Mngt 3100 exam 2
In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. What must you do to ensure the party is implemented successfully?
Be sure the people involved get the information they need when they need it
What level: we seek to expand by opening 150 new restaurant locations in the next 10 years
Level 3
What level: we seek to improve efficiency by implementing a new computerized payment system
Level 4
What level of management: we seek to improve efficiency by implementing a new computerized payment system
Lower
Programmed/nonprogrammed: In 2020, Facebook announced plans to introduce a mobile gaming app designed for live gameplay. The app took several years to develop and was tested with users for 18 months before its release. The decision Facebook made to develop a mobile gaming app is a:
Nonprogrammed decision
One of your company's major competitors recently filed for bankruptcy, which has caused many of its customers to look for a new supplier. This presents your company with an
Organizational opportunity
Which of the following factors are relevant for successfully executing tactical plans?
- the manager needs to evaluate every possible course of action in light of the goal - the manager must monitor ongoing activities derived from the plan to be sure the results are as expected - each decision maker must have the information and resources necessary for getting the job done
Developing/executing: determine human resource needs
Developing
Developing/executing: determine human resources
Developing
Developing/executing: identify human resource constraints
Developing
Developing/executing: identify the time constraints involved
Developing
Developing/executing: specify the resources available
Developing
Developing/executing: understand strategic plans
Developing
Sell business in
Dogs
If the company has decided to use Miles and Snow's prospector strategy, which of the following actions would best support this strategy?
Adopt a flat, decentralized organization design
In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. What must you do to ensure the party is implemented successfully?
Allocate the necessary time for employees who will help set up the party
A company's ________________ serves as an organizational plan, outlining how the company will create a competitive advantage
Strategy
The operational plans and goals guide
The daily activities
Business/corporate: a company's managers ask, "does it make sense for our vacuum-cleaner company to buy a company tha manufactures space heaters?"
Corporate-level strategy
Business/corporate: cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company has acquired in the last year and determined how much money each acquisition was making for cisco. They then decided which companies to keep and which to spin off
Corporate-level strategy
After a company has analyzed the environments in which it operates and develops a specific plan of action, it becomes time for ____________________________________
Strategy implementation
In the planning process, the mission statement sets
The overall purpose of the business
The tactical goals and plans link
The strategy with the operations
Which of the following factors should be classified as a strength for the team?
The team's starting pitchers are exceptionally strong and young and can potentially keep the current champions at the top of the league for years to come
which list of steps reflects the best order for the planning process?
Understand the environment Establish the organization's mission Set strategic goals Design strategic plans Set tactical goals Design tactical plans Set operational goals Design operational plans
To overcome the barrier to success implied by the goal above, what should Enrique do?
Understand the purpose of goals
Take profits in
cash cows
Low relative market share, high market growth rate
question marks
invest cautiously in
question marks
A friend asked if you would like to open a deli near your school's campus, where there are very few inexpensive places to eat. Although a deli probably would be successful, you declined; even the possibility of losing money made you too nervous due to your low ________________
Risk propensity
You are developing a plan to ensure that employees in your department are dressed appropriately when clients are on-site. What type of plan should you create?
Rule
What type of plan is this: board of directors, top management, long-range, sources of competitive advantage focus , and general score
Strategic
developing/executing: monitor activities
Executing
What level: tactical
2
What level: operational
3
What level of management: we seek to operate a chain of restaurants that prepares high-quality food on a timely basis for a reasonable price
Board of directors
A program plan is an example of a
single-use plan
Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the following are advantages of group decision making? Check all that apply.
- acceptance of final decision is more likely - better decisions usually result
Decision making steps
1. Define the decision 2. Identify the alternatives 3. Evaluate the alternatives 4. Select the best alternative 5. Implement the chosen alternative 6. Evaluate the results
Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. UNIQLO offers clothing made with Heattech, a fabric that absorbs moisture and retains heat from the body. The clothing is very lightweight, while still keeping people warm. No other store carries Heattech fabric. Heattech clothes are associated with __________________________ strategy for UNIQLO.
A differentiation
Nordstrom, Bergdorf Goodman, and Bloomingdale's all sell high-end clothing. People are willing to pay high prices because of the clothing styles and the customer service received. These stores use
A differentiation strategy
Since its founding in 2002, Crocs has made shoes. It makes shoes for women, men, and children and for casual and work settings, but it doesn't make anything except footwear. Crocs is using ____________________________ strategy.
A single-product
Astute managers can use simple tactics to minimize the potential for groupthink to influence team decision outcomes. Which of the following tactics is best for minimizing the chance for groupthink to occur?
Assign at least one member to play the role of devil's advocate
Jack wanted to buy the highest-performance Tesla Model S. However, because the car costs over $100,000 and Jack is a student with only a part-time job, principles of ________________ led him to test drive only cars within his realistic price range.
Bounded rationality
Business/corporate: A company's managers ask, "Should we increase the size of our Bluetooth wireless speaker and sell it at a higher cost?"
Business
If the company uses Porter's differentiation strategy, what should operations emphasize?
Ensuring that the products customers want are available
After you review the six steps with Eric, he asks for an example of how to define the decision as he decides on a college major. Which of the following is the correct example to give to Eric?
Eric would articulate the specific issue to be decided: choosing a major so that his course schedule will include the necessary upper-division classes.
When managers approach the execution of a tactical plan, what kinds of activities are involved?
Evaluating the course of action Distributing resources Evaluating results
Developing/executing: assess outcomes
Executing
Developing/executing: communicate throughout process
Executing
Developing/executing: monitor activities
Executing
Enrique wants every member of his team to commit to learning one new skill each quarter. Enrique will thank everyone for their commitment to the team with a quarterly luncheon. Which major barrier to goal setting is most likely to affect whether the members of his team achieve this goal?
Improper reward system
Enrique wants to set a goal for his team to generate 50% more in revenues than it did last quarter. Which major barrier to goal setting is most relevant for him to consider given what you know about this team?
Inappropriate goals
Nolan is the director of the Lycarta Society, an organization dedicated to identifying art forgeries throughout the world. Nolan has been doing his job for almost 20 years, and he is a particular expert in the works of Jackson Pollock, an American painter. Last week, Nolan simply glanced at a painting, and he was able to instantly say that it had not been created by Pollock, with virtually no information other than a quick visual scan of the piece.
Intuition
Given what you know about twitter's plans, which one of twitter's goals listed is a tactical goal?
Launch special #NFL timeline: users can see NFL-related tweets from people in their network, along with relevant tweets from teams, players, coaches, press, fans, and celebrities
What level: we seek to operate a chain of restaurants that prepares high-quality food on a timely basis for a reasonable price
Level 1
Programmed/nonprogrammed: Every morning when you walk into Starbucks, you order the same thing: a venti green tea Frappuccino with extra whipped cream. You can't drink anything else at Starbucks because you don't like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. Your decision about what to order at Starbucks today is a:
Programmed decision
Programmed/nonprogrammed: Last spring, your spouse surprised you with a puppy (named Loki after the Norse god of mischief). Fortunately, the puppy gets along well with your 17 cats. The decision you make every day about whether to feed Loki is a:
Programmed decision
Goals serve 4 purposes for organizations
Providing guidance, promoting good planning, motivating employees, and enhancing evaluation and control
UNIQLO tries to monitor its competitors' actions, but notices that one of these competitors seems to shift strategies often and does not anticipate trends in the environment. Which type of strategy does the competitor appear to have?
Reactor
Enrique wants to encourage his team members to accomplish the goal of learning a new skill each quarter. What should Enrique do?
Reward those who accomplish the goal
In the planning process, what is the role of strategic goals and plans?
Sets company direction
Given all of the factors listed in the preceding question, what strategy would make the most sense for the championship team as it prepares for the upcoming season?
Sign a free-agent outfielder to bolster the current roster and sign the younger pitchers to long-term contracts
The corporation started as a manufacturer and distributor of gourmet candies, and it has worldwide brand recognition for this product. It has acquired a number of other businesses over the years, some in the food industry and some in different industries, and all have been less successful than hoped. The board of directors has informed you that key shareholders have little appetite for continued business failures. Based on this information, which corporate-level strategy would you lean toward?
Single-product strategy
Single-use plan/standing plan: a plan to merge two companies
Single-use plan
You are developing a plan for your department to use when replenishing supplies needed to accomplish ongoing activities. What type of plan should you create?
Standard Operating Procedure
Invest heavily in
Star
low relative market share and low market growth rate
dogs
ZombieSmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicate that ZombieSmith is using a(n)_______________ to gain a competitive advantage.
Focus strategy
You've decided to give the department with the most participation in the united way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?
Goals motivate employees
UNIQLO anticipates that demand will be very high for its patent-protected clothing line, particularly given climate concerns in its core markets. With nearly US $20 billion worldwide, which stage of the product life cycle is the company in?
Growth
What level: we seek to provide a 14% or greater annualized return of investment for our shareholders
Level 2
During the first 10 months of 2014, spending-per-customer declined at UNIQLO's stores in Japan. As a result, beginning in October 2014, top management changed the focus of the company's marketing. Instead of emphasizing low prices, the company began highlighting its use of high-quality materials to restimulate interest in its current clothing lines, and it continued to look at aggressively expanding the number stores in various countries. Which type of strategy was UNIQLO using?
Analyzer
Alex was asked to analyze businesses by classifying them as stars, question marks, cash cows, or dogs. He was most likely using the ___________________, which helps managers determine which companies belong in their portfolios.
BCG Matrix
Business/corporate: at apple, managers ask, "should our next ipad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an ipad?"
Business-level strategy
High relative market share, low market growth rate
Cash cow
To overcome the barrier to success implied by the goal above, what should enrique do?
Communicate why the goal is appropriate
When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify:
Company strengths and weaknesses
Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were considering whether Theo Chocolate should branch out and start selling other items in addition to its chocolates, such as locally made baked goods. This is a _________________ strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply.
Corporate-level - identify the profitability profile for different types of products - evaluate the resources the company has available to allocate between the chocolate industry and the baked goods industry - determine what kinds of industries The Chocolate should be in
Business/corporate: google managers ask, "which company should we acquire next to access new technologies and customers?"
Corporate-level strategy
Programmed/nonprogrammed: Congratulations! You were accepted at four colleges and now must decide which to attend. Each school is located in a different part of the country, has different tuition costs, and offers some degrees that are unavailable at the other schools. Your decision about which school to choose is a:
Non-programmed decision
What type of plan is this: middle-lower managers, short range, departmental activities focus, and specific and concrete scope
Operational
Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. Selling a large quantity of relatively few products can help to increase economies of scale. This tactic is associated with ___________________________
Overall cost leadership
Walmart, Dollar Tree, and 99¢ Only Stores operate under a(n)
Overall cost leadership strategy
After you review the six steps with Paula, she asks for an example of how to identify alternatives as she decides whether Gingerforge should start manufacturing patio furniture. Which of the following is the correct example to give to Paula?
Paula would make a list of actions Gingerforge might take, such as leaving its product line as it is, adding patio furniture, or deciding to enter some other niche market (such as manufacturing wrought-iron bird cages).
A ____________________________ technique used by Proctor & Gamble is meant to minimize risk by selling a large number of diverse products.
Portfolio management
Mara and her sorority sisters decided it would be fun to dress in matching outfits for an upcoming event. The sorority sisters met at a clothing boutique, where they began pulling items off the racks and got a variety of reactions. Mara showed everyone a short-sleeve Michael Kors dress with a scoop neckline and A-line silhouette. Every sorority sister thought it looked good. There happened to be enough in stock and, better yet, it was on sale! They decided that everyone would buy the Michael Kors dress.
Satisficing
Policy is an example of a
Standing plan
Single-use plan/standing plan: a policy that states that all returns will be accepted, regardless of where they were purchased
Standing plan
Single-use plan/standing plan: directions on how to handle employee-relations issues
Standing plan
What type of plan: a rule that prohibits the use of company computers for personal communications
Standing plan
What type of plan: procedures for responding to customer complaints
Standing plan
High relative market share, high market growth rate
Star
Imagine that your friend Debbie has applied to attend universities only located in New York, which means she will encounter cold weather and snow in the winter. Assuming she is accepted at those schools, Debbie will choose a school with a ________________ regarding the weather she can expect.
State of certainty
When referring to a SWOT analysis, the letter T stands for ____________, and it refers to the factors that are _______________ to the organization
Threats; external
What level of management: we seek to provide a 14% or greater annualized return of investment for our shareholders
Top
What level: strategic
1
Business/corporate: Managers at Annie's, a company that makes organic foods, are considering the best ways for the company to position its products after a great IPO. They decide on a focus strategy, targeting sales at people who care about what's in their food.
Business-level strategy
Business/corporate: Managers for IBM's SPSS statistics software meet to determine how they will market the product in the upcoming year. Their decision is to show potential clients how effective SPSS is at analyzing extremely large data sets, and how the "Direct Marketing" part of the program helps identify which customers will respond to advertisements.
Business-level strategy
Contingency planning
Difficult for the very reason we need contingency plans; that is, forecasting the future is impossible
Business/corporate: last week, senior managers in the post-it note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, post-it notes will continue to be widely sold at a premium price. The company will continue to develop new post-it products to attract new buyers
Business-level strategy
Business/corporate: pepsico makes and sells large numbers of products, from pepsi cola to lay's potato chips to cap'n crunch cereal. Last tuesday, pepsico analyzed the sales of near east rice pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money pepsico has in its coffers, managers decided to continue selling near east rice pilaf and advertise it more heavily
Business-level strategy
Business/corporate: the manufacturer of chobani yogurt decided to open a flagship store in soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing yogurt for 7 years, the company never tried to run a restaurant before
Corporate-level strategy
Tesco managers sold their Fresh & Easy U.S. grocery-store chain after looking at the returns from that division and comparing them with returns from Tesco's other divisions around the world. The analysis led managers to decide that the market couldn't deliver acceptable returns for the company, which is based in England.
Corporate-level strategy
As a member of a team of subject matter experts in the management of engineering projects, you need to organize discussions in a way that facilitates participation by all the experts. Which team decision-making approach will be best in ensuring input from the team experts?
Delphi group technique
Lana is a marketing manager for Prika Software. Prika makes a product called "App Finder," which helps people find the apps they want to have on their cell phones. Last year, Prika sold only 4,000 copies of App Finder at $5.00 each, and projections for this year aren't much higher. This year, Lana wants to spend $75,000 to create a new home page for the product, because her company has already spent $100,000 in development.
Excalation
Developing/executing: distribute resources to responsible parties
Executing
Developing/executing: obtain information needed
Executing
developing/executing: assess outcomes
Executing
Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were deciding on a pricing strategy for the company's chocolate bars but no other company products. This is a _______________ strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply.
Business-level - evaluate what resources the company has to devote to manufacturing and selling chocolate bars - evaluate the intensity of competition and competitors' pricing of candies - choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus
Lorenzo was asked to analyze businesses by classifying them as winners, losers, question marks, average businesses, and profit producers. He was most likely using the
GE Business Screen
Though UNIQLO has typically been in an environment that allows for only moderate innovation, the leadership team would like the company to be more growth-oriented and take more risks. Which strategy should UNIQLO develop?
Prospector
business/corporate: Never previously known as a computer hardware company, Microsoft decides to enter the tablet manufacturing business, producing the Microsoft Surface.
Corporate-level strategy
UNIQLO has had strong demand for its products and it entered the growth stage quickly. Which of the following challenges is most common during this stage?
Managing inventories
After you review the six steps with Matt, he asks for an example of how to evaluate alternatives as he decides whether VoxSigns should lay off employees. Which of the following is the correct example to give to Matt?
Matt would assess each option in terms of feasibility, satisfactoriness, and consequences; he will want to consider if the company is capable of implementing each option, as well as the resulting financial returns and other consequences (such as lower employee moral for remaining employees).
What level of management: we seek to expand by opening restaurants along every major highway in the region
Middle
While Paula likes the structure provided by the rational decision-making process, you caution her that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations? Check all that apply.
- managers cannot always obtain complete and accurate information - managers do not always evaluate situations rationally - managers are limited by their values and unconscious beliefs
Single-use plan/standing plan: the entry on your to-do list to "buy a cake for Susan's going away party"
Single-use plan
While Matt likes the structure provided by the rational decision-making process, you caution him that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations? Check all that apply.
- managers may lack the resources to explore creative solutions - managers do not always evaluate situations logically - managers often make decisions that are not based on facts and logic
While Eric likes the structure provided by the rational decision-making process, you caution him that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations? Check all that apply.
- managers may lack time to consider new and previously untested alternatives - managers do not always make decisions based on the company's best interest - managers cannot always assess all relevant information before making a decision
What type of plan: a plan for designing a new computer application
Single-use plan
What factors can help to ensure a successful execution of a tactical plan?
- each decision maker must have the information and resources necessary for getting the job done - the manager must monitor ongoing activities derived from the plan to be sure the results are as expected - the manager needs to evaluate every possible course of action in light of the goal
Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were deciding on a pricing strategy for the company's chocolate bars but no other company products. This is abusiness-level Correct strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply.
- evaluate the intensity of competition and competitors' pricing of candles - choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus - evaluate what resources the company has to devote to manufacturing and selling chocolate bars
In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned to party to mark the end of the fundraising initiative. What must you do to ensure the party is developed successfully?
Include the party in the planning document for the United Way initiative
Enrique knows that he will need to have documentation in order to measure results. Therefore, he plans to require all team members to log their time at work in 15-minute increments. Because this is a new procedure, you want to help Enrique anticipate possible concerns. Which major barrier to goal setting is most relevant for him to consider given what you know about this plan?
Resistance to change
What type of plan: a schedule for completing the redesign of an organization's gardens and landscape
Single-use plan
A fast-food business modifies its menu substantially in the different countries where it opens restaurants, as well as accommodating different expectations regarding customer service. This company probably uses a ______________ strategy.
Multidomestic
Having successfully led a global diversification strategy for your organization, you have been asked to be the keynote speaker at a conference on globalization. Which of the following are advantages of diversifying internationally that you might cite in your address? Check all that apply.
- companies may be able to use one facility to serve a larger number of customers - after gaming entry to a country's market, companies may be able to leverage their presence in the country to expand their product offerings there - companies may be able to locate their facilities closer to customer of to raw materials
Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. If UNIQLO decided to direct its marketing toward people between the ages of 16 and 30, it would be using _____________ strategy
A focus
Given that UNIQLO is in the growth stage, with demand high and little competition, which of the following would be appropriate activities to include in the company's short-term plan?
Research whether supplies will be sufficient to provide necessary inputs to the manufacturing plants
