MGT 3200 Exam 1 Review

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Which of the following is NOT true concerning government regulations? 1.Businesses consider them only a cost. 2.The costs of government regulations are often passed on to the consumer. 3.Government regulations can impact the competitiveness of a marketplace. 4.The purpose of government regulations is to protect and/or enhance quality of life.

1. Businesses consider them only a cost

What level of social responsibility is being exhibited when an organization turns a profit? 1.Economic 2.Legal 3.Ethical 4.Philanthropic 5.None of the above.

1. Economic

The term "shadow bureaucracy" is associated with which of the following governmental influences on business? 1.Government Regulation 2.Government Taxation 3.Government Subsidies 4.Government Competition 5.Government Economic Policies

1. Government Regulation

Which of the following is NOT a way to provide superior customer service? 1.Make it difficult to complain. 2.Make a timely, personal response to the complaint. 3.Make sure your response to the problem is effective. 4.Make sure your employees are satisfied.

1. Make it difficult to complain

Which of the following components of a well-thought out strategy is most like the concept of corporate strategy? 1.Scope 2.Resource Deployment 3.Distinctive Competence 4.Synergy

1. Scope

In the BCG Matrix, if a company has a high share of a low growth market, it is classified as a _________. 1.cash cow 2.new venture 3.star 4.dog

1. cash cow

Tamyra is a plant manager for Exxon Mobil. She coordinates five managers and their respective departments: 1) production, 2) quality control, 3) logistics, 4) maintenance/engineering and 5) safety/health/environmental. Tamyra is a _______ manager. 1.middle 2.top 3.1st-line 4.none of the above; cannot be determined by the facts given.

1. middle

Which of the following pairs represent the lowest and the highest level of customer service, respectively, according to Buckingham and Coffman? 1.Availability; Partnership 2.Accuracy; Advice 3.Availability; Advice 4.Accuracy; Partnership 5.Accuracy; Availability

2. Accuracy; Advice

Acquiring (buying) your supplier is known as vertical integration _____. 1.Forward 2.Backward 3.Neither

2. Backward

At what level of management are staff managers typically located? 1.First-line 2.Middle 3.Top 4.All of the above; staff managers are located at every level of management.

2. Middle

Which level of management has been most adversely affected by corporate downsizing? 1.Top Management 2.Middle Management 3.1st-line Management 4.All of the above are equally affected by corporate downsizing.

2. Middle Management

Which level of management has at its primary functions, interpreting and integrating? 1.First-line management 2.Middle management 3.Top management 4.All of the above

2. Middle management

Which function of management is concerned with concepts of division of labor and coordination? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling

2. Organizing

Which of the following is NOT true concerning planning? 1.Planning is the most important function of top management. 2.Planning is said to have primacy because it's associated with success. 3.Planning involves 2 activities: goal setting and action-planning. 4.Planning helps managers cope with change. 5.Planning provides performance standards for managers.

2. Planning is said to have primacy because it's associated with success

A technique that helps managers summarize relevant facts from the internal and external analyses of an organization in order to formulate strategy is known as: 1.environmental scanning. 2.SWOT analysis. 3.a mission statement. 4.a vision statement. 5.a strategic forecast.

2. SWOT analysis

Which of the following managers is more likely to face the "Peter Principle"? 1.Effective Managers 2.Successful Managers 3.Managers who are both effective and successful. 4.None of the above; the Peter Principle has no relevance to the study of effective and successful managers.

2. Successful Managers

Which of the following open system characteristics is synonymous with teamwork? 1.Equifinality 2.Synergy 3.Buffering the technical core 4.Role differentiation and specialization

2. Synergy

The survivor's syndrome ____ efficiency with an organization. 1.increases 2.decreases 3.has no effect on

2. decreases

In the previous example, Tiffany is a _______ manager and a _____ manager. 1.general; staff 2.functional; line 3.functional; staff 4.general; line

2. functional; line

TARP's (Troubled Asset Relief Program) goal was to provide stability to the financial sector in response to a mortgage crisis, which is an example of a _______. 1.government regulation 2.government subsidy 3.government competition. 4.government economic policy.

2. government subsidy

Acquiring (buying) your customers is known as ________. 1.horizontal integration 2.vertical integration forward 3.consolidation 4.entropy

2. vertical integration forward

When key line managers are left out of the planning process, which level of management is most likely to be excluded? 1.Top management 2.Middle management 3.1st-line management 4.All of the above are equally likely to be excluded from the planning process.

3. 1st-line management

According to TQM experts, how much more does it cost to find a new customer than to keep an old one? 1. 2 times as much 2. 3 times as much 3. 5 times as much 4. 10 times as much

3. 5 times as much

Which organizational subsystem deals directly with the technological component of the external environment? 1.Managerial 2.Maintenance 3.Adaptive 4.Boundary-Spanning 5.Production

3. Adaptive

Which of the following is true concerning the relationship between social responsibility and organizational financial performance? 1.As an organization's social responsibility efforts increase, organizational financial performance decreases. 2.As an organization's social responsibility efforts increase, organizational financial performance increases. 3.An organization that emphasizes social responsibility is no more/no less likely to be profitable than an organization that does not emphasize social responsibility. 4.None of the above.

3. An organization that emphasizes social responsibility is no more/no less likely to be profitable than an organization that does not emphasize social responsibility

What do non-planners (with their external locus of control) typically blame for their poor performance? 1.Lack of skill 2.Lack of effort 3.Bad luck 4.Lack of motivation 5.All of the above.

3. Bad luck

Which phase of the planning process is synonymous with forecasting? 1.Establishing Objectives 2.Developing Premises 3.Decision-Making 4.Implementing a Course of Action 5.Evaluating Results

3. Developing Premises

A company's competitive advantage is synonymous with what component of a well- thought out strategy? 1.Scope 2.Resource Deployment 3.Distinctive Competence 4.Synergy

3. Distinctive Competence

Which of the following managers do not manage other managers? 1.Top managers 2.Middle managers 3.First-line managers 4.All of the above.

3. First-line managers

Which of the following is NOT true concerning functional & general management? 1.Functional managers typically are experts in a particular area of activity. 2.General managers coordinate a number of different areas of activity. 3.Functional managers increase in prevalence as one ascends the management pyramid. 4.The job of a general manager is typically more difficult than the job of a functional manager.

3. Functional managers increase in prevalence as one ascends the management pyramid

Which of the following is NOT consistent with the SMART model of goal setting? 1.Goals that are specific in terms of what's desired and when it's desired. 2.Goals that are set in important areas only. 3.Goals that are easily achieved. 4.Periodic feedback on one's performance in relation to the goal. 5.Goals that are measurable.

3. Goals that are easily achieved

Which of the following government actions is known as "corporate welfare" by its critics? 1.Government regulation 2.Government taxation 3.Government subsidies 4.Government economic policies.

3. Government subsidies

Which of the following is true concerning the open system concept of buffering the technical core? 1.It is concerned primarily with effectiveness. 2.It is focused on protecting the research and development process. 3.It refers to maintaining stability in the transformation process. 4.It allows for little to no change in the production process.

3. If refers to maintaining stability in the transformation process

Which of the following is NOT a way of partnering with one's suppliers? 1.Vertical integration. 2.Locking in long-term contracts for the resource. 3.Increasing the number of suppliers for a specific resource. 4.Offering advice on supplier operations and marketing.

3. Increasing the number of suppliers for a specific resource

Which of the following management functions is most important to effective implementation of a plan? 1.Planning 2.Organizing 3.Leading 4.Controlling

3. Leading

Which 2 letters in the SMART model of goal-setting are most directly connected to one another? 1.A and R 2.S and M 3.M and T 4.A and M

3. M and T

Tiffany is a production supervisor at Hyundai's assembly plant in Huntsville, Alabama. She recently has been spending a lot of her time orienting and training new production line employees that she just hired. On which of the following functions of management does Tiffany spend the majority of her time? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling

3. Staffing

Which level of management is concerned with developing the strategy for the organization? 1.1st-line 2.Middle 3.Top 4.All of the above.

3. Top

In the Business Portfolio Matrix approach, the corporate strategy is to own the mix of businesses that maximizes: 1.market share. 2.profitability. 3.both market share and profitability. 4.None of the above

3. both market share and profitability

Horizontal integration occurs when an organization acquires its _________. 1.supplier organization 2.customer organization 3.competitor organization 4.supplier or customer organization

3. competitor organization

The ability to see the big picture (i.e., being able to determine the most important issues an organization is facing) is an example of a ________ skill? 1.human 2.technical 3.conceptual 4.none of the above

3. conceptual

Role differentiation and specialization in an organization ____________. 1.decrease as the organization's size increases 2.make an organization less efficient 3.help an organization deal with troublesome aspects of the external environment 4.all of the above

3. help an organization deal with troublesome aspects of the external environment

Gresham's law of planning ...? 1.is the tendency for planning problems to overshadow day-to-day problems. 2.happens only when managers don't realize the value of planning. 3.is a problem of misplaced priorities. 4.All of the above.

3. is a problem of misplaced priorities

When an organization engages in a turnaround strategy due to declining performance, this is an example of _________. 1.buffering the technical core 2.equifinality 3.negative entropy 4.role differentiation and specialization 5.cyclical nature of the transformation process

3. negative entropy

All of the following are true concerning technological innovations except: 1.technological innovations increase competition. 2.process innovations are focused on improving production. 3.product innovations increase efficiency. 4.product innovations can lead to product obsolescence.

3. product innovations increase efficiency

According to Luthans' (1988) real manager study, 1.effective managers were the ones who were promoted rapidly. 2.successful managers were the ones who had high performance teams. 3.promotions were not based on performance. 4.successful manager's influence was focused downward whereas the effective manager's influence was focused upward. 5.All of the above.

3. promotions were not based on performance

In February of this year, the Food and Drug Administration (FDA) banned the sale of fruit, dessert and mint flavored vaping liquids. This move was in response to an internal FDA report that showed "a substantial increase" in youth vaping over the past year. The FDA is concerned 1) that these flavors promote more vaping among the youth and 2) the negative effects of nicotine on brain development in young people. This is an example of government __________. 1.taxation 2.subsidization 3.regulation 4.competition 5.none of the above

3. regulation

According to a February 2020 Bloomberg article, Ford Credit, the financing arm of Ford Motor Company, is generating nearly half of Ford's overall profit up from 15-20% in years past. Ford Credit provides loans to dealers who stock vehicles and customers who buy them. This is an excellent example of ___________. 1.the power of the customer 2.the power of the supplier 3.the joint product/service focus 4.environmental scanning 5.the watchword with customers being quality

3. the joint product/service focus

In which of the following areas can customers put pressure on a business organization? 1.Prices 2.Service 3.Quality 4.All of the above. 5.Only 2 and 3.

4. All of the above

Which of the following is true according to the article, "Avoid pricing yourself short"? 1.Customers who are price sensitive are typically not loyal customers. 2.Price for some customers can be an indication of quality. 3.Raising prices, at times, can increase market share. 4.All of the above. Only 2 and 3.

4. All of the above

Which of the following is true concerning the economy? 1.It indirectly influences businesses by affecting demand for products/services. 2.Managers generally like moderate steady growth in the economy. 3.Economic conditions can affect the degree of competition within a marketplace. 4.All of the above.

4. All of the above

Which of the following phases of the planning process are involved in developing a plan of action? 1.Phase I: Establishing Objectives 2.Phase II: Developing Premises 3.Phase III: Decision-Making 4.All of the above 5.Only Phases I and II. 6.Only Phases II and III.

4. All of the above

Which of the following is NOT true concerning competitive benchmarking? 1.Competitive benchmarking is an activity that keeps an organization close to its customer. 2.Competitive benchmarking will often lead to large gains in market share and profitability for an organization. 3.Competitive benchmarking is an activity that's based on innovation rather than imitation. 4.All of the above are NOT true concerning competitive benchmarking.

4. All of the above are NOT true concerning competitive benchmarking

Which of the following is true concerning the international component of the environment? 1.It is a threat when foreign competition does business in one's domestic marketplace. 2.It's an opportunity when an organization is conducting business in a foreign marketplace. 3.It's a threat when an organization is over-reliant on a foreign resource. 4.All of the above are true concerning the international component of the external environment.

4. All of the above are true concerning the international component of the external environment

Which of the following is a way that an organization can be socially responsible? 1.An organization making profit. 2.An organization obeying relevant laws and regulations. 3.An organization giving back to its community through charitable donations. 4.All of the above are ways an organization can be socially responsible.

4. All of the above are ways an organization can be socially responsible

At what level of management are line managers located? 1.First-line 2.Middle 3.Top 4.All of the above; line managers are located at every level of management.

4. All of the above; line managers are located at every level of management

Which organizational subsystem deals directly with an organization's 2 major environmental dependencies? 1.Maintenance 2.Managerial 3.Production 4.Boundary-Spanning 5.Adaptive

4. Boundary-Spanning

When companies in a market, for example, have well-established supplier relationships leading to better contract terms and have become more efficient in their operations over time, this is an example of which barrier to entry? 1.Government patents. 2.Large capital requirements. 3.Brand loyalty. 4.Cost advantages. 5.All of the above.

4. Cost advantages

Which of the following pairs of environmental components represent the organization's two major dependencies? 1.Technology and competitors. 2.Customers and competitors. 3.Technology and customers. 4.Customers and suppliers. 5.Suppliers and competitors.

4. Customers and suppliers

Which of the following is NOT true concerning the managerial value system and strategic plan formulation? 1.The value system of the organization affects the implementation of a strategic plan. 2.Since values change slowly, strategic change is often achieved incrementally. 3.An organization's value system can be an impediment to necessary strategic change. 4.If an organization needs a radical strategic change, the organization often gets rid of 1st line-management to expedite the change.

4. If an organization needs a radical strategic change, the organization often gets rid of 1st line-management to expedite the change

Successful managers in Luthans' (1988) study spent the majority of their time on what activity? 1.Traditional management 2.Communication 3.Human Resource Management 4.Networking

4. Networking

With respect to the strategic planning process, at what phase of the planning process is first-line management's participation most valuable? 1.Phase 1: Establishing Objectives 2.Phase 2: Developing Premises 3.Phase 3: Decision-Making 4.Phase 4: Implementing a Course of Action 5.All of the above.

4. Phase 4: Implementing a Course of Action

Which of the following pairs of management functions represents the conjoined twins of management? 1.Organizing and Staffing 2.Planning and Organizing 3.Staffing and Leading 4.Planning and Controlling 5.Leading and Controlling

4. Planning and Controlling

Which of the following is NOT true concerning the Industrial Revolution? 1.There was an enormous increase in productivity. 2.The skills of the craftsmen were transferred to the machines. 3.The increase in demand required the switch from owner/manager to professional manager. 4.Prices for goods increased as a result.

4. Prices for goods increased as a result

Which of the following is NOT true concerning managerial roles? 1.They arise from managerial authority and status. 2.The three roles a manager performs are informational, decisional and interpersonal. 3.Interpersonal roles impact the effectiveness of informational and decisional roles. 4.The initial research on managerial roles was conducted with 1st-line managers.

4. The initial research on managerial roles was conducted with 1st-line managers

Which of the following is NOT true concerning Political Action Committees (PACS)? 1.They are comprised of employees and shareholders of the company. 2.They are allowed to directly contribute $5,000 per campaign to a candidate. 3.They are a form of direct political action. 4.They are allowed only $10,000 in indirect contributions.

4. They are allowed only $10,000 in indirect contributions

A negative supplier relationship can lead to _________. 1.a higher price for the resource 2.a lower quality resource 3.delayed delivery of the resource 4.all of the above 5.only 1 and 2

4. all of the above

The basic dilemma in planning is between ___________. 1.creativity and practicality. 2.effectiveness and efficiency. 3.top managers and 1st-line managers. 4.commitment and flexibility.

4. commitment and flexibility

In developing a plan a manager relies primarily on _____ skills whereas with implementing a plan a manager relies primarily on ______ skills. 1.technical; conceptual 2.conceptual; technical 3.human; technical 4.conceptual; human

4. conceptual; human

Bob, senior technical leader at Ford Motor Company, stated in late 2019 that the while the overall cost of the batteries for Ford's electric vehicle (EV) line has remained constant, the cost/per mile of range of these batteries was decreasing. In fact, the driving range of these batteries was passing a critical driving range threshold (300 miles) for customers, increasing customer confidence in the vehicles (vehicles are becoming more attractive to consumers). From the facts presented, the batteries are becoming _______ efficient and leading to _________ effectiveness for the EV line. 1.less; increased 2.less; decreased 3.more; decreased 4.more; increased

4. more; increased

Artificial intelligence (AI) that permits a business to analyze its production machinery to spot machinery breakdown at the first sign of malfunction, thus allowing preventative maintenance to be performed rather than having to make a costly repair is a ___________ innovation that's focused on __________. 1.product; efficiency 2.process; effectiveness 3.product; effectiveness 4.process; efficiency

4. process; efficiency

When a business is just starting up, the functions of management are performed ______ and when the business is up and running, the functions of management are performed ______. 1.simultaneously; sequentially 2.simultaneously; simultaneously 3.sequentially; sequentially 4.sequentially; simultaneously

4. sequentially; simultaneously

Which organizational subsystem does the Research and Development department belong to? 1.Production 2.Boundary-Spanning 3.Maintenance 4.Managerial 5.Adaptive

5. Adaptive

In the Business Portfolio Matrix approach, which of the following would be included in the organization's business portfolio or corporate strategy? 1.Star 2.Cash Cow 3.New Venture 4.Dog that is profitable 5.All of the above 6.Only Star, Cash Cow, and New Venture.

5. All of the above

Which of the following environmental components can also be found in the international component of the external environment? 1. Customers 2. Suppliers 3. Competitors 4. Economy 5. All of the above. 6. 1, 2, and 3 only.

5. All of the above

Which of the following is a barrier to entry into a market/industry? 1.Government patents. 2.Large capital requirements. 3.Brand loyalty. 4.Saturated distribution channels . 5.All of the above

5. All of the above

Which of the following is a reason a manager may resist planning? 1.Planning is not rewarded by the organization. 2.Planning can be used to measure the manager's performance. 3.The manager may have a fear of failure related to planning. 4.Planning doesn't give the manager immediate feedback. 5.All of the above.

5. All of the above

Which of the following is a way for new entrants to "jockey" for market share? 1.Price 2.Quality 3.Service 4.Advertising/Marketing 5.All of the above.

5. All of the above

Which of the following is true concerning environmental scanning? 1.It's an information gathering process. 2.It's primarily the job of top management. 3.It provides the foundation for strategic planning. 4.Its outcome is the clear identification of threats and opportunities. 5.All of the above.

5. All of the above

Which of the following issues are associated with first-line management? 1.First-line managers are often promoted based primarily on their technical skills. 2.First-line managers are often placed into management without the benefit of training. 3.First-line managers often learn how to manage by observing their managers. 4.First-line managers are often confronted with the choice between friendship and accountability. 5.All of the above.

5. All of the above

Which of the following would lead to a "bad" competitive environment from the organization's perspective? 1.A supplier who one of the few sources of the supply. 2.Many companies in the marketplace. 3.A large customer who has many other options to buy what you're selling. 4.A mature, low growth market. 5.All of the above.

5. All of the above

Which of the following is true concerning locking in a long-term contract as a way to partner with one's supplier? 1.It is advantageous to the supplier because it guarantees business for the supplier. 2.The impetus for it can be a forecast of resource scarcity. 3.It's advantageous to the organization because it ensures the resource supply. 4.It will often lead to a negotiated price for a resource somewhere between its current and projected price. 5.All of the above are true.

5. All of the above are true

Which of the following is true concerning threat of substitutes? 1.They're usually the result of a technological innovation. 2.They can reduce other organization's growth potential (i.e., market share and profitability potential). 3.They're typically introduced at a higher price than other products/services. 4.They promote product obsolescence. 5.All of the above are true.

5. All of the above are true

Which of the following is true concerning well-crafted mission statements? 1.They define an organization's purpose. 2.They provide a target for organizational strategies. 3.They are a source of legitimacy. 4.They promote greater organizational commitment from employees. 5.All of the above are true.

5. All of the above are true

When a manager fails to work her plan, this manager is neglecting what aspect of the planning process? 1.Establishing Objectives 2.Developing Premises 3.Implementing a Course of Action 4.Evaluating Results 5.Both 3 and 4

5. Both 3 and 4

The feedback loop associated with cyclical nature of the transformation process relates most closely to which function of management? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling

5. Controlling

Which of the following is true concerning effectiveness and efficiency? 1.Efficiency is concerned with doing the right thing at the right time. 2.The more a company wants to be effective the easier it is for the company to be efficient. 3.Efficiency is a guarantee of effectiveness. 4.Effectiveness is concerned with minimizing resource costs. 5.Efficient organizations tend to be effective ones as well.

5. Efficient organizations tend to be effective ones as well

On which of the following functions of management do 1st-line managers spend the most time? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.First-line managers spend an equal amount of time on both staffing and leading.

5. First-line managers spend an equal amount of time on both staffing and leading

Which of the following is NOT true concerning corporate downsizing? 1.Management levels are eliminated. 2.Managers who remain after downsizing are asked to do more. 3.Staff management jobs are outsourced to consulting firms. 4.Information systems and technologies are implemented. 5.It's primarily effectiveness-oriented.

5. It's primarily effectiveness-oriented

Which of the following is true concerning corporate and business-level strategies? 1.The two strategies have different goals. 2.Corporate strategy focuses on how to differentiate an organization from its competition. 3.Business-level strategy focuses on what businesses the organization wants to owns. 4.A corporation made up of multiple businesses will have multiple corporate strategies. 5.None of the above are true.

5. None of the above are true

According to the article, "Avoid pricing yourself short", the best businesses can offer? 1.Highest quality 2.Best prices 3.Highest service 4.All of the above 5.Only 2 of 3 (quality, price, and service)

5. Only 2 of 3 (quality, price, and service)

Which levels of management comprise the managerial subsystem? 1.Top management 2.Middle management 3.1st-line management 4.All of the above 5.Only top and middle management.

5. Only top and middle management

Which of the following is NOT true concerning managerial skills? 1.Technical skill decrease in importance as one ascends the management pyramid. 2.Human skills are rated equally important across the management pyramid. 3.Conceptual skills are the most difficult to acquire. 4.Human skills required for management include self-awareness and empathy. 5.Technical skills are more important to general management than to functional management.

5. Technical skills are more important to general management than to functional management

Which of the following is NOT true concerning new entrants and competition? 1.They increase product supply. 2.They drive prices down. 3.They seek market share. 4.The threat of new entrants is different from market to market. 5.They decrease the power of the customer.

5. They decrease the power of the customer

Which of the following is NOT true concerning powerful suppliers? 1.They may be one of the few sources for the resource. 2.They may increase the price of the resource. 3.They may lower the quality of the resource. 4.They have many customers. 5.They make it easier for your organization to compete.

5. They make it easier for your organization to compete

When a manager engages in the "crystal ball" syndrome this manager is focusing on which aspect of the planning process? 1. Establishing Objectives. 2. Developing Premises. 3. Decision-Making. 4. Implementing a Course of Action. 5. Evaluating Results. 6. 1, 2, and 3.

6. 1, 2, and 3

If it's determined that a plan is not achieving desired results, where could the problem be in the planning process? 1.Phase I: Establishing Objectives 2.Phase II: Developing Premises 3.Phase III: Decision-Making 4.Phase IV: Implementing a Course of Action 5.Phase V: Evaluating Results 6.All of the Above

6. All of the Above

Which of the following functions of management are performed by top managers? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling 6.All of the above.

6. All of the above

"Rivalry" is greatest when _____. 1.there are few organizations in the market/industry. 2.there are many organizations in the market/industry. 3.There is a new, high growth market. 4.There is a mature, low growth market. 5.Both 1 and 3 6.Both 2 and 4

6. Both 2 and 4

Little Edna's House of Love (a brothel) in Bunkie, Louisiana finds its existence threatened by environmental forces (a.k.a. the police). This is an example of __________________. 1.an organizational problem that could be solved thru image advertising. 2.the law of heavy laboring. 3.the lack of legitimacy of this type of enterprise in this community. 4.the impact of the governmental component of the environment. 5.Both 1 and 3. 6.Both 3 and 4.

6. Both 3 and 4


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