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279 Cards in this Set
- Front
- Back
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The construction company owned by Tom and Adam Smith – T & A Contracting- faces many challenges posed by its external environment. Of the following, which factor is most likely to be classed as belonging in the remote environment of T & A Contracting?
A) Competitors B) Ecological C) Labor D) Suppliers |
B) Ecological
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________ factors concern the nature and direction of the economy in which a firm operates.
A) Technological B) Ecological C) Social D) Economic |
D) Economic
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The social factors that affect a firm involve all of the following except _______.
A) the propensity of people to spend B) lifestyles of people C) attitudes of people in the external environment. D) values and beliefs of persons outside the firm |
A) the propensity of people to spend
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Political constraints are placed on firms through a variety of avenues except which one of the following?
A) Antitrust laws B) Fair trade decisions C) Discretionary responsibility D) Administrative jawboning |
C) Discretionary responsibility
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Which of the following is a false statement regarding the fourth set of factors – technological changes- in a firm's remote environment?
A) Technological changes rarely influence or promote innovation within firms. B) A technological breakthrough can have a sudden and dramatic effect on a firm's environment. C) To avoid obsolescence, a firm must be aware of technological changes that might influence its industry. D) Creative technological adaptations can suggest possibilities for new products. |
A) Technological changes rarely influence or promote innovation within firms.
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The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operations is best identified as which one of the following?
A) Ecology B) Economies of scale C) Technological forecasting D) Environmental scanning |
C) Technological forecasting
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The most prominent factor found in the remote environment of businesses is most often that of the reciprocal relationship between those businesses and the ecology. Specific ecological concerns focus on all but which one of the following?
A) Global warming B) Fair labor standards C) Loss of habitat D) Air and water pollution |
B) Fair labor standards
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Which one of the following would not be considered a method a firm can engage in to enhance an eco-efficient strategy?
A) Reducing waste while enlarging product packaging size B) Controlling property acquisitions and use to preserve habitats C) Implementing energy-conserving activities D) Developing corporate standards |
A) Reducing waste while enlarging product packaging size
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The general conditions for competition that influences businesses, which provide similar products and services is best referred to as a/an ________.
A) remote environment B) international environment C) external environment D) industry environment |
D) industry environment
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Of the following, which one is least likely to be used to make an assessment of the economic environment that is associated with the international dimension of the global environment?
A) Gross national product B) Currency convertibility C) Foreign policy D) Social infrastructure |
C) Foreign policy
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When discussing the forces associated with driving industry competition, which of the following would be least likely associated with determinants of entry?
A) Governmental policy B) Diversity of competitors C) Proprietary curve D) Capital requirements |
B) Diversity of competitors
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Which one of the following would not be considered one of the major sources of barriers to entry?
A) Economies of scale B) Capital requirements C) Powerful suppliers D) Government policy |
C) Powerful suppliers
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All of the following except _____ would indicate a supplier group is powerful.
A) it is dominated by a few companies B) its product is at least, differentiated C) it poses a credible threat of integrating forward into the industry's business D) it has no built-up switching costs |
D) it has no built-up switching costs
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A buyer group would be considered to be powerful if all of the following were present except which one?
A) It earns high profits. B) It is concentrated or purchases in large volumes. C) The buyers pose a credible threat of integrating backward to make the industry's product. D) It purchases standard products. |
A) It earns high profits.
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A/an _________ is a collection of firms that offer similar products or services such as IBM, Apple, and Dell.
A) concentration B) industry C) collaborative approach D) operating environment |
B) industry
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Defining the boundaries of an industry can be a very difficult task. This difficulty stems from all of the following except which one?
A) Industries are very static in nature. B) Industrial evolution creates industries within industries. C) Industries are becoming more global in scope. D) The evolution of industries over time creates new threats and opportunities. |
Industries are very static in nature.
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The U.S. aircraft manufacturing industry is an example of an industry that is _______.
A) plagued by economies of scale B) concentric C) eco-efficient D) highly concentrated |
D) highly concentrated
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The conditions that a company must satisfy in order to be able to enter an industry are best referred to as its _______.
A) economies of scale B) barriers to entry C) differentiation D) competitive environment |
B) barriers to entry
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The operating environment of a firm comprises factors in the competitive situation that affect its success in acquiring needed resources. Which one of the following would not be considered one of these most important factors?
A) The firm's competitive position B) The composition of its customers C) Its ability to attract employees D) Its reputation in the internal environment |
D) Its reputation in the internal environment
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All of the following except ________ would be considered true statements about customer profiles.
A) developing a profile of present and prospective customers improves the ability of an organization to plan strategic actions B) extensive customer profiling can be considered an invasive and illegal action and so must be undertaken with discretion C) assessing customer behavior is a key element in the process of satisfying target market needs D) the traditional approach to segmenting customers is based on customer profiles |
C) assessing customer behavior is a key element in the process of satisfying target market needs
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For the past two years the Broken Arrow Corporation has been planning to expand its operations in order to reach out to the market arenas of the world. Its future plans include continuation of its standardized product line to be offered within the new marketplaces. Essentially, the Broken Arrow Corporation desires to _____________.
A) become a multidomestic industry B) develop a polycentric orientation C) embrace globalization D) engage stakeholder activism |
C) embrace globalization
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As a corporation grows into that of being a global operation, it can expect to undergo the need for various progressively involved strategy levels. At which level should a corporation most likely expect to face the challenge of foreign licensing and technology transfer?
A) First level B) Final level C) Third level D) Second level |
D) Second level
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All of the following except _________ would be considered rationales for why an organization may wish to globalize its operations in the international marketplace.
A) to gain a competitive weapon B) realization of domination of the domestic market C) acquiring opportunities to expand into new industries D) gaining advantage in technology |
B) realization of domination of the domestic market
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When the values and priorities of the parent organization guide the strategic decision making of all its international operations, it can be said there is a/an _______ present within the organization.
A) polycentric orientation B) regiocentric orientation C) ethnocentric orientation D) geocentric orientation |
C) ethnocentric orientation
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A corporation with a/an ________ is likely to adopt a global systems approach to its strategic decision making that empathizes global integration.
A) geocentric orientation B) ethnocentric orientation. C) regiocentric orientation D) polycentric orientation |
A) geocentric orientation
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The concept of ________ can be exemplified by stating the following; 'Operations in more than one national environment provide opportunities to combine benefits from one location with another, which is impossible without both of them.'
A) prestige B) economies of scale C) chance D) synergy |
D) synergy
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All of the following would be considered true about a firm at the start of its globalization process except which one?
A) External assessments must be conducted before a firm enters global markets. B) Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace. C) The firm must pay particular attention to the host nation's political control and economic progress. D) Internal assessments must be conducted prior to the firm attempting to enter the global arena. |
B) Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace.
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Which one of the following would not be considered a factor that contributes to the increase in the complexity found within today's global environment?
A) Global organizations are able to fully utilize differences in industry structures that are encountered. B) Global organizations face multiple legal, social, and cultural environments that change at different rates. C) Global organizations face extreme competition. D) Global organizations are restricted in their selection of competing strategies by various regional and economic constraints. |
A) Global organizations are able to fully utilize differences in industry structures that are encountered.
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Of the following, which one is least likely to be classed as creating or contributing to the control problems a global firm may face?
A) Minimal attention is paid to the host country's goals B) Disposition of earnings is made more complex because of the different financial environments involved C) Various schemes are engaged to shift earnings from one country to another in avoidance of taxes D) Different financial environments simplify the various sources of finance |
D) Different financial environments simplify the various sources of finance
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Demands placed on a global firm by the stakeholders in the environments in which it operates are best referred to as ______.
A) polycentric orientation B) regiocentric orientation C) stakeholder activism D) social infrastructure failure |
C) stakeholder activism
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A/An _______ is an industry in which competition is segmented from country to country.
A) polycentric industry B) multidomestic industry C) global industry D) ethnocentric industry |
B) multidomestic industry
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All of the following would be classed as true regarding a multidomestic industry except which one?
A) Competition is segmented from country to country. B) Competition in one country is independent of competition in other countries. C) Subsidiaries of organizations should all be managed exactly the same. D) Retailing and insurance are examples of multidomestic industries. |
C) Subsidiaries of organizations should all be managed exactly the same.
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A/An ______ is one in which competition crosses national borders on a worldwide basis.
A) global industry B) domestic industry C) international industry D) multidomestic industry |
A) global industry
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Due to the rapid changes in the world, experts have indicated that corporate strategic management planning must be global for a variety of reasons. Which one of the following is least likely to be recognized as one of these rationales?
A) The scope of the global management task has increased. B) Global competition has significantly increased. C) The development of technology improvements has started to decline. D) The world's stock of knowledge is doubling about every ten years. |
C) The development of technology improvements has started to decline.
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Of the following, which one is least likely to be a factor that makes for the creation of a global industry?
A) The presence of homogeneous product needs across markets B) The absence of economies of scale C) Expectancy of consistency of products and services across markets D) More than one market is required to recapture expenses associated with R&D |
B) The absence of economies of scale
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Which one of the following would not be considered to be a factor that would drive the success of global companies?
A) Management of subsidiaries is controlled by the home country. B) Cross-country alliances are formed. C) Management teams include foreign nationals. D) Shares are listed on foreign exchanges. |
A) Management of subsidiaries is controlled by the home country.
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If an organization has made the choice to utilize a pure global strategy, which one of the following would be most accurate about its functional activities?
A) There is most likely low coordination and geographic dispersion of the functional activities. B) There is most likely high coordination and geographic dispersion of the functional activities. C) There is most likely low coordination and geographic concentration of the functional activities. D) There is most likely high coordination and geographic concentration of the functional activities. |
D) There is most likely high coordination and geographic concentration of the functional activities.
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________ refers to the number of critical success factors that are required to prosper in a given competitive arena.
A) Formality B) Complexity C) Diversity D) Franchising |
B) Complexity
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The primary niche market approach for a company that wants to export is to do which one of the following?
A) Utilize only U.S. product criteria B) Modify product characteristics to reflect U.S. considerations C) Prepare to invest large sums of capital D) Modify select product performance to meet special foreign demands |
D) Modify select product performance to meet special foreign demands
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______ is best described as money from private sources that is invested by a venture capital company in start-ups and other risky small and medium sized enterprises.
A) Global finance B) Foreign branching C) Private equity D) Joint venturing |
C) Private equity
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Simon Ize is the owner of a company (2-Shine Simon Ize-It) that specializes in a variety of floor waxing and polishing products. His company managers are in the process of finding answers to such questions as: How well is our current strategy working? and What is our current situation? In order to obtain the answers to these types of questions Simon's company is most likely to conduct which one of the following?
A) Analysis of strengths and weaknesses B) SWOT analysis C) Analysis of weaknesses and threats D) Strategic brainstorming session |
B) SWOT analysis
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The 2-Shine Simon Ize-It Company wants to know the major favorable situations that exist in its environment. Essentially, the company wants to gain understanding of its _________.
A) strengths B) weaknesses C) threats D) opportunities |
D) opportunities
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All of the following would represent possible threats to the 2-Shine Simon Ize-It Company except which one of the following?
A) Entrance of new competitors B) Improved buyer or supplier relationships C) New or revised regulations D) Slow market growth |
B) Improved buyer or supplier relationships
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All of the following except which one would be considered a weakness to a business such as the one owned by Simon Ize?
A) Maturing markets B) Limited industry expertise C) Brand name D) Limited financial resources |
C) Brand name
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Utilizing a SWOT analysis diagram, one would expect to find which piece of information about the company in question in Cell 2?
A) Supports a diversification strategy B) Supports a defensive strategy C) Supports an aggressive strategy D) Supports a turnaround-oriented strategy |
A) Supports a diversification strategy
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All but which one of the following would be considered a limiting factor or influence to a SWOT analysis?
A) The analysis can overemphasize a single strength. B) The SWOT analysis can ignore changing circumstances. C) It can recognize that a strength is always a source of competitive advantage. D) The analysis can downplay external threats. |
C) It can recognize that a strength is always a source of competitive advantage.
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________ attempts to understand how a business creates customer value by examining the contributions of different activities within a business to that value.
A) Internal analysis B) Value chain analysis C) A value chain D) SWOT analysis |
B) Value chain analysis
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Primary activities conducted by a firm are those that are involved in the creation, marketing, and transfer of the product to the buyer. Which one of the following would not be considered a primary activity?
A) Procurement B) Marketing and Sales C) Inbound logistics D) Service |
A) Procurement
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The activities in a firm that assist the firm as a whole by providing infrastructure or inputs that allow other activities to take place on an ongoing basis are best known as _________.
A) procurements B) primary activities C) secondary activities D) support activities |
D) support activities
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The initial step in value chain analysis is most often which one of the following?
A) Conducting an internal analysis B) Determining efficient cost allocations C) Division of a company's operations into specific activities or processes D) Study of the social infrastructure |
C) Division of a company's operations into specific activities or processes
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Several difficulties are associated with the usage of activity-based cost accounting methods. Of the following, which one is least likely to be classed as a difficulty associated with this method?
A) Creation of redundant work B) Identification of sources of differentiation C) Time and energy involved D) Efficient allocation of selected resources across multiple activities |
B) Identification of sources of differentiation
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The _______ is a method of analyzing and identifying a firm's strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles as an organization.
A) value chain analysis B) activity-based cost accounting method. C) resource-based view D) SWOT analysis |
C) resource-based view
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The tangible assets of a firm such as Gary's Two-Can Tan Company would include all but which one of the following?
A) Its trademark. B) Its raw materials. C) Its financial resources. D) Its computer systems. |
A) Its trademark.
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______ would include the skills that a company uses to transform inputs into outputs.
A) Value chains B) Intangible assets C) Organizational capabilities D) Tangible assets |
C) Organizational capabilities
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Which one of the following would not be a characteristic that can assist a resource to be considered valuable?
A) It is critical to being able to meet a customer's need. B) It is readily available and plentiful. C) It is durable over time. D) It drives a key portion of overall profits. |
B) It is readily available and plentiful.
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Characteristics that make resources difficult to imitate are best referred to as ______.
A) isolating mechanisms B) causal ambiguities C) economic deterrences D) path-dependent resources |
A) isolating mechanisms
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Isolating mechanisms would include all but which one of the following?
A) Economic deterrence B) Causal ambiguity C) Path-dependent resources D) Physically similar resources |
D) Physically similar resources
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In order to fully utilize the resource-based view in internal analysis, a firm must first identify and evaluate its resources to find those that provide the basis for future competitive advantage. When conducting this, it is usually helpful to do all but which one of the following?
A) Look at organizational processes and combinations of resources rather than only isolated assets or capabilities. B) Engage in a divisional approach. C) Utilize a functional perspective. D) Disaggregate resources. |
B) Engage in a divisional approach.
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Managers and strategists rely on various perspectives when evaluating how their firms stack up on internal capabilities. Which one of the following would not be considered one of the perspectives that is most likely to be used?
A) Comparison with competitors B) Comparison with past performance C) Comparison with industry success factors D) Comparison with previous financial reports |
D) Comparison with previous financial reports
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Comparing the way one company performs a specific activity with that of a competitor or other company doing the same thing is called _______.
A) disaggregating B) brainstorming C) benchmarking D) internal analysis |
C) benchmarking
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Race represents an external dimension of diversity.
A) True B) False |
B) False
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Internal dimensions of diversity contain an element of control or choice.
A) True B) False |
B) False
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Current day minority groups do not experience their own glass ceiling.
A) True B) False |
B) False
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The Family & Medical Leave Act of 1993 requires employers to provide 12 weeks of unpaid leave for medical and family reasons, including childbirth, adoption, or family emergency.
A) True B) False |
A) True
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Team performance is positively related to a team's diversity in gender, ethnicity, age and education.
A) True B) False |
A) True
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__________ is an example of an external dimension of diversity.
A) Religion B) Race C) Gender D) Personality E) Union affiliation |
A) Religion
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Affirmative action is __________ driven.
A) ethically B) strategically C) pragmatically D) behaviorally E) legally |
E) Legally
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All of the following are tips for women to advance to senior positions and career success except:
A) Seek mentors for different purposes B) Learn to play golf C) Build social capital D) Don't boast about accomplishments E) Seek work life balance |
D) Don't boast about accomplishments
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Which of the following is NOT one of the Generic Action Options for handling diversity according to R Roosevelt Thomas Jr.?
A) Deny B) Suppress C) Tolerate D) Affirmative Action E) Foster Mutual Adaptation |
D) Affirmative Action
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Which of the following Generic Action Options for handling diversity states that all diverse people will learn to fit in or become like the dominant group?
A) Suppression B) Toleration C) Assimilation D) Building relationships E) None of these |
C) Assimilation
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Organizational culture is the set of shared, taken-for-granted implicit assumptions held by a group that determines how the group perceives, thinks about, and reacts to its various environments.
A) True B) False |
A) True
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Enacted values represent the explicitly stated values and norms that are preferred by an organization.
A) True B) False |
B) False
represent the values and norms that actually are exhibited or converted into employee behavior. They represent the values that employees ascribe to an organization based on their observations of what occurs on a daily basis. |
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A clan culture has an internal focus and values flexibility rather than stability and control.
A) True B) False |
A) True
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Employees working in organizations with hierarchical or market-based cultures reported lower job satisfaction and organizational commitment, but have greater intention to keep their jobs.
A) True B) False |
B) False
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The encounter phase is the last stage in the organizational socialization process.
A) True B) False |
B) False
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___________ is a long term plan outlining actions needed to achieve a desired result.
A) Vision B) Formal Statement C) Strategic Plan D) Cultural Change Plan E) None of the above |
C) Strategic Plan
According to the text, strategic plans outline the long-term goals of the organization and spell out what is needed to meet those goals. |
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Which of the following is an example of a psychosocial function of mentoring?
A) Sponsorship. B) Coaching. C) Protection. D) Providing exposure and visibility. E) Friendship. |
E) Friendship.
Research by Kathy Bram of Boston University indicates that the mentoring process has five career functions (sponsorship, exposure-and-visibility, coaching, protection, and challenging assignments) and four psychosocial functions (role modeling, acceptance-and-confirmation, counseling, and friendship). |
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In the __________ phase of the organizational socialization process, employees begin to learn what the organization is really like. This phase begins when the employment contract is signed.
A) encounter B) cultivation C) anticipatory socialization D) change and acquisition E) separation |
A) encounter
According to Feldman's three-phase model of organizational socialization, the encounter phase begins at employment contract inception and is when the new employee's expectations meet the reality of the organization. |
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A __________ developmental network is composed of a few weak ties from one social system such as an employer or professional association.
A) receptive B) traditional C) entrepreneurial D) opportunistic E) encounter |
A) receptive
According to research by Higgins and Kram, a network that is comprised of weak ties all coming from the same social system receptive developmental network is composed of a few weak ties from the same social system is known as a receptive developmental network. |
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The __________ network is the strongest type of developmental network.
A) receptive B) traditional C) entrepreneurial D) opportunistic E) encounter |
C) entrepreneurial
According to research by Higgins and Kram, the entrepreneurial network is comprised of several strong ties from different social systems making it the strongest type of developmental network. |
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Sustainability represents “a company’s ability to make a profit without sacrificing the resources of its people, the community, and the planet.
A) True B) False |
A) True
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An adhocracy culture has an external focus and values flexibility,
A) True B) False |
A) True This type of culture fosters the creation of innovative products and services by being adaptable, creative, and fast to respond to changes in the marketplace. Adhocracy cultures do not rely on the type of centralized power and authority relationships that are part of market and hierarchical cultures. They also encourage employees to take risks, think outside the box, and experiment with new ways of getting things done.
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A market culture has a strong external focus and values stability and control.
A) True B) False |
A) True
Organizations with this culture are driven by competition and a strong desire to deliver results and accomplish goals. Because this type of culture is focused on the external environment, customers and profits take precedence over employee development and satisfaction. |
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Self-esteem is a belief about one's own self-worth based on an overall self-evaluation.
A) True B) False |
A) True
Self-esteem is measured by having survey respondents indicate their agreement or disagreement with both positive and negative statements. |
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Complex, challenging and autonomous jobs tend to enhance perceived self-efficacy while boring, tedious jobs tend to lower perceived self-efficacy.
A) True B) False |
A) True
Self-efficacy is a person’s belief about his or her chances of successfully accomplishing a specific task. |
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Low self-monitors are sometimes criticized for being on their own planet and insensitive to others.
A) True B) False |
A) True
Self-monitoring is the extent to which a person observes his or her own self-expressive behavior and adapts it to the demands of the situation. |
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Among the Big Five personality dimensions, conscientiousness had the strongest positive correlation with job and training performance.
A) True B) False |
A) True
According to the researchers, “those individuals who exhibit traits associated with a strong sense of purpose, obligation, and persistence generally perform better than those who do not. |
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People with proactive personalities tend to experience less individual, team, and organizational success.
A) True B) False |
B) False
the proactive personality in these terms: “someone who is relatively unconstrained by situational forces and who effects environmental change. Proactive people identify opportunities and act on them, show initiative, take action, and persevere until meaningful change occurs. |
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An internal locus of control should be tempered with ___________ so that healthy characteristics such as self-confidence, self-esteem, and self-assessment don't turn into over-confidence, narcissism, and stubbornness.
A) self-monitoring B) ethnocentrism C) humility D) conscientiousness E) extraversion |
C) humility
By definition, someone with an internal locus of control tends to assign causation of their outcomes to themselves. Without being considerate of other factors that may have contributed to their success, "Internals" may become over-confident, narcissistic and stubborn. According to the text, humility is defined as considering the contributions of others and good fortune when gauging one's success. |
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__________ occurs when organizational values or beliefs become part of one's self-identity.
A) Organizational identity B) A congruent emotion C) Self-esteem D) Emotional intelligence E) Self-efficacy |
A) Organizational identity
According to research cited in the text, organizational identity is defined as occurring when organizational values or beliefs become part of one's self-identity. |
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Regarding the Big Five personality dimensions, a person scoring high on __________ is outgoing, talkative, sociable, and assertive.
A) extraversion B) agreeableness C) conscientiousness D) emotional stability E) openness to experience |
A) extraversion
While all 5 answer choices are dimensions of personality presented in the Big Five, only extraversion is defined as being outgoing, talkative, sociable and assertive. |
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_________ is a goal congruent emotion.
A) Pride B) Anger C) Sadness D) Disgust E) Guilt |
A) Pride
While all 5 answer choices are emotions, research by Lazarus that is discussed in the book indicates that only pride is a goal congruent emotion - the others are goal incongruent. |
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__________ is a goal incongruent emotion.
A) Pride B) Love C) Relief D) Anger E) Joy |
D) Anger
While all 5 answer choices are emotions, research by Lazarus that is discussed in the book indicates that only anger is a goal incongruent emotion - the others are goal congruent. |
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Values are relatively unstable and do not influence our behaviour.
A) True B) False |
B) False
Personal values essentially represent the things that have meaning to us in our lives. Values are important to your understanding of organizational behavior because they influence our behavior across different settings. |
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The discrepancy models of job satisfaction propose that satisfaction is determined by the extent to which the characteristics of a job allow an individual to fulfill his or her needs.
A) True B) False |
B) False
job satisfaction is an affective or emotional response toward various facets of one’s job. This definition implies job satisfaction is not a unitary concept. Rather, a person can be relatively satisfied with one aspect of his or her job and dissatisfied with one or more other aspects. |
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Research on the correlates of job satisfaction discovered a strong, negative relationship between perceived stress on the job and job satisfaction.
A) True B) False |
A) True
Results uncovered significant positive relationships between business-unit-level employee satisfaction and business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents.96 It thus appears managers can positively affect a variety of important organizational outcomes, including performance, by increasing employee job satisfaction. |
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Interpersonal value conflict occurs when values espoused and enacted by the organization collide with employees' personal values.
A) True B) False |
B) False
his type of value conflict often is at the core of personality conflicts, and such conflicts can negatively affect one’s career. |
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Value congruence is associated with positive job outcomes such as career success, satisfaction and lower turnover intentions.
A) True B) False |
A) True
Value congruence or person–culture fit reflects the similarity between an individual’s personal values and the cultural value system of an organization. This is an important type of conflict to consider when accepting future jobs because positive outcomes such as satisfaction, commitment, performance, career success, reduced stress, and lower turnover intentions are realized when an individual’s personal values are similar or aligned with organizational values. |
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More women in the paid workforce, more dual-income families, more single working parents, and an aging population that gives mid-career employees day care or elder care responsibilities are all factors serving to increase
A) work/family life conflict. B) job satisfaction. C) organizational identification. D) self-esteem. E) self-efficacy. |
A) work/family life conflict.
ccording to the text, "A complex web of demographic and economic factors makes the balancing act between job and life very challenging for most of us". All of the factors described in the question are all current issues that will be occurring for a long time into the future. |
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Leon Festinger theorized that people will seek to __________ through one of three main methods: changing one's attitude, behavior or both; belittling the importance of the inconsistent behavior; or finding consonant elements that are more important.
A) increase job satisfaction B) decrease job satisfaction C) increase cognitive dissonance D) reduce cognitive dissonance E) increase self-esteem |
D) reduce cognitive dissonance
ccording to the text, Festinger's research was on cognitive dissonance and it indicated that people will attempt to reduce cognitive dissonance and the three methods named in the question were identified by Festinger. cognitive dissonance: Psychological discomfort experienced when attitudes and behavior are inconsistent. |
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The __________ is the feelings or emotions one has about an object or situation.
A) behavioral component B) value similarity C) cognitive dissonance D) value congruence E) affective component |
E) affective component
According to the text, the behavioural component of an attitude is how one intends to act or behave toward someone or something while the affective component is defined as the feelings or emotions one has about an object or situation. The affective component of an attitude contains the feelings or emotions one has about a given object or situation. |
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According to the __________ model of job satisfaction, satisfaction is a function of how "fairly" an individual is treated and occurs when one's perception that work outcomes, relative to inputs, compare favorably with a significant other's outcomes/inputs.
A) need fulfillment B) discrepancy C) value attainment D) equity E) dispositional/genetic |
D) equity
According to the text, the equity model of job satisfaction is related to fairness in the workplace.In this model, satisfaction is a function of how “fairly” an individual is treated at work. Satisfaction results from one’s perception that work outcomes, relative to inputs, compare favorably with a significant other’s outcomes/inputs. |
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A(n) __________ represents an employee's beliefs about what he or she is entitled to receive in return for what he or she provides to the organization.
A) cognitive style B) met expectation C) psychological contract D) individual/organizational value conflict E) interindividual value conflict |
C) psychological contract
According to research cited in the text, the term "psychological contract" is defined as an individual's perception about the terms and conditions of a reciprocal exchange with another party. This indicates that the psychological contract would be applicable to the situation described in the question. |
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In the four-phase process of social information processing, the encoding stage involves storing information in long-term memory.
A) True B) False |
B) False
Three of the stages in this model—selective attention/comprehension, encoding and simplification, and storage and retention—describe how specific information and environmental stimuli are observed and stored in memory. The fourth and final stage, retrieval and response, involves turning mental representations into real-world judgments and decisions. |
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A 65 year-old university student would be a salient stimulus.
A) True B) False |
A) True
Something is salient when it stands out from its context |
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The contrast effect is the tendency to evaluate people or objects by comparing them with characteristics of recently observed people or objects.
A) True B) False |
A) True
The tendency to evaluate people or objects by comparing them with characteristics of recently observed people or objects |
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According to Kelley, people make causal attributions after gathering information about three dimensions of behavior: consensus, distinctiveness, and consistency.
A) True B) False |
A) True
, causal attributions are suspected or inferred causes of behavior. Even though our causal attributions tend to be self-serving and are often invalid, it is important to understand how people formulate attributions because they profoundly affect organizational behavior. |
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The fundamental attribution bias represents a person's tendency to attribute another individual's behavior to his or her personal characteristics, as opposed to situational factors.
A) True B) False |
A) True
The fundamental attribution bias reflects one’s tendency to attribute another person’s behavior to his or her personal characteristics, as opposed to situational factors. This bias causes perceivers to ignore important environmental forces that often significantly affect behavior. |
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According to the social information processing model, the __________ stage involves depositing information in long-term memory.
A) storage and retention B) retrieval and response C) selective attention and comprehension D) encoding and simplification E) decoding and interpretation |
A) storage and retention
The social information processing model is a four stage model and includes the stages of selective attention and comprehension, interpretation, encoding and simplification, storage and retention, and retrieval and response. The storage and retention stage is the stage where information is deposited into long-term memory. |
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The __________ perceptual error represents the tendency to form an overall impression about a person and then use that impression to bias ratings about the person.
A) contrast effect B) recency effect C) central tendency D) leniency E) halo |
E) halo
The text lists 5 commonly found perceptual errors including halo effects, leniency effects, central tendency, recency effects, and contrast effects. The halo effect is described as the tendency to form overall impressions about persons and that impression biases their ratings about that person. |
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According to Kelley's model of attribution, __________ means that an individual has performed the task in question in a significantly different manner than he or she has performed other tasks.
A) low consistency B) low distinctiveness C) low consensus D) high distinctiveness E) high consensus |
D) high distinctiveness
Kelley's model identifies three dimensions of behaviour: high or low consensus, high or low distinctiveness, and high or low consistency that are used to make causal attributions. The question describes high distinctiveness. |
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According to one expert, all of the following are recommendations for designing an effective web page except:
A) Images in the middle of the page can present an obstacle course B) Surfers connect will with images of people looking directly at them C) Individuals read Web pages in F pattern D) People respond to pictures that provide useful information. E) All of the above are correct |
E) All of the above are correct
Based on research about what catches a website viewer's attention, one expert cited in the text offered several recommendations concerning how one should design an effective web page. All of the answers are listed in these recommendations. |
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The __________ reflects one's tendency to take more personal responsibility for success than for failure.
A) fundamental attribution bias B) self-serving bias C) halo perceptual error D) leniency perceptual error E) central tendency perceptual error |
B) self-serving bias
According to research cited in the text, there are two attributional tendencies that distort one's interpretation of observed behaviour - the fundamental attribution bias and the selfserving bias. The question describes the self-serving bias. |
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Maslow viewed esteem as the highest step in his proposed hierarchy of needs.
A) True B) False |
B) False
1. Physiological. Most basic need. Entails having enough food, air, and water to survive. 2. Safety. Consists of the need to be safe from physical and psychological harm. 3. Love. The desire to be loved and to love. Contains the needs for affection and belonging. 4. Esteem. Need for reputation, prestige, and recognition from others. Also contains need for self-confidence and strength. 5. Self-actualization. Desire for self-fulfillment—to become the best one is capable of becoming. |
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The need for affiliation is defined as the desire to spend time in social relationships and activities.
A) True B) False |
A) True
People with a high need for affiliation prefer to spend more time maintaining social relationships, joining groups, and wanting to be loved. Individuals high in this need are not the most effective managers or leaders because they tend to avoid conflict, have a hard time making difficult decisions without worrying about being disliked, and avoid giving others negative feedback |
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Designing jobs according to the principles of scientific management tends to increase efficiency and productivity, but also leads to simplified and repetitive jobs.
A) True B) False |
A) True
Scientific management is “that kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning.”69 Taylor’s approach focused on using research and experimentation to determine the most efficient way to perform jobs. |
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According to Frederick Herzberg, hygiene factors are job characteristics associated with job dissatisfaction.
A) True B) False |
A) True
Job satisfaction was more frequently associated with achievement, recognition, characteristics of the work, responsibility, and advancement.Herzberg found job dissatisfaction to be associated primarily with factors in the work context or environment. Specifically, company policy and administration, technical supervision, salary, interpersonal relations with one’s supervisor, and working conditions were most frequently mentioned by employees expressing job dissatisfaction. |
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Horizontal loading consists of giving employees more responsibility by taking on tasks normally performed by their supervisors.
A) True B) False |
B) False
Job enlargement involves putting more variety into a worker’s job by combining specialized tasks of comparable difficulty. Some call this horizontally loading the job. |
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In Maslow's need hierarchy, the __________ need is the most basic need, involving having enough food, air, and water to survive.
A) esteem B) safety C) physiological D) self-actualization E) love |
C) physiological
Maslow identified a hierarchy comprised of five basic needs: physiological, safety, love, esteem, and self-actualization. According to the model, the physiological needs are the most basic. |
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According to Herzberg's motivator-hygiene model, which of the following is a motivator?
A) Working conditions. B) Company policies. C) Supervisor relations. D) Recognition. E) Salary. |
D) Recognition.
Herzberg's model identifies two groups of factors – hygiene factors and motivator factors. In the text, it explains that company policies, supervisor relations, working conditions and salary were all related to the context or environment of the job. Recognition is not. |
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Which of the following is not one of the key motivational approaches to job design discussed in the text?
A) job enlargement B) job rotation C) job enrichment D) job organization E) All above are motivational approaches |
D) job organization
The motivational approaches to job design include: job enlargement, job enrichment, job rotation and the Job Characteristics Model |
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According to the job characteristics model, __________ represents the extent to which an employee receives direct and clear information about how effectively he or she is performing the job.
A) feedback B) autonomy C) task significance D) skill variety E) task identity |
A) feedback
While all five of the answer choices represent core job characteristics as described in the Job Characteristics Model, the question is specifically describing feedback. |
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Distributive justice is defined as:
A) The perceived fairness of how resources and rewards are distributed B) The perceived fairness of process and procedure used to make allocation decisions C) The perceived fairness of how procedures are used D) The extents to which people feel fairly treated when procedures are implemented E) When employee's perceptions of procedural justice are enhanced because they have a voice in the decision-making process |
A) The perceived fairness of how resources and rewards are distributed
According to the text, the definition of distributive justice is the perceived fairness of how resources and rewards are distributed. |
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Research indicates that employees with little tenure are more likely to seek feedback than long-tenured employees.
A) True B) False |
A) True
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Personal feelings of self-esteem are an example of an extrinsic reward.
A) True B) False |
B) False
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Rewarding an employee based on his or her tenure is an example of a reward based on nonperformance criteria.
A) True B) False |
A) True
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Hourly pay is an example of a fixed interval reinforcement schedule.
A) True B) False |
A) True
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According to the guidelines for SMART goals, the more vague the goal the more effective it is.
A) True B) False |
B) False
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Money is an example of a(n) __________ reward.
A) social B) intrinsic C) psychic D) extrinsic E) abstract |
D) extrinsic
As the text explains, Extrinsic rewards are financial, material, or social rewards that come from the environment while intrinsic rewards are the self-granted or psychic rewards. Money is a financial reward that comes from outside of the individual. |
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Distributing rewards based on how well an employee cooperates with other employees is an example of the __________ distribution criteria.
A) performance/results B) performance/traits C) performance/actions and behaviors D) nonperformance considerations E) extraperformance considerations |
C) performance/actions and behaviors
According to an expert cited in the text, there are three general criteria concerning the distribution of rewards: Performance based on results - which are the tangible outcomes such as individual, group, or organization performance or the quantity and quality of performance; Performance based on actions and behaviors – which would be comprised of things like teamwork, cooperation, risk taking, and creativity; and Nonperformance considerations – which are customary or contractual in which things like the type of job, nature of the work, equity, tenure, or level in hierarchy are rewarded. As such, the question describes a distribution system using performance based on actions and behaviors. |
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Reflexively withdrawing one's hand from a hot stove is an example of
A) operant behavior. B) punishment. C) a behavioral contingency. D) respondent behavior. E) negative reinforcement |
D) respondent behavior.
According to Skinner, operant behaviors are learned, consequence-shaped behaviour whereas respondent behaviors are unlearned stimulus–response reflexes. Withdrawing our hand from a hot stove is a reflex, not something we must learn. |
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You decide to get rid of your boyfriend or girlfriend by refusing to answer his/her phone calls. You are using a(n) __________ strategy to end the relationship.
A) positive reinforcement B) negative reinforcement C) punishment D) extinction E) shaping |
D) extinction
According to the text, we are using extinction to shape behavior when we are attempting to make a behavior occur less often by ignoring or not reinforcing it. This is the technique being described in the question. |
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Employees with a clear _______ understand the organization's strategic goals and know what actions they need to take, both individually and as team members.
A) Behavior shaping B) Positive reinforcement C) Line of sight D) Upward feedback E) Perception of feedback |
C) Line of sight
According to the text, the definition of "Line of sight" is when an employee knows and understands the organization's strategic goals and what they need to do in order to contribute to the achievement of those goals. |
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A flight attendant crew is an example of a project team.
A) True B) False |
B) False
Projects require creative problem solving, often involving the application of specialized knowledge. Since projects focus on a specific outcome (e.g., developing a new vaccine, producing a movie, or building a skyscraper), time is critical and the team may disband upon completion of the project. The trend in product development today is toward cross-functional teams that bring together specialists from production, marketing, and finance from around the world. |
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One of the five steps in the evolution of a team is when accountability becomes very individualized rather than collective accountability.
A) True B) False |
B) False
a team as “a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable. |
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The three components of effective teamwork are cooperation, trust, and cohesiveness.
A) True B) False |
A) True
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Instrumental cohesiveness is a sense of group togetherness based on mutual dependency needed to get the job done.
A) True B) False |
A) True
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Researchers concluded that competition is superior to cooperation in promoting achievement and productivity.
A) True B) False |
B) False
As competitive pressures intensify, experts say organizational success increasingly will depend on teamwork rather than individual stars. Individuals are said to be cooperating when their efforts are systematically integrated to achieve a collective objective.26 The greater the integration, the greater the degree of cooperation |
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According to Management professor/consultant Fernando Bartolomé, all of the following except which are good guidelines to follow in building and maintaining trust.
A) Respect B) Predictability C) Communication D) Support E) All of these are among the guidelines mentioned |
E) All of these are among the guidelines mentioned
All of the answer selections were among those mentioned by Bartolomé and as such, answer selection E is correct. |
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A baseball team is an example of a(n) __________ team.
A) project B) advice C) production D) functional E) action |
E) action
According to the text, an action team is characterized by high specialization combined with high coordination. The book also specifically mentions that the best example of an action team is in fact a baseball team. |
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According to the model of work team effectiveness presented in Figure 11-1, performance and viability are both
A) team effectiveness criteria. B) organizational context factors. C) work cycles. D) organizational structure factors. E) organizational reward system components. |
A) team effectiveness criteria.
Figure 11-1 illustrates the conditions necessary for an effective team and clearly shows that performance and viability are both team effectiveness criteria. |
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Which of the following is a typical managerial mistake leading to team failure?
A) A lack of trust among team members. B) The team tries to do too much too soon. C) Team members resist doing things differently. D) Personality conflicts among team members. E) Inadequate team skills training. |
E) Inadequate team skills training.
In Figure 11-2, a total of eight mistakes that are typically made by management that often lead to teams failing as well as eight problems that team members typically will experience. Answer selections A, B, C and D are all problems team members may experience while answer selection E is the only one listed under mistakes management may make. |
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One way managers can enhance socio-emotional cohesiveness is by
A) regularly updating and clarifying the group's goals. B) giving each member a vital "piece of the action". C) channelling each member's special talents toward the common goal. D) encouraging interaction and cooperation. E) equitably reinforcing every member's contribution. |
D) encouraging interaction and cooperation.
While answer selections A, B, C and E are all steps managers can take to enhance instrumental cohesiveness, only answer selection D is listed as a way to increase socio-emotional cohesiveness. |
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According to the rational model of decision making, managers are completely objective and possess complete information necessary to make a decision.
A) True B) False |
A) True
The rational model proposes that managers use a rational, four-step sequence when making decisions: (1) identifying the problem, (2) generating alternative solutions, (3) selecting a solution, and (4) implementing and evaluating the solution. According to this model, managers are completely objective and possess complete information to make a decision. Despite criticism for being unrealistic, the rational model is instructive because it analytically breaks down the decision-making process and serves as a conceptual anchor for newer models. |
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Satisficing is associated with the rational model of decision making.
A) True B) False |
B) False
satisficing consists of choosing a solution that meets some minimum qualifications, one that is “good enough.” Satisficing resolves problems by producing solutions that are satisfactory, as opposed to optimal. |
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Tacit knowledge is intuitive and is acquired by having considerable experience and expertise at a task or job.
A) True B) False |
A) True
Tacit knowledge “entails information that is difficult to express, formalize, or share. It… is unconsciously acquired from the experiences one has while immersed in an environment. |
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The Garbage Can Model assumes that organizational decision making is a sloppy and haphazard process.
A) True B) False |
A) True
garbage can model Holds that decision making is sloppy and haphazard. |
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Having different individuals make the initial and subsequent decisions about a project is one way to reduce escalation of commitment.
A) True B) False |
A) True
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People who have a __________ decision-making style have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions.
A) directive B) analytical C) conceptual D) behavioral E) action |
A) directive
According to the text, only the directive style of decision making meets the criteria described in the question. |
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Ethical decision making frequently involves trade-offs, and a ______helps managers to navigate through them.
A) Team of researchers B) Decision Tree C) Alternative solution D) Selective group of employees E) None of the above |
B) Decision Tree
The text discusses the notion that a decision tree is a helpful aid in making decisions. A decision tree is Graphical representation of the process underlying decision making |
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One disadvantage of group-aided decision making is that it can result in
A) a greater pool of knowledge. B) increased acceptance. C) greater comprehension. D) logrolling. E) different perspectives. |
D) logrolling.
Answer selections A,B,C and E are all noted in the text as being advantages associated with group-aided decision making. Only answer selection D was noted as a disadvantage. |
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Which of the following was not discussed in the text as being a group problem solving technique?
A) Nominal Group Technique B) Computer-aided Decision Making C) Delphi Technique D) Consensus Technique E) Brainstorming |
D) Consensus Technique
, is a decision that is reached. Presenting opinions and gaining agreement to support a decision. |
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Within the creative process, the __________ stage involves unconsciously mulling over information and making remote associations, all the while engaging in normal daily activities.
A) illumination B) concentration C) verification D) preparation E) incubation |
E) incubation
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Ideally, an organization should experience no conflict.
A) True B) False |
B) False
human relationists recognized the inevitability of conflict and advised managers to learn to live with it. Emphasis remained on resolving conflict whenever possible, however. conflict had both positive and negative outcomes, depending on its nature and intensity. This perspective introduced the revolutionary idea that organizations could suffer from too little conflict. |
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A day off with pay that occurs one time only intended to allow the employee to recommit to the organization's values and mission is known as the dialectic method.
A) True B) False |
B) False
dialectic method calls for managers to foster a structured debate of opposing viewpoints prior to making a decision.4 |
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The devil's advocacy method of stimulating functional conflict involves assigning one person the role of critic.
A) True B) False |
A) True
in today’s organizations involves assigning someone the role of critic. |
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The obliging (smoothing) style of handling dysfunctional conflict is appropriate for complex issues where the chance of misunderstanding is high.
A) True B) False |
B) False
“An obliging person neglects his or her own concern to satisfy the concern of the other party.”52 This style, often called smoothing, involves playing down differences while emphasizing commonalities |
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The nondisclosure negotiation tactic involves partial disclosure of facts, failure to disclose a hidden fact, failure to correct the opponents' misperceptions, and concealment of the negotiator's own position.
A) True B) False |
A) True
, negotiation is a give-and-take decision-making process involving interdependent parties with different preferences |
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When a situation is characterized by __________, managers should anticipate conflict.
A) extreme time pressure B) ample resources C) clear job boundaries D) simple organizational structures E) independent tasks |
A) extreme time pressure
Conflict arises in situations where the potential for perceptions of opposition of goals exist. Answer selections B, C, D and E are conditions that would not create this type of situation. However, answer selection A would as identified in the text. |
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__________ is defined as conflict that raises different opinions regardless of the personal feelings of those involved.
A) Groupthink B) Social loafing C) Programmed conflict D) Negotiation E) The stepladder technique |
C) Programmed conflict
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A major drawback of the __________ method of stimulating functional conflict is that "winning the debate" may become more important than arriving at the best solution.
A) groupthink B) devil's advocacy C) stepladder technique D) dialectic method E) negotiation |
D) dialectic method
answer selections B and D are both methods used to stimulate functional conflict. However, the drawback described in the question is identified in the text as a major drawback to answer selection D. |
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The __________ style of handling dysfunctional conflict involves either passive withdrawal from the problem or active suppression of the issue.
A) integrating B) obliging C) dominating D) avoiding E) compromising |
D) avoiding
While all 5 of the answer selections are styles of handling dysfunctional conflict identified in the text, only answer selection D fits the description in the question. |
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The primary strength of the __________ style of handling dysfunctional conflict is that it has a longer lasting impact because it deals with the underlying problem rather than merely with symptoms. It's primary weakness is that it is very time consuming.
A) integrating B) obliging C) dominating D) avoiding E) compromising |
A) integrating
While all 5 of the answer selections are styles of handling dysfunctional conflict identified in the text, only answer selection A fits the description in the question. |
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The "exchange" influence tactic involves getting others to support your effort to persuade someone to your point of view.
A) True B) False |
B) False
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Conclusions from a meta-analysis suggest ingratiation (making the boss feel good) can slightly improve your performance appraisal results and make your boss like you significantly more.
A) True B) False |
A) True
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Personalized power is directed at helping oneself for the sake of personal aggrandizement.
A) True B) False |
A) True
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According to French and Raven, an individual is using expert power when his or her charismatic personality is the reason for the compliance of others.
A) True B) False |
B) False
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According to your textbook, "participation" is the highest degree of empowerment.
A) True B) False |
B) False
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The __________ influence tactic involves getting others to participate in planning, making decisions, and changes.
A) rational persuasion B) coalition C) inspirational appeal D) ingratiating E) consultation |
E) consultation
While all 5 answer selections are generic influence tactics, the question describes only answer selection E, consultation |
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__________ power is directed at helping others.
A) Socialized B) Expert C) Referent D) Personalized E) Legitimate |
A) Socialized
Answer selections B, C and E are all "Bases of Power" as identified in French and Raven's taxonomy. While answer selections A and D are both types of power, the question describes answer selection A, socialized power rather than answer selection D. |
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Threats of punishment and actual punishment give an individual __________ power over others.
A) reward B) coercive C) legitimate D) expert E) referent |
B) coercive
While all of the answer selections are Bases of Power as identified in French and Raven's taxonomy, the question describes the definition of answer selection B, coercive power. |
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Along the continuum of employee empowerment, __________ occurs when managers and followers jointly make decisions.
A) delegation B) consultation C) internalization D) participation E) domination |
D) participation
While all 5 answer selections are levels of empowerment, answer selection D, participation is the degree of empowerment that is described in the question. |
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Political behaviour and maneuvering is often triggered by uncertainty. Which of the following is not a source of uncertainty that may trigger such actions?
A) Unclear measures of performance. B) Any change taking place in the organization. C) High levels of competition among individuals or groups. D) Organizational objectives that are not clearly spelled out. E) All of these are sources of uncertainty that may trigger political behaviour and maneuvering. |
E) All of these are sources of uncertainty that may trigger political behaviour and maneuvering.
: All of the answer selections are potential sources of uncertainty that are discussed in the text. |
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Generally speaking, the more narrow the span of control in an organization, the higher the organization's administrative costs.
A) True B) False |
A) True
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The modular structure overlays a vertical and with a horizontal structure which results in two command structures – functional and divisional.
A) True B) False |
B) False
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A learning organization is one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insights.
A) True B) False |
A) True
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Whether or not an organization meets or exceeds its goals is one way to judge the effectiveness of an organization.
A) True B) False |
A) True
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One of the benefits of innovation identified in the Model of Innovation was improving on services and products the organization already has.
A) True B) False |
A) True
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__________ refers to the idea that each employee should report to only one manager.
A) Span of control B) The Unity of command principle C) Emergent leadership D) Bureaucracy E) A New-style organization |
B) The Unity of command principle
While all of the answer selections refer to topics related to organizational structure, the question defines answer selection B, the Unity of Command Principle. |
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Which of the following is identified as an early warning sign of decline in the text?
A) Effective communication if decreased. B) Goals are not clear and decision benchmarks are not present. C) Administrative procedures become a burden and are cumbersome. D) Answer selections A and C only. E) All of these are early warning signs of decline. |
E) All of these are early warning signs of decline.
The text reviews some of the early warning signs to watch out for that indicate organizational decline. All 3 answer selections (A, B and C) are in that list. |
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A synonym for the term "innovation" in the context of organizational innovation would be:
A) invention. B) creativity. C) integration. D) All of the above are correct. E) None of the above are correct. |
E) None of the above are correct.
The discussion in the text explains that while innovation may involve invention, creativity and integration, it is distinctly different from all 3. Therefore, none of the answer selections is correct making the correct answer E, none of the above. |
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When measuring organizational effectiveness, the __________ approach is appropriate when powerful stakeholders can significantly benefit or harm the organization.
A) internal processes B) goal accomplishment C) stakeholder audit D) strategic constituencies E) resource acquisition |
D) strategic constituencies
: While answer selections A, B, D and E are all approaches to measuring organizational effectiveness, the question describes answer selection D, the strategic constituencies approach. |
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Which of the following is a characteristic of mechanistic organizations?
A) Top-down communication patterns. B) Democratic decision making. C) Low emphasis on obedience and loyalty. D) Broad task definitions. E) A clear link between an individual's contribution and the organization's purpose. |
A) Top-down communication patterns.
Answer selections B, C, D and E are all characteristics of an organic organization while answer selection A is a characteristic of a mechanistic organization. |
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When the ABC Corporation makes decisions that assist it in formulating and implementing plans that are designed to achieve its objectives, it is most likely engaging in _________.
A) strategic management B) strategy utilization C) strategic processing D) strategic formality |
A) strategic management
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Of the following, which one is least likely to be considered a critical task associated with an organization's strategic management process?
A) Evaluation of the process for use in future decision making B) Evaluation of options relative to the company's mission C) Decreasing the levels of hierarchy present within the company's management structure D) Developing a set of short-term objectives that are compatible with the company's grand strategies |
C) Decreasing the levels of hierarchy present within the company's management structure
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The We Have It Your Way Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated this organization has an established _________.
A) level of strategy B) formality C) planning mode D) strategy |
D) strategy
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Of the following, which statement would most likely not be considered a dimension of strategic issues?
A) Strategic issues require large amounts of the firm's resources. B) Strategic issues always impact the firm's long-term income. C) Strategic issues require the firm's external environment be considered. D) Strategic issues are future-oriented. |
B) Strategic issues always impact the firm's long-term income.
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The decision making hierarchy of a firm typically contains _______ levels.
A) 3 B) 4 C) 2 D) infinite |
A) 3
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Which level of the decision making hierarchy is best identified as being composed principally of business and corporate mangers who must translate the statements of direction and intent into concrete objectives and strategies for the individual business units?
A) Corporate level B) Strategic level C) Business level D) Functional level |
C) Business level
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An organization's board of directors and administrative officers are most likely to be found at the ________ in its decision making hierarchy.
A) corporate level B) strategic level C) business level D) functional level |
A) corporate level
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At which hierarchy level would the decisions made be more value-oriented, more conceptual, and less concrete?
A) Functional level B) Corporate level C) Strategic level D) Business level |
B) Corporate level
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Common functional-level decisions would include all of the following except ___________.
A) generic versus brand name labeling B) amount of inventory to keep C) type of production equipment D) how to best enhance the firm's image and fulfill its social responsibilities |
D) how to best enhance the firm's image and fulfill its social responsibilities
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________ refers to the degree in which participants, responsibilities, authority, and discretion in decision making are specified.
A) Formality B) Strategic management C) Planning mode D) Company mission |
A) Formality
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All of the following statements would be considered true of a company's mission statement except which one?
A) A company's mission is an enduring statement of a firm's intent. B) A mission statement typically identifies the firm's principal products and services. C) A mission statement identifies the scope of the firm's operations. D) The mission statement staunchly presents a firm's strategic intent. |
D) The mission statement staunchly presents a firm's strategic intent. the company mission is a broadly framed but enduring statement of a firm’s intent. It embodies the business philosophy of the firm’s strategic decision makers, implies the image the firm seeks to project, reflects the firm’s self-concept, and indicates the firm’s principal product or service areas and the primary customer needs the firm will attempt to satisfy. In short, it describes the firm’s product, market, and technological areas of emphasis, and it does so in a way that reflects the values and priorities of the firm’s strategic decision makers.
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Of the following, which aspect is least likely to be a consideration addressed in an organization's mission statement?
A) Who are the firm's primary customers? B) What image does the firm wish to project? C) Which areas of technology will be empathized? D) What are the number of levels the corporate hierarchy will contain |
D) What are the number of levels the corporate hierarchy will contain
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Which one of the following statements is least likely to represent a fundamental belief an organization would have to guide it in creating its mission statement?
A) The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share. B) The management philosophy of the business will result in a favorable public image. C) The products or services offered can satisfy the customers within a specific market segment. D) The business will provide financial rewards for those who are willing to invest in helping the company succeed. |
A) The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share.
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The XYZ Organization's mission statement is focused around three indispensable components. Of the following, which one would not be considered one of these components?
A) The markets served by XYZ shall include oil and gas producers as well as producers of chemicals. B) XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders. C) The customers of XYZ shall include global consumers of gas and oil products and domestic users of nontoxic chemicals. D) The technologies utilized by XYZ shall focus upon development of alternative sources of gas and oil so as to remain competitive within the industry. |
B) XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders.
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Of the following statements, which one would not fit well in the segment of a corporate mission statement expressing the corporation's concern for public image?
A) Our organization is dedicated to the total success of our business as a worldwide competitor. B) We have a strong responsibility to the communities in which we work. C) Our organization must be responsive to the public's desire for improvement in the quality of life. D) We shall adhere to the philosophy of equal opportunity for all. |
A) Our organization is dedicated to the total success of our business as a worldwide competitor.
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Purportedly, there are three economic goals that serve to guide the strategic direction of almost every business organization. ________ is least likely to be considered one of these goals?
A) Survival B) Profitability C) Sustained absolute advantage D) Growth |
C) Sustained absolute advantage
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When an organization makes a statement such as "We believe that meeting the needs of customers, suppliers, and neighbors is instrumental to fulfilling our mission" the organization is most likely identifying its _________.
A) vision statement B) company creed C) mission statement D) agency theory |
B) company creed
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Of the following statements, which one is least likely to be true regarding a company's statement of philosophy?
A) A company's statement of philosophy is often called its company creed. B) It reflects the guiding values and philosophical priorities to which strategic organizational managers are committed. C) This statement reflects the basic beliefs and aspirations of the organization. D) A company's statement of philosophy rarely if ever appears within the organization's mission statement. |
D) A company's statement of philosophy rarely if ever appears within the organization's mission statement.
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Which one of the following statements would be considered false when discussing the value a company places on its public image?
A) The chance of gaining negative public image does not inspire organizations into action. B) Public agitation stimulates organizations into taking corrective actions. C) Essentially, it is the public's opinion of an organization and its actions that count in the long run. D) Firms rarely address the issue of public image in an intermittent manner. |
A) The chance of gaining negative public image does not inspire organizations into action.
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The board of directors of the TMJ Company takes great pride in the operations of this very successful company. Which of the following statements would most likely be considered false about TMJ's board of directors?
A) The board is comprised of strategic managers and stockholder representatives. B) The board is responsible for the creation of the company mission. C) The board rarely has to deal with potentially unethical business issues. D) The board establishes the compensation level of top officers and executives. |
C) The board rarely has to deal with potentially unethical business issues.
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The various interest groups associated with the CBC Corporation expect and demand their claims toward the organization be settled in a responsible manner. When discussing this concept, all of the following statements would be considered true of a corporation's interest groups except which one?
A) Governments expect adherence to legislation. B) Stockholders desire appropriate returns on their investments. C) The general public wants products with fair pricing. D) Employees seek broadly defined job satisfaction from their jobs. |
C) The general public wants products with fair pricing.
Each of these interest groups has justifiable reasons for expecting (and often for demanding) that the firm satisfy their claims in a responsible manner. In general, stockholders claim appropriate returns on their investment; employees seek broadly defined job satisfactions; customers want what they pay for; suppliers seek dependable buyers; governments want adherence to legislation; unions seek benefits for their members; competitors want fair competition; local communities want the firm to be a responsible citizen; and the general public expects the firm’s existence to improve the quality of life. |
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As a stakeholder the local communities associated with an organization have distinct views of the responsibility an organization has to them. The views of local communities would include likely all but which one of the following?
A) Participation of company officials in community affairs B) Providing a place of productive and healthful employment C) Interest in and support of local government D) Adherence to the letter and intent of public policy dealing with the requirements of fair and free competition |
D) Adherence to the letter and intent of public policy dealing with the requirements of fair and free competition
communities Place of productive and healthful employment in the community. Participation of company officials in community affairs, provision of regular employment, fair play, reasonable portion of purchases made in the local community, interest in and support of local government, support of cultural and charitable projects |
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Outside stakeholders of an organization would include all of the following groups except _________.
A) the general public B) the board of directors C) local and federal governments. D) unions and their representatives |
B) the board of directors
inside would be executive officers employees, board of directors and stock holders all else outside |
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Which type of social responsibility is best identified as being the firm's obligations to comply with the rules and statutes that regulate business activities?
A) Economic responsibility B) Legal responsibility C) Discretionary responsibility D) Ethical responsibility |
B) Legal responsibility
Legal responsibilities reflect the firm’s obligations to comply with the laws that regulate business activities. The consumer and environmental movements focused increased public attention on the need for social responsibility in business by lobbying for laws that govern business in the areas of pollution control and consumer safety. |
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Responsibilities voluntarily assumed by a business such as public relations, good citizenship, and full corporate responsibility is best identified as which one of the following?
A) Discretionary responsibilities. B) Corporate social responsibilities C) Ethical responsibilities D) Economic responsibilities |
A) Discretionary responsibilities.
Discretionary responsibilities are those that are voluntarily assumed by a business organization. They include public relations activities, good citizenship, and full corporate social responsibility. Through public relations activities, managers attempt to enhance the image of their companies, products, and services by supporting worthy causes. This form of discretionary responsibility has a self-serving dimension. Companies that adopt the good citizenship approach actively support ongoing charities, public service advertising campaigns, or issues in the public interest. |
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Which one of the following statements would be considered false regarding the concept of corporate social responsibility (CSR)?
A) Costs and benefits of CSR are both economic and social in nature. B) CSR embraces the idea that business has a duty to serve society in general as well as the financial interests of stockholders. C) CSR is focused only on responsibilities that are voluntarily assumed by a business. D) CSR should be viewed as an integral component in the decision making process |
C) CSR is focused only on responsibilities that are voluntarily assumed by a business.
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All of the following except ________ provide rationales for why the process of conducting a cost-benefit analysis of CSR is difficult.
A) philanthropic activities of a corporation are usually undertaken at a discounted cost to the business B) the needs and preferences of society change rapidly and often C) many of the advantages gained such as goodwill are intangible in nature D) sometimes there are no actual dollar costs involved |
B) the needs and preferences of society change rapidly and often
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Of the following, which trend is least likely to be considered a driving force for businesses to adopt CSR frameworks?
A) The ready adoption of diversity within organizations B) The globalization of business C) The increasing buying power of society D) The resurgence of environmentalism |
A) The ready adoption of diversity within organizations
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Managers who adopt the _______ to ethics judge the effects of a particular action on the people who are directly involved.
A) social justice approach B) utilitarian approach C) principal-agent approach D) moral rights approach |
B) utilitarian approach
the utilitarian approach judge the effects of a particular action on the people directly involved, in terms of what provides the greatest good for the greatest number of people. The utilitarian approach focuses on actions, rather than on the motives behind the actions. |
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According to the _________, individuals should not be treated differently on the basis of arbitrary characteristics such as race, sex, religion, or national origin.
A) social justice approach B) difference principle C) Sarbanes-Oxley Act of 2003 D) distributive-justice principle |
D) distributive-justice principleD) distributive-justice principle
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What is economic responsibility
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Economic responsibilities are the most basic social responsibilities of business. As we have noted, some economists see these as the only legitimate social responsibility of business. Living up to their economic responsibilities requires managers to maximize profits whenever possible. The essential responsibility of business is assumed to be providing goods and services to society at a reasonable cost.
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what is moral right approach/
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the moral rights approach judge whether decisions and actions are in keeping with the maintenance of fundamental individual and group rights and privileges. The moral rights approach (also referred to as deontology) includes the rights of human beings to life and safety, a standard of truthfulness, privacy, freedom to express one’s conscience, freedom of speech, and private property.
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the social justice approach is what?
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the social justice approach judge how consistent actions are with equity, fairness, and impartiality in the distribution of rewards and costs among individuals and groups. These ideas stem from two principles known as the liberty principle and the difference principle.
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The construction company owned by Tom and Adam Smith – T & A Contracting- faces many challenges posed by its external environment. Of the following, which factor is most likely to be classed as belonging in the remote environment of T & A Contracting?
A) Competitors B) Ecological C) Labor D) Suppliers |
B) Ecological
The remote environment comprises factors that originate beyond, and usually irrespective of, any single firm’s operating situation: (1) economic, (2) social, (3) political, (4) technological, and (5) ecological factors. That environment presents firms with opportunities, threats, and constraints, but rarely does a single firm exert any meaningful reciprocal influence |
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________ factors concern the nature and direction of the economy in which a firm operates.
A) Technological B) Ecological C) Social D) Economic |
D) Economic
Economic factors concern the nature and direction of the economy in which a firm operates. Because consumption patterns are affected by the relative affluence of various market segments, each firm must consider economic trends in the segments that affect its industry. |
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The social factors that affect a firm involve all of the following except _______.
A) the propensity of people to spend B) lifestyles of people C) attitudes of people in the external environment. D) values and beliefs of persons outside the firm |
A) the propensity of people to spend
The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning. As social attitudes change, so too does the demand for various types of clothing, books, leisure activities, and so on |
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Political constraints are placed on firms through a variety of avenues except which one of the following?
A) Antitrust laws B) Fair trade decisions C) Discretionary responsibility D) Administrative jawboning |
C) Discretionary responsibility
Political factors define the legal and regulatory parameters within which firms must operate. Political constraints are placed on firms through fair-trade decisions, antitrust laws, tax programs, minimum wage legislation, pollution and pricing policies, administrative jawboning, and many other actions aimed at protecting employees, consumers, the general public, and the environment. |
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Which of the following is a false statement regarding the fourth set of factors – technological changes- in a firm's remote environment?
A) Technological changes rarely influence or promote innovation within firms. B) A technological breakthrough can have a sudden and dramatic effect on a firm's environment. C) To avoid obsolescence, a firm must be aware of technological changes that might influence its industry. D) Creative technological adaptations can suggest possibilities for new products. |
A) Technological changes rarely influence or promote innovation within firms.
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The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operations is best identified as which one of the following?
A) Ecology B) Economies of scale C) Technological forecasting D) Environmental scanning |
C) Technological forecasting
The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization’s operations. |
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The most prominent factor found in the remote environment of businesses is most often that of the reciprocal relationship between those businesses and the ecology. Specific ecological concerns focus on all but which one of the following?
A) Global warming B) Fair labor standards C) Loss of habitat D) Air and water pollution |
B) Fair labor standards
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Which one of the following would not be considered a method a firm can engage in to enhance an eco-efficient strategy?
A) Reducing waste while enlarging product packaging size B) Controlling property acquisitions and use to preserve habitats C) Implementing energy-conserving activities D) Developing corporate standards |
A) Reducing waste while enlarging product packaging size
the term eco-efficiency to describe corporations that produce more-useful goods and services while continuously reducing resource consumption and pollution. |
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The general conditions for competition that influences businesses, which provide similar products and services is best referred to as a/an ________.
A) remote environment B) international environment C) external environment D) industry environment |
D) industry environment
The general conditions for competition that influence all businesses that provide similar products and services. |
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Defining the boundaries of an industry can be a very difficult task. This difficulty stems from all of the following except which one?
A) Industries are very static in nature. B) Industrial evolution creates industries within industries. C) Industries are becoming more global in scope. D) The evolution of industries over time creates new threats and opportunities. |
A) Industries are very static in nature.
First, it helps executives determine the arena in which their firm is competing. A firm competing in the microcomputer industry participates in an environment very different from that of the broader electronics business. |
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For the past two years the Broken Arrow Corporation has been planning to expand its operations in order to reach out to the market arenas of the world. Its future plans include continuation of its standardized product line to be offered within the new marketplaces. Essentially, the Broken Arrow Corporation desires to _____________.
A) become a multidomestic industry B) develop a polycentric orientation C) embrace globalization D) engage stakeholder activism |
C) embrace globalization
Globalization refers to the strategy of pursuing opportunities anywhere in the world that enable a firm to optimize its business functions in the countries in which it operates. |
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As a corporation grows into that of being a global operation, it can expect to undergo the need for various progressively involved strategy levels. At which level should a corporation most likely expect to face the challenge of foreign licensing and technology transfer?
A) First level B) Final level C) Third level D) Second level |
D) Second level
The first level, which often entails export-import activity, has minimal effect on the existing management orientation or on existing product lines. The second level, which can involve foreign licensing and technology transfer, requires little change in management or operation. The third level typically is characterized by direct investment in overseas operations, including manufacturing plants. |
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All of the following except _________ would be considered rationales for why an organization may wish to globalize its operations in the international marketplace.
A) to gain a competitive weapon B) realization of domination of the domestic market C) acquiring opportunities to expand into new industries D) gaining advantage in technology |
B) realization of domination of the domestic market
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When the values and priorities of the parent organization guide the strategic decision making of all its international operations, it can be said there is a/an _______ present within the organization.
A) polycentric orientation B) regiocentric orientation C) ethnocentric orientation D) geocentric orientation |
C) ethnocentric orientation
an ethnocentric orientation believes that the values and priorities of the parent organization should guide the strategic decision making of all its operations. |
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A corporation with a/an ________ is likely to adopt a global systems approach to its strategic decision making that empathizes global integration.
A) geocentric orientation B) ethnocentric orientation. C) regiocentric orientation D) polycentric orientation |
A) geocentric orientation
a geocentric orientation adopts a global systems approach to strategic decision making, thereby emphasizing global integration. |
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The primary niche market approach for a company that wants to export is to do which one of the following?
A) Utilize only U.S. product criteria B) Modify product characteristics to reflect U.S. considerations C) Prepare to invest large sums of capital D) Modify select product performance to meet special foreign demands |
D) Modify select product performance to meet special foreign demands
The primary niche market approach for the company that wants to export is to modify select product performance or measurement characteristics to meet special foreign demands. |
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All of the following would be considered true about a firm at the start of its globalization process except which one?
A) External assessments must be conducted before a firm enters global markets. B) Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace. C) The firm must pay particular attention to the host nation's political control and economic progress. D) Internal assessments must be conducted prior to the firm attempting to enter the global arena. |
B) Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace.
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Which one of the following would not be considered a factor that contributes to the increase in the complexity found within today's global environment?
A) Global organizations are able to fully utilize differences in industry structures that are encountered. B) Global organizations face multiple legal, social, and cultural environments that change at different rates. C) Global organizations face extreme competition. D) Global organizations are restricted in their selection of competing strategies by various regional and economic constraints. |
A) Global organizations are able to fully utilize differences in industry structures that are encountered.
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Of the following, which one is least likely to be classed as creating or contributing to the control problems a global firm may face?
A) Minimal attention is paid to the host country's goals B) Disposition of earnings is made more complex because of the different financial environments involved C) Various schemes are engaged to shift earnings from one country to another in avoidance of taxes D) Different financial environments simplify the various sources of finance |
D) Different financial environments simplify the various sources of finance
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A/An ______ is one in which competition crosses national borders on a worldwide basis.
A) global industry B) domestic industry C) international industry D) multidomestic industry |
A) global industry
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what is polycentric orientation,
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a polycentric orientation, then the culture of the country in which a strategy is to be implemented is allowed to dominate the decision-making process.
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a regiocentric orientation is?
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a regiocentric orientation exists when the parent attempts to blend its own predispositions with those of the region under consideration, thereby arriving at a region-sensitive compromise.
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Stakeholder activism refers to
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Stakeholder activism refers to demands placed on the global firm by the foreign environments in which it operates, principally by foreign governments.
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Simon Ize is the owner of a company (2-Shine Simon Ize-It) that specializes in a variety of floor waxing and polishing products. His company managers are in the process of finding answers to such questions as: How well is our current strategy working? and What is our current situation? In order to obtain the answers to these types of questions Simon's company is most likely to conduct which one of the following?
A) Analysis of strengths and weaknesses B) SWOT analysis C) Analysis of weaknesses and threats D) Strategic brainstorming session |
B) SWOT analysis
SWOT is an acronym for the internal S trengths and W eaknesses of a firm and the environmental O pportunities and T hreats facing that firm. SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s strategic situation. It is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). |
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The 2-Shine Simon Ize-It Company wants to know the major favorable situations that exist in its environment. Essentially, the company wants to gain understanding of its _________.
A) strengths B) weaknesses C) threats D) opportunities |
D) opportunities
An opportunity is a major favorable situation in a firm’s environment. Key trends are one source of opportunities. Identification of a previously overlooked market segment, changes in competitive or regulatory circumstances, technological changes, and improved buyer or supplier relationships could represent opportunities for the firm |
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All of the following would represent possible threats to the 2-Shine Simon Ize-It Company except which one of the following?
A) Entrance of new competitors B) Improved buyer or supplier relationships C) New or revised regulations D) Slow market growth |
B) Improved buyer or supplier relationships
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All of the following except which one would be considered a weakness to a business such as the one owned by Simon Ize?
A) Maturing markets B) Limited industry expertise C) Brand name D) Limited financial resources |
C) Brand name
A weakness is a limitation or deficiency in one or more of a firm’s resources or capabilities relative to its competitors that create a disadvantage in effectively meeting customer needs. |
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Utilizing a SWOT analysis diagram, one would expect to find which piece of information about the company in question in Cell 2?
A) Supports a diversification strategy B) Supports a defensive strategy C) Supports an aggressive strategy D) Supports a turnaround-oriented strategy |
A) Supports a diversification strategy
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All but which one of the following would be considered a limiting factor or influence to a SWOT analysis?
A) The analysis can overemphasize a single strength. B) The SWOT analysis can ignore changing circumstances. C) It can recognize that a strength is always a source of competitive advantage. D) The analysis can downplay external threats. |
C) It can recognize that a strength is always a source of competitive advantage.
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________ attempts to understand how a business creates customer value by examining the contributions of different activities within a business to that value.
A) Internal analysis B) Value chain analysis C) A value chain D) SWOT analysis |
B) Value chain analysis
An analysis that attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value. |
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Primary activities conducted by a firm are those that are involved in the creation, marketing, and transfer of the product to the buyer. Which one of the following would not be considered a primary activity?
A) Procurement B) Marketing and Sales C) Inbound logistics D) Service |
A) Procurement
Primary activities (sometimes called line functions) are those involved in the physical creation of the product, marketing and transfer to the buyer, and after-sale support. |
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The _______ is a method of analyzing and identifying a firm's strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles as an organization.
A) value chain analysis B) activity-based cost accounting method. C) resource-based view D) SWOT analysis |
C) resource-based view
The RBV is a method of analyzing and identifying a firm’s strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles as an organization. |
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The tangible assets of a firm such as Gary's Two-Can Tan Company would include all but which one of the following?
A) Its trademark. B) Its raw materials. C) Its financial resources. D) Its computer systems. |
A) Its trademark.
The most easily identified assets, often found on a firm’s balance sheet. They include production facilities, raw materials, financial resources, real estate, and computers. |
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The Stormio Damage Repairio Corporation of Topeka is in the process of establishing its long-term objectives. These objectives will be used to guide the corporation toward achieving prosperity in its future years. All but which of the following areas would these long-term objectives need to address?
A) The ability of the firm to invest in capital equipment this year. B) The corporation's view of its responsibility to the public. C) The ability of the firm to attain acceptable levels of profits. D) The corporation's plans for methods of increasing development of its employees. |
A) The ability of the firm to invest in capital equipment this year.
long term adjectives These are statements of the results a firm seeks to achieve over a specified period, typically three to five years. |
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There are several qualities the long-term objectives developed by Stormio should posses that will improve their chances of being attained. All of the following except _________ would be considered one of these necessary qualities.
A) Understandable B) Flexible C) Measurable over time D) Encompass a one-year time span |
D) Encompass a one-year time span
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A set of measures directly linked to a company's strategy, financial performance, customer knowledge, internal business processes, and learning and growth is best known as that company's _________.
A) vision statement B) balanced scorecard C) strategic plan D) corporate mission |
B) balanced scorecard
The balanced scorecard is a set of measures that are directly linked to the company’s strategy. It directs a company to link its own long-term strategy with tangible goals and actions. The scorecard allows managers to evaluate the company from four perspectives: financial performance, customer knowledge, internal business processes, and learning and growth. |
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The Grinder Up Corporation is a waste disposal business based in Santa Fe. This corporation possesses unique capabilities that assist it in being able to sustain its current market position. These capabilities include having secured suppliers of scarce raw materials, continuing dominance in its market, excellence at efficiencies, and a high degree of capitalization. It is most likely that Grinder Up engages in which one of the following strategies?
A) Differentiation B) Focus C) Low-cost leadership D) Concentric diversification |
C) Low-cost leadership
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Strategies dependent on ______ are designed to appeal to customers with a special sensitivity for a particular product attribute.
A) differentiation B) focus C) vertical integration D) conglomerate diversification |
A) differentiation
strategies dependent on differentiation are designed to appeal to customers with a special sensitivity for a particular product attribute. By stressing the attribute above other product qualities, the firm attempts to build customer loyalty. |
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The strategy embraced by the Kun-Pow Fortune Cookie Company of Memphis strives to address the needs of a very select and specialized market segment. Kun-Pow is most likely to engage in which one of the following types of strategy?
A) Differentiation B) Generic C) Focus D) Concentrated growth |
C) Focus
focus strategy, whether anchored in a low-cost base or a differentiation base, attempts to attend to the needs of a particular market segment. |
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Of the value disciplines proposed by Michael Treacy and Fred Wiersema, which one is best identified as referring to providing customers with convenient and reliable products and services at competitive prices?
A) Customer intimacy B) Operational excellence C) Horizontal integration D) Product leadership |
B) Operational excellence
Operational excellence refers to providing customers with convenient and reliable products or services at competitive prices. Customer intimacy involves offerings tailored to match the demands of identified niches. |
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Companies that implement a strategy of ________ continually tailor and shape products and services to fit an increasingly refined definition of the customer.
A) customer intimacy B) consumer differentiation C) operational excellence D) product leadership |
A) customer intimacy
customer intimacy continually tailor and shape products and services to fit an increasingly refined definition of the customer. |
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Which one of the following grand strategies is noted as presenting products, often with only cosmetic modifications, to customers in related marketing areas?
A) Market development B) Innovation C) Divestiture D) Product developmen |
A) Market development
Market development commonly ranks second only to concentration as the least costly and least risky of the 15 grand strategies. It consists of marketing present products, often with only cosmetic modifications, to customers in related market areas by adding channels of distribution or by changing the content of advertising or promotion |
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_________ involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels.
A) Innovation B) Differentiation C) Product development D) Market development |
C) Product development
Product development involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels. The product development strategy often is adopted either to prolong the life cycle of current products or to take advantage of a favorite reputation or brand name. |
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Which one of the following statements would be considered false about the concept of competitive advantage?
A) A prominent source of competitive advantage can be found in the business's low cost structure. B) Businesses become successful because they possess some advantage relative to their competitors. C) Businesses that create competitive advantage from differentiation usually experience above-average profitability within their industry. D) Businesses that engage other than a low-cost strategy usually experience below-average profitability. |
D) Businesses that engage other than a low-cost strategy usually experience below-average profitability.
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The business strategy decided upon by the Ripper Up Remodeling Corporation is one that engages in value chain activities, which are achieved at a cost that is well below its competitors. In this way, the competitors can require less money for its services than competitors can. It is safe to say this corporation is engaging a __________.
A) differentiation strategy B) strategic alliance strategy C) retrenchment strategy D) low-cost strategy |
D) low-cost strategy
Business strategies that seek to establish long-term competitive advantages by emphasizing and perfecting value chain activities that can be achieved at costs substantially below what competitors are able to match on a sustained basis. |
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Major Lionel Minor began his own new home construction company when he retired from the Air Force five years ago. The company has rapidly grown to be very large and has reported earnings of over $40 million in the past year. Retired Major Minor attributes this high rate of success to his ability to service his customers at a low price. His organization has to meet several requirements in order to continually support and sustain this low-cost leadership status. Which of the following would not be one of these requirements?
A) Tight cost control B) Avoidance of economies of scale C) Incentives based on meeting quantitative targets D) Benchmarking orientation |
B) Avoidance of economies of scale
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A business strategy that seeks to build competitive advantage with its product or service by having it be unique from other available competitive products would be classed as __________ strategy.
A) differentiation B) market focus C) low-cost leadership D) speed-based |
A) differentiation
A business strategy that seeks to build competitive advantage with its product or service by having it be “different” from other available competitive products based on features, performance, or other factors not directly related to cost and price. The difference would be one that would be hard to create and/or difficult to copy or imitate |
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All of the following would be considered organizational skills and resources that foster a differentiation strategy except which one?
A) Strong marketing abilities B) Products of services designed for ease of manufacture or delivery C) Corporate reputation for quality or technical leadership D) Creative talent and flair |
B) Products of services designed for ease of manufacture or delivery
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Sustainable activities that provide all of the following opportunities relative to key industry forces except _________ should become the basis for differentiation aspects within the business's competitive strategy.
A) less price sensitivity of buyers B) rivalry is reduced C) technological changes increase learning and investments D) brand loyalty is difficulty for newcomers to overcome |
C) technological changes increase learning and investments
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The Tick-Tock Clock Corporation is able to successfully meet the needs of its customers more rapidly than any of its competitors can. It is most likely this corporation is engaging in which one of the following business strategies?
A) Differentiation B) Speed-based C) Vertical integration D) Market focus |
B) Speed-based
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Through its use of speed-based strategy, the Tick-Tock Clock Corporation is most likely to gain its competitive advantage by being proficient in all but which one of the following activities?
A) Product development cycles B) Information sharing and technology C) Customer responsiveness D) Product cost leadership |
D) Product cost leadership
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The extent to which a business concentrates on a narrowly defined market is best referred to as ___________.
A) market focus B) low-cost leadership C) strategic alliance D) retrenchment |
A) market focus
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All of the following would be considered emerging industries of the last decade except _______.
A) online services B) solar heating C) airline services D) fiber optics |
C) airline services
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Jerome Washington's company has decided to acquire two other businesses in order to increase its growth and earning potential. In essence, Jerome's company desires to become a multibusiness company. Which one of the following would be least likely to be considered another valid rationale for why the company would desire to take this action?
A) The company wants to be able to monopolize a portion of the market segment. B) The company wants to diversify risks. C) It wishes to increase vertical integration. D) It desires to have an instant market presence without waiting on the process of slow internal growth. |
A) The company wants to be able to monopolize a portion of the market segment.
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The market share of a business divided by the market share of its largest competitor equals the business's ________.
A) relative differentiation strategy B) BCG growth share matrix C) portfolio technique results D) relative competitive position |
D) relative competitive position
Relative competitive position usually is expressed as the market share of a business divided by the market share of its largest competitor. |
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According the BCG growth-share matrix, which of the following would be most likely to possess a low market share and a high growth rate?
A) Dog B) Question mark C) Cash cow D) Star |
B) Question mark
The stars are businesses in rapidly growing markets with large market shares. These businesses represent the best long-run opportunities (growth and profitability) in the firm’s portfolio Question marks are businesses whose high growth rate gives them considerable appeal but whose low market share makes their profit potential uncertain. Question marks are cash guzzlers because their rapid growth results in high cash needs, while their small market share results in low cash generation. Low market share and low market growth businesses are the dogs in the firm’s portfolio. Facing mature markets with intense competition and low profit margins, they are managed for short-term cash flow (e.g., through ruthless cost cutting) to supplement corporate-level resource needs |
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The Denard Corporation currently possesses a low share of its available market. Additionally, this company's portfolio reveals it has extremely low market growth. This business is most likely to be classed as which one of the following according the BCG growth-share matrix?
A) Dog B) Question mark C) Star D) Cash cow |
A) Dog
Cash cows are businesses with a high market share in low-growth markets or industries. Because of their strong competitive positions and their minimal reinvestment requirements, these businesses often generate cash in excess of their needsLow market share and low market growth businesses are the dogs in the firm’s portfolio. Facing mature markets with intense competition and low profit margins, they are managed for short-term cash flow (e.g., through ruthless cost cutting) to supplement corporate-level resource needs |
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All of the following would be considered reasons for why the industry attractiveness-business strength matrix offers improvement over the BCG matrix except _________.
A) the terminology used is preferred and more understandable B) it reduces the need for strategy formulation C) the measures tap many additional factors D) it brings to light important considerations in strategy implementation |
B) it reduces the need for strategy formulation
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Which one of the following would not be classed as a necessary financial strength factor to be considered when a company is constructing its industry attractiveness-business strength matrix?
A) Solvency B) Cash flows C) Sales volatility D) Break-even point |
C) Sales volatility
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The Ride 'Em Cowboy Western Wear Corporation of Houston is very efficient in maintaining low overhead costs. This corporation has excellent skills in operational efficiency and cost management. However it faces few sources of advantage within its industry, with most of those being quite small. Under which of the following industry environments is this corporation most likely to be placed?
A) Specialization businesses B) Stalemate businesses C) Volume businesses D) Fragmented businesses |
B) Stalemate businesses
Stalemate businesses have few sources of advantage, with most of those small. This results in very competitive situations. Skills in operational efficiency, low overhead, and cost management are critical to profitability. |
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Businesses with many sources of advantage that are characterized by high levels of skill in achieving differentiation such as product design and innovation would most likely be classed as which one of the following under the BCG's strategic environments matrix?
A) Volume business B) Fragmented business C) Stalemate business D) Specialization business |
D) Specialization business
Specialization businesses have many sources of advantage and find those advantages potentially sizable. Skills in achieving differentiation—product design, branding expertise, innovation, first-mover, and perhaps scale—characterize winners here. |
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Which one of the following would not be considered a contribution to strategic analysis through the organizations' use of the portfolio approach?
A) It does not address how value is created across business units. B) It helps to convey large amounts of information about business units in a simplified format. C) It serves to convey rationales behind corporate strategies in an easily understandable manner. D) It simplifies priorities for sharing resources. |
A) It does not address how value is created across business units.
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The ______ perspective sees multibusiness companies as creating value by influencing the businesses they own.
A) parenting framework B) synergy approach C) portfolio D) patching |
A) parenting framework
The parenting framework perspective sees multibusiness companies as creating value by influencing—or parenting—the businesses they own. The best parent companies create more value than any of their rivals do or would if they owned the same businesses |
