BUSI 310 Quiz 2 Organizational Environment & Planning solutions complete answers

BUSI 310 Quiz 2 Organizational Environment & Planning solutions complete answers 

 

__________ is/are a major barrier to entry.

 

Antonio owns a local men's clothing store. In the face of increasing competition, Antonio has tried several tactics: aggressively promoting price-slashing sales to drive his competitors' customers to his doors; attempting to cut costs by leveling out sales and inventory through seasonal sales; and lining up contracts with wholesalers in advance of seasonal rushes (e.g., summer swimwear) to prevent inventory depletion. None of these tactics has been successful. Now, Antonio is considering a deviation from his current business to one that might be more suitable, perhaps a formal wear/tuxedo rental and retail shop or a boutique Western wear store. Swen is using __________ as his final tactic to save his business.

 

Advances in genetic engineering are expected to produce some food products that will become available all year round even in continental climates. These changes will provide grocers with an opportunity to reduce their shipping costs while offering fresher produce to their customers. These advances are examples of changes in the __________ environment.

 

Typical strategic goals involve

 

A __________ is an intermediate consumer.

 

Barley owns and operates a food truck in a large city. Competitors are many, and competition is fierce. Due to her small business's size, she cannot realistically influence her business environment. However, Barley could take steps to adapt to the uncertain environment by buffering, including

 

A company uses __________ when it acts on its own to change some aspect of its current environment.

 

__________ is the degree of discontinuous change that occurs within the industry.

 

For many years, Mars, Incorporated manufactured M&M's candies in assorted but fixed colors. M&M's were known and branded worldwide as individual candies featuring single solid colors. Then, in response to technological advancements and evolving customer tastes and expectations, Mars adapted its technical core by producing M&M's in an infinite variety of configurations and colors, even offering M&M's with personal photographs imprinted upon them as a product of "mass customization." Mars accomplished this by implementing

 

In the context of planning, if there is alternative generation, evaluation, and selection steps which reveal several different future scenarios, a different __________ plan is attached to each scenario.

 

Associated Bank Corp. utilizes the janitorial services of Clean-It Corp. to keep its buildings clean. Clean-It Corp. provides all the necessary cleaning supplies, training, background security checks, and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. If Associated Bank were to consider hiring another cleaning service to replace Clean-It Corp., the bank would most likely incur

 

Homestyle Treats, a chain of cookie shops, periodically compares the quality of its food and service with its competitors in order to continually improve its performance. This corporate strategy is known as

 

In an attempt to improve customer service, Terrific Toys decided to assign a team to investigate the kinds of services offered by competing companies. The team discovered that a smaller company, GV Games Corp., seemed to have outstanding customer service. The team then determined the major differences between the two companies and developed a plan to incorporate the best elements of GV Games into Terrific Toys. What tool is being implemented by Terrific Toys?

 

__________ are conditions that prevent new companies from establishing themselves in an industry.

 

The owner of Frank’s Fine Foods, a family-owned grocery store, said to his management team following their SWOT analysis, "We're in trouble. We have been the leading grocer in this geographical area, but Wholesome Groceries is opening a superstore a mile away. Our refrigeration system is 15 years old and needs replacing. Our store manager and produce manager are retiring this year. And our employee benefits package is not competitive." A threat to Frank’s Fine Foods, per the SWOT analysis, is that

 

In order to reduce production costs, Autoworks an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as

 

Identify the environmental factor that is a characteristic of an attractive environment for a business.

 

What is typical of most managerial decisions?

 

Identify the environmental factor that contributes to an attractive environment for existing firms.

 

Which organizational culture’s objectives are productivity, planning, and efficiency?

 

Senior management at Durable Manufacturing knows that a successful implementation of the business plan in the coming year is critical to the company’s survival in a competitive industry. Durable cannot afford for different parts of the organization to “stray” from the plan; in fact, each organizational unit must perform in sync with the goals of the unit above it and the units below it. Thus, the individual plans of the corporation, each division, each department, and each section must be

 

For organizations, the formal planning model is generally __________, with top-level strategies flowing down through the levels of the organization into more specific goals and plans.

 

Decision makers who search for __________ solutions use ideas they have tried before or follow the advice of others who have faced similar problems.

 

Harris Industries is evaluating the purchase of a small firm, StrongTech Inc. which manufactures products involving advanced technology. These products are expected to revolutionize the home construction industry. StrongTech has only a minor share of this market, but the market is expected to grow rapidly. Substantial investment will be required. In the BCG matrix, StrongTech Inc. would be placed in the __________ category.

 

Groups and individuals who affect and are affected by achievement of the organization’s mission, goals, and strategies are considered

 

Dennis, a senior manager at VPR Corporation, is considering the acquisition of a revolutionary water treatment technology from a small development firm. The asking price is $5 million. However, the environmental uncertainty of the water treatment marketplace is both complex and dynamic. Dennis wants to acquire the new technology but seeks to manage the risk associated with his decision, or “hedge his bets.” Key ways to cope with the uncertainty would be to

 

Jean is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Jean is most likely searching for a(n) __________ solution to her problem.

 

Which organizational culture is strongly characterized by being internally oriented and flexible, and emphasizing trust, commitment, and tradition?

 

Patrice has to select paper clips to purchase for her office. She looks at the office supply catalog and picks the first one that is priced reasonably. Patrice is using the __________ method of decision making.

 

The leadership focus on __________ is/are associated with a hierarchical culture.

 

Smooth Coat, a paint manufacturer , developed a strategic plan that assumed continued growth in its industry. Additionally, it generated several __________ for different economic settings. When a recession started, Smooth Coat quickly implemented the plan based on those conditions. As a consequence, it survived more easily than other firms in the industry.

 

In managerial decision making, the state that exists when decision makers have insufficient information is known as

 

Cameron’s manager and mentor, Oliva, is helping Cameron develop his first business plan. Oliva said, “One of the most powerful tools that you can use in developing a strategic plan for your business is to analyze the external environment and your internal resources. I will help you formulate this strategy by using a technique called

 

A mission statement describes the organization’s

 

In the context of formal decision making, negative feedback indicates that

 

Management decisions typically

 

According to the _____ plan of Xenon Inc., if expansion to new markets in Australia does not materialize, the company will strive for expansion in Asia.

 

In order to reduce production costs, Tryon Inc., an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as

 

Leona is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Leona is most likely searching for a(n) _____ solution to her problem.

 

Beatrice owns and operates a food truck in a large city. Competitors are many, and competition is fierce. Due to her small business's size, she cannot realistically influence her business environment. However, Beatrice can and does take steps to adapt to the environment, including

 

Josiah, a new manager at Super Sandwiches, has been asked to focus on the competitive environment of the organization. Which of these factors is among those that Josiah should focus on?

 

A useful clue about an organization's culture is

 

The corporate strategy of _______ involves expanding the domain of an organization into supply channels and to distributors.

 

________________ is a psychological bias that applies to students who do not spend sufficient time studying.

 

During the _______________ step of the planning process, managers identify the priorities and trade-offs among goals and plans.

 

For the decision-making process in an organization, those who _______ a decision must understand the choice and must be committed to its successful implementation.

 

A complement is a potential _____ because customers use it as an alternative, buying less of one kind of product but more of another.

 

The planning step known as monitoring and controlling performance

 

_____ is the number of issues to which a manager must attend and the degree to which they are interconnected.

 

For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to stay in business. In the face of increasing competition, Swen has tried several tactics: aggressively promoting price-slashing sales to drive his competitors' customers to his doors; attempting to cut costs by leveling out sales and inventory through seasonal sales; as well as lining up contracts with wholesalers in advance of seasonal rushes (e.g., summer swimwear) to prevent inventory depletion. He has even recruited the president of the chamber of commerce to sit on his board. None of these tactics have been successful. Now, Swen is considering a deviation from his current business to one that might be more suitable, perhaps a formal wear/tuxedo rental and retail shop or a boutique Western wear store. Swen is using _____ as his final tactic.

 

In the BCG matrix, a star represents a company 

 

Which stage of the planning process is Miteron Corp. involved in if it is assessing how well alternative plans meet high-priority goals while considering the cost of each initiative and the likely investment return?

 

The step in the formal planning process known as _________________ involves studying past events, examining current conditions, and forecasting future trends.

 

The leadership style(s) of ____________ is/are associated with a hierarchical culture.

 

The senior managers of Acme Steel knew that a successful implementation of their business plan in the coming year was critical to the company's survival in a competitive industry. Acme could not afford for different parts of the organization to "stray" from the plan; in fact, each organizational unit needed to perform in sync with the goals of the unit above it and the units below it. Thus, it was critical that the individual plans of the corporation, each division, each department, and each section be

 

Dennis, a senior manager at VST Corporation, is considering the acquisition of a revolutionary water treatment technology from a small development firm. The asking price is $5 million. However, the environmental uncertainty of the water treatment marketplace is both complex and dynamic. Dennis wants to acquire the new technology but seeks to manage the risk associated with his decision, or "hedge his bets." Key elements of his risk management strategy might be to

 

"We have 125 qualified candidates for the quarterly training program but only 25 slots," said Bill Robbins, production manager. "In that case, randomly select 25, and we will train the other candidates later this year during the next rounds of training," said Jill Stern, division manager. By selecting the first 25 qualified candidates at random rather than examining each candidate's file to determine if more qualified candidates should be selected first, the managers are engaging in

 

During a managers' meeting, there is difficulty reaching a conclusion on which project to fund in the upcoming year. In arguing for funding for her project, Vivian states that she has experience in making all projects succeed. She even states that she is immune to failure. Vivian is displaying

 

Jim's manager and mentor, Naomi, helped Jim develop his first business plan. Naomi said, "Jim, one of the most powerful tools that you can use in developing a strategic plan for your division is to analyze the external environment and your internal resources. I will help you formulate this strategy by using a technique called

 

Functional strategies are implemented

 

Belinda has to select the right paper clips to purchase for her office. She looks at the office supply catalog and picks the first one that is priced reasonably. Belinda is using the ____________ method of decision making.

 

Pettigrew Inc. recently decided to expand from its original base in real estate to several wide-ranging industries such as trucking, lawn mower manufacturing, and catering. Pettigrew is using the _____ corporate strategy.

 

Situational analysis, as part of the formal planning process, focuses on

 

Which level of manager is known as a tactical manager?

 

When decision making is done in groups, the job of a devil's advocate is to create

 

Forge Right Inc., a manufacturing company, developed a strategic plan that assumed improved growth in its industry. Additionally, it generated several _____ for different economic settings. When a recession started, Forge Right Inc. quickly implemented the plan based on those conditions. As a consequence, it survived more easily than other firms in the industry.

 

____________ is the first level of organization culture.

 

In brainstorming, 

 

Identify the environmental factor that is a characteristic of an attractive environment.

 

Great American Farms Corp. announced that it was selling off its cereals division in order to realign itself more competitively in the marketing of its other products. This is an example of managing the task environment through

 

The strategic vision of an organization

 

To be effective, an organization's strategic plans should focus on goals that are

 

A _____ strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.

 

In order to reduce production costs, Tryon Inc., an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as

 

In managerial decision making, when one can estimate the likelihood of various consequences but still does not know with certainty what will happen, he or she is facing

 

_____ refers to absorbing new elements into an organization's leadership structure to avert threats to its stability or existence.

 

Allied Bank Corp. utilizes the janitorial services of Marie's Clean-It Corp. to keep their buildings clean. Marie's provides all the necessary cleaning supplies, training, background security checks (because the crew works after hours), and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. If Allied Bank were to consider hiring another cleaning service to replace Marie's, which of the following would the bank incur?

 

Hospitals and universities are very expensive to start and keep running because of the capital and equipment required. The requirement of personnel, such as specialized medical doctors and researchers, is also high. What does this provide an example of?

 

When Good As Mom's Corp. advertises its syrup products as better than the syrup products of Grandma's Best Corp., Good As Mom's is demonstrating

 

Which approaches should an organization adopt for managing uncertainty in a complex and dynamic environment?

 

The formal planning model emphasizes a _______ approach.

 

In the context of the decision-making process in an organization, those who _______ a decision must understand the choice and must be committed to its successful implementation.

 

Businesses using a ________ strategy try to be efficient and offer a standard, no-frills product.

 

______ is the phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.

 

Resources are a source of competitive advantage except when they are

 

1.
Abraham Maslow argued that people try to satisfy
 
 
2.
According to the contingency perspective, there is(are) ______best way(s) to manage and organize.
 
 
3.
All of the following are key components of the "current landscape in business" EXCEPT
 
 
4.
_____ are approaches that an organization that acts on its own uses to change some aspect of its current environment.
 
 
5.
_____ are the underlying qualities and desirable behaviors that are important to an organization.
 
 
6.
As a manager at Carrel Corp., Derek spends much of his time coaching young managers and making sure that any required information reaches all the branches for them to be successful. Derek would best be described as a(n)
 
 
7.
As managers rise through an organization, they will probably rely less on their technical skills.
 
 
8.
As one of the key management functions, leading focuses on a manager's efforts to
 
 
9.
The best managers prioritize efficiency over effectiveness.
 
 
10.
A centralized, bureaucratic approach with standardized work processes for managing uncertainty is ideal for which of the following environments?
 
 
11.
A centralized, organic approach with direct supervision for managing uncertainty is ideal for which of the following environments?
 
 
12.
Collaboration can occur
 
 
13.
The _____ effect refers to people's reactions to being observed or studied resulting in superficial rather than meaningful changes in behavior.
 
 
14.
Forecasts are most useful when the ____ will look radically different from the _____.
 
 
15.
_____, founded in the late 19th century, was one of the first university programs to offer management and business education.
 
 
16.
If a consumer changes suppliers, they are faced with
 
 
17.
_____ includes searching for and sorting through information about the environment.
 
 
18.
In smaller entrepreneurial firms and even in more adaptive larger firms, managers
 
 
19.
_____ is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals.
 
 
20.
________ is keeping costs low enough to achieve profits while pricing products at levels that are attractive to consumers.
 
 
21.
A _____ is powerful if a buyer has few other sources of supply or if the supplier has many other buyers.
 
 
22.
_____ is the excellence of your product.
 
 
23.
______ is the goodwill stemming from social relationships.
 
 
24.
_____ is the number of issues to which a manager must attend, and the degree to which they are interconnected.
 
 
25.
_____ is the process of sharing authority with employees to enhance their confidence in their ability to perform their jobs and contribute to an organization.
 
 
26.
_________________ is the process of working with people and resources to accomplish organizational goals.
 
 
27.
_____ is the set of practices aimed at discovering and harnessing an organization's intellectual resources, fully utilizing the intellects of the organization's people.
 
 
28.
Kegg's Cereals Inc. is a major supplier to almost all grocery store chains. It has most of the valuable shelf space in the cereal aisle. Which of the following is true based on this information?
 
 
29.
The main difference between final consumers and intermediate consumers is that the final consumers
 
 
30.
Many aspects of a management decision _____ expressed through mathematical symbols and formulas.
 
 
31.
One of the fourteen principles of management identified by Henri Fayol was the subordination of individual interest to the general interest.
 
 
32.
Peter Drucker was the first person to discuss _____, by which a manager should be self-driven to accomplish key goals that link to organizational success.
 
 
33.
_____ refer(s) to reductions in the average cost of a unit of production as the total volume produced increases.
 
 
34.
Research on _____ promoted the use of teamwork and semiautonomous work groups as important factors for creating efficient production systems.
 
 
35.
What method is used to predict exactly how some variable or variables will change in the future?
 
 
36.
When a manager treats employees as lazy, unmotivated, and in need of tight supervision, the employees eventually meet the manager's expectations by acting that way. According to Douglas McGregor, this is known as
 
 
37.
Which of Henri Fayol's 14 principles of management refers to keeping communications within the chain of command?
 
 
38.
Which of the following explains the management function of leading?
 
 
39.
Which of the following helped organizations achieve goals through systematic management?
 
 
40.
Which of the following is a criticism of the classical approaches to management as a whole?
 
 
41.
Which of the following is a criticism of the human relations approach to management?
 
 
 
 
 
 
 
 
 

42.
Which of the following is a final consumer?
 
 
43.
Which of the following is a way of redefining the boundaries of an organization's environment?
 
 
44.
Which of the following manager's roles involves communicating on behalf of the organization?
 
 
45.
Which of the following organizational cultures is strongly characterized by cohesiveness, participation, and sense of family?
 
 
46.
Which of the following scenarios does not demonstrate an emotional intelligence skill?
 
 
47.
Which of the following statements is true about systematic management?
 
 
48.
Which of the following statements is true of globalization?
 
 
49.
Which of the following statements is true of the systems theory?
 
 
50.
Which type of manager is responsible for translating the general goals and plans developed for an organization into more specific activities?
 
 
 

1.
According to Peter Drucker, which of the following statements is true of managing a family business?
 
 
2.
The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.
 
 
3.
Akins Corp. had focused only on alcoholic beverages for the last two decades. Now, the company is considering entering the soft drink market. Which of the following corporate strategies will most likely be adopted by the company?
 
 
4.
All of the following are considered stakeholders except those groups and individuals
 
 
5.
Alpha Associates often uses groups to consider the advantages, disadvantages and potential effects of goals and plans. Alpha Associates is involved in which basic planning stage?
 
 
6.
_____, an ethical system, defines ethical behavior according to how others behave.
 
 
7.
Corporate social responsibility refers to
 
 
8.
Discounting the future refers to
 
 
9.
Employees, organizations, and communities thrive over the long term when managers apply ethical standards that direct them to act with integrity.
 
 
10.
Entrepreneurs experience stress, but they also have high job satisfaction. They tend to be
 
 
11.
Gallaway Inc. recently decided to expand from its original base in real estate to several wide-ranging industries such as trucking, lawn mower manufacturing, and catering. Gallaway is using the _____ corporate strategy.
 
 
12.
In an organization, the process of planning moves in a linear fashion.
 
 
13.
In Kohlberg's model of cognitive moral development, which category follows the conventional stage?
 
 
14.
In the context of a transcendent education, _____ refers to feeling one's decisions as potential victims might feel them, to gain wisdom.
 
 
15.
In the context of business ethics, which of the following statements regarding ethics codes is true?
 
 
16.
In the context of corporate ethics programs, which of the following is a function of ethics committees?
 
 
17.
In the context of corporate social responsibility, _____ responsibilities are to obey local, state, federal, and relevant international laws.
 
 
18.
In the context of entrepreneurial orientation, an organization with a tendency of _____ grants individuals and teams the freedom to exercise their creativity, champion promising ideas, and carry them through to completion.
 
 
19.
In the context of ethical systems, which of the following is true of virtue ethics?
 
 
20.
In the context of generating alternative solutions during the decision-making process, _____ solutions must be designed for specific problems.
 
 
21.
In the context of making decisions in a group, when a strong leader makes his or her preferences clear, and the result is the same as it would have been if the leader had made the decision alone, it leads to a situation known as
 
 
22.
In the context of resources and core capabilities, the tangible assets of an organization include
 
 
23.
In the context of starting an entrepreneurial venture, the first formal step is to
 
 
24.
In the context of successful business models for e-commerce, sites that pay commissions to other sites to drive business to their own sites involve the _____ model.
 
 
25.
In the context of the entrepreneurial strategy matrix, most small business ventures are in the lower right quadrant where innovation is low and risk is high.
 
 
26.
In the context of the levels of planning, typical strategic goals involve
 
 
27.
_____ is an enterprise having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices.
 
 
28.
Jonah has a new idea to revamp the mail processing at his large company. His boss tells him to go for it and report back on the barriers and efficiencies of his idea. This approach is called
 
 
29.
The _____ matrix is not a substitute for management judgment; it helps managers of businesses evaluate their strategy alternatives.
 
 
30.
Milton Friedman contended that a business cannot increase its profits while conforming to society's laws and ethical customs.
 
 
31.
Montgomery Donuts has made the decision to sell shares of stock publicly. This is called
 
 
32.
The most dangerous risk in intrapreneurship is that of
 
 
33.
Nina, a manager, is considering reducing the workforce to cut down on costs. She realizes that this decision will have a huge impact on her employees. In the context of making an ethical decision, this stage is known as
 
 
34.
A plan to integrate employees into a new payroll system, assuming that it is not likely to be repeated in the foreseeable future, is an example of a _____ plan.
 
 
35.
Polo Corp. brings buyers and sellers together and charges a commission for each sale. This type of business model is known as the
 
 
36.
The second step in building support for your idea is
 
 
 
 
 
 
 
 
 
 
 

37.
Situational analysis, as part of the formal planning process,
 
 
38.
Some say that _____ are slower to act and tend to avoid risk.
 
 
39.
Standing plans are designed to achieve a set of short-term goals.
 
 
40.
Teal Inc., a manufacturer of designer journals and notebooks, switched to using recycled paper to manufacture its products. It also changed the design such that the book covers and spiral cords used as spines were not made out of plastic. The changes made by Teal Inc., are an example of
 
 
41.
The ________ was passed by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
 
 
42.
When you can offer promises of payoffs from the project in return for support, time, money, and other resources that peers and others contribute, you are participating in
 
 
43.
Which of the following are considered unconscious biases?
 
 
44.
Which of the following describes good plans in organizations?
 
 
45.
Which of the following is one of the four levels of managers who use planning?
 
 
46.
Which of the following is true of compliance-based corporate ethics programs?
 
 
47.
Which of the following is true of entrepreneurial ventures?
 
 
 

1.
According to Abraham Maslow, the most advanced human need is for
 
 
2.
An advantage of using a group for decision making is that disagreements are unlikely to happen, and this phenomenon is called groupthink.
 
 
3.
After downsizing, employees who keep their jobs struggle with heavier workloads and become risk-adverse, self-absorbed, and narrow-minded. They are said to display a phenomena known as
 
 
4.
_____, an ethical system, defines ethical behavior based on the opinions and behaviors of associated people.
 
 
5.
A(n) _____ is a person who assembles and coordinates participants in a network.
 
 
6.
A(n) ________ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.
 
 
7.
The _____ approach is aimed at understanding how psychological and social processes interact with the work situation to influence performance.
 
 
8.
______ are conditions that prevent new companies from setting foot in an industry.
 
 
9.
_____ argued that people try to satisfy their lower-level needs and then progress upward to the higher-level needs.
 
 
10.
As a key element of _______ approach, the principle of the piecerate system primarily promoted the use of standardized workplaces that were hygienic and safe.
 
 
11.
As one of the key management functions, leading focuses on a manager's efforts to
 
 
12.
Benchmarking is the process comparing an organization's practices and technologies with those of other companies.
 
 
13.
The best managers prioritize efficiency over effectiveness.
 
 
14.
Bureaucracy can be defined as
 
 
15.
Business should look at environmental issues as a no-win situation.
 
 
16.
CEO pay packages, wages, antibrand attitudes, and religion at work are some of the _____ that challenge American managers and employees today.
 
 
17.
CEO, president, COO, and vice president are all titles typical of which level of management?
 
 
18.
Change continually creates both new opportunities and new demands for lowering costs and for achieving greater innovation, quality, and speed.
 
 
19.
Coalition involves groups that act jointly with respect to a set of political initiatives for some period.
 
 
20.
A company can easily avoid environmental issues since the creation and distribution of wealth generates very few by-products.
 
 
22.
Competition is most intense when there are ____ direct competitors, industry growth is slow, and the product or service cannot be differentiated.
 
 
23.
Controlling helps
 
 
24.
Customer focus, leadership, involvement of people, and continual improvement are all principles of
 
 
25.
A customer who purchases products in their finished form is a(n) _____ consumer.
 
 
26.
David, a human resource intern, was given an assignment by his manager. He needed to obtain information from other departments to complete the assignment. But, some departments refused to share information with an intern. David was frustrated because he did not have the power to get the information he needed. In the context of this situation, David's manager made the mistake of
 
 
27.
The economic responsibilities of business include satisfying its obligations to investors.
 
 
28.
Employees, organizations, and communities thrive over the long term when managers apply ethical standards that direct them to act with integrity.
 
 
29.
Environmental uncertainty means that managers do not have enough information about the environment to understand or predict the future.
 
 
30.
Erica works in the human resources department of an insurance company. Therefore, she works in a staff department rather than a line department.
 
 
31.
_____ ethics programs are designed by corporate counsel to prevent legal violations.
 
 
32.
The first step in an ideal decision-making process is to
 
 
33.
The first step in the delegation process, defining the goal, requires a manager to
 
 
34.
The five key elements that make the current business environment different from those of the past include globalization, technological change, the importance of knowledge and ideas, collaboration across organizational boundaries, and an increasingly diverse labor force.
 
 
35.
Forecasts are most useful when the ____ will look radically different from the _____.
 
 
36.
The four fundamental management principles include analyzing current situation, determining objectives, choosing corporate and business strategies, and determining the resources needed to achieve the organization's goals.
 
 
 
 
 
 
 
 
 
 
 

37.
The fundamental success drivers for an organization are product delivery time and risk aversion.
 
 
38.
Hospitals and universities are very expensive to run because of the capital and equipment required. The requirement of personnel such as specialized medical doctors and researchers are also high. Which of the following is this an example of?
 
 
39.
If one does not anticipate change and adapt to it, one's firm will not thrive in a competitive business world.
 
 
40.
If there are many barriers to entry, the threat of new entrants is greater.
 
 
41.
In 1776, _____ discussed control and the principle of specialization with regard to manufacturing workers.
 
 
42.
In a horizontal structure, _____ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.
 
 
43.
In a large batch organization, structure tends to be more
 
 
44.
In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Jennifer the job of criticizing ideas, for the sake of argument, throughout the meeting. Jennifer is playing the role of a
 
 
45.
In brainstorming, group members generate
 
 
46.
Individuals usually make higher-quality decisions when compared to groups, provided there is enough time.
 
 
47.
In general, coordination methods within an organization include standardization, plans, and mutual adjustment.
 
 
48.
In ______ new or additional responsibilities to a subordinate are assigned.
 
 
49.
In the context of ethical systems, which of the following is true of virtue ethics?
 
 
50.
In the context of the classical approaches to management, the systematic management approach led to widespread production efficiency.
 
 
51.
In the context of the planning process, implementation of selected plans will be most successful when
 
 
52.
_____ involves monitoring performance and making necessary changes.
 
 
53.
_____ is a barrier to entry.
 
 
54.
_____ is a classical management approach that attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans.
 
 
56.
_______ is a manager's ability to stimulate people to be high performers.
 
 
57.
_____ is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals.
 
 
58.
__________ is a structure with authority directly related to the three broad levels of the organizational pyramid.
 
 
59.
________ is a technique that helps managers summarize relevant and important facts from the internal and external analyses of an organization in order to formulate strategy.
 
 
60.
_____ is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation.
 
 
61.
_________ is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals.
 
 
62.
_____ is the immediate environment surrounding a firm, including suppliers, customers, rivals, and the like.
 
 
63.
_____ is the process in which different individuals and units perform different tasks.
 
 
 
 
 
 
 
 
 

64.
It is a common perception that business leaders use illegal means to gain competitive advantage or improve their personal positions.
 
 
65.
It is important to keep in mind that _____ offers efficiency when the costs of storing items are greater than the costs of frequent delivery.
 
 
66.
Knowledge management is a set of practices aimed at
 
 
67.
Leading involves
 
 
68.
Life cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water, and land.
 
 
69.
Lillian Gilbreth focused on the human side of management and was interested in how job satisfaction motivated employees.
 
 
70.
Listening to employee suggestions, gaining support for organizational objectives, and fostering an atmosphere of teamwork are all considered _____ skills.
 
 
71.
The main difference between final consumers and intermediate consumers is that the final consumers
 
 
72.
Making decisions about an organization's short-term goals and tactics is known as strategic planning.
 
 
73.
Management could not emerge as a formal discipline even after the industrial revolution ended.
 
 
74.
Managers always operate under conditions of certainty.
 
 
75.
Margaret, a new manager at The Royal Deli, has been asked to focus on the competitive environment of the organization. Which of these factors is among those that Margaret should focus on?
 
 
76.
A meeting was being held at a company, and was attended by five executives. A decision needed to be made about the following year's marketing campaign. Paul, an outspoken and aggressive person, insisted that his ideas be followed since there could not be a better alternative. No one else contributed to the discussion, and Paul's views were accepted. This group discussion suffered from
 
 
77.
Middle-level managers are often referred to as ______ managers.
 
 
78.
The most important innovation is always the product itself and not the way it is delivered.
 
 
79.
One of the fourteen principles of management identified by Henri Fayol was the subordination of individual interest to the general interest.
 
 
80.
Operational managers play a crucial role in an organization because they
 
 
81.
The opportunities for mass production created by the ______ spawned intense and systematic thought about management problems and issues.
 
 
82.
A _________ organization is one in which top management ensures that there is consensus about the direction in which the business is heading.
 
 
83.
Organizations are
 
 
84.
An organization's mission statement describes all of the following except
 
 
85.
The outcome of a situational analysis is the
 
 
86.
A _______ plan is one that focuses on ongoing activities designed to achieve an enduring set of goals.
 
 
87.
Planning involves which of the following?
 
 
88.
______ planning is the process of identifying the specific procedures and processes required at lower levels of an organization.
 
 
 
 
 
 
 
 
 

90.
_____ refers to the principles, rules, and values people use in deciding what is right or wrong.
 
 
91.
Research on sociotechnical systems theory was a precursor to the total quality management (TQM) movement.
 
 
92.
The _____ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
 
 
93.
Satisficing is less likely with groups.
 
 
94.
Some companies, called prospectors, are more likely than others to engage in strategic maneuvering.
 
 
95.
Standing plans are designed to achieve a set of short-term goals.
 
 
96.
The _____ step in effective delegation of work responsibilities is selecting the person to whom one will delegate the work.
 
 
97.
A strategic control system must encourage efficient operations while allowing flexibility to adapt to changing conditions.
 
 
98.
__________ strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.
 
 
99.
A supervisor of a retail outlet is facing an ethical dilemma. She uses the formal process of ethical decision making to resolve the issue. Which of the following steps will she begin with?
 
 
100.
A team leader's job is less challenging than frontline and other types of managers' jobs because team leaders always have direct control over team members.
 
 
101.
To avoid fines and criminal prosecution, it is a common perception that business leaders use
 
 
102.
To be effective, an organization's strategic plans should focus on
 
 
103.
To be effective, goals should be measurable, specific, attainable, relevant, and time-bound.
 
 
104.
To be successful, partners in a strategic alliance must pay attention to human relationships.
 
 
105.
Top-level managers are also called tactical managers since they must translate the general goals into specific objectives and activities.
 
 
106.
Two basic ethical ideals underpin the Caux Principles for Business. They are
 
 
107.
Unethical behavior happens only in a business environment.
 
 
108.
A university has just formed a board of trustees and invited 25 of its wealthiest alumni to join the board. Which of the following is being adopted by the university?
 
 
109.
The values, goals, skills, and attitudes of managers and workers in an organization are examples of
 
 
110.
The ________ was passed by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
 
 
111.
When a manager treats employees as lazy, unmotivated, and in need of tight supervision, the employees eventually meet the manager's expectations by acting that way. According to Douglas McGregor, this is known as
 
 
112.
When an industry matures, profits drop.
 
 
113.
When a problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships, a _____ decision may be taken.
 
 
114.
When faced with an ethical issue in business, people must rely on
 
 
115.
Which is the most basic human need, as suggested by Abraham Maslow?
 
 
 
 
 
 
 
 
 

116.
Which of Henri Fayol's 14 principles of management refers to keeping communications within the chain of command?
 
 
117.
Which of the following goals of transcendent education is described as speaking out against unethical actions?
 
 
118.
Which of the following is a characteristic of a mechanistic organization?
 
 
119.
Which of the following is a drawback of the bureaucratic approach to management?
 
 
120.
Which of the following types of information is conveyed by a traditional organization chart?
 
 
 

1.
 
 
The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance is known as:
2.
 
 
In the context of the levels of planning, an organization's strategic, tactical, and operational goals and plans must be _____ in order to be fully effective.
3.
 
 
In the context of total quality management, which of the following is one of W. Edwards Deming's "14 points" of quality?
4.
 
 
Managers who use the method of optimizing to make their decisions will attempt to choose:
6.
 
 
David, a human resource intern, was given an assignment by his manager. He needed to obtain information from other departments to complete the assignment. But, some departments refused to share information with an intern. David was frustrated because he did not have the power to get the information he needed. In the context of this situation, David's manager made the mistake of:
7.
 
 
In the context of delegation, a problem faced by a subordinate in carrying out a delegated task is:
8.
 
 
The psychological bias known as illusion of control refers to:
9.
 
 
Bolton Inc., a chain of pizzerias, periodically compares the quality of its food and service with its competitors in order to continually improve its performance. This corporate strategy is known as:
10.
 
 
The moral principles and standards that guide behavior in the world of business are known as:
11.
 
 
In an organization, _____ may be valuable when departments have different priorities or conflicting goals, which need to be mediated by top management.
12.
 
 
In a(n) _____ organization, top managers make all the decisions and pass them down to lower levels for implementation.
13.
 
 
In a(n) _____ organization, important decisions usually are made at the top.
14.
 
 
Which of the following goals of transcendent education is described as thinking not just in terms of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions?
15.
 
 
The first step in the delegation process, defining the goal, requires a manager to:
16.
 
 
Which of the following is true of integrity-based ethics programs in business organizations?
17.
 
 
The most effective strategy that can be adopted by strategy managers is one that:
18.
 
 
_____ ethics programs are designed by corporate counsel to prevent legal violations.
19.
 
 
According to the _____ plan of Neon Inc., if expansion to new markets in Australia does not materialize, the company will strive for expansion in Asia.
20.
 
 
Chang prefers gymnastics to music. However, he agrees to attend music lessons because his parents want him to become a musician. According to Kohlberg's model of cognitive moral development, Chang resides in the _____ stage.
21.
 
 
Amelie conforms to the norms established by her church and ensures that her behavior always meets the expectations set forth by her parents and the church. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.
22.
 
 
An approach to coordination that involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone is known as:
23.
 
 
In the context of organizational integration, _____ refers to a situation when interdependent units are required to meet deadlines and objectives that contribute to a common goal.
24.
 
 
A(n) _____ strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.
25.
 
 
Teal Inc., a manufacturer of designer journals and notebooks, switched to using recycled paper to manufacture its products. It also changed the design such that the book covers and spiral cords used as spines were not made out of plastic. The changes made by Teal Inc., are an example of:
26.
 
 
Which of the following is true of strategic control systems?
27.
 
 
Behaving ethically requires not just moral awareness and moral judgment but also moral character. When it is very hard to do the right thing, the quality that is required the most is _____.
28.
 
 
A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to:
29.
 
 
Unicorn Sports Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which approach to departmentalization does the company follow?
30.
 
 
In _____ organizations, more decisions are made at lower levels of management.
 
 
 
 
 
 
 

31.
 
 
The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves:
32.
 
 
The assignment of new or additional responsibilities to a subordinate is referred to as:
33.
 
 
In the context of horizontal structure of a firm, subdividing an organization into smaller units is known as:
34.
 
 
The primary focus of compliance-based ethics programs is on:
35.
 
 
In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Jennifer the job of criticizing ideas, for the sake of argument, throughout the meeting. Jennifer is playing the role of a:
36.
 
 
In an attempt to make a conflict between two employees less personal and emotional, their manager instructs them to approach the same problem from a different viewpoint. They have a structured debate and come to a conclusion that suits both employees. This is an example of using the _____ approach.
37.
 
 
Resources are a source of competitive advantage only when they are:
38.
 
 
An organization with departmentalization that groups units around products, customers, or geographic regions is known as a:
39.
 
 
The assignment of different tasks to different people or groups in an organization is known as:
40.
 
 
A meeting was being held at a company, and was attended by five executives. A decision needed to be made about the following year's marketing campaign. Paul, an outspoken and aggressive person, insisted that his ideas be followed since there could not be a better alternative. No one else contributed to the discussion, and Paul's views were accepted. This group discussion suffered from:
41.
 
 
In the context of making decisions in a group, when a strong leader makes his or her preferences clear, and the result is the same as it would have been if the leader had made the decision alone, it leads to a situation known as _____.
42.
 
 
Identify a characteristic feature of matrix organizations.
43.
 
 
The goal of _____ is to create sustainable economic development and improve the quality of life worldwide for all organizational stakeholders.
44.
 
 
The _____ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
45.
 
 
Which of the following is an advantage of functional departmentalization?
46.
 
 
According to _____, an ethical system, individual self-interest is the actual motive of all conscious action.
47.
 
 
The notion of _____, an ethical system, is similar to Adam Smith's concept of the invisible hand in business.
48.
 
 
In the context of a transcendent education, _____ refers to feeling one's decisions as potential victims might feel them, to gain wisdom.
49.
 
 
In the context of the business costs of ethical failures, which of the following costs is incurred at Level 3?
50.
 
 
A company recently made changes to its organizational structure. While deciding upon the changes to be implemented, the company invited many employees to discuss the issue with the senior management. This enabled the employees to hear the relevant arguments both for the chosen alternative and against the rejected alternatives. An advantage of using employees in the group discussion was that:
51.
 
 
Leaders of decision-making groups should:
 

52.
 
 
In the context of corporate social responsibility, _____ responsibility involves meeting other societal expectations that are not written as law.
53.
 
 
Alia, a graphic artist at an advertising firm, realizes that the head designer, Ryan, has been copying designs from the Internet and passing them off as his own. Alia informs the marketing head about this, which leads to Ryan getting fired. However, after this event, Alia is ostracized by her co-workers. This indicates that the organization has a poor:
54.
 
 
The _____ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
55.
 
 
CEO pay packages, wages, antibrand attitudes, and religion at work are some of the _____ that challenge American managers and employees today.
56.
 
 
Haseen, an employee in a company, is facing a situation in which she has to choose between going along with her colleagues and filling out inaccurate feedback against a new employee or informing her manager about the malpractice. In this context, Haseen is faced with a(n):
57.
 
 
A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called a(n):
58.
 
 
In the context of business ethics, which of the following is true of an ethical leader?
59.
 
 
Gaia's Spa believes in meeting societal expectations whether or not mandated by law. It only uses organic products that are environment friendly. At which level of the pyramid of corporate social responsibility is Gaia's operating?
60.
 
 
_____ refers to the moral principles and standards that guide the behavior of an individual or group.
61.
 
 
Which stage of the planning process is Jekyll Corp. involved in if it is assessing how well alternative plans meet high-priority goals while considering the cost of each initiative and the likely investment return?
62.
 
 
A formal decision-making process has six stages. Which of the following is one of these stages?
63.
 
 
What is the most important purpose of an ethical decision-making process in terms of recognizing moral impacts?
64.
 
 
In the context of the vertical structure of a firm, a wide span of control builds a _____ organization with few reporting levels.
65.
 
 
In the context of business ethics, which of the following principles is helpful in making an ethics code effective?
66.
 
 
In the context of organizational integration, the presence of rules and regulations governing how people in the organization interact is known as:
67.
 
 
_____ refer(s) to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.
68.
 
 
In a _____ organization, jobs (and departments) are specialized and grouped as production, marketing, human resources, research and development, finance, accounting, and so forth based on the skills they require.
69.
 
 
In the context of a transcendent education, _____ refers to learning how to give as well as take, to others in the present as well as to future generations.
71.
 
 
In the context of the planning process, _____ are the targets or ends a manager wants to reach.
72.
 
 
In the context of the business costs of ethical failures, Level 1 costs that are less damaging and get more executive attention are the costs of:
73.
 
 
Which of the following is true of brainstorming?
74.
 
 
A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus is known as:
 

75.
 
 
In the context of the levels of planning, the formal planning model is _____, with top-level strategies flowing down through the levels of the organization into more specific goals and plans.
76.
 
 
In the context of technology configurations, which of the following is true of large batch technologies?
77.
 
 
Authority is directly related to the three broad levels of the organizational pyramid, commonly known as _____.
78.
 
 
Veronica recently accepted a job with a reputed bank as an internal auditor. She found that her job was quite different from her previous internships. Her new company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Veronica's organization has a:
79.
 
 
A type of organization in which top management ensures that there is consensus about the direction in which the business is heading is known as a:
80.
 
 
In the context of integration, which of the following is true of the findings of Lawrence and Lorsch?
81.
 
 
The outcome of a situational analysis is the:
82.
 
 
The manager of a restaurant noticed that the number of customers in the evening was decreasing. She promptly ordered the chef to revise the evening menu. Later, customer feedback indicated that the problem was not the menu but poor service from the waitstaff. The manager's decision to have the menu revised suggests that she failed to:
83.
 
 
The first step in an ideal decision-making process is to:
84.
 
 
In the context of formal decision making, which of the following is indicated by negative feedback?
85.
 
 
In the context of the levels of planning, typical strategic goals involve:
86.
 
 
Which of the following is true of just-in-time (JIT)?
87.
 
 
An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) _________ ethics program.
88.
 
 
A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Since the company followed a(n) _____ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people.
89.
 
 
Which of the following goals of transcendent education is described as speaking out against unethical actions?
90.
 
 
Which of the following statements about delegation of responsibility and authority is true?
91.
 
 
Which of the following is an advantage of delegation?
92.
 
 
Which of the following statements about matrix organization is true?
93.
 
 
In the context of ethical systems, which of the following is true of virtue ethics?
 

94.
 
 
In the context of business ethics and the law, which of the following statements is true regarding the Sarbanes-Oxley Act?
95.
 
 
In the presence of which of the following conditions should the span of control be wide?
96.
 
 
In the context of technology configurations, a small, local restaurant with one cook, two servers, and one cashier is an example of a:
97.
 
 
Two basic ethical ideals underpin the Caux Principles for Business. They are:
98.
 
 
An advantage in using a group for decision making is that it:
99.
 
 
An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement is known as:
100.
 
 
An organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights is known as a:
101.
 
 
In the context of corporate social responsibility, _____ responsibilities are to obey local, state, federal, and relevant international laws.
102.
 
 
In the context of the vertical structure of a firm, authority refers to the:
103.
 
 
The process of evaluating all inputs and outputs, through the entire "cradle-to-grave" journey of a product, in order to determine the total environmental impact of its production and use is known as:
104.
 
 
In the context of horizontal structure of a firm, _____ are those that have responsibility for the principal activities of the firm.
105.
 
 
In the context of horizontal structure of a firm, _____ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.
106.
 
 
According to the Caux Principles for Business, the ethical ideal of kyosei means:
107.
 
 
In the context of the levels of planning, strategic goals are:
108.
 
 
According to Professor Edward Freeman, which of the following is true of ethics and corporate responsibility?
109.
 
 
Identify a true statement about delegation.
110.
 
 
In the context of the planning process, which of the following statements is true of the step that involves monitoring and controlling performance?
111.
 
 
Which of the following is a disadvantage of a matrix organization?
112.
 
 
The production of both high-volume and high-variety products at the same time is referred to as:
113.
 
 
In the context of making a choice, _____ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.
114.
 
 
Who among the following persons said, "The social responsibility of business is to increase profits"?
115.
 
 
A _____ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.
116.
 
 
Nina, a manager, is considering reducing the workforce to cut down on costs. She realizes that this decision will have a huge impact on her employees. In the context of making an ethical decision, this stage is known as:
 

117.
 
 
In the context of making ethical decisions, the strength and persistence to act in accordance with one's ethics despite the challenges is known as:
118.
 
 
In the context of making ethical decisions, knowing what actions are morally defensible is referred to as:
119.
 
 
Diya uses certain principles, rules, and values such as honesty, compassion, and integrity in her daily life to determine what is right or wrong. Which of the following does she employ when making decisions?
120.
 
 
_____ refers to the principles, rules, and values people use in deciding what is right or wrong.
121.
 
 
Which of the following is true of managerial decision making?
122.
 
 
Which of the following goals of transcendent education is described as viewing success not merely as personal gain but as a common victory?
123.
 
 
Corporate social responsibility refers to:
125.
 
 
The process of identifying the specific procedures and processes required at lower levels of an organization is known as:
126.
 
 
In the context of the fundamentals of organizing, which of the following depicts the positions in a firm and the way they are arranged?
127.
 
 
Which of the following is a characteristic of a high-involvement organization?
128.
 
 
Which of the following is true of Milton Friedman's dictum about the social responsibility of business?
129.
 
 
In the context of technology configurations, which of the following is true of continuous process technologies?
130.
 
 
Which of the following conditions should be met for the lean manufacturing approach to result in more effective operations?
131.
 
 
In the context of corporate social responsibility, _____ includes additional behaviors and activities that society finds desirable and that the values of the business support.
132.
 
 
In the context of corporate social responsibility, supporting community projects and making charitable contributions are examples of _____.
133.
 
 
Fire Inc., a sports brand, gives a portion of its profits to the local sports club that offers free coaching to children from lower income groups. This donation to a community organization is an example of:
134.
 
 
According to Kohlberg's model of cognitive moral development, people in the _____ stage make decisions based on concrete rewards and punishments and immediate self-interest.
135.
 
 
Nate, a teenager, helps his grandmother by bringing in her weekly supplies and taking out the garbage, only if he receives a weekly allowance from his parents. According to Kohlberg's model of cognitive development, he resides in the _____ stage.
136.
 
 
According to Kohlberg's model of cognitive moral development, people in the _____ stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.
137.
 
 
Jade, a scientist working in the research department of Corals Cosmetics, is asked to not report the ill-effects of using a new product that Corals has decided to launch. Jade's boss offers a hike and a permanent job in exchange for skipping a few details in the report. Jade refuses to do this and asks him to withhold the product from entering the market. According to Kohlberg's model of cognitive moral development, Jade resides in the _____ stage.
 

138.
 
 
In the context of the fundamentals of organizing, coordination refers to:
139.
 
 
Which of the following approaches to departmentalization requires proper management of all the issues surrounding decentralization and delegation for it to be effective?
140.
 
 
True Ketchup Inc. manufactures and distributes sauces, pickles, and spices. The company has separate divisions responsible for developing and marketing each item. Thus, the company has adopted a _____ approach to departmentalization.
142.
 
 
Some organizations have platforms that allow employees to provide anonymous feedback about the work and behavior of colleagues and seniors. What is the primary purpose of such methods?
143.
 
 
Illusion of control, discounting the future, and framing effects are examples of:
144.
 
 
Kaplan Corp. is evaluating the purchase of a small firm, Pahl Corp., which manufactures ornamental gadgets, products involving advanced technology. These products are expected to revolutionize the home construction industry. Pahl has only a minor share of this growing market, but the market is expected to grow rapidly. In which of the following categories of business in the BCG matrix would this firm be placed?
145.
 
 
Julia is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Julia is most likely searching for a(n) _____ solution to her problem.
146.
 
 
In the context of generating alternative solutions during the decision-making process, _____ solutions must be designed for specific problems.
147.
 
 
In the context of resources and core capabilities, the tangible assets of an organization include:
148.
 
 
In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to:
149.
 
 
Akins Corp. had focused only on alcoholic beverages for the last two decades. Now, the company is considering entering the soft drink market. Which of the following corporate strategies will most likely be adopted by the company?
150.
 
 
Nicki usually makes decisions on the basis of what her friends would expect her to do. Which ethical system do Nicki's actions reflect the most?
151.
 
 
Which ethical system acknowledges the existence of different ethical viewpoints?
152.
 
 
_____, an ethical system, defines ethical behavior based on the opinions and behaviors of associated people.
153.
 
 
_____, an ethical system, defines ethical behavior according to how others behave.
154.
 
 
The assignment of a task that an employee is supposed to carry out is known as:
155.
 
 
In the context of managerial decision making, when one can estimate the likelihood of various consequences but still does not know with certainty what will happen, he or she is facing _____.
156.
 
 
The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.
157.
 
 
Pat has to select the right paper clips to purchase for her office. She looks at the office supply catalog and picks the first one that is priced reasonably. Which method of making a decision does she use?
158.
 
 
When a group accepts an alternative without taking the time or effort to explore better alternatives, the group has reached a(n) _____ decision.
 

159.
 
 
According to the ethical system of utilitarianism, which of the following is true?
160.
 
 
In which step of the planning process do managers identify the priorities and trade-offs among goals and plans?
161.
 
 
The _____ model is a theory of corporate social responsibility that holds that managers are agents of stockowners whose primary objective is to maximize profits.
162.
 
 
A plan to integrate employees into a new payroll system, assuming that it is not likely to be repeated in the foreseeable future, is an example of a _____ plan.
163.
 
 
One of the most important contributions to total quality management has been the introduction of statistical tools to analyze the causes of product defects, in an approach called:
164.
 
 
The number of subordinates who report directly to an executive or supervisor is known as the:
165.
 
 
A process in which different individuals and units perform different tasks is known as:
166.
 
 
In the context of organizational integration, establishing common routines and operating procedures that apply uniformly to everyone is known as:
167.
 
 
A plan that focuses on ongoing activities designed to achieve an enduring set of goals is called a _____.
168.
 
 
In the context of business ethics, which of the following statements regarding ethics codes is true?
169.
 
 
First Health Inc. and Quadra Software Solutions Inc. have decided to share resources to produce a meal planning program for use at home. The two firms have decided to work together on the project since they cannot develop the project solely with their individual resources. Both organizations will own the resulting program. This effort is known as a:
170.
 
 
Which of the following is true of the strategic goals of an organization?
171.
 
 
The level of planning involving the longest time horizon, usually ranging from three to seven years, is:
172.
 
 
Which of the following is true of the strategic vision of an organization?
173.
 
 
Economic growth and development that meet an organization's present needs without harming the ability of future generations to meet their needs is known as:
174.
 
 
A technique that helps managers summarize relevant and important facts from the internal and external analyses of an organization in order to formulate strategy is known as:
175.
 
 
Which of the following is one of the four levels of managers who use planning?
176.
 
 
The process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of an organization is known as:
177.
 
 
In the context of a firm's vertical structure, narrow spans of control build a(n) _____ organization with many reporting levels.
 

179.
 
 
In the context of the planning process, implementation of selected plans will be most successful when:
180.
 
 
Which of the following is true of flexible factories?
181.
 
 
In the context of organizational agility, which of the following is true of learning organizations?
182.
 
 
In the context of corporate ethics programs, which of the following is a function of ethics committees?
183.
 
 
Which of the following is true of compliance-based corporate ethics programs?
184.
 
 
Which of the following is true of effective delegation?
185.
 
 
In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking, and behavior when:
186.
 
 
_____ is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation.
187.
 
 
According to Robert Giacalone, a(n) _____ education teaches students to leave a legacy that extends beyond the bottom line.
188.
 
 
Palin Corp., an American company, is trying to decide whether to open its first international branch in Europe or Asia. The managers of the company are operating under a condition of _____.
189.
 
 
In the context of managerial decision making, the state that exists when decision makers have insufficient information is known as:
190.
 
 
A supervisor of a retail outlet is facing an ethical dilemma. She uses the formal process of ethical decision making to resolve the issue. Which of the following steps will she begin with?
191.
 
 
Which of the following is true of unethical corporate behavior?
192.
 
 
_____ is an ethical system, which states that all people should uphold certain values that society needs to function.
193.
 
 
Tia had differences of opinion with her boss, who discriminated against employees based on their ethnicity and social background. In one instance, her boss falsely accused a member of a minority race of fraud. Tia took this up to the top management as she believed all members of the organization should uphold some values for it to function well. Tia was following the ethical system known as:
194.
 
 
Gallaway Inc. recently decided to expand from its original base in real estate to several wide-ranging industries such as trucking, lawn mower manufacturing, and catering. This corporate strategy is known as:
195.
 
 
Caring, being honest, showing loyalty, being fair, and acting with integrity are all examples of:
196.
 
 
Discounting the future refers to:
197.
 
 
John Rawls, a philosopher, maintained that only a person unaware of his or her own identity can make a truly ethical decision. This thought experiment is based on:
199.
 
 
Which of the following may prevent the creation of a business climate conducive to unethical behavior?
 

200.
 
 
In the context of the BCG matrix, a star represents a company:
201.
 
 
Which of the following types of information is conveyed by a traditional organization chart?
 

1.
An advantage in using a group for decision making is that it
 
 
2.
A company recently made changes to its organizational structure. While deciding upon the changes to be implemented, the company invited many employees to discuss the issue with the senior management. This enabled the employees to hear the relevant arguments both for the chosen alternative and against the rejected alternatives. An advantage of using employees in the group discussion was that
 
 
3.
The first step in an ideal decision-making process is to
 
 
4.
The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves
 
 
5.
If an organization's mission statement describes the organization as it currently operates then its strategic vision points to the
 
 
6.
In order to reduce production costs, Seuss Inc., an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as
 
 
7.
In the context of making a choice, _____ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.
 
 
8.
In the context of making decisions in a group, when a strong leader makes his or her preferences clear, and the result is the same as it would have been if the leader had made the decision alone, it leads to a situation known as
 
 
9.
In the context of managerial decision making, when one can estimate the likelihood of various consequences but still does not know with certainty what will happen, he or she is facing
 
 
10.
In the context of planning, a different ___________ plan is created.
 
 
11.
In the context of resources and core capabilities, the tangible assets of an organization include
 
 
12.
In the context of the BCG matrix, a star represents a company
 
 
13.
In the context of the levels of planning, an organization's strategic, tactical, and operational goals and plans must be _____ in order to be fully effective.
 
 
14.
In the context of the levels of planning, the formal planning model is _____, with top-level strategies flowing down through the levels of the organization into more specific goals and plans.
 
 
15.
In the context of the levels of planning, typical strategic goals involve
 
 
16.
In the context of the planning process, which of the following statements is true of the step that involves monitoring and controlling performance?
 
 
17.
Leaders of decision-making groups who want to encourage constructive conflict should
 
 
18.
The manager of a restaurant noticed that the number of customers in the evening was decreasing. She promptly ordered the chef to revise the evening menu. Later, customer feedback indicated that the problem was not the menu but poor service from the wait staff. The manager's decision to have the menu revised suggests that she failed to
 
 
19.
The _____ matrix is not a substitute for management judgment; it helps managers of businesses evaluate their strategy alternatives.
 
 
20.
A meeting was being held at a company, and was attended by five executives. A decision needed to be made about the following year's marketing campaign. Paul, an outspoken and aggressive person, insisted that his ideas be followed since there could not be a better alternative. No one else contributed to the discussion, and Paul's views were accepted. This group discussion suffered from
 
 
21.
Pat has to select the right paper clips to purchase for her office. She looks at the office supply catalog and picks the first one that is priced reasonably. Which method of making a decision does she use?
 
 
22.
______ planning involves a process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of an organization.
 
 
23.
A plan to integrate employees into a new payroll system, assuming that it is not likely to be repeated in the foreseeable future, is an example of a _____ plan.
 
 
24.
Resources are a source of competitive advantage only when they are
 
 
25.
Sager Inc., a manufacturing company, developed a strategic plan that assumed improved growth in its industry. Additionally, it generated several _____ for different economic settings. When recession started, Sager Inc. quickly implemented the plan based on those conditions. As a consequence, it survived more easily than other firms in the industry.
 
 
26.
Submarines Inc., a chain of sub shops, periodically compares the quality of its food and service with its competitors in order to continually improve its performance. This corporate strategy is known as
 
 
27.
To be effective, an organization's strategic plans should focus on
 
 
28.
Which of the following is true of brainstorming?
 
 
29.
Which of the following is true of the strategic goals of an organization?
 
 
 
 
 
 
 
 
 

30.
Which of the following is true of the strategic vision of an organization?
 
 
 

1.
1. If there are many barriers to entry, the threat of new entrants is greater.
 
 
2.
2. Environmental uncertainty means that managers do not have enough information about the environment to understand or predict the future.
 
 
3.
3. Benchmarking is the process comparing an organization's practices and technologies with those of other companies.
 
 
4.
4. Entering a new market or industry with existing expertise is known as divestiture.
 
 
5.
5. Some companies, called prospectors, are more likely than others to engage in strategic maneuvering.
 
 
7.
7. Which of the following is not one of the forces in Porter's model of an organization's competitive environment?
 
 
8.
8. Margaret, a new manager at The Royal Deli, has been asked to focus on the competitive environment of the organization. Which of these factors is among those that Margaret should focus on?
 
 
9.
9. A popular low-cost airline, Parson Corp., has gone out of business. Although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. Which component of the competitive environment does this illustrate?
 
 
10.
10. ______ are conditions that prevent new companies from setting foot in an industry.
 
 
11.
11. Which of the following is a common barrier to entry?
 
 
12.
12. A customer who purchases products in their finished form is a(n) _____ consumer.
 
 
13.
13. Hospitals and universities are very expensive to run because of the capital and equipment required. The requirement of personnel such as specialized medical doctors and researchers are also high. Which of the following is this an example of?
 
 
14.
14. The main difference between final consumers and intermediate consumers is that the final consumers
 
 
15.
15. Wright Bank Corp. utilizes the janitorial services of Rob's Scrub-All Corp. to keep their buildings clean. Rob's provides all the necessary cleaning supplies, training, background security checks (since the crew works after hours), and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. This expense effectively limits the bank to utilizing only Rob's services. Which of the following is being incurred by Wright Bank?
 
 
16.
16. If a consumer changes suppliers, they are faced with
 
 
17.
17. Which of the following is an intermediate consumer?
 
 
18.
18. Which of the following is a final consumer?
 
 
19.
19. _____ means that managers do not have enough information about the surroundings needed to understand or predict the future.
 
 
21.
21. In an attempt to improve customer service, Cobalt Toys Inc. decided to assign a team to investigate the kinds of services offered by competing companies. The team discovered that a smaller company, Nuance Games Corp., seemed to have outstanding customer service. The team then determined the major differences between the two companies and developed a plan to incorporate the best elements of Nuance Games into Cobalt Toys. Which of the following is being implemented by Cobalt Toys?
 
 
22.
22. What method is used to predict exactly how some variable or variables will change in the future?
 
 
23.
23. _____ is the information necessary to decide how to best manage the competitive environment.
 
 
24.
24. _____ is the process of sharing authority with employees to enhance their confidence in their ability to perform their jobs and contribute to an organization.
 
 
25.
25. In ______ supplies are created of excess resources in case of unpredictable needs.
 
 
26.
26. Clara owns a small gift shop in South Carolina. She hopes the economy will rebound this fall as she has to order her Christmas merchandise and other holiday gifts in February. She wants to make sure she has enough goods for the surge in sales that the holiday season usually brings to her retail store. Here, Clara is using _____ to be sure she has enough gifts for those extra customers that she hopes will bear the economic woes and shop for holiday presents.
 
 
27.
27. The growth of contingent workers in the U.S. labor force due to unpredictable labor demand is an illustration of
 
 
28.
28. _____ is leveling normal fluctuations at the boundaries of an environment.
 
 
30.
30. _____ are approaches that an organization that acts on its own uses to change some aspect of its current environment.
 
 
31.
31. Domain selection, diversification, mergers or acquisitions, and divestitures are all examples of
 
 
32.
32. Bayne Corp. announced that it was selling off its pork division in order to realign itself more competitively in the marketing of its other products. This is an example of managing the task environment through
 
 
33.
33. Identify the environmental factor that contributes to an attractive environment for firms.
 
 
34.
33. Which of the following is a way of redefining the boundaries of an organization's environment?
 
 
35.
34. _____ is an organization's conscious efforts to change the boundaries of its task environment.
 
 
36.
35. _____ occurs when a company sells one or more businesses.
 
 
38.
72. Which of the following is a way of adapting to the external environment?
 
 
39.
73. _____ are the strongly held and taken-for-granted beliefs that guide behavior in a firm.
 
 
 
 
 
 
 
 
 

40.
74. _____ is leveling normal fluctuations at the boundaries of the environment.
 
 
41.
75. During the holiday season, Maria's Department Store works with a contracted employment agency to bring extra workers on board to handle overflow business, and extra duties such as wrapping presents. Maria's is using ________ during these rush times.
 
 
42.
76. A company uses _____ when it acts on its own to change some aspect of its current environment.
 
 
43.
77. What is meant by adapting at the core?
 
 
44.
79. ______ is exploiting a distinctive competence or improving efficiency for competitive advantage.
 
 
45.
81. An organization's _____ refers to all relevant forces inside a firm's boundaries, such as its managers, employees, resources, and organizational culture.
 
 
46.
82. _____ is the set of assumptions about a company and its goals and practices that members of the company share.
 
 
47.
83. The five-by-eight inch card with one rule on it—Use good judgment in all situations—that employees at Nuon Corporation receive along with the employee handbook tells the employees a great deal about their company's
 
 
48.
84. _____ are the components of an organization that can be seen and heard, such as office layout, dress, orientation, stories, and written material.
 
 
49.
85. Which of the following is the first level of organizational culture?
 
 
50.
86. _____ are the underlying qualities and desirable behaviors that are important to an organization.
 
 
51.
87. Which of the following is the deepest level of organizational culture?
 
 
52.
95. Which of the following elements of the macroenvironment was part of Cathy's findings (in Scenario A)?
 
 
53.
_____ includes searching for and sorting through information about the environment.
 
 
 

1.
According to _____, bureaucratic positions discourage specialized skills because they foster subjective judgments by managers.
 
 
2.
According to the contingency perspective, there is(are) ______best way(s) to manage and organize.
 
 
3.
According to the five levels of needs suggested by Abraham Maslow, which is the most advanced need from among the given options?
 
 
4.
_____ are methods for adapting the technical core to changes in an environment.
 
 
5.
Around 1436, the _____ standardized production through the use of an assembly line.
 
 
6.
As a manager at Carrel Corp., Derek spends much of his time coaching young managers and making sure that any required information reaches all the branches for them to be successful. Derek would best be described as a(n)
 
 
7.
As the success of modern business so often depends on the knowledge used for innovation and the delivery of services, organizations need to manage that
 
 
8.
Building a dynamic organization is the goal of which function of management?
 
 
9.
A centralized, organic approach with direct supervision for managing uncertainty is ideal for which of the following environments?
 
 
10.
CEO, president, COO, and vice president are all titles typical of which level of management?
 
 
11.
The classical approaches as a whole were criticized because
 
 
12.
The Company is experiencing an increase in competition, and at the same time they are building more production facilities in Southeast Asia. In this scenario, the top management team is most likely to
 
 
14.
Emotional intelligence involves the skills of all of the following except
 
 
15.
The five-by-eight inch card with one rule on it—Use good judgment in all situations—that employees at Nuon Corporation receive along with the employee handbook tells the employees a great deal about their company's
 
 
16.
_____ founded the "Society of Organizational Learning."
 
 
17.
Frontline managers often have titles such as
 
 
18.
The growth of contingent workers in the U.S. labor force due to unpredictable labor demand is an illustration of
 
 
19.
A hierarchical organizational structure values _____ and assumes that individuals will comply with the organizational mandates when roles are stated formally and enforced through rules and procedures.
 
 
20.
Identify the environmental factor that is formed by an attractive environment.
 
 
21.
Identify the manager's role that involves searching for new business opportunities and initiating new projects to create change.
 
 
22.
In smaller entrepreneurial firms and even in more adaptive larger firms, managers
 
 
23.
In the context of the classical approaches to management, _____ did not address all the issues faced by 19th-century managers, but it tried to raise managers' awareness about the most pressing concerns of their job.
 
 
24.
_____ is a contemporary management approach that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes.
 
 
25.
_______ is coordinating the human, financial, physical, informational, and other resources.
 
 
26.
______ is exploiting a distinctive competence or improving efficiency for competitive advantage.
 
 
27.
_____ is independent action to improve relations with competitors.
 
 
28.
_____ is leveling normal fluctuations at the boundaries of the environment.
 
 
29.
A _____ is powerful if a buyer has few other sources of supply or if the supplier has many other buyers.
 
 
30.
_____ is the information necessary to decide how to best manage the competitive environment.
 
 
31.
_____ is the process of sharing authority with employees to enhance their confidence in their ability to perform their jobs and contribute to an organization.
 
 
32.
_________ is the set of practices aimed at discovering and harnessing an organization's intellectual resources, fully utilizing the intellects of the organization's people.
 
 
33.
_____ is the set of skills composed of understanding oneself, managing oneself, and dealing effectively with others.
 
 
34.
_________ management emphasized internal operations because managers were concerned primarily with meeting the explosive growth in demand brought about by the industrial revolution.
 
 
35.
Managers rely on the methods of qualitative management as the ______ approach to decision making.
 
 
36.
_____ means that managers do not have enough information about the surroundings needed to understand or predict the future.
 
 
37.
The opportunities for mass production created by the ______ spawned intense and systematic thought about management problems and issues.
 
 
38.
_____ refer(s) to reductions in the average cost of a unit of production as the total volume produced increases.
 
 
39.
The _____ refutes universal principles of management by stating that a variety of factors, both internal and external to the firm, may affect an organization's performance.
 
 
40.
Scenario A: Use the following information to answer the following questions.
Alex, an employee at Madill Corp., was facing a problem with a coworker. He decided to report his coworker's misbehavior to the department manager, instead of his immediate supervisor. However, he was instructed to consult his supervisor first and solve the matter, if possible. He was advised to raise the matter with the higher authorities only if his supervisor could not settle it.

In the context of Scenario A, which of the following is true of the organizational structure of Madill Corp.?
 
 
 

41.
Scenario A: Use this scenario to answer the four questions that follow.
Cathy's Jewelry Inc. is a store that specializes in antique jewelry. In analyzing the environment, Cathy has uncovered several interesting findings: (1) Cathy has recently purchased more inventory than in the past. Her customers are selling most of their jewelry because their children are not interested in this type of jewelry. Also, these customers would prefer to liquidate their jewelry to help them with their daily expenses since they no longer wear most of it. (2) Cathy has recently discovered that her business is in a historical preservation district, so as she considers remodeling the shop, she has found she must pay attention to the guidelines set forth in the governing laws. (3) Cathy's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern jewelry, so the customer base to which she sells is shrinking. (4) Cathy has been suggested to investigate selling her inventory via the Internet, but she does not own (or understand how to use) a computer. (5) In reading a survey of regional business, Cathy has discovered that there are no other antique jewelry stores within a 200 mile radius.

Finding 2 in Scenario A is most closely associated with which element of the macroenvironment?
 
 
42.
Scenario B: Use the following information to answer the following questions.
Amelie, a manager in a company, had to complete an important project that had a "near impossible" deadline. Instead of assuming that offering financial incentives would be the best way to get the work done, she devoted some time to understand what motivated each of her team members to work harder. She found that some people craved recognition more than money, whereas others wanted more influence in the organization. With this information, she was able to offer the right incentive to each person. As a result, her team was able to meet the deadline.

In the context of Scenario B, what theory is Amelie using to manage?
 
 
43.
Scenario B: Use the following information to answer the following questions.
Amelie, a manager in a company, had to complete an important project that had a "near impossible" deadline. Instead of assuming that offering financial incentives would be the best way to get the work done, she devoted some time to understand what motivated each of her team members to work harder. She found that some people craved recognition more than money, whereas others wanted more influence in the organization. With this information, she was able to offer the right incentive to each person. As a result, her team was able to meet the deadline.

In the context of Scenario B, which of the following approaches to management does Amelie subscribe to?
 
 
44.
Scenario B: Use the information in the following paragraph to answer the questions that follow.
You and a fellow investor are investigating the possibility of starting a new casino in Los Angeles. It has been your lifelong dream. You have won a lottery and are trying to decide if this is what you want to do with your prize money. You decide to do an analysis of the competitive environment. After your analysis, you discover several important issues. First, it will cost most of your lottery winnings to finance a casino in Los Angeles. Second, it will be difficult to attract new customers because they have so many choices available to them in Los Angeles and the surrounding small towns. Finally, the competition in the casino industry is considered "fierce" by industry analysts, and this is frightening to someone who has never worked in the casino industry.

The analysis of the competitive environment (in Scenario B) that you have conducted utilized the work of
 
 
45.
Scenario C: Use the following information to answer the following questions.
Janice, an intelligent, enthusiastic, and hardworking person, recently joined a company. Despite working well, she was constantly yelled at by her manager. In addition, her manager expected her to submit a report of her activities at the end of each day. He also checked on Janice at frequent intervals during the day to see how her work was progressing. After a few months of such treatment, Janice began to lose interest in her work. She began to frequently miss deadlines and the quality of her work deteriorated.
 
 
46.
Scenario C: Use the information in the following paragraph to answer the questions that follow regarding organization culture.
Hank Corp. is a consulting firm located in Ohio. Vito started the firm as a young man in the early 1950s. The firm has grown but with growth, the employees at Hank have never forgotten the vision of Vito—to be creative in all they do while delighting the client. Each year, an award is given for advertising creativity to the employee who most exemplifies Vito's vision. New employees are told of the organization's greatest accomplishments and are taken on a tour of the "Wall of Memories" where pictures of the company that have been taken over the years are displayed. One is even included to remind everyone of the disastrous fire that the company not only survived but also built upon to strengthen the sense of teamwork clearly evident throughout the firm. In fact, there is a long tradition of employee participation in decision making, and employees consider themselves to be part of the "Hank Family."

Based on the information in Scenario C, which of the following outcomes would you most expect if business drops off dramatically for Hank Corp.?
 
 
47.
Scenario C: Use the information in the following paragraph to answer the questions that follow regarding organization culture.
Hank Corp. is a consulting firm located in Ohio. Vito started the firm as a young man in the early 1950s. The firm has grown but with growth, the employees at Hank have never forgotten the vision of Vito—to be creative in all they do while delighting the client. Each year, an award is given for advertising creativity to the employee who most exemplifies Vito's vision. New employees are told of the organization's greatest accomplishments and are taken on a tour of the "Wall of Memories" where pictures of the company that have been taken over the years are displayed. One is even included to remind everyone of the disastrous fire that the company not only survived but also built upon to strengthen the sense of teamwork clearly evident throughout the firm. In fact, there is a long tradition of employee participation in decision making, and employees consider themselves to be part of the "Hank Family."

New employees being told of the organization's great accomplishments and history is an example of a(n)
 
 
48.
Scenario C: Venus Inc. is a new brand of organic clothing recently introduced throughout the world. The company is unique in that it has collaborated with its suppliers and potential customers to bring the clothing to market. The concept has been a huge success as the idea of sustainability is becoming very popular especially in developed countries. The quick growth in sales has led Melissa and Joanna, the company's founders, to look to your consulting company for help in assuring the future success of the company.

As the founders of the company, Melissa and Joanna are best described as ______ managers.
 
 
49.
Scenario C: Venus Inc. is a new brand of organic clothing recently introduced throughout the world. The company is unique in that it has collaborated with its suppliers and potential customers to bring the clothing to market. The concept has been a huge success as the idea of sustainability is becoming very popular especially in developed countries. The quick growth in sales has led Melissa and Joanna, the company's founders, to look to your consulting company for help in assuring the future success of the company.

Melissa and Joanna want to maintain a strong competitive advantage in the organic clothing industry. They have had meetings with you and have decided to maintain their current direction of continuing to produce new items targeted at new markets, such as children's clothing, in addition to the women's clothing items that were originally designed and produced by the company. Given the information in this scenario, which of the fundamental success drivers are they most likely using?
 
 
50.
The senior managers at Argonia Studios Inc. recognized a lack of employee enthusiasm about the new website. In fact there was a fair amount of infighting and accusations of who was responsible for the layout, given that the firm is considered to be highly competent in design and production. Karen, a manager, got the team together and engaged them in a lively discussion to determine how to change the website so that it reflected more of Argonia's unique design ability. As the meeting wound down, each team member volunteered to take on a part of the project to fix the site. The ability to identify this problem and resolve it is an effective use of _____ skills.
 
 
51.
_____ skills influence a manager's ability to work well with people.
 
 
 

52.
Synthesis Inc. periodically reviews the goals of the company. During the process, the managers of the company analyze their current strategies as compared to their competitors' strategies, determine goals that they will pursue, and decide upon specific actions for each area of the company to take in pursuit of these goals. With these actions, the managers are engaged in the management function of
 
 
53.
Taylor's theory is criticized because it
 
 
54.
Through careful monitoring of the financial budget of a firm, managers can detect potential problems in reaching their financial goals and take actions to reverse the problem. This is an example of the management function of
 
 
55.
To become an effective manager, one should choose _____ of the four management functions and commit one hundred percent.
 
 
56.
Top-level managers focus on
 
 
57.
What is a feature of organizational behavior?
 
 
58.
When a customer service manager works to defuse a situation with an irate customer, which managerial role is he or she taking on?
 
 
59.
When Alex, the marketing manager of Hartwell Inc., realized that his plan to increase sales levels was not producing the results he desired, he took quick action to make necessary adjustments. According to this scenario, Alex was exercising the management function of
 
 
60.
Which approach was the first to emphasize informal work relationships and worker satisfaction and emerged from a scientific management study that resulted in the discovery of the Hawthorne effect?
 
 
61.
Which is the correct statement about the sociotechnical systems theory?
 
 
63.
Which of the following explains the management function of leading?
 
 
64.
Which of the following is a criticism of the bureaucratic approach to management?
 
 
65.
Which of the following is an intermediate consumer?
 
 
66.
Which of the following is the deepest level of organizational culture?
 
 
67.
Which of the following is true of Frederick Taylor's contributions to scientific management as an approach to management?
 
 
68.
Which of the following organizational cultures are strongly characterized by goal achievement, environment exchange, and competitiveness?
 
 
69.
Which of the following statements about collaboration is true?
 
 
70.
Which of the following statements about the Internet is true?
 
 
71.
Which of the following statements is true of globalization?
 
 
72.
Which of the following was a key feature in Stephen Covey's book, The Seven Habits of Highly Effective People: Powerful Lessons in Personal Change?
 
 
73.
Which one of the following is not a way that a manager can influence their environment, according to Exhibit 3.5?
 
 
74.
Wright Bank Corp. utilizes the janitorial services of Rob's Scrub-All Corp. to keep their buildings clean. Rob's provides all the necessary cleaning supplies, training, background security checks (since the crew works after hours), and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. This expense effectively limits the bank to utilizing only Rob's services. Which of the following is being incurred by Wright Bank?
 
 
75.
_____ wrote the book Dynamic Administration, which emphasized the continually changing situations that managers face. Two key contributions of the author are the notion that managers desire flexibility and the differences between motivating groups and individuals.
 
 
 

 

 

1.
Open systems are all relevant forces outside a firm’s boundaries.  
 
True    False
 

2.
All organizations operate in a macroenvironment.  
 
True    False
 

3.
The immediate environment surrounding a firm including suppliers, customers, rivals, and the like is called the macroenvironment.  
 
True    False
 

4.
Competition is most intense when there are few direct competitors, industry growth is fast, and the product or service varies  
 
True    False
 

5.
When an industry matures, profits drop.  
 
True    False
 

6.
Intense competition causes an industry shakeout.  
 
True    False
 

7.
If there are many barriers to entry the threat of new entrants is greater.  
 
True    False
 

8.
Brand identification is a barrier to entry.  
 
True    False
 

9.
A complement is a potential threat because customers use it as an alternative, buying less of one kind of product but more of another.  
 
True    False
 

10.
A supplier is powerful if the buyer has few other sources of supply or if the supplier has many other buyers.  
 
True    False
 

11.
Switching costs are variable costs consumers face if they change brands.  
 
True    False
 

12.
Many companies improve their competitiveness and profitability through switching costs.  
 
True    False
 

13.
Environmental uncertainty means that managers do not have enough information about the environment to understand or predict the future.  
 
True    False
 

14.
Dynamism is the number of issues to which a manager must attend, and the degree to which they are interconnected.  
 
True    False
 

15.
Environmental scanning predicts exactly how some variable or variables will change in the future.  
 
True    False
 

16.
Forecasts are most useful when the future will look radically different from the past.  
 
True    False
 

17.
Benchmarking means identifying the best-in-class performance by a company in a given area and then comparing your processes with theirs.  
 
True    False
 

18.
Smoothing is creating supplies of excess resources in case of unpredictable needs.  
 
True    False
 

19.
Buffering is a method for adapting the technical core to changes in the environment.  
 
True    False
 

20.
Exploiting a distinctive competence or improving internal efficiency for competitive advantage is known as competitive aggression.  
 
True    False
 

21.
Cooptation means absorbing new elements into the organization’s leadership structure to avert threats to its stability or existence.  
 
True    False
 

22.
Entering a new market or industry with existing expertise is known as divestiture.  
 
True    False
 

23.
Some companies, called prospectors are more likely than others to engage in strategic maneuvering.  
 
True    False
 

24.
Defenders pertain to conditions that prevent new companies from entering an industry.  
 
True    False
 

25.
The dominant attributes of an adhocracy are order, rules and regulations, uniformity, and efficiency.  
 
True    False
 

 


Multiple Choice Questions
 

26.
Organizations that are affected by, and that affect, their environment are called:  
 



A. 
oligopolies. 
 

B. 
pyramids. 
 

C. 
open systems. 
 

D. 
matrix organizations. 
 

E. 
ecologies. 
 
 

27.
All relevant forces outside a firm’s boundaries, such as competitors, customers, the government, and the economy are referred to as _____.  
 



A. 
external environment 
 

B. 
open systems 
 

C. 
relative constraints 
 

D. 
physical noise 
 

E. 
competitive bodies 
 
 

28.
Advances in genetic engineering are expected to produce some food products that will become available year-round even in northern climates. These changes will provide grocers with an opportunity to reduce their shipping costs while at the same time, offering fresher produce to their customers. These advances are examples of changes in the:  
 



A. 
technological environment. 
 

B. 
economic environment. 
 

C. 
political environment. 
 

D. 
demographic environment. 
 

E. 
international environment. 
 
 

29.
The immediate environment surrounding a firm including suppliers, customers, and rivals is known as _____.  
 



A. 
macroenvironment 
 

B. 
external environment 
 

C. 
competitive environment 
 

D. 
demographics 
 

E. 
proximal climate 
 
 

30.
Margaret Pane, a new manager at The Royal Deli, has been asked to focus on the competitive environment of the organization. Which of these factors is among those that Margaret Pane should focus on?  
 



A. 
Government policies 
 

B. 
Demographics 
 

C. 
Suppliers 
 

D. 
Technology 
 

E. 
Social factors 
 
 

31.
A popular low-cost airline, Sky Cruiser, has gone out of business. Although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. Which aspect of the competitive environment does this illustrate?  
 



A. 
Customers 
 

B. 
Competitors 
 

C. 
Regulators 
 

D. 
The economy 
 

E. 
Threat of new entrants 
 
 

32.
_____ occurs when weaker companies are eliminated, and the strong companies survive.  
 



A. 
Cannibalization 
 

B. 
Downsizing 
 

C. 
Scaffolding 
 

D. 
Industry shakeout 
 

E. 
Segmentation 
 
 

33.
Conditions that prevent new companies from setting foot in an industry are known as _____.  
 



A. 
demographics 
 

B. 
industry shakeouts 
 

C. 
scaffolding 
 

D. 
zero-profit conditions 
 

E. 
barriers to entry 
 
 

34.
Which of the following is a common barrier to entry?  
 



A. 
Brand identification 
 

B. 
Final consumer 
 

C. 
Bargaining power of buyers 
 

D. 
Demographics 
 

E. 
Switching costs 
 
 

35.
A customer who purchases products in their finished form is _____ consumer.  
 



A. 
an immediate 
 

B. 
a final 
 

C. 
an alpha 
 

D. 
a complete 
 

E. 
a suave 
 
 

36.
Hospitals and universities are very expensive to run because of the capital and equipments required. The requirement of personnel such as specialized medical doctors and researchers are also high. Which of the following is this an example of?  
 



A. 
Protectionism 
 

B. 
Buffering 
 

C. 
Barriers to entry 
 

D. 
Smoothing 
 

E. 
Absolute threshold 
 
 

37.
Kegg’s Cereals is a major supplier to almost all grocery store chains. It has most of the valuable shelf space in the cereal aisle. Which of the following is true based on this information?  
 



A. 
There are few entry barriers. 
 

B. 
Government regulation of cereal is high. 
 

C. 
The threat of new entrants is low. 
 

D. 
Competitors have the larger market share. 
 

E. 
Customers have high bargaining power. 
 
 

38.
The main difference between a final consumer and an intermediate consumer is that the final consumer:  
 



A. 
pays cash. 
 

B. 
uses products himself. 
 

C. 
purchases more than intermediate consumers. 
 

D. 
is not as flexible as an intermediate consumer. 
 

E. 
does not have any bargaining power. 
 
 

39.
Ted Inc. traditionally provides sub-contracting services to construction firms. There are many firms like Ted Inc. in the marketplace but it does about 85% of the work for Will's Construction. Will typically negotiates quite heavily reducing Ted's profits. This situation is indicative of the high bargaining power of:  
 



A. 
customers. 
 

B. 
suppliers. 
 

C. 
substitute companies. 
 

D. 
competitors. 
 

E. 
complementary firms. 
 
 

40.
Wealth and Wealth Bank utilizes the janitorial services of Rob's Scrub-All to keep their buildings clean. Rob's provides all the necessary cleaning supplies, training, background security checks (since the crew works after hours) and all other associated expenses. The other available janitorial services do not typically provide security checks and a client such as a bank would have to hire guards to watch the work of the janitors. This expense effectively limits the bank to utilizing only Rob's services. Which of the following does this illustrate? 

 
 



A. 
High employment costs 
 

B. 
Unfavorable supplier status 
 

C. 
High switching costs 
 

D. 
Favorable quality status 
 

E. 
Complementary products 
 
 

41.
_____ means that managers do not have enough information needed to understand or predict the future.  
 



A. 
Competitive intelligence 
 

B. 
Environmental uncertainty 
 

C. 
Minimization 
 

D. 
Disinformation 
 

E. 
Observational inadequacy 
 
 

42.
_____ refers to searching for information that is unavailable to most people and sorting through that information to interpret what is important.  
 



A. 
Competitive skimming 
 

B. 
Data classification 
 

C. 
Environmental scanning 
 

D. 
Knowledge browsing 
 

E. 
Information foraging 
 
 

43.
_____ is the information that helps managers determine how to do better than others.  
 



A. 
Business acumen 
 

B. 
Lift coefficient 
 

C. 
Hidden agenda 
 

D. 
Competitive intelligence 
 

E. 
Gini index 
 
 

44.
In an attempt to improve customer service, Tailpin Toys decided to assign a team to investigate the kinds of services offered by competing companies. The team discovered that a smaller company, Nuance Games, seemed to have outstanding customer service. The team then determined the major differences between the two companies and developed a plan to incorporate the best elements of Nuance Games into Tailpin Toys. Which of the following does this illustrate?  
 



A. 
Environmental dynamism 
 

B. 
Benchmarking 
 

C. 
Strategic maneuvering 
 

D. 
Cooperative action 
 

E. 
Forecasting 
 
 

45.
_____ is the process of sharing authority with employees to enhance their confidence in their ability to perform their jobs and contribute to the organization.  
 



A. 
Empowerment 
 

B. 
Licensing 
 

C. 
Vetoing 
 

D. 
Endorsement 
 

E. 
Concurrence 
 
 

46.
Which of the following approaches should an organization adopt for managing uncertainty in a complex and stable environment?  
 



A. 
Decentralized, organic with mutual adjustment 
 

B. 
Decentralized, bureaucratic with standardized skills 
 

C. 
Centralized, bureaucratic with standardized work processes 
 

D. 
Centralized, organic with direct supervision 
 

E. 
Centralized, organic with mutual adjustment 
 
 

47.
Which of the following approaches should an organization adopt for managing uncertainty in a complex and dynamic environment?  
 



A. 
Centralized, bureaucratic with standardized work processes 
 

B. 
Decentralized, bureaucratic with standardized skills 
 

C. 
Decentralized, organic with mutual adjustment 
 

D. 
Centralized, organic with direct supervision 
 

E. 
Centralized, organic with mutual adjustment 
 
 

48.
Which of the following approaches should an organization adopt for managing uncertainty in a simple and stable environment?  
 



A. 
Centralized, organic with direct supervision 
 

B. 
Decentralized, bureaucratic with standardized skills 
 

C. 
Decentralized, organic with mutual adjustment 
 

D. 
Centralized, bureaucratic with standardized work processes 
 

E. 
Centralized, organic with mutual adjustment 
 
 

49.
Which of the following approaches should an organization adopt for managing uncertainty in a simple and dynamic environment?  
 



A. 
Centralized, organic with mutual adjustment 
 

B. 
Decentralized, bureaucratic with standardized skills 
 

C. 
Decentralized, organic with mutual adjustment 
 

D. 
Centralized, bureaucratic with standardized work processes 
 

E. 
Centralized, organic with direct supervision 
 
 

50.
A decentralized, bureaucratic approach with standardized skills for managing uncertainty is ideal for which of the following environments?  
 



A. 
Stable and complex 
 

B. 
Complex and dynamic 
 

C. 
Simple and stable 
 

D. 
Dynamic and simple 
 

E. 
Stable and dynamic 
 
 

51.
A decentralized, organic approach with mutual adjustment for managing uncertainty is ideal for which of the following environments?  
 



A. 
Stable and complex 
 

B. 
Complex and dynamic 
 

C. 
Simple and stable 
 

D. 
Dynamic and simple 
 

E. 
Stable and dynamic 
 
 

52.
A centralized, organic approach with direct supervision for managing uncertainty is ideal for which of the following environments?  
 



A. 
Stable and complex 
 

B. 
Complex and dynamic 
 

C. 
Dynamic and simple 
 

D. 
Simple and stable 
 

E. 
Stable and dynamic 
 
 

53.
A centralized, bureaucratic approach with standardized work processes for managing uncertainty is ideal for which of the following environments?  
 



A. 
Stable and complex 
 

B. 
Complex and dynamic 
 

C. 
Dynamic and simple 
 

D. 
Simple and stable 
 

E. 
Stable and dynamic 
 
 

54.
Creating supplies of excess resources in case of unpredictable needs is called  
 



A. 
hoarding 
 

B. 
smoothing 
 

C. 
yielding 
 

D. 
flocking 
 

E. 
buffering 
 
 

55.
Clara owns a small gift shop in Carolina. She hopes the economy will rebound this fall as she has to order her Christmas merchandise and other holiday gifts in February. She wants to make sure she has enough goods for the surge in sales that the holiday season usually brings to her retail store. Here, Clara is using _____ to be sure she has enough gifts for those extra customers that she hopes will brave the economic woes and shop for holiday presents.  
 



A. 
substitutes 
 

B. 
smoothing 
 

C. 
complements 
 

D. 
buffering 
 

E. 
demographics 
 
 

56.
The growth of contingent workers in the U.S. labor force due to unpredictable labor demand is an illustration of:  
 



A. 
adapting at the core. 
 

B. 
flexible processes. 
 

C. 
buffering. 
 

D. 
smoothing. 
 

E. 
empowerment. 
 
 

57.
When Nancy’s Yogurt Company acts on its own to promote the yogurt industry as a whole, the company is practicing:  
 



A. 
competitive aggression. 
 

B. 
competitive pacification. 
 

C. 
public relations. 
 

D. 
voluntary cooptation. 
 

E. 
cooperative action. 
 
 

58.
When Musk advertises its soap products as better than Pearl soap products, Musk is demonstrating:  
 



A. 
competitive aggression. 
 

B. 
competitive pacification. 
 

C. 
benchmarking. 
 

D. 
smoothing. 
 

E. 
cooptation. 
 
 

59.
_____ is leveling normal fluctuations at the boundaries of the environment.  
 



A. 
Smoothing 
 

B. 
Buffering 
 

C. 
Sifting 
 

D. 
Flexing 
 

E. 
Skirting 
 
 

60.
_____ are methods for adapting the technical core to changes in the environment.  
 



A. 
Supply chain actions 
 

B. 
Flexible processes 
 

C. 
Independent strategies 
 

D. 
Cooperative strategies 
 

E. 
Technical acquisitions 
 
 

61.
_____ are approaches that an organization acting on its own uses to change some aspect of its current environment.  
 



A. 
Flexible processes 
 

B. 
Forecasting methods 
 

C. 
Independent strategies 
 

D. 
Benchmarking procedures 
 

E. 
Buffering techniques 
 
 

62.
Higher Wisdom University has just formed a board of trustees and invited 25 of its wealthiest alumni to join. Which of the following is the university adopting?  
 



A. 
Smoothing 
 

B. 
Cooptation 
 

C. 
Competitive intelligence 
 

D. 
Divestiture 
 

E. 
Scaffolding 
 
 

63.
Lindsay Pharmacy and Allwell Medicines have joined forces with one another to lobby for health care reform. This action of the two companies is referred to as:  
 



A. 
merger. 
 

B. 
coalition. 
 

C. 
domain selection. 
 

D. 
benchmarking. 
 

E. 
competitive aggression. 
 
 

64.
Domain selection, diversification, mergers/acquisitions and divestitures are all examples of:  
 



A. 
cooperative strategies. 
 

B. 
voluntary action. 
 

C. 
strategic maneuvering. 
 

D. 
independent strategies. 
 

E. 
competitive pacification. 
 
 

65.
Meatorganics announced that it was selling off its pork division in order to realign itself more competitively in the marketing of its other products. This is an example of managing the task environment through:  
 



A. 
diversification. 
 

B. 
acquisition. 
 

C. 
merger. 
 

D. 
divestiture. 
 

E. 
domain selection. 
 
 

66.
Which of the following is a way of redefining the boundaries of an environment a firm is in?  
 



A. 
Independent action 
 

B. 
Domain selection 
 

C. 
Cooptation 
 

D. 
Buffering 
 

E. 
Smoothing 
 
 

67.
_____ is an organization’s conscious efforts to change the boundaries of its task environment.  
 



A. 
Independent action 
 

B. 
Cooperative strategy 
 

C. 
Strategic maneuvering 
 

D. 
Public relations 
 

E. 
Flexible process 
 
 

68.
_____ occurs when a company sells one or more businesses.  
 



A. 
Diversification 
 

B. 
Cooptation 
 

C. 
Acquisition 
 

D. 
Divestiture 
 

E. 
Merger 
 
 

69.
_____ are companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring new enterprises.  
 



A. 
Defenders 
 

B. 
Wanderers 
 

C. 
Transformers 
 

D. 
Prospectors 
 

E. 
Divergers 
 
 

70.
_____ are companies that stay within a stable product domain as a strategic maneuver.  
 



A. 
Convergers 
 

B. 
Accommodators 
 

C. 
Protectors 
 

D. 
Sponsors 
 

E. 
Defenders 
 
 

71.
An organization’s _____ refers to all relevant forces inside a firm’s boundaries, such as its managers, employees, resources, and organizational culture.  
 



A. 
internal environment 
 

B. 
competitive environment 
 

C. 
macroenvironment 
 

D. 
demographics 
 

E. 
open systems 
 
 

72.
_____ is the set of assumptions about the organization and its goals and practices that members of the company share.  
 



A. 
Competitive intelligence 
 

B. 
Systemic perception 
 

C. 
Organization culture 
 

D. 
Inductive bias 
 

E. 
Scientific management 
 
 

73.
The five-by-eight inch card with one rule on it—Use good judgment in all situations—that employees at Envytech receive along with the employee handbook tells the employees a great deal about their company's:  
 



A. 
visible artifacts. 
 

B. 
voluntary actions. 
 

C. 
organization culture. 
 

D. 
competitive aggression. 
 

E. 
macroenvironment. 
 
 

74.
_____ are the components of an organization that can be seen and heard, such as office layout, dress, orientation, stories, and written material.  
 



A. 
Incendiaries 
 

B. 
Visible artifacts 
 

C. 
Perceived assimilations 
 

D. 
Organizational divestitures 
 

E. 
Apparitions 
 
 

75.
Which of the following is the first level of organizational culture?  
 



A. 
Unconscious assumptions 
 

B. 
Values 
 

C. 
Desirable behaviors 
 

D. 
Visible artifacts 
 

E. 
Intangible beliefs 
 
 

76.
_____ are the underlying qualities and desirable behaviors that are important to the organization.  
 



A. 
Traits 
 

B. 
Ethics 
 

C. 
Norms 
 

D. 
Benchmarks 
 

E. 
Values 
 
 

77.
Which of the following is the deepest level of organizational culture?  
 



A. 
Unconscious assumptions 
 

B. 
Values 
 

C. 
Desirable behaviors 
 

D. 
Individual talents 
 

E. 
Ancillary activities 
 
 

78.
Which of the following can be a useful clue about an organization’s culture?  
 



A. 
Who is hired and fired 
 

B. 
Information printed in the media 
 

C. 
The macroenvironment 
 

D. 
Environmental scanning 
 

E. 
The industrial environment 
 
 

79.
Which of the following leadership styles is associated with a hierarchical culture?  
 



A. 
Coordinator, organizer 
 

B. 
Production and achievement-oriented 
 

C. 
Risk taker 
 

D. 
Innovator, entrepreneur 
 

E. 
Mentor, facilitator, parent figure 
 
 

80.
If an organization's culture is externally oriented and focused on control with its primary objectives as productivity, planning and efficiency, it could best be described as a _____ culture.  
 



A. 
group 
 

B. 
hierarchical 
 

C. 
rational 
 

D. 
adhocracy 
 

E. 
values-oriented 
 
 

 


Short Answer Questions
 

81.
What are open systems?  
 




 


 


 
 

82.
List the five elements of a firm's macroenvironment and illustrate how each affects the firm.  
 




 


 


 
 

83.
Immigration patterns influence the management of the U.S. labor force. Discuss.  
 




 


 


 
 

84.
Provide an example and explain the effect of a social trend on the management of a specific organization.  
 




 


 


 
 

85.
Describe the five forces in a competitive environment.  
 




 


 


 
 

86.
List the actions and attitudes that reflect excellent customer service. Illustrate each from your own experiences as either a customer or a service provider.  
 




 


 


 
 

87.
Differentiate between unattractive and attractive competitive environments using Porter’s Model of competitive environment and give an example for each situation.  
 




 


 


 
 

88.
As environmental uncertainty increases, managers must develop techniques and methods for collecting, sorting through, and interpreting information about the environment. Discuss four of these methods explaining when and why each would be used.  
 




 


 


 
 

89.
To respond to their environment, managers and companies have a number of options, which can be grouped into three categories. Describe each category.  
 




 


 


 
 

90.
Summarize the four different approaches that organizations can take in adapting to environmental uncertainty.  
 




 


 


 
 

91.
Discuss three independent strategies that a firm may use as a proactive response to its environment.  
 




 


 


 
 

92.
Differentiate between the following four strategic maneuvers: domain selection, diversification, merger and acquisition, and divestiture.  
 




 


 


 
 

93.
Discuss the clues utilized to diagnose a culture.  
 




 


 


 
 

94.
Describe the culture of an organization in which you have either worked or studied. Which of the four types of organizational culture described in the chapter does the organization illustrate? Justify your answer.  
 




 


 


 
 

95.
What are the approaches to managing culture effectively?  
 




 


 


 
 

 


Multiple Choice Questions
 

 
Scenario A.  Use the information in the following list to answer the four questions that follow. Alice’s Antique Jewelry is a small store that specializes in antique jewelry. In analyzing the environment, Alice has uncovered several interesting findings: 1. Alice has recently purchased more inventory than in the past. Her customers are selling most of their jewelry because their children are not interested in this type of jewelry. Also, these customers would prefer to liquidate their jewelry to help them with their daily expenses since they no longer wear most of it.
2. Alice has recently discovered that her business is in a historical preservation district so as she considers remodeling the shop, she has found she must pay attention to the guidelines set forth in the governing laws.
3. Alice’s buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern jewelry so the customer base to which she sells is shrinking.
4. Alice has been told that she should investigate selling her inventory via the Internet, but she does not own (or understand how to use) a computer.
5. In reading a survey of regional business, Alice discovered that there are no other antique jewelry stores within a 200 mile radius of hers. 
 

96.
Given the information in Scenario A, which of the following elements of the macroenvironment was part of Alice’s findings?  
 



A. 
Sustainability 
 

B. 
Psychology 
 

C. 
Corporate laws 
 

D. 
Sociology 
 

E. 
Technology 
 
 

97.
When Alice read the survey of regional businesses, she was investigating:  
 



A. 
the competitive environment. 
 

B. 
the macroenvironment. 
 

C. 
a closed environment. 
 

D. 
their internal environment. 
 

E. 
the social environment. 
 
 

98.
Findings 1 and 3 are both associated with the:  
 



A. 
competitive environment as described by Porter. 
 

B. 
macroenvironmental economic trends. 
 

C. 
macroenvironmental political trends. 
 

D. 
amount of rivalry in Alice's competitive environment. 
 

E. 
barriers to entry in Alice's competitive environment. 
 
 

99.
Finding 2 is most closely associated with which element of the macroenvironment?  
 



A. 
laws and regulations 
 

B. 
the economy 
 

C. 
demographics 
 

D. 
technology 
 

E. 
the natural environment 
 
 

 
Scenario B. Use the information in the following paragraph to answer the questions that follow. You and a fellow investor are investigating the possibility of starting a new casino in Black Hawk, Colorado, a small town in the Rocky Mountains. It has been your lifelong dream. You have won the lottery and are trying to decide if this is what you want to do with your prize money. You decide to do an analysis of the competitive environment. After your analysis, you discover several important issues. First, it will cost most of your lottery winnings to finance a casino in Black Hawk! Second, it will be difficult to attract new customers because they have so many choices available to them in Black Hawk and the surrounding small towns. Finally, the competition in the casino industry is considered "fierce" by industry analysts and this is frightening to someone who has never even worked in the casino industry. 
 

100.
The analysis of the competitive environment that you have conducted utilized the work of:  
 



A. 
Frederick Taylor. 
 

B. 
Michael Porter. 
 

C. 
Abraham Maslow. 
 

D. 
Douglas McGregor. 
 

E. 
Lillian Gilbreth. 
 
 

101.
The information that you have collected in your competitive analysis can be referred to as:  
 



A. 
forecasting. 
 

B. 
competitive intelligence. 
 

C. 
environmental scanning. 
 

D. 
benchmarking. 
 

E. 
scenario development. 
 
 

102.
The existence of savvy customers in an industry is an indication of:  
 



A. 
high bargaining power of suppliers. 
 

B. 
low bargaining power of suppliers. 
 

C. 
high bargaining power of customers. 
 

D. 
low bargaining power of customers. 
 

E. 
low threat of new entry. 
 
 

103.
The fact that it will require such a large capital investment to start a new casino is an example of which of the following factors?  
 



A. 
high bargaining power of customers 
 

B. 
low threat of new entrants 
 

C. 
high threat of new entrants 
 

D. 
many substitute products 
 

E. 
low bargaining power of customers 
 
 

 
Scenario C. Use the information in the following paragraph to answer the questions that follow. Smash Marketing is a consulting firm located in the Midwest. Mr. William “Bill” Smash started the firm as a young man in the early 1950s. The firm has grown but with growth, the Smash employees have never forgotten the vision of Mr. Smash—to be creative in all they do while delighting the client. Each year the Smash Award for Advertising Creativity is given to the employee who most exemplifies Mr. Smash’s vision. New employees are told of the organization's greatest accomplishments and are taken on a tour of the “Wall of Memories” where pictures of the company that have been taken over the years are hung. One is even included to remind everyone of the disastrous fire that the company not only survived but also built upon to strengthen the sense of teamwork clearly evident throughout the firm. In fact, there is a long tradition of employee participation in decision making and all consider themselves to be part of the “Smash Family.” 
 

104.
The photo of the fire is an example of a:  
 



A. 
story. 
 

B. 
value. 
 

C. 
legend. 
 

D. 
symbol. 
 

E. 
rite. 
 
 

105.
When the new employees are told of the organization's great accomplishments and history, it is an example of a(n):  
 



A. 
mission statement. 
 

B. 
official goal. 
 

C. 
story. 
 

D. 
ceremony. 
 

E. 
rite. 
 
 

106.
The culture at Smash Marketing can best be described as a(n):  
 



A. 
group culture. 
 

B. 
hierarchical culture. 
 

C. 
rational culture. 
 

D. 
adhocracy. 
 

E. 
team culture. 
 
 

107.
Based on the information in the above scenario, which of the following outcomes would you most expect if business drops off dramatically for Smash Marketing?  
 



A. 
Mr. Smash would lay off most of his workforce. 
 

B. 
The members of the entire company would agree that they should each cut their hours by 15% so that no one is laid off. 
 

C. 
Mr. Smash would sell the company and move to Hawaii. 
 

D. 
The members of the company would go on strike. 
 

E. 
Mr. Smash would charge more for the consulting services so that he can make ends meet. 
 
 

 
Scenario D. Use the information in the following paragraph to answer the four questions that follow.

Margarita works for a small company, which processes and cans tomatoes and other vegetables. She reports to the CFO. It is her job to predict the costs of raw materials for the next five years. She uses various research sources including the news to learn who the competition is and what they have been doing. In fact she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe. Every month she develops a spreadsheet for her boss indicating the type of weather conditions expected in each area of the world and thus the availability of particular crops and likely costs of these vegetables. She is also involved in a team that is investigating how to cut canning costs. They have recently met with Good Cans, a company that manufactures and cans tennis balls. Good Cans is considered the top company in the canning industry, especially around canning process knowledge and Margarita’s team is comparing their processes to those of Good Cans to see how they might improve. 
 

108.
When predicting the costs for her company, Margarita is engaging in:  
 



A. 
forecasting. 
 

B. 
competitive intelligence. 
 

C. 
environmental scanning. 
 

D. 
benchmarking. 
 

E. 
scenario development. 
 
 

109.
The research Margarita is using is called:  
 



A. 
forecasting. 
 

B. 
competitive intelligence. 
 

C. 
environmental scanning. 
 

D. 
benchmarking. 
 

E. 
scenario development. 
 
 

110.
The spreadsheet that Margarita uses gives her a chance to use:  
 



A. 
forecasting. 
 

B. 
competitive intelligence. 
 

C. 
environmental scanning. 
 

D. 
benchmarking. 
 

E. 
scenario development. 
 
 

111.
Margarita and her team are using _____ when they learn from Good Cans about its canning process.  
 



A. 
forecasting 
 

B. 
competitive intelligence 
 

C. 
environmental scanning 
 

D. 
benchmarking 
 

E. 
scenario development 
 
 

 

 

1.
In an organization, the process of planning moves in a linear fashion.  
 
True    False
 

2.
Situational analysis, as part of the formal planning process, focuses on internal forces at work within the organization and examines influences from the external environment.  
 
True    False
 

3.
To be effective, goals should be measurable, specific, attainable, relevant, and time-bound.  
 
True    False
 

4.
Standing plans are designed to achieve a set of goals that are not likely to be repeated in the future.  
 
True    False
 

5.
In the context of planning scenarios, a different contingency plan is attached to each scenario.  
 
True    False
 

6.
The final step in the formal planning process, monitoring and controlling performance, identifies the priorities and trade-offs among the goals and plans.  
 
True    False
 

7.
Making decisions about the organization's short-term goals and tactics is known as strategic planning.  
 
True    False
 

8.
An organization's operational plans serve as the foundation for its strategic plans and tactical plans.  
 
True    False
 

9.
The formal planning model emphasizes a bottom-up approach.  
 
True    False
 

10.
Managers throughout an organization may be involved in developing the strategic plan and contributing critical elements.  
 
True    False
 

11.
To be effective, the organization’s strategic plans should focus on goals that are different from those of its tactical plans and operational plans.  
 
True    False
 

12.
An organization's mission statement describes the company's basic purpose and scope of operations.  
 
True    False
 

13.
An organization's mission statement focuses on long-term goals while its strategic vision focuses on short-term plans.  
 
True    False
 

14.
Stakeholders are only those groups and individuals who have a financial stake in the company.  
 
True    False
 

15.
In the context of the strategic planning process, a critical task in environmental analysis is forecasting future trends.  
 
True    False
 

16.
Resources are a source of competitive advantage only when they are valuable, rare, difficult to imitate, and organized.  
 
True    False
 

17.
The goal of satisficing is to thoroughly understand the “best practices” of other firms and to undertake actions to achieve better performance and lower costs.  
 
True    False
 

18.
The corporate strategy of concentration involves expanding the domain of the organization into supply channels and to distributors.  
 
True    False
 

19.
The BCG matrix is not a substitute for management judgment; it helps managers of businesses evaluate their strategy alternatives.  
 
True    False
 

20.
Businesses using a low-cost strategy try to be efficient and offer a standard, no-frills product.  
 
True    False
 

21.
Functional strategies are implemented only at the top levels of management.  
 
True    False
 

22.
A strategic control system must encourage efficient operations while allowing flexibility to adapt to changing conditions.  
 
True    False
 

23.
Managers usually face novel and unstructured problems, leaving them uncertain about how to proceed.  
 
True    False
 

24.
Decision makers who search for custom-made solutions use ideas they have tried before or follow the advice of others who have faced similar problems.  
 
True    False
 

25.
In the context of the decision-making process in an organization, those who implement a decision must understand the choice and must be committed to its successful implementation.  
 
True    False
 

26.
In the context of managerial decision making, decision evaluation is useful only if the negative feedback has been received.  
 
True    False
 

27.
Discounting the future is a psychological bias that applies to students who do not study.  
 
True    False
 

28.
Individuals usually make higher-quality decisions when compared to groups, provided there is enough time.  
 
True    False
 

29.
In today's complex business environment, some experts advise that significant problems should never be tackled by groups.  
 
True    False
 

30.
An advantage of using a group for decision making is that disagreement is unlikely to happen, and this phenomenon is called groupthink.  
 
True    False
 

31.
In the context of decision making in groups, the job of a devil's advocate is to create potentially destructive conflict.  
 
True    False
 

32.
In brainstorming, group members generate as many ideas about a problem as they can.  
 
True    False
 

 


Multiple Choice Questions
 

33.
Which of the following steps in the formal planning process involves studying past events, examining current conditions, and forecasting future trends?  
 



A. 
Analyzing the situation 
 

B. 
Generating alternative goals and plans 
 

C. 
Evaluating goals and plans 
 

D. 
Selecting goals and plans 
 

E. 
Monitoring and controlling performance 
 
 

34.
The outcome of situational analysis is the:  
 



A. 
evaluation of the merits and feasibility of a range of alternatives. 
 

B. 
prioritization and elimination of goals. 
 

C. 
identification and diagnosis of planning assumptions, issues, and problems. 
 

D. 
selection of the most appropriate and feasible alternative. 
 

E. 
proper implementation of a plan. 
 
 

35.
In the context of the planning process, _____ are the targets or ends the manager wants to reach.  
 



A. 
goals 
 

B. 
plans 
 

C. 
scenarios 
 

D. 
strategies 
 

E. 
threats 
 
 

36.
A plan which focuses on ongoing activities designed to achieve an enduring set of goals and may become a more permanent policy or rule is called a _____.  
 



A. 
start-up plan 
 

B. 
single-use plan 
 

C. 
standing plan 
 

D. 
contingency plan 
 

E. 
subject plan 
 
 

37.
A plan to integrate employees into a new payroll system, assuming that it is not likely to be repeated in the foreseeable future, is an example of a _____ plan.  
 



A. 
standing 
 

B. 
single-use 
 

C. 
start-up 
 

D. 
contingency 
 

E. 
subject 
 
 

38.
According to the _____ plan of Widget Inc., if expansion to new markets in Australia does not materialize, the company will strive for expansion in Asia.  
 



A. 
operations 
 

B. 
internal 
 

C. 
contingency 
 

D. 
standing 
 

E. 
start-up 
 
 

39.
Which stage of the planning process is Axis Corp. involved in if it is assessing how well alternative plans meet high-priority goals while considering the cost of each initiative and the likely investment return?  
 



A. 
Implementing goals and plans 
 

B. 
Selecting goals and plans 
 

C. 
Analyzing the situation 
 

D. 
Monitoring and controlling performance 
 

E. 
Evaluating goals and plans 
 
 

40.
In which step of the planning process do managers identify the priorities and trade-offs among goals and plans?  
 



A. 
Evaluation of goals and plans 
 

B. 
Selection of goals and plans 
 

C. 
Implementation of goals and plans 
 

D. 
Monitoring of goals and plans 
 

E. 
Generating alternative goals and plans 
 
 

41.
In the context of the planning process, implementation of selected plans will be most successful when:  
 



A. 
only senior managers participate in the planning process. 
 

B. 
limited financial resources are made available to the manager. 
 

C. 
they are linked to other organizational systems like budgets and rewards. 
 

D. 
they are converted into strict rules for employees to follow. 
 

E. 
they are projected as confidential issues concerning top management. 
 
 

42.
In the context of the planning process, which of the following statements is true of the final step that involves monitoring and controlling performance?  
 



A. 
Monitoring and controlling performance is not as important as the other steps in the planning process. 
 

B. 
Managers must continually monitor the performance of their work units against the unit’s goals and plans. 
 

C. 
It is the first step taken up by managers in the planning process. 
 

D. 
Managers need to re-start the planning process if plans are implemented improperly. 
 

E. 
Managers consider monitoring and controlling performance as the most important step in the planning process. 
 
 

43.
Which of the following is one of the four levels of planning?  
 



A. 
Feasible 
 

B. 
Synergistic 
 

C. 
Tactical 
 

D. 
Internal 
 

E. 
Traditional 
 
 

44.
In the context of the levels of planning, typical strategic goals involve:  
 



A. 
updating equipment used. 
 

B. 
increasing market share. 
 

C. 
advertising expenditures. 
 

D. 
compliance with civil rights laws. 
 

E. 
human resource utilization. 
 
 

45.
Which of the following is true of the strategic goals of an organization?  
 



A. 
Once the strategic goals have been set, the organization will automatically begin improving. 
 

B. 
The strategic goals of an organization should be limited to top management. 
 

C. 
Strategic goals include fostering quantity and quality of outputs as well as increasing productivity. 
 

D. 
Setting high strategic goals eliminates the risk of failure. 
 

E. 
In order to achieve the desired results, strategic goals must not be changed after documentation. 
 
 

46.
In the context of the levels of planning, strategic goals are:  
 



A. 
major targets that relate to the long-term survival of the organization. 
 

B. 
specific to a functional area in the organization. 
 

C. 
driven by operational plans. 
 

D. 
focused on the major actions a unit must take. 
 

E. 
procedures and processes to get day-to-day work done. 
 
 

47.
The level of planning involving the longest time horizon, usually ranging from three to seven years, is:  
 



A. 
operational planning. 
 

B. 
missionary planning. 
 

C. 
tactical planning. 
 

D. 
departmental planning. 
 

E. 
strategic planning. 
 
 

48.
The process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of the organization is known as:  
 



A. 
strategic planning. 
 

B. 
operational planning. 
 

C. 
tactical planning. 
 

D. 
contingency planning. 
 

E. 
feasibility planning. 
 
 

49.
The process of identifying the specific procedures and processes required at lower levels of the organization is known as:  
 



A. 
strategic planning. 
 

B. 
operational planning. 
 

C. 
tactical planning. 
 

D. 
contingency planning. 
 

E. 
acquisition planning. 
 
 

50.
In _____ planning, frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements.  
 



A. 
acquisition 
 

B. 
feasibility 
 

C. 
tactical 
 

D. 
operational 
 

E. 
strategic 
 
 

51.
In the context of the levels of planning, the formal planning model is _____, with top-level strategies flowing down through the levels of the organization into more specific goals and plans.  
 



A. 
innovative 
 

B. 
hierarchical 
 

C. 
tactical 
 

D. 
concentrated 
 

E. 
uncertain 
 
 

52.
In the context of the levels of planning, an organization’s strategic, tactical, and operational goals and plans must be _____ in order to be fully effective.  
 



A. 
aligned 
 

B. 
independent 
 

C. 
mutually exclusive 
 

D. 
focused on long-term gains only 
 

E. 
focused on short-term benefits only 
 
 

53.
Which of the following is true of the strategic vision of an organization?  
 



A. 
The strategic vision provides a perspective on where the organization is headed. 
 

B. 
The strategic vision describes the organization as it currently operates. 
 

C. 
A strategic vision statement is a clear and concise expression of the organization’s basic purpose. 
 

D. 
An effective strategic vision statement must motivate all employees financially. 
 

E. 
The strategic vision emphasizes short-term gains of an organization. 
 
 

54.
In the context of resources and core capabilities, tangible assets include:  
 



A. 
patents. 
 

B. 
real estate. 
 

C. 
company reputation. 
 

D. 
technical knowledge. 
 

E. 
learning and experience. 
 
 

55.
Resources are a source of competitive advantage only when they create customer value, are rare, are organized, and are:  
 



A. 
historical. 
 

B. 
difficult to imitate. 
 

C. 
equally available. 
 

D. 
commonplace. 
 

E. 
expensive. 
 
 

56.
Hot Pizza, a chain of full service pizzerias, periodically compares the quality of its food and service with its competitors in order to continually improve its performance. This corporate strategy is known as:  
 



A. 
brainstorming. 
 

B. 
diversification. 
 

C. 
benchmarking. 
 

D. 
vertical integration. 
 

E. 
horizontal integration. 
 
 

57.
A technique that helps managers summarize relevant and important facts from the internal and external analyses of an organization in order to formulate strategy is known as:  
 



A. 
BCG matrix. 
 

B. 
SWOT analysis. 
 

C. 
benchmarking. 
 

D. 
diversification. 
 

E. 
functional strategy. 
 
 

58.
A(n) _____ strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.  
 



A. 
vertical 
 

B. 
unrelated 
 

C. 
uncertain 
 

D. 
functional 
 

E. 
corporate 
 
 

59.
In order to reduce production costs, Everlasting Tire decided to buy out a rubber plant and begin manufacturing their own rubber for their tires. The corporate strategy adopted by the company is known as:  
 



A. 
concentration. 
 

B. 
vertical integration. 
 

C. 
related diversification. 
 

D. 
unrelated diversification. 
 

E. 
differentiation. 
 
 

60.
Party Beverages Corp. had focused only on alcoholic beverages for the last two decades. Now, the company is considering entering the soft drink market. In the context of the above scenario, which of the following corporate strategies will the company adopt?  
 



A. 
Vertical integration 
 

B. 
Related diversification 
 

C. 
Unrelated diversification 
 

D. 
Concentration 
 

E. 
Low-cost 
 
 

61.
GR Real Estate Inc. recently decided to expand from its original base in real estate to several wide-ranging industries such as trucking, lawn mower manufacturing and catering. This corporate strategy is known as:  
 



A. 
vertical integration. 
 

B. 
unrelated diversification. 
 

C. 
related diversification. 
 

D. 
concentration. 
 

E. 
low-cost. 
 
 

62.
The O'Brien Corporation is evaluating the purchase of a small firm which manufactures doodads, a product involving advanced technology. Doodads are expected to revolutionize the home construction industry. The firm to be purchased has only a minor share of this growing market, but the market is expected to grow rapidly. In which of the following categories of business in the BCG matrix would this firm be placed?  
 



A. 
Cash cows 
 

B. 
Stars 
 

C. 
Spinoffs 
 

D. 
Question marks 
 

E. 
Dogs 
 
 

63.
In the context of the BCG matrix, a star represents a company:  
 



A. 
with high growth and a strong competitive position in the market. 
 

B. 
that requires substantial investments to improve their position in the market. 
 

C. 
with low growth and a strong competitive position in the market. 
 

D. 
that generates excess revenues and funds other businesses. 
 

E. 
that will be divested as soon as possible. 
 
 

64.
The most effective strategy that can be adopted by strategy managers is one that:  
 



A. 
cannot be described in detail. 
 

B. 
competitors are unable to imitate. 
 

C. 
is based on the principle of rigidity. 
 

D. 
cannot be deconstructed. 
 

E. 
can be purchased at a reasonable cost. 
 
 

65.
The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step is known as:  
 



A. 
assessing organizational capabilities. 
 

B. 
developing an implementation agenda. 
 

C. 
defining strategic tasks. 
 

D. 
creating an implementation plan. 
 

E. 
developing a mission statement. 
 
 

66.
Which of the following is true of strategic control systems?  
 



A. 
They must rigidly enforce the strategic plan in the face of changing conditions. 
 

B. 
Unlimited spending may be allowed as long as the organization is progressing according to its strategy. 
 

C. 
Corrective action is taken when discrepancies exist between an organization’s progress and its strategy.    
 

D. 
The first component of the strategic management process is strategic control. 
 

E. 
These systems are designed to help determine the organization’s output by evaluating price competition. 
 
 

67.
When the problem is frequent, repetitive, routine, with much certainty regarding cause-and-effect relationships, a _____ decision may be taken.  
 



A. 
qualitative 
 

B. 
programmed 
 

C. 
non-economic 
 

D. 
risky 
 

E. 
nonprogrammed 
 
 

68.
Which of the following best describes the preferred approach for managers confronted with risk?  
 



A. 
They avoid it by any means necessary. 
 

B. 
They eliminate it with a thorough understanding of the consequences of each option. 
 

C. 
They anticipate it, minimize it, and control it. 
 

D. 
They understand there is no way to manage it. 
 

E. 
They thrive on taking risks. 
 
 

69.
Which of the following is true of managerial decision making?  
 



A. 
Most managerial decisions lack structure. 
 

B. 
Managerial decisions are always free of risk. 
 

C. 
Managerial decisions are taken under conditions of perfect certainty. 
 

D. 
Managers show consistency in their decisions in response to novel problems. 
 

E. 
A manager’s decisions have the characteristics of programmed decisions. 
 
 

70.
Shadow Blinds, an American company, is trying to decide whether to open its first international branch in Europe or Asia. The managers of the company are operating under a condition of _____.  
 



A. 
goal displacement 
 

B. 
illusion of control 
 

C. 
social reality 
 

D. 
uncertainty 
 

E. 
maximization 
 
 

71.
In the context of managerial decision making, when one can estimate the likelihood of various consequences but still does not know with certainty what will happen, one is facing _____.  
 



A. 
certainty 
 

B. 
maximization 
 

C. 
risk 
 

D. 
optimization 
 

E. 
framing effects 
 
 

72.
In the context of managerial decision making, the state that exists when decision makers have insufficient information is known as:  
 



A. 
certainty. 
 

B. 
uncertainty. 
 

C. 
risk. 
 

D. 
probability. 
 

E. 
indecision. 
 
 

73.
A formal decision-making process has six stages. Which of the following is one of these stages?  
 



A. 
Thriving on the risks of taking a decision 
 

B. 
Minimizing the consequences of a decision 
 

C. 
Anticipating the outcome of a decision 
 

D. 
Evaluating the decision 
 

E. 
Controlling the damage caused by a wrong decision 
 
 

74.
The first step in an ideal decision-making process is to:  
 



A. 
make a choice. 
 

B. 
evaluate alternatives. 
 

C. 
implement the decision. 
 

D. 
generate alternative solutions. 
 

E. 
identify the problem. 
 
 

75.
The manager of a restaurant noticed that the number of customers in the evening was decreasing. She promptly ordered the chef to rewrite the evening menu. Later, customer feedback indicated that the problem was not the menu but poor service from the waitstaff. The manager's decision to have the menu revised suggests that she failed to:  
 



A. 
identify and diagnose the problem. 
 

B. 
evaluate alternatives. 
 

C. 
generate alternative solutions. 
 

D. 
evaluate the decision. 
 

E. 
make a choice. 
 
 

76.
In the context of generating alternative solutions during the decision-making process, _____ solutions must be designed for specific problems.  
 



A. 
realistic 
 

B. 
goal-oriented 
 

C. 
open-ended 
 

D. 
adjustable 
 

E. 
custom-made 
 
 

77.
Anne is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Anne is most likely searching for a(n) _____ solution to her problem.  
 



A. 
experimental 
 

B. 
optimal 
 

C. 
ready-made 
 

D. 
statistical 
 

E. 
custom-made 
 
 

78.
In the context of making a choice, _____ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.  
 



A. 
benchmarking 
 

B. 
maximizing 
 

C. 
forecasting 
 

D. 
satisficing 
 

E. 
optimizing 
 
 

79.
Pat has to decide which paper clips to purchase for her office. She looks at the office supply catalog and picks the first one that is priced reasonably. Which method of making a decision does she use?  
 



A. 
Forecasting 
 

B. 
Optimizing 
 

C. 
Satisficing 
 

D. 
Maximizing 
 

E. 
Brainstorming 
 
 

80.
Managers who use the method of optimizing to make their decisions will attempt to choose:  
 



A. 
the first minimally acceptable alternative. 
 

B. 
among those alternatives with known results. 
 

C. 
the least expensive alternative. 
 

D. 
the alternative that produces the least conflict. 
 

E. 
an alternative that achieves the best possible balance among several goals. 
 
 

81.
In the context of formal decision making, which of the following is indicated by negative feedback?  
 



A. 
Too much time has been dedicated in implementing the decision. 
 

B. 
Implementation of the decision may need more resources. 
 

C. 
The decision has been made under undue pressure from top management. 
 

D. 
The problem has been incorrectly diagnosed. 
 

E. 
The decision has been unfairly beaten down by competitors. 
 
 

82.
The psychological bias known as illusion of control refers to:  
 



A. 
a decision bias influenced by the way in which a problem or decision alternative is phrased or presented. 
 

B. 
a belief that one can influence events even when one has no control over what will happen. 
 

C. 
a bias weighting short-term costs and benefits more heavily than longer-term costs and benefits. 
 

D. 
a condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges. 
 

E. 
a phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus. 
 
 

83.
Illusion of control, discounting the future, and framing effects are examples of:  
 



A. 
social realities. 
 

B. 
psychological biases. 
 

C. 
strategic planning steps. 
 

D. 
ready-made solutions. 
 

E. 
time pressures. 
 
 

84.
_____ refer(s) to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.  
 



A. 
Framing effects 
 

B. 
Discounting the future 
 

C. 
An illusion of control 
 

D. 
Social realities 
 

E. 
Time pressures 
 
 

85.
Discounting the future refers to:  
 



A. 
focusing on gains in the long run. 
 

B. 
failing to consider inflationary costs. 
 

C. 
underestimating the short-term effects of a decision. 
 

D. 
valuing short-term benefits more heavily than long-term benefits. 
 

E. 
failing to consider the effects of new entrants into the industry. 
 
 

86.
A company recently made changes to its organizational structure. While deciding upon the changes to be implemented, the company invited many employees to discuss the issue with the senior management. This enabled the employees to hear the relevant arguments both for the chosen alternative and against the rejected alternatives. An advantage of using employees in the group discussion was that:  
 



A. 
the employees dominated the discussions and promoted their ideas. 
 

B. 
the phenomenon of groupthink was encouraged. 
 

C. 
the satisficing method of decision making was employed. 
 

D. 
goal displacement was furthered. 
 

E. 
the employees understood why the decision was made. 
 
 

87.
An advantage in using a group for decision making is that it leads to:  
 



A. 
a higher level of commitment to the decision. 
 

B. 
domination by one member in leading the discussion. 
 

C. 
a phenomenon known as groupthink. 
 

D. 
the process of decision making known as satisficing. 
 

E. 
saving precious time, money, and resources. 
 
 

88.
In the context of making decisions in a group, when a strong leader makes his or her preferences clear, and the result is the same as it would have been if the leader had made the decision alone, it leads to a situation known as _____.  
 



A. 
groupthink 
 

B. 
satisficing 
 

C. 
domination 
 

D. 
brainstorming 
 

E. 
goal displacement 
 
 

89.
A phenomenon that occurs in decision-making when group members avoid disagreement as they strive for consensus is known as:  
 



A. 
goal displacement. 
 

B. 
domination. 
 

C. 
intuition. 
 

D. 
groupthink. 
 

E. 
brainstorming. 
 
 

90.
A meeting attended by five executives was being held at a company. A decision needed to be made about the following year's marketing campaign. Tony, an outspoken and aggressive person, insisted that his ideas be followed since there could not be a better alternative. Nobody else contributed to the discussion, and Tony’s views were accepted. This group discussion suffered from:  
 



A. 
groupthink. 
 

B. 
domination. 
 

C. 
satisficing. 
 

D. 
intellectual stimulation. 
 

E. 
goal displacement. 
 
 

91.
When a group accepts an alternative without taking the time or effort to explore many options, the group has reached a _____ decision.  
 



A. 
maximizing 
 

B. 
innovative 
 

C. 
satisficing 
 

D. 
constructive 
 

E. 
optimizing 
 
 

92.
_____ is a condition that occurs when a decision-making group loses sight of its original purpose and a new, less important aim emerges.  
 



A. 
Goal displacement 
 

B. 
Illusion of control 
 

C. 
Satisficing 
 

D. 
Brainstorming 
 

E. 
Groupthink 
 
 

93.
Leaders of decision-making groups should:  
 



A. 
discourage constructive conflict among the group members. 
 

B. 
encourage groupthink to speed up decision-making. 
 

C. 
reach a decision by employing the satisficing method. 
 

D. 
encourage multiple alternatives from a variety of perspectives. 
 

E. 
discourage exploring new alternatives in order to reach a conclusion faster. 
 
 

94.
In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Tiffany the job of criticizing ideas, for the sake of argument, throughout the meeting. Tiffany is playing the role of a:  
 



A. 
maximizer. 
 

B. 
devil's advocate. 
 

C. 
dialectic. 
 

D. 
strategic planner. 
 

E. 
dominator. 
 
 

95.
In an attempt to make a conflict between two employees less personal and emotional, their manager instructs them to approach the same problem from a different viewpoint. They have a structured debate and come to a conclusion that suits both employees. This is an example of using the _____ approach.  
 



A. 
maximizing 
 

B. 
satisficing 
 

C. 
devil's advocate 
 

D. 
dialectic 
 

E. 
goal displacement 
 
 

96.
Which of the following is true of brainstorming?  
 



A. 
The group is encouraged to say anything except to criticize other people. 
 

B. 
A time pressure is necessary to enhance creativity. 
 

C. 
Total and consistent agreement among group members can be useful. 
 

D. 
Innovative ideas must lead to immediate payoffs. 
 

E. 
Task-related conflict cannot hurt performance. 
 
 

 


Essay Questions
 

97.
To be effective, goals should have certain qualities, which can be recalled through the use of the acronym SMART. List and describe each of these characteristics. 
 




 


 


 


 
 

98.
Discuss strategic, tactical, and operational planning. What are the characteristics of each in terms of managerial level and level of detail?  
 




 


 


 


 
 

99.
In the context of a SWOT analysis, describe at least five elements of an environmental analysis. 
 




 


 


 


 
 

100.
Describe the two broad categories of resources and describe each one. Describe how resources can be a source of competitive advantage. 
 




 


 


 


 
 

101.
Describe low-cost and differentiation strategies, and how a business can achieve competitive advantage with either of them.  
 




 


 


 


 
 

102.
Differentiate between programmed and nonprogrammed decisions. Which type is more typical for managerial decisions?  
 




 


 


 


 
 

103.
List the six steps of a formal decision-making process. 
 




 


 


 


 
 

104.
Explain the four disadvantages of using a group to make decisions. 
 




 


 


 


 
 

 


Multiple Choice Questions
 

 
Use the paragraph given below to answer the following questions.
Scenario A. The senior management of Alpha Omega, Corp. have conducted a planning meeting. They need to make decisions about the following questions:
1. How many employees should be hired for the cafeteria this month?
2. Should the company expand into a new region in the next ten years?
3. How can the visibility of their marketing campaign be increased?
4. How can the biggest trucks in the business be scheduled for next week?
5. Should the company allow employees to work from home?
 

105.
Which of the following questions is related to strategic planning?  
 



A. 
How many employees should be hired for the cafeteria this month? 
 

B. 
How can the visibility of their marketing campaign be increased? 
 

C. 
How can the biggest trucks in the business be scheduled for next week? 
 

D. 
Should the company allow employees to work from home? 
 

E. 
Should the company expand into a new region in the next ten years? 
 
 

106.
The decision regarding the number of employees to be hired for the cafeteria is a part of operational planning because:  
 



A. 
it translates broad strategic goals and plans into specific goals and plans relevant to a particular portion of the organization. 
 

B. 
it focuses on the major actions a unit must take to fulfill its part of the strategic plan. 
 

C. 
it involves a specific procedure that is required at lower levels of the organization. 
 

D. 
it involves making decisions about the organization’s long-term goals and strategies. 
 

E. 
it has a strong external orientation and covers major portions of the organization. 
 
 

 
Use the information given below to answer the following questions. Scenario B. Chem-Free Natural Pharmaceuticals has completed a SWOT analysis as part of their ongoing strategic planning process. They have collected the following information:
1. New regulations have been passed limiting their ability to sell certain formulations over the counter.
2. As compared to their competitors, their management team is by far the best in the industry.
3. They have fallen behind in research and development in the last few years.
4. More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade.
5. The company has inadequate financial resources to invest in their operations. 
 

107.
In the context of the given scenario, which of the following is a strength of Chem-Free Natural Pharmaceuticals?  
 



A. 
New regulations have been passed limiting their ability to sell certain formulations over the counter. 
 

B. 
As compared to their competitors, their management team is by far the best in the industry. 
 

C. 
The company has inadequate financial resources to invest in their operations. 
 

D. 
They have fallen behind in research and development in the last few years. 
 

E. 
More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade. 
 
 

108.
In the context of the given scenario, which of the following is an opportunity for Chem-Free Natural Pharmaceuticals?  
 



A. 
New regulations have been passed limiting their ability to sell certain formulations over the counter. 
 

B. 
As compared to their competitors, their management team is by far the best in the industry. 
 

C. 
The company has inadequate financial resources to invest in their operations. 
 

D. 
They have fallen behind in research and development in the last few years. 
 

E. 
More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade. 
 
 

109.
In the context of the given scenario, which of the following is a threat for Chem-Free Natural Pharmaceuticals?  
 



A. 
New regulations have been passed limiting their ability to sell certain formulations over the counter. 
 

B. 
As compared to their competitors, their management team is by far the best in the industry. 
 

C. 
The company has inadequate financial resources to invest in their operations. 
 

D. 
They have fallen behind in research and development in the last few years. 
 

E. 
More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade. 
 
 

 
Scenario C. Use the information given below to answer the following questions. Shine cosmetics, a global company, is considering its corporate strategy. Several people on the board of directors believe they have the “perfect” strategy for the company. Joe believes that the best option is to continue their present strategy of offering cosmetics to customers who like the “look” of the products. Martin wants the company to expand by purchasing the manufacturing plants that produce Shine products. Cathy wants to add products like skin care and perfume to the product line. Ruth wants to develop the company by opening restaurants or setting up an amusement park. 
 

110.
Which of the following corporate strategies does Martin advocate?  
 



A. 
Concentration 
 

B. 
Vertical integration 
 

C. 
Related diversification 
 

D. 
Unrelated diversification 
 

E. 
Price skimming 
 
 

111.
Which of the following corporate strategies does Cathy advocate?  
 



A. 
Concentration 
 

B. 
Vertical integration 
 

C. 
Related diversification 
 

D. 
Unrelated diversification 
 

E. 
Price skimming 
 
 

112.
Which of the following corporate strategies does Ruth advocate?  
 



A. 
Concentration 
 

B. 
Vertical integration 
 

C. 
Related diversification 
 

D. 
Unrelated diversification 
 

E. 
Price skimming 
 
 

 
Scenario D. Use the information given below to answer the following questions. Healthy Day Regional Medical Center's management team has several decisions to make. They are:

1. Determine which patients have to be admitted the next day.

2. Decide whether to purchase the only other medical center in the region.

3. Decide which candidates will meet the requirements for the nursing training program.

4. Determine whether the medical center should diversify to include more advanced (and substantially more costly) technologies.

 
 

113.
Decision 4 is an example of a _____ decision.  
 



A. 
programmed 
 

B. 
nonprogrammed 
 

C. 
trivial 
 

D. 
certain 
 

E. 
risk-free 
 
 

114.
Decision 1 is a _____ decision because it can be solved using rules and procedure.  
 



A. 
tactical 
 

B. 
strategic 
 

C. 
programmed 
 

D. 
nonprogrammed 
 

E. 
risky 
 
 

115.
In the context of decision 3, if the authorities select the first candidate who meets the minimum requirements without examining every candidate's file to see if anyone else has better qualifications, they are adopting the method of:  
 



A. 
maximization. 
 

B. 
satisficing. 
 

C. 
optimizing. 
 

D. 
constraint. 
 

E. 
constructive conflict. 
 
 

Gallaway Inc. recently decided to expand from its original base in real estate to several wide-ranging industries such as trucking, lawn mower manufacturing, and catering. Gallaway is using the ________ corporate strategy.
 
________ is a condition that occurs when a decision-making group loses sight of its original purpose and a new, less important aim emerges.
 
In the context of managerial decision making, decision evaluation is useful
 
Which of the following steps in the formal planning process involves studying past events, examining current conditions, and forecasting future trends?
 
In the context of generating alternative solutions during the decision-making process, ________ solutions must be designed for specific problems.
 
In order to reduce production costs, Seuss Inc., an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as
 
In the context of making a choice, ________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.
 
The goal of ________ is to thoroughly understand the "best practices" of other firms and to undertake actions to achieve better performance and lower costs.


To be effective, an organization's strategic plans should focus on
 
________ is a psychological bias that applies to students who do not spend sufficient time studying.
 

 

Julia is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Julia is most likely searching for a(n) ________ solution to her problem.
 
Resources are a source of competitive advantage only when they are
 
All of the following are considered stakeholders except those groups and individuals
 

In the context of formal decision making, which of the following is indicated by negative feedback?
 
Which of the following is true of brainstorming?
 
A meeting was being held at a company, and was attended by five executives. A decision needed to be made about the following year's marketing campaign. Paul, an outspoken and aggressive person, insisted that his ideas be followed since there could not be a better alternative. No one else contributed to the discussion, and Paul's views were accepted. This group discussion suffered from
 
A plan to integrate employees into a new payroll system, assuming that it is not likely to be repeated in the foreseeable future, is an example of a ________ plan.
 
The outcome of a situational analysis is the
 
The level of planning involving the longest time horizon, usually ranging from three to seven years, is
 
The ________ step in the formal planning process, monitoring and controlling performance, identifies the priorities and trade-offs among the goals and plans.
 
Which of the following best describes the preferred approach for managers confronted with risk?
 
The first step in an ideal decision-making process is to
 
The ________ matrix is not a substitute for management judgment; it helps managers of businesses evaluate their strategy alternatives.
 
In the context of the strategic planning process, a critical task in environmental analysis is ________ future trends.
 
When a group accepts an alternative to end a meeting, the group has reached a(n) ________ decision.
 
________ planning involves a process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of an organization.
 
The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves
 
Which of the following is true of managerial decision making?
 
Resources are a source of competitive advantage except when they are
 
An advantage in using a group for decision making is that it