MGT 204: Module 2 Test
The bureaucratic model is the model of organization design consistent with the human relations movement that stresses attention to developing work groups and concern with interpersonal processes.
false
Which of the following organizations would face the most difficulty in developing long-range plans?
those with dynamic, complex environments
Goals are set by
time frame, area, level
A first-mover enters a segment of a market that offers a new opportunity because it is not currently being satisfied.
true
A manager needs to understand the blocks ( organizational structure ) before building with them (o rganizational design.)
true
An occasional situation may call for a stand-alone tactical plan, but most of the time tactical plans flow from and must be consistent with a strategic plan.
true
Few successful entrepreneurs succeed alone or straight out of college.
true
History has shown that major innovations are as likely to come from small businesses (or individuals) as from big businesses.
true
Job specialization evolved from the concept of division of labor.
true
New businesses need six to twelve months of capital before they launch.
true
One of the primary strengths of a bureaucratic form of organization structure is how it prevents favoritism.
true
Organization design is a means to implement strategies and plans to achieve organizational goals.
true
Ralston-Purina's products include a number of old standbys, but a large percentage of its revenues comes from products that did not exist five years ago. Ralston-Purina's approach represents a prospector strategy.
true
The most important issue for international organization design is how to design the firm to most effectively deal with international forces and compete in global markets.
true
The purpose of the SBA's SBDC program is to consolidate information from various disciplines and institutions, including technical and professional schools.
true
When there are inconsistencies among various organizational goals, managers should seek to optimize the overall goal set.
true
Women tend to start their own businesses because they really like being their own bosses.
true
Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a restaurant chain. This is an example of ____ diversification.
unrelated
A year before the census, the federal government hired tens of thousands of temporary workers to prepare for the count. This is an example of a(n) ____ plan.
action
Which of the following exemplifies the definition of technology in the text?
all of these choices
Which of the following statements about service businesses that are classified as small businesses is TRUE?
all of these choices
Which of the following statements about the organizational life cycle is TRUE?
all of these choices
Which of the following statements is TRUE about the industries that small business owners may consider entering?
barriers to entry are genuinely small
The technology that is most effective with a System 4 design is ____ technology.
both small-batch and continuous-process
Assuming an SBU retained its share of the market, how would it be classified if it was a star and its market subsequently became a low-growth market?
cash cow
Philip Morris markets Marlboro cigarettes, the number-one selling cigarette brand in the world. Outside the United States, Marlboro generates huge profits that Philip Morris uses to support other less successful SBUs. According to the BCG matrix, Marlboro is an example of a
cash cow
Which of the following is NOT necessary for a Management By Objective (MBO) program to be effective?
clear goals assigned to employees by management
Why would one organization want to purchase an SBU that has been classified as a "dog"?
Possible synergistic effects on the buying organization
In terms of the number of new jobs formed each year, how does small business compare to big business?
Small business was recently passed by big business in creating new jobs
Which of the following circumstances would most likely result in the use of a planning task force to help develop plans?
There is a special circumstance to be addressed
Tactics deal with more specific issues than strategies.
True
Which of the following companies is noted primarily for employing an overall cost leadership strategy?
Walmart
Abercrombie & Fitch uses its ability to manage its supply chain more effectively than most of its competitors to create
a distinctive competence
A System 1 organization is most likea formal bureaucracy.
a formal bureaucracy.
What is the essence of formal goal setting?
collaborative planning
uropean wine producers from regions such as Chablis, Chianti, and Bordeaux set a goal of increasing sales. They soon discovered that their wine names were already registered in some countries. This scenario best exemplifies ________.
constraints
After Greece accumulated massive debt and voters rejected the bailout terms demanded by Greek creditors, uncertainty for the European Union and the Euro increased. Investors and strategists developed ____ plans for a possible Greek exit from the EU.
contingency
____ planning is the process by which managers identify alternative courses of action that the organization might follow if various conditions arise.
contingency
____ involves linking together the activities of the various parts of an organization to promote harmonious movement toward organizational goals.
coordination
A pastor at a large church shares responsibilities with a student ministries coordinator. This is an example of
delegation
In a stable environment organizations tend to be
differentiated
When Steve Jobs was CEO of Apple, his charisma, marketing skills, and technical vision helped create a(n) ____ at Apple that made it the leader in mobile devices.
distinctive competence
Viacom owns Nickelodeon, TV Land, VH1, and Nick at Nite. Managers of these cable networks are given a fairly high degree of autonomy, yet they coordinate activities as needed. Purchasing is highly centralized, but many other functions are quite decentralized. Viacom uses a ____ organization design.
divisional
According to Burns and Stalker, firms that use an organic design are the most successful firms in a stable environment.
false
According to the text, the most effective way to use staff positions is to grant them line authority.
false
Delegation is power that has been legitimized by the organization.
false
Each business or set of businesses within an organization is frequently referred to as a star business unrelated, or SBU.
false
Exxon Mobil is an example of an organization that uses large-batch technology.
false
If someone is technically challenged, they should avoid starting a business because e-commerce is where small businesses are finding success.
false
In general, when the level of competitive rivalry, the power of suppliers and buyers, and the possibility of substitutes and new entrants are all low, an industry has relatively few opportunities and numerous threats.
false
Professional managers who run someone else's business are not entrepreneurs.
false
The vice president of human resources wants to eliminate all overtime, whereas one of the goals set by the vice president of operations is to make more efficient use of overtime hours. This is an example of goal consistency.
false
Nora is chief legal counsel for Midco Waste. She has ____.
functional authority
Which of the following is most likely to cause line managers to see staff members as a threat to their authority?
functional authority
An entrepreneur does all of the following EXCEPT
hire professional managers
GM used a new strategy when it designed the Saturn division separately from the previous divisions. GM uses a ____ design.
hybrid
Bai5 is a beverage company "born and raised in Princeton NJ." The beverages come in a variety of flavors, with 5 calories per serving, no carbonation, and lots of antioxidants. In a beverage market that is dominated by Coca-Cola and Pepsi, Bai5 is an example of
identifying a niche
While watching her d ad cook bacon in the microwave, 10-year-old Abby Fleck asked, "Wouldn't it be less messy if you hung the bacon to cook?" After breakfast, she and her dad went to the basement and created the Makin Bacon, a gadget for making bacon cooking less messy. Abby, her parents, and her grandparents own and operate a company that makes and sells Makin Bacon trays. Her first big customer was Armour Bacon, which purchased the gadget to sell as a premium on its packages of bacon. This is a small business that has contributed by its
innovation and its importance to a big company
Trump Organization produces beauty pageants and builds commercial real estate. There appears to be little need for ____ between these units.
integration
The owners of the Pizza Place set a goal of expanding into five new markets over the next three years. What kind of goal is this?
intermediate range
Although a pay increase would be useful when a change in job design is made, for which of the following would it be expected?
job enlargement
Invacare modified the wheelchair assembly process so that workers assemble the entire wheelchair rather than simply add one or two pieces as is normal on most assembly lines. This is an example of
job enlargement
____ can be used to balance specialization.
job rotation
Army officers use the expression "not in my lane", which derives from the basic marksmanship function of establishing firing lanes indicating who fires at which targets. The idea is to spread people over the whole area so you do not miss anything and to prevent everyone from firing at the same target. This is an example of
job specialization
Some companies now employ a Chief Ethics Officer, who usually has a legal background and is responsible for whistle-blowing, ethics training, financial statements review, and investigations. This is an example of ____.
job specialization
Four general factors contribute to the failure rate of small businesses. They include
managerial inexperience
In which of the following industries are small businesses typically poorer performers than large businesses?
manufacturing
Heinrich works for Siemens Corporation. He lives in New York City and reports to both the communications president in Munich and the president in charge of Siemens Americas. He works in a ____ design organization.
matrix
Employees in staff positions
none of these choices
Comcast launched TV One, a station geared to African Americans who are 24 to 54 years old. It does not offer much hip hop. The program selection is part of Comcast's ____ plan.
operational
Home Depot's marketing department could set a(n) ____ to create an Internet advertisement for a sale within the next two weeks.
operational goal
A(n) ____ for Choice Waste Management could be to include a flyer in each bill that explains the Do's and Don'ts of Recycling and to put the information on the web page where customers pay online. It would develop naturally out of a tactical goal seeking "to develop a recycling campaign for rural communities of less than 1,000 customers."
operational plan
In environmental SWOT analysis, the external organizational position is analyzed according to its
opportunities and threats
As it was developed by Burns and Stalker, the ____ design is most like System 4.
organic
Which of these is concerned with the changes in the sales volume of a product during its existence?
product life cycle approach
A single-use plan for a large set of activities is called a
program
3M is a highly innovative firm that is constantly seeking new markets and is oriented toward growth and taking risks. It uses a(n) ____ strategy.
prospector
If the marketing department adopts a strategy calling for substantial test marketing, aggressive advertising campaigns, and inducing consumer product trials, which of the following is most likely the business strategy being used by the company as a whole?
prospector
Companies should invest carefully and monitor closely a ____, which is a product that has a small share of a growing market.
question mark
Administrative intensity is the
ratio of staff positions to line positions
At BMW the marketing department helps develop sales forecast for the operations managers, who give availability information to dealerships. When dealerships have a specific order, they send it to operations. What level of interdependence does this example represent?
reciprocal
As organizations move through the stages of the organizational life cycle from birth to maturity, they do NOT
reduce the size of their staff component
Reckitt & Colman, Inc. manufactures Spray 'n Wash laundry stain remover, Resolve fabric refresher, and Woolite fabric wash. This is an example of ____ diversification
related
Gymnastic athletes train for and compete in each event in the all-around competition. They use job
rotation
Workers at McDonald's are trained to cook, clean, take orders, and fill orders. During a shift, they work each job for one hour. This is an example of job
rotation
Coca-Cola sells soft drinks, bottled water, and sports drinks. This is an example of
scope
High schools register seniors first, then juniors, sophomores and finally freshmen. What basis of departmentalization does this represent?
sequence
Jane's Candy Shack is in danger of failing. She needs much consulting help, but she has limited financial resources. She contacts the SBA. She most likely will get help from the
small business development center
Jane's Candy Shack has ineffective advertising. Where should she go for help with a promotion program?
small business institute
Kristen owns and operates a photography studio. She has no employees. She is a(n)
small business owner
Extra funds should be channeled to the ____, which is a product with a high share of a fast-growing market.
star
google set a(n) ____ goal to purchase Motorola Mobility.
strategic
A(n) ____ of Choice Waste Management could be to expand operations in two more countries this year.
strategic goal
____ exists when the economic value together is greater than the value of the parts.
synergy
Credit card and mortgage divisions of banks often get their customers from the bank's commercial loan customers. This is an example of ____
synergy in related diversification
Which of the following coordination techniques is appropriate when interdependence is of the complex reciprocal variety?
task force
A matrix design would NOT be effective when
the environment has a high level of complexity.
he Aston studies found that as organization size increases
the link between technology and organization design breaks down.
The text lists several questions that the business plan should answer for the entrepreneur who is planning to open a business. Which of the following is one of the questions?
what does he or she want to accomplish?
