MQM 220 Exam 1

Which of the following facts, if true, would strengthen your claim that you should assign the scheduling task to the new intern?

The HR manager raves about the intern's abilities to learn quickly and to self-manage.

Based on your experience selecting a supplier for Island Knight cologne, which of the following best represents the general steps of a thoughtful decision-making process?

1) Identify a problem 2) Identify and allocate weights to decision criteria 3) Develop and analyze alternatives 4) Select and implement an alternative 5) Evaluate the effectiveness of the decision

Based on your communications, you have established a list of decision criteria: marginal costs, adoption of synthetic components, estimated shipping costs, top note integrity, and base note integrity. How would you order the importance of the items on the list? The number in parentheses indicates the relative weights for each factor. A higher number indicates that an item is more important, a lower number indicates a factor is less important.

Adoption of synthetic components (10), Base note integrity (8), Top note integrity (6), Estimated marginal costs (4), Estimated shipping costs (2)

In your research on external threats, you read a report that the sales of one of your competitors, Erudite Beans, has been on the rise. In addition, Erudite Beans has also indicated in their PR releases that they are planning to move into the pod coffee market. Based on this information, some team members believe that Erudite Beans is likely to be the primary external threat to Holden Evans' new venture. Which of the following, if true, would be the strongest evidence supporting that position?

An industry insider has already published a glowing review of a pod coffee prototype from Erudite Beans in a local trade publication

You know that it is going to take a lot to persuade upper management to accept your position and the idea of becoming more socially responsible. You have heard talk of scrapping both and plowing more profits back into updating production facilities. What would be the best argument for what you are trying to do at Tri-State?

Arguing that social responsibility aids long-term profitability

After some great discussions with the CEO and Vice Presidents, you now feel that you have a majority of the top management team on board. Although resources are limited, you feel that the most pressing need is to become more sustainable. This is an important issue not just in the milk industry, but worldwide. Success here could lead to important impacts down the road. For now, management wants your recommendation: Which project is most likely to lead Tri-State into becoming more sustainable, but also provide a significant return to Tri-State?

Begin a line of organic products. This could make Tri-State's products healthier and have a big impact on the environment.

Because of your inexperience, you don't know how many alternatives should be considered in your search for a replacement product. Should you search for as many alternatives as you can, research a limited number, or simply choose one?

Choose a limited number of alternatives to consider; for example, the top three alternative suppliers.

Now that you have identified the problem between the CEO and the Brazilian workers as a conflict between individualistic and collectivistic cultures, what do you tell the CEO?

Compared to Americans, Brazilians have a collectivistic culture, where group well-being is important. Reinstating the monthly events should restore goodwill.

Now that you have looked at the company's internal strengths, you turn your attention to its weaknesses. Which of the following would suggest that Holden Evans is not well positioned to enter the pod coffee market?

Country Comfort has been known for decades as the coffee for conservative, "middle-brow" drinkers, who are less likely to be interested in new products.

Bounded Rationality

Decision-making behavior that is rational, but limited (bounded) by an individual's ability to process information

Which of the following, if true, would weaken the claim that you should assign the changes to the intern?

If the intern makes more scheduling mistakes, it might be held against you when you apply for an upcoming promotion.

With a strategic goal that is more realistic, it is time to turn your attention to fine-tuning the expansion plan. Single-use plans document the manner in which strategic goals will be met. Does the plan for the expansion project adequately support the strategic goal of opening all the stores by the anniversary date in 24 months?

No. Some adjustment is required first.

Now that the code of ethics has been revised, how do you intend to measure how well employees are conforming to the code of ethics?

Performance reviews

Three months later, a social audit is performed on Tri-State. The accountant reveals the findings and states: "Tri-State is not living up to its mission to become more environmentally responsible. The plan to switch to nuclear-powered equipment has been rejected by the board of directors as unrealistic." What is the best response?

Spend money on improved safety standards and waste management.

Intuitive Decision Making

Subconscious process of making decisions on the basis of experience and accumulated judgment

Soon after your arrival at Swazzi, the CEO calls you into his office to say that it is the company's goal to open the 10 new stores on Swazzi's 25th anniversary, two years from now. He asks whether you can commit to this overall strategic goal. What is your response?

The goal may unfortunately not be achievable; further review is necessary.

Based on your understanding, what action do you recommend to Luis to resolve his problems at the Austrian plant?

The workers are in a culture with lower power distance. They expect authority to be approachable. Don't push them around so much, and they will be more willing to take direction.

Tri-State has come off a very good year financially and has plans to do more for the community. You discuss with the CEO your plan to do the most good at the lowest cost. The CEO asks, "Why don't we just make a financial donation to a worthy cause?" What is the best response?

Tri-State could simply donate money, but there are additional ways that Tri-State could achieve the same positive impact at a lower cost.

What is the best approach to making Tri-State's production process more environmentally responsible?

Tri-State could stop using pesticides in the grass that is fed to its cows.

Tri-State is selling a high-fat, high-sugar yogurt snack called Lactose Defiant. Which of the following, if true, would argue that selling the product violates Tri-State's code of ethics?

Tri-State is responsible for foreseeable misuses of its products.

Satisficing

Under bounded rationality, managers make satisficing decisions, in which they accept solutions that are "good enough."

Which competitive strategy best utilizes Country Comfort's core competencies (which include a large and efficient network for obtaining and processing quality coffee beans)?

Use Country Comfort's core competencies to pursue a cost leadership strategy in which Country Comfort can deliver better quality at a lower price than competitors.

Country Comfort Coffee's strategic management team is reviewing the company's mission statement—to produce the world's best-tasting coffee—to determine whether or not their new idea to produce pod coffee matches with the company's core values. Does the pod coffee idea fit with Holden Evans' mission statement?

Yes-you think pod coffee fits well with the company's mission statement.

Given this information, do you accept the intern's help with your budget?

You allow the intern to help with the budgeting areas with which he is familiar.

Given the information your intern has provided, will you delegate the scheduling task to him?

You assign the scheduling task to the new intern.

Given what you've just learned about his abilities and experience, how much time should you plan to spend training the intern on how to create the second shift schedule?

You spend an hour conducting a brief training of the basics and encourage the intern to check in with you when he has questions.

Which of the following, if true, would strengthen the claim that you should assign the changes to the intern?

You want to demonstrate your trust in the intern and know that he is eager to learn and correct any mistakes.

Your budget is substantially low on the number of designer hours needed, and actually cannot succeed as it stands. You get an email from your head designer. She seeks reassurance that you will not be overburdening her staff with an unrealistic timeline. What do you tell her?

You will search for solutions to this problem.

After discussing the options, the strategic management team has agreed that the pod coffee idea works well with the company's mission statement and decides that the company should move forward in exploring the pod coffee idea. In order to make sure that the pod coffee idea is a good one, and to see if there are other potential future endeavors to pursue, you must analyze the market situation and formulate a strategy. Your boss asks you to start working on the pod coffee idea. What is your first step?

Your first step is to analyze the organization's strengths, weaknesses, opportunities, and threats.

You share with Jessica your thoughts on what some of the external threats are for the company and express concern that perhaps you shouldn't seek out new products/opportunities at this juncture. Your advisor reminds you that you also need to consider what external opportunities exist that would aid in moving forward with this new venture. Which of the following suggests an opportunity for Country Comfort?

According to review of Erudite Beans' pod coffee, the company is charging more for its new pod product. Customers are not happy about the higher cost and are beginning to hesitate at the price.

The strategic management team thinks entering the pod coffee market is the best choice for the company, but asks you to think about the company's internal strengths and weaknesses before they make a final decision. First you decide to look at the company's strengths. Which two of the following four options suggests that Holden Evans has an advantage in this market?

Because Holden Evans is a large company, it can utilize economies of scale. Because of this, a new product such as pod coffee could compete on price. Country Comfort's ground coffee won the "Coffee of the Year" award from Consumer Reports magazine last year.

How will you determine Tri-State's ethical responsibilities?

Determine Tri-State's core values, and specify goals based on those core values.

Which of the following facts, if true, would weaken your claim that you should assign the scheduling task to the new intern?

Doing the schedule yourself would take much less time than training the intern to do it.

You receive a memo from the Vice President of Procurement responding to your query. He writes: "It will be very important to maintain product continuity. We have a large base of devoted customers. We want to make sure that the quality and key characteristics of Island Knight stay the same through this transition. Talk to Frank, our consulting professional perfumer, for more information about the cologne. Seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. The overall marginal costs and shipping costs are probably somewhat less significant. You may want to talk to Cindy, the product manager for Island Knight, regarding pricing information about the product." What is the best action to take next?

Gather more information by speaking to the professional perfumer and product manager.

While you are waiting on the top management team to present your recommendations to the board of directors, you take a look at updating Tri-State's current code of ethics. In summary, it states that customers and employees should be treated with respect, that all business should be carried out in accordance with all applicable laws, and that any violation of Tri-State's ethical guidelines is cause for disciplinary action.

It covers to ethical responsibilities beyond conforming to law and supporting employees.

Jane, a Tri-State employee, speaks to you privately and says: "I'm concerned about the fact that the barns aren't being kept clean and that the animals aren't being checked for disease and infection. I'm not sure what the rules are about this, but I thought you should know because I think it's a problem." Because your position also covers any instances of whistleblowing within the company, how should you handle this information?

Jane's concerns should be taken seriously and investigated.

Rational Decision Making

Managerial decision making is assumed to be rational—that is, making choices that are consistent and value-maximizing within specified constraints.

A week later your market research arrives from Planning. There is a reason why all those stand-alone stores are vacant. Shoppers have been returning to the malls, especially for the high-end products that Swazzi sells. You request that a copy of the research be sent to the VP of Sales, and he comes to your office for a visit. The VP of Sales states, "From a sales standpoint, our recent data shows that the malls are the place to be. But you have other factors to consider: design and construction costs, rent levels, availability of a workforce, and of course the deadline." Do you recommend acquisition of the stand-alone properties?

No. The sales outlook is too uncertain.

You eventually revise the tactical plan to provide for staggered openings: eight before the anniversary date and two more afterward. Management is less than enthusiastic about the changes initially, but when you present the reasoning behind the various tactical decisions they become supportive. You breathe a sigh of relief. Is your planning work complete?

No. Though plans should be specific, they should also remain flexible. Monitor them frequently.

Finally, you talk to Oscar, the Swedish manager of the plant in Japan. He has been forceful with the Japanese workers (and flirtatious with the female workers), but they do not respect him. He has even tried to bribe the workers to get them to perform. Based on what you have learned so far, what do you think is the problem here?

Oscar's own behavior is at fault. It doesn't align with universal standards of leadership, and also goes against Holden-Evan's company policies.

Low-Context Culture

Relies on explicit communication, more of the information in a message is spelled out and defined

High-Context Culture

Relies on implicit communication and nonverbal cues, uses communication that focuses on underlying context/meaning/tone in the message

You've received your directive from the Vice President of Procurement: Provide a recommendation for a local provider of Island Knight cologne. A reasonably quick recommendation would be to your credit. You have not had much experience working with this particular product line. However, a potential local supplier for this cologne does immediately come to mind. You recall that your roommate from college manages a scented soap factory in northern Ohio that has been running under capacity. What is the best first step for your decision-making process?

Send the VP of Procurement a memo requesting more specific information about any issues with the current provider and what the company is looking for in a vendor.

In the industry and the community, Tri-State is known for its low-cost business strategy, but also as a company that is generous to its employees. After 100 years of successful operation, it now finds itself with a respected brand and a market share leader. Tri-State also prides itself on helping with school lunch programs in disadvantaged school districts. In the past, it has helped organizations like the Salvation Army and Red Cross when natural disasters occur across the United States, but this is on an as-needed basis. How would you classify Tri-State's social actions?

Social Responsiveness

You must decide whether or not to delegate the scheduling task to the new intern. What do you need to know before making the decision?

The intern's experience with schedules and his need for guidance.

Which of the following, if true, would support a decision to accept the help of the intern?

The intern's past experience in HR included creating budgets for the dairy's VP of sales.

You talk to Luis, the Portuguese manager of the Austrian plant. He says the workers are uncooperative and do not carry out the instructions that he conveys to them. He shows you several emails in which they complain that he is too dominating, and that they find it hard to tell what he is thinking. What is your response to this situation?

There may be cultural differences between the Portuguese manager and the Austrian workers. Further analysis is required.

Next, you talk to Gabriela, manager of the plant in Brazil. She objects to the CEO's decision to enforce restrictions on regular celebrations. Retirement parties have been cut from a monthly to a quarterly schedule as a way of saving money. Gabriela has done her best to enforce this new policy, and has harshly reprimanded anyone who questions it, but she complains that she is caught between two conflicting loyalties. What recommendation will you give to the CEO regarding Gabriela's situation?

This is a conflict between and individualistic culture and a collectivistic culture. The CEO needs to take this into account before deciding on a course of action.

Based on the available data, you try to determine the primary cultural reason why Luis seems dominating and unreadable to the Austrian workers, whereas the Austrian workers seem uncooperative and disobedient to Luis.

This is primarily a conflict between a high-context culture and a low-context culture.

With the VP of Human Resources now looking for additional designers, you can turn your attention to the new store locations. Five are still needed. The heads of Planning and Legal assure you that they can acquire the remaining properties on time. There is a catch, however, and it is a big one. Swazzi has always constructed its stores in high-end malls. Planning proposes to save time by using already-existing, vacant, stand-alone suburban buildings. The legal department has five sites that can be under contract within a week, all from a single chain of stores that has gone out of business. If this option is not chosen, a new search for space will need to begin, which will put the target date at risk. Before you decide whether to recommend acquiring the stand-alone properties, is there additional information that would be important to you?

Yes. Quick market research would be important to this decision.

How will you provide feedback to your intern?

You want to help your intern grow and to improve your own skills, so you take the time to meet with the intern. You provide him with feedback on how you think he did with his first schedule, and you ask him to give you feedback on your management of the task.

You have been impressed with the intern's eagerness to learn and want to build trust between him and the line workers, but you are the one responsible for making sure the appropriate changes are made to the schedule. How should the necessary schedule changes be made?

You will ask the intern to join you in talking to the shift workers and then let the shift workers know that the intern will take care of changes.