mgt 4435, exam 2

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Which of the following purchasing strategies does a strategic manager at a company use when he or she orders a particular part from several​ vendors? A. Multiple sourcing B. Parallel sourcing C. Outsourcing D. Sole sourcing E. Offshoring

A. Multiple sourcing

All of the following are true statements about strategy implementation EXCEPT​ ________. A. an organization that formulates a strategy should never implement the strategy in the organization B. although implementation is often considered only after strategy has been​ formulated, strategic implementation is a key part of strategic management C. strategy formulation and strategy implementation should thus be considered as two sides of the same coin D. strategy implementation is the process that occurs when​ objectives, strategies, and policies are put into action through the development of programs and​ tactics, budgets, and procedures in an organization E. strategy implementation is the sum total of the activities and choices required for the activities and choices required to execution a strategic plan in an organization

A. an organization that formulates a strategy should never implement the strategy in the organization

​A(n) ________ usually occurs in the​ organization's current market position as a tactic that is used to shield itself against an attack by a rival organization in the marketplace. A. defensive tactic B. encirclement C. offensive tactic D. frontal assault E. first mover

A. defensive tactic

All of the following are true statements about downsizing strategies EXCEPT​ ________. A. downsizing might result in​ more, rather than​ less, productivity B. downsizing can seriously damage the learning capacity of organizations because creativity drops and it becomes difficult to retain​ high-performing employees C. downsizing is a result of a retrenchment strategy D. an organization that implements a successful downsizing strategy experiences strategic​ reorientation, not only the reduction of employees in the workplace E. downsizing refers to the planned elimination of positions or jobs in an organization

A. downsizing might result in​ more, rather than​ less, productivity

All of the following are forms of synergy that occur in an organization EXCEPT​ ________. A. old business creation B. shared tangible resources C. coordinated strategies D. shared​ know-how E. pooled negotiating power

A. old business creation

The amount of money an organization can generate before the cost of finances and taxes in an organization is​ ______________? A. operating cash flow B. economic value added​ (EVA) C. free cash flow D. shareholder value E. cost of capital

A. operating cash flow

The third and final phase of matrix development involves a true​ _______________________. A. ​dual-authority structure B. ​Product-area structure C. Virtual organization D. temporary​ cross-functional task force E. ​Geographic-area structure

A. ​dual-authority structure

​________ systems empower​ cross-functional teams to constantly strive to improve production​ processes; whereas in​ ________ systems parts are grouped into manufacturing families to produce a wide variety of​ mass-produced items. A. Continuous​ improvement; mass production B. Continuous​ improvement; flexible manufacturing C. Flexible​ manufacturing; mass production D. Connected line batch​ flow; mass production E. Mass​ production; flexible manufacturing

B. Continuous​ improvement; flexible manufacturing

​_______________ is a guideline for proper control that results in goal displacement when performance outcomes are not​ optimum? A. Control should involve only the minimum amount of information needed to give a reliable picture of events. B. Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards. C. Controls should aim at pinpointing exceptions. D. Use​ long-term and​ short-term controls E. Controls should be timely so that corrective action can be taken before it is too late.

B. Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards.

​________ strategy addresses the issue of whether a company or business unit should hire a large number of​ low-skilled employees for low pay to perform repetitive jobs. A. Purchasing B. Human resource management C. Information technology D. Logistics E. Operations

B. Human resource management

​______________ is a steering control that is a​ retailer's cost of goods sold divided by the average value of its​ inventories? A. Return on investment​ (ROI) B. Inventory turnover ratio C. Return on equity D. Economic value added​ (EVA) E. Customer satisfaction

B. Inventory turnover ratio

​________ occurs when there is a flow of excess revenue in a highly leveraged organization that resolves problems and conflicts between departments and divisions. A. Hostile acquisition B. Organizational slack C. Concentration D. Diversification E. Acquisition

B. Organizational slack

Which of the following steps in the benchmarking process can the strategic manager identify the area or process that has the potential to gain a competitive advantage in the​ marketplace? A. Step​ V: Develop tactical programs to close performance gaps in the organization. B. Step​ I: Identify the area or process to be examined at the organization. C. Step​ II: Find behavioral and output measures of the area or process and use that data to obtain measurements. D. Step​ IV: Calculate the differences among the​ organization's performance measurements and compare those differences of the primary competitors and determine why the differences exist. E. Step​ III: Select an accessible set of competitors and primary competitors against which to benchmark.

B. Step​ I: Identify the area or process to be examined at the organization.

Which of the following strategies is used to emphasize and improve the operations in an​ organization, and it is an appropriate strategy when problems are pervasive but not yet​ critical? A. Retrenchment strategy B. Turnaround strategy C. ​No-change strategy D. Captive company E. Profit strategy

B. Turnaround strategy

Which of the following is the philosophy that can be traced back to​ Plato, Aristotle, and Hegel that involves the combination of the two conflicting​ views, called​ "thesis" and​ "antithesis," into a​ synthesis? A. internal consistency B. dialectical inquiry C. success D. mutual exclusivity E. internal completeness

B. dialectical inquiry

All of the following are true about logistics strategies EXCEPT​ ________. A. to gain logistical synergies from business​ units, strategic managers at corporations began to centralize logistics in the headquarters group B. logistics strategy is the strategy employed to analyze corporate and​ business-level financial options in organizations that compete in the marketplace today C. a strategic manager can form centralized logistic groups that contain specialists in different transportation modes D. a strategic manager outsources logistics to reduce costs and improve delivery time E. the trends related to a logistics strategy include​ centralization, outsourcing, and the use of the Internet

B. logistics strategy is the strategy employed to analyze corporate and​ business-level financial options in organizations that compete in the marketplace today

Strategic managers can use​ ________ because it forces suppliers to constantly compete for the business of important buyers. A. offshoring B. multiple sourcing C. sole sourcing D. outsourcing E. parallel sourcing

B. multiple sourcing

The amount of money an organization can generate before the cost of finances and taxes in an organization is​ ______________? A. economic value added​ (EVA) B. operating cash flow C. cost of capital D. free cash flow E. shareholder value

B. operating cash flow

In a​ ________, a senior manager can view each individual product line and business unit as a series of investments in an organization. A. turnaround strategy B. portfolio analysis C. captive company strategy D. ​sell-out strategy E. profit strategy

B. portfolio analysis

All of the following are international entry options an organization can implement to achieve horizontal growth EXCEPT​ ________. A. exporting B. profit strategy C. licensing D. franchising E. joint ventures

B. profit strategy

A strategic manager who implements​ ________ employs the​ just-in-time (JIT) concept that has a concept of parts that are purchased arrive at the plant just when the manager needs them rather than an excess of inventories at the organization. A. parallel sourcing B. sole sourcing C. outsourcing D. offshoring E. multiple sourcing

B. sole sourcing

All of the following are true statements about growth strategies EXCEPT​ ________. A. growth is a popular strategy because larger businesses can survive longer compared to a smaller business because the larger businesses have an abundance of financial resources B. ​U.S.-based organizations always succeed when they implement horizontal growth strategies to enter international markets C. growth strategies can enhance​ sales, assets, and profits in an organization D. an organization that experiences growth can offer more opportunities for​ advancement, promotion, and unique or fun employment opportunities E. an organization that implements a growth strategy to increase sales takes advantage of the experience curve to increase profits and reduce the​ per-unit costs of products sold in the marketplace

B. ​U.S.-based organizations always succeed when they implement horizontal growth strategies to enter international markets

Which of the following is referred to as a key to the effective management of​ change? A. Deculturation B. Communication C. Separation D. Integration E. Assimilation

B. Communication

Which of the following choices is the second phase of a turnaround strategy that implements a program to stabilize the​ now-leaner organization? A. ​Pause/proceed-with-caution strategy B. Consolidation C. ​No-change strategy D. Captive company strategy E. Profit strategy

B. Consolidation

In which of the following downsizing guidelines should a manager consider other staffing alternatives because the organization cannot transfer employees and there are no other employment positions available to offer employees in the​ workplace? A. Plan for​ long-run efficiencies. B. Develop​ value-added jobs to balance out job elimination. C. Invest in the remaining employees. D. Communicate the reasons for actions. E. Eliminate unnecessary work instead of making​ across-the-board cuts.

B. Develop​ value-added jobs to balance out job elimination.

Which of the following traits is important when staffing managerial positions at MNCs regardless of their country of origin or host country​ assignment? A. Staffing B. International orientation C. Downsizing D. Executive succession E. Job rotation

B. International orientation

Which of the following downsizing guidelines is useful when the organization understands that employees perform different job functions after it downsizes and the organization drafts new job​ specifications, employee​ standards, appraisal​ techniques, and compensation packages. A. Eliminate unnecessary work instead of making​ across-the-board cuts. B. Invest in the remaining employees. C. Communicate the reasons for actions. D. Plan for​ long-run efficiencies. E. Contract out work that others can do cheaper.

B. Invest in the remaining employees.

Which of the following new job design techniques permits an employee to perform a variety of jobs in the​ workplace? A. Job enlargement B. Job rotation C. Job characteristic D. Job enrichment E. Job design

B. Job rotation

Which of the following terms describes an industry that occurs when each​ country's industry is a separate entity compared to the same industry in another​ country? A. Job rotation B. Multidomestic C. Global D. Vertical organization E. Job enlargement

B. Multidomestic

In which stage of the organizational life cycle is the popular strategy horizontal and vertical​ growth? A. Stage​ V: Death B. Stage​ II: Growth C. Stage​ III: Maturity D. Stage​ IV: Decline E. Stage​ I: Birth

B. Stage​ II: Growth

In which step of the Six Sigma process does the organization seek to discover the exact current performance of a production line or manufacturing process in the​ organization? A. Step​ V: Establish B. Step​ II: Measure C. Step​ III: Analyze D. Step​ IV: Improve E. Step​ I: Define

B. Step​ II: Measure

In which step of the Six Sigma process does an organization investigate the process to determine what is wrong with the production or the manufacturing​ process? A. Step​ V: Establish B. Step​ III: Analyze C. Step​ I: Define D. Step​ II: Measure E. Step​ IV: Improve

B. Step​ III: Analyze

The strategic manager identifies the area or process that has the potential to gain a competitive advantage in the marketplace in​ __________________ of the benchmark process. A. Step​ I: Identify the area or process the organization seeks to examine. B. Step​ IV: Calculate the differences among the​ organization's performance measurements to compare those differences in an organization against the performance of the primary competitors in the marketplace to determine where and why those differences exist between organizations in the marketplace. C. Step​ II: Find behavioral and output measures of the area or process and use that data to obtain measurements. D. Step​ III: Select an accessible set of competitors and primary competitor against which to benchmark. E. Step​ V: Develop tactical programs to close performance gaps in the organization.

B. Step​ IV: Calculate the differences among the​ organization's performance measurements to compare those differences in an organization against the performance of the primary competitors in the marketplace to determine where and why those differences exist between organizations in the marketplace.

A virtual organization is composed of​ ___________________________________. A. dependence and interdependence B. collaborations linked by constantly changing networks C. cells which can operate on their own D. units which can interact with other cells E. ​self-managing teams and business units

B. collaborations linked by constantly changing networks

All of the following are true statements about retrenchment strategies EXCEPT​ ________. A. training is also important when implementing a retrenchment strategy B. effective downsizing strategies do not include investing in the employees that remain after a layoff or termination order C. successful downsizing means that an organization has to invest in its remaining employees D. if a corporation adopts a retrenchment​ strategy, however, a large number of individuals and groups lose their jobs E. all managers should specify the criteria an organization uses when it makes personnel decisions in an organization

B. effective downsizing strategies do not include investing in the employees that remain after a layoff or termination order

All of the following problems occur when an organization implements a strategic change EXCEPT​ ________. A. activities were ineffectively coordinated B. involved employees had sufficient capabilities to perform a job function C. unanticipated major problems arose D. uncontrollable external environmental factors created problems E. ​lower-level employees were inadequately trained

B. involved employees had sufficient capabilities to perform a job function

​________ occurs when two organizations exchange stock to create one new organization in the marketplace. A. Concentration B. Diversification C. A merger D. Organizational slack E. An acquisition

C. A merger

Which of the following strategies does an organization use when the organization forfeits its independence in exchange for​ security? A. Divestment B. ​Pause/proceed with caution strategy C. Captive company strategy D. ​Sell-out strategy E. ​No-change strategy

C. Captive company strategy

Which of the following is a control that focuses on the actual performance results in an​ organization? A. Enterprise risk management​ (ERM) B. ​Activity-based costing​ (ABC) C. Output controls D. Input control E. Behavior

C. Output controls

Which of the following strategies is a​ labor-cost reduction strategy an organization can use to purchase resources from outsiders through​ long-term contracts instead of producing the resources in​ house? A. Licensing B. Synergy C. Outsourcing D. Franchising E. Exporting

C. Outsourcing

​___________ is known as a technology that uses electronic tags to improve supply chain efficiency in the​ workplace? A. ISO 9000 Standard Series B. Enterprise resource planning​ (ERP) C. Radio frequency identification​ (RFID) D. Enterprise risk management E. Economic value added​ (EVA)

C. Radio frequency identification​ (RFID)

​________ are market leaders that are typically at or nearing the peak of their product life cycle in a BCG​ Growth-Share Matrix. A. Exclamation marks B. Cash cows C. Stars D. Dogs E. Question marks

C. Stars

​A(n) ________ strategy is a good method that can specify that a supplier or distributor cannot maintain similar relationships with a competitive organization in the marketplace. A. ​green-field development B. joint venture C. exclusive contract D. captive company E. vertical growth

C. exclusive contract

The amount of money a new owner can take out of the firm without harming the business is​ ____________? A. market value added​ (MVA) B. shareholder value C. free cash flow D. cost of capital E. input

C. free cash flow

A​ ________ is a corporate strategy that cuts across business unit boundaries to build synergy in an organization. A. corporate parenting B. multipoint competition C. horizontal strategy D. vertical growth strategy E. center of excellence

C. horizontal strategy

​________ occurs when an organization does not produce any of its key​ superiors, but instead it purchases most of its necessities from outside suppliers that it partially controls. A. Forward integration B. Backward integration C. ​Quasi-integration D. Full integration E. Taper integration

C. ​Quasi-integration

Which of the following strategies is a useful strategy when a manager can offer his or her shareholders competitive prices and the employees can keep their jobs when the organization sells itself to a competitor in the​ marketplace? A. ​Pause/proceed-with-caution B. Liquidation C. ​Sell-out strategy D. Bankruptcy E. Portfolio analysis

C. ​Sell-out strategy

Which of the following downsizing guidelines is useful when the organization explains why it plans to downsize operations and what the goal of a downsize strategy is in an​ organization? A. Invest in the remaining employees. B. Plan for​ long-run efficiencies. C. Communicate the reasons for actions. D. Eliminate unnecessary work instead of making​ across-the-board cuts. E. Contract out work that others can do cheaper.

C. Communicate the reasons for actions.

Which of the following represents the first company to manufacture and sell a new product or service in the​ marketplace? A. Offensive tactic B. Program C. First mover D. Late mover E. Defensive tactic

C. First mover

​________ occurs when a strategic manager develops a strategy to expand the​ organization's operations into other geographic locations. A. Vertical integration B. Full integration C. Horizontal growth D. Taper integration E. ​Quasi-integration

C. Horizontal growth

Some of the methods used to attack a​ competitor's position include all of the following EXCEPT​ ___________________. A. Flanking maneuver B. Bypass attack C. Increased retaliation D. Raise structural barriers E. Encirclement

C. Increased retaliation

Which of the following emphasizes program usage to ensure employees align interests and attitudes with new strategies in an​ organization? A. Turnaround specialist B. Professional liquidator C. Leading D. Dynamic industry expert E. Staffing

C. Leading

Which of the following is an alternative to a bankruptcy​ strategy, and an organization seeks to terminate the business operations in an organization and distribute the cash out of the assets it sells to its​ shareholders? A. ​Sell-out B. Consolidation C. Liquidation D. Divestment E. Cycle of decline

C. Liquidation

In which essential ingredient of TQM has a focus on empowerment because it provides the employees a wide latitude on their journey to achieve organizational​ goals? A. Continuous improvement of products and services B. Accurate measurement of every critical variable in a​ company's operations C. New work relationships based on trust and teamwork D. An intense focus on customer satisfaction E. Internal as well as external customers

C. New work relationships based on trust and teamwork

All of the following are true statements about communication in an international expansion scenario EXCEPT​ ________. A. communication is the key to the effective management of change in the workplace B. in countries similar to Thailand that have high levels of power​ distance, the managers believe that communication should go out of the top and into the bottom of an organization C. Thai managers feel that​ 360-degree performance appraisals are a positive contribution because the communication in Thailand goes from the top to the bottom of an organization D. in a country that has a high level of uncertainty​ avoidance, such as Switzerland and​ Austria, communication should be clear and​ explicit, and based on facts E. in​ low-uncertainty-avoidance countries such as Greece or​ Russia, individuals and groups are not accustomed to structure in communication and they prefer​ open-ended meetings in the workplace

C. Thai managers feel that​ 360-degree performance appraisals are a positive contribution because the communication in Thailand goes from the top to the bottom of an organization

The MBO process does not involve​ ________________________. A. developing an action plan of activities needed to achieve the objectives B. setting individual objectives that help organizational ones C. an intense focus on customer satisfaction objectives D. Periodically reviewing performance as it relates to the objectives. E. establishing and communicating organizational objectives

C. an intense focus on customer satisfaction objectives

All of the following are true statements about leveraged buyout​ (LBO) EXCEPT​ ________. A. management of the leveraged buyout​ (LBO) is under tremendous pressure to keep the highly leveraged company profitable B. the huge amount of debt on the acquired company books might actually cause its eventual decline by focusing​ management's attention on​ short-term matters C. the acquired company pays for its own acquisition D. financial performance of a typical leveraged buyout​ (LBO) usually rises above the industry average in the fourth year after the leveraged buyout​ (LBO) E. the debt is paid with money generated from the acquired​ company's operations or by sales of its assets

D. financial performance of a typical leveraged buyout​ (LBO) usually rises above the industry average in the fourth year after the leveraged buyout​ (LBO)

​A(n) ________ strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. A. financial B. operations C. ​R&D D. functional E. marketing

D. functional

A strategic manager implements​ a(n) ________ strategy to gain a competitive advantage in the marketplace when he or she focuses on the flow of products into and out of the manufacturing process. A. purchasing B. ​R&D C. operations D. logistics E. financial

D. logistics

In an operation​ strategy, a strategic manager can use​ ________ in​ ever-changing environments because it requires that​ people, processes,​ units, and technology reconfigure themselves to give customers exactly what they​ want, when they want it. A. modular manufacturing B. continuous improvement system C. mass production D. mass customization E. mass merchandisers

D. mass customization

In​ ________, preassembled subassemblies are delivered as needed to a​ company's assembly line workers. A. dedicated transfer lines B. continuous improvement C. mass production D. modular manufacturing E. mass customization

D. modular manufacturing

A strategic manager can use all of the following to enhance an operation strategy EXCEPT​ ________. A. computer numerically controlled systems B. automatically guided vehicles C. flexible manufacturing systems D. open innovation strategy E. ​CAD/CAM

D. open innovation strategy

All of the following are true statements about outsourcing EXCEPT​ ________. A. there are many pros and cons to outsourcing with managers increasingly focusing on​ non-strategically critical parts of the business as categories for outsourcing. B. outsourcing is purchasing a product or service externally that had been previously provided internally. C. outsourcing is the reverse of vertical integration. D. outsourcing is an activity or a function assigned to a wholly owned company or an independent provider in another country. E. outsourcing is becoming an increasingly important part of the strategic​ decision-making discussion.

D. outsourcing is an activity or a function assigned to a wholly owned company or an independent provider in another country.

In which essential ingredient in TQM is to focus on how the organization can please the​ consumer? A. Accurate measurement of every critical variable in a​ company's operations B. Continuous improvement of products and services C. Internal as well as external customers D. An intense focus on customer satisfaction E. New work relationships based on trust and teamwork

D. An intense focus on customer satisfaction

Which of the following provides managers a unique interview to accommodate the specific employment needs to find a suitable employee to fill a position at a large​ organization? A. Power distance B. Optimum culture C. Integration D. Assessment center E. ​Long-term orientation

D. Assessment center

Which of the following is an offensive method an organization can implement when it initiates​ small, intermittent assaults on competitors in different market segments in the external​ environment? A. Lower attacks B. Increase expected retaliation C. Raise structural barriers D. Guerrilla warfare E. Defensive tactics

D. Guerrilla warfare

Which of the following techniques encourage participative decision making through shared goal setting at all organizational levels and bases its performance assessments on stated​ objectives? A. ​Individual-collectivism (I-C) B. ​Long-term orientation C. Total quality management​ (TQM) D. Management by objective​ (MBO) E. Power distance​ (PD)

D. Management by objective​ (MBO)

Which of the following describes how an organization​ grows, develops, and declines in the​ marketplace? A. Network structure B. Matrix structure C. ​Geographic-area structure D. Organizational life cycle E. ​Product-group structure

D. Organizational life cycle

Which of the following downsizing guidelines represents why the organization should NOT simply eliminate all expenses when it implements a downsizing strategy but instead explains why the organization should continue to​ hire, grow, and develop operations when the organization downsizes its​ operations? A. Invest in the remaining employees. B. Contract out work that others can do cheaper. C. Eliminate unnecessary work instead of making​ across-the-board cuts. D. Plan for​ long-run efficiencies. E. Communicate the reasons for actions.

D. Plan for​ long-run efficiencies.

In which stage of the organizational life cycle is the likely structure functional​ management? A. Stage​ V: Death B. Stage​ III: Maturity C. Stage​ I: Birth D. Stage​ II: Growth E. Stage​ IV: Decline

D. Stage​ II: Growth

In​ ________________________, the organization develops strategies to change existing endeavors to enhance the organizational performance in the​ workplace? A. Step​ III: Select an accessible set of competitors and primary competitors against which to benchmark. B. Step​ II: Find behavioral and output measures of the area or process and use that data to obtain measurements. C. Step​ I: Identify the area or process to be examined at the organization. D. Step​ V: Develop tactical programs to close performance gaps in the organization. E. Step​ IV: Calculate the differences among the organizational performance measurements and compare those differences of the primary competitors and determine why the differences exist.

D. Step​ V: Develop tactical programs to close performance gaps in the organization.

The manufacturing facility compute costs for its operations based on historical data in the​ ___________ center? A. expense B. profit C. revenue D. standard cost E. investment

D. standard cost

Which of the following responsibility centers are profits NOT considered because sales departments have very limited influence over the cost of​ products? A. Expense center B. Standard cost center C. Investment center D. Revenue center E. Profit center

D.Revenue center

​A(n) ________ occurs when one company purchases​ 100% of another company in the marketplace. A. directional strategy B. merger C. strategic alliance D. retrenchment strategy E. acquisition

E. acquisition

All of the following errors are examples of outsourcing errors that a strategic manager strives to avoid when an outsourcing strategy is an optimum solution EXCEPT​ ________. A. companies failed to establish a balance of power in the relationship B. the vendor was not trustworthy or the vendor lacks​ state-of-the-art processes C. an error occurs in an outsourcing strategy when a strategic manager fails to keep core activities​ in-house D. qualified managers fail to manage the outsourced activity in the marketplace E. an error occurs in an outsourcing strategy when a strategic manager plans a viable exit strategy

E. an error occurs in an outsourcing strategy when a strategic manager plans a viable exit strategy

The responsibility center where the performance in an organization is measured in terms of the difference between revenues and expenditures is the​ ___________ center? A. expense B. standard cost C. investment D. revenue E. profit

E. profit

A new product pioneer can use​ ________ to create an opportunity to​ "skim the​ cream" from the top of the demand curve with high prices. A. dynamic pricing B. penetration pricing C. brand extension D. leveraged buyout E. skim pricing

E. skim pricing

All the following are correct statements about sole sourcing EXCEPT​ ________. A. a limitation of sole sourcing occurs when a supplier is unable to deliver a part and the purchaser has no alternative but to delay production of a product B. the limitations of sole sourcing have led to the development of parallel sourcing C. sole sourcing reduces transaction costs and builds quality when the purchaser and supplier work together as partners rather than as adversaries D. a strategic manager who implements a sole sourcing strategy experiences more companies that have longer relationships with fewer suppliers involved in a transaction E. sole​ sourcing, in​ practice, utilizes two different vendors to supply two particular products

E. sole​ sourcing, in​ practice, utilizes two different vendors to supply two particular products

Which of the following is useful because its purpose can reveal what can​ occur, by​ whom, the specific time​ frame, and expected results of a strategy in an​ organization? A. Contingency plan B. Deculturation C. Assimilation D. Integration E. Action plan

E. Action plan

In which essential element of TQM does the organization focus on monitoring the operations on a consistent basis to enhance products and services in the​ workplace? A. New work relationships based on trust and teamwork B. An intense focus on customer satisfaction C. Internal as well as external customers D. Accurate measurement of every critical variable in a​ company's operations E. Continuous improvement of products and services

E. Continuous improvement of products and services

Which of the following downsizing guidelines is useful to an organization that chooses to implement an outsourcing strategy rather than a vertical integration strategy in the​ workplace? A. Plan for​ long-run efficiencies. B. Communicate the reasons for actions. C. Invest in the remaining employees. D. Eliminate unnecessary work instead of making​ across-the-board cuts. E. Contract out work that others can do cheaper.

E. Contract out work that others can do cheaper.

The guideline for proper control where an organization should monitor​ 20% of the factors that determine​ 80% of the results in the workplace is​ ____________________________? A. ​Long-term and​ short-term controls should be used. B. Controls should aim at pinpointing exceptions. C. Controls should monitor only meaningful activities and​ results, regardless of measurement difficulty. D. Controls should be timely so that corrective action can be taken before it is too late. E. Control should involve only the minimum amount of information needed to give a reliable picture of events.

E. Control should involve only the minimum amount of information needed to give a reliable picture of events.

Which of the following guidelines for proper control involve activities or results that the organization did not include in a predetermined range that cause the organization to take​ action? A. Controls should be timely so that corrective action can be taken before it is too late. B. Controls should monitor only meaningful activities and​ results, regardless of measurement difficulty. C. ​Long-term and​ short-term controls should be used. D. Control should involve only the minimum amount of information needed to give a reliable picture of events. E. Controls should aim at pinpointing exceptions.

E. Controls should aim at pinpointing exceptions.

Which of the following guidelines an organization uses to downsize operations is useful when the organization should stop functions that fail to add value in an​ organization? A. Plan for​ long-run efficiencies. B. Invest in the remaining employees. C. Communicate the reasons for actions. D. Contract out work that others can do cheaper. E. Eliminate unnecessary work instead of making​ across-the-board cuts.

E. Eliminate unnecessary work instead of making​ across-the-board cuts.

Which of the following offensive methods does an organization implement when the organization mimics a​ competitor's pricing,​ promotion, and distribution channel strategies to gain a competitive advantage in an​ industry? A. Bypass attack B. Encirclement C. Raise structural barriers D. Flanking maneuver E. Frontal assault

E. Frontal assault

Which of the following is the redesign of a business process to increase​ profitability, improve​ service, and manage time in an​ organization? A. Synergy B. Job rotation C. Job enrichment D. ​Product-group structure E. Reengineering

E. Reengineering

In which stage of the organizational life cycle is the dismemberment of​ structure? A. Stage​ II: Growth B. Stage​ IV: Decline C. Stage​ I: Birth D. Stage​ III: Maturity E. Stage​ V: Death

E. Stage​ V: Death

Which of the following is NOT a​ long-term reversal in organizational growth known as a​ "stall point​ category"? A. Premium position backfires B. ​Break-down in innovation management C. ​Short-run talent and capabilities D. Core business abandoned E. Strategic implementation

E. Strategic implementation

All of the following are forms of synergy that occur in an organization EXCEPT​ ________. A. pooled negotiating power B. new business creation C. shared​ know-how D. shared tangible resources E. individualized strategies

E. individualized strategies

The​ _________ center measures performance in terms of the difference between its resources and its products in the​ workplace? A. revenue B. standard cost C. expense D. profit E. investment

E. investment

Which of the following promotes​ centralized-decision making and enables a company to introduce and manage similar products around the​ world? A. ​Product-group structure B. Job design C. Reengineering D. Network organization E. ​Geographic-area structure

E. ​Geographic-area structure

Which of the following methods in an organization excludes developmental expenses as a separate expense from the current operational​ expenses? A. Behavior substitution B. ​Long-term evaluation method C. ​Weighted-factor method D. Suboptimization E. ​Strategic-funds method

E. ​Strategic-funds method

Tailored to match measurements with​ rewards, the​ _____________ measures and rewards the performance of top SBUs managers when performance factors vary in the individual SBUs in an​ organization? A. suboptimization B. behavior substitution C. ​strategic-funds method D. ​long-term evaluation method E. ​weighted-factor method

E. ​weighted-factor method

​________ is the outsourcing of an activity or a function to a wholly owned company or an independent provider in another country. A. Parallel sourcing B. Multiple sourcing C. Onsourcing D. Offshoring E. Sole sourcing

D. Offshoring

Which of the following strategies refers to an organization that intentionally produces less than half of its own​ incidentals, and it purchases the remaining incidentals from outside suppliers in the​ marketplace? A. Taper integration B. Forward integration C. Backward integration D. ​Quasi-integration E. Full integration

A. Taper integration

All of the following are a category type in the BCG​ Growth-Share Matrix EXCEPT​ ________. A. exclamation marks B. dog C. cash cows D. stars E. question marks

A. exclamation marks

​A(n) ________ strategy is a strategy to avoid that occurs when a strategic manager imitates the strategy of a competitor in the​ marketplace; whereas a strategic manager that implements​ ________ strategy achieves success when he or she pioneers a successful product and continues to search for another super product that will ensure the growth and prosperity in the organization. A. follow the​ leader; hit another home run B. arms​ race; do everything C. do​ everything; losing hand D. hit another​ homerun; follow the leader E. losing​ hand; follow the leader

A. follow the​ leader; hit another home run

​A(n) ________ strategy is the orientation in a corporate directional strategy that expands the​ company's activities in an organization. A. growth B. parenting C. synergy D. stability E. retrenchment

A. growth

In​ a(n) ________​ strategy, strategic managers can capture a larger share of an existing market for current products through market saturation or market​ penetration; whereas a strategic manager uses​ a(n) ________ strategy to develop new products for existing markets. A. market​ development; product development B. product​ development; market development C. ​functional; market development D. ​financial; R&D E. ​operations; financial

A. market​ development; product development

In​ ________, large,​ multi-business corporations compete against other large​ multi-business firms in a number of markets. A. multipoint competition B. vertical growth C. corporate parenting D. portfolio analysis E. horizontal strategy

A. multipoint competition

A firm that uses alliances and connections with​ corporate, government, academic​ labs, and consumers to develop new products and processes uses​ ________, a newer approach to​ R&D. A. open innovation B. dedicated transfer lines C. technology scouts D. operations strategy E. technical follower

A. open innovation

​__________________ is the method an organization can use to allocate indirect and fixed costs to products that it bases from​ value-added activities in the​ workplace? A. ​Activity-based costing​ (ABC) B. Enterprise resource planning​ (ERP) software C. ​Short-term orientation D. Benchmarking E. Traditional cost accounting

A. ​Activity-based costing​ (ABC)

Tailored to match measurements with​ rewards, the​ __________ compensates managers when the objectives are set over multiple years in the​ workplace? A. ​long-term evaluation method B. ​strategic-funds method C. ​weighted-factor method D. suboptimization E. behavior substitution

A. ​long-term evaluation method

In which essential ingredient of TQM can the organization quantify operational functions and ensure that employees can interpret the​ data? A. Accurate measurement of every critical variable in a​ company's operations B. An intense focus on customer satisfaction C. Internal as well as external customers D. New work relationships based on trust and teamwork E. Continuous improvement of products and services

A. Accurate measurement of every critical variable in a​ company's operations

​_____________________ is a guideline for proper control used to help an organization achieve cooperation between divisions when the organization implements a form of qualitative or quantitative​ measures? A. Controls should monitor only meaningful activities and​ results, regardless of measurement difficulty B. Control should involve only the minimum amount of information needed to give a reliable picture of events C. Use​ long-term and​ short-term controls D. Controls should be timely so that corrective action can be taken before it is too late E. Controls should aim at pinpointing exceptions

A. Controls should monitor only meaningful activities and​ results, regardless of measurement difficulty

Instead of a continual and extensive​ resource-expensive attack on a​ competitor, a firm or business may choose to​ "hit and​ run." This tactic is referred to as​ _________________. A. Guerrilla warfare B. Encirclement C. Raise structural barriers D. Bypass attack E. Flanking maneuver

A. Guerrilla warfare

Which of the following is NOT an advantage of portfolio​ analysis? A. Portfolio analysis does not have real limitations that cause companies to reduce their use of this approach in the marketplace. B. Portfolio analysis contains a graphic depiction that facilitates communication. C. Portfolio analysis can determine whether the organization has​ cash-flow availability to use in expansion and growth scenarios. D. Portfolio analysis simulates the use of externally oriented data to supplement​ management's judgment in a scenario. E. Portfolio analysis encourages top managers to evaluate each of the​ organization's business units on an individual basis.

A. Portfolio analysis does not have real limitations that cause companies to reduce their use of this approach in the marketplace.

Which of the following focuses on the selection and use of employees in an​ organization? A. Staffing B. Integration manager C. Executive succession D. Leading E. Assessment center

A. Staffing

​_____________________ in the benchmarking process the organization implements new endeavors and compares performance to primary competitors in the​ marketplace? A. Step​ VI: Implement the programs and then compare the resulting new measurements with those results of primary competitors in the marketplace. B. Step​ II: Find behavioral and output measures of the area or process and use that data to obtain measurements. C. Step​ III: Select an accessible set of competitors and primary competitors against which to benchmark. D. Step​ V: Develop tactical programs to close performance gaps in the organization. E. Step​ IV: Calculate the differences among the​ organization's performance measurements and compare those differences of the primary competitor and determine why the differences exist.

A. Step​ VI: Implement the programs and then compare the resulting new measurements with those results of primary competitors in the marketplace.

All of the following are true about strategies to hire and train employees EXCEPT​ ________. A. a new strategy or policy never relates to new human resource management priorities and different uses of personnel in the workplace B. an organization might discover that it needs to hire different individuals and groups or retrain current employees to meet organizational goals and objectives C. training is important when an organization implements a retrenchment strategy D. employee selection and training are important to the success of a new strategy in an organization E. training is an important consideration in a differentiation strategy that emphasizes quality or customer service in an organization

A. a new strategy or policy never relates to new human resource management priorities and different uses of personnel in the workplace

Executive managers who implement succession plans utilize best practices that include all of the following EXCEPT​ ________. A. executive characteristics never influence strategic outcomes at an organization B. executive managers can provide financial incentives to motivate employees C. executive managers compare the inter nal candidates in a succession plan to an outside candidate to ensure the candidates contain pertinent skills and abilities D. executive managers look outside the organization to recruit a new CEO candidate only if there are no internal candidates to fill the position internally E. encouraging boards to help the CEO create a succession plan

A. executive characteristics never influence strategic outcomes at an organization

In the​ __________ center resources are measured in dollars without consideration to the service and product​ costs? A. expense B. investment C. profit D. revenue E. standard cost

A. expense

Which of the following occurs when an organization forfeits control of the organization to a court in return for a predetermined​ settlement? A. Consolidation B. Bankruptcy C. ​Sell-out D. Contraction E. Liquidation

B. Bankruptcy

In which step of the Six Sigma process does an organization develop controls to monitor and eliminate defects that occur on the production​ line? A. Step​ III: Analyze B. Step​ V: Establish C. Step​ I: Define D. Step​ II: Measure E. Step​ IV: Improve

B. Step​ V: Establish

Which of the following guidelines for proper control should an organization use to monitor or measure the steering control factors that influence performance in the​ organization? A. Control should involve only the minimum amount of information needed to give a reliable picture of events. B. ​Long-term and​ short-term controls should be used. C. Controls should be timely so that corrective action can be taken before it is too late. D. Controls should monitor only meaningful activities and​ results, regardless of measurement difficulty. E. Controls should aim at pinpointing exceptions.

C. Controls should be timely so that corrective action can be taken before it is too late.

The result of dividing net income before taxes by the total amount invested in the organization is​ ______________? A. return on equity​ (ROE) B. economic value added​ (EVA) C. return on investment​ (ROI) D. enterprise risk management​ (ERM) E. earnings per share​ (EPS)

C. return on investment​ (ROI)

Which of the following strategies can a strategic manager use to form closer relationships with both the customers and suppliers through sophisticated extranets in an​ organization? A. Operations strategy B. Purchasing strategy C. Human resource management strategy D. Information technology strategy E. Logistics strategy

D. Information technology strategy

Strategic managers evaluate strategic alternatives to ensure they meet all of the following criteria EXCEPT​ ________. A. completeness B. mutual exclusivity C. success D. developing policies E. internal consistency

D. developing policies

The action plan to develop a new advertising program should include all of the following EXCEPT​ ________________. A. Dates to begin and end each action B. Specific actions to be taken for making the program operational C. Expected financial and physical consequences for each action D. Select a program to implement a particular strategy E. Contingency plans

D. Select a program to implement a particular strategy

What is the initial effort to quickly​ "stop the​ bleeding" with a general​ across-the-board cutback in size and costs in a turnaround​ strategy? A. Consolidation B. ​Sell-out strategy C. Divestment D. Bankruptcy E. Contraction

E. Contraction

Which of the following is the strategy that is used to represent an organization that has multiple business lines and chooses to sell off a division that has low growth​ potential? A. Liquidation B. Captive company strategy C. ​Pause/proceed-with-caution D. ​No-change strategy E. Divestment

E. Divestment

​________ reduces transaction costs and builds quality because the purchaser and supplier work together as​ partners; whereas in​ a(n) ________, two suppliers are the sole suppliers of two different parts. A. ​Offshoring; multiple sourcing B. ​Outsourcing; multiple sourcing C. Multiple​ sourcing; offshoring D. ​Outsourcing; offshoring E. Sole​ sourcing; parallel sourcing

E. Sole​ sourcing; parallel sourcing

​______________ occurs when an organization reviews each responsibility center or functional unit as a separate entity from the​ organization? A. ​Strategic-funds method B. Behavior substitution C. ​Long-term evaluation method D. ​Weighted-factor method E. Suboptimization

E. Suboptimization

Which of the following represents an organization that eliminates its​ in-house business functions and outsources many business activities in the​ organization? A. Procedure B. ​Product-area structure C. Cellular organization D. ​Geographic-area structure E. Virtual organization

E. Virtual organization

​TQM's essential ingredients include all of the following EXCEPT​ ___________________. A. accurate measurement of every critical variable in a​ company's operations B. continuous improvement of products and services C. new work relationships based on trust and teamwork D. an intense focus on customer satisfaction E. establishing and communicating organizational objectives

E. establishing and communicating organizational objectives


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