Business Exam
What are the advantages and disadvantages of departmentalization?
1.Employees develop skills and progress within a department as they master skills. 2.The company can achieve economies of scale. 3.Employees can coordinate work within the function, and top management can easily direct activities. Disadv 1.Departments may not communicate well. 2.Employees may identify with their department's goals rather than the organization's. 3.The company's response to external changes may be slow. 4.People may not be trained to take different managerial responsibilities; instead they become specialists. 5.Department members may engage in groupthink and may need outside input.
Briefly describe the managerial attitudes behind Theories X, Y, and Z.
4. Employees must be intimidated by managers to perform. 4. Employees perform better in work environments that are nonintimidating. 4. Employees perform better in environments that foster trust and cooperation. 5. Employees are motivated by financial rewards. 5. Employees are motivated by many different needs. 5. Employees need guaranteed employment and will accept slow evaluations and promotions.
Explain the difference between a manufacturers' brand, a dealer brand, and a generic brand.
A manufacturers' brand represents manufacturers that distribute their products nationally such as Xerox or Dell. A dealer brand is often referred to as a private label and will not carry the manufacturers name, but rather carries the name of the distributor instead. For example, Kenmore is a dealer brand sold via Sears. A generic brand is the name of an entire product category.
What is just-in-time inventory control?
A production method that involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finished product. Supplies arrive just at the time they are needed.
What is an inverted organization?
An inverted organization places employees at the top of the hierarchy; managers are at the bottom to train and assist employees.
What factors are included in environmental scanning?
Answer: The four important factors of environmental scanning are events, trends, issues, and expectations. Events are occurrences which takes place in different environmental sectors of a business.
Gantt chart
Bar graph showing production managers what projects are being worked on and what stage they are in at any given time.
What are the key elements of brand equity?
Brand equity is the value of the brand name and associated symbols. The elements of brand equity include: brand loyalty, brand awareness, and brand association.
What's the difference between a brand name and a trademark?
Brand names consist of a word, letter or group of words or letters that set it apart from other goods and services. A trademark is a brand that has exclusive legal protection for both its brand name and design.
Describe three different types of industrial goods
Capital items are expensive products that last a long time. Accessory equipment consists of capital items that are not quite as long-lasting or expensive as installations and include computers, copy machines, and various tools.
What do you call the integration of CAD and CAM?
Design changes made in computer-aided design (CAD) are instantly incorporated into the computer-aided manufacturing (CAM) process. The linking of CAD and CAM is computer-integrated manufacturing (CIM).
Division of labor
Division of work into a number of separate tasks to be performed by different workers
What's the difference between product screening and product analysis?
During the product screening process the number of new-product ideas a firm is working on is reduced, so that it may focus on the most promising ideas. Product analysis occurs after screening and involves making cost estimates and sales forecasts to get a feeling for the profitability of new-product ideas.
Explain the principles of equity theory.
Equity Theory — The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions. Workers often base perception of their outcomes on a specific person or group. Perceived inequities can lead to lower productivity, reduced quality, increased absenteeism, and even resignation.
What are 5 steps in the control process
Establish clear standards, monitor and record performance, compare results against standards, communicate results, if needed take corrective action
What are Six Sigma quality, the Baldrige Award, ISO 9001, and ISO 14001?
ISO 9001 and ISO 14001 Standards •The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies. •ISO 9001 — The common name given to quality management and assurance standards. •ISO 14001 — A collection of the best practices for managing an organization's impact on the environment. The Baldrige Awards •Companies can apply for awards in these areas: •Manufacturing •Services •Small businesses •Nonprofit/government •Education Health care
How do changes in the economy affect the objectives of unions?
In 2016 members of the Communications Workers of America (CWA) held a strike against Verizon Wireless in an effort to increase wages and add jobs. The strike succeeded after a seven-week walkout, leading to 1,400 new jobs and pay raises as high as 10 percent. What can other unions learn from this successful strike?
What are the major criteria for facility location?
Labor costs and land costs are two major criteria for selecting the right sites. Other criteria include whether resources are plentiful and inexpensive, skilled workers are available or are trainable, taxes are low and the local government offers support, energy and water are available, transportation costs are low, and the quality of like and of education are high.
What is the difference between MRP and ERP?
MRP is a computer-based operations management system that uses sales forecasts to make sure the needed parts and materials are available at the right time and place. Enterprise resource planning (ERP), a newer version, of MRP, combines the computerized functions of all the decisions and subsidiaries of the firm-such as finance, material requirements of planning, human resources, and order fulfillment- into a single integrated software program that uses a single database. The result is shorter time between orders and payment, less staff to do the ordering and order processing, reduced inventories, and better customer service for all the firms involved.
Why do organizations outsource functions?
Manufacturing is faster and cheaper and can be handled by people who specialize in specific industries/tasks.
What does it mean to "help the buyer buy"?
Marketing today involves helping the buyer buy through: •Websites that help buyers find the best price, identify product features, and question sellers. •Blogs and social networking sites that cultivate consumer relationships.
4.Explain the distinction between what Herzberg called motivators and hygiene factors.
Motivators (These factors can be used to motivate workers.) •Work itself •Achievement •Recognition •Responsibility •Growth and advancement Hygiene (Maintenance) Factors (These factors can cause dissatisfaction but changing them will have little motivational effect.) •Company policy and administration •Supervision •Working conditions •Interpersonal relations (co-workers) •Salary, status, and job security
What is niche marketing, and how does it differ from one-to-one marketing?
Niche marketing is an advertising strategy that focuses on a unique target market. Instead of marketing to everyone who could benefit from a product or service, this strategy focuses exclusively on one group—a niche market—or demographic of potential customers who would most benefit from the offerings
What is the difference between pay equity and equal pay for equal work?
Pay equity compares the value and pay of different jobs, such as nurse and electrician. Equal pay compares the pay of similar jobs.
What's the difference between a product line and a product mix?
Product line refers to the group of products that are physically similar or intended for a similar market. These products may face similar competition. For example, you can purchase a Diet Coke, Diet Coke with Splenda etc. The product mix is the total of the product lines offered by a particular company. The text uses the example of Procter & Gamble.
What are the four Ps of the marketing mix?
Product, Price, Place, Promotion
How does operations management differ between the manufacturing and service sectors?
Production — The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. Production management — The term used to describe all the activities managers do to help firms create goods. Operations management — A specialized area in management that converts or transforms resources (including human resources) into goods and services. Operations management for services is all about enriching the customer experience. Hotels, for instance, have responded to the needs of business travelers with in-room Internet access and other kinds of office-style support.
What is psychological pricing?
Psychological pricing involves setting the price of goods or services at price points that make the product appear less expensive. For example, a TV may be priced at $999, since it sounds less expensive than $1,000.
What value enhancers may be included in a total product offer?
Some value enhancers that may be included in the total product offering include: brand name, warranty, service, store surroundings, and speed of delivery.
- Enterprise zones
Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support
What are the four steps in the marketing research process?
Step 1: Problem Definition. Step 2: Development of an Approach to the Problem. Step 3: Research Design Formulation. Step 4: Field Work or Data Collection.
3.What are the major tactics used by unions and by management to assert their power in contract negotiations?
Tactics used by labor unions include: •Strikes •Boycotts •Work slowdowns Pickets Management Tactics •Lockout — An attempt by management to put pressure on unions by temporarily closing the business. •Injunction — A court order directing someone to do something or to refrain from doing something. •Strikebreakers — Workers hired to do the jobs of striking workers until the labor dispute is resolved; called scabs by unions.
Can you define the terms consumer market and business-to-business market?
The Consumer Decision-Making Process 1.Problem recognition 2.Information search 3.Evaluate alternatives 4.Purchase decision 5.Postpurchase evaluation •Factors that affect consumer behavior: •Learning •Reference group •Culture •Subculture •Cognitive dissonance B2B marketers include: •Manufacturers •Retailers •Hospitals, schools, and nonprofits •Government Products are often sold and resold several times before reaching final consumers.
Evaluate expectancy theory. When could expectancy theory apply to your efforts or lack of effort?
The amount of effort employees exert on a specific task depends on their expectations of the outcome. Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers: 1.Determine what rewards employees do value. 2.Determine each employee's performance standard. 3.Ensure that performance standards are attainable. 4.Tie rewards to performance. Be sure employees feel rewards are adequate.
BEP = FC/P - VC
The break-even point equals the total fixed costs (FC) divided by the price of one unit (P) minus the variable cost of one unit (VC).Ex: If you have a fixed cost of $200,000, a variable cost of $2 per item, and you sell your product for $4 each, what would be your BEP?
Name the four classes of consumer goods and services and give examples of each.
The four classes of consumer goods and services include: Convenience goods and services - candy, gum and milkShopping goods and services - clothes, shoes and appliancesSpecialty goods and services - fur coats, imported chocolates and business consultantsUnsought goods and services - burial service, insurance and emergency drain cleaning
What functions does packaging now perform?
The functions packaging performs include: (1) attract the buyer's attention, (2) protect the goods inside, (3) be easy to open, (4) describe and give information, (5) explain the benefits of the good inside, (6) provide information on warranties, warnings and other consumer matters, and (7) give some indication of price, value, and uses.
Explain goal-setting theory.
The idea behind goal-setting theory is the process of setting attainable goals to motivate employees and improve performance. The key to goal-setting theory is that the goals must be accepted and accompanied by feedback to truly be effective.
What are the limitations of a cost-based pricing strategy?
The limit of a cost-based pricing system is that in the long run it is not the producer that establishes price but rather the market place. To effectively establish price, the producer must take into account competitor prices, marketing objectives, actual cost, and the expected cost of product updates.
job specialization
The process by which a division of labor occurs as different workers specialize in different tasks over time
managment
The process of accomplishing the goals of an organization through the effective use of people and other resources.
What's the theory of the product life cycle?
The product life cycle is a theoretical model which explains what happens to sales and profit for a product over a particular period of time. This model has four stages: introduction, growth, maturity, and decline.
What are the six steps in the new-product development process? The six steps in the new-product development process include: Idea generation, development, product screenings, testing, product analysis, and commercialization
The six steps in the new-product development process include: Idea generation, development, product screenings, testing, product analysis, and commercialization
What are the three parts of the marketing concept?
The three parts of the marketing concept are (1) a customer orientation, (2) a service orientation, and (3) a profit orientation (that is, marketing goods and services that will earn a profit and enable the firm to survive and expand).
What are the two steps in commercialization?
The two steps in commercialization involve promoting the product to distributors and retailers, and the development of strong advertising and sales campaigns.
What are four key factors that make B2B markets different from consumer markets?
There are four key factors your sales people need to be aware of when it comes to understanding B2B buying behaviour: status quo bias, loss aversion, decision paralysis and the impact of early influence.
Why are organizations becoming flatter?
To quickly respond to customer demands. A flatter organization gives lower-level employees the authority and responsibility to make decisions directly affecting customers.
continuous process
a production process in which long production runs turn out finished goods over time
intermittent process
a production process in which the production run is short and the machines are changed frequently to make different products
external customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
internal customers
individuals and units within the firm that receive services from other individuals or units
o Incubators
o Centers that offer new businesses low-cost offices with basic business services.
4 functions of management
planning, organizing, leading, controlling
SWOT analysis
strengths, weaknesses, opportunities, threats
process manufacturing
that part of the production process that physically or chemically changes materials
assembly process
that part of the production process that puts together components
What is environmental scanning?
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
Strategic Planning
the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
tactical planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
contigency planning
the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
operational planning
the process of setting work standards and schedules necessary to implement the company's tactical objectives
What is organizational culture?
the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments
What is form utility?
the value producers add to materials in the creation of finished goods and services
What management principle does a matrix-style organization challenge?
•Advantages •Managers have flexibility in assigning people to projects. •Interorganizational cooperation and teamwork is encouraged. •Creative solutions to product development problems are produced. •Organizational resources are used efficiently. •Disadvantages •It's costly and complex. •Employees may be confused where their loyalty belongs. •Good interpersonal skills and cooperative employees are a must. •It may only be a temporary solution to a long-term problem.
Fayol's Principles of Organization
•Characteristics of Organizations Based on the Principles •Organizations in which employees have no more than one boss; lines of authority are clear. •Rigid organizations that often don't respond to customers quickly.
What's the main difference between a matrix-style organization's structure and the use of cross-functional teams?
•Cross-functional self-managed teams — Groups of employees from different departments who work together on a long-term basis. •A way to fix the problem of matrix-style teams is to establish long-lived teams. •Teams are empowered to make decisions without management approval.
Max Weber and Organizational Theory
•Job descriptions •Written rules, decision guidelines, and detailed records •Consistent procedures, regulations, and policies •Staffing and promotion based on qualifications
What are the major laws that affected union growth, and what does each one cover?
•Labor unions' growth and influence has been very dependent on public opinion and law. •The Norris-LaGuardia Act helped unions by prohibiting the use of Yellow-Dog Contracts — A type of contract that required employees to agree as a condition of employment NOT to join a union. •Collective bargaining — The process whereby union and management representatives form a labor-management agreement, or contract, for workers.
What is the difference between line and staff personnel?
•Line personnel •Employees who are part of the chain of command that is responsible for achieving organizational goals. •Line personnel have authority to make policy decisions. •Staff personnel •Employees who advise and assist line personnel in meeting their goals. •Staff personnel includes marketing research, legal advising, IT, and human resource management.
What are some of the issues companies are facing related to child care and elder care? How are companies addressing those issues?
Child Care •Three-fourths of women with children under 18 (over two-thirds of mothers with children under age 6) are in the workforce. •Childcare-related absences cost businesses billions of dollars each year. Who should pay for the cost of childcare—this is a dividing issue among employees and businesses •Benefits can include: •Discounts with childcare providers •Vouchers that offer payment for childcare •Referral services identifying high-quality childcare facilities •On-site childcare centers •Sick-child centers Elder Care •About 40 million family caregivers provide unpaid care to an elderly person. •Care giving obligations cause employees to miss about 15 million days of work per year. •Costs could rise up to $33 billion annually. Many firms now offer employee assistance programs.
How is the term sexual harassment defined, and when does sexual behavior become illegal?
Sexual Harassment •Sexual harassment — Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment. •Sexual harassment laws cover men, women, and foreign companies doing business in the U.S. Violations can be extremely expensive for businesses. •Quid pro quo sexual harassment involves threats like "Go out with me or you're fired." An employee's job is based on submission. •Hostile work environment sexual harassment is conduct that interferes with a worker's performance or creates an intimidating or offensive work environment.
List two short-term and two long-term pricing objectives. Can the two be compatible?
Short-term pricing objectives include loss leaders and is designed to build traffic as well as achieving greater market share. Long-term pricing objectives include achieving a target return on investment and creating a certain image. It is important that marketing managers set pricing objectives in context of other marketing decisions, since the pricing objectives may differ greatly.
.How has manufacturing changed in the U.S. over the last few decades?
Since 1979, the number of U.S. workers employed by factories has steadily dropped (20.7 mil in 1988 vs. 13.9 mil. in 2020). •American factories can operate efficiently without large amounts of human labor. The U.S. economy is no longer manufacturing-based. •80 percent of jobs are in the service sector. •American factories can't fill positions as engineers and computer experts flock to the tech industry.
What are the similarities and differences between Taylor's time-motion studies and Mayo's Hawthorne studies?
•Researchers studied worker efficiency under different levels of light. •Productivity increased regardless of light condition. •Researchers decided it was a human or psychological factor at play. •Hawthorne Effect — The tendency for people to act differently when they know they are being studied. The research at the Hawthorne plant of Western Electric in Cicero, Illinois (pictured here), gave birth to the concept of human-based motivation by showing that employees behaved differently simply because they were involved in planning and executing the experiments. Maslow's Hierarchy of Needs — Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs. Needs that have already been met do not motivate. If a need is filled, another higher-level need emerges.
What are some reasons for having a narrow span of control in an organization?
•Span of control — The optimum number of subordinates a manager supervises or should supervise. •When work is standardized, broad spans of control are possible. •The appropriate span narrows at higher levels of the organization. •The trend today is to reduce middle managers and hire better low-level employees.