MGT-300 test 2

If you are happiest being a "hands-on" professional rather than becoming a manager, you may prefer a(n) ______ career. A. steady-state B. portfolio C. spiral D. inclining E. linear

A

Turnbull Software is a medium-sized but growing company that works diligently to create a supportive and familylike atmosphere for its employees. It provides superior benefits and involves employees in decisions large and small. Turnbull has a(n) ______ culture. A. clan B. adhocracy C. market D. hierarchy E. espoused

A A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement.

Which of the following is an example of a nonprofit organization? A. The Humane Society B. American Medical Association C. The Democratic party D. State Farm Insurance E. Teamsters Union

A A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.

Which of the following is not a question that Bossidy and Charan believe a strong strategic plan must address? A. How will deviations from the plan be handled? B. What is the assessment of the external environment? C. What are the critical issues facing the business? D. Can the business execute the strategy? E. Are the short term and long term balanced?

A According to Bossidy and Charan, a strong strategic plan addresses nine questions, among them: What is the assessment of the external environment? What are the critical issues facing the business? Can the business execute the strategy? Are the short term and long term balanced?

Which of the following cultural perspectives leads to the highest long-term financial performance? A. Adaptive perspective B. Fit perspective C. Market perspective D. Conditional perspective E. Strength perspective

A An investigation of 207 companies from 22 industries from 1977 to 1988 partly supported the strength and fit perspectives. However, findings were completely consistent with the adaptive perspective. Long-term financial performance was highest for organizations with an adaptive culture

Creation of alternative hypothetical but equally likely future conditions is called A. contingency planning. B. trend analysis. C. balancing the scorecard. D. strategy formulation. E. forecasting.

A Contingency planning, also known as scenario planning and scenario analysis, is the creation of alternative hypothetical but equally likely future conditions.

______ values are the explicitly stated values and norms preferred by an organization. A. Espoused B. Inherent C. Enacted D. Expressed E. Internalized

A Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top managers.

Among the jobs titles at Greensboro Regional Hospital are Chief of Medical Services, Director of Administrative Services, and Director of Outpatient Services. Greensboro has a ______ structure. A. functional B. network C. simple D. divisional E. matrix

A In a functional structure, people with similar occupational specialties are put together in formal groups. For Greensboro these would include administrative associates, outpatient employees, and people who provide medical care.

An organization that contains two command structures, and in which some people actually report to two bosses, is a ______ structure. A. matrix B. bifunctional C. team-based D. hybrid E. network

A In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal. For example, a marketing person may report to both the vice president of marketing and to the project manager for the Ford Mustang.

Montpellier Mediterranean Designs has decided that, as part of the fashion industry, it should move to a more organic structure. Montpellier should A. simplify and eliminate rules and procedures. B. centralize authority. C. clearly define job responsibilities. D. disband teams and task forces. E. focus on improving uniformity.

A In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. It is preferred by companies that need to respond to fast-changing consumer tastes, as is the case in fashion.

Apple's iPad has a very high percentage of the market for tablet computers, and this is also a quickly growing market. Thus, using the BCG matrix, the iPad would be classified as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

A In the BCG matrix, stars have high growth and high market share, and are definite keepers.

With a ______ structure, the organization has a central core of key functions and outsources others to vendors who can do them cheaper or faster. A. hollow B. matrix C. spine D. hybrid E. mechanistic

A In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster (see Figure 8.11).

Which of the following can be classified as a mutual-benefit organization? A. Trade association B. Hospital C. Financial company D. Retail company E. College

A Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations).

Organizational ________ is concerned with devising the optimal structures of accountability and responsibility that an organization uses to execute its strategies. A. design B. structure C. life cycle D. charting E. culture

A Organizational design is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies. We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open boundaries between organizations.

The skills and capabilities that give the organization advantages in executing strategies in pursuit of its mission are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

A Organizational strengths are the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

The obligation you have to perform the tasks assigned to you is called A. responsibility. B. accountability. C. delegation. D. authority. E. position power.

A Responsibility is the obligation you have to perform the tasks assigned to you.

Katsuro started a tax consulting business with his friend Carey. They have a small space in a strip mall and one administrative assistant. At which stage of the organizational life cycle is their business? A. Birth stage B. Introduction stage C. Adolescent stage D. Youth stage E. Midlife stage

A The birth stage is the non-bureaucratic stage, the stage in which the organization is created. Here there are no written rules and little if any supporting staff beyond perhaps a secretary.

An organization is developing a low-cost line of environmentally friendly cleaning products that it intends to distribute internationally. Here, the organization is following a ______ strategy. A. cost leadership B. differentiation C. cost focus D. retrenchment E. focused-differentiation

A The cost-leadership strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.

Timex Group USA makes inexpensive but reliable watches sold throughout the United States and is an example of an organization pursuing a _________ strategy. A. cost-leadership B. differentiation C. cost-focus D. focused-differentiation E. retrenchment

A The cost-leadership strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.

Which of the following carmakers pursues a focused-differentiation strategy? A. Ferrari B. Ford C. Volkswagen D. Honda E. Kia

A The focused-differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market.

Which of the following is a stage in the life of an organization? A. Birth B. Decline C. Elderly D. Introduction E. Growth

A The four-stage organizational life cycle has a natural sequence of stages: birth, youth, midlife, and maturity.

Public relations firm Crowley Communications has a single full-time employee, Jolene Crowley, who is in charge of contracting teams to work on projects as needed. Teams are spread throughout the United States and are made up of specialists linked by computers and telecommunications equipment. This is an example of a(n) ________ organization. A. virtual B. network C. outsourced D. modular E. hollow

A The virtual organization is one whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections, while often appearing to customers and others to be a single, unified organization with a real physical location.

Which of the following is a type of objective for MBO? A. Profitability B. Personal development C. Market share D. Social responsibility E. Ethics

B

According to Bossidy and Charan, which business process is most important for effective execution? A. Strategy B. People C. Alignment D. Operations E. Research

B A company's overall ability to execute is a function of effectively executing according to three processes: people, strategy, and operations. Because all work ultimately entails some human interaction, effort, or involvement, Bossidy and Charan believe that the people process is the most important.

In which type of culture do employees adhere to the organization's values because they believe in its purpose? A. Fit B. Strategic C. Conditional D. Adaptive E. Strong

B A culture is said to be "strong" when employees adhere to the organization's values because they believe in its purpose. Strong cultures are believed to create goal alignment, employee motivation, and the appropriate structure and controls needed to improve organizational performance.

A vision or projection of the future is called a(n) A. trend. B. forecast. C. contingency. D. strategy. E. opportunity.

B A forecast is a vision or projection of the future.

Southwest Airlines employees all know about when CEO Herb Kelleher visited one of the airline's hangars in the middle of the night in a dress with a purple boa—just to liven things up. In fact, this is part of Southwest's history. This is an example of using a ________ to impart organizational culture. A. myth B. story C. ritual D. rite E. value

B A story is a narrative based on true events, which is repeated to emphasize a particular value. Stories are oral histories that are told and retold by members about incidents in the organization's history.

One of the typical devices for transmitting culture, a(n) ______ is an object, act, quality, or event that conveys meaning to others. A. icon B. symbol C. sign D. representation E. ritual

B A symbol is an object, act, quality, or event that conveys meaning to others. In an organization, symbols convey its most important values.

__________ means that managers must report and justify work results to managers above them. A. Liability B. Accountability C. Delegation D. Hierarchical control E. Position power

B Accountability means managers must report and justify work results to the managers above them.

Which of the following is a characteristic of a simple structure? A. Comprehensive set of rules. B. Centralized authority. C. High work specialization. D. Extensive division of labor. E. Tall hierarchy.

B An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.

Which of the following is an example of an observable artifact of organizational culture? A. Mission statements B. Awards ceremonies C. Basic assumptions D. Codes of ethics E. Core beliefs

B At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.

Technical specialization and division of labor in an organization lead to ________ in an organization. A. bureaucracy B. differentiation C. integration D. conglomeration E. decentralization

B Differentiation is the tendency of the parts of an organization to disperse and fragment. This impulse toward dispersal arises because of technical specialization and division of labor.

The arrangement of having discrete parts of a task done by different people is called an organization's A. coordinated effort. B. division of labor. C. span of control. D. chain of command. E. matrix structure.

B Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.

The "HP Way" at Hewlett-Packard fostered a culture of integrity, teamwork, and innovation that complemented the high-technology industry of the time. This is an example of which perspective? A. Strength perspective B. Fit perspective C. Match perspective D. Conditional perspective E. Adaptive perspective

B Hewlett-Packard's "HP Way" culture from 1957 to the early 1990s pushed authority as far down as possible in the organization and created an environment that emphasized integrity, respect for individuals, teamwork, innovation, and an emphasis on customers and community improvement. This fit perspective was a key contributor to HP's success.

Xerox Corporation is currently in what stage of its organizational life cycle? A. Decline stage B. Maturity stage C. Adolescent stage D. Youth stage E. Adult stage

B In the maturity stage, the organization becomes very bureaucratic, large, and mechanistic. The danger at this point is lack of flexibility and innovation, something Xerox must contend with.

The benefit of the single-product strategy for a company is A. synergy. B. focus. C. isolated systems. D. differentiation. E. lower costs.

B Making just one product allows you to focus your manufacturing and marketing efforts just on that product. This means that your company can become savvy about repairing defects, upgrading production lines, scouting the competition, and doing highly focused advertising and sales.

Which of the following is an example of a mutual-benefit organization? A. Federal Bureau of Investigation B. United Steelworkers of America union C. University of California at Berkeley D. U.S. Postal Service E. Public Broadcasting System

B Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations).

According to productivity expert Odette Pollar, which of the following should a manager delegate? A. Emergencies. B. Tasks that challenge subordinates. C. Special tasks your boss has asked you to do. D. Personnel matters. E. Confidential matters.

B Odette Pollar recommends that you delegate tasks that help your subordinates grow. Let your employees solve their own problems whenever possible. Let them try new things so they will grow in their jobs.

Environmental factors that the organization may exploit for a competitive advantage are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

B Organizational opportunities are environmental factors that the organization may exploit for competitive advantage.

__________ refers to the idea that the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately. A. Structural benefit B. Synergy C. Selective function D. Alignment E. Consolidation

B Synergy is the economic value of separate, related businesses under one ownership, and management is greater together than the businesses are worth separately.

An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.

B The differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors but to target a wide market.

Amanda has just determined that her employees will require extensive training if they are to acquire the necessary technological expertise to produce a new product line. She has discovered one of her firm's A. strengths. B. weaknesses. C. opportunities. D. threats. E. market challenges.

B The lack of technological expertise is a weakness of the organization.

Rashid has examined the environment in which his organization operates and has determined that currently the market demands an organic and integrated structure. Rashid did this as part of his A. environmental analysis. B. contingency design. C. life-cycle analysis. D. diversification plan. E. integration plan.

B The process of fitting the organization to its environment is called contingency design. Managers taking a contingency approach must consider environmental and life-cycle factors in designing the best kind of structure for their particular organization at that particular time.

Among the organizational cultures thought to enhance business performance, the ______ perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance. A. market B. strength C. fit D. objective E. adaptive

B The strength perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance.

Which of the following is not one of the mechanisms used to embed culture into an organization? A. Slogans or sayings. B. Accounting practices. C. Leader reactions to crisis. D. Titles or bonuses. E. Organizational structure.

B There are 11 mechanisms used to embed culture; among them are slogans and sayings, leader reactions to crisis, rewards like titles and bonuses, and organizational structure.

Elizabeth works with the gaming production team at her job, so the leader of that group often assigns her work, but she also has a boss in the marketing department. Which of the following is most likely true? A. There is likely to be a lack of common purpose among her managers. B. Her workplace has too much division of labor. C. Her work arrangement violates the unity of command principle. D. Because of her cross-functional team, her work can be done without coordinated effort. E. Her production team leader has too wide a span of control.

C A principle stressed by early management scholars was that of unity of command, in which an employee should report to no more than one manager in order to avoid conflicting priorities and demands.

A system of consciously coordinated activities or forces of two or more people is known as a(n) A. operation. B. culture. C. organization. D. structure. E. adhocracy.

C According to Chester I. Barnard's classic definition, an organization is a system of consciously coordinated activities or forces of two or more people. By this definition, a crew of two coordinating their activities to operate a commercial tuna fishing boat is just as much an organization as the entire StarKist Tuna Co.

Digital Globe is a technology company that provides advanced, high-resolution satellite pictures of the earth, digitalized for electronic use. As the military, governments, and others demand clear pictures, Digital Globe provides them immediately with its innovative and responsive products. Digital Globe is most likely an example of a(n) ______ culture. A. inventive B. clan C. adhocracy D. market E. hierarchy

C An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Adhocracy cultures are well suited for companies in industries undergoing constant change.

Which of the following is a consequence of decentralized authority? A. Greater uniformity B. Decreased efficiency C. Greater flexibility D. Slower decisions E. Decreased duplication of work

C An advantage in having decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

A time-series forecast, which is used to predict long-term trends, cyclic patterns, and seasonal variations, is one type of A. organizational strength. B. contingency planning. C. trend analysis. D. balanced scorecard. E. strategy formulation.

C An example of trend analysis is a time-series forecast, which predicts future data based on patterns of historical data. Time-series forecasts are used to predict long-term trends, cyclic patterns (as in the up-and-down nature of the business cycle), and seasonal variations (as in Christmas sales versus summer sales).

Which of the following is the way culture becomes embedded in an organization? A. Writing a strategic plan. B. Performing competitive analysis. C. Using a teaching process. D. Conducting formal market research. E. Following legal requirements.

C Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred values, beliefs, expectations, and behaviors.

Which of the following is not a device through which culture is typically transmitted to employees? A. Symbols B. Stories C. Strategic plan D. Heroes E. Rites and rituals

C Culture is transmitted to employees in several ways, most often through such devices as (1) symbols, (2) stories, (3) heroes, and (4) rites and rituals.

The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy is called A. designation. B. accountability. C. delegation. D. execution. E. allocation.

C Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

Time Warner runs different divisions specializing in television, music, and publishing. Time Warner is using a(n) ______ strategy. A. stability B. defensive C. diversification D. differentiation E. infiltration

C Diversification strategy means operating several businesses in order to spread the risk. Major entertainment/media companies follow this strategy.

A recent survey found that the top concern among CEOs worldwide is A. profit growth. B. customer loyalty. C. excellence in execution. D. stimulating innovation. E. finding qualified employees.

C How important is execution to organizational success in today's global economy? A survey of 769 global CEOs from 40 countries revealed that "excellence in execution" was their most important concern, more important than "profit growth," "customer loyalty," "stimulating innovation," and "finding qualified employees."

In a functional structure, people with ______ are grouped together. A. similar levels of authority B. temporary jobs on the same project C. similar occupational specialties D. jobs related to similar products E. jobs in the same geographic region

C In a functional structure, people with similar occupational specialties are put together in formal groups.

Galen is temporarily working with a group with membership from different departments in his company on a special project, yet he still has all of responsibilities of his regular job and still reports to the same manager. This is an example of A. matrix structure. B. work dispersion. C. horizontal design. D. hybrid workgroups. E. network clustering.

C In a horizontal design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries. Team members still have their full-time functional work responsibilities and often still formally report to their own managers above them in the functional-division hierarchy.

Rorschach Composites has precise requirements and very detailed procedures for creating small machine parts through an injection molding process. Because of the sensitive processes, employees are tightly monitored. Rorschach is a(n) ______ organization. A. hybrid B. integrated C. mechanistic D. flat E. organic

C In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

In an organic organization, A. authority is centralized. B. bureaucracy is essential. C. the need to respond to unexpected tasks is common. D. many rules and procedures exist. E. success is possible only when the environment is stable.

C In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

At which stage of the organizational life cycles does lack of flexibility and innovation become the danger to the business? A. Adult stage B. Birth stage C. Maturity stage D. Adolescent stage E. Youth stage

C In the maturity stage, the organization becomes very bureaucratic, large, and mechanistic. The danger at this point is lack of flexibility and innovation.

In what stage of the organizational life cycle does a firm increase its hiring, create some division of labor, and begin setting rules? A. Midlife B. Maturity C. Youth D. Growth E. Birth

C In the youth stage, the organization is in a pre-bureaucratic stage, a stage of growth and expansion. Now the company has a product that is making headway in the marketplace, people are being added to the payroll (most clerical rather than professional), and some division of labor and setting of rules are being instituted.

At Harvestar Farm Equipment, specialists from marketing, manufacturing, and engineering departments work closely together in cross-functional teams on new professional planting and harvesting equipment designs. Harvestar is an example of a ______ organization. A. highly differentiated B. centralized C. highly integrated D. mechanistic E. bureaucratic

C Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. In a highly integrated organization, the specialists work together to achieve a common goal. One of the means for achieving this is the use of cross-functional teams.

A formal chain of command, standardization of rules and procedures, and use of cross-functional teams enhance an organization's A. assimilation. B. differentiation. C. integration. D. decentralization. E. centralization.

C Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. The means for achieving this are a formal chain of command, standardization of rules and procedures, and use of cross-functional teams and computer networks so that there is frequent communication and coordination of the parts.

Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for A. situation analysis. B. strategy formulation. C. strategy implementation. D. contingency planning. E. strategic control.

C Often strategy implementation means overcoming resistance by people who feel the plans threaten their influence or livelihood. Thus, top managers can't just announce the plans; they have to actively sell them to middle and supervisory managers.

Which of the following is not a description of organizational culture? A. A system of shared beliefs and values. B. "Social glue" binding members together. C. A system of reporting relationships. D. An organization's personality. E. A system that guides the behavior of organizational members.

C Organizational culture, or corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members. This is the "social glue" that binds members together. Just as a human being has a personality, such as fun-loving, warm, uptight, competitive, so an organization has a "personality," too, and that is its culture.

Porter's competitive strategies include A. prospector, defender, analyzer, and reactor. B. growth, stability, and retrenchment. C. cost leadership, differentiation, cost focus, and focused differentiation. D. strengths, weaknesses, opportunities, and threats. E. stars, questions marks, cash cows, and dogs.

C Porter's four competitive strategies (also called four generic strategies) are (1) cost leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation.

On an organizational chart, a dotted line typically indicates a(n) A. outside company. B. line position. C. staff position. D. temporary employee. E. non-managerial employee.

C Staff personnel have authority functions; they provide advice, recommendations, and research to line managers (example: specialists such as legal counsels). Staff positions are indicated on the organization chart by a dotted line (usually a horizontal line).

An organization that keeps costs and prices low in targeting a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. stability. E. focused differentiation.

C The cost-focus strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.

An example of a firm that pursues a differentiation strategy is A. Cartier. B. Lexus. C. Bic. D. A regional discount gas station chain. E. Home Depot.

C The differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors but to target a wide market. Because products are expensive, managers may have to spend more on R&D, marketing, and customer service. This is the strategy followed by Ritz-Carlton hotels and the makers of Lexus automobiles.

An organization's ______ is a control mechanism for making sure the right people do the right things at the right time. A. central command B. division of labor C. hierarchy of authority D. span of control E. strategic plan

C The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.

At Caldwell Organic Grocers, all purchasing, hiring, and production decisions are made by top management. Caldwell has ______ authority. A. classical B. wide C. centralized D. for-profit E. matrix

C With centralized authority, important decisions are made by higher-level managers.

Which of the following statements is good advice for those transitioning upward in an organization? A. Don't try to manage upward or sideways. B. Invent your own kind of management style. C. Maintain good relationships with other departments. D. Enjoy the solitude of upper management positions. E. Focus on the rights and privileges of your new job.

C You need to have good relationships with managers in other departments and be perceptive about their needs and priorities since they have resources you need to get your job done.

When White Castle specifies exactly how to dress a hamburger, including the order of the condiments, this is called a A. program. B. policy. C. rule. D. procedure. E. project.

D

When a firm responds to uncertainty in its environment as a(n) ________, its continual pursuit of product and market innovation may lead to a loss of efficiency, but is likely to make competitors nervous. A. reactor B. analyzer C. defender D. prospector E. executor

D

Hollow, modular, and virtual structures lead to a ________ organization. A. functional B. network C. simplistic D. boundaryless E. matrix

D A boundaryless organization is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. Three types of structures in this class of organizational design are hollow, modular, and virtual structures.

Another term for the chain of command within an organization, as represented on an organizational chart, is A. reporting linkage. B. span of control. C. horizontal specialization. D. vertical hierarchy. E. network structure.

D A glance up and down an organization chart shows the vertical hierarchy, the chain of command.

A Ritz-Carlton beach attendant who surprised a couple with flowers, candles, and champagne for the man's proposal was able to transmit the culture of the luxury hotel to other employees, so he would be considered a A. champion. B. key employee. C. potential manager. D. hero. E. superior.

D A hero is a person whose accomplishments embody the values of the organization. The accomplishments of heroes, past and present, are put forth to motivate other employees to do the right thing. The Ritz-Carlton beach attendant is an example of one such hero.

Kia Motors takes a very aggressive stance to fire executives who don't meet sales goals, which makes the company an example of a(n) ______ culture. A. clan B. target-driven C. adhocracy D. market E. hierarchy

D A market culture has a strong external focus and values stability and control. Kia Motors, which fires executives who don't meet their sales goals, is an example of a company with a very aggressive and competitive market culture.

Goodwill Industries, a charity that provides training and employment services to the disabled, is which type of organization? A. Clan B. For-profit C. Mutual-benefit D. Nonprofit E. Market

D A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.

The competing values framework classifies organizational cultures into which of the following? A. Stable, flexible, and laddered cultures. B. Observable, flexible, competitive, and driven cultures. C. Symbolic, heroic, and basic cultures. D. Clan, adhocracy, market, and hierarchy cultures. E. Observable, espoused, and core cultures.

D According to the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market, and (4) hierarchy (see Figure 8.2).

According to Bossidy and Charan, effective ______ requires managers to build a foundation for it within three core process: people, strategy, and operations. A. tactical planning B. strategy C. follow-through D. execution E. controlling

D Bossidy and Charan outline how organizations and managers can improve the ability to execute. Effective execution requires managers to build a foundation for execution within three core processes found in any business: people, strategy, and operations.

Bossidy and Charan believe that to excel at execution, a leader should A. be hands-off once the strategy is set. B. micromanage the tactics. C. empower employees to take over the execution. D. probe for weaknesses in the substance and details. E. let the plan run its course before attempting to revise it.

D Bossidy and Charan point out, "The leader who boasts of her hands-off style or puts her faith in empowerment is not dealing with the issues of the day. Leading for execution is not about micromanaging. Leaders who excel at execution immerse themselves in the substance of execution and even some of the key details. They use their knowledge of the business to constantly probe and question. They bring weaknesses to light and rally their people to correct them."

Management at the De la Garza Recreational Products has recognized that the firm is much slower than the competition at getting new designs to market. The problem seems to stem from coordination problems between the various functional departments involved in the recreational vehicle design process. De la Garza should A. improve technical training for employees. B. formalize the division of labor. C. relax its rules and procedures. D. create cross-functional teams for development. E. cancel all social events for employees.

D De Garza needs to be more integrated; its specialists should work together to achieve a common goal. One of the means for achieving this is the use of cross-functional teams.

Which of the following is most likely to use a diversification strategy? A. A tax preparation business B. A flower shop C. A lawn service D. A grocery store E. A shoe store

D Diversification strategy means operating several businesses in order to spread the risk. A grocery store sells food, toiletries, pharmaceuticals, cards, flowers, and often more.

The Federal Reserve Bank has 12 separate districts around the United States, which means it is using ______ in its organizational structure. A. functional constituencies B. locality divisions C. site networks D. geographic divisions E. matrix regions

D Geographic divisions group activities around defined regional locations.

Arnos Engineering has a functional structure throughout the company but also has a second chain of command based on the part of the United States where one works. This organization has a ______ structure. A. bifunctional B. hybrid C. network D. matrix E. team-based

D In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal.

In a mechanistic organization, A. most communication is informal. B. many teams and task forces are operating simultaneously. C. authority is decentralized. D. tasks and rules are clearly specified. E. employees are joined through technology.

D In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

In a ______ structure, a firm assembles portions of product provided by outside contractors. A. compilation B. network C. outsourced D. modular E. hollow

D In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.

Information-technology companies such as Motorola favor a(n) ______ structure because they constantly have to adjust to technological change. A. mechanistic B. bureaucratic C. formalized D. organic E. tall

D In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. Information-technology companies such as Motorola favor the organic arrangement because they constantly have to adjust to technological change.

Which of the following strategy tools suggests that an organization will do better in fast-growing markets in which it has a high market share rather than in slow-growing markets in which it has a low market share? A. SWOT analysis B. Porter's model for industry analysis C. Porter's competitive strategies D. The BCG matrix E. Trend analysis

D In general, the BCG matrix suggests that an organization will do better in fast-growing markets in which it has a high market share rather in slow-growing markets in which it has a low market share. These concepts are illustrated in Figure 6.4.

When managers must be closely involved with their subordinates, they should have a ______ span of control. A. flexible B. wide C. flat D. narrow E. lean

D In general, when managers must be closely involved with their subordinates, as when the management duties are complex, they are advised to have a narrow span of control.

Daniel is assessing his company's portfolio of products. One of them is the best-selling brand of mayonnaise, although this is now a slow-growing market. If Daniel uses the BCG matrix, he would classify this product as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

D In the BCG matrix, cash cows have slow growth but high market share, and income from them often finances stars and question marks.

Good job design requires matching the level of responsibility to the level of A. liability. B. dependability. C. delegation. D. authority. E. position power.

D It is a sign of faulty job design when managers are given too much authority and not enough responsibility, in which case they may become abusive to subordinates and capricious in exerting authority. Conversely, managers may not be given enough authority, so the job becomes difficult.

Which of the following is a good reason to avoid delegating tasks? A. A wish to keep subordinates from taking risks. B. To avoid making subordinates deal with a difficult client. C. A desire to keep an enjoyable part of the job. D. A fear that sensitive personnel matters will not be kept private. E. A concern that subordinates could do a better job.

D Odette Pollar recommends that you don't delegate confidential and personnel matters: Any tasks that are confidential or that involve the evaluation, discipline, or counseling of subordinates should never be handed off to someone else.

Alexis has prepared a report that details how prices for several raw materials her firm uses in production have risen by up to 30% in the last year. Her report would be an input into the __________ part of a SWOT analysis. A. strengths B. weaknesses C. opportunities D. threats E. structure

D Rising costs for raw materials in an external threat to a company.

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as A. myths. B. stories. C. conventions. D. rites and rituals. E. values.

D Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life.

Which of the following is not one of the forces that affects industry competition, according to Porter's model for industry analysis? A. Threats of new entrants. B. Threats of substitute products and services. C. Bargaining power of buyers. D. Threats of government interference. E. Bargaining power of suppliers.

D Strategic-management expert Michael Porter suggested in his Porter's model for industry analysis that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.

When analyzing the "S" in a SWOT analysis, a manager might take note of A. a decrease in the size of the market. B. competitors' new products. C. high turnover of employees. D. strong financial resources of the firm. E. lifting of governmental regulations.

D Strengths of a company can include financial resources and requirements, which are an internal factor.

According to Lawrence and Lorsch, the ______ determine(s) the degree of differentiation or integration that is appropriate. A. resources available to an organization B. governmental pressures on an organization C. organization's culture D. stability of an organization's environment E. size of the organization

D The stability of the environment confronting the parts of the organization, according to Lawrence and Lorsch, determines the degree of differentiation or integration that is appropriate.

Hiromi started a new job with a growing consulting firm and was surprised to find that most employees had no job titles. A coworker explained that the founders wanted to create a level playing field, allowing motivated employees to seek leadership roles on a project-by-project basis. No job titles, here, is an example of A. stabilizing structure. B. measuring activities. C. increasing accountability. D. embedding culture. E. reinforcing hierarchy.

D There are 11 mechanisms used to embed culture; among them are provisions for rewards, titles, promotions, and bonuses.

Which of the following is not one of Bryan Barry's recommendations to keep a strategic plan on track? A. Keep moving. B. Engage people. C. Keep it simple. D. Avoid compromise. E. Stay focused.

D To keep a strategic plan on track, suggests Bryan Barry, you need to do the following: Engage people. Keep it simple. Stay focused. Keep moving.

Which of the following is not a likely source of information for competitive intelligence? A. Competitors' press releases B. Industry gossip C. Competitors' annual reports D. Competitor's customer records E. Sales visits to customers

D Gaining competitive intelligence isn't always easy, but there are several avenues and, surprisingly, most of them are public sources including the public prints and advertising, investor information, and informal sources. A competitor's customer records are not available publicly, nor would they yield much information about upcoming plans.

Cimarron Saddlery expects to improve profitability of the organization by 15% over the next three years. This is an example of a(n) A. supervision objective. B. operational goal. C. tactical goal. D. maintenance objective. E. strategic goal.

E

During which managerial function do you make a blueprint for action that describes what you need to do to realize your goals? A. Organizing B. Leading C. Controlling D. Defining E. Planning

E

MBO works by cascading objectives down through the organization, and these objectives become more ______ at lower levels of the organization. A. measurable B. challenging C. results-oriented D. attainable E. specific

E

Southwest Airlines acquisition of rival AirTran Airways may have been responsible for a sharp decline in on-time arrivals, which is one of Southwest's ________ goals, supporting a larger goal of being highly profitable. A. dependent B. strategic C. operational D. facilities E. tactical

E

Fonseca Construction Supply has product divisions for lumber, hardware, electrical supplies, and plumbing supplies. Each has its own production facility and sales staff. Fonseca is A. tightly integrated. B. bureaucratic. C. functionally organized. D. a matrix organization. E. highly differentiated.

E A company producing lumber, hardware, electrical supplies, and plumbing supplies and that has different product divisions, each with its own production facility and sales staff is a highly differentiated organization.

Which type of culture has an internal focus and values stability and control over flexibility? A. Clan B. Adhocracy C. Market D. Classical E. Hierarchy

E A hierarchy culture has an internal focus and values stability and control over flexibility.

A supervisor of an assembly line has 45 employees that report to her; this would be considered a(n) ______ span of control. A. unsustainable B. tall C. deep D. complex E. wide

E A wide span of control means a manager has several people reporting—a first-line supervisor may have 40 or more subordinates, if little hands-on supervision is required, as is the case in some assembly-line workplaces.

Which of the following is not a behavior of a leader who executes? A. Reward the doers. B. Insist on realism. C. Follow through. D. Know yourself. E. Respect others' limitations.

E According to Bossidy and Charan, there are seven essential leader behaviors that fuel the engine of execution. Rather than understand their limitations, you should expand people's capabilities

Although managers may wish to affect employees with explicitly stated values, they are frequently more influenced by ______ ones. A. subversive B. expressed C. espoused D. adopted E. enacted

E Although managers may hope the values they espouse will directly influence employee behavior, employees don't always "walk the talk," frequently being more influenced by enacted values, which represent the values and norms actually exhibited in the organization.

Hard-working people at insurance giant AIG joked that "thank heavens it's Friday because that means there are only two more working days until Monday." This is characteristic of which layer of organizational culture? A. Enacted norms B. Invisible artifacts C. Symbolic culture D. Heroic mores E. Basic assumptions

E Basic assumptions, which are not observable, represent the core values of an organization's culture. They are those that are taken for granted and, as a result, are difficult to change.

Durant Security operates across Florida and Georgia with a variety of products and services. It has a unit located in Tampa that provides home security to its clients, and another unit in Atlanta that provides security for businesses, in particular banks and high-technology firms. This is a ______ structure. A. functional B. simple C. geographic divisional D. matrix E. customer divisional

E Customer divisions tend to group activities around common customers or clients. Here, Herndon has home service clients and business clients.

Oil companies must be aware of other firms' development of ethanol products since this is an example of which one force in Porter's model for industry analysis? A. Bargaining power of buyers. B. Rivalry among competitors. C. Bargaining power of suppliers. D. Threats of new entrants. E. Threats of substitute products and services.

E In an example of the threats of substitute products or services, oil companies might worry that Brazil is close to becoming energy self-sufficient because it is able to meet its growing demand for vehicle fuel by substituting ethanol derived from sugarcane for petroleum.

Among the functions of organizational ________ are that it gives members an organizational identity and it promotes social-system stability. A. design B. structure C. life cycle D. charting E. culture

E Organizational identity and social-system security are among the four functions of organizational culture (see Figure 8.3).

_______ group activities around similar products or services. A. Output structures B. Matrix organizations C. Offering divisions D. Functional structures E. Product divisions

E Product divisions group activities around similar products or services.

What cultural perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes? A. Strength perspective B. Fit perspective C. Adjustment perspective D. Conditional perspective E. Adaptive perspective

E The adaptive perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes.

An organization that offers unique, superior products or services to a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.

E The focused-differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market.

As an organization goes through the stages of the life cycle, it becomes more A. informal. B. centralized. C. unstable. D. organic. E. bureaucratic.

E The four-stage organizational life cycle has a natural sequence of stages: birth, youth, midlife, and maturity. In general, as an organization moves through these stages, it becomes not only larger but also more mechanistic, specialized, decentralized, and bureaucratic.

Jennifer's staff enjoys working for her but thinks she is a perfectionist. She often thinks that she is the only one who can handle her division's difficult clients or handle some of the most sensitive issues, so she frequently has problems with A. responsibility. B. allocation. C. accountability. D. authority. E. delegation.

E To be more efficient, most managers are expected to delegate as much of their work as possible. However, a business entrepreneur may fall into the common trap of perfection, believing, as one writer puts it, that "you are the only person who can handle a given situation, work with a special client, design a program."

______ help you ignore extraneous matters in favor of focusing on what's important, which is realizing the goals on time and on budget. A. Deadlines B. Relationships C. Changes D. Networks E. Options

A

A grand strategy that involves reduction in the organization's efforts is the ______ strategy. A. retrenchment B. reorganization C. downsizing D. growth E. stability

A A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.

When analyzing the "O" in SWOT analysis, a manager might take note of A. favorable government regulations. B. absenteeism among employees. C. good morale among workers. D. high service levels. E. good financial position.

A A manager may be able to discover an opportunity in favorable government regulations.

Management instituted a new ______ in Yichao's workplace that "employees who are more than 15 minutes late to work without calling a supervisor will be given a written warning." A. policy B. rule C. procedure D. project E. program

B

Portia is meeting with her subordinates to determine which workers from her department need training in order to handle production increases expected during the next nine months. Portia is involved in A. vision development. B. operational planning. C. controlling. D. tactical planning. E. developing an MBO.

B

The constant feedback loop of the ______ is designed to ensure plans stay headed in the right direction. A. means-end chain B. planning/control cycle C. control system D. project management method E. project planning sequence

B

The goal to "improve the quality of customer service by instituting follow-up telephone calls this month" is not a SMART goal because it is A. unlikely to align with higher level goals. B. not measurable. C. too simplistic. D. not results oriented. E. unlikely to result in improvement to customer service.

B

Which of the following is not a typical cause of bad planning? A. Information overload. B. Inadequate planning budgets. C. Ineffective group dynamics. D. Poor assessment of an organization's capabilities. E. Faulty assumptions about the future.

B

Which of the following steps of the strategic-management process is the source of its feedback loop? A. Carry out the strategic plan. B. Maintain strategic control. C. Establish the grand strategy. D. Establish the mission and vision. E. Formulate the strategic plans.

B

________ goals are set by and for middle managers and focus on the actions needed to achieve ________ goals. A. Strategic; operational B. Tactical; strategic C. Strategic; tactical D. Tactical; operational E. Operational; tactical

B

When analyzing the "T" in SWOT analysis, a manager might take note of A. the firm's cash flow problems. B. a competitor's new product. C. employee absenteeism. D. strong corporate culture. E. high service levels.

B A competitor's new product may be a threat if it is likely to capture market share.

Computer technology corporation Dell recently acquired Quest software, an IT management software provider, in order to expand upon its software expertise and offerings. Dell is pursuing a(n) ______ strategy. A. escalation B. growth C. stability D. merger E. defensive

B A growth strategy is a grand strategy that involves expansion, as in expanding sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. In a variation of this strategy, it can acquire similar or complementary businesses.

A situational analysis is also known as A. strategic control. B. SWOT analysis. C. trend analysis. D. contingency planning. E. forecasting.

B SWOT analysis, also known as a situational analysis, is a search for the strengths, weaknesses, opportunities, and threats affecting the organization.

______ consists of monitoring the execution of strategy and making adjustments, if necessary. A. Mission translation B. Strategic control C. Strategy implementation D. Contingency planning E. SWOT analysis

B Strategic control consists of monitoring the execution of strategy and making adjustments, if necessary.

Recently ConocoPhillips, America's third-biggest oil company, spun off its refineries, pipelines, and chemicals division to form a new company called Phillips 66. Now ConocoPhillips will concentrate on its upstream operations. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

D A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. In a variation of this strategy, it can divest part of its business, as in selling off entire divisions or subsidiaries.

Which level of management is most often engaged in tactical planning? A. Working-level employees B. First-line managers C. Middle managers D. Top managers E. Consultants

C

Which of the following best represents a currently popular strategy among big companies like Apple, Google, and Amazon? A. Become involved in the community. B. Seek niches where there is less competition. C. Get consumers tightly connected to the company's ecosystem. D. Offer personal or emotional connections to customers. E. Discourage price comparisons.

C

Which of the following is one of the organizational responses organizations make when confronted with uncertainty, as identified by Miles and Snow? A. Aggressor B. Investigator C. Reactor D. Planner E. Leader

C

Which of the following statements about strategic planning and strategic management is true? A. Strategic planning is rarely used in the current environment of fast change because it does not allow for flexibility. B. Strategic management is a process completed by top managers. C. Both should be implemented because they can provide direction and momentum. D. Middle managers need not understand strategies; they simply follow them. E. Strategic planning is used to accomplish tactical goals.

C

Which of the following would best describe MBO? A. It works at the highest levels of an organization. B. It works at the lowest levels of an organization. C. Its purpose is to motivate employees. D. Its purpose is to control employees. E. It effectively benchmarks HR practices against competitors.

C

A fine luggage maker was struggling with heavy debt and a sharp decline in customers, and it eventually declared bankruptcy. The company followed which grand strategy? A. Growth B. Stability C. Defensive D. Reduction E. Reactive

C A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. In a variation of this strategy, it can declare bankruptcy.

After film manufacturer Kodak failed to reinvent itself and declared bankruptcy in 2012, it decided to focus on its business of making inkjet printers as part of a ______ strategy. A. growth B. stability C. defensive D. reorganization E. reactor

C A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. In variations of this strategy, it can declare bankruptcy or gradually phase out product lines or services.

High Peaks Skate and Snowboard is a small shop that provides equipment for Utah snowboarders in winter months. It has decided to increase advertising during this period in the Salt Lake Tribune and the Park Record in Park City, as well as to sponsor a new on-mountain competition. It is following which strategy? A. Inducement B. Defensive C. Growth D. Stability E. Enhancement

C A growth strategy is a grand strategy that involves expansion, as in expanding sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. In a variation of this strategy, it can increase its promotion and marketing efforts to try to expand its market share.

When analyzing the "W" in SWOT analysis, a manager might take note of A. a decrease in consumer demand. B. a competitor's bankruptcy. C. high turnover of employees. D. good financial resources of the firm. E. institution of a tariff on foreign competitors.

C High turnover of employees is an internal matter that is a weakness.

Rafaela is interested in learning more about what one of her competitors is doing so that she can anticipate its upcoming moves and react quickly. Which of the following would you suggest to her for this purpose? A. Go through the competitor's trash on its property. B. Pose as an applicant for a job with the competitor. C. Use investor information. D. Call the competitor, explain who you are, and ask directly. E. Pay the competitor's

C customers for information. Gaining competitive intelligence isn't always easy, but there are several avenues and, surprisingly, most of them are public sources including the public prints and advertising, investor information, and informal sources such as trade show gossip and tidbits from salespeople.

Which of the following would be considered a reason for adopting strategic management and strategic planning? A. To enhance employee loyalty. B. To keep corporate taxes at a minimum. C. To develop independent work from the staff. D. To provide develop a sustainable competitive advantage. E. To increase market dominance with repeat purchase.

D

Which of the following is a benefit of planning? A. Planning allows you to spend little time preparing for the future. B. Planning allows you to make all decisions without consulting superiors. C. Planning helps you compare your results to your competitors'. D. Planning helps the company to be spontaneous. E. Planning helps you cope with uncertainty.

E

Which of the following is a question that should be answered by a company's mission statement? A. Will it inspire enthusiasm and encourage commitment? B. Does it set standards of excellence? C. Is it appropriate for the organization? D. Is it well articulated? E. Who is our customer?

E

Which of the following is not a stage in the strategic-management process? A. Conduct a trend analysis. B. Maintain strategic control. C. Establish the grand strategy. D. Establish the mission and vision. E. Carry out the strategic plans.

A

Which of the following is not an area in which a company needs to get and stay ahead in order to sustain a competitive advantage? A. Talented employees B. Quality C. Effectiveness D. Being responsive to customers E. Innovating

A

A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n) A. defender. B. analyzer. C. adaptor. D. prospector. E. reactor.

A

A single-use plan encompassing a range of projects or activities is a(n) A. program. B. strategy. C. series. D. agenda. E. mission.

A

After setting goals, managers should next A. prepare an action plan for accomplishing the goals. B. propose changes to the goals of same-level managers to bring all into alignment. C. supervise subordinates closely. D. report failure to meet goals to superiors. E. begin the planning process anew.

A

Avon, the world's leading direct seller of beauty products, has a(n) ________ statement, which is "to be the company that best understands and satisfies the product, service, and self-fulfillment needs of women globally." A. vision B. intention C. goal D. mission E. rationale

A

If you do not have all of the information for a complete plan, you should A. make decisions based on what you have, since perfect information is rare. B. wait until you can get that information to take action you know will be appropriate. C. implement two or more courses of action simultaneously. D. shrink the plan to limit its scope to only areas where you have good information. E. disregard the plan and go with your intuition.

A

Milo owns and manages a small bike repair store. In order to determine if strategic planning will be likely to help his business, Milo should primarily assess A. how many competitors he has. B. foot traffic by his location. C. his profitability in the prior six months. D. industry trends. E. how much he intends to grow in the next five years.

A

One type of standing plan, the __________, outlines the general response to a designated problem or situation. A. policy B. project C. rule D. procedure E. program

A

Productivity gains from MBO are higher when an organization has A. top-management commitment. B. few budget problems. C. team rather than individual performance reviews. D. union support. E. non-managerial employee support.

A

Which of the following comes LAST when an organization makes a plan? A. operational planning B. mission statement C. strategic planning D. tactical planning E. vision statement

A

Faisal has been running a commercial real estate business for nearly 30 years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Faisal is using which grand strategy? A. Stability B. Retrenchment C. Inducement D. Defensive E. Growth

A A stability strategy is a grand strategy that involves little or no significant change.

The process of choosing among different strategies and altering them to best fit the organization is called A. strategy formulation. B. contingency planning. C. strategic control. D. strategy implementation. E. trend analysis.

A Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

Alita is participating with other division heads in a discussion about new international competition for the firm and what the organization's goals should be for the next three years. She is participating in A. tactical planning. B. strategic planning. C. operational planning. D. controlling. E. writing a mission statement.

B

Because of the frequency with which world competition and information technology alter marketplace conditions, a company's ________ may have to be done closer to every 1 or 2 years than every 5. A. management planning B. strategic planning C. tactical planning D. operational planning E. implementation planning

B

In the current broadband environment, consumers are able to download products like music, movies, and books. Netflix was aggressive in taking advantage of this fact, offering web streaming and game console access to its customers before competitors. According to Miles and Snow, Netflix would be a(n) A. reactor. B. prospector. C. analyzer. D. defender. E. executor.

B

Jordan, a sales manager, met with his staff to discuss that they were only a third of the way to their sales goal, but halfway through the sales period. He was looking for suggestions to improve second-half performance. Which part of the planning/control cycle is Jordan doing? A. Benchmarking against competitors. B. Controlling the direction. C. Making the plan. D. Carrying out the plan. E. Updating the plan.

B

A SMART goal is one that is A. specific, maintainable, affordable, realistic, and timely. B. specific, measurable, attainable, results-oriented, and has target dates. C. specific, maintainable, achievement-oriented, in real time, and timely. D. specific, measurable, affordable, realistic, and has target dates. E. specific, maintainable, aligned with other goals, realistic, and timely.

B

A small firm is likely to benefit significantly from strategic planning A. regardless of the nature of its industry or market. B. when it is in a very competitive industry. C. when it is in a very new industry. D. when it is in a very stable industry. E. when it has a very small market.

B

MBO stands for A. Management by Observation. B. Management by Objectives. C. Management by Ownership. D. Management by Obligation. E. Management by Organization.

B

A career that is upwardly mobile, with a number of jobs that are fundamentally different yet still build on one another is known as a(n) ______ career. A. steady-state B. portfolio C. spiral D. inclining E. linear

C

A company producing cameras and video cameras prefers to focus its resources on a fast imitation program to reverse-engineer new features from competitors and add those, rather than implementing truly inventive features. Miles and Snow would call this company a(n) A. reactor. B. prospector. C. analyzer. D. defender. E. imitator.

C

At which level of planning must managers be paying attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions? A. tactical B. organizational C. strategic D. front-line E. operational

C

Consumers can use a national company called Service Magic to receive bids from quality providers of a variety of services, including home remodel, landscaping, plumbing, and housecleaning. Service Magic charges service providers for the leads it provides to them monthly. Which of the following is the source of Service Magic's strategic position? A. Low-profit margin and many customers. B. Broad needs and few customers. C. Broad needs and many customers. D. High-profit margin and many customers. E. High-profit margin and few customers.

C

In terms of difficulty, the best goals are A. just beyond what is achievable, to maximize motivation. B. easy to attain, so failure will not hurt morale. C. challenging but realistic. D. impossible to really reach, because they are meant only to be idealistic and inspirational. E. easy or hard, since both work equally well.

C

Kristi has been struggling with her weight, and one of her coworkers suggested that she make a SMART goal for herself. Which of the following is the best example of a SMART goal for Kristi? A. I want to lose a lot of weight. B. I want to look better in a swimsuit. C. I want to lose 20 pounds over the course of one calendar year. D. I want to start losing weight soon. E. I want to lose 30% of my body mass by next month.

C

Managers at Cimarron Saddlery expect to meet profitability goals for the company by cutting costs through a 70% increase in global sourcing of leather and other materials over the next two years. This is an example of a(n) A. supervision objective. B. operational goal. C. tactical goal. D. maintenance objective. E. strategic goal.

C

NASA's Curiosity Rover, employed to investigate a large crater on Mars, is an example of a A. policy. B. rule. C. project. D. procedure. E. program.

C

The common grand strategies are A. star, question mark, cash cow, and dog. B. cost-leadership, differentiation, cost focus, and focused differentiation. C. growth, stability, and defensive. D. strengths, weaknesses, opportunities, and threats. E. defender, prospector, analyzer, and reactor.

C

"Find out what customers want, then provide it to them as cheaply and quickly as possible" is Walmart's A. growth plan. B. technical plan. C. synergy. D. strategy. E. forecast.

D

Apple has a plan to generate buzz for its new products by maintaining secrecy about them. Apple has learned that strong measures are required to protect such mysteries, so it has enhanced its security and even fired and sued employees for leaking news about the products. These efforts would be considered which part of the planning/control cycle? A. Making the plan. B. Carrying out the plan. C. Comparing results. D. Taking corrective action. E. Benchmarking competitors.

D

Dayton Construction has a ________ for processing invoices, which includes coding them by job number and construction phase, and matching them with the correct purchase order. A. program. B. policy. C. rule. D. procedure. E. project.

D

Hilton Hotel's statement expressing its purpose as "to fill the earth with the light and warmth of hospitality" is a(n) A. vision statement. B. intention statement. C. goal statement. D. mission statement. E. rationale statement.

D

If a business lacks insight or fails to use the adaptive cycle properly, it is likely to be which of the following? A. A prospector B. An analyzer C. A defender D. A reactor E. An imitator

D

Improving future plans is part of which step in the planning/control cycle? A. Making the plan. B. Carrying out the plan. C. Benchmarking against competitors. D. Controlling the direction. E. Updating the plan.

D

Planning is defined as A. formulating a method to allocate resources effectively. B. motivating employees. C. coping with obstacles to past performance. D. setting goals and deciding how to achieve them. E. implementing strategic goals.

D

Sultan is a new manager, and he is using MBO for the first time with his subordinates. It is essential for Sultan to A. decide on goals for employees and clearly inform them of these goals. B. ask the employee to commit the goals to memory. C. set goals that are just out of the subordinate's reach. D. reward employees when they meet objectives. E. review an employee's performance once, at the end of the performance period.

D

What is the time frame of an operational plan? A. 2-10 years B. 1-5 years C. 6-24 months D. 1-52 weeks E. 1-90 days

D

Which of the following is associated with operational planning? A. Determining the overall direction of the organization. B. Examining the environment outside of the organization. C. Implementing policies and plans of top management. D. Directing daily tasks of nonmanagerial personnel. E. Making decisions under highly uncertain conditions.

D

Which of the following is one of the challenges of planning? A. Assigning the right people to tasks. B. Determining the correct budget. C. Measuring results with accuracy. D. Finding the time to plan. E. Motivating employees.

D

Which of the following is the correct order of planning steps within an organization? A. Strategic planning, mission statement & vision statement, operational planning, tactical planning B. Strategic planning, mission statement & vision statement, tactical planning, operational planning C. Strategic planning, operational planning, mission statement & vision statement, tactical planning D. Mission statement & vision statement, strategic planning, tactical planning, operational planning E. Mission statement & vision statement, strategic planning, operational planning, tactical planning

D

Which of the following should be included in a good vision statement? A. Firm's attitude toward its employees. B. Geographical areas in which the firm will compete. C. Firm's basic technology. D. Firm's standards of excellence and high ideals. E. Firm's major products or services.

D

An Iowa ethanol production company has been suffering from a combination of lower demand for gasoline (into which its product is mixed) and higher corn prices (which is the largest input cost). It has responded by selling off land, buildings, and some of its reserve product inventory. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

D A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. In a variation of this strategy, it can sell off (liquidate) assets like land, buildings, inventories, and the like.

Anne runs a small bakery on the main street of a resort town. Though hers was the only bakery around, the business had been suffering during the economic slowdown, and she was contemplating whether she should attempt strategic planning. Anne should be aware of what research finding regarding strategic planning? A. Only large firms show performance gains from strategic planning. B. Only small firms show performance gains from strategic planning. C. Performance gains from strategic planning are equal among small and large firms. D. Both small and large firms benefit from strategic planning, but small firms get a larger boost in performance. E. Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

E

Effective strategic management involves A. only top management. B. only top and middle management. C. only middle and lower management levels. D. only lower management level. E. managers from all parts of the organization.

E

Executive management has recently decided to acquire a small company with a complementary product line, so Craig, a marketing manager, is meeting with other managers to discuss how to implement policies to support the acquisition over the next year. He is participating in A. mission development. B. strategic planning. C. controlling. D. operational planning. E. tactical planning.

E

McKesson Corp., a U.S. pharmaceutical distributor, has a(n) ________ statement, which is "to provide comprehensive pharmacy solutions that improve productivity, profitability and result in superior patient care and satisfaction." A. purpose B. vision C. intention D. goal E. mission

E

Megan met with her supervisor for a formal review of her job performance over the past year. Though Megan had agreed to complete five training modules during the course of the year, she only did two. At this stage, which part of the planning/control cycle would be applicable to her manager going forward? A. Carry out the plan. B. Improve feedback. C. Correct deviations in the plan. D. Benchmark against other employees. E. Improve future plans.

E

The adaptive cycle portrays businesses as continuously cycling through three kinds of business decisions: entrepreneurial, ______, and administrative. A. leadership B. alignment C. organization D. production E. engineering

E

The first step in the MBO process is to A. determine rewards for meeting goals. B. give a performance appraisal. C. develop an action plan. D. periodically review performance. E. jointly set objectives.

E

The statement which expresses the purpose of an organization is called a(n) A. goal statement. B. rationale statement. C. vision statement. D. intention statement. E. mission statement.

E

There are three levels of planning. Their order, from first to last, is A. operational, tactical, and strategic. B. strategic, operational, and tactical. C. tactical, operational, and strategic. D. tactical, strategic, and operational. E. strategic, tactical, and operational.

E

Which of the following best represents the strategic planning time frame that Jeff Bezos of Amazon prefers? A. Six months or less B. One to two years C. Three to five years D. Five to seven years E. Ten to twenty years

E

Which of the following statements about strategy and strategic positioning is false? A. Many customers with broad needs can be a source of strategic position. B. A company has to choose not only what strategy to follow but what strategy not to follow. C. Few customers with broad needs can be a source of strategic position. D. Strategy involves creating a "fit" among activities. E. Few customers with narrow needs can be a source of strategic position.

E

__________ means performing different activities from rivals or performing similar ones in different ways. A. Competitive planning B. Distinctive positioning C. Collaborative planning D. Strategic segmentation E. Strategic positioning

E

A manager assessing the organization's access to capital is involved in analysis of A. strengths. B. weaknesses. C. opportunities. D. threats. E. strengths or weaknesses depending on the outcome of the assessment.

E Access to capital may be either an internal strength or weakness, since some firms have this and others don't.

Analysis of changing demographics of the U.S. population would be part of the assessment of a company's A. strengths. B. weaknesses. C. opportunities. D. threats. E. opportunities or threats depending on the outcome of the analysis.

E Changing demographics may be either an opportunity or a threat in the environment. For example, the aging population may help some firms but hurt others.

Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plans is called A. competitive intelligence. B. forecasting. C. contingency planning. D. trend analysis. E. environmental scanning.

E Environmental scanning is careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.

Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately is called A. strategic forecasting. B. corporate espionage. C. contingency planning. D. trend analysis. E. competitive intelligence.

E Practicing competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.

A ______ represents an "educated guess" about what must be done in the long term for survival or the prosperity of the organization or its principal parts. A. trend analysis B. mission C. strategy D. forecast E. contingency plan

c