BUSAD 250 Final Exam Study Guide

Why should businesses avoid situations that lead to moral hazards?

Because moral hazards may lead to a business taking on more risk than it should.

____________________ refers to a stage of brand loyalty in which buyers will not accept a substitute for a product.

Brand insistence

____________________ is used to increase product recognition and recall, communicate information, and enhance overall product value.

Branding

____________________ skills refer to a manager's ability to identify the variables in a problem and understand their relationship to the problem's solution.

Conceptual

Changes in a city's zoning guidelines that would permit commercial development in areas previously zoned as residential would be an example of forces within the ____________________ dimension of the business environment.

economic

Which of the following characteristics is associated with effective leader performance?

emotional intelligence

Fortune magazine recently identified Apple, Inc. as the most valuable business brand with an estimated value of $145 billion. The dollar value associated with a brand represents the brand's ____________________.

equity

The role of ____________________ is to balance the short term and long term demands for funds, evaluate risk and reward, and balance the use of external and internal sources of funds needed by the business.

financial management

All of the following activities can contribute to improving the ethical climate within a business EXCEPT?

Requiring employees to compete for scarce resources to meet their goals.

Which of the following statements about managers and the management process is TRUE?

According to one study, 33% of new managers fail within the first 18 months.

Why is it important for a business to accurately classify the products and services it provides?

All of the following: Product classification influences the pricing of products and services; Choice of distribution channels and intermediaries is affected by product category; Promotion strategies are often consistent with the type of product.

What is the goal of social media in the new Social Communication Model of customer communications?

All of the following: Reduce costs of promotion and communication; Turn passive audiences into active participants in the communication process; Build favorable corporate images and foster positive relations with stakeholders.

Which of the following statements about the product life cycle is FALSE?

All products spend an equal amount of time in each stage of the life cycle.

Which type of industrial or organizational product is usually consumed within one year or less?

An expense item.

At the beginning of 2016 you purchase additional capacity and automation for your electronic sensor company within the simulation. When will these plant improvements be available for use?

At the beginning of 2017.

The automobile industry has outsourced the manufacturing of many component parts, like airbag systems and ignition systems, to other companies around the globe in order to focus more on the design and assembly of new cars. Why is this practice risky?

Automakers can lose control over production schedules and quality due to outsourcing.

____________________ skills refer to a manager's ability to identify a problem, analyze it, evaluate the alternatives, choose an appropriate solution, implement it, and review the results.

Decision-making

Julia is a product manager for an automobile manufacturing firm. She delegates part of her duties to some of the workers who she supervises and involves them when key decisions need to be made. She appreciates new ideas and encourages suggestions from her staff. Julia is an example of which type of leadership?

Democratic

____________________ are the principles and standards of moral behavior that are accepted by society as right versus wrong.

Ethics

Which of the following factors is NOT recommended as an appropriate way to resolve an ethical dilemma?

Find someone to blame.

____________________ refers to the planning, movement, and flow of goods and related information throughout the supply chain.

Logistics

Which of the following statements about management and leadership is TRUE?

Managers provide structure and leaders facilitate change.

Which of the following statements is associated with the marketing trend of greater concern for ethics and etiquette in the practice of marketing?

More attention is being given to transparency and openness in marketing activities.

Why are the informal norms that develop as people work together in teams an important influence on team performance?

Norms define the acceptable team behaviors.

____________________ refers to overseeing all of the activities involved in producing goods and services.

Operations management

____________________ is associated with establishing a product's identity through protection, ease of display, and by supporting product differentiation.

Packaging

____________________ is made difficult by the presence of many options, multiple competing goals, and the influence of external stakeholders.

Problem definition

The positioning of an electronic sensor on the perceptual map is determined by what factors?

Product size and performance

____________________ is a quality of performing at a high level and conducting yourself with purpose and pride.

Professionalism

____________________ is a useful way to identify shifts in business activities over time and should take into account any extraordinary or unusual events that affected business performance.

Risk analysis

____________________ of factors of production creates a need for businesses to compete for resources and make trade-offs that result in opportunity costs.

Scarcity

Dewey Gottbux is the Chief Financial Officer of Schadie Manufacturing, Inc. Dewey has noticed that over the past 5 years the Weighted Average Cost of Capital (WACC) at his business has increased by 10%. What does this increase indicate?

Schadie Manufacturing, Inc. has increased its risk of credit default.

____________________ create value by performing activities that deliver benefit to the customer, such as automative repair, banking, health care, and tax preparation.

Service businesses

____________________ refers to the process of examining a company's current marketing situation, accessing opportunities and setting objectives, and then developing a strategy to reach those objectives.

Strategic marketing planning

____________________ may develop when there is competition for scarce resources, disagreement over responsibilities, or when team members pursue different goals.

Team conflict

Which of the following examples represents a technical skill that managers must have in order to be effective?

The ability to operate a flexible machining center that makes auto parts.

Customer needs and expectations, product support requirements, and market segmentation characteristics must be considered when making what kind of decisions?

distribution channel decisions

Which of the following options would be considered a macroeconomic issue?

The effects of an increase in the Federal Reserve's oversight interest rate on the domestic economy.

Which of the following statements about the marketing concept is TRUE?

The marketing concept promotes a customer centered perspective throughout the entire organization.

How do agents and brokers differ from other wholesale businesses?

Unlike wholesalers, brokers and agents do not take ownership of products.

Which of the following questions will prescriptive analytics help a business answer?

What is the best way to ship products to distributors from our factories at the lowest possible cost?

Working capital, the current ratio, and the quick ration are all indicators of ____________________.

a business's liquidity

If the manager of a golf course gives a landscaping contract to his brother-in-law's company even though another company was willing to do the same work for a lower price the manger would be involved in ____________________.

a conflict of interest

The ____________________ is a combination of marketing intermediaries and channels that producers use to reach their target customers.

distribution mix

Accuracy, consistency, timeliness, and objectivity are the essential characteristics of effective ____________________.

accounting information

Protective cases, earphones, scratch-resistant covers, and mobile chargers for cell phones that enhance the value of the core product are examples of ____________________ products.

augmented

A(n) ____________________ leader is likely to determine what the goals of followers will be, when they need to be achieved, and how to achieve them with little or no input from the group.

autocratic

What business process involves the integration of data, information technology, statistics, quantitative methods, mathematical and computer based models to make high quality, fact-based decisions?

business analytics

Business professionals must understand the ____________________ because it is the primary source of threats, opportunities, and uncertainty that businesses face.

business environment

American Airlines, United Airlines, and Delta Airlines generate revenue by operating regional air carriers that transport passengers from smaller airports to larger hub airports where passengers make connecting flights to their final destinations. This spoke and hub approach is an example of a ____________________.

business model

The advantages of using ____________________ in businesses include potential for higher quality decisions, increased diversity of perspectives, and improved flexibility and responsiveness to change.

teams

Break-even analysis is a method of determining prices by ____________________.

calculating the minimum level of revenue needed to meet total costs

In order for a team to perform effectively it must have an adequate level of ____________________ which represents the bond that exists between the team members.

cohesiveness

A business can create a ____________________ when it uses the factors of production in ways that add more value, generate higher profits, and make it more attractive to customers than its competitors.

competitive advantage

Convenience goods, shopping goods, and specialty goods are all examples of ____________________ products.

consumer

The accounting function contributes to business success by ____________________ for decision making purposes.

converting transactions-related business data into functional information

The success of a business depends on its ability to make a profit by efficiently and effectively ____________________.

coordinating and integrating its business functions

The single most important idea that a company hopes to communicate to its target audience about its product or service should be clearly stated in its ____________________.

core message

A large discount retail store sets prices for clothing by calculating the price needed to break even and increases the break even price by 25% to provide a profit. What pricing strategy is the company using?

cost-based pricing

High performing companies are 3 times more likely to use business analytics to ____________________ than lower performing businesses.

create a competitive advantage

In today's customer relationship oriented business environment successful performance requires that the marketing function ____________________.

create long-term mutually satisfying exchanges between the business and its customers

After being identified as a company that used sweat-shop labor and unsafe working conditions to produce low-cost running shoes, LB Schadle, Inc. reduced its employees working hours, allowed them to take more work-breaks, installed newer, safer machinery and added a fire prevention system in the factory to avoid further damages to its reputation. This is an example of the ____________________ form of Corporate Social Responsibility.

defensive

A manager at Gramco, Inc. wants to know how much revenue and profit his company earned in the previous fiscal year. Which of the following types of business analytics would provide the manager with the desired information?

descriptive analytics

In today's team-oriented business world being a professional involves being a good team player. All of the following are characteristics of being a good team player EXCEPT ____________________.

focusing more on personal goals than team goals

Teams with a small number of members who are very similar and highly cohesive may be likely to experience ____________________ which reduces decision making quality.

groupthink

What should you do to increase your customer's awareness of improvements in the design of your electronic sensors within the simulation?

increase your promotion budget by $1 million.

Effective ____________________ should provide the customer with the same compelling message about a product regardless of the media mix or the way the product comes to the customer's attention. The result is a unified image of the company in the public's mind.

integrated marketing communication

Managers make use of their ____________________ skills when they communicate, negotiate, or resolve conflicts among members of their departments.

interpersonal

A business's financial plan includes consideration of its strategic plan, the condition of the economy, and ____________________ to determine how much money it will have and how much external funding it will need over a given period of time.

its income and cash flow statements

The capital structure of a business refers to ____________________.

its use of equity and debt for financing activities

The ability to effectively manage productivity is an important contribution made by production and operations management. ____________________, which maximize productivity by reducing waste and delays, are at the heart of many productivity improvement efforts.

lean systems

Our current understanding of the consumer purchasing process indicates that individuals ____________________.

make many of their purchases based on habit rather than logic

Concern about the safety of the food we eat has caused customers to avoid buying some food products. In response, packaged food producers like Kraft and restaurants like Chipotle have announced plans to eliminate the use of artificially colored or genetically modified ingredients in their products. These changes in customer tastes and buying behaviors reflect trends in the ____________________ dimension of the business environment.

market

Marketing buyers to sellers, providing market information, facilitating transactions, and supporting customers are some of the value-added contributions made by ____________________.

marketing intermediaries

The ____________________ consists of the four key components of a marketing strategy: product, price, distribution, and customer communication.

marketing mix

Dell Computers allows customers to order products online. It produces major parts using standardized, high volume production techniques and then allows customers to personalize such features as software, color, memory capacity, and screen size. Which of the following types of manufacturing is Dell demonstrating?

mass customization

A product's profit is likely to reach its highest point during the ____________________ stage of the product life cycle.

maturity

Macy Pools is a business that distributes swimming pool chemicals, pool equipment and pool supplies. The business buys products from manufacturers, takes legal title to the goods, and then resells them to companies and government agencies. Macy Pools also sells its own products to small business owners who resell them to individuals for their own personal use. Macy Pools can be classified as which type of marketing intermediary?

merchant wholesaler

Dynamo Energy Inc. is shifting its strategic focus away from an emphasis on internal hierarchies and employee control to focus on agility and the ability to respond quickly to its very dynamic competitive environment. It is likely that the company will need to change its ____________________ to accomplish this.

organization structure

The success of a company's ____________________ is determined by its ability to achieve a competitive level of service at the lowest total cost?

physical distribution activities

Forecasting, order processing, warehousing, and inventory control are some of the essential parts of a company's ____________________.

physical distribution and logistics capability

The ____________________ function of an organization can help reduce uncertainty, provide for more focused action, and increase a business's ability to respond to change.

planning

Brendon is the marketing director for his company. What type of business analytics would tell him which combination of price and cost relationships he should select to generate the maximum level of revenue and profit for his company?

prescriptive analytics

Hudson Foods markets processed foods in the U.S. and Canada. The company acquires raw materials from small scale producers located near their production facility. This process of getting necessary inputs for production is know as ____________________.

procurement

Business analytics makes a valuable contribution to a company's ability to create a competitive advantage by ____________________.

promoting better decision making

Todd Schwarskie is the Director of Marketing for SuperFans, Inc., a company that specializes in marketing sports related merchandise. As he makes decisions about his company's ____________________ he needs to consider the type of product, its life cycle stage, type of intended customer, types of intermediaries available, and the focus of communication activities.

promotion mix

Eli Lilly, a major producer of medicines for the healthcare industry, spends billions of dollars each year promoting its products directly to consumers with messages that tell patients to ask their doctor to prescribe drugs made by Lilly. What type of distribution channel strategy is Lilly using in this example?

pull

Merchant wholesaler and bottler PepsiAmericas offers large formal retail grocery store clients like Kroger an attractive price rebate as an incentive to stock and display Pepsi products. This form of distribution strategy is known as a ____________________.

push strategy

The first step in the decision making process is to ____________________.

recognize that a problem exists

Tonedeff Guitars has redesigned several of its products that were made with woods from endangered tree species in order to make guitars from more abundant wood sources. Tonedeff believes that it is important to meet present production needs without making it impossible to meet the needs of the future. Tonedeff is practicing ____________________.

sustainable development

Businesses can promote systems thinking by ____________________.

showing employees how they contribute to overall business goals

The British company Thames Water helped create new markets for its products and services by investing in small communities in Africa and helping them establish water filtration systems that improved local water quality and reduced contamination while using Thames Water products. What form of Corporate Social Responsibility is this company demonstrating?

strategic CSR

Successful ____________________ can have a strategic impact on business performance by getting the right product to the right customer at the right time at the right cost.

supply chain management

A clear sense of purpose, creative thinking, accountability, and honest, open communication are among the characteristics associated with ____________________.

team effectiveness

Corporate social responsibility refers to ____________________.

the idea that a business has obligations to society beyond the need to make a profit

How does the new social model of customer communication differ from the conventional promotional model?

the social model is more interactive and conversational

Setting the strategic direction and priorities of the business are activities that would frequently be performed by a ____________________.

top-level manager

A ____________________ describes how the business converts raw materials or product inputs into finished goods and services.

value chain

Non-linear, multi-dimensional networks of suppliers and outsourcing partners that can provide the opportunity to access a wide range of talents and technologies as well as increase organizational flexibility and responsiveness are called ____________________.

value webs

A product with high brand performance means that customers ____________________.

will generally choose that product over other alternatives but may accept substitutes