MGMT 309 Exam 2
A company is creating a ______ when it asks, "What business are we in?"
corporate-level strategy
economies of scope
broad product lines
A program plan is an example of a
single-use plan
The focus of _____ is on how to operationalize actions necessary to achieve the strategic goals.
tactical goals
Which term refers to the level of productivity achieved by a single person?
individual productivity
During the first 10 months of 2014, spending-per-customer declined at UNIQLO's stores in Japan. As a result, beginning in October 2014, top management changed the focus of the company's marketing. Instead of emphasizing low prices, the company began highlighting its use of high-quality materials. Which type of strategy is UNIQLO using?
Analyzer
When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify:
Company strengths and weaknesses
Which of the following is an importance of productivity?
It partially determines people's standard of living within a particular country.
Which of the following is true of the just-in-time method?
It reduces an organization's investment in storage space for raw materials.
_____ are primary inputs for developing tactical goals.
Strategic goals
Harriet is very quiet by nature. Recently, she participated in a team discussion in her office to decide their monthly goal. Even though Harriet had some good suggestions and wanted to speak, she was unable to get in a word because Simon, another team member, spoke most of the time. In this scenario, which of the following drawbacks of group decision making is most evident?
The group may be dominated by a single person.
The Bose Corporation's ______ is based on the high technology of its products.
distinctive competence
A(n) _____ is a pattern of action that develops over time in an organization in the absence of mission and goals or despite mission and goals.
emergent strategy
The purpose of work-in-process inventories is to _____.
enable overall production to be divided into stages of manageable size
is this a programmed or nonprogrammed decision? Your company typically increases each department's budget by a certain percentage over the prior year's budget. However, this year managers were asked to consider whether each budget item is still necessary and whether new budget items are needed to meet the department's needs. As a result, this year's budget process is a:
nonprogrammed
Serviceability—one of the eight dimensions of quality—refers to the:
speed and ease of repair of a product.
A condition in which a decision maker knows with reasonable surety what the alternatives are and what conditions are associated with each alternative is called a _____.
state of certainty
A ____ __ ____ is when the availability of each alternative and its potential payoffs and costs are all associated with probability estimates.
state of risk
Decision making is defined as:
the act of choosing one alternative from among a set of alternatives.
groupthink
the group's desire for consensus and cohesiveness overwhelms its desires to reach the best possible decision
satisficing
the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency to resolve the problem
Contingency plans aren't needed when
things go as expected .
Which manager is responsible for setting goals like this: Strategic goals
top manager
The _____ 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 strategy
In-transit inventories are controlled by:
transportation and distribution control systems.
When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:
Company strengths and weaknesses
By not recognizing her _______ , Debbie repeatedly took her 8-year-old laptop for repairs, even though the repair costs were greater than the price of a brand-new, faster laptop with much more memory.
escalation of commitment
The final step in the decision-making process requires that mangers:
evaluate the effectiveness of their decision.
type of plan which would be developed in order to achieve it: We seek to improve efficiency by implementing a new computerized payment system.
operational
which kind of layout: create or process a variety of products
process layout
four tools for managing total quality (TQM)
benchmarking, outsourcing, reducing cycle time, and statistical quality control
The _____ establishes the corporate mission and strategy.
board of directors
Which manager is responsible for setting goals like this: mission statement
board of directors
home replication
utilizing a core competency or a firm specific advantage developed at home as a man competitive weapon in foreign markets
The total quality management (TQM) tool that assesses all activities, material flows, and paperwork to determine their relative contribution to value is called a
value-added analysis .
global strategy for international business
viewing the world as a single marketplace and having as a primary goal the creation of standardized goods and services that will address the needs of customers worldwide. believe that one thing will work everywhere, and view the world as one.
The Malcolm Baldrige Award is given to firms that:
achieve major quality improvements.
Decision making is the process of:
adopting one course of action as opposed to others.
select the dimension of quality that this service value addresses: I am proud of my professional appearance, language, and behavior.
aesthetics
Which term refers to the level of productivity achieved by a country
aggregate productivity
Intuition is defined as:
an innate belief about something, without conscious consideration.
Unlike multidomestic firms, global corporations:
assume that customers are the same regardless of nationality.
Which of the following is true of quality?
It is relevant for both products and services.
what are the five criteria for setting effective goals?
1. specific and measurable 2. cover key result areas 3. challenging, but realistic 4. defined time period 5. linked to rewards
Weather Watches, a watch manufacturing company, faces a lot of problems while planning and setting goals as its competitors' technology is constantly developing. It too has to upgrade the technology it uses to keep up with its competitors. Which of the following barriers to goal setting and planning does Weather Watches face?
A dynamic and complex environment
Which of the following is true of technology?
It is used to convert resources into products.
Which of the following is the first step in evaluating alternatives in rational decision making?
Determination of feasibility of the alternatives
Which of the following is true of bounded rationality?
It suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits.
_____ is a form of business that combines and transforms resources into tangible outcomes that are then sold to others.
Manufacturing
A group comes together to contribute Individual ideas of alternatives that are winnowed down through a series of rank-ordering of the alternatives to reach a decision. Discussion is limited.
Nominal group technique
_____ is the total set of managerial activities used by an organization to transform resource inputs into products, services, or both.
Operations management
Which of the following dimensions of quality refers to a product's primary operating characteristic?
Performance
In your role as communications manager, you state that the company communicates to its stakeholders directly, not through requests for quotes from journalists. What type of plan is this?
Policy
_____ is an economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create them.
Productivity
UNIQLO tries to monitor its competitors' actions, but notices that one of these competitors seems to shift strategies often and does not anticipate trends in the environment. Which type of strategy does the competitor appear to have?
Prospector
_____ is concerned with buying the materials and resources needed to produce products and services.
Purchasing management
The manager of Follicle, a salon and spa, believes that the techniques they have followed for generations are superior to the latest techniques that are scientifically proven to be more effective. He fears that the use of new techniques may lead to failure and continues to use the existing techniques. In this scenario, which of the following barriers to goal setting and planning is most evident?
Resistance to change
Which of the following areas does a well-conceived strategy address?
Resource deployment
When starting to formulate a strategy, the first tool used is often a _____ analysis, which helps the company identify aspects of its business and the environment that it might exploit, neutralize, avoid, or correct.
SWOT
If you are managing inventory of work in process, which source of control should you use?
Shop floor control systems
_____ is the process of managing operations control, resource acquisition, and inventory so as to improve overall efficiency and effectiveness.
Supply chain management
A theoretical advantage of unrelated diversification is that:
a business will have a stable performance over time.
Management by objectives (MBO) refers to:
a formal goal-setting process involving collaboration between managers and subordinates.
When you're making a decision and don't know all alternatives, the risks, or consequences you are in a ____ __ ____
a state of uncertainty
The starting point for total quality management (TQM) in an organization is:
a strategic commitment by top management.
UNIQLO anticipates that demand will be very high for its patent-protected clothing line, particularly given climate concerns in its core markets. With an expected $10 billion in U.S. sales by the year 2020, which stage of the product life cycle is the company in?
growth
Satisfactoriness refers to:
how well an alternative fulfills the conditions of a decision situation.
Which productivity improvement approach is the priority when new equipment is installed?
improve operations
Which productivity improvement approach is at the heart of employee bonus plans?
increase employee involvement
Total factor productivity
overall indicator of how well an organization uses all of its resources, such as labor, capital, materials, and energy, to create all of its products and services.
compliance
people conform to others expectations or behaviors in the hope of acquiring rewards or avoiding punishment
A _____ is the most general form of a standing plan that specifies an organization's general response to a designated problem or situation.
policy
A group of laborers decide to form a union to demand higher wages. This is an example of the behavioral element of _____ in decision making.
political forces
A ______ technique used by Proctor & Gamble is meant to minimize risk by selling a large number of diverse products.
portfolio management
coalition
positive or negative political force in decision making which consists of an informal alliance of individuals or groups formed to achieve a goal
which kind of layout: appropriate when large quantities of a single product are needed
product layout
Leroy is head of supply chain management for Scott's, a producer of lawn chemicals that help prevent weeds and grow healthy grass. When he procures the materials needed to produce Scott's products, he is engaged in
purchasing management .
Unlike programmed decisions, nonprogrammed decisions are:
relatively unstructured and occur much less often.
location efficiencies
seeking lower input cost locations
select the dimension of quality that this service value addresses: I own and immediately resolve guest problems.
serviceability
a policy is an example of a
standing plan
A ____ __ ______ is when a decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative.
A state of certainty
Suppose your business is located about 30 miles from the next major town. If you evaluate whether to open a second salon, what kind of decision is this?
A location decision
_______tries to maintain its current business and to be somewhat innovative in new business, combines elements of prospectors and defenders.
Analyzer strategy
Craig manages the books for the Silver Spoon restaurant. In the past, he's hand-entered charges and payments into his accounting ledger. When his accountant reviewed his records, she found several errors. Which process should Craig seek to use to address this problem?
Automation
_____ is the process of designing work so that it can be completely or almost completely performed by machines.
Automation
Which term refers to the level of productivity achieved by a single company?
Company productivity
_____, a dimension of quality, refers to the degree to which a product's design and operating characteristics meet established standards.
Conformance
_____ helps an organization perceive, or even generate, new opportunities in its environment.
Creativity
Which of the following factors is necessary for the proper execution of a tactical plan?
Evaluating every possible course of action in light of the goal it is intended to reach
_____ are the physical locations where products or services are created, stored, and distributed.
Facilities
_____ refers to an organization's beginning of the business activities formerly conducted by its customers.
Forward vertical integration
Omar decides to buy a pair of running shoes from a store. He likes three pairs of running shoes at the store. Following the steps of rational decision-making process in deciding which pair to buy, which of the following should be Omar's next step?
He should evaluate the feasibility of each pair of running shoes.
If you are managing inventory of finished goods, which source of control should you use?
High-level production scheduling systems
Which term refers to the level of productivity achieved by all the firms in a particular industry?
Industry productivity
The most common form of decision-making group which consists of an existing group or newly formed team interacting and then making a decision
Interacting group approach
You are working as part of a team tasked with identifying potential problems in the company's code of ethics. It's important that flaws in the code be discovered before it is finalized and that means the team should be willing to disagree with each other as the code is discussed. Which team decision-making approach will be best for ensuring the members can openly discuss, argue about, and agree on the best outcome?
Interacting group approach
_____ are decision-making groups or teams in which members openly discuss, argue about, and agree on the best alternative.
Interacting groups
Which of the following is an advantage of the interacting group decision-making method?
Interaction among people can spark new ideas.
Which of the following is the importance of operations management?
It creates value and utility of one type or another, depending on the nature of the firm's products or services.
Which of the following is true of the BCG matrix?
It helps managers understand how strategic business units contribute to an overall organization.
Which of the following is true of a planning task force?
It is created to address a special circumstance.
Which of the following is true of the product-service mix?
It is determining how many and what kinds of products or services to offer.
Which of the following is true of total factor productivity?
It requires all inputs to be expressed in the same terms.
______is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Quality
_____ exists among a set of businesses when the businesses' economic value together is greater than their economic value separately.
Synergy
Which of the following is true of strategic goals? .
They focus on broad, general issues.
When giving advice to employees, managers might use the expression, "Work smarter, not harder." Businesses can raise productivity by investing more hours in production (either by having more employees working or having employees working more hours, respectively) or producing more in the same period through innovative advances in process. Which of the answers that follow best explains why this mantra is relevant for managing productivity?
This mantra suggests that employees have some control over production by identifying process improvements (rather than simply working more or working faster).
Which of the following is a function of a planning staff?
To go beyond pet projects and particular departments
Which term refers to the level of productivity achieved by a single department?
Unit productivity
what are the two types of statistical quality control
acceptance sampling and in process sampling
transnational strategy for international business
attempting to combine the benefits of scale efficiencies pursued by a global corporation, with the benefits and advantages of local responsiveness of a multi domestic corporation.
When setting a _____ , the company is primarily trying to decide how it will compete against competitors.
business-level strategy
bounded rationality
decision makers are limited by their values and unconscious reflexes, skills and habits
select the dimension of quality that this service value addresses: I understand my role in achieving the Key Success Factors, embracing Community Footprints and creating The Ritz-Carlton Mystique.
features
Which method to improving productivity is in use when formal cooperation agreements are devised between management and labor?
increase employee involvement
economies of scale
larger facilities result in lower costs (ex costco, sams)
The classical model of decision making assumes that:
managers are rational and logical in their thought processes.
multi domestic strategy for international business
managing a corporation as a collection of independent operating subsidiaries frees a firm to customize its products, its marketing campaigns, and operating techniques to meet local customer needs. unique for each country's demands/needs
Kraft Foods creates products by taking inputs, such as corn, and transforming those inputs into a finished product—for example, Frosted Flakes. This process is known as ___
manufacturing
Another word for inventory control is _____ because inventory refers to physical goods, which may be used as inputs that are transformed into outputs or finished goods.
materials control
another word for inventory control is _____ because inventory refers to physical goods, which may be used as inputs that are transformed into outputs or finished goods.
materials control
In manufacturing, a firm implementing a differentiation strategy must:
meet specific customer needs.
When Hewlett Packard buys electronic components and assembles them into computers, the activities that guide this process are known as
operations management
One of your company's major competitors recently filed for bankruptcy, which has caused many of its customers to look for a new supplier. This presents your company with an _____
organizational opportunity .
Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. Having a large amount of relatively few products can help to increase economies of scale. This tactic is associated with
overall cost leadership .
Target and Walmart sell athletic clothing at a lower price than specialty retailers. These stores operate under a
overall cost leadership strategy .
Ji-hun works at a manufacturing firm where he is in charge of the inventory for raw materials. The purpose of this inventory is to:
provide materials needed to make products.
Leroy is head of supply chain management for Scott's, a producer of lawn chemicals that help prevent weeds and grow healthy grass. When he procures the materials needed to produce Scott's products, he is engaged in ______ .
purchasing management
An organization has a _____ when it is not implementing valuable strategies that are being implemented by competing organizations.
competitive disadvantage
A fire broke out in a well-reputed hospital in a city. Despite the fire fighters arriving within ten minutes of the occurrence, over a hundred people were severely injured. This was due to insufficient equipment necessary to evacuate people during an emergency. This was clearly a case of the hospital management's faulty _____.
contingency planning
Michael often makes decisions based on _____ ; he decides quickly, effortlessly, and based on his past experiences.
intuition
It is difficult to imitate a distinctive competence because:
its nature might not be understood by competing firms.
Jaime is considering how to best design the _____ of the manufacturing facility. She has to include space for organizing materials, manufacturing, and storage.
layout
Categorize this goal by its level: We seek to provide a 14% or greater annualized return of investment for our shareholders.
level 2
Categorize this goal by its level: We seek to expand by opening 150 new restaurant locations in the next 10 years.
level 3
Categorize this goal by its level: We seek to improve efficiency by implementing a new computerized payment system.
level 4
Which manager is responsible for setting goals like this: Operational goals
lower managers
is this a programmed or nonprogrammed decision? For the past 5 years, you and your best friend have gone for pizza at the same restaurant every Friday night. You just received a text message saying your friend is running late and to go ahead and order the pizza. Without fail, you always get a medium pizza, half with everything on it and half vegetarian, so that is what you tell the waiter. Your decision about what to order is a:
programmed
Which of the following is a similarity between rules and regulations and standard operating procedures (SOPs)?
Both are relatively narrow in scope.
As a team member on a team of subject matter experts in the management of engineering projects, you need to organize team discussions in a way that facilitates the ability for all of the team experts to contribute to the discussion. Which team decision-making approach will be best in ensuring input from the team experts?
Delphi group technique
Brian was asked to analyze businesses by classifying them as winners, losers, question marks, average businesses, and profit producers. He was most likely using the ____.
GE Business Screen
Which of the following is true of satisficing?
It suggests that decision makers search only until they find an alternative that meets some minimum standard of sufficiency.
Lana, the owner of a high-end boutique, claims she selects items for her boutique purely on a hunch. Based on Lana's claim, which of the following is true of Lana's decision-making process?
Lana uses intuition in her decision-making process.
Categorize this goal by its level: We seek to operate a chain of restaurants that prepares high-quality food on a timely basis for a reasonable price.
Level 1
Which of the following must occur for an organization to support differentiation?
Marketing and sales must emphasize the high-value image of an organization's products.
Which of the following is a major tool for managing diversification?
Organization structure
If you are concerned about groupthink negatively influencing your team's decisions, which tactic could you use to minimize the potential for groupthink?
Plan for follow-up meeting where divergent opinions can be expressed.
At Hair's Why, your employees specialize in different services. Some provide only nail services. Others provide only hair services. Which layout will be most efficient for you given this kind of employee specialization?
Process layout
In the planning process, what is the role of strategic goals and plans?
Sets company direction
You are developing a plan for your department to use when replenishing supplies needed to accomplish ongoing activities. What type of plan should you create?
Standard operating procedure
_____ refers to the set of processes involved in creating or determining the strategies of an organization.
Strategy formulation
Which of the following is an organizational strength?
Surplus capital
Which of the following is true of nominal groups?
The members do not freely interact with each other
type of layout where families of products can follow simliar flow paths
cellular layout
is this a business-level or corporate-level strategy? At Apple, managers ask, "Should our next iPad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an iPad?"
business level
is this a business-level or corporate-level strategy? PepsiCo makes and sells large numbers of products, from Pepsi Cola to Lay's potato chips to Cap'n Crunch cereal. Last Tuesday, PepsiCo analyzed the sales of Near East Rice Pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money PepsiCo has in its coffers, managers decided to continue selling Near East Rice Pilaf and advertise it more heavily.
business level
Pablo is assessing how the company can be more efficient and effective. He's planning a redesign of the operations system, so he will be making decisions about____ , which is the amount of products, services, or both that can be produced.
capacity
At Bogle Vineyards, the wines produced follow a similar flow path, as wine moves from barrels into bottles, and bottles into boxes. Bogle should use a____ layout for its configuration.
cellular
is this a business-level or corporate-level strategy? A company's managers ask, "Does it make sense for our vacuum-cleaner company to buy a company that manufactures space heaters?"
corporate level
is this a business-level or corporate-level strategy? Cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company had acquired in the last year and determined how much money each acquisition was making for Cisco. They then decided which companies to keep and which to spin off.
corporate level
Selena fractures the radial bone in her forearm. Her surgeon advises her to undergo a surgery in which a steel plate would be inserted to support the bone. He explains to her that after the surgery there would be only a 70 percent chance of regaining complete movement in the arm and a 30 percent chance of completely losing arm functionality. Selena decides to proceed with the surgery. In this scenario, Selena's decision making process is an example of _____.
decision making under a state of risk
The first stage of the product life cycle is the _____.
introduction stage
A weakness of the single-product strategy is that the:
firm using it will suffer if its product is replaced by a new one.
which kind of layout: org is creating a few very large and complex products
fixed position layout
A _____ is a strategy in which an organization concentrates on a specific regional market, product line, or group of buyers.
focus strategy
Big and Tall Stores serve customers who wear large sizes. Its targeted customer base indicates that the chain is using a ______to gain a competitive advantage.
focus strategy
Zombiesmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicates that Zombiesmith is using a(n) ________ to gain a competitive advantage.
focus strategy
Horizontal consistency of goals means that:
goals should be consistent from one department to the next.
Decentralizing power in the hands of a local subsidiary:
may make it difficult to transfer learning from one subsidiary to another.
Which manager is responsible for setting goals like this: Tactical goals
middle managers
Smiles and Rainbows, a not-for-profit organization, defines the reason for its existence as follows: "To provide effective vocational education for underprivileged children throughout the United States." This is an example of an organization's _____.
mission
is this a programmed or nonprogrammed decision? Univision Communications Inc., a Spanish-language entertainment giant, hired Randy Falco as its executive vice president and chief operating officer. The decision executives at Univision made about whom to pick for this position is a:
nonprogrammed
During the maturity stage of the product life cycle, the:
number of established firms producing the product declines.
A line manager at a brewery sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day. This is an example of a(n) _____ goal.
operational
set by middle- lower managers, short range time frame, specific and concrete scope
operational plans
When referring to a SWOT analysis, the letter O stands for ______ , and it refers to factors that are _______ to the organization.
opportunities; external
One of your company's major competitors recently filed for bankruptcy, which has caused many of its customers to look for a new supplier. This presents your company with an ____
organizational opportunity
Grandpa's Special is a culinary arts training center. Due to its popularity, a large number of people want to join the center. Since Grandpa's Special will not be able to train a large number of people due to insufficient resources, it decides to grant admission only to ladies between the ages 18 and 25. This is an example of a _____.
policy
is this a programmed or nonprogrammed decision? Greg arranges for new employees to have computer and phone access set up before their first day on the job. Based on the new person's job title, Greg communicates to the IT department what access is permitted according to the new person's job title. Greg's arrangements for a new employee who begins next week are a:
programmed
An organization that implements a defender strategy focuses on:
protecting its market from new competitors.
A friend asked if you would like to open a deli near your school's campus, where there are very few inexpensive places to eat. Although a deli probably would be successful, you declined; even the possibility of losing money made you too nervous due to your low
risk propensity .
Imagine that your friend, Eve, applied to attend universities only located in New York, which means she will encounter cold weather and snow in the winter. Assuming she is accepted at those schools, Eve will choose a school with a ________ regarding the weather she can expect.
state of certainty
type of plan which would be developed in order to achieve it: We seek to expand by opening 150 new restaurant locations in the next 10 years.
strategic
Tactical plans are an organized sequence of steps designed to execute _____.
strategic plans
set by board of directors, long range time line, general scope
strategic plans
Sam owns a small cafe that faces competition from a new restaurant across the street. Sam may want to perform a SWOT analysis to inform his _______
strategy formulation .
In order to further an organization's goal of increasing sales by a large margin, the managers coordinate the acquisition of a number of retail outlets in smaller cities. These acquisitions represent the implementation of a(n) _____ plan.
tactical
type of plan which would be developed in order to achieve it: We seek to provide a 14% or greater annualized return of investment for our shareholders.
tactical
Friendly Faces, a not-for-profit organization, sets a target to feed 100 children every day for one year. Rehaan, the local resources manager, is given the responsibility of achieving this goal. In keeping with the guidelines of tactical planning, Rehaan plans to first identify 100 children who could benefit from this project. Rehaan's plan is an example of a _____.
tactical plan
set by upper middle management, intermediate time frame, somewhat specific scope
tactical plans