MGMT Exam 1
Three Essential Business Functions:
1. Marketing - generates demand 2. Production / Operations - creates the product, executes the business plan 3. Finance/accounting - tracks how well the organization is doing, pays bills, collects the money
Which of the following is an example of a standing plan?
A sustainability policy
Which of the following refers to the applications in an organization that managers use to gain information that can assist their decision making?
An information system
The degree to which information is relevant to the current decision being made is called information _______.
Appropriateness
The Fine Feline Co. produces decorative collars for cats. Last week employees worked 320 hours and produced 32,000 cat collars. This week the workers worked the same 320 hours, but produced 33,600 cat collars. Labor productively increased by _______ over last week.
Cat collars produced last week in 320 hours= 32000 This week cat collars produced in 320 hours= 33600 Increase in cat collars unit= 33600 - 32000= 1600 Increase in labor productivity= Increase in units/initial production= 1600/32000= .05 = 5%
A credit card-processing firm would be likely to list the following competitive priorities for its external customers:
Consistent Quality
Monitoring and measuring organizational performance- Determining if organization should be modified to meet pre-established standards
Controlling (Think Quality Assurance)
A ________ process is a set of activities that delivers value to external customers.
Core
Which of the following represents the first step in the strategic management process?
Environmental Analysis
United States business operations (i.e., product design) in an international area based on the local standard rather than U.S. standards is an example of a decision based on _______ considerations.
Ethical
Only the operations function part of an organization must design and operate processes that are part of a supply chain and deal with quality, technology, and staffing issues. (T or F)
False
The effective operation of a firm and its supply chain is NOT as important as the design and implementation of its processes. (T or F?)
False
The Role of Management-
Guide organizations toward goal accomplishment- Combine and use organizational resources to ensure organizations achieve their purpose- Encourage individual activities are focused on reaching organizational goals- Focus on activities or other factors that may get in the way of goal achievement
The low-cost source for service labor for the world is
India
- Working with people within organizations- Guiding the activities of organization members in appropriate directions
Influencing
Which of the following scenarios illustrates an order winner?
Ken had always been fascinated by shiny objects, so he plucked the chrome-plated thermos from the shelf and raced to the nearest checkout line.
Ann's of Austin produces a premium Passion Fruit sorbet for local restaurants. Ann has unit costs of $1.60 per gallon (labor, 80 cents; materials, 70 cents; and overhead, 10 cents) and she sells the product for $2.00 per gallon. What is her multifactor productivity?
LABOR = 80 MATERIAL = 70 OVERHEAD = 10 OUTPUT = 2 MULTIFACTOR PRODUCTIVITY = OUTPUT / TOTAL INPUT = 2 / (80 + 70 + 10) = 0.0125
A process produces 6,000 units of output that yield $5.00 per unit. Resources contributed to this output are 200 hours of labor at $15.00 per hour, materials at $750, and overhead at $250. What is the labor productivity (in units per labor-hour)?
Labor Productivity = Total Output/ Total Input = 6000/200 = 30units per labor-hour
Which of the following statements about productivity is correct?
Multifactor inputs must be expressed in a common unit of measure.
is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization." (Investopedia.com, n.d.)
Operations Management
Determining tasks and groupings of work- Assigning tasks to individuals in the organization
Organizing
Setting organizational goals- Identifying actions to achieve the goals
Planning
Which management function precedes and is the basis for other management functions?
Planning
The time period during which production processes increase volume in order to meet customer demands while coping with quality problems and last-minute design changes is called
Ramp up
Each function of an organization has its own identity and yet is connected with operations through shared processes. (T or F?)
True
A firm that competes using the development strategy of innovation is characterized by
a need to be a first-mover.
The process of predicting future environmental issues is primarily accomplished through
forecasting
______ are the fundamental activities that organizations use to do work and achieve their goals.
process
Threat of new entrants
refers to the ability of new firms to enter an industry; as the threat of new entrants increases, the attractiveness of the industry decreases.
Threat of substitute products
refers to the extent to which customers use products or services from another industry instead of the focal industry. As the threat of substitute products increases, which implies that customers have more choices, the attractiveness of the industry decreases.
Intensity of rivalry
refers to the intensity of competition among the organizations in an industry. As the intensity of rivalry increases, the attractiveness of the industry decreases
Buyer Power
refers to the power that customers have over the firms operating in an industry; as buyer power increases, the attractiveness of the industry decreases
Supplier Power
refers to the power that customers have over the firms operating in an industry; as buyer power increases, the attractiveness of the industry decreases
If "every process and every person in an organization has customers," then _______.
some customers are external and some are internal.
When taking steps to increase power, the perception can be created that the employees are dependent on the manager. The strategy is to convey clearly the amount of _____ the manager has over organizational _____.
Authority, Resources
In the BCG Growth-Share Matrix, which matrix quadrant is categorized as having a large share of a market that is growing only slightly?
Cash Cow
______refers to the resources and ability a firm has to undertake an action.
Competitor Capability
Facts or statistics crucial to the controlling process are called
Data
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
Suppose you wanted a planning tool to schedule resources, including human resources and the use of machinery over time, and you wanted it in bar graph form. Which of the following would be the best tool?
Gantt chart
What is the affirmative purpose of planning?
Increasing organizational success
Which term refers to computers and telecommunication devices that allow for the use of information in the performance of work?
Information technology
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
When setting organizational objectives, a(n) ________ objective is intended to be achieved in five to seven years.
Long-term
Which term refers to a strategy intended to strengthen or protect the amount of business a strategic business unit is currently generating?
Retrenchment
The process of determining how to best achieve organizational objectives is known as ________.
Strategy Formulation
Which method of sales forecasting is based on the informal but informed opinions of managers?
The jury of executive opinion method
The core processes in a value chain must add value for the external customers, while support processes
are also part of the value chain.
The finance function influences operating decisions about
capacity expansions
Which of the following compares a company's internal strengths with external opportunities?
SWOT analysis
Which of the following is an example of a single-use plan?
a budget
The foundation for managing processes and value chains is
Operations Strategy
In the strategic management process, putting strategies into action is done through____.
Strategy Implementation
In Porter's Five Forces Model, ________ refers to the ability of new firms to enter the industry.
Threat of New Entrants
A customer service package would exclude which of the following?
marketing
In market analysis, the needs assessment step identifies
product/service attributes.
The amount of information a manager has that is decision-related is called information _______.
quantity
When Will tries to boot up his work computer, it loads very slowly. This is a ______ that suggests his computer may have a major issue such as a virus.
Symptom
involves outlining what the different parts of an organization should do in order to be successful at some point one year or less into the future.
Tactical Planning
Any type of equipment or process that organization members use in the performance of their work is called ________.
Technology
Under Porter's Five Forces Model, what happens when the threat of substitutes increases?
The attractiveness of an industry decreases.
The idea that an organization must have the information it requires soon enough that it can be used to take action and gain the related benefit is referred to as information _______.
Timeliness
Operations strategy translates service or product plans and competitive priorities for each market segment into
decisions affecting the processes that support those market segments.
What do all processes have?
inputs & outputs
Which of the following events from the twentieth century defines the history of operations and supply chain management?
A. The invention of the assembly line for the Model T car by Henry Ford. B. Alfred Sloan's introduction of strategic planning for achieving product proliferation and variety. C. The Toyota Production System for removing wasteful activities from an organization. D. All of the above.
Which of the following suggests that managers should provide funds for planning only when they anticipate a reasonable return on investment?
Commitment Principle
How a firm undertakes strategic and tactical actions, and competitors' responses to those actions, is referred to as ________.
Competitive Dynamics
Which management function is involved with ensuring that an event occurs as it was intended to occur?
Controlling
Managerial activity aimed at bringing organizational performance up to the level of performance standards is called ________.
Corrective Action
Walmart's strategy focuses on offering lower prices than its competitors. This is an example of which generic strategy?
Cost leadership
Which of the following considerations is not involved in developing a corporate strategy?
Developing a staffing plan for the upcoming production period
Which of the following outcomes is not a direct result of a market analysis?
Development of core competencies
The element of the general environment that indicates how resources are being distributed and used in the environment is the ________ component.
Economic
At the end of a particular operating period, suppose Brenda (the manager) sits down with Ethan (the employee) and they meet to determine how well Ethan's performance has met the objectives set by Brenda. Which step in the MBO process would this be?
Evaluate performance
Which tool is designed to identify and analyze forces that determine competitiveness within an industry?
Five Forces Model
Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their competitive capability related to
Flexibility
Which of the following is a strategy that targets a particular customer in order to make the organization more competitive?
Focus
Which of the following is a behavior that makes the controlling process more effective?
Implementing timely corrective action
When management outlines its commitment to new methods of operation, what type of objective is being set?
Innovation
When setting organizational objectives, a(n) _____ objective is intended to be achieved in one to five years.
Intermediate
Which of the following 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
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
Decisions that relate to ensuring that specific organizational tasks are carried out correctly are called _______ decisions.
Operational Control
The purpose for which an organization exists is its
Organizational Mission
Which term refers to the target toward which the open management system is directed?
Organizational objective
Dylan is a small business owner and she is currently involved in the strategy implementation step of the strategic management process. Dylan has the ability to readily understand the fears and frustrations of her employees when it comes to strategy implementation. Dylan possesses the _____ skill.
Organizing
Which of the following are characteristics of service provider operations?
Perishable Outputs
Monique has strong relationships with her subordinates, which allows her to have significant influence on how they do their jobs and engage in work-related behaviors. This is an example of which type of power?
Personal
Raul is a manager who wants to make sure his subordinates know how he will determine whether an objective has been reached. On which guideline for establishing objectives is Raul focusing?
Pinpointing expected results
Which term refers to developing action programs for the purpose of accomplishing business objectives?
Planning
The power that a person gains from holding a particular position in the organization is known as ________ power.
Position
Total power is made up of two types of power: _______ and _________.
Positon, Personal
Robert is a manager who is able to convince his employees to work late. This is an example of Robert using
Power
Which term refers to any factor within an organization that is a barrier to an organizational goal?
Problem
Regardless of how departments and functions are individually managed, they are always linked together through
Process
The Generally Accepted System Security Principles (GASSP) offer five key principles for information system managers. Which of the following is NOT one?
Profit Principle
A manager is concerned with the degree to which the information she has related represents what is actually occurring. This manager is primarily concerned about information _______.
Quality
Which type of forecast is focused on how many products will be sold to consumers over a specified time period?
Sales Forecast
During the ________ stage of the product life cycle, sales are primarily based on the need to replace products.
Saturation
______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
Ellie is crafting strategy for her online business. She is currently involved in tactical planning and she is examining the next six months. This time period would be considered
Short Range
Demographics, the statistical characteristics of a population, are reflected in the _________ component of the general environment.
Social
At the Holiday Hotel, maids are told they need to completely clean a room in 5 minutes or less for their performance to be considered adequate. This specific time limit would best be described as a
Standard
Which of the following steps in the planning process would include examining the overall economy when forming objectives?
Stating organizational objectives
Decisions that tend to focus on the entire organization, cutting across departmental lines, and have long-term consequences are called
Strategic
is the last step of the strategic management process and consists of monitoring and evaluating the strategic management process as a whole to ensure that it is operating properly.
Strategic Control
A manager is making a decision related to the future objectives of the organization as a whole. This would likely be characterized as a(n) _______ decision.
Strategic Planning
Long-range planning that focuses on the organization as a total unit is called _______.
Strategic Planning
A significant organizational segment that is analyzed to develop strategies for generating future business or revenue is known as a
Strategic business unit
Which of the following is the fundamental purpose of planning?
To help the organization reach its objectives
SSS is a local restaurant serving the needs of college students, faculty, and staff. The manager is considering adding a website so carry-out customers can order in advance more easily. Which process would be a core process in this new undertaking?
Web Design
At which step would a manager develop strategic and tactical plans in the planning process?
When developing plans to pursue the chosen alternative
An effective way of gaining a global presence when one firm has a core competency that another needs but is unwilling (or unable) to duplicate is
a collaborative effort.
Which type of plan supplies broad guidelines for action that support organizational objectives?
a policy
Information is best defined as ________.
a set of conclusions derived from data analysis
Core competencies reflect the collective learning of the organization. Core competencies include
a well-trained, flexible workforce.
Darren is the supervisor in a manufacturing facility that produces desks and chairs. Control of quality and output is his responsibility. To ensure that he is following the controlling process, after measuring the performance of his employees, he must _____, and then take any corrective action necessary.
compare measured performance to standards
Technological change is proceeding at a rapid rate, but there are many challenges such as
employees may resist technological change if it is not managed well.
Selecting the transportation mode (train, ship, truck, airplane, or pipeline) and scheduling both in-bound and outbound shipments is typically accomplished by which supply chain process?
logistics
The three mainline functions of any business are
operations, marketing, finance
Which core process includes the activities required to produce and deliver the service or product to the external customer?
order fulfillment process
General Electric (GE) has _____, which include the type of training programs that GE employees should undergo to expand their skill set.
personnel development standards
