MGT 320
What type of performance standard would specify the percentage of customer orders that need to be shipped to customers within 48 hours of receiving the order?
Performance dashboard
When Google created its China-based search engine, Google.cn, it did not foresee eventually abandoning it because of censorship issues with the Chinese government. Which kind of bias could have been in effect when Google made its initial decision?
Perpetuating the status quo
Which theorist created "management by objectives" in U.S. businesses?
Peter Drucker
Managers who are focused on creating social value with a secondary focus of generating profit and returns are called:
social entrepreneurs.
Another term for the strategic goals of an organization is:
official goals.
The plan that describes resource allocation and the activities that an organization plans to do to obtain a competitive advantage and to achieve its goals is called:
strategy.
In a SWOT analysis, the positive internal characteristics of an organization that allow it to accomplish its goals are called:
strengths.
The idea that "the whole is greater than the sum of its parts" is the fundamental premise in the concept of:
synergy.
A formal document that outlines the vision, strategies, personnel, and resources that will be used to create a business
Business Plan
All of the following are assumptions of the classical model of decision making except:
pluralistic, conflicting goals are known.
Alli needs to make a quick decision under conditions of high uncertainty. She identified the decision requirements and analyzed the causes of the situation. Which action does she need to take next?
Develop a custom solution that will satisfice for handling the problem
The owners of the Two Brothers Auto Detailing company are discussing ways to make the business more profitable. Nathan, the eldest, said, "I think we should target owners of luxury cars. We can partner with the Lexus dealership down the street." His brother Michael disagreed. "I think we should work with corporate accounts for detailing executive leased cars. That way, we get repeat business. What competitive strategies are they considering?
Differentiation and focus.
Kia's company has set a new operational goal for her work group: "Eliminate overtime." Which action by Kia demonstrates adherence to her work group's operational plan to achieve this goal?
Discovering daily and weekly resource scheduling roadblocks.
What type of strategy refers to an organization that decides to enter new markets with products that it has not sold previously?
Diversification
An internal medicine group practice wants to adopt a new trend, becoming a "concierge" operation. They will provide unlimited healthcare for monthly subscription fees. Which operational goal will be needed to successfully make this transition?
Doctors immediately respond to illness and injury events.
Once the presentation of a non-profit's strategy map to its employees had concluded, the agency director listened for employee responses to its learning and growth goals. Which response indicates that additional education should be scheduled?
"I wonder if this company has ideas about professional development."
What concept is at the top of an organization's goal hierarchy?
Mission of the company
A desire to accomplish goals and produce excellent results
Need to Achieve
How many levels of management will this business have?
Organization & Management
Which step is not part of the process of electronic brainstorming?
Participants identify themselves
Which of the following is not one of the benefits of organizational planning?
Preventing the use of intuition and creativity
Which is the last step used in managerial decision making?
Evaluation
What benefit does the popular technique of creating a strategy map not offer to users?
Very detailed vision statement
Maria has recently opened a small store that sells sewing supplies. She works all six days each week that the store is open and gets to work very early. She does this to ensure that she will be able to meet personally with suppliers, pay bills and take the weekly inventory. Identify which category best describes Maria.
A juggler because she handles everything herself
A job applicant has extensive background in creating successful advertising campaigns. Asking about the size of the advertising budget that she would be in charge of, she is pleased when told that the company is slated to make a good sized investment. Which product category in the Boston Consulting Group (BCG) matrix should she expect to be working on?
A question mark that is about to launch
The founders of a medical device company need to take a different direction, after they did not receive FDA approval for their equipment. What would not be part of an after-action review of their original decision?
Assign responsibility for the failure
A partnership of three former teachers started an online resource to help high school teachers teach science, technology, engineering, and mathematics (STEM) courses. However, their early success has been overshadowed by new education requirements from both federal and state education departments. Also, many competitors have emerged. The partners agree that they do not have solid non-political information that would help them predict the future of STEM support. Which approach is reasonable for them to take in making decisions?
Be prepared for conflicts over goals and decision alternatives
Which major decision style is characterized by having deep concern for others as individuals?
Behavioral
Emmanuel likes to be involved in giving input into the decisions that affect his team. Which two kinds of managerial decision styles, directing his work, would give him that opportunity to be heard?
Conceptual and behavioral styles
Over the last decade, the number of minority-owned businesses has:
Increased dramatically.
An organized group of investors that provides funds to help start or grow a business in exchange for partial ownership in the company
Venture Capital Firm
Demetrius has just been hired by a financial investment company, that has long used the management by objectives (MBO) method of goal setting and performance evaluation. Which outcome of a management by means (MBM) approach would Demetrius not include as a selling point for company adoption of MBM?
Company executives would reap increased financial rewards for management.
Discussing the company's SWOT analysis is on the agenda of the board of directors. Which action could the members take to acquire accurate information about internal strengths and weakness of the organization?
Conduct employee satisfaction surveys
Your best friend, Kristen, wants to open an asbestos removal company. She does not want to share responsibility for operating the company, and she is concerned about the legal liabilities associated with asbestos removal. What legal structure would you recommend for Kristen's new business?
Corporation
Which of the following psychological characteristics are associated with entrepreneurship? Check all that apply.
Correct High energy level Correct Tolerance for ambiguity Correct Need to achieve
Which of the following are disadvantages of partnerships? Check all that apply.
Correct Partnerships often dissolve when misunderstandings arise. Correct General partnerships do not protect business owners from liability should someone sue the company.
Which of the following things can an entrepreneur expect when he or she starts a new business from scratch? Check all that apply.
Correct The entrepreneur will be personally responsible for making most management decisions. Correct The business may take a very long time to become profitable. Correct The entrepreneur's mistakes may cause the business to lose money at first.
What type of competitive strategy is an organization using when it tries to become more efficient and can reduce its costs below that of its major competitors?
Cost leadership
As department manager, Aoki worked out a plan with her team and help set goals for each of her employees. Each employee ended up with at least fifteen goals. This process violated which criteria for effective goal setting?
Covers key result areas
What type of planning occurs when the organization is faced with a situation in which its continued existence may be in question?
Crisis planning
Hannah is leading the management group charged with coming up with solid plans for the most high-impact contingencies. What outcome demonstrates that the group successfully met the challenge?
Employees feel ready to meet a worst case situation.
The CEO and founder of Chipotle Mexican Grill, Steve Ells, launched his company with a loan from his father, a SBA loan and raised money from friends and private investors. Eventually Ells also received capital from McDonald's and from the stock that Chipotle issued when it went public. What type of planning did Ells use in starting Chipotle?
Equity financing and debt financing
When purchasing a franchise, the franchisee doesn't have any output of money upfront.
False
A type of business arrangement in which one party sells the rights to market their product or service to another party (for example, Subway sandwich shops)
Franchising
How much interest do the owners expect to pay on the money they borrow to start the business?
Funding Request
In his performance evaluation, Deandre heard his supervisor criticize him for settling for satisficing solutions, rather than maximizing solutions. Which action can Deandre take in making future decisions in order to change his supervisor's opinion?
Get some solid criteria for what constitutes a maximizing solution
The new regional manager is charged with implementing a significant change in strategy. After conducting her research, she has learned about the biggest barrier to strategy execution. What action shows that she is prepared to tackle that barrier with confidence?
Getting buy-in from employees to adopt new behaviors
A CEO used to schedule a retreat at a resort for top executives to review the company's strategic plan. He now wants a radical change. "We going to crowdsource our strategic plan!" he announced to the applause of employees at a all-hands meeting. He then introduced the Vice President of Information Technology who describes setting up an online platform open to all 3,000 employees to review and comment on the strategic plan. What does the CEO hope to accomplish with this change?
Getting more input from employees on the front lines who carry out the plan
Sergio spent a lot of time designing extensive details to complete a tactical plan to guide his department. Which action should he take to avoid the most common cause of a plan creating a false sense of security?
Identify areas of uncertainty about the future
DeAngelo did solid research before founding a food-tour company in a coastal community. He used information gained by his competitive analysis of another beachfront food-tour organization, in business for over 30 years. Which type of decisions is he basing his entrepreneurial activities upon?
Programmed decisions
Two siblings, both CEOs, are discussing how they implement the concept of strategic thinking. The man in the for-profit world challenged his sister, who runs a non-profit community services agency, to compare his methods with hers. Which of the following statements, made by the siblings, are most true?
In the for-profit world, strategic planning pertains to competitive marketplace actions.
Narayana Murthy along with several co-founders in India launched Infosys, an organization that offers business consulting, technology, engineering, and outsourcing services. Infosys has brought billions of dollars into the Indian economy and has sparked an outsourcing revolution. Relate what Murthy's organization Infosys is an example of.
International entrepreneurship
What type of bias is Anastasia, a regional manager exhibiting when she continues to support a past decision she has made even if the current circumstances no longer apply to the situation that occurred when that decision was originally made?
Justifying past decisions
Sally-Jo, a long-standing director of marketing, believes that her company should acquire another company, a current competitor. Which outcome indicates that Sally-Jo has successfully built a coalition that supports that decision?
Managers commit to supporting the acquisition.
How many customers is this business likely to have?
Market Analysis
Matt Maloney and Mike Evans founded GrubHub, which lists restaurants that deliver to a specific area. They added ordering capabilities and features such as coupons, mobile ordering and sorting abilities. GrubHub now has 15,000 or so restaurants that pay a fee for orders placed through the site. GrubHub shows that an entrepreneur can take a simple idea and turn it into a lucrative business. Distinguish the tactics Maloney and Evans are using with GrubHub.
Mobile app and online business
A non-profit organization piloted a new approach to designing long-term care facilities that took into account the needs of elderly residents. The final results were so successful that they standardized their construction plans. From now on, all their facilities are going to be similarly built. Which management action does this change represent?
Moving from single-use plans to standing plans
Companies face different types of industry competition depending on the country they located in. What type of strategy should an organization use so that it can successfully meet the challenges it will face in any given country?
Multidomestic
The pizza company expanded its operations into a country outside the United States. It found that many of its customers refrained from ordering meat on their pizzas because of religious beliefs. Which type of strategy is the pizza company management likely to choose to honor this preference?
Multidomestic
What type of personality trait selects situations in which they are likely to succeed when they work hard?
Need to achieve
What type of management decision was involved when Toyota Motor Co. announced a recall of millions of units of its cars because of a faulty accelerator pedal problem?
Nonprogrammed
What type of standing plan specifies what the organization should do when one of its factory workers files a grievance?
Procedure
What type of decision refers to a specific situation that occurs frequently within an organization and the organization has a set of specific decision rules to apply whenever it occurs?
Programmed
Kurt Varner was found living in his car in Silicon Valley to try to sell his idea for a new mobile app for chronic over-sleepers that incorporates an alarm clock with a voice greeting that informs you of various things such as the date. Varner gave up a good-paying job and is living apart from his wife whom he misses profoundly. Decide what entrepreneurial characteristics Varner is exhibiting.
Sacrifice and high energy
What term is used to indicate that a decision maker chose the first solution alternative that satisfied minimal decision criteria?
Satisficing
A solar-energy manufacturing company is expecting new innovations to change its equipment and processes over the next two to three years. Which action illustrates that the manager knows how to keep employees on track toward accomplishing their final goal?
Setting biannual dates for investigating change options
Reg Stettinius invested $100,000 of her own money to develop a mobile app that would allow people to quickly find a restaurant. Her app Venga alerts customers to happy-hour specials, live music, and featured entrees. Outline an area in which Stettinius could grow her company.
She could hire employees because many women try to do everything themselves.
Actress Jessica Alba started a company that focused on a problem many new mothers are concerned with: "How to have healthy baby products that also assure a healthy environment." Alba co-founded The Honest Company with a disposable diaper that is 85% biodegradable. The Honest Company offers products designed to help children grow up in a world free of toxins. Contrast Alba's work as a social entrepreneur with that of a traditional entrepreneur.
She has created a business that meets critical human needs unsolved by current institutions.
In the United States, which of these describes small business?
Small businesses represent 99% of all businesses in the United States.
What type of business structure exists when one owner can make all of the business decisions of the company without asking advice from anyone else?
Sole proprietorship
A start-up company founded a technical university to implement digital innovation into teaching. Which feature of the company's mission statement demonstrates the company's commitment to reinventing higher education?
Statement of values that guide the company
Akram, the CEO of a brand new marketing firm introduces stretch goals into every company that he starts or joins. He believes that the only way for any team to overcome challenges common to start up companies is through radical innovation. As a result, Akram sets very high standards and goals to motivate the team to super-achieve. What can simultaneously be considered the best feature and, from some employees' viewpoint, be the worst characteristic of stretch goals?
Stretch goals are way beyond the current levels of organizational capability.
Which type of goals is middle management primarily concerned with?
Tactical
Being interested in computers, Jim Johnson came up with an idea of personalizing screen saver programs with family pictures. After trying a couple of programs, Jim started marketing this service to neighbors and area businesses. Jim's activities can be described as:
entrepreneurship
All of the following are tools a manager might use to implement strategy except:
low-key leadership.
