Quizzes Ch 7, 8, 9

A pharmaceutical company's Research and Development lab identified a new way to treat a disease, with expectations that it will improve patients' survival rates. This is an example of -value chain management. -incremental process innovation. -quantum product innovation. -incremental product innovation. -stage-gate product development.

quantum product innovation.

________ is a corporate-level strategy in which a company expands its business operations into a new industry that produces inputs for the company's products. -Backward vertical integration -Backward horizontal integration -Forward horizontal integration -Forward vertical integration -Unrelated diversification

Backward vertical integration

________ is a corporate-level strategy that emphasizes reinvesting a company's profits in strengthening its competitive position in its current industry. -Concentration on a single industry -Forward vertical integration -International expansion -Diversification -Backward vertical integration

Concentration on a single industry

________ increases costs and forces companies to raise the prices of their products. -Hypercompetition -Backward vertical integration -Differentiation -Licensing -Forward vertical integration

Differentiation

True/False: Good value chain management requires that marketing managers focus primarily on the type of products the company makes.

False

True/False: HiTech decides to begin distributing products in other countries, but it will not invest in customizations for any specific national market. HiTech is following a multidomestic strategy.

False

True/False: Inputs from an organization's members are sufficient for successful product development.

False

________ is the gradual improvement and refinement of existing products over time as existing technologies are perfected. -Incremental process innovation -Incremental product innovation -Quantum product innovation -Product process reengineering -Quantum process innovation

Incremental product innovation

True/False: Decision making is the process in which managers make determinations about organizational goals and courses of action by responding to opportunities and threats.

True

Jalen always strives to make optimum choices from the known alternatives but accepts that he will never have access to all available information and therefore must strive for the most satisfactory decisions. This realization is consistent with the ________ of decision making. -Classical Model -Illusion of control -representative bias -administrative model -programmed form

administrative model

Organizations should refrain from offering too high a level of responsiveness to customers because -production schedules will increase. -customer relationships will not improve. -company costs may become too high. -quality of products will become low. -customer demands will continually grow.

company costs may become too high.

Flexible manufacturing techniques are based on the premise that -decreases in setup time will increase time available for greater production output. -rearranging workstations will increase the sense of urgency to produce products faster. -increases in setup time will minimize errors that could delay production. -simplifying the activities at each station will minimize errors that could delay production. -decreases in setup time will allow time for adding production steps.

decreases in setup time will increase time available for greater production output.

The first step in planning for an organization is -allocating resources and responsibilities to achieve strategies. -determining the organization's missions and goals. -selecting effective ways to implement the strategies. -procuring raw materials and human resources. -formulating strategies to meet goals.

determining the organization's missions and goals.

Susan often defends unpopular or opposing alternatives for the sake of argument when discussing an issue. Susan is demonstrating Group of answer choices -groupthink. -dialectical inquiry. -organizational learning. -confirmation bias. -devil's advocacy.

devil's advocacy

To avoid groupthink and minimize bias, an organization can use ________ to have separate groups of managers propose solutions to a problem before coming together to critique each solution and arrive at an even better option. -production blocking -classical decision making -dialectical inquiry -devil's advocacy -skunkworks

dialectical inquiry

A local bike shop offers free tune-ups and simple repairs for any bike purchased there and even provides free pick-up and delivery service for local customers. The shop is able to provide these exclusive services by selling its bikes at a premium price. The shop is following a ________ strategy. -focused integration -hypercompetition -differentiation -focused differentiation -vertical integration

differentiation

Jacob, a marketing manager, is determining if the company budget allows for advertising a new product. Which criterion of decision making is he addressing? Group of answer choices -legality -practicality -economic feasibility -product sustainability -ethicality

economic feasibility

Jerome's company asks him to recommend a method of international expansion that would incur the least amount of risk. Which method should he suggest? -exporting -licensing -franchising -wholly owned subsidiary -joint venture

exporting

Corey, a project manager, is responsible for tracking project issues. Each week, he provides details regarding the effectiveness of solutions and what experiences could be used to guide improved issue resolution in the future. Corey's reporting is an example of the ________ step of the decision-making process. -choosing an alternative -practicality -implementation -criteria selection -feedback

feedback

Complex, difficult-to-move products are often produced using a ________ layout. -process -product -sequential -utility -fixed-position

fixed-position

After many years of distributing her clothing through a large chain of department stores, Georgia, a fashion designer, decides to open a boutique to exclusively sell her clothing directly to consumers. Georgia is following a(n) ________ strategy. -forward vertical integration -unrelated diversification -forward horizontal integration -backward vertical integration -concentration on a single industry

forward vertical integration

Alba is concerned that a proposed alternative may have unforeseen effects elsewhere in the organization. She suggests more time be spent evaluating the consequences, but everyone else on the team rallies behind the lead manager to quickly finalize the decision. Alba's team is experiencing -escalating commitment. -groupthink. -bounded rationality. -representativeness bias. -illusion of control.

groupthink

In the classical model of decision making, managers: -use intuition to select the most satisfactory solution. -use satisfying to select the optimum solution. -apply representativeness bias to identify alternatives. -identify and evaluate all possible alternatives before choosing a course of action. -create heuristics to simplify the process.

identify and evaluate all possible alternatives before choosing a course of action.

In a stage-gate development funnel model, -stage 2 focuses on forming cross-functional teams to develop ideas. -new product ideas are generated at every stage. -detailed development plans are presented at stage 1. -new product ideas are encouraged at stage 1. -projects are only rejected at stage 2.

new product ideas are encouraged at stage 1.

To foster a learning organization, managers should empower employees and allow them to develop a sense of ________ through experimentation, creativity, and exploration. -personal mastery -entrepreneurship -groupthink -illusion of control -shared vision

personal mastery

A firm manufactures custom-made furniture. Which facilities layout would best suit the firm's needs? -product layout -fixed-position layout -process layout -sequential layout -flexible manufacturing layout

process layout

An automobile assembly line is arranged in a ________ layout, with a fixed sequence of workstations adding specific components until the full vehicle is assembled. -just-in-time -fixed-position -facilities -product -process

product

While home from college one summer, Jerome rallied his friends to make and deliver sandwiches to homeless individuals in their town. The one-time effort was so well-received, Jerome worked to solicit cash and grocery donations from local businesses so that the following summer his group was able to make deliveries weekly. Jerome could be considered a(n) -social entrepreneur. -skunkworks specialist. -intrapreneur. -devil's advocate. -product champion.

social entrepreneur.

During a SWOT analysis, Sweet Treats identifies a growing number of local businesses now offering bakery items to customers. This finding would be characterized as a(n) -advantage. -strength. -weakness. -opportunity. -threat.

threat

The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencing software to save money. According to the five forces model, this type of threat is called the -level of rivalry among organizations in an industry. -threat of substitute products. -potential for entry into an industry. -power of large customers. -power of large suppliers.

threat of substitute products.