MGMT 309 - Exam 2 Review

Who sets Strategic goals? Who sets Tactical goals? Who sets Operational goals?

President/CEO - Top Managment Middle Managers Lower-level Managers

E*Trade facilitates stock transactions for its customers. Because E*Trade is a service organization, its operations process transforms resources into ___________.

intangible output

For each level of management listed below, indicate the type of goals managers at that level are responsible for setting. Middle management Lower-level management Board of directors Top management

Tactical Operational Mission Strategic

Given what you know about Twitter's plans, which one of Twitter's goals listed is a tactical goal?

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The corporation started as a manufacturer and distributor of gourmet candies, and it has worldwide brand recognition for this product. It has acquired a number of other businesses over the years, some in the food industry and some in different industries, and all have been less successful than hoped. The board of directors has informed you that key shareholders have little appetite for continued business failures. Based on this information, which corporate-level strategy would you lean toward?

Single-product strategy

In the planning process, what is the role of tactical goals and plans?

Links strategy and operations

While Matt likes the structure provided by the rational decision-making process, you caution him that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations? Check all that apply.

Managers often make decisions that are not based on facts and logic. Managers may lack the resources to explore creative solutions. Managers do not always evaluate situations logically.

A company's ____________ serves as an organizational plan, outlining how the company will create a competitive advantage.

Strategy

Technology is an important consideration in effective operations management. An organization can benefit from _________________, which is the process of designing work so it can be performed by machines.

automation

When referring to a SWOT analysis, the letter O stands for _______________, and it refers to factors that are ______________ to the organization.

opportunities external

One of your company's major competitors recently filed for bankruptcy, which has caused many of its customers to look for a new supplier. This presents your company with an ___________________.

organizational opportunity

Jill believes that, because her factory manufactures handbags, tote bags and shoes, and all three kinds of products need sewing, beading, and embroidering, the __________________ will be most efficient.

process layout

Leroy is head of supply chain management for Scott's, a producer of lawn chemicals that help prevent weeds and grow healthy grass. When he procures the materials needed to produce Scott's products, he is engaged in _______________________.

purchasing management

Decision-Making Steps

1. Define the decision. 2. Identify the alternatives.. 3. Evaluate the alternatives. 4. Select the best alternative. 5. Implement the chosen alternative. 6. Evaluate the results.

Which list of steps reflects the best order for the planning process?

1. Understand the environment. 2. Establish the organization's mission. 3. Set strategic goals. 4. Design strategic plans. 5. Set tactical goals. 6. Design tactical plans. 7. Set operational goals. 8. Design operational plans.

Indicate the level of each type of goal, with level 1 being the highest and level 4 being the lowest. Operational Tactical Mission Strategic

Level 4 Level 3 Level 1 Level 2

Service organizations transform resources into outputs just as manufacturing does. As manager of Hair's Why beauty salon, you have to decide how many clients can be seen by each stylist in a given day. What kind of decision is this?

A capacity decision

Groupthink occurs when a team desire for consensus overwhelms the desire to reach the best outcome. As a team leader, which tactic can you use to minimize the potential for groupthink in your team's decision making?

Assign at least one member to play the role of devil's advocate.

Craig manages the books for the Silver Spoon restaurant. In the past, he's hand-entered charges and payments into his accounting ledger. When his accountant reviewed his records, she found several errors. Which process should Craig seek to use to address this problem?

Automation

Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the following are advantages of group decision making? Check all that apply.

Better decisions usually result. Acceptance of the final decision is more likely.

Having successfully led a global diversification strategy for your organization, you have been asked to be the keynote speaker at a conference on globalization. Which of the following are advantages of diversifying internationally that you might cite in your address? Check all that apply.

Companies may be able to use one facility to serve a larger number of customers. After gaining entry to a country's market, companies may be able to leverage their presence in the country to expand their product offerings there. Companies may be able to locate their facilities closer to customers or to raw materials.

When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify:

Company strengths and weaknesses

I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment. I protect the privacy and security of our guests, my fellow employees and the company's confidential information and assets. I am proud of my professional appearance, language, and behavior.

Conformance Reliability Aesthetics

As a member of a team of subject matter experts in the management of engineering projects, you need to organize discussions in a way that facilitates participation by all the experts. Which team decision-making approach will be best in ensuring input from the team experts?

Delphi group technique

If the company has decided to use Miles and Snow's analyzer strategy, which of the following actions would best support this strategy?

Develop decision-making processes that optimize goal setting.

Which of the following factors should be classified as a threat for the team?

During the off-season, another team in the league signed players whose skills matched or exceeded those of the current champions.

The table below lists several steps involved in tactical planning. For each step listed, indicate whether it is associated with the development or the execution of tactical plans. Distribute resources to responsible parties Monitor activities Assess outcomes Identify human resource constraints Specify the resources available

Executing Executing Executing Developing Developing

Which one of the goals listed is an example of a strategic goal Twitter might set?

Expand globally with a focus on Latin America

Four aspects of a simple automatic control system

Feedback Information Sensors Control Mechanisms

In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. What must you do to ensure the party is developed successfully?

Include the party in the planning document for the United Way initiative.

Athena has been working at Taco Town for 15 years. She can't begin to tell you how many customers she's served, only that she sees more than 100 people a day at her store. Last week, Athena saw someone walking into the restaurant and instantly knew that he was going to cause trouble. She didn't think; she just automatically set off her silent alarm, and the police cars pulled up just as the customer pulled out a gun.

Intuition

Enrique knows that he will need to have documentation in order to measure results. Therefore, he plans to require all team members to log their time at work in 15-minute increments. Because this is a new procedure, you want to help Enrique anticipate possible concerns. Which major barrier to goal setting is most relevant for him to consider given what you know about this plan?

Resistance to change

Enrique wants to encourage his team members to accomplish the goal of learning a new skill each quarter. What should Enrique do?

Reward those who accomplish the goal.

Every year, your family poses for a photograph to be used in its holiday cards. To add interest to the photo, everyone wears an identical accessory: sometimes you all wear the same scarf, other times you all wear the same sweater. To avoid getting stuck with another item of questionable fashion taste, you proposed wearing a dark gray wool felt fedora this year. Everyone agreed the hat was a good choice, so you bought one for every family member.

Satisficing

Dogs Cash Cows Question Marks Stars

Sell company Take profits Invest cautiously Invest heavily

Given all of the factors listed in the preceding question, what strategy would make the most sense for the championship team as it prepares for the upcoming season?

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

For each of the following examples, identify whether it reflects a single-use plan or a standing plan. A plan to reorganize all of the jobs in an office A plan for designing a new computer application Instructions for completing time sheets Company guidelines that require employees to wear suits and ties (professional business attire) when interacting with customers

Single-Use Plan Single-Use Plan Standing Plan Standing Plan Standing Plan

If the company uses Porter's cost leadership strategy, what should marketing and sales emphasize?

The good value of the company's products

Netflix streams syndicated programming (programming that is developed elsewhere but that Netflix has arranged for the right to stream to viewers) and original programming (programming that Netflix plays a role in developing). Which types of inventory must Netflix have in place at any point in time to ensure it meets customer demand? Check all that apply.

Work in process Finished goods Raw materials

Zetsche said, "We have the ability and determination to level with the technology of European cars and the quality of the Japanese. And we have our styling capability on top of that." According to this statement, ________________ is the reason for the importance of quality.

competition

When Harry addresses decisions about where products and services are created, stored, and distributed, he is addressing the ________________ aspect of operations systems design.

facilities

ZombieSmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicate that ZombieSmith is using a(n) _______________ to gain a competitive advantage.

focus strategy

Jaime is considering how to best design the ___________________ of the manufacturing facility. She has to include space for storing materials, manufacturing, and storage.

layout

A fast-food business modifies its menu substantially in the different countries where it opens restaurants, as well as accommodating different expectations regarding customer service. This company probably uses a _____________________ strategy.

multidomestic

Mikaela started attending a Zumba class on Tuesday and Thursday afternoons and found that it gave her a good workout, so that has been her exercise routine every since. The _____________ involved in this decision-making process ensures Mikaela exercises on a regular schedule.

satisficing

Since its founding in 2002, Crocs has made shoes. It makes shoes for women, men, and children and for casual and work settings, but it doesn't make anything except footwear. Crocs is using _______________ strategy.

single-product

An operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as objectives). Although there are many specific types of operational plans, they can be broadly characterized as either single-use plans or standing plans. A program plan is an example of a _______________ , while a policy is an example of a _____________ plan

single-use plan standing plan

When you decide how to invest resources in your organization's operations, including its ability to make different quantities of different products and where it will make them, your most important consideration will be the organization's ________________.

strategy

Many companies are committed to make quality the guiding factor in everything they do. These companies follow a widely recognized philosophy known as _______________.

total quality management

If you are managing inventory of finished goods, which source of control should you use?

High-level production scheduling systems

You've decided to give the department with the most participation in the United Way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?

Goals motivate employees.

Identify whether the following activities are examples of business-level or corporate-level strategies. Google managers ask, "Which company should we acquire next to access new technologies and customers?" Cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company had acquired in the last year and determined how much money each acquisition was making for Cisco. They then decided which companies to keep and which to spin off. Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers. Managers at Annie's, a company that makes organic foods, are considering the best ways for the company to position i

Corporate-Level Strategy Corporate-Level Strategy Business-Level Strategy Business-Level Strategy

Amish has just created a new soft drink, which he calls "Punjab." Flavored with ginger and cumin, the drink cost $20,000 to develop, because of the need to get and verify patents and develop a unique bottle. Punjab has been on the market now for three years, and Amish has sold only 300 cases. However, this year, he is considering spending another $20,000 to develop a new marketing plan for his product. If he sells it in convenience stores only, it will have to sell more, right?

Escalation

Dmitri was asked to analyze businesses by classifying them as winners, losers, question marks, average businesses, and profit producers. He was most likely using the _________________.

GE Business Screen

GM retools its Detroit-Hamtramck factory to make electric motors and battery packs instead of engines and transmissions. The organization you work for revamps its performance evaluation and pay systems to measure and reward individual productivity. A manufacturing company makes small daily improvements in factory productivity by adjusting the workflow and processes.

Improve Operations Increase Employee Involvement Improve Operations

UNIQLO has had strong demand for its products and it entered the growth stage quickly. Which of the following challenges is most common during this stage?

Managing inventories

After you review the six steps with Matt, he asks for an example of how to evaluate alternatives as he decides whether VoxSigns should lay off employees. Which of the following is the correct example to give to Matt?

Matt would assess each option in terms of feasibility, satisfactoriness, and consequences; he will want to consider if the company is capable of implementing each option, as well as the resulting financial returns and other consequences (such as lower employee moral for remaining employees).

In 2020, Facebook announced plans to introduce a mobile gaming app designed for live gameplay. The app took several years to develop and was tested with users for 18 months before its release. The decision Facebook made to develop a mobile gaming app is a: Last spring, your spouse surprised you with a puppy (named Loki after the Norse god of mischief). Fortunately, the puppy gets along well with your 17 cats. The decision you make every day about whether to feed Loki is a: An accounting firm is deciding whether to renew the lease at its current building or relocate to one several blocks away. This requires considering whether the current prestigious address is worth paying higher rent, the inconvenience and expense of moving the office, and a variety of other factors. This is a: An accounting firm is deciding whether to renew the lease at its current building or relocate to one several blocks away. This requires c

Programmed Decision Programmed Decision Nonprogrammed Decision Programmed Decision

UNIQLO tries to monitor its competitors' actions, but notices that one of these competitors seems to shift strategies often and does not anticipate trends in the environment. Which type of strategy does the competitor appear to have?

Reactor

You need to improve delivery time to customers. Which of the following should you do? Check all that apply.

Reduce cycle time Identify new technologies that could improve process speed through the production process.

You are developing a plan for your department to use when replenishing supplies needed to accomplish ongoing activities. What type of plan should you create?

Standard operating procedure

The table lists several goals that might be set by a restaurant chain. Indicate the type of plan that would be developed to achieve each goal. We will develop advertising campaigns to promote our community focus. We will install new refrigeration units to maintain the freshness of our ingredients. We seek to partner with farms located in the regions in which we are located.

Tactical Operational Strategic

When giving advice to employees, managers might use the expression, "Work smarter, not harder." Businesses can raise productivity by investing more hours in production (either by having more employees working or having employees working more hours, respectively) or producing more in the same period through innovative advances in process. Which of the answers that follow best explains why this mantra is relevant for managing productivity?

This mantra suggests that employees have some control over production by identifying process improvements (rather than simply working more or working faster).

Which term refers to the overall indicator of how well an organization uses all of its resources such as labor, capital, materials, and energy to create all of its products and services?

Total factor productivity

Jack's coffee shop and three other mom-and-pop stores formed ___________ to oppose plans for opening a large chain store on their street.

a coalition

Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were deciding on a pricing strategy for the company's chocolate bars but no other company products. This is a _______________ strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply.

business-level Evaluate the intensity of competition and competitors' pricing of candies. Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

UNIQLO is a clothing manufacturer and retailer with over 800 stores in Japan and nearly 1,400 stores in other countries. Its casual styles are priced inexpensively, with many items made from innovative fabrics. Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. Selling a large quantity of relatively few products can help to increase economies of scale. This tactic is associated with _____________.

overall cost leadership

Imagine that your friend Amara has lived all her life in Yuma, Arizona, and has never traveled far from her hometown, but has applied to colleges in Idaho, Michigan, New Hampshire, and Florida. Despite her ________________, Amara thought moving to a previously unexplored city might be interesting.

state of uncertainty

Which of the following factors are relevant for successfully executing tactical plans? Check all that apply.

Each decision maker must have the information and resources necessary for getting the job done. The manager needs to evaluate every possible course of action in light of the goal. The manager must monitor ongoing activities derived from the plan to be sure the results are as expected.

Sam owns a small cafe that faces competition from a new restaurant across the street. Sam may want to perform a SWOT analysis, or a systematic evaluation of the internal and external environments, to inform his __________________

strategy formulation

Hair's Why transforms clients aesthetically, but it doesn't create a tangible outcome such as a good. What kind of operations takes place at Hair's Why?

Service operations