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Chapter 1 Management TRUE FALSE QUESTIONS 1 Whereas effectiveness is concerned with the means of getting things done efficiency is concerned with the ends or the attainment of organizational goals 2 When managers meet organizational goals they are efficient and effective 3 Mintzberg s resource allocation role is similar to Fayol s planning function 4 Coaching and budgeting are skills closely related to the management function of leading MULTIPLE CHOICE QUESTIONS 5 Organizing includes a defining organizational goals b hiring organizational members c motivating organizational members d determining who does what tasks 6 Which of the following is not an example of an interpersonal role according to Mintzberg a figurehead b leader c liaison d spokesperson 7 Technical skills include a knowledge of and efficiency in a certain specialized field b knowledge of and proficiency in a certain specialized field c knowledge of and interest in a general field of endeavor d skill in and proficiency in a certain specialized field 8 Which one of the following phrases is best associated with managerial conceptual skills a decision making municating with customers c using information to solve business problems d product knowledge 9 Which of the following types of skills are described with terms such as abstract situations and visualization a interpersonal b human c technical d conceptual 10 A deliberate arrangement of people to accomplish some specific purpose is a a structure b a process c an organization d an assembly operation Answer 1 7 False difficult p 8 2 10 False difficult p 8 3 17 True difficult p 11 4 24 False difficult p 13 5 55 d difficult p 9 6 68 d difficult p 11 7 78 b difficult p 12 8 81 c moderate 13 9 80 d moderate p 12 10 86 c difficult p 16 Chater 6 True False Questions 1 A decision criterion defines what is relevant in a decision 2 One assumption of rationality is that we cannot know all of the alternatives 3 A policy is an explicit statement that tells a manager what he or she ought or ought not to do 4 A decision criterion defines what is relevant in a decision 5 Nonprogrammed decisions are unique and nonrecurring MULTIPLE CHOICE QUESTIONS 6 Decision making is simplistically typically described as which of the following a deciding what is correct b putting preferences on paper c choosing among alternatives d processing information to completion 7 The process of selecting decision criteria is accomplished by a massaging the data that will support a given decision b flipping a coin to produce a 50 50 chance of being right c determining what is relevant in making the decision d examining the difference in the opportunities available 8 The final step in the decision making process is to a pick the criteria for the next decision b reevaluate the weightings of the criteria until they indicate the correct outcome c evaluate the outcome of the decision d reassign the ratings on the criteria to find different outcomes 9 To determine the a manager must determine what is relevant or important to resolving the problem a geocentric behavior needed b number of allowable alternatives c weighting of decision criteria d decision criteria 10 In allocating weights to the decision criteria which of the following is helpful to remember a All weights must be the same b The total of the weights should sum to 1 0 c Every factor criterion considered regardless of its importance must receive some weighting d Assign the most important criterion a score and then assign weights against that standard Chapter 8 Strategic Management TRUE FALSE QUESTIONS 1 The final step in the strategic management process is implementing the objectives 2 A stability strategy is developed when management decides it will remain profitable by maintaining the status quo in a rapidly changing external environment 3 If Burger King were to buy out Mom and Pop s Burgers Burger King would be growing by vertical consolidation 4 The BCG matrix evaluates SBUs to identify which SBUs offer high potential and which drain organizational resources 5 According to Porter s competitive strategies framework the cost leadership strategy would result in the best quality product at a justifiable cost MULTIPLE CHOICE QUESTIONS 6 In the first step of strategic management identifying the current strategies and goals provide a a foundation for planning b measurable performance targets for employees c a basis to determine if the goals need to be changed d all of the above 7 strategy determines what businesses an organization should be in a Business level b Organizational c Operational level d Corporate level 8 When an organization attempts to combine with other organizations in different and disassociated industries the strategy is known as a strategy a unrelated diversification b horizontal integration c vertical integration d stability 9 If United Airlines merged with Northwest Airlines this would be an example of what kind of grand growth strategy a horizontal integration b acquisition c expansion d vertical integration 10 67 Which of the four business groups in the corporate portfolio matrix has low growth and high market share a question marks b dogs c cash cows d stars 11 Differentiation as a strategy requires a firm to a aggressively search out efficiencies to maintain the lowest cost structure b be unique in its product offering c aim at a cost advantage in a niche market d aim to be similar to its competition in all operations 12 Cost leadership as a strategy requires a firm to a aggressively search out efficiencies to maintain the lowest cost structure b be unique in its product offering c aim at a cost advantage in a niche market d aim to be similar to its competition in most operations 13 A focus strategy requires that a firm have a sustained capital investment and access to capital b strong marketing abilities c strong basic research skills d a reputation for quality or technological leadership 14 In Michael Porter s five forces model of competition is determined by the height of barriers to entry such as economies of scale and brand loyalty a threat of substitutes b threats of new entrants c bargaining power of buyers d bargaining power of suppliers 15 In Michael Porter s five forces model of competition is determined by the degree of supplier concentration and substitute inputs a threat of substitutes b threat of new entrants c bargaining power of buyers d bargaining power of suppliers 16 In Michael Porter s five forces model of competition is determined by the industry growth rate increasing or falling demand and product differences a threat of substitutes b threats of new entrants c bargaining power of buyers d existing rivalry 17 Switching costs and buyer loyalty are examples of strategic forces that determine the a threat of substitutes b threats of new entrants c bargaining power of buyers d bargaining power of suppliers 18 To a degree an organization s commitment to quality and continuous improvement can differentiate it from competitors but constant improvement and reliability of an organization s products and or services may result in a competitive advantage that is a weighted b sustainable c conservative d uncertain 19 An example of is when an organization possesses a characteristic that sets itself apart from competitors and this gives the firm a distinct edge a core competence petitive power c legal propriety petitive advantage 20 Industry growth rate increasing or falling demand and product differences are factors that represent which of the following competitive forces according to Porter a threat of new entrants b threat of substitutes c bargaining power of buyers d existing rivalry SCENARIO QUESTIONS For each of the following choose the answer that most completely answers the question 21 Casey begins outlining her 5 year career goals These should include a the type of job she would like to have b how many people she would like to be managing c the salary she would like to be making d all of the above 22 104 Before Colleen can purchase her competitor s business she finds another business opportunity in a supplier who sells her wheels for lawnmowers This would serve her as a n a unrelated diversification b horizontal integration c vertical integration d related diversification 23 Un Taco Pequeno Scenario Imagine that you are the president of Taco Rocket a new and successful chain of 100 Mexican fast food restaurants The success you have experienced in the last 5 years has you thinking of what to do with the business next Should you expand the business at the current rate Open new and different restaurants What 23 1 Because of the good profits and a fear of growing too fast you decide to keep Taco Rocket in the same business and do not change the menu hoping to retain the same market share and return on investment record This would be considered a strategy a stability b growth bination d diversification 23 2 If you decided to purchase a local five store hardware chain because it was a good investment this would be an example of a a lateral growth strategy b a combination purchase c related diversification d unrelated diversification 23 3 If you decided to concentrate on Taco Rocket s primary business only increasing the menu to include new items such as enchiladas and rice bowls this would be an example of what type of growth strategy a lateral growth b horizontal integration c concentration d related diversification 23 4 You ve decided to purchase a controlling interest in a chain of Oriental fast food restaurants called Honk Kong Fooey However you have decided to change the name of the chain to the Shanghai Grill This move is most representative of what type of growth strategy a lateral growth b horizontal integration c unrelated diversification d related diversification 23 5 Your oldest supplier Zorro Distributors is a family owned firm Recently the firm s president Diego De La Vega made the decision to retire To his disappointment none of his five children stepped forward to take his place at the helm of the firm Sr De La Vega is concerned that if he sells his company to a larger distributor many of his employees will lose their jobs You approach your old friend with a generous offer to buy Zorro and continue its current operations Should your offer be accepted Taco Rocket would be undertaking a lateral growth b unrelated diversification c forward vertical integration d backward vertical integration 28El Taco Grande Scenario It is now 10 years later see previous scenario and as the original owner of Taco Rocket you have seen your business holdings grow substantially The number of stores you own and franchise has grown by 200 percent and you own a number of companies in related and unrelated areas 28 1 You now need to decide how to best manage and utilize the large number of assets represented by the numerous companies you own For each SBU managers must create a strategy to determine how your corporation should compete in each of its businesses a corporate level b business level c functional level d tactical 28 2 Another purchase you made was to acquire a local coffee cart chain with 30 locations around the city You don t see it growing very much but then it doesn t cost much to operate BCG would label this venture a a cash cow b star c question mark d dog 28 3 You called the Boston Consulting Group BCG and they have provided you with some advice based on their famous corporate portfolio matrix Your oldest holding Taco Rocket has not grown much in recent years but due to low debt generates a huge amount of cash According to BCG Taco Rocket would be considered a a cash cow b star c question mark d dog Chapter 10 Organizational Structure and Design TRUE FALSE QUESTIONS 1 Authority is the individual s capacity to influence decisions 2 When decisions tend to be made at lower levels in an organization the organization is said to be decentralized 3 Matrix structure is an organizational structure that assigns specialists from different functional departments to work on one or more projects led by project managers 4 Traditional organizational designs include the simple structure the functional structure and the divisional structure 5 An organic organization would likely be very flexible MULTIPLE CHOICE QUESTIONS 6 Organizational design is based on decisions about a work specialization and departmentalization b chain of command and span of control c centralization and decentralization d all of the above 7 Today s competitive business environment has greatly increased the importance of what type of departmentalization a geographic b customer c product d process 8 The degree to which jobs are standardized and guided by rules and procedures is called a work specialization b centralization c decentralization d formalization 9 A design is not limited to horizontal vertical or external boundary imposed by a conventional structure a learning organization s b threatened organization s c functional d boundaryless organization s 10 A organization consists of a small core of full time employees and temporarily hires outside specialists to work on emergent opportunities work b virtual c modular d learning SCENARIO QUESTIONS For each of the following choose the answer that most completely answers the question Paul Abdul Oil Corporation PAOC began as a relatively small oil company However through the years it has grown to become an international corporation 11 The original entrepreneurial venture consisted only of Mr Abdul and a few employees It was an informal organization and everyone reported to Mr Abdul This is best described as a structure a simple b functional c divisional d matrix 12 A sharp rise in oil prices helped PAOC s business expand Abdul concluded that it was impractical and inefficient for all decisions to continue flowing through his office He granted his key subordinates the authority and responsibility to manage others within their areas of specialty This organizational structure is best described as a organizational structure a simple b functional c divisional d matrix 13 Paul Abdul decided to purchase an oil drilling supply company located in a new country The purchase of this company was classified as a related diversification but distance and the new product line suggested that this newly purchased organization continue to be operated as a separate company In beginning a new phase in the history of Paul Abdul Oil Corporation a structure should be implemented to allow the company to continue to grow a simple b functional c divisional d matrix 14 As PAOC continues to grow a highly trained group of managers and analysts has developed at corporate headquarters This group is highly adaptive in its structure Members of this group do not have standardized jobs but are empowered to handle diverse job activities and problems This group of employees is said to have a n structure a simple b divis

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