be ____.
none of these
According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are ____ resources.
nonsubstitutable
According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are resources.
nonsubstitutable
non-tariff barriers
nontax methods of increasing the cost or reducing the volume of imported goods, including: quotas, voluntary export restraints, government standards, government subsidies, and customs valuation/classification
Which of the following would be least helpful to a company seeking to avoid large fines by the U.S. Sentencing Commission?
on managerial discretion to avoid ethical violations
Standing Plans
ongoing plans that provide guidance for tasks that repeatedly occur within the org. Include policies, rules, and procedures.
Budgets are a type of ____ plans. a. tactical b. operational c. actionable d. policy e. strategic
operational
There are three kinds of ____ plans. They are single-use plans, standing plans, and budgets.
operational
Which of the following approaches is aimed at changing large systems, small groups, or individuals?
organizational development
When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of
organizational innovation
A(n) _____ is a brief, two-sentence statement of a company's purpose for existing. a. policy b. standing plan c. budget d. organizational mission e. action plan
organizational mission
Historically, most companies have used the ____ to successfully enter foreign markets.
phase model of globalization
After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five years. Which classical management function would be instrumental in achieving this goal?
planning
The first step in the compression approach to innovation is ____.
planning
local adaptation
policy that modifies its standard operating procedures to adapt to differences in foreign customers, governments, and regulatory agencies, typically more important to local managers who are charged with making the international business successful in their countries
Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.
political uncertainty
A(n) ____ resource is a resource that is not controlled or
possessed by many competing firms. 999 rare
According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas.
postconventional level
According to Harvard professor Michael Porter, five industry forces (character of rivalry, threat of new entrants, threat of substitute products or services, bargaining power of suppliers, and the bargaining power of buyers) determine an industry's overall attractiveness and its .
potential for long-term profitability
cultural simulations
practice adapting to cultural differences
language and cross cultural training
pre-departure language and cross-cultural training can reduce inappropriate behaviors and misunderstandings between expatriates and natives, strategies include: documentary training, cultural simulations, then field simulation training
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).
problem
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing). a. problem b. benchmark c. service gap d. condition of certainty e. minimum threshold
problem
Which of the following is a trend that has allowed companies to skip the phase model when going global?
quick, reliable air travel
A(n) ____ resource is a resource that is not controlled or possessed by many competing firms
rare
choosing a location
rather than focusing on costs alone, companies should consider both qualitative and quantitative factors
Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a ____ process with problem identification.
rational decision making
____ is used to refer to a company's practice of identifying and addressing customer trends and problems after they occur.
reactive customer monitoring
Which of the adaptive strategies tends to result in the poorest performance?
reactors
What does 'R' stand for?
realistic
Mission
reason for existing. values, aspirations, and reason for being. the basis for development of goals and plans.
In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. If ICI is successful in making the needed changes, it will more than likely implement a ____ strategy.
recovery
What is so important about the vision and mission statement?
reflect the personality of how the company truly is. This will assist in obtaining the final goals and objectives. You need to know where you're going/destination.
The best type of portfolio strategy may be WHAT?
related diversification
The research on diversification in portfolio management indicates that the best approach is probably .
related diversification
One method of weighing decision criteria uses ____, which is a process where each decision is compared directly to every other criterion.
relative comparisons
_____ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
resources
Tactical goals
results that major divisions within the organization intend to achieve. Middle management describe what major subunits must do to achieve overall goals
from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." Nestle USA used ____ change to reinvent the company.
results-driven
In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was ICI using?
retrenchment
Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a strategy.
retrenchment
The purpose of a ____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.
retrenchment
Which of the following is the most specific type of standing plan?
rules and regulations
Societal groups that are affected by the actions and activities of the company, but that do not have formal, official, or contractual relationships with the company, are called
secondary stakeholders
When doing an analysis of strategic groups to assess external environmental threats and opportunities, ____ firms are firms that use related but somewhat different strategies than ____ firms.
secondary; core
exporting
selling domestically made products to foreign markets
What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer?
single-use plan
A _____, also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
situational analysis
Due to ____ , the intentional pollution of a metropolitan water supply would have greater ethical intensity than insider trading in which a few participants netted less than $10,000.
social consensus, magnitude of consequences, temporal immediacy, probability of effect
What does 'S' stand for?
specific
According to the S.M.A.R.T. guidelines, goals should be ____.
specific measurable attainable realistic timely
quotas
specific limits on the number or volume of imported products
Operational Planning-effective goals
specific, measurable, and have a defined time period. Goals should cover key result areas based on choice and integrity. Challenging but realistic and linked to rewards
According to a speech to a forum for retail leaders made by Dr. Hans-Joachim Koerber, "Sustained growth is essential. Sustaining growth is a challenge for virtually every company." Koerber is the CEO of Metro Group, Germany's largest retailer, which has more than 2,400 stores in 30 countries. What informational role did Koerber assume?
spokesperson
Companies often choose a ____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.
stability
The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events. a. standing plan b. budget c. single-use plan d. options-based plan e. forecast
standing plan
Top management is responsible for developing long-term ____ that make clear how the company will serve customers and position itself against competitors in the next two to five years.
strategic plans
Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golf balls gives Top-Flite a(n) .
sustainable competitive advantage
Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golf balls gives Top-Flite a(n) ____.
sustainable competitive advantage
A department store is experiencing greater than usual shrinkage, and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.
tactical
An Australian manufacturer of surfboards wants to increase awareness of its brand in the U.S. market. A ____ plan to accomplish this objective might be to host a series of surfboard competitions in California .
tactical
____ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
tactical
Management by objectives (MBO) is a management technique often used to develop and carry out. a. visionary plans b. operational plans c. standing plans d. tactical plans e. single-use plans
tactical plans
As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise
tariffs
What is the prime directive? What does WIIFM stand for?
tells participants "whats in it for them". Trainers must answer the prime directive within the introduction to the session
Over the past 20 years, which of the following is an industry that has experienced both the stable and dynamic environments predicted by punctuated equilibrium theory?
the airline industry
Resources
the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem
Core firms
the central companies in a strategic group.
Which of the following would not be a part of the core of an organization?
the competitors
Resource similarity
the extent to which competitors have similar amounts and kinds of resources.
power distance
the extent to which people in a country accept that power is distributed unequally in society and organizations (when low employees don't like their organization or their boss to have power over them or tell them what to do)
Secondary firms
the firms in a strategic group that follow related, but somewhat different strategies than do the core firms
Corporate-level strategy
the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
Entrepreneurship
the process of entering new or established markets with new goods or services. (know characteristics for this)
Operational goals
the results expected from work groups, departments, and individuals. precise and measurable ex-reduce overtime by 10% next month
national culture
the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country
becoming aware of cultural differences
there are five consistent cultural dimensions across (national cultures) countries: power distance, individualism, masculinity/femininity, uncertainty avoidance, and short-term/long-term orientation
A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____.
those companies have, for the moment, stopped trying to duplicate the advantage
Which of the following are important social responsibilities that society expects of organizations?
to make a profit and provide jobs; to obey applicable laws and regulations; to go beyond minimum legal requirements and perform volunteer activities
When a merger of South Carolina-based Springs Industries with the Brazilian textile producer Coteminas was announced, the CEO of Springs was quoted as saying, "It is unclear what effect this move will have on our employees though no immediate layoffs are planned. There may be some in the future." In this stage of the organizational change, ____ the CEO should use empathy and communicate specific details of the merger.
unfreezing
avoidance strategy
used when the political risks associated with a foreign country or region are viewed as too great, firms are already invested in high-risk areas, they may divest or sell their businesses, postpone their investment until the risk shrinks
Which of the following would not be one of the three important social responsibilities that society expects of organizations?
utility
Strategy Map
visual representation of key drivers of an org's success. shows how goals are linked in each area and provides a cause and effect relationship among goals and plans.
Which of the following is one of the six steps in the rational decision-making process?
weight the criteria
Distinctive competence
what a company can make, do, or perform better than its competitors. Review the resources and the processes to see if it's valuable or not. Rare is important as well. Rare means that not everyone has equal access. It is not easy to duplicate. Regular coffee verses Starbucks coffee (example). You want to ensure the product or service cannot be substituted. (This would be a competitor advantage)
global consistency
when a multinational company has offices, manufacturing plants, and distribution facilities in different countries, it will use the same rules, guidelines, policies, and procedures to run those offices, plants, and facilities, managers value this because it simplifies decisions
strategic alliances
when companies combine key resources, costs, risks, technology, and people (most common form is joint venture)
regional trading zones
zones in which tariff and nontariff barriers are reduced or eliminated through treaty, includes: maastricht treaty, NAFTA, CAFTA, UNASUR (south america), and ASEAN/APEC (asia)
Shadow-strategy task force
: a committee within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage.
Transient firms
: the firms in a strategic group whose strategies are changing from one strategic position to another
Define the scenistic methods of training.
"Scenistic" methods of training focuses on the theory of training and its transformative learning, and action capabilities using cognitive and constructivism procedures.
What are the five criteria that should be used when evaluating training sources on the web accountability
-accuracy -objectivity -date -usability -accountability
What are the elements of curriculum design and what are their characteristics
-chronological order: organizes info in a time sequence -simple-to-complex: (exception to first things first) teach basic skills that are needed to accomplish created skill -problem identification to problem solution: be able to identify the issue and then identify what skill to use to solve it
As a PT, it is important for you to understand the ____ and ____ that a client come to you with
-common beliefs -perceptions
Strategy Map Figure
1: Learning and Growth-innovative culture 2: Internal Business Process Goals 3: Customer Service Goals 4. Financial Performance goals all leads to accomplished mission
Which of the following statements about portfolio strategy is true?
Dysfunctional consequences can occur when companies are categorized.
_____ is the loss of high-performing employees who voluntarily choose to leave a company.
Dysfunctional turnover
Outsourcing
Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks.
multinational corporations
Corporations that own businesses in two or more countries
Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to .
Create a competitive advantage
Through progress reports and other types of feedback, managers can:
All of the above
Functional departmentalization ____.
Allows work to be done by highly qualified specialists
Vision statement
An encompassing explanation of why the organization exists and where it's trying to head
Matrix
An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure
Mission statement
An outline of the fundamental purposes of an organization
Limitations of Planning
Creates a false sense of uncertainty May cause rigidity in turbulent environment Plans can get in the way of intuition and creativity
Earning a college degree is an example of a __________ goal, while earning a good grade on this week's exam is an example of a _________ goal. A. Unspecified, vague B. Vague, unspecified C. Distal, proximal D. Proximal, distal
Distal, proximal
______________ refers to the production of novel and useful ideas. a. the synegristic use of resources b. ideation c. creativity d. organizational adaption e. innovative style
c. creativity
60. The two major approaches to corporate-level strategy are . a. portfolio strategies and secondary strategies b. grand strategies and temporal strategies c. grand strategies and the portfolio strategy d. the Boston matrix strategy and the Maslow strategy e. major strategies and minor strategies
c. grand strategies and the portfolio strategy
92. Cost leadership, differentiation, and focus are the three types of strategies discussed in the text. a. grand b. niche c. positioning d. restructuring e. portfolio
c. positioning
The japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of __________ a. a voluntary government restricition b. geo-centrism c. protectionism d. a security quota e. a bureaucratic subsidy
c. protectionism
79. The strategy is analogous to pruning flowers. a. growth b. stability c. retrenchment/recovery d. portfolio e. repositioning
c. retrenchment/recovery
43. An organization is experiencing when there is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management. a. horizontal conflict b. character of the rivalry c. strategic dissonance d. competitive inertia e. an organizational roadblock
c. strategic dissonance
Which of the following is NOT one of the basic methods for managing resistance to change?
change simulation
Attitude Development
changes people's attitudes, increase awareness of, or sensitivity to, something
What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?
control, avoidance, and cooperative strategies
____ occurs when a company sells domestically produced products to customers in foreign countries.
Exporting
A big advantage associated with licensin is low investment requirments, and the licensor maintains control over the quality of the goods or services sold by the foriegn licensee.
F
T or F. For planning to be effective, workers need general goal that are fairly easy to achieve.
F
A job profile is a written account of specific tasks, duties and responsibilities required within a particular role. Select one: True False
False
According to Path-Goal Theory, the appropriate leader behavior for a complex, challenging or ambiguous task is action-oriented behavior. Select one: True False
False
Companies face very little uncertainty in their strategic business environments.
False
Existent needs are NOT a category of human needs included in Alderfer's ERG Theory. Select one: True False
False
Leaders can empower followers by punishing their mistakes. Select one: True False
False
Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals.
False
Most companies compete directly with all the firms in their industry.
False
The acronym GATT stands for the ____.
General Agreement on Tariffs and Trade
The motivation and determination needed to achieve a goal is known as:
Goal commitment
Brainstorming rules
Group size of 5-7 people Everyone has a chance to suggest alternative solutions No criticism is allowed Freewheeling is encouraged Quantity and variety are important Combinations and improvements are encouraged Notes must be taking by a recording secretary Invite outsiders to the brainstorming session Do not overstructure by following any of the above ideas to strictly
McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich.
Growth
Groupware
Includes shared whiteboard, e mail, electronic brainstorming
Which of the following is an advantage of planning? a. It creates a suitable environment for change. b. It fixes all organizational problems. c. It fosters flexibility in the organization. d. It encourages people to work harder for extended periods. e. It allows organizations to adapt to change quickly.
It encourages people to work harder for extended periods.
A ____ is a purposeful, systematic process for collecting information on the important work-related aspects of a job.
Job analysis
Inquiry
Looking for the best alternative Multiple alternatives, encourages the exchange of ideas and well reasoned solution
Who among the following is responsible for developing operational plans? a. Board of directors b. Top managers c. Shareholders d. Middle managers e. Lower-level managers
Lower-level managers
Large accounting agencies typically have separate departments that deal with households, businesses, and governments. This allows them to better serve the needs of their clients, by using ____ departmentalization.
Matrix
A group of workers in a medical examiner's office decided that they would not wear blue jeans to work because such casual wear seemed unprofessional. This informal agreement was made even though the office did not have a dress code. The workers created a(n) ______.
Norm
The ____ is a regional trade agreement that liberalizes trade between countries more than any other such agreement.
North American Free Trade Agreement
____ can help organizations to maintain flexibility as they plan.
Options-based planning
A visual representation of an organization's strategies and goals, which allows managers to track progress toward metrics and goals immediately, is called a: A.Balanced scorecard B. Visualized goal chart C. Metric analyzer D. Performance dashboard
Performance dashboard
A team has finally matured into a fully-functioning team at the ____stage of development.
Performing
Decentralized planning
Planning experts work with managers in major departments to develop their own goals and plans.
_____ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
Resources
Technological innovation can quickly create an opportunity to turn a company's competitive advantage into a competitive disadvantage.
T
The three positioning (generic) strategies are cost leadership, differentiation, and focus.
T
The three steps of the strategy-making process are 1 assess the need for strategic change, 2 conduct a situational analysis, and 3 choose the strategic alternatives.
T
In order from beginning to end, the phases of a technology cycle within an innovation stream consists of
Technological discontinuity, discontinuous change, dominant design, incremental change
People will be more committed to a goal if: A. The task itself is important to them B. The outcome is important to them C. The goal is developed and assigned by a manager D. They truly believe they can achieve the goal
The task itself is important to them
Levels of Management
The three levels are (1) Top management (highest level consisting of the president and other key company executives who develop strategic plans) (2) Middle management (general managers, division managers, and plant mangers who are responsible for tactical planning and controlling); (3) supervisory management (first-line managers/supervisors who evaluate workers' daily performance)
What is a training objective?
a concise statement that describes what the trainees should be able to do when they compete the training.
tariff barriers
a direct tax on imported goods that increases the cost of imported goods relative to that of domestic goods
Corporate-level strategy is the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
True
Goal commitment is the motivation and determination needed to achieve a goal is known as: Select one: True False
True
Key performance indicators (KPIs) are measurements that managers identify as vital to the company's performance with regard to financials, internal processes, customers, and learning/growth.
True
Strategic dissonance
a discrepancy between upper management's intended strategy and the strategy actually implemented by lower levels of management
Competitive inertia
a reluctance to change strategies or competitive practices that have been successful in the past
Valuable resource
a resource that allows companies to improve efficiency and effectiveness.
Rare resource
a resource that is not controlled or possessed by many competing firms.
Nonsubstitutable resource
a resource, without equivalent substitutes or replacements, that produces value or competitive advantage
Which of the following is true about planning?
a. It helps managers create task strategies.
Who among the following is responsible for developing operational plans?
a. Lower-level managers
_____ planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans.
a. Options-based
____ are types of standing plans.
a. Policies and procedures
Managers must instill in their employees a belief that the effort they put into their roles will result in high performance. If employees believe that they have the skills and abilities to perform well, then they have a high effort-to-performance expectancy and will be more motivated to work hard. Select one: True False
True
qualitative location factors
Workforce quality and Company strategy
Which of the following is a disadvantage of oral communication? Select one: a. the possibility of vague or reckless statements that may result in confusion or misunderstanding b. does not allow for spontaneous or immediate feedback c. it can be time-consuming and it takes patience and skill to compose an effective message d. the sender has no idea if the message will be correctly interpreted
a
Star
a company with a large share of a fast-growing market
Cash cow
a company with a large share of a slow-growing market
95. The positioning strategy that is always paired with one of the other two positioning strategies to produce a specialized product or service is . a. focus b. differentiation c. cost leadership d. diversification e. repositioning
a. focus
Management by objectives (MBO) is a management technique often used to develop and carry out.
a. tactical plans
According to the stakeholder model, which primary stakeholder group is theoretically most important to the company?
all primary stakeholders are of equal importance
customs valuation/classification
as products are imported into a country, they are examined by customs agents, who must decide into which of nearly 9,000 categories they should classify a product, important because the category assigned by customs agents can greatly affect the size of the tariff and whether the item is subject to import quotas
The first step in the strategy-making process is to ____.
assess the need for strategic change
According to the Shannon-Weaver Communications Model, the sender encodes a message through a communication ___________ and then the receiver must decode the message that is being delivered. Select one: a. Link b. Channel c. Context d. Bridge
b
All of the following are situational factors according to Fiedler's Contingency Theory except: Select one: a. Position Power b. Follower Development Level c. Task Structure d. Leader-Member Relations
b
An entrepreneur is an individual who performs which of the following activities? Select one: a. Organizing b. All of the above c. Planning d. Leading high-risk business opportunities
b
At the beginning of the year, A.J. met with his manager and agreed to specific goals that were then used to measure his performance during the year. A.J.'s manager is using a technique known as: Select one: a. Benchmarking b. Management by Objectives (MBO) c. 360 Degree Feedback d. Balanced Scorecard
b
Basing decisions on beliefs or assumptions despite evidence to the contrary is: Select one: a. Heuristics b. Prior hypothesis bias c. Production blocking d. Groupthink
b
Equal employment opportunity is a principle stating that every employee has an equal right to advance in a company regardless of all of the following except: Select one: a. Race b. Performance evaluations c. Color d. Disability
b
Individuals' personalities, beliefs, and values are so diverse that we tend to see things in different ways. For example, one person might view getting a B on an exam as disappointing, whereas another might be delighted with the grade. This is an example of differing: Select one: a. Potentials b. Perceptions c. Performances d. Possibilities
b
President John F. Kennedy's announcement in 1961 of U.S. intentions to achieve the first human moon landing by the end of the decade is an example of which if the following? Select one: a. Proximal goal b. Stretch goal c. Short-term goal d. Tactical goal
b
Which of the following is an example of a question that should be avoided in a job interview: Select one: a. What specific qualities and skills are you looking for? b. If I'm hired, when can I start applying for other positions in the company? c. How would you describe the company's culture and leadership philosophy? d. Can you please show me some examples of projects that I'd be working on?
b
Which of the following is not one of the steps in the process for feedback and measurement results? Select one: a. Establish feedback b. Identify the problem c. Measure results d. Assess gaps
b
The most popular approach to increasing goal commitment is ____.
b. encouraging workers' participation in goal setting
73. When Coca-Cola acquired a water-treatment and bottling plant so it could produce and market Dasani brand bottled water, it was an example of . a. a repositioning strategy b. external growth c. niche marketing d. a retrenchment strategy e. internal growth
b. external growth
Mission Statement
broadly defined definition of purpose that distinguishes the org's from others. motivates employees and performance.
Conscientiousness is defined as Select one: a. Awareness of self in the pursuit of goals b. Being hyper-aware of everything related to the pursuit of goals c. Exhibiting thoughtfulness, organization, and responsibility in the pursuit of goals. d. Extreme attention to detail
c
Managers rarely have all the information they need to make the best possible decision where information about the situation, goals, or criteria is incomplete or can be interpreted in multiple ways. This is referred to as: Select one: a. Biases b. Disinformation c. Ambiguity d. Confounding criteria
c
Research suggests that group brainstorming is a particularly effective technique for dealing with a problem that is: Select one: a. Simple and unidimensional b. Routine and easily understood c. Complex and cross-functional d. Specialized
c
Which of the following is NOT one of the characteristics of S.M.A.R.T. goals? Select one: a. Achievable b. Measurable c. Realistic d. Time-bound e. Specific
c
Which of the following is NOT one of the five phases of the ADDIE approach to training? Select one: a. Analysis b. Design c. Intervention d. Evaluation e. Development
c
Which of the following is NOT one of the three stages of general adaptation syndrome (GAS)? Select one: a. Alarm b. Resistance c. Confusion d. Exhaustion
c
Which of the following is the first step in the decision-making process? Select one: a. Solicit and analyze feedback b. Generate alternatives c. Identify the problem d. Analyze the problem and its causes
c
103. Which of the following organizations are most directly in competition with each other? a. Kmart and Gap b. a local flower shop and a grocery store that sells flowers c. FedEx and UPS d. an independent bookstore and a library e. HBO and UPN television network
c. FedEx and UPS
Which of the following is an advantage of planning?
c. It encourages people to work harder for extended periods.
The goal of a company was to reduce the expenses incurred by the sales force. A manger examining weekly sheets would be using which of the accepted methods for tracking progress toward goal achievement? a. setting realistic and attainable goals b. gathering and providing performance feedback c. developing concrete action plans d. making sure goals are measurable
d. making sure goals are measurable
According to the S.M.A.R.T. guidelines, goals should be ____.
d. measurable
32. When making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using resources. a. synergistic b. valuable c. tangible d. nonsubstitutable e. rare
d. nonsubstitutable
Unrelated diversification
creating or acquiring companies in completely unrelated businesses.
63. Starbucks, the operator of Starbucks coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of . a. related differentiation b. related diversification c. an integrated acquisition d. competency acquisition e. unrelated diversification
e. unrelated diversification
In which of the following situation is group decision making most likely to be used?
employee commitment to the decision is needed
First-line managers will most likely have to:
encourage, monitor, and reward the performances of their employees
One of the benefits of planning is how it ____.
encourages people to work harder for extended periods
Which of the following is a commonly used method for increasing goal commitment?
encouraging worker participation in goal setting
The most popular approach to increasing goal commitment is
encouraging workers' participation in goal setting
Risk Taking
entrepreneurial firms are willing to take risks that could result in costly failures.
Competitive Aggressiveness
entrepreneurial firms must be more willing to use unconventional strategies than the firms already existing in a new market space in order to gain an advantage.
Intrapreneurship
entrepreneurship within an existing organization
government import standards
established to protect the health and safety of citizens, in reality, such standards are often used to restrict or ban imported goods
What is the correct sequence for the phase model of globalization?
exporting; cooperative contracts; strategic alliances; wholly owned affiliates
When Coca-Cola acquired a water-treatment and bottling plant so it could produce and market Dasani brand bottled water, it was an example of ____.
external growth
The U.S. Sentencing Commissions Guidelines are
fairly rigid and fairly harsh
advantage of franchising cooperative contracts
fast way to enter foreign markets and gives franchisor additional cash flow
What does ''M' stand for?
measurable
In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example?
procedure
What is a training method? Provide examples of training methods that can be used.
procedure you use to present the training content in order to demonstrate the behaviors you want he trainees to learn. EX: lectures, conducting experiential activities, and facilitating group discussions
Which of the following is NOT a potential legal risk associated with traditional managerial decisions like recruiting, hiring, and firing employees?
product liability
disadvantages of strategic alliances
profits have to be shared and merging of cultures
Competitive advantage
providing greater value for customers than competitors can.
Interim goals that mark your progress as you go through the stages of accomplishing your plan are called
proximal goals
Which of the following factors helps a company determine the growth potential of a foreign market?
purchasing power
Maastricht Treaty
purpose was to transform twelve different economies and twelve currencies into one common economic market called the European Union (EU), with one common currency
Companies that are following a ____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.
stability
A problem with assessing ethics in business decision making is that
standards by which management actions are judged are not always black and white
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____. a. visionary plans b. single-use plans c. tactical plans d. standing plans e. action plans
standing plans
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. Specialized bikes have a large share of a fast-growing market. According to the BCG matrix, specialized mountain bikes would be classified as .
stars
Most planning in an organization probably
starts at the top
An organization is experiencing ____ when there is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.
strategic dissonance
Top management is responsible for developing ____. a. strategic plans b. operational plans c. tactical plans d. worker schedules e. appraisal reports
strategic plans
Retrenchment strategy
strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
uncertainty avoidance
the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations (when high cultures tend to be aggressive and emotional and seek security rather than uncertainty)
individualism
the degree to which societies believe that individuals should be self-sufficient (employees put loyalty to themselves first and loyalty to their company and work group second)
Market commonality
the degree to which two companies have overlapping products, services, or customers in multiple markets
Which of the following is NOT an example of a stakeholder group that an organization must satisfy to assure long-term survival?
the media
Direct competition
the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions
protectionism
the use of trade barriers to protect local companies and their workers from foreign competition
What does 'T' stand for?
timed
Responsibility for creating the organization culture is generally a responsibility of
top managers
Define experiential learning. Provide examples of experiential learning activities.
trainees develop and practice skills together under the direction of a trainer, includes case studies, role playing, and demonstrations
50. In a situational analysis, a strategic group is a group of that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities. a. non-industry specific companies b. expert managers c. trade journals and other relevant periodicals d. other firms within an industry e. consulting firms that use the Delphi technique
d. other firms within an industry
76. Companies that are following a strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers. a. growth b. pioneering c. retrenchment/recovery d. portfolio e. stability
e. stability
The telephone industry today is an example of companies in a
dynamic, changing enviornment
After college, Bill Ford worked at the Ford Motor Company in a variety of positions in manufacturing, sales, marketing, product development and finance. This knowledge of the company from the ground up gave Ford ______ power that would later help him gain the respect of his employees when he became CEO of the company. Select one: a. Legitimate b. Coercive c. Referent d. Reward e. Exper
e
White ___ are tangible, ___ are not
distinctive competencies; core capabilities;
The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.
BCG matrix
Brainwriting
Brainstorming by individuals working alone Typically more useful ideas than in a group
Diversification
Buying several different investment alternatives to spread the risk of investing
A person's moral development goes through three stages, according to Kohlberg, which are:
Preconventional, conventional, and postconventional
Why stand up at meetings?
Produces rapid high quality decision making
Hallmark has four departments. These departments are (1) Flowers and gifts, (2) Cards and E-cards, (3) Hallmark collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ___ departmentalization.
Product
Strategy making can improve the following for both big and small firm:
Profits,Sales Growth, and Return on Investment
Benefits of Planning
Provide motivation and commitment Guide resource allocation Guide to action Set a standard of performance
From a legal perspective, there are two kinds of sexual harassment. They are ____.
Quid pro quo and hostile work environment
____ is the emotional reaction that can occur when disagreements become personal rather than professional.
b. A-type conflict
____ is the process of choosing a solution from available alternatives.
b. Decision making
68. Which of the following statements about portfolio strategy is true? a. The evidence supports the usefulness of acquiring unrelated businesses. b. Dysfunctional consequences can occur when companies are categorized. c. The strategy may weaken the strongest performer in the corporate portfolio, the problem child. d. Labeling a top performer as a cash cow will strengthen employee morale. e. Maslow's hierarchy can be used to determine the level of motivation needed to acquire and make a success of portfolio strategy.
b. Dysfunctional consequences can occur when companies are categorized.
Which of the following is the most specific type of standing plan?
b. Rules and regulations
Who among the following is responsible for the creation of tactical plans?
e. Middle managers
54. Which of the following statements about the strategic reference point theory is true? a. The theory does not consider risk factors. b. The theory is deterministic. c. The theory may lead to bureaucratic management. d. This theory recommends that managers do not change strategic reference points. e. None of these statements about the Strategic Reference Point Theory is true.
e. None of these statements about the Strategic Reference Point Theory is true.
49. Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses? a. organizational scanning b. internal marketing c. corporate strategy d. benchmarking e. a situational analysis
e. a situational analysis
56. A situational analysis for a manufacturer of pet food might reveal which of the following facts . a. a growing dog and cat population in the United States b. scientific research that indicates dogs need less calcium in their diet c. a less expensive, more nutritious imported brand of pet food d. a growing demand for gourmet pet food e. all of these
e. all of these
90. Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use? a. adaptive b. growth c. diversification d. differentiation e. focus
e. focus
Management by objectives (MBO) is a management technique often used to develop and carry out
tactical plans
