Managment 301
Planning begins with
situational analysis.
Renee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. Several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. The company has given Renee the opportunity and responsibility to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this ________ team.
skunkworks
A(n) ________ differs from an entrepreneurial venture in that it is not managed aggressively, and its owners expect normal, moderate levels of sales, profits, and growth.
small business
When appliance retailers discount barbecue grills and air conditioners in the winter months to compensate for the usual drop in sales, they are employing the concept of
smoothing
Why would a manager of marketing for a shopping mall be concerned with demographics of actual and potential mall visitors?
so that she can attract retailers that sell products that appeal to the age, gender, and income levels of mall visitors
Your network of friends, relatives, friends of friends, and social media contacts is a valuable resource when looking for new job or business opportunities. The goodwill that arises out of these relationships is known as
social capital.
Preston rejects Jose for the position of customer-relations manager because of his perception that Mexicans are disloyal. This is an example of ________.
stereotyping
The planning level with the longest time horizon is known as ________ planning.
strategic
Which of the following takes place after a firm formulates its strategy?
strategy implementation
A(n) ________ illustrates the four key drivers of a firm's long-term success and shows how goals in each area are linked to others.
strategy map
In Michael Porter's competitive environment model, the five parts of the model are
suppliers, new entrants, customers, substitutes and complements, and rival firms.
In the early 1980s, Phillip Thompson was a manager at Unilever, South Africa, in charge of soap making. The plant manufactured toilet soaps, laundry soaps, and other soapy detergents sold in most of the countries of Southern Africa. He was responsible over three departments, each with 3 managers, for a total of 9 managers reporting to him. The departments operated on a three 8-hour shift day, 24/7 basis. Thompson's job involved taking the long range goals and plans of Unilever presented to him by his superior, the Vice President for Operations, and translating them into ideas and strategies that the managers who report to him can implement in their departments. In that capacity Thompson was most likely involved at which level of decision-making?
tactical
Scott is the business head of a software development firm that wants to increase its market share to 30 percent in the next 5 years. The company feels that the best way to go about this is to acquire smaller firms that have a promising talent pool. In his capacity as the director of the business unit, with several manager reporting to him, Scott is required to plan how the company will arrange for the necessary finances for these acquisitions. Scott is engaging in ________ for the firm.
tactical
Companies that want to grow often
tap into international markets.
Which of the following skills are more important for a person at the beginning of his/her person's career?
technical
Which of the following aspects of organization culture will tell you what the firm's desired public image is?
the corporate mission statement
Which of the following e-commerce business models brings buyers and sellers together and charges a commission for each sale?
the intermediary model
Sam, an investigative reporter, refused to name his story's sources when pressed by authorities. As a result, he was imprisoned. From prison, Sam told his mentor, "I value my personal principles as a journalist more than I value my freedom." According to Kohlberg's model of cognitive moral development, Sam is in
the principled stage.
What is greenwashing?
the use of misleading marketing claims about the ecological benefits of products
Benchmarking is the process of assessing how well one company's basic functions and skills compare with
those of another company.
What is the role of a devil's advocate in constructive conflict?
to criticize ideas and point out problems
Two years after launching her firm's new strategy. Lara reflected that it had not had the positive impact that she had envisioned. Looking back, Lara recalled that she and her executive team—all strong leaders and managers—had worked behind closed doors for months to create a strategy that was concise, easy to understand, and supported by all. The executive team had rolled out the strategy in impressive fashion, and she knew that her middle-level and frontline managers were good communicator, collaborators, coordinators, and implementers. Among the barriers to strategy implementation, what went wrong?
top-down or laissez-faire senior management style
Corporate social responsibility is defined as the obligation
toward society assumed by business.
A manager following the ideal process for ethical decision making is most likely to begin the process with
understanding all moral standards.
A concentric diversification strategy is a strategy
used to add new businesses that produce related products or are involved in related markets and activities.
Which ethical system states that the greatest good for the greatest number should be the overriding concern of decision makers?
utilitarian
Southwest Airlines entered the commercial aviation industry when relatively few, mostly wealthy people could afford to fly. When CEO Herb Kelleher declared that Southwest Airlines wants to 'democratize' the airline industry. he was stating the airline's __________.
vision
In a SWOT analysis, the lack of spare production capacity would be considered a(n)
weakness
Ideally, there should be no retaliation against a(n) ________ who reports ethical problems through proper channels made available by an organization for that purpose.
whistleblower
Milton Friedman would have agreed with which of the following statements about social responsibility?
A company that contributes to social causes in the name of corporate social responsibility is taking money away from its real owners - the shareholders.
Claiming that managers are 'hired guns,' this theory asserts that there may be a conflict of interest between them and the real owners of the firm, the shareholders. Firms must safeguard themselves against the possibility of managers serving their own self-interests instead of the interests of the owners.
Agency theory
Which of the following is a key difference between an entrepreneur and an intrapreneur?
An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support.
Some companies allow employees free time during work hours to do mess around and what they'd like to do. This practice, intended to encourage them to come up with new ideas, is known as __________
Bootlegging
Why would introducing a new drug to the market be considered 'high risk' in the Entrepreneurial Strategy Mix?
Both A&B (Financial Investments are too high + competition is intense)
________ refers to a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed.
Bounded rationality
_______ is the extent to which consequences are focused on a few individuals or dispersed across many.
Concentration of effect
Which of the following occurs when a person rises higher in a company?
Conceptual skills become more important than technical skills.
Which of the following is a reason that companies decide to innovate?
Consumers' tastes change all the time.
________ include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.
Contingency plans
________ refers to a structured debate comparing two conflicting courses of action.
Dialectic
Contingency planning is a scenario where a firm has in place
Different strategy alternatives available for different environmental scenarios
________ comes into play when a manager makes a decision with a bias weighing short-term costs and benefits more heavily than longer-term costs and benefits.
Discounting the future
The Unilever acronym EARN stands for
Effective Application of Resources to Need
What do Austrian economist Joseph Schumpeter describe as "creative destruction?"
Entrepreneurship
________ refers to how the phrasing of a problem or decision alternatives can be more influential than objective facts.
Framing effect
Question How do we coordinate the various functions? How do we compete, given the business? What business should we be in?
Functional Level Strategy / Business Level Strategy / Corporate level strategy
This law states that states that when it comes to decision making and problem solving, managers tend to spend a greater part of their time solving routine problems and leave little time for non-routine problems. But the latter are the ones most likely to bring higher returns to the corporation.
Gresham's Law
________ occurs when people in a meeting choose not to disagree or raise objections because they do not want to break up a positive team spirit.
Groupthink
________ refers to people's belief that they can influence events even when they have no power to determine what will happen.
Illusion of control
Which of the following is true about social entrepreneurship?
It creates economic value and social benefits simultaneously.
Which of the following is true of the modern approach to quality?
It focuses on preventing defects before they occur.
Which of the following is true of operational planning?
It identifies specific plans and procedures.
What is the major problem with the goal, "We will become the best in the business"?
It is not specific enough.
Who among the following most likely possesses the key characteristics of a successful entrepreneur?
Juana is very innovative and knowledgeable and believes that she would be a successful entrepreneur.
Kenneth is a manager for a content management firm. He realizes that the firm requires five technicians to maintain and update the firm's servers. Which of the following actions would suggest that Kenneth is developing objectives and criteria according to the classical model of decision-making?
Kenneth decides that these technicians require 5 percent interpersonal skills, 50 percent technical knowledge, 15 percent motivation, and 30 percent problem solving ability.
________ workers are those who primarily contribute their ideas and problem-solving expertise.
Knowledge
Ticket Booth Cinemas and New World Theaters merge, bringing together two organizations with very strong cultures. What is one of the likely outcomes?
Longstanding habits and beliefs of the two companies are likely to clash.
If a product or unit is classified as a Cash Cow product/unit in the Boston Consulting Group (BCG) Matrix, at which stage of the Product Life Cycle (PLC) is it likely to be?
Maturation
16. For a company to be able to sustain its competitive advantage, its resources must possess all of the following qualities except being ____________
Non-subtitutable
The ____ model is the most appropriate model to use when top management wishes to obtain the most general perspective of the environment of a country that it wants to enter.
PLC
Which of the following managers most closely follows the philosophy of utilitarianism?
Pedro tries to make the decisions that will bring the greatest benefits to both his employees and his customers.
________ provides individuals and work units with a clear map to follow in future activities.
Planning
Which of the following is true about the principal managerial functions applicable to modern organizations?
Planning involves the determination of a program of future activities designed to achieve organizational objectives
Which of the following is true of a company's response to societal trends?
Responding to social trends can affect a company's reputation in the marketplace.
The _____ model is used to analyze the conditions that prevail in the general environment; while the ________ model is used to analyze the conditions in the industry environment.
SEPTED, Five forces
Which of the following is one among the six major components of the strategic management process?
SWOT analysis
_ is the tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results.
Satisficing
_____ is the tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results.
Satisficing
________ groups are consumer, environmental, and similar activist groups that attempt to influence the industry.
Social interest
What are S.M.A.R.T. goals?
Specific Measureable Attainable Realistic Time-bound
Which of the following is true of strategic planning?
Strategic plans have a strong external orientation.
Stan decided to lie to a client to convince him to close a deal. Which of the following is the most probable consequence of Stan's lying?
The client will lose respect for Stan in the long run.
Which of the following is true of the role of the economic environment in the success of entrepreneurial ventures?
The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.
Tiyona Motors plans to introduce a fast, stylish car to its fleet that management hopes will appeal to high-end buyers and grant Tiyona entry into the luxury market. Based on this scenario, what possible outcome should Tiyona be prepared for?
The financial investment will be high, and the competition will be heavy.
Malik wants to create a vision statement for his pizza and pasta chain. What should Malik be sure to remember in creating the statement?
The vision statement should be inspiring to organization members.
Which of the following is characteristic of frontline managers?
They are the link between management and nonmanagement personnel.
How do managers under time pressure best make decisions that are both timely and high quality?
They focus on real-time information and monitor daily operating measures on work in process.
Which of the following would characterize an active relationship with your employer?
You think about how you can contribute and act accordingly.
Which of the following is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it?
a business plan
A catering company manager is proposing the purchase of a new van to enable the company to handle more deliveries. She is working on ________.
a capital expenditure budget
Michael Porter, a noted authority on strategic management, said that successful managers
act in ways that shape or change the organization's environment.
Entrepreneurs can assemble a group of people to help them learn the basics of business and build relationships with bankers, accountants, and attorneys. Such a group is called a(n)
advisory board.
Prior to entering the Eastern European markets, Procter & Gamble assessed the opportunities and threats from competitors and non-competitors in those markets. Procter & Gamble's actions can be classified as ________
analyzing the external environment
Prior to entering the Eastern European markets, Procter & Gamble assessed the opportunities and threats from competitors and non-competitors in those markets. Procter & Gamble's actions can be classified as ________.
analyzing the external environment
Robinson Products, Inc., is faced with unprecedented uncertainty in its marketplace, due to changing consumer tastes. Kaitlyn Sims' sales team is struggling to decide on needed changes in the firm's long-term marketing strategy. To spark constructive conflict and develop new ideas among her team members, Kaitlyn
appoints a team member to take a devil's advocate position in evaluating ideas.
Which of the following is a characteristic of the management function of organizing?
assembling and coordinating resources needed to achieve goals
Carl, lab manager for MedEx Pharmaceuticals, told his research chemist, "Mandy, you have my blessing to use company equipment on evenings and weekends to create new products and processes of your own choosing and initiative. I know that this will result in some lost time, but I also know that it will contribute to learning and, ultimately, some profitable innovations." Carl's advice to Mandy is an example of
bootlegging
Some companies allow employees free time during work hours to do mess around and what they'd like to do. This practice, intended to encourage them to come up with new ideas, is known as __________
bootlegging
Rafael is the art director of Blyss Sleepwear, a company that designs and manufactures high fashion pajamas, loungewear, and lingerie. He meets with his creative team to brainstorm ideas for their fall-winter catalogue. How could Rafael best encourage the most creative and exciting ideas from his team?
by establishing an open atmosphere in which team members feel free to express their craziest ideas because they know they will not be judged
A catering company manager is proposing the purchase of a new van to enable the company to handle more deliveries. She is working on ________.
capital expenditure budget
The BCG matrix categorizes businesses within a conglomerate's portfolio as dogs, stars, question marks, and
cash cows.
Which of the following is one of the five higher goals of a transcendent education?
civil aspiration
Which of the following is one of the most important processes of knowledge management?
collaborating
Which of the following is an ongoing challenge in the current business landscape?
collaboration across organizational boundaries
Which of the following refers to the immediate environment surrounding a firm, including suppliers, customers, rivals, and new entrants?
competitive environment
Which of the following best refers to a company mechanism designed to prevent, detect, and punish legal violations?
compliance-based ethics programs
_____ is the extent to which consequences are focused on a few individuals or dispersed across many.
concentration of effect
When General Electric, which was mainly in the light bulb industry, decided to expand by acquiring the TV network NBC, which was in the broadcast news industry, such an acquisition could be called _____________
conglomerate diversification
Which of the following is one of the five key factors that entrepreneurs are required to have thought through?
context
Which of the following refers to the alternative courses of action that can be implemented based on how the future unfolds?
contingency plans
Which of the following is an example of a cooperative strategy to influence the environment?
contractual marketing systems
McDonald is in the fast-food industry, Sony is in the TV industry, Disney is in the entertainment industry, and Ford is in the automobile industry. All the statements define the _________-level strategy for these companies?.
corporate
A company's CEO puts pressure on his/her firm's R&D managers to develop products that can be created cheaply. The firm would be following a ________ strategy:
cost leadership
The internal environment includes
culture and climate.
Which of the following is a challenge facing managers?
dealing with accelerated decision-making, technological changes, and globalization.
Faisal is the general manager of Neptune's Landing, a seafood restaurant with two locations in his city. On a busy weekend night when the restaurant is short-staffed, he has to take on the role of a disturbance handler several times. Which of the following is Faisal most likely to be engaged in as part of this role?
dealing with irate customers and conflicts between overworked servers and kitchen staff
The planning process is similar to the ________ process in that both have a series of steps that are typically repeated in a cycle.
decision-making
The planning function for the new business environment is described as
delivering strategic value.
Hesitation to invest in promising research and development that will not pay off until far into the future is an example of
discounting the future.
SweetStay Inc. is a hospitality corporation that runs three chains of hotels in the United States. Recently, in the face of sinking market share, SweetStay reduced its dependence on the U.S. market by opening resorts in Asia. This is an example of
diversification
Slow Joe is a successful coffee importer and distributor. The company recently branched out and announced a series of unique coffee-flavored candies that will soon be available across all supermarkets. Which of the following is Slow Joe trying to do in this case?
domain selection
Which of the following is a macroenvironmental factor that can affect an organization?
economic recession
Actions and policies based on corporate social responsibility take into account stakeholders' expectations and often consider the triple bottom line, which includes
economic, social, and environmental performance.
Chad believes that a behavior is acceptable whenever it produces the maximum benefits for himself. What system does Chad follow?
egoism
Which of the following is a demographic factor of an organization's macroenvironment?
employees' ages
When an enterprising individual pursues a lucrative opportunity, it is known as
entrepreneurship.
Complexity and dynamism in the environment result in
environmental uncertainty.
A(n) ________ involves having to make a choice between two competing but arguably valid options.
ethical dilemma
Which phase comes immediately before making a choice in the decision-making process?
evaluate alternatives
Which of the following is a characteristic of a strong culture?
everyone believing in the firm's practices
Ronda Rousey attends the groundbreaking ceremony of a new children's hospital as the representative of her corporation, which gave a large donation toward the construction of the hospital. Which of Mintzberg's managerial roles is Rousey fulfilling?
figurehead
An entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow the business and a partner who manages a new store of the same type in a new location is called
franchising
Which of the following should be the second phase in an ideal six-phase decision-making process?
generating alternative solutions
Which of the following terms refers to the condition that causes new goals to replace the original ones?
goal displacement
Legitimacy increases the probability of success of a new business by
helping a firm acquire resources such as top managers and good employees.
When analyzing the "W" in SWOT analysis, Roberta, the manager might be assessing:
high turnover of employees
Marisol is a middle-level manager at Crawford and Williams, a corporate recruiting agency. Recently, the company partnered with an outside company, EQ Seminars, Inc., to offer a four-week seminar called "Developing your EQ." Which of the following skills did Marisol most likely learn during the seminar?
how to identify her communication strengths and weaknesses.
Two basic ethical ideas underpin the Caux Principles: kyosei and
human dignity.
Marco, the owner of a struggling flower and gift shop called Bloom, wants to review his company's processes and has decided to do a benchmarking study. What actions would you expect Marco to perform?
identifying best practices of the competition and comparing to his own business to determine gaps
For a company to be able to sustain its competitive advantage, its resources must possess all of the following qualities except being ____________
imitable
In addition to the creation of sustainable economic development, which of the following is a goal of ecocentric management?
improvement of the quality of life worldwide for all organizational stakeholders
Which of the following is the organizational decision process model in which major solutions arise through a series of smaller decisions?
incremental model
Which of the following is a potential disadvantage of group decision making?
individual domination
The fact that Carnival Corporation has access to more than $1.7 billion in cash & short-term investments has the strongest impact on which aspect in the company's Value Chain?
infrastructure
Which of the following provides a way to raise capital through federally registered and underwritten sales of shares in the company?
initial public offering
Raw materials, human resources, energy, equipment, financial resources, and information are ________ for an organization.
inputs
Which of the following best refers to a company mechanism designed to instill in people a personal responsibility for ethical behavior?
integrity-based ethics programs
José, a manager, has an open door policy and encourages his staff to drop in whenever they have a question. José is exercising ______ skills.
interpersonal
josé, a manager, has an open door policy and encourages his staff to drop in whenever they have a question. José is exercising ______ skills.
interpersonal
Corporate entrepreneurs are also called
intrapreneurs
What is the major problem with the goal, "We will become the best in the business"?
it is not specific enough
By compensating for past discriminations, affirmative action plans can be said to fall under which general guideline of moral decision-making?
justice
Liz told her boss, "Dan, many of our senior staff will be retiring within five years. We can't afford to have the combined expertise, skills, wisdom, and relationships of these retirees walk out the door without first discovering and sharing these intellectual resources. I recommend that we implement a(n) ________ system to harness this intellect."
knowledge management
One of the common challenges entrepreneurs face is
lack of enjoyment in what they do.
Ronaldo's manager told him, "Preliminary data suggest that our new fuel produces less air pollution than conventional fuels. However, we need to understand the total environmental impact of its production and use. I want you to perform a(n) ________ to quantify the total use of resources and total environmental releases, 'cradle-to-grave,' associated with our new fuel."
life-cycle analysis
Which ethical framework asks employees to consider how they would feel seeing their actions highlighted in the media?
light of day
In order to take a more complete approach to achieving total quality, a company should
live out a philosophy of continuous improvement in operations.
Which of the following is part of achieving cost competitiveness?
lowering costs to increase profits
If a product or unit is classified as a Cash Cow product/unit in the Boston Consulting Group (BCG) Matrix, at which stage of the Product Life Cycle (PLC) is it likely to be?
maturation
Which of the following is considered an informational role of managers?
monitor
Which of the following features of transcendent education emphasizes viewing success not merely as personal gain, but a common victory?
mutuality
Mack Roberts, CEO of Ball Systems, is performing duties of a top-level manager when he
negotiates the acquisition of a global competitor to strategically grow Ball Systems' market share.
Giselle wants to apply the differentiation strategy to build competitive advantage in her plumbing company. Of the strategies below, which one best exemplifies the differentiation strategy?
offering a free hour of service to first-time customers
Titles such as assistant manager and supervisor typically belong to the _____ level of management.
operational
The way people within a company dress and act, their interactions with each other and with customers, and the qualities expected and appreciated by their managers and company are examples of the
organization culture.
Green Zoom Corp., a company that manufacturers fuel-efficient scooters, has been operating as a business for a year. The CEO, Halim Abdul Jabar, started his venture by deciding on the activities that would be involved and what his goals and objectives for the business were. He then started to recruit professional engineers and other personnel. When he started to group them according to their job responsibilities, he was performing the _____ function of management.
organizing
Interpersonal and communication skills are sometimes known as
people skills.
In the pyramid of global corporate social responsibility and performance, doing what is desired by global stakeholders forms the top part of the pyramid and is known as a(n) ________ responsibility.
philanthropic
Newly promoted BBA graduates sometimes expect the employees they supervise to be obedient for obedience's sake. The level of personal moral development for which this statement is an example is the __________ level according to Kohlberg.
preconventional
In competition, a complement is best described as a(n)
product that is often used with another product.
McLaughlin and Ferris is an accounting firm that has a stiff, bureaucratic structure. The company has a promotion scheme where people who have finished a certain number of years in service get a pay hike and a promotion. For the human resources manager at McLaughlin and Ferris, this decision highlights which of the following types of decisions?
programmed
Business incubators are
protected environments for new, small businesses.
When a manager must decide between several attractive options, or when there are no attractive options, he or she experiences ________ conflict.
psychologicalCorrect
In the BCG matrix, high-growth, weak-competitive-position businesses are called
question marks.
In making ethical decisions, moral awareness refers to
realizing that the issue has ethical implications.
When a manager bases ethical behavior on the opinions and behaviors of relevant other people, the philosophy is best described as
relativism.
"Within our industry, we have world-class talent, great name recognition, and a sterling reputation. Over the next five years, I want us to upgrade our manufacturing plants and further develop our proprietary designs and products. As we accumulate these ________, our firm's performance will be enhanced," said Suzette Coleman, Chief Operating Officer.
resources
Which of the following is an example of an entrepreneurial opportunity categorized under economic dislocations?
rising oil prices
In the decision-making process, ________ refers to choosing the first option that is minimally acceptable or adequate.
satisficing