MGT exam 4
In order to further an organization's goal of increasing sales by a large margin, the managers coordinate the acquisition of a number of retail outlets in smaller cities. These acquisitions represent the implementation of a(n)
tactical plan
How do tactical plans differ from strategic plans?
tactical plans focus on people and action
Which of the following primarily focuses on people and action?
tactics
What must a manager understand before beginning the planning process?
the enviroment
Bhavik used management by objectives to set goals for his department and clearly communicated goals to all of his employees. However, very few of his employees actually achieved their goals. Why might have Bhavik's goal setting process failed?
there was a lack of top management support
Why do organizations have a difficult time focusing on weaknesses?
they might indicate poor managerial skills
Which of the following is true of multinational corporations (MNCs)?
they transfer capital and information from one market to another
The area that increases the difficulty of an organization performing at a high level is a _____.
threat
Why is it important to identify weaknesses in a SWOT analysis?
to correct them
Which of the following is a goal of the World Trade Organization?
to establish impartial procedures for resolving trade disputes
What is one of the main purposes of a SWOT analysis?
to identify distinctive competncies
What was the goal of GATT when it was developed?
to promote trade barriers
Why is it critical for an organization to understand that eventually a product will go into the decline stage?
to stay in business
Which of the following is the starting point of ensuring commitment to the goal-setting process for organizational goals and plans?
top management support and communication
Which is an international strategy in which a company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness?
transnational
In the context of SWOT analysis, which of the following would be considered as an organization's strength?
unique reputation
What does proper execution of tactical plans depend on?
vertical and horizontal communcation
What occurs when goals are consistent up and down the organization, and strategic, tactical, and operational goals agree with one another?
vertical consistency
If an organization has higher prices for a similar good or service, the prices are an organizational
weakness
When are global efficiencies most easily obtained?
when a single unit has worldwide responsibility
What is one of the key questions that must be addressed by a manager who wants to be effective in the international market?
whether the firm should focus on regionalism or globalization
In what way is a global business different from a multinational business?
A global business is not committed to a single home country.
What is the essence of formal goal setting
Collaborative goal setting
Which of the following is true of the BCG matrix?
It helps managers understand how strategic business units contribute to an overall organization
Define strategy formulation
Strategy formulation is the set of processes involved in creating an organization's strategies, whereas strategy implementation is the methods by which those strategies are operationalized.
How is an organizational threat different from an organizational weakness?
Threats are uncovered by analyzing the organization's environment, while weaknesses are internal to the organization.
What is the advantage of setting business-level strategies?
ability to focus efforts in a targeted manner
Rumi has found that selling gluten-free products at her bakery has been an effective strategy and has allowed her to achieve some of her strategic goals for sales. Which of the following makes this an effective strategy for Rumi?
alignment with her enviroment
The local party store developed a busy lunch business by offering slices of pizza and deli sandwiches to go. They also offered a wide selection of soft drinks in their coolers. Recently, a fast-food restaurant opened down the street, and it offers salads and bottled water. To compete, the party store did the same and expanded its other menu offerings. Which type of business strategy did this store use?
analyzer
Eastside Community Center (ECC) operates to "foster inclusiveness and empower teens" in underprivileged neighborhoods. Jane, the center's executive director, is one year into a three-year plan to double ECC membership. At this point, she has seen only a 10 percent increase in membership. Which of the following is the best tactical plan to better achieve the organization's goals?
assigning two key employees as liaison's to the local high schools for the next year
Unlike multidomestic firms, global corporations _____.
assume that customers are the same regardless of nationalitiy
While performing the function of organizing in a global economy, managers should ....
deal with human resources
What is considered to be the cornerstone of planning?
decision making
Who establishes the corporate mission and strategy?
board of directors
In which way do organizations determine alternatives for working in a particular industry or market?
by setting business level strategies
Lupita's products are in the mature stage of the product life cycle. To remain competitive, Lupita's organization has improved the efficiency of its manufacturing process, which allowed it to lower costs. Which strategy is Lupita's firm pursuing?
defender
When a new line of organic salad dressing was launched, it was very successful. Competitors soon began to produce a similar product. What should the organization do to keep its competitive advantage?
develop strategies to slow the entry of competitors
Zereth uses management by objectives with her employees. Her employees are evaluated and rewarded based on how their performance relates to the achievement of those objectives. What does management by objectives allow Zereth and her staff to accomplish that other goal-setting methods do not?
concurrent goal setting and planning processes
An organization that competes in dozens or even hundreds of markets is called a(n) _____.
conglomerate
A fire broke out in a well-reputed hospital in a city. Despite the firefighters arriving within ten minutes of the occurrence, over a hundred people were severely injured. This was due to insufficient equipment necessary to evacuate people during an emergency. This was clearly a case of the hospital management's faulty _____.
contingency plan
Two of Dharma's facilities are located in areas that are very volatile. Dharma has established long-range plans for all of her facilities, but what must managers at these two volatile facilities take extra care to do?
continuously monitor the environment for possible changes
Geert has managers who work all over the world. Each month, all managers are included in an online meeting. In order to accommodate the time differences for all managers, Geert varies the time of day or evening these meetings take place. Which management function is used when considering the needs of all his international employees?
controlling
The local dollar store sells a variety of products, all at $1 each. These items are no different than the products of other retail chains, but sizes are slightly smaller. In addition, the store is a little out of the way for most shoppers, but shoppers find the value is worth the trip. In which way does the local dollar store compete with nearby retailers?
cost leadership
Polani's company is a leader in the creation of mobile phone cases, and it recently has expanded to make cases for tablets and laptops. Polani's company is using related diversification. What is an advantage of this strategy for the firm?
synergy
Keane Industries is a privately owned firm that manufactures and installs large, deep well digging equipment that can be operated with little technical expertise. The company has a cash surplus due to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the biggest priority for the owners is to maintain full control of any new operations. Which level of international business activity is Keane Industries seeking?
direct investment
Eli makes custom-made leather handbags and wallets in a small shop. He is known for his fine leather products and hand stitching, as well as the lifetime warranty he offers on his products. His items are expensive, and he has no desire to increase the size of his shop. What has Eli developed within his shop?
distinctive competence
What is the first step that a manager should take in executing a tactical plan?
evaluate every possible course of action in light of the goal it is intended to reach
What is the key element for managers in a mature market economy?
freedom of choice
Which trade agreement practices the use of the most favored nation principle, whereby members of the agreement receive preferential treatment?
general agreement on tariffs and trade (GATT)
Which trade agreement was a major stimulus to international trade after it was first ratified in 1948 by 23 countries?
general agreement on tariffs and trades (GATT)
Due to an explosion at a supplier's plant, L'Meese will no longer be able to achieve goals set by her division manager. What should L'Meese remember about goals?
goals are targets, not absolute objectives
A disadvantage of direct investment is _____.
greater economic risk
Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an important component of the company's growth strategy. As the management team considers the best approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?
greater political risk
Mikel is a middle-level manager who is in the process of determining goals and objectives for his managers. He has set goals he feels are necessary to achieve the strategic goals given to him. Which of the following will these goals focus on?
how to operationalize actions
Jones International is a large organization with holdings in the United States, Europe, and Southeast Asia. The corporation's mix of strategic business units (SBUs) allows the company to exploit its strengths and capabilities in more than one line of business and to exploit synergies across business lines. One of the disadvantages of Jones International's strategy is that it _____.
increases management complexity
Bonafide Fresh offers an expanding brand of personal care products that are made with all-natural ingredients. The company has an organizational goal to increase the number of product lines that it offers. Which of the following is the best example of a tactical plan for achieving this objective?
increasing efforts over the next year to develop a line of childrens skin protection products
Yui prefers to use a pay system that rewards her employees based on their contribution to the success of the organization. Which type of social orientation does Yui support?
individualism
What is a key disadvantage of licensing agreements as an approach to internationalization?
inflexibility
Woojin is looking at expanding his organization to overseas markets. Part of his consideration on where to open a new facility is based on the ability to move goods in and out of the country. Woojin needs to look carefully at _____.
infrastructure
As the plant manager, Eli is concerned with having enough employees to meet production needs and managing cash flow for a specific product. Which stage of the product life cycle is Eli likely managing?
introduction
Product differentiation, low costs, and the development of new products or services are key to a company's success at which stage of the product life cycle?
introduction
When a firm identifies a weakness within its organization, what can it do to address that weakness?
it can modify its mission
Nita's organization has been doing business in foreign countries for many years, and it has built plants in the local communities overseas. Recently, her company has been nationalized. What does that mean for Nita?
it was taken over by the government
Montazar has formed an agreement with an international firm in which he can use its brand name and technology on his products. In return, he pays the other firm a royalty, based on sales. Which type of arrangement has Montazar entered into?
licensing
In the context of SWOT analysis, which of the following would be considered as an organization's weakness?
low cash reserves
Julius owns a business where he sets a business strategy based on factors such as supply and demand. Which type of economic system is Julius in?
market economy
In which stage of the product life cycle should an organization begin to search for new products or services as part of its strategy?
maturity
international managers ...
need to organize to implement their plans
Which types of events are used in the contingency planning process?
only those that will impact the organization
A cell phone company manager has a goal of boosting the profitability of her store in the next year. Which type of goal has the manager set?
operational
A line manager at a brewery sets a target for the minimum number of beer cartons that must be shipped out by the end of each day. This is an example of a(n) _____.
operational goals
Who is likely responsible for planning cost-cutting programs and inventory control systems?
operational managers
ZeroBreeze Inc. is an outerwear manufacturer that caters to a large customer base. In addition to the high volume of coats and jackets that it manufactures, the company sells light jackets for low prices. Many customers buy ZeroBreeze jackets because they are durable and inexpensive. Which of the following strategies is illustrated in the scenario?
overall cost leadership
Aisha's firm is expanding internationally, and it is determining the benefits of buying an existing firm in the new location, building one, or finding a strategic alliance. Which management function is Aisha's firm using?
planning
What is a standing plan that specifies the organization's general response to a designated problem or situation?
policy
Olesia is managing the diversification of divisions for her organization. She wants to monitor how to engage and manage subsidiaries to maximize corporate performance. What should Olesia use to track this information?
portfolio management techniques
Aviva and her department are planning an elaborate six-month campaign to distribute samples to a wide variety of retail and restaurant outlets for the purpose of increasing brand identity. Which type of single-use plan will Aviva's department use to accomplish this goal?
program
Nils is the head of the marketing department in his organization. Under his guidance, marketing supervisors have developed an operational plan to support the organization's goals. Stage 1 is a three-month national media blast to pump information into the market for the purpose of increasing brand awareness. This media blast has a narrow focus and involves only a few key activities, and it will not be repeated. Which type of single-use plan is the marketing department using at this stage?
project
Anke's organization is constantly looking for new opportunities and new markets for its products. Her firm is highly innovative and not afraid of taking risks. Which type of business-level strategy does Anke's organization use?
prospector
An organization that implements a defender strategy focuses on _____.
protecting its market from new competitors
What can a government do to encourage international trade?
provide tax incentives
In which type of economic system does the government own and operate the companies that conduct business?
public
The market for memory chips for electronic devices is growing at an incredible rate, and Whizz Industries has a small share of that market. According to the BCG matrix, Whizz Industries is a _____.
question mark
Armen runs a profitable jewelry manufacturing company and sells in many international markets. However, one country he sells to has just placed a limit as to how his company can sell in that country. Which of the following will now limit how much Armen can sell?
quota
The best strategies do all of the following except what?
require resource deployment
JJ's Auto Repair is where most residents go for any type of car repair. JJ wants to use his profits to expand the business. He is not sure whether to open a detailing shop on an adjoining property or to open an auto repair shop in the neighboring county. This choice of how to invest in his business would be a decision about _____.
resource deployment
At Montazar's organization, there is a specific start time, and all employees must be at work on time and ready to be at their workstation. This allows for a smooth transition between shifts. Which type of plan narrowly focuses on specific activities such as start times?
rules and regulations
The exact description of how specific activities are to be carried out would be found in which type of plan?
rules and regulations
In order for a tactic to be successful, what must it include?
specific resources and time frames
Avec's department is launching an online ordering system for retail and restaurant accounts. The new system simplifies and clearly outlines the steps to be followed from sales inquiry to final order payment. Which type of standing plan will be used to enhance the ongoing efficiency of the order management process?
standard operating income (SOP)
Darien wants to introduce a new product within the organization's existing product line. Which type of plan should he use to do so?
standard operating procedure (SOP)
When training new salespeople, Dezmon teaches the employees a step-by-step process and the sequence of activities for qualifying prospects and arranging credit. What does Dezmon use to facilitate this process so he is certain the correct steps are followed in the correct order, every time?
standard operating procedure (SOP)
Which type of a standing plan outlines the steps to be followed in particular circumstances?
standard operating procedures (SOP)
When developing tactical plans, what should be included so they can be properly executed?
step by step processes
Rebeya is setting goals with the executive team of her organization. These goals include financial and productivity goals, as well as environmental and sustainability goals. Which type of goals is Rebeya establishing?
strategic
Dezmon, a small parts manufacturer, is looking for quick entry into foreign markets with access to materials available in those markets. Which approach to internationalization would best fit his needs?
strategic alliance
What are the primary inputs for developing tactical goals?
strategic goals
What is a potential downfall when using a SWOT analysis?
subjective assessment
Petra is uncertain where to begin in formulating strategy for her division. What is a good place for her to start?
swot analysis
When devising a new strategy, it is best to start with what?
swot analysis