Final Exam Review
At what point should an entrepreneur ask the questions, "Who are my customers, and where are they?"
when seeking an opening in the market for a start-up
Why is the Lewin model of change considered to be less preferred than a comprehensive approach to change?
It lacks operational specificity
Which of the following BEST describes the situational view of organization design?
The appropriate organization design depends on the circumstances.
Delta LLC. purchases raw materials such as leather and canvas from suppliers and processes them into finished shoes. Delta LLC. operates in the ____ industry.
manufacturing
More than any other industry, the ____ industry lends itself to big business because of the investment of equipment, energy, material, and money required.
manufacturing
The ____ form of organization design is one in which a set of product groups is superimposed on a functional organization design.
matrix
Which of the following is an example of identifying a new niche in an established market?
modifying a computer so that it is usable by untrained persons
One advantage of group decision making is ____.
more acceptance of the final decision
Which of the following is an example of an organization's change in technology and operations?
adoption of new information systems
Entrepreneurs ____.
are involved in planning and organizing activities of a business venture.
Integrating departments ____.
are more permanent than task forces
In a team organization ____.
people float from project to project
Based on differentiation strategy, why are customers willing to pay more for one product over a similar product?
perceived extra value
In schools math, English, science and social studies departments operate separately. Student test scores in each area are gathered to evaluate the effectiveness of the school. What level of interdependence between these subjects does this represent?
pooled
When departments or units operate with little interaction, and the profits and losses are simply added together, the units operate with ____ interdependence.
pooled
Small businesses ____.
provide big businesses with many of the services they need
According to the results of a classic study, employee participation ____.
increases productivity and satisfaction
In the past, special education teachers were required only to teach their students. Now, a common complaint is that the massive amounts of required paperwork keeps them from performing other job duties well. In this case, ____ did not produce satisfied workers.
job enlargement
Invacare modified the wheelchair assembly process so that workers assemble the entire wheelchair rather than simply add one or two pieces as is normal on most assembly lines. This is an example of ____.
job enlargement
Destani has a small business that is doing well, and she is ready to expand. Before she does, she would like to meet with other female business owners and get their feedback. How might Destani seek out information from other women to do this?
join a networking group
Which of the following is one of the factors responsible for the failure of a small business?
managerial inexperience
According to the evidence-based management approach, managers must ____.
be committed to fact-based decision making
Groupthink ____.
often leads to choosing a wrong alternative
Span of management indicates ____.
the number of people who report to a particular manager
Teachers at South Elementary School are allowed to pair up and teach a class twice as large as others. This allows the teachers to specialize in the subjects they most enjoy. This is an example of ____.
work teams
Ramkumar works in an organization's European office, and Atmir works in the Asian-Pacific office. Even though they both work for the same firm, both offices operate differently, based on the unique needs in each country. Which of the following contributes to that?
worldwide learning
Which of the following is true of job creation?
Small firms eliminate jobs at a faster rate.
The starting point in formulating strategies is usually ____.
a SWOT analysis
The administrative model of decision making ____.
describes how decisions are actually made
United Continental Holdings includes Continental Airlines, United Airline, Chelsea Food Services, and United Cruises, because it was thought that they could accomplish more joined together than they can operating as separate units. Which advantage of related diversification does this best represent?
synergy
In what type of organization might there be a lot of employees but little or no underlying functional hierarchy?
team
A(n) ____ innovation is a change in the appearance or performance of a product or service or of the physical processes through which a product or service is manufactured.
technical
Janell worked as a manager for 30 years in a leading corporation and now works with the Small Business Administration to help small business. Janell provides free consultation and assistance to new entrepreneurs and most likely belongs to ____.
the Service Corps of Retired Executives
The delegation process cannot be complete unless ____
the employee accepts responsibility for carrying out the task assigned
The area that increases the difficulty of an organization performing at a high level is a ____.
threat
Which is an international strategy in which a company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness?
transnational
Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a restaurant chain. This is an example of ____ diversification.
unrelated
What organization design is characterized by a very small staff and administrative headquarters facility?
virtual
Graver Bros. Inc. is a company that buys packaged organic grains from local farmers and sells them to supermarkets in large cities. Graver Bros. Inc. operates in the ____ industry.
wholesale
Why might a manager be unwilling or hesitant to delegate?
The employee may not do the job well.
Most small businesses employ ____.
fewer than 20 people
When managers want to generate innovative and creative ideas, they will often create a(n) ____ group.
nominal
Which of the following refers to the number of subordinates who report directly to a given manager?
span of management
What is the advantage to those organizations who use unrelated diversification?
stable performance over time
What is the practice of duplicating another firm's distinctive competence?
strategic imitation
What is the method by which processes are operationalized or executed within the organization?
strategy implementation
Which of these is an argument in support of a narrower span of management?
subordinates who are widely dispersed
What is a strategy?
A comprehensive plan for accomplishing an organization's goals.
Pallavi's organization makes decisions using evidence-based management. What can Pallavi do to support a culture where facts are encouraged?
Allow people to tell the truth, even if it is unpleasant.
Ramon wants to establish a culture that rewards innovative ideas. What can he do to encourage innovation in his firm?
Communicate the feeling that failure is acceptable and expected
Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based?
The total organization and the way it is designed influence the way individuals behave within the organization.
A System 1 organization is most like ____.
a bureaucratic
A wide span of management produces ____.
a flat organization
Which of the following is a characteristic of the ideal bureaucracy?
a hierarchy of positions
What is a general factor that contributes to the success of small businesses?
analysis of market conditions
Sasha owns a day care center and makes all decisions about how the center runs, what services it provides, and at what prices. She has funded the venture with her own savings and has complete responsibility for the success or failure of the venture. Sasha is most likely a(n) ____.
entrepreneur
Which is a behavioral process in which a decision maker stays with a decision even when it appears to be wrong?
escalation of commitment
Paul supervises a crew engaged in laying a pipeline from Dallas to Ponca City, Oklahoma. The crew is able to lay about a mile of pipe each day. Supplies of pipe are delivered by truck to various points along the pipeline route. When shipments of pipe are delayed, it results in a work stoppage for Paul's crew. What level of interdependence does this represent?
sequential
Gadgetbug, a gadget repair store, has six employees. The firm is well known in the community in which it operates but not in the rest of the country. Gadgetbug manages to make annual sales of $780,000. Gadgetbug qualifies as a ____.
small business
Many companies make bead jewelry, but Chamilia is the only one with a licensing agreement with Disney to make beads that include Disney characters. The agreement is a(n) ____ for Chamilia.
strength
In the introduction stage of the product life cycle, what do managers typically need to focus on?
supply
Which type of organizational design is essentially a holding company that results from unrelated diversification?
conglomerate
The ____ boasts a total membership of more than 14,000 small-business owners, the largest number in the country. It offers its members networking possibilities and educational programs and services tailored to their needs.
Council of Smaller Enterprises of Cleveland
Attempting to change the attitudes and values of a company's workforce indicates a change in the area of ____.
people
General Motors has asked industry leaders, research scientists, environmental experts, and design engineers to consider the impact of global warming on the automobile industry, particularly how it will impact fossil fuel, electric, battery, and other types of vehicles. Which type of group is General Motors using in shaping the future of their vehicles?
Delphi group
Who was one of the first experts to recognize decisions are not always made rationally, and developed the administrative model to describe how decisions are often made?
Herbert Simon
When a firm identifies a weakness within its organization, what can it do to address that weakness?
It can modify its mission
Which of the following statements is true about the administrative model of decision making?
It suggests that managers may not always make decisions that best serve the interests of their organizations.
Which of the following is an advantage of using a functional design for organizational structure?
Key positions can be staffed with experts.
Which of the following statements is true in the context of decision making under a state of risk?
The decision maker uses probability estimates to assess alternatives.
Which of the following is an advantage of starting a business from scratch?
The entrepreneur is free to choose inventories and locations.
The aircraft engine division of General Electric has its own mission and a strategy that often differs considerably from other parts of the corporation. What is a division such as this called?
a strategic business unit
Jewel's company was just purchased by a much larger competitor who makes products in a similar line. The products made by Jewel's company will still be made, but branded with the new company's name. Which type of diversification does this process involve?
acquisition
Teachers at South Elementary School are allowed to pair up and teach a class twice as large as others. This allows the teachers to specialize in the subjects they most enjoy. The team teachers now share control over the classroom. The team teaching decreases ____.
autonomy
Anke started a small business importing items and selling them online. In time, her business grew quite large and she now has a warehouse and several employees working for her. Anke has decided she now needs to formalize the authority structure. The type of organizational model Anke needs to establish for her firm is a(n) ____.
bureaucracy
Which of the following requires line managers to at least listen to comments and suggestions from staff agencies even if they do not do anything with the information?
compulsory advice
It is common in the ____ industry that skilled craftspeople start out working for someone else and then start a small firm so that they can work for themselves.
construction
Which of the following involves linking together the activities of the various parts of an organization to promote harmonious movement toward organizational goals ____.
coordination
Sales are down, and Francis knows he needs to make some changes to reverse the trend and not only bring sales up to the previous level, but actually increase them by 5% over last year. He is now trying to understand whether the downturn was caused by poor customer service, poor quality product, improper pricing, or some other factor. Which step has Francis reached in the comprehensive approach to change?
diagnosing relevant variables
Which activities are aimed at analyzing the current condition of an organization through the use of questionnaires, opinion surveys, interviews, archival data, and meetings to assess the various characteristics of the organization?
diagnostic
Wounded Warrior Project (WWP) spends a lot of money telling the stories of wounded veterans. There are many nonprofits helping veterans, but WWP is the most well-known, with celebrity involvement and advertising. WWP is using a ____ strategy.
differentiation
Levi Strauss launched Denizen denim brand in China and Singapore. What form of organization design is appropriate for Levi Strauss?
divisional (M-form)
Viacom owns Nickelodeon, TV Land, VH1, and Nick at Nite. Managers of these cable networks are given a fairly high degree of autonomy, yet they coordinate activities as needed. Purchasing is highly centralized, but many other functions are quite decentralized. Viacom uses a ____ organization design.
divisional (M-form)
The idea that the manufacturing costs per unit decrease as the number of units produced increases is known as ____.
economy of scale
In his restaurant, Jin makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jin is most likely to be a(n) ____.
entrepreneur
William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies ____.
escalation of commitment
It was recently announced that Libra Inc. settled a lawsuit for $75 million. In the context of the rational decision-making model, when executives of the company announced that the settlement proved to be "typical and fair" as compared to similar cases, they were ____.
evaluating the results of a chosen alternative
Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how ____ forces lead management to make changes.
external
Ugar knows when he is doing a good job, and when he is producing at a high level of quality. Which job characteristic allows Ugar to know this?
feedback
A(n) ____ is any benefit that comes to a firm because it exploits an opportunity before any other firm does.
first-mover advantage
Procter & Gamble is departmentalized, in part, on the basis of product. Which of the following characteristics would you expect to find at Procter & Gamble?
more effective evaluation of the performance of individual products or product groups than with functional departmentalization
While there are many businesses in the general area that offer lawn mower repair, they all require that the customer bring the equipment to the store. Diane realized that this is difficult for many consumers, and she started a business in which her service techs bring the repair shop to the customer. Diane is capitalizing on a(n) ____.
niche
Which of the following can be describes as the set of structural elements and the relationship of those elements that are used to manage an organization?
organization design
Changes in the performance of an existing service or the creation of a new one are ____ innovations.
product
A(n) ____ decision is a decision that is relatively structured or recurs with some frequency (or both).
programmed
Decisions regarding standard organizational transactions are most likely to be ____ decisions.
programmed
Which of the strategy types in the Miles and Snow model avoids long-term commitment to any single technology, is highly decentralized, and has a propensity to take risk?
prospector
A ____ business sells directly to consumers products manufactured by other firms.
retail
Anke owns a pet shop that sells specialty products such as birthday cakes for dogs, canned cat food, and live food for fish. She sources these products from different manufacturers and sells them to local residents. Anke's shop operates in the ____ industry.
retail
Petra was looking for ways to double her plant's production capacity, and she considered acquiring the production plant of a rival company. The engineers in Petra's company advised her against it because acquiring the new plant would only increase their company's production by 15 percent. Petra's idea failed the test for ____ in the context of the rational decision-making process.
satisfactoriness
