MGMT 320 - Test 2 Sample Questions

Which of the following refers to short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services? Tactical goals Strategic goals Business-level strategy Operational goals

Operational goals

Which of the following refers to the decision maker's decision to choose the first alternative that appears to resolve the problem satisfactorily? Satisficing Risk propensity Brainstorming Bounded rationality

Satisficing

Which of the following refers to a separate division within a company that has its own mission, goals, strategy, and competitors? Cash cow Question mark Star Strategic business unit (SBU)

Strategic business unit (SBU)

Which of the following refers to a strategy of acquiring or developing other businesses, which must ultimately be justified by its ability to build stockholder wealth? Differentiation Divestment Portfolio analysis Diversification

Diversification

Which of the following refers to the tendency to persist with a failing course of action? Satisficing Bounded rationality Escalation of commitment Risk propensity

Escalation of commitment

What is meant by focus? A course of action for implementing strategic plans and achieving strategic goals A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price The product life cycle stage marked by decreases in the product's market share A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

Which of the following characteristics relates to an organizational chart? The design of jobs based on the principles of division of labor and specialization The pattern of concentrating authority in a relatively few, high-level positions The division of work into smaller, distinct tasks A graphic display of the official lines of authority and communication within the organization

A graphic display of the official lines of authority and communication within the organization

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share? Growth Focus Maturity Cash cow

Growth

According to the Boston Consulting Group, what are question marks? Those businesses that tend to generate excess cash over what is needed for their continued growth due to their high market share in a slow-growing market Businesses that have only minimal profits or even losses due to their low market share in slow growing markets Those businesses that have high market shares and operate in industries experiencing major growth Those businesses that are viewed positively in the sense that they are located in attractive, fast-growing markets, but for which there is a question as to their ability to compete, given their low market share

Those businesses that are viewed positively in the sense that they are located in attractive, fast-growing markets, but for which there is a question as to their ability to compete, given their low market share

In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called a weakness. a strength. an opportunity. a threat.

a strength

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a rare synergy. distinctive competence successful strategy. consumer monopoly.

distinctive competence

As it relates to decision making, risk may be said to be the condition that exists when uncertainty clearly dominates certainty. decision makers decide to take a chance. information is reliable, but incomplete. information is unreliable and incomplete

information is unreliable and incomplete

Achieving the ____ goals leads to fulfillment of the ____ goals, which leads to fulfillment of the ____ goals. strategic; tactical; operational tactical; strategic; operational operational; strategic; tactical operational; tactical; strategic

operational; tactical; strategic

All of the following describe managers with a directive style of decision making EXCEPT they dislike ambiguity and desire power. they prefer to take their time analyzing data and examining different alternatives completely before making a decision. they base their decisions on facts and are focused upon results. they make decisions based on limited information.

they dislike ambiguity and desire power.

The condition under which managers are least confident about their decision making and most prone to error is risk. chaos. uncertainty. anxiety.

uncertainty