Management Test 2

When setting organizational objectives, a(n) _______ objective is intended to be achieved in five to seven years

long-term

Which term refers to developing action programs for the purpose of accomplishing business objectives

Planning

How a firm undertakes strategic and tactical actions, and competitors' responses to those actions, is referred to as ________

Competitive dynamics

Which tool is designed to identify and analyze forces that determine competitiveness within an industry?

Five Forces Model

When management outlines its commitment to new methods of operation, what type of objective is being set

Innovation

What step in the management by objectives process involves the manager and the worker checking to see whether the objectives are being reached

Monitor progress

The purpose for which an organization exists is its

Organizational mission

Which of the following is an example of a standing plan

A sustainability policy

Which of the following is an example of a single-use plan

A budget

Which of the following is used to evaluate decisions that are complicated or involve a series of steps

A decision tree

Which type of plan supplies broad guidelines for action that support organizational objectives

A policy

Which of the following is unique to the nominal group technique compared to the other discussed group decision processes

Each member writes down ideas on the issue being discussed

The ability to provide resources necessary to strategy implementation is done with

Allocating skills

Why are strategic plans less detailed than tactical plans?

Because strategic plans are based on a prediction of the future

The departure from rational theory that can result in less than optimal decisions is known as

Bias

The group decision-making process in which negative feedback is banned until all members have presented an alternative is known as

Brainstorming

Which of the following is NOT a major limitation on the number of problem-solving alternatives available

Brainstorming factors

Which of the following suggests that managers should provide funds for planning only when they anticipate a reasonable return on investment?

Commitment principle

To best understand what is happening both internally and externally to the organization, and to increase the probability of developing organizational strategies that reflect the organizational environment, a(n) ________ analysis should be undertaken

Environmental

Which of the following represents the first step in the strategic management process?

Environmental analysis

Jackie is looking to make a decision on which new product her company should put to market next from a group of alternatives. She beings by removing the least desirable alternatives from the set. What technique for considering alternatives is Jackie using?

Exclusion

Decision makers who are willing to steal ideas as necessary to make good decisions have a(n) _____ orientation to the decision-making process

Exploitative

Which of the following is a key disadvantage of group decision making

Group decisions can be of lower quality because of groupthink

Which of the following is a key advantage of group decision making?

Group members perceive the decision as their own and are more likely to take responsibility for it

Laws such as the Clean Air Act, the Affordable Care Act, and the Consumer Products Safety Act are considered part of the ________ component of the general environment

Legal

Which guidelines for establishing objectives focuses on helping a worker to be better motivated in carrying out an objective

Let the people responsible for attaining the objectives have a voice in setting them

When setting objectives for where a firm would like to be in comparison to competitors, what key area of objectives is being considered

Market standing

When implementing strategy, the ability to network people who can solve implementation problems is accomplished through _______ skills

Organizing

Audrey tends to believe that her forecasts are better than they really are. This illustrates a decision-making bias known as

Overconfidence

Which of the following terms describes the negative effect of having too many alternatives

Paradox of choice

Wallace is a decision maker at an organization and is unsure of what will be the outcome of an alternative in a simple decision situation. What decision-making tool would be most helpful for Wallace considering his predicament

Probability theory

Which of the following refers to the steps a decision maker takes to arrive at a decision

Rational decision-making process

Which term refers to a strategy intended to strengthen or protect the amount of business a strategic business is currently generating?

Retrenchment

Which type of forecast is focused on how many products will be sold to consumers over a specified time period

Sales forecast

______ involves developing a list of activities and following time tables for the purpose of attaining an objective

Scheduling

Which of the following is an advantage of using an MBO approach?

Securing employee commitment to reaching organizational goals

Demographics, the statistical characteristics of a population, are reflected in the _______ component of the general environment

Social

A significant organizational segment that is analyzed to develop strategies for generating future business or revenue is known as a

Strategic business unit

Under Porter's Five Forces Model, what happens when the threat of substitutes increases?

The attractiveness of an industry decreases

The basic element of decision making that focuses on deciding the best course of action among potential solutions is called

The choice of alternatives

Which type of decision-making orientation attempts to use all the organization's talents and is characterized by reason and sound judgment

The ideal decision-making orientation

_____ has/have been described as being slow, comprehensive, and deliberate, whereas _____ is fast and automatic

The rational decision-making process; intuition

In Porter's Five Forces Model, _____ refers to the ability of new firms to enter the industry

The threat of new entrants

Which of the following is the fundamental purpose of planning

To help the organization reach its objectives

At which step would a manager develop strategic and tactical plans in the planning process

When developing plans to pursue the chosen alternative

Which of the following would be considered a non-programmed type of decision

Whether the organization should expand its market to Africa

The process of predicting future environmental issues is primarily accomplished through

forecasting