Intro Business Chap. 9-12

Many rock and roll fans believe that Jimi Hendrix was the best guitarist ever and that he stretched his ability to the utmost. According to Maslow's theory of need, Hendrix more than likely satisfied his _____ need.

self-actualization

Some of the quickest emergency assistance to victims of Hurricane Katrina did not come from the American Red Cross or FEMA. It came from Wal-Mart. Millions of people were displaced or otherwise affected by the Gulf Coast calamity. Many waited for days as agencies struggled to provide assistance. Wal-Mart moved faster than traditional emergency aid groups because the retail giant has mastered

supply chain management

An example of a provider of exceptional customer service is L.L. Bean, Inc. One of its employees actually drove 500 miles from Maine to New York to deliver a canoe to a customer who was leaving on a trip. The employee was able to perform this task with the support of L.L. Bean because the catalog retailer believes strongly in

Empowerment

hygiene factors

Extrinsic elements of the work environment that do not serve as a source of employee satisfaction or motivation.

According to Maslow's hierarchy of need, the most basic needs are the social needs.

False

Equity theory is a theory of motivation that focuses on the link between motivation and organizational culture.

False

Theory X

A management style, formulated by Douglas McGregor, that is based on a pessimistic view of human nature and assumes that the average person dislikes work, will avoid it if possible, prefers to be directed, avoids responsibility, and wants security above all.

Theory Y

A management style, formulated by Douglas McGregor, that is based on a relatively optimistic view of human nature; assumes that the average person wants to work, accepts responsibility, is willing to help solve problems, and can be self-directed and self-controlled.

assembly process

A production process in which the basic inputs are either combined to create the output or transformed into the output.

continuous process

A production process that uses long production runs lasting days, weeks, or months without equipment shutdowns; generally used for high-volume, low-variety products with standardized parts.

intermittent process

A production process that uses short production runs to make batches of different products; generally used for low-volume, high-variety products.

job sharing

A scheduling option that allows two individuals to split the tasks, responsibilities, and work hours of one 40-hour-per-week job.

critical path method (CPM)

A scheduling tool that enables a manager to determine the critical path of activities for a project—the activities that will cause the entire project to fall behind schedule if they are not completed on time.

scientific management

A system of management developed by Frederick W. Taylor and based on four principles: developing a scientific approach for each element of a job, scientifically selecting and training workers, encouraging cooperation between workers and managers, and dividing work and responsibility between management and workers according to who can better perform a particular task.

flexible manufacturing system (FMS)

A system that combines automated workstations with computer-controlled transportation devices—automatic guided vehicles (AGV)—that move materials between workstations and into and out of the system.

Theory Z

A theory developed by William Ouchi that combines U.S. and Japanese business practices by emphasizing long-term employment, slow career development, moderate specialization, group decision-making, individual responsibility, relatively informal control over the employee, and concern for workers.

Maslow's hierarchy of needs

A theory of motivation developed by Abraham Maslow; holds that humans have five levels of needs and act to satisfy their unmet needs. At the base of the hierarchy are fundamental physiological needs, followed in order by safety, social, esteem, and self-actualization needs.

reinforcement theory

A theory of motivation that holds that people do things because they know that certain consequences will follow.

expectancy theory

A theory of motivation that holds that the probability of an individual acting in a particular way depends on the strength of that individual's belief that the act will have a particular outcome and on whether the individual values that outcome.

equity theory

A theory of motivation that holds that worker satisfaction is influenced by employees' perceptions about how fairly they are treated compared with their coworkers.

Human resources managers have yet to find any use for Maslow's hierarchy of needs.

False

Low volume, short production runs, and high-variety production are characteristic of the continuous process.

False

One-to-one marketing is synonymous with database marketing.

False

The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more than likely because of low energy costs.

False

There are no significant differences between the consumer market and the business-to-business market.

False

business process management (BPM)

A unified system that has the power to integrate and optimize a company's sprawling functions by automating much of what it does.

punishment

Anything that decreases a specific behavior.

reward

Anything that increases a specific behavior.

Gantt charts

Bar graphs plotted on a time line that show the relationship between scheduled and actual production.

Synergy Oil and Gas builds oil-well drilling platforms to customer and government specifications. These platforms can cost as much as $1 billion. Synergy works on one platform at a time, and when it is finished, moves its crew to a new project. Synergy engages in

Customization

Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of metal components, preformed plastic, etc. used to manufacture the systems as well as the efficient movement of the finished systems from the manufacturing facility to the warehouse to distribution trucks. Georges is involved in

Distribution

Which of the following is NOT an element of the promotional mix?

Distribution

goal-setting theory, managers have learned that easier goals motivate more effectively than challenging ones.

False

_____ are incentive programs based on group productivity. Employees share in the financial gains attributed to the increased productivity of their group.

Gain-sharing plans

critical path

In a critical path method network, the longest path through the linked activities.

motivating factors

Intrinsic job elements that lead to worker satisfaction.

_____ is the redesign of a job to provide workers with more authority, responsibility, challenge, and the opportunity for more personal achievement is called

Job enrichment

CAD/CAM systems

Linked computer systems that combine the advantages of computer-aided design and computer-aided manufacturing. The system helps design the product, control the flow of resources needed to produce the product, and operate the production process.

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

Pricing

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

Pricing

A (n) _____ is any good or service that satisfies wants, along with its perceived attributes and benefits.

Product

Channels of distribution make distribution easier by performing all of the following functions EXCEPT

Production

cellular manufacturing

Production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order.

_____ is the act of informing, persuading, and reminding the target market about a product.

Promotion

blockchain technology

Refers to a decentralized "public ledger" of all transactions that have ever been executed. It is constantly expanding, as "completed" blocks are added to the ledger with each new transaction.

motivation

Something that prompts a person to release his or her energy in a certain direction.

In Herzberg's model, which of the following would be an example of a hygiene factor?

Supervision

computer-integrated manufacturing (CIM)

The combination of computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing.

electronic data interchange (EDI)

The electronic exchange of information between two trading partners.

want

The gap between what is and what is desired.

need

The gap between what is and what is required.

job enlargement

The horizontal expansion of a job by increasing the number and variety of tasks that a person performs.

Hawthorne effect

The phenomenon that employees perform better when they feel singled out for attention or feel that management is concerned about their welfare.

e-procurement

The process of purchasing supplies and materials online using the internet.

customization

The production of goods or services one at a time according to the specific needs or wants of individual customers.

Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?

increase the amount and frequency of use

A manufacturer that uses the intermittent process to produce special customer orders is called a

job shop

bill of material

A list of the items and the number of each required to make a given product.

Which of the following is NOT an example of a job satisfier?

salary and fringe benefits

enterprise resource planning (ERP)

A computerized resource-planning system that incorporates information about the firm's suppliers and customers with its internally generated data.

fixed-position layout

A facility arrangement in which the product stays in one place and workers and machinery move to it as needed.

continuous improvement

A commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality.

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

The sales message can be varied according to the motivations and interests of each prospect; Personal selling can be directed only to qualified prospects; Personal selling costs can be adjusted by controlling the size of the sales force; Personal selling is considerably more effective at creating a satisfied customer than other forms of promotion; All of the above statements describe how personal selling is superior to other forms of promotion.

job rotation

The shifting of workers from one job to another; also called cross-training.

computer-aided design (CAD)

The use of computers to design and test new products and modify existing ones.

computer-aided manufacturing (CAM)

The use of computers to develop and control the production process.

job enrichment

The vertical expansion of a job by increasing the employee's autonomy, responsibility, and decision-making authority.

Wes Johnston overheard his manager say, "Work is as natural as play, and workers seek more job responsibility." This statement supports

Theory Y assumptions

_____ management emphasizes the use of quality principles in all aspects of a company's operations.

Total quality

A distribution channel is a series of marketing entities through which goods and services pass on their way from producers to end users.

True

A knowledge-based work force is qualitatively different from a skills-based work force.

True

A target market is a specific group of consumers toward whom a firm directs its marketing effort.

True

Agents are sales representatives for manufacturers or wholesalers and usually are hired on a commission basis.

True

Computer-aided manufacturing (CAM) uses computers to develop and control the production process.

True

Distribution strategy is another term for place strategy.

True

For most corporations, physical-distribution activities are usually the responsibility of the marketing department.

True

The goal of all promotion is to stimulate action.

True

The idea behind bundling is to reach a segment of the market that would not be reached as effectively if the product were sold separately.

True

The just-in-time (JIT) system schedules arrival of inventory so that it can be used almost immediately and will not need to be stored on site.

True

Types of promotional goals include creating awareness, increasing the use of products, and identifying potential customers.

True

What do the United Way, the Sierra Club, the Girl Scouts of America, and the American Red Cross have in common?

all engage in environmental scanning, They all have a target market, They all have created a marketing mix, They all engage in not-for-profit marketing, All of the above statements describe ways in which the organizations are similar.

PERT charts differ from critical path method (CPM) in one important way. PERT charts _____, and the CPM does not.

assign three time estimates for each activity

An example of a convenience product is a

bar of soap

Price is

based on the expected value you will receive from your purchase

Roy Petrie is a flower wholesaler. He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists. This process is called

breaking bulk

Based on the expectancy theory, managers who want to motivate their employees should

determine the rewards valued by each employee, link rewards to performance, determine what factors might counteract the effectiveness of a reward, make sure the rewards are adequate for the level of performance, do all of the above

What is the final step in the selling process?

following up on sales1

Crown Holdings Inc. manufactures a high-resolution, full color digital inkjet printed cans that allows smaller beverage producers to label the cans as they are needed to be filled rather than keeping a stock of preprinted cans. This is an example of how a beverage company could use

just-in-time

Which of the following factors will be important in the selection of a site for a production facility?

labor costs, proximity to raw materials, nearness to customers, access to transportation, all of the above

Which of the following is the BEST example of process manufacturing?

lamb's wool

Which of the following is NOT an example of a convenience product?

lawn furniture

Mazda once included a solar powered ventilation system on its cars. A solar panel on the roof powered a pair of fans near the trunk, which automatically turned on when the temperature in the car reached 90 degrees. Because customers were not willing to pay for this benefit and did not complain when it was no longer available, Mazda discontinued it. This is an example of

lean manufacturing

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision.

make-or-buy

The _____ is based on the five P's.

marketing mix

Rap star Xzibit has signed an endorsement deal with athletic footwear manufacturer Dada to produce shoes. The line named "Pimp Your Kicks," alluding to Xzibit's role as host of the MTV show Pimp My Ride, became available in late 2005. Dada hopes Xzibit will act as a(n) _____ and influence consumers to buy the shoes.

opinion leader

In August 2006, the manufacturer of Cross pens introduced the golden toned Verve pen as featured in the Stormbreaker film. In James Bond fashion, the Cross pen serves as one of the key gadgets in the film. The use of the Cross pen is an example of

product placement

A CAD/CAM system is a(n)

production design and control system

The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product.

promotional mix

In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases. The Home Depot is engaged in

relationship marketing

According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that

the act will have a particular outcome and on whether the individual values that outcome