unit two

what does the BCG matrix evaluate?

- business growth rates - market share

Which questions should you ask when developing ready-made solutions based on past experiences?

- What lessons can you derive from this experience? - What was the solution? - What was the problem?

what business needs are typically supported by artificial intelligence?

- automating business processes - engaging customers and employees - analyzing data

Successful implementation of major decisions requires:

- careful planning - sensitivity to those affected by the decision

In order to implement a particular organizational strategy, managers must determine the right kind of organizational:

- culture - structure

VRIO

Value, Rarity, Imitability, Organization

A ______ culture has an internal focus and values flexibility rather than stability and control

clan

T or F: Evidence-based management includes bragging about new products you have in development.

false

in organizational culture, a hero is a:

person whose accomplishments embody the organization's values

T or F: According to Bossidy and Charan, execution is the central part of any company's strategy.

true

True or false: A decision tree is an analytical tool that can help managers understand the possible consequences of their decisions and to create a plan to reach a goal.

true

True or false: CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.

true

True or false: The availability bias means that your manager may give more weight to your most recent work rather than everything you have done over the course of year

true

Carlos is doing a VRIO analysis for a product his company is thinking about producing. The first question he asks is, "Does this new capability allow us to minimize the threat from the main competitor gaining more market share?" He decides the answer to this question is "yes." Which aspect of the VRIO analysis does this question answer?

value

Kendall is frustrated with her co-worker Jill. She feels that Jill doesn't care that their manager seems to be showing favoritism toward the two other members of their team. Jill just focuses on the work she is supposed to do, which demonstrates her ______.

value orientation

Peterson Electric Inc. has outdated manufacturing facilities. In a SWOT analysis, this would be an example of an organizational ______ of the company.

weakness

enacted values

what people do

espoused values

what people say

what describes how knowledge of decision-making styles affects managers' work?

- it gives managers an understanding of how different people reach different conclusions - it allows managers to better identify personal strengths and weaknesses

Which are characteristics of strategy formulation?

- it is a time consuming process - it is the basis for determining long term goals

true statements regarding market culture:

- it is driven by competition and a strong desire to deliver results - employees are expected to work hard, react fast, and deliver quality work on time - customers, productivity, and profits take precedence over employee development and satisfaction

Pacific Specialty Bikes store gets customized parts for its high-end models from a local manufacturer, Premium Supply. When the manufacturer announced a price increase, the bike store tried to switch to other local manufacturers but learned they that they wouldn't be able to meet delivery schedules. As a result, Pacific Bike chose to pay the higher prices from Premium Supply. Which of Porter's competitive forces does this demonstrate?

Bargaining power of suppliers

What is the best way to develop a ready-made solution?

Identify best practices and turn them into standard operating procedure

Knowledge of decision-making styles can assist managers in many ways except for which one of the following?

It increases the biases of the manager toward their favorite style.

socialization

Process by which employees learn about and adapt to the organization's culture

What are functional strategies used to accomplish?

Putting strategic plans into effect

rituals

Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable

A ______ analysis is an assessment of the strengths, weaknesses, opportunities, and threats affecting the organization.

SWOT

In the devil's advocacy technique, the group assigns one person to do which of the following?

Uncover all possible objections to a plan or an idea.

Samir owns a dental practice, but business has slowed down significantly over the last six months. Which analysis would you recommend to Samir to help him determine whether his dental practice has competitive potential?

VRIO framework

Why do many executives prefer visioning to execution?

Visioning is more exciting than execution.

When would a company use a VRIO analysis?

When deciding whether or not a new product might work in the marketplace

most accurate description of person-organization fit:

a match between an individual's personality and values and those of the organization

VRIO Framework

a way to analyze a firm's competitive potential by asking four questions about value, rarity, imitability, and organization

description that best fits the adhocracy organizational culture:

adaptable, creative, and quick to respond to marketplace changes

a _____ culture values flexibility and has an external focus

adhocracy

the second step of the strategic management process involves ______

assessing the current reality

organizing

begins with the organizational culture and structure, which managers use along with HR practices to implement strategy

Rather than holding formal meetings in the board room, Kevin prefers meeting with his group over lunch at a restaurant. He feels that his group opens up more during these lunches and opinions are openly exchanged. Which style of decision making does Kevin use?

behavioral

Which decision-making style is the most people oriented of the four styles?

behavioral

The process by which a company compares its performance with that of other high-performing organizations is known as ______.

benchmarking

Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?

conceptual

The ______ bias occurs when people seek data to support their point of view and disregard information that does not support it

confirmation

Tyler has never gotten along with his employee Marcus. Although Marcus has been a top performer during his three years with the company, Tyler tends to fixate on the one quarter when Marcus performed poorly. Tyler uses that quarter as an example of Marcus being a "poor fit" with the company. What type of bias is this an example of?

confirmation

Strategic ______ involves monitoring the execution of strategy and taking corrective action when necessary.

control

Once implemented, managers need ________ to keep strategic plans on track.

control systems

Which of the following lists represents the order of levels of strategy from the top of the organization downward?

corporate, business, functional

which level of strategic management focuses on the organization as a whole?

corporate-level

To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and loan characteristics, to predict risk levels.

data analytics

a ____ is a choice made from available alternates

decision

A ________ is a graph of decisions and their possible consequences.

decision tree

A graph of decisions and their possible consequences used to create a plan is known as a(n) ______.

decision tree

Which of Porter's four competitive strategies is involved when a company offers products or services that are of unique or superior value compared to those of competitors and that target a wide market?

differentiation strategy

Jackson likes to hear the facts of a situation and make a quick decision based on these facts. His employees say he likes to focus on the here and now and doesn't consider future repercussions of his decisions. What type of decision-making style does Jackson use?

directive

People with the ______ style of decision making are action oriented and like to focus on facts. They also tend to be autocratic-type managers.

directive

The strategy of moving into new lines of business is called ______.

diversification

According to the competing values framework (CVF), organizational ______ varies along two dimensions

effectiveness

formal statements can help to change an organization's culture by:

embedding the culture in various organizational materials such as the mission, vision, and values statements

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?

employees with ideas

Philosophies, beliefs, and norms that are explicitly stated by the organization reflect its ______ values

espoused

Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so he can decide where he wants to go strategically. Which stage of the strategic management process is Jordan in?

establish the mission, vision, and values statement

what is the third stage of the rational model of decision making?

evaluate alternatives and select a solution

Aligning people with goals, achieving promised results, and integrating strategy with reality are all part of the ______ process.

execution

Espoused values in an organization's culture represent the ______

explicitly stated values and norms the organization prefers

vertical CVF

expresses the extent to which an organization prefers flexibility and discretion versus stability and control

horizontal CVF

expresses the extent to which the organization focuses its attention and efforts inward on internal dynamics and employees versus outward toward its external environment and customers

T or F: A local university is facing some tough decisions, so they are using the decision tree, which contains individuals, websites, and organizations that specialize in handling sensitive and difficult decisions.

false

T or F: The career readiness competencies key to developing your ability to think strategically are resilience and leadership.

false

T or F: The executives of Great Lakes Medical Center are writing a statement that explains their organization's core purpose. Great Lakes Medical Center is at the strategic formulation step in strategic management.

false

T or F: it is common practice today for most small business owners to engage in strategic planning

false

True or false: Soft skills do not have a role in evidence-based decision making.

false

True or false: Value orientation reflects the extent to which a person is unethica

false

A ______ is a vision or projection of the future that is made following a SWOT analysis

forecast

Leonore's Luxury Leather Footwear Corp. conducts a SWOT analysis and determines that at least 57 percent of consumers demand high-end footwear, and, as a result, its sales should increase by 18 percent in the next year. This vision of what could happen is known as a ______.

forecast

______ embed preferred culture by describing organizational philosophy, mission, vision, and values

formal statements

Strategy ______ is the process of choosing among different strategies and altering them to best fit the organization's needs

formulation

When corporate departments such as marketing, human resources, and information technology implement plans of action that support higher-level strategies, they are following a(n) ______ strategy.

functional

Why should you encourage Derin to use groups to make decisions?

groups have a greater pool of knowledge

Jai is a member of a tight-knit team at work that avoids any kind of disagreement. Team members, therefore, avoid considering new ideas. What behavior is Jai's team exhibiting?

groupthink

A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a ______ strategy.

growth

Colin, who is a paralegal for a powerful Manhattan law firm, likes the fast pace of his work and the fact that things are always changing there. Colin can be said to

have a high tolerance for ambiguity

______ are strategies such as "rules of thumb" that simplify decision making

heuristics

the tendency of people to view events as being more predictable than they really are is referred to as ______ bias

hindsight

A person's decision-making style is a combination of how a person perceives something as well as ______.

how they respond to it

the first stage in the rational decision making process involves ______

identifying the problem

In the fourth stage of rational decision making, managers will ______

implement and evaluate the chosen solution

The toughest challenges to overcome with artificial intelligence are

implementation, data issues, and cost

What is the primary cause of failure for strategic initiatives?

improper execution

Porter's five competitive forces form a model for ______ analysis.

industry

what is an advantage of group decision making?

intellectual stimulation

Sam is an experienced firefighter who must act quickly and decisively to do his job. He frequently relies on his ______ to make decisions when there is not time for rational analysis.

intuition

An organization's ______ can pay attention to, measure, and control a number of activities, processes, or outcomes in order to foster a certain culture

leaders

to be successful, strategic planning requires a company to have a _______ orientation

long-term

More positive organizational outcomes are associated with ______ cultures.

market

the type of organizational culture that has a strong external focus and values stability and control is a _______ culture

market

In organizational culture, a story is a:

narrative based on true events which is repeated in order to emphasize a particular value

As a manager, Colin realizes that there is no single formula for making easy decisions. In reality, business decisions he has to make involve uncertainty and risk. This describes the ______ model of decision making

nonrational

Symbols in organizational culture represent ______

objects or actions that convey an organization's most important values to others

the readily apparent symbols and manifestations of an organization's culture are called its ______

observable artifacts

Evidence-based decision relies on ______.

observations about what actually works

What is the recommended step you should take after making a decision?

observe the results, then conduct a post-mortem

Environmental factors that an organization may exploit for competitive advantage are called organizational ______

opportunities

The extent to which your personality and values match the climate and culture in an organization is referred to as person-______ fit

organization

A system of shared beliefs and values that needs to be aligned with the goal of producing efficient, quality work is called ______ culture.

organizational

According to the BCG matrix, stars are

organizations with high growth and high market share which are definite keepers

According to Bossidy and Charan, the first core process of business is ______.

people

The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them.

prescriptive

strategic positioning attempts to achieve sustainable competitive advantage by ______

preserving what is distinctive about a company

Evidence-based management attempts to introduce which factor into the decision-making process?

rationality

Even though not everyone in the meeting agreed with the final decision, the group decided to proceed and replace all existing machine parts in the warehouse. In this situation, the group had ______

reached a consensus

Rosa hired Luis from Cajun College. He was an amazing employee and exceeded all her expectations. The next year, Rosa received an application for a job opening from another graduate from Cajun College. She was very excited to hire another outstanding candidate. Rosa has ________ bias

representativeness

The ______ bias reflects our tendency to generalize from a small sample or single event

representativeness

the "feedback loop" in the strategic-management process involves ____

revising actions if necessary

Organizations can use ______, activities that celebrate important events or achievements for the organization, to change the organization's culture

rites and rituals

realistic job preview (RJP)

show potential employees both the positive and negative aspects of the job

Heuristics are strategies that ______ the process of making decisions

simplify

Heuristics are strategies that ______ the process of making decisions.

simplify

A(n) ______ strategy requires little or no change to a company's product or service.

stability

In which step of the strategic-management process does an organization establish the mission and vision statements?

step one

When employees share a narrative about an actual event that helped create an aspect of the company's culture, they are relying on ______ to symbolize the company's vision and values

stories

A ______ is a narrative about the company's history that is repeated by an organization's members in order to emphasize a particular value

story

Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which ______ emerges

strategic position

Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company

strategic positioning

Which "unwritten" skill did the Harvard Business Review consider essential to being promoted on the job?

strategic thinking

A company's ______ is the large-scale action plan that encompasses the company's vision and is used to create the direction for the business

strategy

The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______.

strengths

The ______ bias is demonstrated when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

sunk cost

Apex Enterprises spent a large amount of money to customize a pumping system it bought many years ago. A supplier is now offering a new pumping system that will save the company money in the long term. However, Apex decides to keep the older system because it has already spent so much money on the older system. What type of bias is this an example of?

sunk-cost

what is another term for hindsight bias?

the "I knew it all along" effect

Eileen had provided the weekly inventory report to the management team every Friday for the past four months, but she wasn't able to generate the report last week because she was attending a seminar learning how to use the new inventory software. Her boss sent her an e-mail reminding her of the importance of the report and asking her to be sure and submit it every Friday. This is an example of ______.

the availability bias

Which of the following is an accurate description of decision making?

the process of identifying and choosing alternative courses of action

Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests?

the rational model

organizational culture

the set of shared, take for granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments; an organizations "personality"

What does business growth rate refer to, as used in the BCG matrix?

the speed of industry growth

basic assumptions

the values so taken for granted over time they become assumptions that guide the organization

When Kendra's manager asked the team to come up with new ideas for attracting people to their trade show booth, Kendra suggested installing a video game in the booth. Which part of the rational decision-making process does Kendra's idea exemplify?

think up alternative solutions

within a SWOT analysis, the letter "T" represents a company's ______

threats

Which of the following is a primary use of AI among U.S. companies?

to gain competitive advantage

One method of changing organizational culture is to provide structured ______ as an in-depth introduction to organizational values

training

In the third step of the strategic management process, managers should

translate the broad mission and vision into a corporate strategy

T or F: In the late 1800s, David began selling books door-to-door. To entice purchases from female customers, he would include perfume samples as thank you gifts. When the perfume became more popular than the books, David shifted the focus of his business that lead to his founding of Avon. This is an example of a manager viewing his organization as an unfinished, changeable prototype that won't be ruined by dangerous new ideas.

true

T or F: Research shows that most managers vary between two or three decision-making styles, and that decision-making styles vary across occupations, job level, and countries.

true

T or F: The owners of a computer repair shop want to better formulate strategies, so they should conduct a SWOT analysis to understand the strengths and weaknesses within their company and the opportunities and threats of the external environment

true

Why do potential employers value the skill of strategic thinking in job candidates?

- strategic thinkers are quick to recognize opportunities - strategic thinkers are more globally minded - strategic thinkers make for more informed employees

What are the core processes of business identified by Bossidy and Charan?

- strategy - operations - people

examples of big data:

- surveillance data - data in corporate databases - web browsing data trails - social network communications

What are Porter's four competitive strategies?

1. cost-leadership 2. differentiation 3. cost-focus 4. focused-differentiation

steps of the rational model of decision making:

1. identify the problem or opportunity 2. think of alternative solutions 3. evaluate alternatives and select a solution 4. implement and evaluate the solution chosen

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?

1. is it ultimately effective? 2. is it feasible? 3. is it ethical?

When making decisions for her department, Ellie tends to take a long time because she takes into consideration a large amount of information. What type of decision-making style does Ellie demonstrate?

analytical

An online retailer uses complex data-mining software to evaluate the preferences and buying habits of its customers and makes decisions based on these findings. This is an example of the use of ______ in the decision-making process.

analytics

A consensus is reached when all members are able to express their opinions ______

and reach agreement to support the final decision

what is the most common type of AI used today?

automated business processes

Stores of data that are so large or complex that it is difficult to process them using traditional database management applications are known as ______.

big data

Michelle met with her five employees around a table and asked each of them to take five minutes to write down what they personally thought their new facility should include. She then collected the information and wrote it on the white board for all of them to view and decide upon. Michelle is using the ______ technique.

brainstorming

what best describes the decisions made by a person with an analytical style?

carefully considers lots of information and alternatives

Rites and rituals, which are activities and ______ used to celebrate important organizational events or achievements, can be leveraged in the process of culture change

ceremonies

Strategic thinkers should have a knowledge base shaped like the letter "T," where the top of the "T" represents breadth of knowledge and the stem of the "T" represents ______.

depth of expertise

During meetings, Stacy likes to challenge new ideas, even those that she agrees with, in order to make sure that her team has considered every angle. What role is Stacy playing?

devil's advocate

Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important?

people

A manager who hires all applicants who have graduated from a certain college because a particularly good employee came from that same college is an example of ______

representativeness bias

Cornelius owns Grand Games, a high-end store that retails games and toys that are handcrafted and carefully selected. Cornelius targets customers who value artisanal work, such as backgammon sets made from reclaimed lumber by local crafters. There are several stores in the area that sell mass-made toys and games that are much cheaper. To compete, Cornelius offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10% discount on their next purchase. Cornelius also takes custom orders for game pieces that his customers want, such as 12-sided dice or newly invented games. All of Cornelius's activities are aimed at giving Grand Games a sustainable competitive advantage through

strategic positioning

When a company is readily able to switch to another company in order to get the raw materials it needs to make products, Porter would say that the bargaining power of ______ goes down.

suppliers

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.

sustainable

Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competitors can duplicate. It can be said that Luxury Linens has a(n) ______.

sustainable competitive advantage

In terms of organizational culture, a ______ is an artifact, act, quality, or event that conveys an organization's most important values to others

symbol

the sources from which strategic position emerges are having:

- broad needs and few customers - broad needs and many customers - few needs and many customers

Which steps are recommended for establishing a process or method for making decisions?

- consider whether the decision is consistent with your values - conduct a cost benefit analysis - analyze the situation

Which Porter's competitive strategies are appropriate when addressing a narrow market?

- cost focus - focused differentiation

what career readiness competencies relate to evidence based decision making?

- critical thinking and problem solving - information technology application - computational thinking

what are the top challenges associated with AI?

- data issues - implementation - cost

People with a conceptual decision-making style are likely to:

- find creative solutions - rely on intuition - take risks

what drives an organizational culture:

- founder's values - industry and business environment - national culture - organization's vision and strategy - behavior and leaders

outcomes associated with various types of organizational culture:

- higher customer satisfaction in clan and market cultures - higher financial performance in market and hierarchy cultures - higher market share in clan and market cultures - more positive organizational outcomes in market cultures

According to Bryan Barry, which of the following help a manager keep a strategic plan on track?

- keep it simple - engage people - stay focused - keep moving

What are common results of groupthink?

- loss of new ideas - failure to consider new information

culture operates at three levels:

- observable artifacts - espoused values - basic underlying assumptions

A recent survey of U.S. companies showed that most companies use AI to do which of the following?

- optimize internal processes - make more effective decisions - enhance current offerings

factors that must work in concert to produce successful strategic execution:

- organizational structure - HR practices - organizational culture

examples of what can function as the first stage in rational decision making by managers:

- poor product quality - customer complaints - sales shortfalls

examples of business analytics:

- portfolio analysis - times series forecast

characteristics of clan culture:

- promotes a feeling on family - encourages collaboration among employees

observable artifacts in an organization:

- rituals - decorations - awards

what represents learning related tools that can be leveraged to change an organizations culture:

- role modeling - coaching - training

Organizations wishing to change their culture may alter their physical layout and design in order to:

- send a strong message about the culture - encourage employee productivity

Some of the strongest ways to embed organizational culture include which two:

- status symbols - rewards

reasons for the increase in ethical violations among business leaders in the 21st century:

- the 24/7 news cycle places more scrutiny on unethical behaviors - digital communications are more susceptible to hackers and whistleblowers - globalization allows businesses to operate in regions where ethical risks are greater

What are three characteristics that affect decision making by a group?

- the knowledge of group members - the efficiency of the group - the size of the group

Which of the following represent competitive forces used in Porter's model for industry analysis?

- threat of substitute products or services - threats of new entrants - bargaining power of suppliers - rivalry among competitors

What are the goals of attending industry conferences before or while working in a certain industry?

- to make industry contacts - to learn about the specific industry

Decision-making styles vary along which two dimensions?

- value orientation - tolerance for ambiguity

T orF: Flora's Fruit + Fresh is one of several local stores where customers can purchase locally grown fruits and vegetables. Each week, Flora also offers workshops in her store on topics such as canning, healthy eating, and growing a garden, which no other local store does. By offering these unique workshops, Flora is engaging in strategic positioning.

true