MGT 2010 Exam 2

Marah has been tasked with the job of outlining decisions about resource allocation, priorities, and action steps that are necessary to reach one of her company's strategic goals. What is Marah developing?

Strategic plans

What is the process of creating or determining the organization's strategies?

Strategy formulation

How does strategy formulation relate to strategy implementation?

Strategy formulation is the set of processes involved in creating an organization's strategies, whereas strategy implementation is the methods by which those strategies are operationalized.

Sabine is focusing on the processes to use to achieve her strategies and goals for the year. What is Sabine working on?

Strategy implementation

What is the method by which processes are operationalized or executed within the organization?

Strategy implementation

What is a potential downfall when using a SWOT analysis?

Subjective assessment

How is an organizational threat different from an organizational weakness?

Threats are uncovered by analyzing the organization's environment, while weaknesses are internal to the organization.

Ramkumar works in an organization's European office, and Atmir works in the Asia 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

A theoretical advantage of unrelated diversification is that _____.

a business will have stable performance over time

A manager who relies heavily on intuition and reaches decisions quickly has the characteristics of a person with _____.

a high level of risk propensity

Tactical plans must flow from and be consistent with _____.

a strategic plan

Decision making is the process of _____.

adopting one course of action as opposed to others

Unlike multidomestic firms, global corporations _____.

assume that customers are the same regardless of nationality

Bess, the purchasing manager at World Textiles, is choosing a supplier for the cotton fabric to be used for a new line of youth bedsheets from among four bidders. Bess is engaged in _____.

decision making

The decision-making process begins by _____.

defining the decision situation

When a decision maker stays with a decision even when it appears to be wrong, the behavioral process is called _________.

escalation of commitment

The final step in the rational decision-making process is _____.

evaluating the results of the chosen alternative

Horizontal consistency of goals means that _____.

goals should be consistent from one department to the next

Woojin is looking at expanding his organization to overseas markets. Part of his consideration on where to open a new facility is based on the ability to move goods in and out of the country. Woojin needs to look carefully at _____.

infrastructure

Dajhia has assembled a task force to consider ways to respond to the threat of unionization by some hourly employees. This task force is an example of a(n) _____ .

interacting team

Because the process of group or team decision making takes longer, _____.

it is costlier

The light assembly plants built in Northern Mexico close to the U.S. border, which are given tax breaks by the Mexican government, are referred to as _____.

maquiladoras

Decentralizing power in the hands of a local subsidiary _____.

may make it difficult to transfer learning from one subsidiary to another

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

Which of the following is an organizational strength possessed by only a small number of competing firms?

A distinctive competence

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 model reflects the subjective considerations that often impact decision making and explain why, when a decision is made with little regard for logic, it can still turn out to be correct?

Administrative

In which way do organizations determine alternatives for working in a particular industry or market?

By setting business-level strategies

How can organizations make the best use of goal setting and the goal-setting processes?

By understanding the purpose of goals and planning

Who is considered to be the single most important person or entity in any organization's planning process?

Chief executive officer

Which economy has become the second largest economy in the world, behind the United States?

China

In the event of a disaster or other unexpected calamity, where can a plan with procedures for handling the disaster be found?

Crisis management

Darian has a profitable software company in his home country, but he wants to sell his software in international markets. He knows he can make modifications to his current facility that will work in other markets. Which type of approach to internationalization should Darian pursue?

Exporting

Which was the first, and often considered the most important, economic community in the world?

European Union

What is the first step that a manager should take in executing a tactical plan?

Evaluate every possible course of action in light of the goal it is intended to reach.

Lupita's company is experiencing high turnover and she needs to develop a solution. Using the rational decision-making process, Lupita thinks that adding benefits might not help with turnover, but increasing wages or changing hiring standards might. Which step in the decision-making process is Lupita in?

Evaluating alternatives

What is defined as a commitment to finding and using the best theory and data available at the time to make decisions?

Evidence-based management

When governments voluntarily limit the amount of goods exported to or imported from a particular country, what are they establishing?

Export restraint agreements

What is true of a tactical plan?

It is developed to implement specific parts of a strategic plan.

Raphael has set a goal of improving employee satisfaction by 10 percent over the next year. Why might this goal be inappropriate?

It is difficult to quantify.

In which stage of the product life cycle should an organization begin to search for new products or services as part of its strategy?

Maturity

Lighthouse Cinema has remained a popular entertainment option for the surrounding area, but sales have been stagnant over the past few years. Which stage of the product life cycle is the theater in?

Maturity

Overall demand growth for a product begins to slow down during which stage of the product life cycle?

Maturity

Who is likely responsible for planning cost-cutting programs and inventory control systems?

Operations managers

How can encouraging creativity and flexibility help an organization that is pursuing a prospector strategy?

Opportunities can be created and it can quickly change to take advantage of them.

What is a standing plan that specifies the organization's general response to a designated problem or situation?

Policy

Armen runs a profitable jewelry manufacturing company and sells in many international markets. However, one country he sells to has just placed a limit as to how his company can sell in that country. Which of the following will now limit how much Armen can sell?

Quota

The exact description of how specific activities are to be carried out would be found in which type of plan?

Rules and regulations

Petra is uncertain where to begin in formulating strategy for her division. What is a good place for her to start?

SWOT analysis

Which of the following specifies the range of markets in which an organization will compete?

Scope

Rebeya is setting goals with the executive team of her organization. These goals include financial and productivity goals, as well as environmental and sustainability goals. Which type of goals is Rebeya establishing?

Strategic

Which type of plans are set by the board of directors and top management?

Strategic

Dezmon, a small parts manufacturer, is looking for quick entry into foreign markets with access to materials available in those markets. Which approach to internationalization would best fit his needs?

Strategic alliances

Raj has empowered his senior managers and asked them to increase profitability by 20 percent over the next five years. What has Raj set for his senior managers?

Strategic goal

What are the primary inputs for developing tactical goals?

Strategic goals

Amina is working on developing and implementing ideas in order to take advantage of business opportunities and challenges in the market. Which skills will Amina need to use to approach those challenges and opportunities?

Strategic management

WholePath Cereals introduced a new line of whole grain cereal for children. Formal surveys have shown that customers do not like the taste of the cereal, and even those who bought it once are not repeat customers. WholePath invested a lot of money in developing and marketing the new product. To protect their investment, they have increased the advertising budget to try to increase enthusiasm and generate additional sales. Which of the following concepts is illustrated in the scenario?

Escalation of commitment

What is one of the reasons why an organization would have organizational goals?

To set a unified direction for employees

Why is it critical for an organization to understand that eventually a product will go into the decline stage?

To stay in business

Which of the following is the starting point of ensuring commitment to the goal-setting process for organizational goals and plans?

Top management support and communication

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

When receiving a new project form his manager, Manoj likes to know all the details and expectations up front. If some information is unavailable, Manoj finds this very stressful. Which of Hofstede's orientations would Manoj have a low level of?

Uncertainty acceptance

A line manager at a brewery sets a target for the minimum number of beer cartons that must be shipped out by the end of each day. This is an example of a(n) _____.

operational goal

When devising a new strategy, it is best to start with what?

A SWOT analysis

What is a strategy?

A comprehensive plan for accomplishing an organization's goals

In what way is a global business different from a multinational business?

A global business is not committed to a single home country.

Pallavi knows that if she can achieve the goals set by her manager, she is likely to receive a bonus. In this case, what does the setting of goals serve as for Pallavi?

A source of motivation

What is a tariff?

A tax collected on goods shipped across national boundaries

What is the advantage of setting business-level strategies?

Ability to focus efforts in a targeted manner

Apoorva works for a multinational organization, and she is in charge of the local division. Which type of work will be expected of her?

Addressing local and regional issues

Apoorva's organization makes decisions using evidence-based management. What can Apoorva do to support a culture in which facts are encouraged?

Allow people to tell the truth, even if it is unpleasant.

What is the difference between a standard operating procedure (SOP) and rules and regulations?

An SOP typically describes a sequence of activities, whereas rules and regulations focus on one activity.

What is a coalition?

An informal alliance of individuals or groups formed to achieve a common goal

The local party store developed a busy lunch business by offering slices of pizza and deli sandwiches to go. They also offered a wide selection of soft drinks in their coolers. Recently, a fast-food restaurant opened down the street, and it offers salads and bottled water. To compete, the party store did the same and expanded its other menu offerings. Which type of business strategy did this store use?

Analyzer

Which type of strategy would allow an organization to try and maintain its current business while also trying to be innovative and pursue new businesses?

Analyzer

Eastside Community Center (ECC) operates to "foster inclusiveness and empower teens" in underprivileged neighborhoods. Jane, the center's executive director, is one year into a three-year plan to double ECC membership. At this point, she has seen only a 10 percent increase in membership. Which of the following is the best tactical plan to better achieve the organization's goals?

Assigning two key employees as liaisons to the local high schools for the next year

Which of the following is a recommendation made by the proponents of evidence-based management?

Avoid basing decisions on what has been done in the past.

Who establishes the corporate mission and strategy?

Board of directors

Which concept can be used by managers to develop a better understanding of their inherent biases and limitations?

Bounded rationality

Which of the following suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits?

Bounded rationality

BritTrek is a British bicycle company. It produces its mountain bikes in England and sells them throughout North America. Which of the following best characterizes this arrangement?

BritTrek is exporting its products to North America.

JJ's Auto Repair is where most residents go for any type of car repair. Inspired by his entrepreneurial son, JJ has decided to open a detailing shop on an adjoining property. Which type of strategy targets the market of local automobile owners for the purpose of increasing revenues?

Business-level

How is a medium-sized organization likely to work with international markets?

Buying and selling products

In a SWOT analysis, how will the identification of strengths help to accomplish an organization's mission?

By allowing the exploitation of skills and capabilities

How can a global firm capture economies of scale in its production process?

By building factories that serve more than one country

According to the BCG matrix, which type of organization is not expected to grow substantially, even though it currently has a large share of the market?

Cash cows

Which type of decision-making approach assumes that managers are logical, that they have complete information, that they can eliminate uncertainty, and that all of the decisions they make will be in the best interests of the organization?

Classical

Several managers agreed that the current course of action in the firm was leading to disaster. The managers submitted a plan to the CEO suggesting an alternative they think will be significantly more effective, and they have agreed to continue to work together until this new plan is put in place. Which of the following have these managers used to promote the new goal?

Coalition

What is the essence of formal goal setting?

Collaborative goal setting

Which aspect of social orientation is the belief that the group comes first?

Collectivism

Which of the following occurs when an organization is not implementing valuable strategies that are being implemented by competing organizations?

Competitive disadvantage

What does the GE Business Screen use to determine the attractiveness of an organization?

Competitive position

A small retail shop in the local community offers a wide variety of women's clothing at low prices. In order to be competitive with larger chains found at the mall, the store owner frequently works alone, and she has adjusted store hours to capitalize on busy days. What should this retail shop owner be pursuing as part of her general business-level strategy?

Concentrating on reducing operating costs

Zereth uses management by objectives with her employees. Her employees are evaluated and rewarded based on how their performance relates to the achievement of those objectives. What does management by objectives allow Zereth and her staff to accomplish that other goal-setting methods do not?

Concurrent goal-setting and planning processes

Which of the following best explains what occurs during the step of selecting the best alternative when completing the rational decision-making process?

Consider all situational factors, and choose the alternative that best fits the situation.

What is the first step in developing contingency plans?

Considering contingency events when developing strategic, tactical, and operational plans

Which type of planning process requires a manager to determine alternative courses of action that can be taken if the intended plan becomes inappropriate?

Contingency

Two of Dharma's facilities are located in areas that are very volatile. Dharma has established long-range plans for all of her facilities, but what must managers at these two volatile facilities take extra care to do?

Continuously monitor the environment for possible changes.

Geert has managers who work all over the world. Each month, all managers are included in an online meeting. In order to accommodate the time differences for all managers, Geert varies the time of day or evening these meetings take place. Which management function is used when considering the needs of all his international employees?

Controlling

What does an organization use to manage its operations across several industries and several markets simultaneously?

Corporate-level strategy

What is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets?

Corporate-level strategy

Most grocery stores carry a wide variety of national brands in addition to their own private label brands. The private label brands are often made by the same national brands they are competing with. Which type of strategy is a firm using when it creates a lower-priced private label brand in addition to its other, higher-priced brands?

Cost leadership

The local dollar store sells a variety of products, all at $1 each. These items are no different than the products of other retail chains, but sizes are slightly smaller. In addition, the store is a little out of the way for most shoppers, but shoppers find the value is worth the trip. In which way does the local dollar store compete with nearby retailers?

Cost leadership

Which of the following helps an organization perceive, or even generate, new opportunities in its environment?

Creativity

Firms that successfully implement which type of strategy are generally able to charge more than competitors because customers are willing to pay more to obtain the extra value they perceive?

Differentiation

Which strategy would Pepsi use to promote its Aquafina brand on the basis of its purity?

Differentiation

While performing the function of organizing in a global economy, managers should _____.

Deal with human resources

Which of the following does the administrative model of decision making claim?

Decision makers are constrained by bounded rationality.

What is considered to be the cornerstone of planning?

Decision making

Which is the act of choosing one alternative from among a set of alternatives?

Decision making

Which of the following is false about evidence-based management?

Decisions should be made based on evidence, experiences, and principles of thought and analysis.

Product differentiation, low costs, and the development of new products or services are key to a company's success at which stage of the product life cycle?

Decline

Lupita's products are in the mature stage of the product life cycle. To remain competitive, Lupita's organization has improved the efficiency of its manufacturing process, which allowed it to lower costs. Which strategy is Lupita's firm pursuing?

Defender

Manoj has asked managers of each division to review the impact of expanding into overseas markets. Manoj will then have a group of experts review their proposals and combine their opinions to reach a consensus decision. Which type of decision-making group is Manoj using?

Delphi

Which of the following can be used to achieve a consensus from ideas that have already been generated, through the process of averaging the opinions of all task force members?

Delphi group

When a new line of organic salad dressing was launched, it was very successful. Competitors soon began to produce a similar product. What should the organization do to keep its competitive advantage?

Develop strategies to slow the entry of competitors.

Keane Industries is a privately owned firm that manufactures and installs large, deep well digging equipment that can be operated with little technical expertise. The company has a cash surplus due to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the biggest priority for the owners is to maintain full control of any new operations. Which level of international business activity is Keane Industries seeking?

Direct investment

Which of the following occurs when a firm headquartered in one country purchases operating facilities in a foreign country?

Direct investment

Eli makes custom-made leather handbags and wallets in a small shop. He is known for his fine leather products and hand stitching, as well as the lifetime warranty he offers on his products. His items are expensive, and he has no desire to increase the size of his shop. What has Eli developed within his shop?

Distinctive competence

Kamiya has a small business and buys all of her supplies locally. While she does some online business, all of the sales are within the country. Which type of business does Kamiya have?

Domestic

Into which environmental challenge would natural resources and infrastructure issues fall?

Economic

Which type of strategy is based on a pattern of action that develops over time in an organization in the absence of mission and goals or despite mission and goals?

Emergent

According to the proponents of evidence-based management (EBM), what does it mean to treat your organization as an unfinished prototype?

Encourage experimentation and learning by doing.

In which type of strategy does an organization concentrate on a specific regional market, product line, or group of buyers?

Focus

Using which strategy allows an organization to concentrate on a specific regional market, product line, or group of buyers?

Focus strategy

To manage a large seasonal order, Teresita's firm instituted an overtime policy instead of hiring additional staff or adding a second shift. Six months later, Teresita is reviewing production costs to determine how well this approach worked so that she can begin planning for this year's seasonal increase. Which step in the rational decision-making process is Teresita in?

Following up and evaluating the result

Aisha's organization produces a unique line of leather goods that it sells to large retail department stores. Recently, the organization opened a small store where it sells discontinued items or items with small flaws that were rejected by the large retailers. Which type of diversification did Aisha's firm engage in?

Forward vertical integration

Which of the following refers to an organization's beginning of the business activities formerly conducted by its customers?

Forward vertical integration

What is the key element for managers in a mature market economy?

Freedom of choice

Which trade agreement practices the use of the most favored nation principle, whereby members of the agreement receive preferential treatment?

General Agreement on Tariffs and Trade (GATT)

Which trade agreement was a major stimulus to international trade after it was first ratified in 1948 by 23 countries?

General Agreement on Tariffs and Trade (GATT)

Which of the following is used to provide a source of motivation for an organization's employees?

Goals

Due to an explosion at a supplier's plant, L'Meese will no longer be able to achieve goals set by her division manager. What should L'Meese remember about goals?

Goals are targets, not absolute objectives.

A disadvantage of direct investment is _____.

Greater economic risk

Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an important component of the company's growth strategy. As the management team considers the best approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?

Greater political risk

As Summer Fair was preparing to open its newest roller coaster, numerous problems and questions arose regarding the safety of the ride. At each step of the way, the decision makers argued that the ride met all safety regulations and everything would be fine. Within the first week of operation, the ride experienced a serious malfunction, injuring many of its riders. What disadvantage of group decision making does this scenario represent?

Groupthink

When a group arrives at a decision that seems to not be in the best interest of the organization but resulted from a process that avoided any conflict, what has likely occurred?

Groupthink

What does the BCG matrix use to evaluate an organization's set of businesses?

Growth rate and market share

In the context of SWOT analysis, which of the following would be considered as an organization's weakness?

Low cash reserves

Kaia's firm took its distinctive competencies and used those when expanding into foreign markets. This provided it with the same firm-specific advantage it had in its original location. Which strategic alternative for international business is Kaia's firm using?

Home replication

What is the premise of the administrative model of decision making?

How decisions are actually made

Mikel is a middle-level manager who is in the process of determining goals and objectives for his managers. He has set goals he feels are necessary to achieve the strategic goals given to him. Which of the following will these goals focus on?

How to operationalize actions

Which of the following questions is least important to ask when evaluating alternatives in the decision-making process?

How will the alternative affect competitors?

After winning a large contract, Aisha needs to decide how to staff the project. She is currently calculating the costs of hiring new employees, using overtime, and adding a second shift. At which stage of the decision-making process is Aisha in?

Identifying alternatives

Aisha is putting together a task force, but she is concerned that one key member may become dominant and not allow others to offer input. Unfortunately, that person is important to the ability of the group to understand the background of the problem. What can Aisha do to manage this?

Include other strong-willed people on the task force

Nila has formed a task force to develop a cafeteria-style benefits package for all employees. They have generated many alternatives and provided a great deal of information as to which benefits will be most important to employees. What else will this task force help provide?

Increased acceptance of the decision

Bonafide Fresh offers an expanding brand of personal care products that are made with all-natural ingredients. The company has an organizational goal to increase the number of product lines that it offers. Which of the following is the best example of a tactical plan for achieving this objective?

Increasing efforts over the next year to develop a line of children's skin protection products

Yui prefers to use a pay system that rewards her employees based on their contribution to the success of the organization. Which type of social orientation does Yui support?

Individualism

What is a key disadvantage of licensing agreements as an approach to internationalization?

Inflexibility

Which of the following can managers use to promote effective group decision making?

Insist that a group evaluate all alternatives.

Which type of plan is usually for a one- to five-year period of time and, in many organizations, is the central focus of planning activities?

Intermediate

Which type of organization is primarily based in one country, but it acquires some resources or revenues from other countries?

International

As the plant manager, Eli is concerned with having enough employees to meet production needs and managing cash flow for a specific product. Which stage of the product life cycle is Eli likely managing?

Introduction

During recent union negotiations, Hua, the company's labor expert, refused to concede to a demand made by the union. While this could have resulted in a strike, Hua felt the union was bluffing and would not strike. What was Hua's decision to refuse the union's demand based on?

Intuition

Jewel often uses standing plans while managing inventory levels and ordering within her organization. Why are standing plans effective for this process?

Inventory and ordering occur regularly.

When a firm identifies a weakness within its organization, what can it do to address that weakness?

It can modify its mission.

Anke is planning her production schedule for the upcoming quarter. While she does not know for sure, she feels strongly that her company will win a large contract that will affect production. Based on her intuition, Anke is thinking that she should include the purchase of additional equipment and hiring staff in her production schedule, but she does not have specific reasons for making this decision. Why is the classical model of decision making an unsuitable approach for Anke to use in this situation?

It rests on the assumption that managers are logical and rational.

Nita's organization has been doing business in foreign countries for many years, and it has built plants in the local communities overseas. Recently, her company has been nationalized. What does that mean for Nita?

It was taken over by the government.

Jewel wants to expand into the South America market by purchasing a small production company in a South American country to handle production and distribution. Which of the following best characterizes this arrangement?

Jewel wants to buy a subsidiary in South America.

Excessive transportation costs, government regulations, and home production costs might lead a firm to choose which approach to internationalization?

Licensing

Montazar has formed an agreement with an international firm in which he can use its brand name and technology on his products. In return, he pays the other firm a royalty, based on sales. Which type of arrangement has Montazar entered into?

Licensing

Paramita has made the decision that all her operations will get 75 percent of their energy from renewable sources by the year 2035. She has directed all of her managers to develop plans how to implement that goal in each of their facilities. Which type of plan has Paramita established for her organization?

Long-range

Julius owns a business where he sets a business strategy based on factors such as supply and demand. Which type of economic system is Julius in?

Market economy

Which type of economy is based on the private ownership of business?

Market economy

Dajhia must make significant budget cuts in order for her organization to remain profitable. No matter what is decided, employees will be impacted. If employees disagree with the specific cuts that are made, there is great potential to harm morale, which could, in turn, impact productivity and cut profits even more. Dajhia has the authority to make all budget decisions, but she has opted to assemble a team from across the organization to make these decisions. How will she benefit from the group decision-making process?

More acceptance of the final decision is likely.

Yui is working on a new marketing campaign and has decided to form a team to help with this process. What are the advantages of using a team for the marketing decisions?

More alternatives are likely to be generated.

As the head of human resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees—single, married, single parents, and older workers—on the team. Which of the following advantages will this team provide?

More alternatives can be identified and evaluated.

Nour's organization buys raw materials from all over the world, and in turn, sells finished goods worldwide. Which type of organization does Nour run?

Multinational

The United States, Canada, and Mexico entered into which agreement to eliminate barriers to trade among them?

NAFTA

Before instituting budget cuts, Apoorva wants to get feedback from her managers and work on developing creative and innovative alternatives. She asked each of her managers to brainstorm a list of ways they can cut their budgets without affecting workers. Ideas were placed on a flip chart, and each was then discussed. Which type of team is Apoorva using?

Nominal

Which type of group is a group in name only, as the members are brought together in a face-to-face setting but do not talk to one another freely?

Nominal

Each summer the local running club hosts a marathon and looks for sponsors to support the event. This year, they contacted the local water bottling plant. The manager of the plant can see the benefits of this event, but the plant has never participated in something like this. Which type of decision needs to be made about the potential sponsorship of the local marathon?

Nonprogrammed

Manoj is considering the acquisition and conversion of a nearby production facility to increase output of his company. This decision is an uncommon one for Manoj to make, and he does not have a formula to follow for making this decision. Which type of decision does Manoj need to make?

Nonprogrammed

Zereth is looking for ways to increase foot traffic into her brick-and-mortar locations. She has decided to open a small coffee shop with free Wi-Fi in her store. This is an example of which type of decision?

Nonprogrammed

In which way is crowdsourcing a solution different than using the Delphi technique?

Not everyone is an expert.

Which types of events are used in the contingency planning process?

Only those that will impact the organization

A cell phone company manager has a goal of boosting the profitability of her store in the next year. Which type of goal has the manager set?

Operational

Which type of goals are set by and for lower-level managers?

Operational

Tariq knows the production levels he wants to achieve this week and for the next three months. What does Tariq need to use when he determines the schedules of his employees?

Operational plan

Janelle is in the process of selecting a new location for her beauty salon. She is using a rational decision-making model to evaluate the alternatives before her. Each of her four options is feasible and satisfies her decision criteria. Which of the following options should Janelle choose?

Option C, which has low financial costs and low nonfinancial costs

Which of the following is a major tool for managing diversification?

Organization structure

Payal has just accepted a three-year assignment to run the overseas division of her organization. Before she transfers, Payal and her family are required to take several classes on culture, housing, language, and lifestyle. Which element of management is Payal's organization preparing her for?

Organizing

Using simple product design coupled with efficient high-volume manufacturing capacity may help a company achieve what?

Overall cost leadership

Based on differentiation strategy, why are customers willing to pay more for one product over a similar product?

Perceived extra value

Aisha's firm is expanding internationally, and it is determining the benefits of buying an existing firm in the new location, building one, or finding a strategic alliance. Which management function is Aisha's firm using?

Planning

Jinhoon owns and manages a franchise sandwich shop and pays his employees minimum wage. Recently, his employees have met to discuss how difficult it is to live on minimum wage and to ask Jinhoon to increase the wages for all workers. Which type of decision-making element must Jinhoon now respond to?

Political forces

Which of the following can be a major disadvantage to a task force or committee?

Politics

Olesia is managing the diversification of divisions for her organization. She wants to monitor how to engage and manage subsidiaries to maximize corporate performance. What should Olesia use to track this information?

Portfolio management techniques

During a recent staff meeting, Arayla's employees had questions about one of her decisions, and they discussed alternatives even though the decision had already been made. What is this an indication of?

Power tolerance orientation

Which of the following is a typical characteristic of a market economy?

Private ownership

Which of the following is used to show how sales volume of a product can change over time?

Product life cycle

Ugar has relocated a production firm to a country that has lower production costs, and it is closer to his customers. Which type of advantage does this offer Ugar's firm?

Production efficiencies

Aviva and her department are planning an elaborate six-month campaign to distribute samples to a wide variety of retail and restaurant outlets for the purpose of increasing brand identity. Which type of single-use plan will Aviva's department use to accomplish this goal?

Program

Decisions about when to reorder standard supplies based on quantity-on-hand information are most likely to be which type of decisions?

Programmed

Leader Books Inc. sponsors the Fairfax Public Library's summer reading program every year. The regional manager of Leader Books sends a check to the Fairfax Public Library in February of each year in order for them to prepare for the reading program. The regional manager's decision about when to send the check is which type of decision?

Programmed

Which type of decisions are relatively structured or recur with some frequency?

Programmed

Which of the following is a difference between programmed and nonprogrammed decisions?

Programmed decisions recur with more frequency than nonprogrammed decisions.

Darien wants to introduce a new product within the organization's existing product line. Which type of plan should he use to do so?

Project

Nils is the head of the marketing department in his organization. Under his guidance, marketing supervisors have developed an operational plan to support the organization's goals. Stage 1 is a three-month national media blast to pump information into the market for the purpose of increasing brand awareness. This media blast has a narrow focus and involves only a few key activities, and it will not be repeated. Which type of single-use plan is the marketing department using at this stage?

Project

Anke's organization is constantly looking for new opportunities and new markets for its products. Her firm is highly innovative and not afraid of taking risks. Which type of business-level strategy does Anke's organization use?

Prospector

What can a government do to encourage international trade?

Provide tax incentives

In which type of economic system does the government own and operate the companies that conduct business?

Public

Bhavik needs to address overcapacity at his plant, but he wants to avoid inappropriate assumptions and common pitfalls associated with making decisions. He wants his approach to be based on logic and sound reasoning. He also expects that his strongly held belief in benchmarking will enhance the quality of his decision. Which decision-making model should Bhavik use in this situation?

Rational

Hua has developed a list of monthly production goals, and he has now broken those down by production levels that must be reached each week. However, a key piece of equipment broke down, and Hua must now readjust his plans. Which type of plan will be required for Hua to make these adjustments?

Reaction

Which is the most common type of diversification strategy for larger businesses in the United States?

Related

In which type of strategy does an organization operate in several businesses that are somehow linked with one another?

Related diversification

Jones International uses a mix of strategic business units (SBUs), which allows the company to exploit its strengths and capabilities in more than one line of business and to exploit synergies across business lines. Jones International employs which type of corporate-level strategy?

Related diversification

Scott works for a firm that specializes in oil and gas products. During the last recession, one of the business units lost considerable income, but other parts of the business were healthy enough to offset that loss. Which type of corporate strategy was Scott's company using?

Related diversification

The best strategies do all of the following EXCEPT what?

Require resource deployment

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

Jolanta is determining how to distribute various resources in order to improve her organization's ability to compete in the market. What is Jolanta determining?

Resource deployment

At Montazar's organization, there is a specific start time, and all employees must be at work on time and ready to be at their workstation. This allows for a smooth transition between shifts. Which type of plan narrowly focuses on specific activities such as start times?

Rules and regulations

Gnomatics sells just one type of product in the local marketplace. The staff works hard to ensure their product is successful, even though there really are no other companies that compete with them. Which type of strategy does Gnomatics use?

Single-product

What is an advantage of importing or exporting over other approaches to internationalization?

Small cash outlay and little risk

In order for a tactic to be successful, what must it include?

Specific resources and time frames

What is the advantage to those organizations who use unrelated diversification?

Stable performance over time

Avec's department is launching an online ordering system for retail and restaurant accounts. The new system simplifies and clearly outlines the steps to be followed from sales inquiry to final order payment. Which type of standing plan will be used to enhance the ongoing efficiency of the order management process?

Standard operating procedure

When training new salespeople, Dezmon teaches the employees a step-by-step process and the sequence of activities for qualifying prospects and arranging credit. What does Dezmon use to facilitate this process so he is certain the correct steps are followed in the correct order, every time?

Standard operating procedure

Which type of a standing plan outlines the steps to be followed in particular circumstances?

Standard operating procedure

Which of the following is developed for activities that recur regularly over a period of time?

Standing plan

What refers to a condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative?

State of certainty

Which of the following refers to a condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates?

State of risk

In which situation is the decision maker most likely to make a mistake?

State of uncertainty

A store manager notices that monthly sales have been down 5 percent each of the last three months. Which step has this manager reached in the rational decision-making process?

Step 1: Recognizing and defining the decision situation

Maya would like to increase sales for the upcoming holiday season. She plans to increase advertising in the local paper, cut prices on selected items, or implement a loyalty program. Which step has Maya reached in the rational decision-making process?

Step 2: Identifying alternatives

The Pour House coffee shop wants to increase sales and local foot traffic. The owner has considered daily specials, loyalty programs, and expanded menu selections. Ultimately, he decided to implement a loyalty program because it stimulates repeat business and customer loyalty. He has not started the new loyalty program yet. Which step is the manager of the Pour House at in his rational decision-making process?

Step 4: Selecting the best alternative

When developing tactical plans, what should be included so they can be properly executed?

Step-by-step processes

Rumi has found that selling gluten-free products at her bakery has been an effective strategy and has allowed her to achieve some of her strategic goals for sales. Which of the following makes this an effective strategy for Rumi?

Superior alignment with her environment

In the introduction stage of the product life cycle, what do managers typically need to focus on?

Supply

Polani's company is a leader in the creation of mobile phone cases, and it recently has expanded to make cases for tablets and laptops. Polani's company is using related diversification. What is an advantage of this strategy for the firm?

Synergy

What exists among a set of businesses when the businesses' economic value together is greater than their economic value separately?

Synergy

As a middle manager, Luis sets goals for his staff. Which type of goals would Luis be expected to set?

Tactical

Carduci Corporation is a food processing company that specializes in a complete line of artisan sausage products. The top leaders in the organization have established a strategy that involves increasing the marketing budget to grow sales. Neal is the head of the marketing department, and it is his job to develop a plan that flows from and is consistent with the strategic plan. Which type of plan will Neal work to develop?

Tactical

Which type of plans are an organized sequence of steps designed to execute strategic plans?

Tactical

What is the basis for operational plans?

Tactical plans

Ahmed is responding to a situation that does not happen often. He talked with a colleague about how to resolve the issue. When a colleague suggested Ahmed change his tactical plan, he did not. Why wouldn't Ahmed change his tactical plan to resolve this situation?

Tactical plans address several goals.

How do tactical plans differ from strategic plans?

Tactical plans focus on people and action.

Which of the following focuses primarily on people and action?

Tactics

Which economic community is considered to be one of the most important in the world?

The European Union

As the most common form of decision-making groups, which of the following includes members who openly discuss, argue about, and agree on the best alternative?

Team

What is escalation of commitment?

The commitment to a course of action even when the decisions appear to have been wrong

What must a manager understand before beginning the planning process?

The environment

What is used to outline the organization's purpose, premises, values, and directions?

The mission

What must a decision maker understand in order to make the most effective decision possible?

The situation driving the decision

What is satisficing?

The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

What does the ultimate success of a tactical plan depend on?

The way it is carried out

Which of the following is an advantage of team decision making?

There is more information available in a team setting.

Which of the following is true of nominal groups?

There is very limited interaction among members.

Bhavik used management by objectives to set goals for his department and clearly communicated goals to all of his employees. However, very few of his employees actually achieved their goals. Why might have Bhavik's goal setting process failed?

There was a lack of top management support.

How do managers with a high level of risk propensity compare with their more conservative counterparts?

They are more likely to achieve big successes with their decisions and to incur greater losses.

What makes goals inappropriate?

They are unattainable.

Which of the following is true of strategic goals?

They focus on broad, general issues.

Which of the following is true of decision makers in the classical decision model?

They have complete information about the decision situation and alternatives.

Why do organizations have a difficult time focusing on weaknesses?

They might indicate poor managerial skills.

Which of the following is true of tactical plans?

They must specify resources and time frames.

Why do operational plans tend to be narrowly focused with short time horizons?

They support tactical goals.

Which of the following is true of multinational corporations (MNCs)?

They transfer capital and information from one market to another.

Why is it important that those responsible for achieving goals have a voice in developing them?

They will be more committed to plans they have helped shape.

As part of Sushil's performance review, she was given a list of goals and objectives. How will her work on these goals affect her in the future?

They will serve as a mechanism for performance evaluation.

Which organizations are more likely to successfully weather a crisis?

Those with strong leadership

Nila's construction firm was awarded a contract to build a new hospital in a Middle Eastern country. However, the construction project was already three months behind schedule because they could not secure the required permits. When Nila met with her local counterparts, they seemed very unconcerned about this delay. Which of the following accounts for this different perspective about the delay?

Time orientation

Why is it important that organizations do not place too much emphasis on short-term performance?

To avoid long-term goals from being ignored

How can managers use information provided by the GE Business Screen to manage their various business opportunities more effectively?

To determine asset allocation

In which way can managers use information from the product life cycle?

To determine which strategies for products need to evolve

Why is it important that a manager continuously monitor ongoing activities tied to a tactical plan?

To ensure they achieve desired results

Which of the following is a goal of the World Trade Organization?

To establish impartial procedures for resolving trade disputes

Which of the following is a function of a planning staff?

To go beyond pet projects and particular departments

What is one of the main purposes of a SWOT analysis?

To identify distinctive competencies

What was the goal of GATT when it was developed?

To promote trade by reducing barriers

Why would a country enact a "buy national" law?

To protect domestic businesses

Junhua has been working toward his goals, but a change in the market has created conflict between the goals. He is unsure which goals he should now pursue. What should Junhua do to balance his goals?

Use optimizing

What does proper execution of tactical plans depend on?

Vertical and horizontal communication

What occurs when goals are consistent up and down the organization, and strategic, tactical, and operational goals agree with one another?

Vertical consistency

What are the skills and capabilities that do not enable an organization to choose and implement strategies that support its mission?

Weaknesses

When are global efficiencies most easily obtained?

When a single unit has worldwide responsibility

When is a multidomestic strategy particularly effective for international firms?

When there are clear differences among markets

Once an alternative has passed the test of feasibility, what must be considered as it relates to that alternative?

Whether the alternative satisfies the conditions of the decision situation

What is one of the key questions that must be addressed by a manager who wants to be effective in the international market?

Whether the firm should focus on regionalism or globalization

Where is power and authority held in a multidomestic corporation?

With the managers of subsidiaries in host countries

When using the administrative model of decision making, decision makers _____ .

are limited by unconscious reflexes

Organizational opportunities are _____.

areas in the environment that may generate higher performance

One advantage of team decision making is that _____.

better decisions generally emerge

Junhua is a "morning person " and holds his staff meetings at 8a.m. Members of his staff have suggested that a later meeting time would be more effective for most employees, but Junhua is a creature of habit and insists that meetings be held early in the morning since that has always worked best for him. In this scenario, Junhua's decision making is being constrained by _____.

bounded rationality

JJ's Auto Repair is where most residents go for any type of car repair. If JJ elected to open another auto repair shop in the neighboring county, he would be expanding his _____.

business scope

The market for mountain bikes, while large, is not expected to grow much more. Ruff'n'Tuff Bikes has a major share of that market. According to the BCG matrix, Ruff'n'Tuff Bikes is a _____.

cash cow

According to the BCG matrix, businesses that have a large share of a market that is not expected to grow substantially are considered _____.

cash cows

One disadvantage of team decision making is that _____.

compromise decisions may emerge

An organization that competes in dozens or even hundreds of markets is called a(n) _____.

conglomerate

A fire broke out in a well-reputed hospital in a city. Despite the firefighters 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

The language, values, symbols, and beliefs that guide behavior in a country are that country's _____.

cultural environment

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. JJ employs six knowledgeable mechanics and provides these car experts with ongoing training to continually expand their knowledge and skill sets. By maintaining exceptional capabilities at his shop, JJ is solidifying his _____.

distinctive competence

The number of different businesses that an organization runs, and the extent to which these businesses relate to one another, is represented by _____.

diversification

Camille's Coffee Shop has a very small share of the market and has no plans for growth. According to the BCG matrix, this business is a _____.

dog

A country's infrastructure, supply of natural resources, and the conditions of its natural environment combine to form its _____.

economic environment

A weakness of the single-product strategy is that the _____.

firm using it will suffer if its product is replaced by a new one

Jones International is a large organization with holdings in the United States, Europe, and Southeast Asia. The corporation's mix of strategic business units (SBUs) allows the company to exploit its strengths and capabilities in more than one line of business and to exploit synergies across business lines. One of the disadvantages of Jones International's strategy is that it _____.

increases management complexity

Renata, the manager of Bath and Beauty Boutique, expects her staff to make a certain amount of decisions based on their experience and the practice they have in making decisions in similar situations. In other words, she wants them to rely on _____.

intuition

An import/export operation is advantageous because it _____.

is an easy way to enter a market with a small outlay of capital

It is difficult to imitate a distinctive competence because _____.

its nature might not be understood by competing firms

International managers _____.

need to organize to implement their plans

Curl Up and Dye is a local hair salon that has a steady clientele from the surrounding community. However, a new salon has just opened in the area, and some clients have mentioned that the new salon offers similar services at lower prices. Curl Up and Dye now needs to pursue a strategy that will _____.

neutralize the impending threat

A program is a_____.

plan for a large set of activities

Having a broad-based understanding of both environmental issues and competitive issues is an essential function of _____.

planning and decision making in a global environment

The decision-making process ends with _____.

putting the chosen alternative into action

The market for memory chips for electronic devices is growing at an incredible rate, and Whizz Industries has a small share of that market. According to the BCG matrix, Whizz Industries is a _____.

question mark

Blair works at a convenience store. One of the three slushy machines in the store has clogged four times this week. Now Blair is looking at the machine and trying to decide if the problem is a bad machine, if employees are not filling it properly, or if people are just using it incorrectly. Blair is currently _____.

recognizing and defining the decision situation

JJ's Auto Repair is where most residents go for any type of car repair. JJ wants to use his profits to expand the business. He is not sure whether to open a detailing shop on an adjoining property or to open an auto repair shop in the neighboring county. This choice of how to invest in his business would be a decision about _____.

resource deployment

The site manager for a company is negotiating for a new site to build an office complex. After several counter offers, the seller gave the company a final offer. The manager has the option to accept or reject the offer. If the manager accepts the offer, he gets a site in time to meet the relocation schedule, but at a price above budget. If he rejects the contract, he may get a more favorable price if the seller is bluffing. But he may lose out on the location and not be able to find another one in time if he does not get a more favorable price. The manager is making a decision in a state of _____.

risk

In the growth stage of the product life cycle, the _____.

sales of the product increase

Bishop must select a new supplier for ink before the next print run for the product's packaging or risk missing a critical shipping deadline. The first bid he received met his price point, and he accepted the bid immediately, without waiting for the other bids to arrive or do any further research. This is an example of _____.

satisficing

The market for memory chips for electronic devices is growing at an incredible rate, and GloTech has the largest share of that market. According to the BCG matrix, GloTech is a _____.

star

Despite the growth of multiplex theaters in most population centers, Lighthouse Cinema has remained a popular entertainment option for the surrounding area, based on its small size and location. This movie theater's popularity and attractiveness as a destination are a(n) _____.

strength

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)

tactical plan.

The area that increases the difficulty of an organization performing at a high level is a _____.

threat

Aviva is considering a capital expenditure to upgrade the plant. Aviva is considering various financing options, but she is worried about what the interest rates will be, the benefits of issuing stocks or bonds, or if she will win a contract large enough to cover the cost of the upgrade. Aviva is making a decision under conditions of _____.

uncertainty

If an organization has higher prices for a similar good or service, the prices are an organizational _____.

weakness