Chapter 4+6 (T/F)
T
The 80/20 (Pareto) Principle is a general guide as to what percent activities are likely to cause most of the results in a given situation.
T
The Delphi Technique is a form of group decision making designed to provide group members with one another's ideas and feedback while avoiding some of the problems associated with interacting groups
F
The Rolls Royce and Mercedes Benz automobiles are examples of a cost leadership strategy.
F
The data-driven decision maker relies mostly on intuition when making decisions.
T
The economic-order quantity (EOQ) is the inventory level that minimizes ordering and carrying costs.
F
The experience of General Motors in diversifying into financial services illustrates how sticking to core competencies is the most effective business strategy.
F
Under just-in-time inventory control, an ample safety stock is accumulated to deal with emergencies such as supplier problems and labor strikes.
T
With scenario planning, you prepare for what the future might look like.
T
An example of the business strategy of sticking to core competencies is for a company like Papa John's Pizza to concentrate on selling pizza and related food and beverage items to the public.
F
Corporate-level strategy helps answer the question, "Which businesses should we enter?"
T
Corporate-level strategy is concerned with the total direction of the enterprise and the selection of specific businesses.
T
Data-driven management is more of an attitude and approach than a specific technique,
T
Firms must constantly change in order to be aligned with their key environments.
T
Forecasts that are updated regularly with fresh data are referred to as rolling forecasts.
T
If a manager recalls success stories from global expansion to Singapore, he might overestimate the chances of succeeding in that country. This is an example of the recallability trap.
T
In an advanced application of PERT, expected times are based on frequency distributions of how long certain events took place in the past.
F
In management by objectives, the objectives start at the bottom of the organization and move upward.
T
In planning, measuring external threats is part of defining the present situation.
T
Janet is supervising the construction of an animal hospital. An example of a milestone in her project would the installation of the operating room.
T
Just in time is applicable only to highly repetitive manufacturing operations such as car or residential furnace manufacturing.
T
Maintaining the right level of inventory is a major factor influencing the financial health of an organization.
T
One of the five competitive forces is the power of customers to affect pricing and reduce profit margins.
T
An MBO program involves people setting many objectives for themselves.
T
An exit strategy might be part of the contingency plan.
F
A SWOT analysis is often used to decide upon which weapons and tactics will be used to deal with a corporate crisis such as a contaminated food product.
T
A decision tree is a graphic illustration of the alternative solutions available to solve a problem.
T
A firm's strategy is a master plan for achieving its goals and objectives
T
A major aspect of the nature of business strategy is to choose a unique set of activities to deliver a unique value.
T
A medical products firm specializes in the manufacture of prosthetic arms and legs, thereby illustrating a focus strategy.
T
A rule is a specific course of action or conduct that must be followed;.
T
A technological forecast predicts what types of technological changes will take place.
F
Break-even analysis assumes that unit costs vary in relation to sales volume.
T
Brett is a data-driven manager so he relies more on facts than human impressions when making decisions.
T
Much of the accuracy of a PERT chart depends upon estimates of the time necessary to complete each activity.
F
Nike and Apple get together to produce a soccer ball that plays tunes when in motion, illustrating a functional-level business strategy.
F
One of the competitive forces identified by Michael Porter is the power of charities to extract money from a corporation.
T
Operational planning often focuses on the short term.
T
The first step in the planning process is defining the present situation.
T
The information compiled in a Gantt chart is well suited as a control device.
F
The inventory management system called LIFO, refers to selling your oldest inventory first.
T
The just-in-time system emphasizes that customer demand is the most important factor in determining how much product to manufacture.
T
The major purpose of the strategic inventory is to help the manager size up the competition, the customers, and the technology necessary to compete effectively.
F
The major thrust of business strategy is to achieve a high level of operational effectiveness and efficiency.
T
The mission of the Grand Union supermarket chain is probably to provide food, beverages, and related merchandise (all of high quality) to the general public.
T
The overconfidence trap in making forecasts leads a person to overestimate the accuracy of his or her forecasts.
F
The prudence trap in making forecasts leads a person to make overly optimistic forecast so as not to appear too conservative.
T
The purpose of crowdcasting is to obtain widespread input into the development of business strategy.
T
Time-series analysis is an historical approach to making forecasts.
T
To bring about a successful SWOT analysis, it is important to be clear about what you are doing and why.
F
To speed up the completion of a project, the manager should attempt to give top priority to all activities not on the critical path.
