MGNT 3070 Midterm 2

________ is(are) another way of describing a vertical hierarchy. A) An upward graph B) An X-Y chart C) A chain of command D) A network structure E) Corporate steps

C) A chain of command

PC's & More has shifted to sales and service of laptops and PCs, where it has the potential to triple the number of its customers. The company is no longer offering repairs on older types of office equipment because the demand for service on this equipment is low, and profits in that part of the business have dropped significantly. PC's & More is implementing a ________ strategy. A) growth B) cutting-edge C) stability D) defensive E) diverse

A) growth

Freedom Party advertisements about Representative Adam Johnson, the United Party candidate, portray him as lazy, dishonest, and poor at his job. At the same time, the United Party's ads for Adam Johnson describe him as a caring, honest, hard worker. The sponsors of these advertisements know that ads can affect whom voters choose on Election Day. The tendency of decision makers (the voters in this example) to be influenced by how a situation or problem is presented to them is an example of A) framing bias. B) stirring the waters. C) goal displacement. D) overconfidence bias. E) the fog effect.

A) framing bias.

Simply You has a president, vice president of marketing, and vice president of finance, each with their own departments under them. This is an example of which organizational structure? A) functional B) matrix C) horizontal D) hollow E) modular

A) functional

Which of the following is a tactical goal? A) By the end of this fiscal year, we will achieve a 10 percent cost reduction in our office expenses. B) Within two years, we will enter into a strategic alliance with a company that is able to effectively market and sell our products in China, India, and other emerging economies. C) This company has a policy of conducting a background and credit check on all job applicants. D) Smoking on the factory floor is strictly prohibited; anyone caught smoking in company facilities will be disciplined immediately. E) As a company, we are committed to increasing our online presence through social media.

A) By the end of this fiscal year, we will achieve a 10 percent cost reduction in our office expenses.

Party Supply uses time-series forecasts, such as past holiday sales and the strength of store sales this year, to predict future sales based on patterns of historical data. Party Supply is using A) analytics. B) the synergy trend. C) decisions by trends. D) focused trend. E) Big Data.

A) analytics.

Lester, a chef and owner of Green Lantern, a popular restaurant, is always visiting his competitors to observe how they are doing things in their restaurants. He told one of his managers, "I eat dinner at a lot of restaurants because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item, like ours but better." In which activity is Lester engaging? A) assessing current reality B) environmental planning C) TQM D) corporate spying E) management by observation

A) assessing current reality

Joelle wants to broaden her functional knowledge. Which of the following activities should she engage in? A) attending a business conference B) reading a business article C) writing a reflection journal D) wearing a blue hat E) studying the company's annual report

A) attending a business conference

Raheem, a salesperson for the Fine Dining catering company, is working with a longtime customer who is interested in either cutting back on their annual catered events or getting a better price due to the tight economy. Raheem tells his manager, "I want to take care of the customer with the best value. So what do you think is the best package to offer in this situation?" Raheem and his manager are trying to utilize the A) contingency design. B) streamlined design. C) focused spending approach. D) boundaryless approach. E) mechanistic design.

A) contingency design.

Setting a ________, Joy wants to sell 80 percent of her old merchandise prior to the new arrivals shipping. A) goal B) vision C) business plan D) mission statement E) norm

A) goal

Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the world through inspiring product design, unique store experiences and competitive marketing." This is the company's A) mission statement. B) belief statement. C) goals pact. D) code of ethics. E) management pledge.

A) mission statement.

For MBO to be successful, top management must be committed to the program, MBO must be applied organizationwide, and A) objectives must cascade. B) employees need to provide continuous feedback to each other. C) objectives must remain fixed and unchanging. D) objectives must be generated from the bottom up. E) there must be community support.

A) objectives must cascade.

When Ford was slow to recall vehicles to fix a possible carbon monoxide leak, it was most likely due to ________, because Ford was convinced that the modifications made by police departments were the cause of the problem, not the manufacturing of the vehicle. A) overconfidence bias B) hindsight bias C) framing bias D) escalation of commitment bias E) sunk-cost bias

A) overconfidence bias

At the end of the company retreat, Dashaun had a blueprint for how to move forward for the year. His primary objective had been met. What do you think his primary objective was? A) to have an outline of how the goals were going to be met B) to have an explanation of the company's new slogan C) to understand the financials so that he could explain them to the shareholders D) to have a guide for ethical decision making E) to have a set of research and development priorities

A) to have an outline of how the goals were going to be met

Four Seasons Lawn and Landscaping provides customers with quality and value, treats others as they want to be treated, and practices open communications with all stakeholders. These are part of their A) values statement. B) vision statement. C) mission statement. D) strategic formulation. E) reality assessment.

A) values statement.

Which of the following is an example of a rule? A) "We believe that the customer comes first." B) "We are committed to hiring a workforce whose diversity mirrors our customers." C) "An employee who comes to work intoxicated will be terminated immediately." D) "Sexual harassment will not be condoned in this organization." E) "At their discretion, department managers can offer summer working hours to their employees."

C) "An employee who comes to work intoxicated will be terminated immediately."

A formal chain of command, the standardization of rules and procedures, and the use of cross-functional teams and computer networks so that there is frequent communication and coordination of the parts are the means for achieving A) higher sales through analytics. B) a common goal through integration. C) lower costs through efficiency. D) higher profits through goal setting. E) differentiation through specialization.

B) a common goal through integration.

Value Products is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them launch new restaurants successfully. Value Products is pursuing a ________ strategy. A) single-product B) diversification C) focused-differentiation strategy D) differentiation E) multiproduct

B) diversification

Grandma's Bakery wants to begin selling gluten-free products and vegan products. The C-Suite executives have made the decision and are now wanting the change implemented. Whose planning will move this from the decision level into production? A) senior-level managers B) functional managers C) acquisition managers D) small-business managers E) strategic managers

B) functional managers

Research suggests that when writing out a plan to achieve your biggest goals, it is important to A) focus on broad rather than specific goals. B) identify your options and track your progress. C) make a general plan, which embeds your intentions firmly in your memory. D) keep plans and goals private. E) avoid specific goals because it increases stress.

B) identify your options and track your progress.

Which of the following is not a hindrance to perfectly rational decision making? A) complexity B) intuition C) managers' different values D) information overload E) conflicting goals

B) intuition

Katia, the computer department manager at Tech Enterprises, is considering whether to use a group to develop a plan to help employees sell extended warranties on technology sales. Katia should consider having the group make this decision if A) time is of the essence. B) it will increase acceptance of the plan. C) group members are not knowledgeable and need to learn more. D) group members are overly confident about decision making. E) the decision-making group is exceptionally large.

B) it will increase acceptance of the plan.

If you are tasked with writing employee schedules and to-do lists for managers, what level of planning are you involved in? A) strategic planning B) operational planning C) delegation planning D) human resource planning E) tactical planning

B) operational planning

Effective execution requires managers to build a foundation for execution within which three core processes found in any business? A) leading, planning, and recruiting B) people, strategy, and operations C) diversity, people, and profitability D) people, planning, and leading E) leading, synergy, and diversity

B) people, strategy, and operations

Scott and his partner, Greg, have decided to update their computer network, although they have no expertise in this area. During a meeting with Greg, Scott commented that "Our decision is limited by numerous constraints, such as our understanding of the complexity of technology, time and money, imperfect information, and our conflicting goals." These limitations are hindrances to A) satisficing. B) rational decision making. C) intuitive decision making. D) MBO. E) nonrational decisions.

B) rational decision making.

Chris and his family have developed a successful business selling a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently, Organic Seed, a national seed company, has been marketing a powdered chemical fertilizer to its customers; Organic's fertilizer is less expensive than Chris's product. Organic's efforts are an example of the ________ in Porter's model for industry analysis. A) buyers' negotiating influence B) rivalry among competitors C) threats of substitute products and services D) power of the suppliers E) threats of new ideas

B) rivalry among competitors

It was brought to Dwight's attention that one of his hotel employees had a substance abuse problem. Without fully investigating the issue, Dwight decided to fire the employee. Dwight was using A) unemotional analysis. B) satisficing. C) immersion. D) feasibility. E) intuition.

B) satisficing.

How does the text suggest prioritizing your decisions? A) Become a good and patient listener. B) Load up on new facts and information. C) Organize your decisions into three categories. D) Identify weak spots in your process. E) Keep an open mind.

C) Organize your decisions into three categories.

In 2009 and 2010, Toyota had to recall millions of automobiles due to uncontrollable acceleration. This recall forced upper-level management to rethink many things. For example, Toyota had become too focused on profits. As a business coach, where would you recommend Toyota begin? A) Step 1: Establish the mission, vision, and values statements. B) Step 2: Assess the current reality. C) Step 3: Formulate the grand strategy. D) Step 4: Implement the strategy. E) Step 5: Maintain strategic control.

C) Step 3: Formulate the grand strategy.

Research on MBO shows that people are impelled to set more difficult goals when A) the goals have a significant impact on profitability. B) employees can avoid personal development. C) both management and subordinates participate. D) the goals emphasize corporate social responsibility. E) ethics are not a consideration.

C) both management and subordinates participate.

Organizations using a matrix structure A) contain multiple overlapping command structures, in which all employees report to three or more managers. B) centralize authority into a single person. C) contain two command structures, in which some people report to two bosses. D) establish a hierarchy in which employees report to only one supervisor. E) utilize teams or workgroups with few lines of authority.

C) contain two command structures, in which some people report to two bosses.

According to Lawrence and Lorsch, the stability of an organization's environment determines the degree of A) synergy needed in an organization. B) differentiation and efficiency needed. C) differentiation or integration that is appropriate. D) profitability that is vital. E) marketing and integration that is profitable.

C) differentiation or integration that is appropriate.

Making formal statements, engaging in rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to (embedding cultural change) A) write a strategic plan. B) perform competitive analysis. C) effect corporate change. D) conduct formal market research. E) follow legal requirements.

C) effect corporate change.

Cozy Café is a restaurant chain that offers a relaxing environment to enjoy quality coffees, teas, soups, and other menu items. A poster in the front of each restaurant reads, "We will always provide a quality product to help our customers better meet the challenges of their day and will always take the time to offer caring service one person at a time." This statement is Cozy Café's A) belief statement. B) goals pact. C) mission statement. D) code of ethics. E) management pledge.

C) mission statement.

The management of Computer Rescues, Inc. finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan (tatical) that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) ________ plan. A) dependent B) strategic C) operating D) facilities E) typical

C) operating

The management of Computer Rescues, Inc. finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan (tatical) that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) ________ plan. A) dependent B) strategic C) operating D) facilities E) typical

C) operating

If you want all your stores to only accept returns with receipts, this would be an example of a(n) A) procedure. B) industry standard. C) rule. D) policy. E) certified procedure.

C) rule.

Luxottica, a manufacturer of fashionable prescription eyewear, notes on its website, "To see the beauty of life inspires its sustainable and ethical business approach and its corresponding pillars, including a commitment to excellence, visual well-being, social impact, and environmental protection." This excerpt from the company's website states Luxottica's A) code of ethics. B) business plan. C) vision statement. D) expense report. E) marketing plan.

C) vision statement.

One Fortune article states that "vision should describe what's happening to the world you compete in and what you want to do about it" and A) "it should help reduce competition." B) "it should guarantee organizational success." C) "it should guide decisions." D) "it should improve employee morale." E) "it should reduce the glass ceiling."

C. "it should guide decisions."

How would you describe Amazon's commitment to continuous evolution? A) It is one of their value statements. B) It is their vision statement. C) It is their mission statement. D) It is their strategy or strategic plan. E) It is their business model.

D) It is their strategy or strategic plan.

________ is(are) included in strategic control. A) Implementing MBO B) A strong employee diversity and synergy agenda C) Seldom making adjustments to a strategy D) Monitoring the execution of strategy and making adjustments, if necessary, E) Developing a diversity plan

D) Monitoring the execution of strategy and making adjustments, if necessary,

Mark Zuckerberg stated that Facebook's early idea was to "Move fast and break things." He set that as his strategy for the company. Was he using the concept of strategy correctly? A) Yes, because mission statements are a part of strategic plans and this was a clear, concise mission. B) Yes, because it provided a vision for this new endeavor for others to share. C) Yes, because he involved managers from all parts of the organization. D) No, because a strategy sets a long-term goal and direction for an organization. E) No, because this was a short-term goal and provided the initial slogan for the company.

D) No, because a strategy sets a long-term goal and direction for an organization.

________ is a data-mining technique used to predict future behavior and anticipate the consequences of change. A) Data digging B) The decision tree C) Decisions by trends D) Predictive modeling E) GIGO

D) Predictive modeling

You receive a memo that reads as follows: "In recent months, our customer evaluations have dropped, and our sales have decreased by 10 percent. To restore our business, we will do the following: (1) We will contact all of our customers and offer a 10 percent discount on their next purchase. (2) For the customers who spend more than $1,000 per year, we will invite them to join our Insiders' Club, which gives them discounted tickets to concerts and sporting events. (3) Effective immediately, we will begin staffing our call center 24 hours a day, 7 days a week. (4) Customer-service personnel will be given more discretion in helping customers resolve problems, with minimal interference from supervisors." This memo is a(n) A) mission statement. B) VRIO analysis. C) business model. D) action plan. E) a SMART goal.

D) action plan.

When Damien, the sales manager, is deciding on who will train the new sales trainee, he tries not to look at just the recent sales numbers but also checks past sales reports to determine who is the most productive salesperson. By using this method he is not affected by the ________ bias. A) sunk-cost B) adjustment C) representativeness D) availability E) escalation of commitment

D) availability

At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and A) have more stability than at other levels. B) have more control over employee issues. C) have less competition. D) deal with uncertain and competitive conditions. E) be more likely to understand the competition.

D) deal with uncertain and competitive conditions.

World Grocer sells high-quality products and grocery items that are unique to its highly populated area; in addition, it offers delivery for customers who are unable to leave their home and a number of regular workshops regarding healthy eating. By offering these types of products and services, World Grocer is pursuing a ________ strategy. A) cost-savings B) cost-focus C) value-focused D) differentiation E) focused-differentiation

D) differentiation

When Sebastian wrote the contract with BP for over two billion dollars, he included targets for performance that had to be met before a payment would be released. Sebastian was trying to avoid ________bias. A) overconfidence B) hindsight C) framing D) escalation of commitment E) sunk-cost

D) escalation of commitment

Management by objectives (MBO) and goal cascading will NOT work without an effective A) technology component. B) contingency plan. C) bonus-based compensation plan. D) goal-setting process. E) layer of middle management.

D) goal-setting process.

The nutritionists, chefs, and taste testers who work for Healthy Foods, an organization that creates health foods that taste good and are good for you, work together for a common goal of ending obesity and diabetes. This shows how Healthy Foods uses ________ in its organization. A) diversity B) contingency design C) differentiation D) integration E) autocratic structure

D) integration

The three types of MBO objectives are A) performance, behavioral, and motivational. B) strategic, performance, and behavioral. C) learning, motivational, and proactive. D) performance, behavioral, and learning. E) strategic, motivational, and performance.

D) performance, behavioral, and learning.

To ensure that plans are moving in the right direction, managers can use a(n) A) means-ends chain. B) synergy method. C) efficiency plan. D) planning/control cycle. E) satisficing strategy.

D) planning/control cycle.

With setting SMART goals, you should choose only a few goals on which to focus. These goals should be results-oriented and A) support the company's diversity plan. B) align with the beliefs of the local community. C) keep employees happy. D) support the organization's vision. E) meet low-cost goals.

D) support the organization's vision.

The top management of Fresh, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Charles, a division manager for Fresh, has looked at his resources, and he has decided how his division can contribute to the two strategic goals set by upper management: (1) by partnering with another company and (2) by hiring a procurement manager to negotiate lower prices from vendors. Charles' next step is to roll out his ________ to his staff. A) vision statements B) management guidelines C) codes of ethics D) tactical goals E) operational goals

D) tactical goals

Which of the following is an example of a mission statement? A) "to create a world where the family farm is valued over the large-scale production of agribusiness" B) "to become a beacon of hope for those suffering from mental hardship" C) "to make education accessible to everyone in the world" D) "to engage in business practices that are not only legal but also ethical" E) "to offer the lowest prices on new hardcover books, anywhere in the world"

E) "to offer the lowest prices on new hardcover books, anywhere in the world"

Climax Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional database management systems cannot handle its customers' needs. Therefore, Climax purchased very sophisticated analysis software and supercomputing-level hardware. Climax Medical Technology is tapping the power of A) cyber-age databases. B) mega IT. C) super data. D) new age computing. E) Big Data.

E) Big Data.

________ are at the top of the organization and get more specific as they move toward ________. A) Short-term goals; long-term goals. B) Customer service goals; employees. C) Financial goals; the shop floor. D) Objectives and activities; upper-level management. E) Cascading goals; individual employees.

E) Cascading goals; individual employees.

While preparing a self-assessment of your job performance the previous year, you are required to list three goals for the coming year. You list the following as one of your goals: "I will triple sales in my territory by the end of the next fiscal year." Based on the SMART criteria, what is the problem with this goal? A) It does not have a target date. B) It is not specific. C) It is not measurable. D) It is not results-oriented. E) It is not attainable.

E) It is not attainable.

You have been asked by a new a hair salon, Twist & Braid, to identify whether or not they should expand the business either by opening a new salon or expanding the current salon to offer new services. As a first step, you interview the owner and clients as they come in for their appointments. You also visit a few other local businesses and conduct interviews of people as they pass by. You also review Yelp and Facebook for reviews of the salon. Which of the following best describes the process you are implementing? A) re-envisioning B) branding C) VRIO D) MBO E) SWOT

E) SWOT

You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: Am I being responsive and to the customer? Is it innovative? Can I offer a quality product? After asking these questions, review and identify which question you forgot to ask that would give you a sustainable advantage. A) Is the resource or capability valuable? B) Is the resource or capability currently controlled by only a few firms or no other firms? C) Is the firm organized to exploit the resource of capability? D) What values should be emphasized? E) What is its level of effectiveness?

E) What is its level of effectiveness?

You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: Am I being responsive to the customer? Is it innovative? Can I offer a quality product? After asking these questions, review and identify which question you forgot to ask that would give you a sustainable advantage. A) Is the resource or capability valuable? B) Is the resource or capability currently controlled by only a few firms or no other firms? C) Is the firm organized to exploit the resource of capability? D) What values should be emphasized? E) What is its level of effectiveness?

E) What is its level of effectiveness?

Luke and Mia are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to reduce the price to reflect what the marketplace shows their home is really worth. Luke and Mia are participants in ________ bias. A) blind B) ego C) confirmation D) sunk-cost E) anchoring and adjustment

E) anchoring and adjustment

How often should a company revise its strategic plan? A) every five years rather than every two years B) every five years rather than every ten years C) every ten years D) continuously E) closer to every one or two years

E) closer to every one or two years

Bill is the new CEO at World's Fair, a nationwide store that specializes in unique items from around the world. At his first managers meeting, he told them he likes to think of his management style as practical, efficient, logical, and systematic. Which style of decision maker is Bill? A) analytical style B) conceptual style C) value style D) behavioral style E) directive style

E) directive style

You are the CEO of a major corporation. You have been tasked by the board of directors to turn the company around as they just let the last CEO go for a difference in opinion. Being new, where would you focus your attention first? A) finding qualified employees B) stimulating innovation C) customer loyalty D) profit growth E) execution

E) execution

The Safety Committee at Washington Bakers was formed to help make the store a safer place, and some of the committee's suggestions are going to be costly. During the committee meeting, the vice president of accounting announced that company profits were much lower than expected, and she suggested that profits are more important than safety. The profit goal is now outweighing the committee's safety goal, which is an example of A) goal bumping. B) groupthink. C) secondary placement. D) satisficing. E) goal displacement.

E) goal displacement.

The Safety Committee, a temporary team at Quantum Mechanics, was established to make the factory floor a safer place. Members of the committee still work in their departments full-time, but they meet twice a month for a few hours as a committee. The Safety Committee is an example of a ________ within an organization. A) vertical design B) modular design C) multipurpose design D) common purpose E) horizontal design

E) horizontal design

Leo is starting a company that leases shared workspaces, and he has approached SCORE, an SBA organization that assists small-business owners in setting up their companies. The SCORE counselors would probably advise Leo, as a new business owner, to A) learn from experience, the best teacher, rather than a mentor. B) avoid developing a business plan the first year of business. C) try new things regardless of the risk. D) get a new perspective by asking people who have failed. E) write a business plan.

E) write a business plan.

Candice, owner of Green Solar Panels, has found that some of her department managers were using management by objectives, but the accounting and sales managers were not. Candice can still expect that the MBO program she introduced will yield results.

False

Eduardo's new company wanted to be transparent about all their products, so he chose to market his cleaners as 30 percent toxic and 90 percent effective. His brother, Marco told him that his idea would not work, but Eduardo said he was going to stick to his idea. He is using his hindsight bias.

False

Organizational culture appears in four layers: clan, adhocracy, market, and hierarchy.

False

When Nordstrom's says, "Leave it better than we found it. We work hard to be a company that our employees and our customers can be proud of. For us, that means doing our best to support the many people and communities we serve. It also means respecting the environment by reducing our impact and conserving resources where we can. We strive to make people feel good and show that Nordstrom is a company that cares." They are sharing their mission.

False

When evaluating the alternatives of a decision, managers need to base decisions strictly on cost, quality, and feasibility.

False

Executive Office Supply, a small family-owned company, sells high-priced desks, some as expensive as $10,000, to executives in its area. Very few companies have chosen to market this product, and Executive Office Supply has enjoyed record profits over the last 25 years. As their financial planner, you would advise Executive Office Supply to not utilize strategic planning.

True

Heather is the store manager for a national grocery retailer, and she received the yearly tactical plan from Sanjay, her district manager. Heather is meeting with her department managers to plan how to implement the specific tasks outlined in Sanjay's plan for the next year. Heather is engaged in operational planning.

True

When using MBO, managers should meet with employees reasonably often—either informally as needed or formally every three months—to review progress.

True

While figuring out how to save money for a bride who is having financial problems, Cadence, the catering manager of I Do I Do, asked her assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal within their budget?" Cadence and her assistant are using the contingency approach.

True