Chapter 5 - SB
What type of plan involves making decisions about the organization's long-term goals and how they intend to achieve the goals?
Strategic
Which type of planning has traditionally been the responsibility of senior executives in an organization?
Strategic
Place the levels of management in order from highest to lowest:
Strategic Tactical Operational Team leaders
Stakeholders are groups and individuals who impact and are impacted by ______.
the achievement of the organization's mission
A strategic plan involves management at the ______ level creating a plan with a _____ level of detail.
top; low
Evaluating a firm's staff on its abilities and its drawbacks is part of which step of the strategy implementation process?
Assess organization capabilities
True or False Good decision makers eliminate all risk.
False
True or False Satisficing is less likely in groups.
False
True or False The final step in strategy formulation is to establish the major corporate strategies.
False
The formal decision-making process has six steps. Which step involves implementing the decision?
Fifth
Which tactics are generally NOT employed by fast-acting firms to meet time pressures without sacrificing quality? (Choose every correct answer.) Multiple select question. Focus on futuristic forecasts Rely on heavily trusted experts Rely on long-range planning Take a long-term view of conflict
Focus on futuristic forecasts Rely on long-range planning Take a long-term view of conflict
Which stage in the formal decision making process involves making the choice among the alternatives?
Fourth
What term is used to describe a decision bias which is caused by the way a problem or decision alternative is phrased or presented?
Framing
What are some psychological biases that act as barriers to effective decision making? Multiple select question. Framing effects Illusion of control Discounting the future Competitive advantage
Framing effects Illusion of control Discounting the future
Which factor is NOT a barrier to effective decision making?
Full execution of the six stages of decision making
What type of strategies are implemented by each functional area of the organization to support the company's business strategy?
Functional
What factors should managers compare current performance to in order to find sources of discrepancies in performance? (Choose every correct answer.) Multiple select question. Future expected performance Past performance Current performance of other organizations A programmed decision matrix
Future expected performance Past performance Current performance of other organizations
What term describes the belief that one can influence events even when one has no control over what will happen?
Illusion of control
Once a choice is made in the decision-making process, managers must put their choice into action. What term is used to describe this process?
Implementing
True or False As a manager, you will constantly be making decisions.
True
Frank needs to make a decision but does not know the probabilities of alternative outcomes. Future outcomes are also unknown. What condition does this exemplify?
Uncertainty
What kind of diversification is a company using when it expands into different types of businesses in order to minimize risk?
Unrelated
A company that is a leader in the pet food category decides to expand its operations into electric vehicles and cosmetics. What kind of strategy is the company adopting?
Unrelated diversification
The BCG matrix categorizes businesses with a conglomerate's portfolio as dogs, stars, question marks, and __________.
cash cows
If you have all the information you need, and can predict precisely the consequences of your actions, you are operating under a condition of _____.
certainty
The most effective strategy is one that ______ are unwilling or unable to imitate.
competitors
One method for encouraging different views involves assigning the role of ______ to criticize ideas to ensure the downsides are exploited.
devil's advocate
A method for encouraging different views involves a process called ______, a structured debate between two conflicting courses of actions.
dialectic
When competing firms cannot copy a company's business practices or provide similar customer benefits, the company is said to have a resource that is ______.
difficult to imitate
Goal _____ occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.
displacement
A resource is considered rare when it is not ____________ all competitors.
equally available to
Strengths and weaknesses refer to ______ resources.
internal
If a decision appears inappropriate, the decision-making process cycles back to the ______ stage.
first
The _____ effect is a decision-making bias caused by the way a problem or decision alternative is phrased or presented.
framing
The final step in strategy formulation is to establish the major ______ strategies.
functional
When evaluating alternatives, it is important to refer to the original _____ you defined in the first stage.
goals
Gambling is an example of the ______ in that some people believe they have the skill to beat the odds, even though most of the time they cannot.
illusion of control
The most effective strategy is one that competitors are unwilling or unable to __________.
imitate
In order to successfully ________ a business strategy, a company's structure, technology, human resources, information systems, and leadership style must all support the strategy.
implement
After a strategy is formulated, strategic managers must help make sure it is ______.
implemented efficiency
Just possessing a resource, even one that is rare and difficult to imitate, may not be sufficient to attain a competitive advantage. In order to create value for the customer, the resource must also be ______.
organized
Senior executives generally _____ the implementation of strategies, while lower-level managers _____ the implementation.
oversee; execute
When a corporation has a business portfolio it has _____.
ownership of a variety of businesses
Once completed, a SWOT analysis can formulate a strategy to capitalize on opportunities by leveraging organizational ___________.
strengths
SWOT is an acronym that stands for ______, weaknesses, opportunities, and threats.
strengths
A vertical integration strategy involves expanding the domain of the organization into _____ or to _____.
supply channels; distributors
Strategic goals are the major targets related to the long-term ______ of the organization. (Choose every correct answer.) Multiple select question. survival growth value employees
survival growth value
When conducting a SWOT analysis, _____________ and ___________ arise in the macroenvironment and competitive environments.
threats; opportunities
What are typical strategic goals? (Choose every correct answer.) Multiple select question. Reducing human resource requirements Improving profitability Increasing market share Enhancing customer service Boosting return on investment
Improving profitability Increasing market share Enhancing customer service Boosting return on investment
Which statement is true about aligning tactical, operational, and strategic plans?
The plans must be consistent and mutually supportive.
The _____ describes the organization as it currently operates, whereas the strategic vision points to the future.
mission statement
In the selection step of the planning process, managers will select the plan that they believe to be ______.
the most feasible
What is an example of a process considered by operational planning?
Production runs
Which is NOT an example of intangible resources?
Real estate
What are inputs to a system that can enhance performance?
Resources
Which process has six steps, the first of which is the creation of a mission, vision, and goals?
Strategic management
In Step 6, managers need to develop control systems to: (Choose every correct answer.) Multiple select question. analyze the situation take corrective action when necessary set performance standards measure performance
take corrective action when necessary measure performance
The two types of resources are ______ resources that are things you can touch, such as buildings or machinery, and ______ resources that are things you cannot touch, such as reputation or knowledge.
tangible; intangible
The strategic ______ points to the future by providing a perspective on where the organization is headed and what it can become.
vision
Which is NOT a tangible asset?
A brand image
Which are components of the internal resource analysis? (Choose every correct answer.) Multiple select question. HR assessment Financial analysis Marketing audit Competitor analysis
HR assessment Financial analysis Marketing audit
When the resources of a firm create value for the customer, are rare, are difficult to imitate, and are well organized, they become a source of ______.
competitive advantage
A(n) ______ plan is an alternative plan that can be implemented when circumstances change, and the original plan is no longer effective.
contingency
In Step 6, managers need to develop ______ systems to measure performance and take corrective action when the situation changes.
control
The sixth step of the formal planning process is to monitor and ________.
control
In terms of the planning process, the targets or ends that managers want to reach are known as ___________.
goals
As noted in Step 5 of the planning process, proper ______ is the key to achieving goals.
implementation
In general, managers in the selection step of the planning process will select the plan that __.
is the most appropriate and feasible
Zappos.com offers customer service that is practically unheard of in business. Customer service representatives are allowed to take whatever measures they feel are appropriate to make sure their customers are happy. This feature gives Zappos a competitive advantage because ______.
it is difficult to imitate
A strategic plan differs from an operational plan in which a strategic plan requires a _______ level of detail while an operational plan requires a ________ level of detail.
low; high
A tactical level plan requires a moderate amount of detail and involves the ______ level of management.
middle
When an employee is involved in the development of a goal or plan, the employee is usually: (Choose every correct answer.) Multiple select question. more motivated more controlled better informed more committed
more motivated better informed more committed
The process of making decisions about goals and activities that an organization will pursue in the future is referred to as __________.
planning
Generally, it is important for goal achievement to be linked to the organization's ______ to encourage employees to work hard to attain the plan's goals.
reward system
In the ______ stage, planners assemble and study all information relevant to the planning issue in question.
situational analysis
Buyers, suppliers, competitors, government, and regulatory agencies are all ______.
stakeholders
What is the fourth step of the formal planning process?
Goal and plan selection
In the planning process, what term describes the targets that managers want to achieve?
Goals
Which action takes place during Step 3 of the planning process?
Goals and plans are evaluated.
To whom should businesses communicate their mission, vision, and goals statements?
All stakeholders
What is the second step in the strategic management process?
Analysis of the external environment
Place the steps of the planning process in the correct order:
Analyze the situation Generate alternative goals and plans Evaluate goals and plans Select goals and plans Implement goals and plans Monitor and control performance
What is Step 1 of the basic planning process?
Analyzing the situation
Which elements are part of an environmental analysis? (Choose every correct answer.) Multiple select question. Competitor analysis Labor issues Internal weaknesses Legal trends Industry journals
Competitor analysis Labor issues Legal trends
What is a characteristic of the situational analysis?
Consistent with the open-system approach
Which are examples of intangible assets? (Choose every correct answer.) Multiple select question. Computer equipment Corporate reputation correct Technological knowledge correct Corporate culture correct Corporate headquarters building Raw materials
Corporate reputation Technological knowledge Corporate culture
______ occurs when the customer gains an increase in benefit from a good or service relative to its cost.
Customer value
Which term best describes the planning process?
Cyclical
Which factors are part of an environmental analysis? Multiple select question. Economic conditions Stakeholder influence Technological factors Company rulemaking
Economic conditions Stakeholder influence Technological factors
Which are necessary conditions for successful implementation of a plan? (Choose every correct answer.) Multiple select question. Employees must be motivated to perform the plan. Employees must understand the plan. Employees must have the proper resources. Employees must be engaged in goal displacement.
Employees must be motivated to perform the plan. Employees must understand the plan. Employees must have the proper resources.
Implementation of the plan comes after which step in the planning process?
Goal and plan selection
Which tasks are typically conducted by managers in the goal and plan evaluation step of the formal planning process? (Choose every correct answer.) Multiple select question. Create a schedule for plan implementation. Estimate the costs of each plan. Evaluate advantages of each goal and plan. Select the best goal and plan. Prioritize and, if necessary, eliminate goals.
Estimate the costs of each plan. Evaluate advantages of each goal and plan. Prioritize and, if necessary, eliminate goals.
What is a typical task in Step 3 of the planning process (goal and plan evaluation)?
Estimating the return on investment for each plan.
Which management levels are involved in planning?
Every level
With whom should mission, vision, and goals statements be shared?
Everyone who comes in contact with the organization.
True or False A strategic vision helps a company understand its past so it can succeed in the present.
False
Which elements are included in an environmental analysis? (Choose every correct answer.) Multiple select question. Industry forces Internal strengths Technological factors Industry growth Social issues
Industry forces Technological factors Industry growth Social issues
Which analysis is made up of components such as a financial analyses and marketing audits?
Internal resouce
What does it mean for an organization to be "mission driven"? (Choose every correct answer.) Multiple select question. It gives employees a "reason to believe." It is religion-based. It works only for its own profits. It is focused on a greater purpose.
It gives employees a "reason to believe." It is focused on a greater purpose.
Merriwether Farms supplies ferns to Flowers Unlimited, Incorporated. In this example, how is Merriwether Farms related to Flowers Unlimited?
It is a stakeholder
What are characteristics of the situational analysis? (Choose every correct answer.) Multiple select question. It is consistent with the open-system approach. It looks at influences from the external environment. It relies on the closed-system approach. It studies internal forces within an organization.
It is consistent with the open-system approach. It looks at influences from the external environment. It studies internal forces within an organization.
Which statement best explains what takes place during the process of setting a strategy?
Managers try to match the organization's skills and resources to opportunities in the external environment.
What term describes a clear and concise expression of the basic purpose of an organization?
Mission
What drives the analysis of the external environment (opportunities and threats)?
Mission and vision
Which type of planning identifies the procedures and processes, such as delivery schedules, that are required from the lower levels of the organization?
Operational
The monitor and control step of the planning process comes after which step?
Plan implementation
What term describes the conscious, systematic process of making decisions about goals and activities that an individual, group, or organization will pursue in the future?
Planning
Cosmetics company Skinnit offers a unique eye cream formula that is touted by the industry as the best. Consumers are willing to pay a lot of money for the eye cream, and many consider the cream's benefits to be superior to all other eye creams. What is the term for the resource Skinnit is offering?
Rare
Which are examples of tangible assets? (Choose every correct answer.) Multiple select question. A corporation's reputation Patents Real estate A manufacturing plant Raw materials
Real estate A manufacturing plant Raw materials
_____ are inputs to production that can be accumulated over time to enhance the performance of a firm.
Resources
Who has been responsible for the development and execution of the strategic plan in the past?
Senior executives
A city planner preparing for an upcoming bicentennial celebration would likely use which of the following type of plan?
Single-use plan
Which type of plans are designed to achieve a set of goals that are not likely to be repeated in the future?
Single-use plans
What flows from the mission and vision of the organization?
Strategic goals
What term is used to describe the major targets or end results that relate to the long-term survival, value, and growth of an organization?
Strategic goals
What process involves managers from all parts of the organization in the formulation and implementation of strategic goals?
Strategic management
What is the name given to the long-term direction and strategic intent of a company?
Strategic vision
Which are steps in the strategic management process? (Choose every correct answer.) Multiple select question. Stakeholder analysis Strategy implementation Strategic control Stockholder reporting SWOT analysis
Strategy implementation Strategic control SWOT analysis
What is most essential for mission and vision statements to actually guide the behavior of organizational employees?
Strong leadership support
The type of plan that translates broad strategic goals into specific goals that are relevant to a particular organizational function is known as a(n) ______ plan.
Tactical
Which type of planning translates broad strategic goals and plans into specific goals and plans relevant to particular organizational units?
Tactical
Which type of plans typically cover a time horizon of a year or two?
Tactical
Kandy's Koffee is engaging in the strategic management process. The company is deciding whether or not to make its mission to provide the most environmentally friendly and locally sourced coffee at the best price to customers. Which step of the strategic management process is Kandy's Koffee working on?
The final
Which step of the formal planning process involves evaluating goals and plans?
Third
Which managers are typically responsible for the development and execution of strategic plans?
Top-level managers
True or False Strategic goals evolve from the mission and vision of the organization.
True
To be effective, an organization's strategic, tactical, and operational plans must be ______.
aligned
Strategic management involves managers from ______ of the organization in the formulation and implementation of strategic goals and strategies.
all levels
The second step of the planning process should generate ______ goals and plans for the future.
alternative
In order for a plan to be implemented successfully, managers and employees must understand the plan, ______, and have the resources to implement it.
be motivated to carry out the plan
For a plan to be successfully implemented, the organization has to link the plan to a ________ to ensure adequate financial resources.
budget
One of the outcomes of environmental analysis is to predict future trends, also known as ______.
forecasting
The primary difference between tactical and operational plans is that tactical plans have a time horizon of ______ while operational plans only cover a few months.
one to two years
Which is the best description of strategy in business planning?
A pattern of actions and resource allocations designed to achieve goals.
True or False The two types of resources are tangible and quantifiable.
False
Which step in the strategic management process involves creating a mission, vision, and goals?
First
The goal and plan selection step of the formal planning process comes after which action?
Goal and plan evaluation
What term describes a member of a group that affects or is affected by the achievement of the organization's mission, goals, and strategies?
Stakeholder
When creating scenarios of possible future states, it is helpful to have ______ plans associated with each scenario.
contingency
In Step 2, the process of generating several alternative goals, managers and other decision makers are encouraged to be ______.
creative
_____ at all levels implement strategies.
Employees
What term is used to describe the decision-making strategy that results in the best possible outcome?
Maximizing
In companies such as McDonald's, whose mission and vision statements have successfully guided change, the support of ______ was essential to strategy implementation.
top management
When a manager does not have adequate information to understand the consequences of different actions, this is known as ______.
uncertainty
A successfully completed internal analysis of the firm will allow a company to identify its strengths and ___________.
weaknesses
The results of a SWOT analysis can identify organizational ______ that make it more difficult to pursue a preferred strategy because they limit what a firm can do.
weaknesses
In order for a resource to be able to help a company attain a competitive advantage it must create value for the customer, be rare, be difficult to imitate, and be:
well-organized
What are common consequences of a manager making the wrong decision? (Choose every correct answer.) Multiple select question. A company could ruin its reputation. A company could lose money. A manager could improve his or her reputation. A manager could improve time management.
A company could ruin its reputation. A company could lose money.
What are potential advantages of using a group to make a decision? (Choose every correct answer.) Multiple select question. A greater number of perspectives on the issues or different approaches to solving the problem are available. Group discussion usually leads to a lower level of commitment. Participants in the group discussions are more likely to understand why the decision was made. More information is available. Group discussion provides intellectual stimulation.
A greater number of perspectives on the issues or different approaches to solving the problem are available. Participants in the group discussions are more likely to understand why the decision was made. More information is available. Group discussion provides intellectual stimulation.
How do social realities affect decision making? (Choose every correct answer.) Multiple select question. A manager must consider the preferences and reactions of many people. Important managerial decisions are marked by conflict among interested parties. Managers with a high level of authority can ignore social realities to make sound decisions. Many decisions are the result of intensive social interactions, bargaining, and politicking.
A manager must consider the preferences and reactions of many people. Important managerial decisions are marked by conflict among interested parties. Many decisions are the result of intensive social interactions, bargaining, and politicking.
The ______ matrix is a popular technique for helping companies analyze their strategy for managing their portfolio.
BCG
Each business in the corporation is plotted on the ______ on the basis of the growth rate of its market and the relative strength of its competitive position in that market (market share).
BCG matrix
What is the name given to the process of assessing how well one company's basic functions and skills compare with those of another company?
Benchmarking
What is the name of a common technique used for eliciting creative ideas from group members that requires group members to generate as many ideas about a problem?
Brainstorming
What type of strategy defines the major actions by which a company builds or strengthens its competitive position in the marketplace?
Business
In the BCG matrix, what term describes a company that has a strong competitive position in a low-growth market?
Cash cow
What are the four categories of businesses identified by the BCG matrix? Multiple select question. Cash cows Question marks Sheep Dogs Stars Goats
Cash cows Question marks Dogs Stars
What name is given to the state that exists when decision makers have accurate and comprehensive information?
Certainty
Which action is NOT one of the steps managers take when planning an implementation?
Compare actual performance to planned performance.
What actions should be taken during the sixth and final stage of the decision-making process? (Choose every correct answer.) Multiple select question. Compare collected information with specified goals. Collect information on how well the decision is working. Repeat the feedback-gathering process as necessary until a positive conclusion is reached. Use feedback to either continue the decision or go back to the first stage.
Compare collected information with specified goals. Collect information on how well the decision is working. Use feedback to either continue the decision or go back to the first stage.
What kind of strategy is a company using when it focuses all energies in a single industry?
Concentration
What term describes something that a company does particularly well relative to its competitors?
Core capability
What type of strategy identifies the set of businesses in which the organization competes and the distribution of resources among those businesses?
Corporate
Which risks are associated with technology leadership? (Choose every correct answer.) Multiple select question. Cost of technology development Infrastructure costs Cost of entry barriers Cost of learning Cannibalizing current products
Cost of technology development Infrastructure costs Cost of learning Cannibalizing current products
Which steps are part of strategy implementation? (Choose every correct answer.) Multiple select question. Conduct a SWOT analysis. Create an implementation plan. Control the process. Assess organizational capabilities. Develop an implementation agenda. Define strategic tasks.
Create an implementation plan. Assess organizational capabilities. Develop an implementation agenda. Define strategic tasks.
Tamera is a manager at a medical device firm. She has a specific problem that cannot be addressed by existing solutions. What type of solution should Tamera consider?
Custom-made
If a decision appears inappropriate, which stage should be re-examined first?
Defining the problem
What is the name of the human-centered approach to innovation that integrates customer needs, the potential of technology, and the requirements for business success?
Design thinking
In the decision-making process, which one of the following actions comes directly AFTER the act of generating alternative solutions?
Determining the respective suitability of each alternative
What is involved in the second stage of decision making?
Developing alternative solutions
What is one tool managers can use to encourage the airing of different views?
Devil's advocate
What is the term for a structured debate between two conflicting courses of action?
Dialectic
What strategy is a company using when it attempts to stand out by focusing on high product quality, outstanding marketing, or superior service?
Differentiation
A decision maker decides to allow clear cutting of timber in a pristine state forest. This allowance will infuse much-needed funds into state government, so the decision maker chooses not to consider the environmental impact reports. In decision-making terminology, what is this decision maker doing?
Discounting the future
Management at Dungaree Denim acquired a factory at an incredibly low price. The factory came outfitted with necessary equipment, and it could discard the water involved in producing its high-end jeans into the neighboring river. Dungaree was aware that the river was undergoing an environmental survey due to talks of endangered fish, but Dungaree believed everything would work out fine. Which type of psychological bias did Dungaree's decision demonstrate?
Discounting the future
What term describes the problem that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges?
Displacement
What is the name for a company with a weak competitive position in a low-growth market, according to the BCG matrix?
Dog
What is a major focus of a company making use of a low-cost business strategy?
Efficiency
Which actions are NOT requirements for effectively managing group decisions? (Choose every correct answer.) Multiple select question. Encouraging goal displacement Constructive use of disagreement and conflict Enhancement of creativity Appropriate leadership style Facilitating satisficing
Encouraging goal displacement Facilitating satisficing
Which stage of the decision-making process involves predicting the possible consequences of each of the various options?
Evaluating the alternatives
What name is given to the stage of decision making where information is collected and compared to goals and plans to determine success or failure?
Evaluating the decision
Upon which factors is a unique or differentiated position within the industry usual? (Choose every correct answer.) Multiple select question. Excellent marketing and distribution High product quality Average product pricing Superior service
Excellent marketing and distribution High product quality Superior service
In which general business environment do opportunities and threats arise?
External
What are characteristics of a cash cow, according to the BCG matrix? (Choose every correct answer.) Multiple select question. Generates revenues that can be used to fund other businesses Requires heavy investment Needs no investments Operates in the dairy industry
Generates revenues that can be used to fund other businesses Needs no investments
Which statements concerning managerial decision making and risk are true? (Choose every correct answer.) Multiple select question. Good decision makers prefer to manage risk. Good decision makers anticipate and eliminate any risk. Risk and uncertainty are a fact of life in managerial decision making. Bad decision makers waste energy trying to manage risk. Good decision makers do everything to anticipate, minimize, and control risk.
Good decision makers prefer to manage risk. Risk and uncertainty are a fact of life in managerial decision making. Good decision makers do everything to anticipate, minimize, and control risk.
When using groups to make decisions, what is one of the potential disadvantages?
Group displacement
Which statement is true about using a group to make a decision?
Groups generally make higher-quality decisions than individuals.
Suhindra is in a work group that has a goal of coming up with a proposal for workplace childcare. The group strives to work cohesively as a team, and as a result Suhindra does not want to question members' ideas. In fact, nobody in the group voices any disagreement. What is Suhindra's group guilty of?
Groupthink
What term describes a phenomenon that occurs in decision-making when group members avoid disagreement as they strive for consensus?
Groupthink
What are common potential problems associated with group decision making? (Choose every correct answer.) Multiple select question. Groupthink Goal displacement Intellectual stagnation Satisficing
Groupthink Goal displacement Satisficing
Mason has considered all possible consequences of his options. Which statement best describes the behavior Mason would use to maximize his decision?
He would choose the option with the greatest positive consequences and fewest negative consequences.
Which risk is NOT associated with technology leadership?
Higher profit margins
What is the first step in the ideal decision-making process?
Identifying and diagnosing the problem
Which statement about the design thinking process is true?
It starts by developing an understanding of current and potential customers.
What is the term to describe a novel and unstructured problem that leaves a decision maker uncertain about how to proceed?
Lack of structure
What are steps managers should take when planning to implement a decision? (Choose every correct answer.) Multiple select question. List the resources and activities required to implement each step. Determine how things will look when the decision is fully operational. Compare actual performance to planned performance. Assign responsibility for each step. Chronologically order the steps necessary to achieve a fully operational decision.
List the resources and activities required to implement each step. Determine how things will look when the decision is fully operational. Assign responsibility for each step. Chronologically order the steps necessary to achieve a fully operational decision.
What are two generic business strategies? Multiple select question. Low growth Implementation Low-cost Differentiation
Low-cost Differentiation
What is the fourth step in decision making, which occurs after all the possible consequences of the options have been evaluated?
Making the choice
Josephine decided to go with option three because it resulted in the lowest cost and provided the greatest benefits with the largest expected total return. What decision strategy is Josephine using?
Maximizing
Which decision strategy results in the greatest benefit, at the lowest cost, with the largest expected total return?
Maximizing
______ feedback suggests that the implementation will require more time, resources, effort, or thought; alternatively, the decision was a bad one.
Negative
What type of decisions are used when there is no predetermined structure and the decision maker must create a method for making the decision?
Nonprogrammed
Which decision strategy are you using when you achieve the best possible balance among several goals?
Optimizing
When a company employs an unrelated diversification strategy, what term is used to describe the many businesses that make up the resulting corporation?.
Portfolio
Managers are faced with tough decisions daily, and most complex managerial decisions lack structure. Which factors add to the difficulty and pressure managers experience when making tough decisions? (Choose every correct answer.) Multiple select question. Lack of fairness Potential for conflict Level of uncertainty Degree of risk
Potential for conflict Level of uncertainty Degree of risk
When assessing alternatives in decision making, which action is fundamental to the process?
Predict the possible consequences if each option is put into effect.
Which factors may be barriers to effective decision making? (Choose every correct answer.)
Psychological biases Social realities Time pressures
According to the BCG matrix, which term designates businesses that have a weak competitive position in a high-growth market?
Question marks
What type of strategy involves moving into new businesses that are similar to the company's original core business?
Related diversification
What are examples of major functional areas? (Choose every correct answer.) Multiple select question. Mid-level management Research and development Human resources Customers
Research and development Human resources
Which of the following are the rule with nonprogrammed decisions? Multiple select question. Risk Certainty Uncertainty Authority
Risk Uncentainty
Which of the following are the rule with nonprogrammed decisions?
Risk Uncertainty
The process of assessing a company's internal strengths and weaknesses, as well as determining external threats and opportunities is known as a ___________ analysis.
SWOT
Most people do not like having to attend meetings and may display negative behaviors, such as criticizing members who want to explore new options, as a way to end a meeting. What is a likely result of this desire to end discussion quickly rather than continue working toward the best decision?
Satisficing
What criteria are you using to make a decision when you choose the first option that is acceptable, although it may not be the best or perfect option?
Satisficing
What decision strategy involves choosing the first option that is minimally acceptable or adequate?
Satisficing
Which stage of the formal decision making process involves generating alternative solutions?
Second
Which factors should managers take into account when considering the social realities of a decision?
Social interactions, bargaining, and politicking
According to the BCG matrix, what name is given to a company with a strong competitive position in a high-growth market?
Star
What type of goals typically include fostering quantity and quality of outputs and/or improving profitability?
Strategic
What is the fifth step of the strategic management process?
Strategy implementation
Which are tactics employed by fast-acting firms to meet time pressures without sacrificing quality? (Choose every correct answer.) Multiple select question. Rely on long-range planning Take a realistic view of conflict Focus on real-time information Rely on heavily trusted experts
Take a realistic view of conflict Focus on real-time information Rely on heavily trusted experts
What are three requirements for effectively managing group decisions? Multiple select question. The constructive use of disagreement and conflict Encouraging groupthink An appropriate leadership style Facilitating satisficing Enhancement of creativity
The constructive use of disagreement and conflict An appropriate leadership style Enhancement of creativity
What is suggested by negative feedback regarding the implementation of a decision? (Choose every correct answer.) Multiple select question. The decision was a bad decision. The evaluation must be wrong. Implementation will require more time. Implementation will require more effort.
The decision was a bad decision. Implementation will require more time. Implementation will require more effort.
Which four conditions are necessary for resources to be a source of competitive advantage? Multiple select question. They must create customer value. They must be well organized. They must be rare. They must be easy to use. They must be difficult to imitate. They must be plentiful.
They must create customer value. They must be well organized. They must be rare. They must be difficult to imitate.
Which statement about businesses that are question marks in the BCG matrix is true?
They need significant investment to improve their position.
Which stage in the formal decision-making process involves determining the value or adequacy of the alternatives that were generated?
Third
What is the goal when companies concentrate on a single industry?
To gain entry into an industry
What actions should be taken during the sixth and final stage of the decision-making process? (Choose every correct answer.) Multiple select question. Use feedback to either continue the decision or go back to the first stage. Compare collected information with specified goals. Repeat the feedback-gathering process as necessary until a positive conclusion is reached. Collect information on how well the decision is working.
Use feedback to either continue the decision or go back to the first stage. Compare collected information with specified goals. Collect information on how well the decision is working.
What type of strategy involves expanding the domain of the organization to include supply channels and distributors?
Vertical integration
When evaluating alternatives in decision making, what goal-related questions should managers consider when deciding among alternatives? (Choose every correct answer.) Multiple select question. Which alternatives can be implemented at the lowest cost or highest profit? Which alternatives are most acceptable? How does the solution relate to the defined goal? Which alternative is most likely to be unnoticed by others?
Which alternatives can be implemented at the lowest cost or highest profit? Which alternatives are most acceptable? How does the solution relate to the defined goal?
The goal of ______ is to gain understanding of the "best practices" of other companies and to act in order to achieve better performance or lower costs.
benchmarking
In the process of ______, group members generate as many ideas about a problem as they can in order to elicit creative ideas.
brainstorming
A strategy of related diversification involves moving into new businesses that are related to the company's ________ business.
core
A resource that is valuable, rare, inimitable, and organized can be viewed as a company's _______________.
core capability
A ______ identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.
corporate strategy
To succeed in the low-cost strategy, companies generally need to be the _______ in the market segment and offer a product that is acceptable to the customers.
cost leader
An organization's _____ must support its strategy.
culture
When searching for solutions, there are times when what has been done before is not applicable. In these unique situations, managers search for ______ solutions, or those that must be designed for specific problems.
custom-made
Khalid likes shopping at the Serendipitea website because it tracks his past tea orders, gives recommendations based on his past orders, and allows him to keep a wishlist of teas he wants to try. All of these features create ______.
customer value
The challenges associated with decision making include risk, uncertainty, conflict, and ______.
lack of structure
Even a company that has successfully implemented a(n) _______ strategy must still offer products with features that are acceptable to customers compared to competitors' products.
low-cost
In which type of business strategy do companies offer a standard, no-frills product?
low-cost
According to the BCG matrix, a dog is a company that has a weak competitive position in a _______ market.
low-growth
Achieving the best possible balance among several goals when making decisions is known as ______.
optimizing
Personal biases that interfere with objective rationality in decision making are called _______ biases.
psychological
Ideas that have been seen or tried before are called _____-made solutions.
ready
When managers follow the suggestions of others who have faced similar problems, they are applying ______ solutions.
ready-made
The state that exists when the probability of an action succeeding is less than 100% and losses may occur is called _____.
risks
Businesses that need heavy investment but are able to perform well and generate needed revenues due to their strong competitive position in a high-growth market are ______.
stars
