MGMT Midterm Exam 2 Study Guide

Imani, the CEO of Dynamic Health, wants managers and employees to instruct each other about the organization's chosen values and beliefs. Imani wants to embed the company culture throughout. Which of the following would be encouraged by Imani? A) George tells a story about a time when the company was first starting out and how the employees banded together. B) Cara designs a plan to be sure diverse cultures are hired in the agency. C) Sophie creates a system that values attendance and productivity. D) Craig sees the company logo as changing into a superhero because the company name is Dynamic Health. E) Juan posts comparison charts in the break room comparing Dynamic Health sales with other competitors.

A

_______ is the arrangement of having discrete parts of a task done by different people: An organization chart A common purpose A contingency approach An employee structure A division of labor

A division of labor

Strategic position emerges from three sources: A) (1) low-profit margin, many customers; (2) no needs, many customers; and (3) broad needs, few customers. B) (1) few needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers. C) (1) no needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers. D) (1) high profits, many customers; (2) low profits, few customers; and (3) broad needs, many customers. E) (1) high-profit margin, few customers; (2) few needs, many customers; and (3) broad needs, few customers.

B

An organization should adopt planning and strategic management to: A) decrease costs and increase synergy. B) keep employees happy, encourage new ideas, and decrease costs. C) provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage. D) develop MBO, encourage new ideas, and increase profits. E) provide encourage new ideas and increase organization diversity.

C)

Espoused values are: A) a narrative based on true events, which emphasize a particular value. B) physical manifestations of an organization's core beliefs. C) the values and norms actually exhibited in the community. D) explicitly stated values and norms preferred by an organization. E) profit and cost expectations stated in the business plan.

D

An offensive strategy is a grand strategy that involves reduction in the organization's efforts. For example, some large publishers are no longer publishing children's books because they are too expensive to produce and distribute, and because the profit margins are too low to justify the investment. (T/F)

False

Being aware of your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made. (T/F)

False

To achieve a sustainable competitive advantage, La Grand Parfumerie (a company that develops women's perfumes and men's colognes) must benchmark its competition so that La Grand Parfumerie can produce the same products as its competition but at a lower price. (T/F)

False

Two advantages of decentralization are that (1) managers are encouraged not to solve their own problems, but rather to ask for assistance as soon as possible, and (2) decisions are made more deliberately because they are discussed at a higher level of management. (T/F)

False

Bridget, the youngest owner of a family-owned restaurant, wants to make sure her company's culture is embedded in their organization. In a recent tradeshow workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employees. (T/F)

True

Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization. (T/F)

True

The owners of a computer repair shop want to better formulate strategies, so they are doing a SWOT analysis to understand the strengths and weaknesses within their company and the opportunities and threats of the external environment. These are some of the benefits of doing a SWOT analysis. (T/F)

True

Cynthia, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years she has received extensive training in matters of workplace ethics. Due to Cynthia's legal background (she is a member of the local bar association), the management of her company rely on Cynthia to assist them with legal issues, especially with ethical dilemmas. The ideal role for Cynthia within the organization is: oversight specialist. whistle-blower. ombudsman officer. ethics officer. proprietary officer.

ethics officer

Evidence-based management includes making decisions based on what actually works versus what ought to work. (T/F)

True

In the office of every general manager of Sleep Tight Motels there is a small poster that reads, "We want to become the only place our customers want to stay for the night while traveling." This is the vision statement for Sleep Tight Motels. (T/F)

True

McAllister's Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. However, Mrs. McAllister also offers weekly workshops in her store on topics such as canning, healthy eating, and how to grow a garden, which no other store in the county does. By offering these unique workshops, the McAllisters are engaging in strategic positioning. (T/F)

True

Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests, while nonprofit organizations are formed to offer services to some clients, not to make a profit. (T/f)

True

Prior to opening his business, Francois, the owner of The Crepe Factory, is writing a document that explains the reason for his business. This statement would be a part of his mission statement. (T/F)

True

Strategy implementation is putting strategic plans into effect, which means dealing with roadblocks within the organization's structure and culture and seeing if the right people and control systems are available to execute the plans. (T/F)

True

Taylor, a district manager for a retail pharmaceutical store, asked his store managers for their store goals next year. Zoe, one of the store managers, said, "I am going to increase my market share significantly next year by visiting doctors' offices." Taylor then responded to Zoe with "Precisely how much are you going to increase your market share and by what date?" Taylor is asking Zoe to formulate a SMART goal. (T/F)

True

To start work every day, Tran sits down and sets his goals for the day and then he decides how to achieve them, formulating future courses of action to achieve the specified results. This is the definition of planning. (T/F)

True

A goal is: a type of mission statement. a type of plan. a norm that can result in organization synergy. a specific commitment to achieve a measurable result within a stated period of time. the purpose of the organization.

a specific commitment to achieve a measurable result within a stated period of time

Karyn is thinking about switching where she purchases the cups for her hot beverages. Which of Porter's competitive forces can she leverage? threats of new entrants bargaining power of buyers threats of substitute products or services bargaining power of suppliers rivalry among competitors

bargaining power of suppliers

A ____ is a graph of decisions and their possible consequences. decision structure corporate hierarchy resolution graph decision-result assessment decision tree

decision tree

Quality Vacuum has been manufacturing excellent vacuum cleaners for over 50 years. In the employee break room is a banner that reads, "We will always provide the highest-quality vacuums at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders." This statement is Quality Vacuum's: heart pact. objective statement. vision statement. code of ethics. mission statement.

mission statement

Frank is a CPA who became interested in helping adults in some of the poorer neighborhoods file their taxes. He plans to start a tax filing center in a low-income area to help residents file their taxes at no cost. Frank's center is an example of a(n): nonprofit organization. for-profit organization. association. coop. union.

nonprofit organization

A(n) ______ is a system of consciously coordinated activities or forces of two or more people: task plan culture closed system hierarchy of authority organization

organization

A(n) ________ is a standing plan that outlines the general response to a designated problem or situation: order norm statement policy ethical value standing rule

policy

Sophie, a shift manager in a shoe store, has 40 employees on her shift that she directly supervises. The 40 workers who report directly to Sophie represent her: unity of command. hierarchy of authority. span of direction. span of control. division of labor.

span of control

A(n) ________ is the declaration that expresses what the organization should become and where it wants to go strategically: vision statement objectives statement code of ethics management code mission statement

vision statement