Deck 5: Managing the Business

Question 1

The last step in the decision-making process is the selection of the best alternative.

Answer 1

False
Explanation:Implementing the chosen alternative is the last step in the process.

Question 2

Business strategy focuses on improving the company's competitive position.

Answer 2

True
Explanation:Strategic management is the process of helping an organization maintain an effective alignment with its environment. One specific type is business, or competitive, strategy.

Question 3

Long-term goals are derived directly from a firm's mission statement.

Answer 3

True
Explanation:Long-term goals relate to extended periods of time, typically five years or more; long-term goals are strategic goals that are directly related to the firm's mission statement.

Question 4

A firm first sets its strategies and then focuses attention on goals to accomplish them.

Question 5

Corporate culture is largely a result of state and local laws and regulations.

Question 6

Doubling the number of merchants participating in a sales program over the next 10 years is an example of a long-term goal.

Question 7

The effectiveness of managers in using time can be undermined by frequent phone calls.

Question 8

The first step in the control process is to compare actual performance to standards.

Question 9

A strong corporate culture directs employees' efforts and helps everyone work toward the same goals.

Question 10

The starting point in effective management is setting goals.

Question 11

Increasing sales by 4 percent in the next six months would be an example of an intermediate goal.

Question 12

Operations managers are responsible for production,inventory,and quality control.

Question 13

Goal setting helps managers assess performance.

Question 14

When a sales manager compares actual sales to the quarterly sales quota,she is performing the controlling function of management.

Question 15

Many managers spend as much as four hours a day in meetings.

Question 16

Information managers are responsible for getting products from producers to consumers.

Question 17

When IBM analyzes its internal strengths and weaknesses,it is conducting an organizational analysis.

Question 18

It is not possible to change an organization's corporate culture.

Question 19

Changes in technology will result in a decrease in the amount of information that managers will use to make decisions.

Question 20

Contingency planning seeks to identify how a company will respond to change.

Question 21

Which description defines the planning function of the management process?

A) guiding and motivating employees to meet organizational objectives
B) discussing how best to arrange an organization's resources into a coherent structure
C) scanning the business environment for threats and opportunities
D) determining what an organization needs to do and how best to get it done
E) monitoring a firm's performance to make sure that it is meeting its goals

Question 22

Which kind of strategy takes place at the level of the product line and focuses on a firm's competitive position?

A) functional
B) business
C) local
D) fundamental
E) environmental

Question 23

Which element of an organization is defined by shared experiences,stories,beliefs,and norms?

A) its human resources
B) its product philosophy
C) its corporate culture
D) its mission statement
E) its organizational structure

Question 24

Which of the following is TRUE about corporate culture?

A) It can direct employees' efforts toward goals.
B) It is usually determined by outside forces.
C) It cannot be changed.
D) It is easy to change.
E) It rarely affects newcomers in an organization.

Question 25

Which aspect of the management process involves determining what the organization needs to do and how best to get it done?

A) organizing
B) planning
C) controlling
D) processing
E) monitoring

Question 26

What type of skills are needed to understand and work well with people in the workplace?

A) human relations skills
B) technical skills
C) conceptual skills
D) motor skills
E) decision-making skills

Question 27

Hewlett-Packard decides to move toward a more centralized structure.This is an example of which function in the management process?

A) planning
B) leading
C) organizing
D) controlling
E) monitoring

Question 28

What identifies performance targets used by organizations and their managers to measure success or failure at every level?

A) tactics
B) goals
C) strategies
D) mission statements
E) promotions

Question 29

Which type of manager spends most of their time working with and supervising the employees who report to them?

A) first-line managers
B) information managers
C) top managers
D) chief executive officers
E) operations managers

Question 30

Which of the following refers to a person's ability to think in the abstract,to diagnose and analyze different situations,and to see beyond the present situation?

A) human relations skills
B) decision-making skills
C) conceptual skills
D) production skills
E) technical skills

Question 31

Which business constituents analyze their competitive environments and plan,organize,direct,and control the operations of their organizations?

A) stockholders
B) managers
C) regulators
D) agents
E) customers

Question 32

Which description identifies the organizing function of the management process?

A) guiding and motivating employees to meet organizational objectives
B) determining how best to arrange an organization's resources into a coherent structure
C) scanning the business environment for threats and opportunities
D) monitoring an organization's performance to ensure that it is meeting its goals
E) determining what an organization needs to do and how best to get it done

Question 33

When the finance department aims for a 3 percent increase in return on investment in three years,what type of goal is the organization setting?

A) a long-term goal
B) a tactical goal
C) a short-term goal
D) an intermediate goal
E) an organizational goal

Question 34

What type of skills requires defining problems and selecting the best course of action to take?

A) human relations skills
B) production skills
C) conceptual skills
D) decision-making skills
E) technical skills

Question 35

What does e-partnering involve?

A) buying shares of small companies that provide technology unavailable to the "purchasing" company
B) buying shares of small companies that are similar to the "purchasing" firm
C) linking up to the inventory records of another company
D) sharing a Web server with another company
E) advertising another company on the "purchasing" company's Web site

Question 36

SWOT analysis is usually conducted before strategic goals have been established.

Question 37

An organization retrenches by increasing its investment in a particular area.

Question 38

Which type of manager is responsible for implementing the strategies,policies,and decisions made by top managers?

A) first-line manager
B) middle manager
C) supervisory manager
D) office manager
E) financial managers

Question 39

If PepsiCo sets out to increase its share of the snack food market by 10 percent during the next eight years,what kind of goal is the organization setting?

A) a short-term goal
B) an intermediate goal
C) a tactical goal
D) a long-term goal
E) an organizational goal

Question 40

Strategy has a wider scope than planning.

Question 41

Comparing actual performance against standards is an example of which function of the management process?

A) planning
B) organizing
C) leading
D) controlling
E) strategizing

Question 42

What activity do company managers undertake so that they can later measure success or failure at every organizational level?

A) planning tactics
B) setting goals
C) devising strategies
D) auditing skills
E) publicizing promotions

Question 43

Which type of business constituent has titles such as President and CEO?

A) first-line managers
B) top managers
C) middle managers
D) power brokers
E) stockholders

Question 44

Who is responsible for designing and implementing systems to gather,organize,and distribute facts and data essential for the running of the company?

A) marketing managers
B) information managers
C) production managers
D) human resource managers
E) research and development managers

Question 45

Which of the following are responsible for production and quality control?

A) information managers
B) human resource managers
C) first-line managers
D) operations managers
E) marketing managers

Question 46

Steve motivates employees by rewarding them with additional vacation when standards are achieved.This is an example of which function in the management process?

A) leading
B) planning
C) organizing
D) marketing
E) strategizing

Question 47

Which of the following managers are responsible for planning and overseeing the firm's accounting functions?

A) financial managers
B) information managers
C) production managers
D) human resource managers
E) marketing managers

Question 48

Which description identifies the controlling function of the management process?

A) guiding and motivating employees to meet organizational objectives
B) determining how to arrange a firm's resources into a coherent structure
C) scanning the business environment for threats and opportunities
D) monitoring a firm's performance to ensure that it is meeting its goals
E) determining what an organization needs to do and how best to get it done

Question 49

Sometimes a corporation buys and operates multiple businesses in compatible industries as part of its corporate strategy.This is an example of what type of strategy?

A) customer-driven diversification
B) unrelated diversification
C) e-partnering
D) strategic diversification
E) complex collaborations

Question 50

Which of the following BEST describes functional strategy?

A) a strategy for determining the firm's overall attitude toward growth and the way it will manage its businesses or product lines
B) a strategy at the business-unit or product-line level that focuses on improving a firm's competitive position
C) a strategy by which managers in specific areas decide how best to achieve corporate goals through productivity
D) a strategy that assists first-line managers in making day-to-day decisions about motivating employees
E) a strategy that integrates an organization's marketing goals into a cohesive whole by focusing on the ideal product mix to achieve maximum profit potential

Question 51

Camille Graham is a manager who works well with people and makes them feel excited about their work.What type of skills is she illustrating?

A) human relations skills
B) technical skills
C) accounting skills
D) conceptual skills
E) marketing skills

Question 52

Titles such as plant manager,operations manager,and division manager designate which level of management?

A) first-line managers
B) middle managers
C) top managers
D) supervisors
E) technology managers

Question 53

Which of the following BEST describes a mission?

A) an objective that a business hopes and plans to achieve
B) a broad set of organizational plans for implementing decisions made for achieving organizational goals
C) the shared experiences, stories, beliefs, and norms that characterize an organization
D) an organization's statement of how it will achieve its purpose in the environment in which it conducts business
E) an organization's competitive standing in the marketplace

Question 54

Which level of management sets general policies,formulates strategies,approves all significant decisions,and represents the company in dealings with other firms and with government bodies?

A) operations managers
B) production managers
C) top managers
D) middle managers
E) first-line managers

Question 55

An accountant's ability to audit a company's records is an example of what type of skills?

A) motor skills
B) technical skills
C) human relations skills
D) conceptual skills
E) decision-making skills

Question 56

Which level of management is responsible for the overall performance and effectiveness of the firm?

A) top managers
B) first-line managers
C) middle managers
D) supervisory managers
E) human resource managers

Question 57

Which of the following managers are directly responsible for getting products from producers to consumers?

A) human resource managers
B) public relations managers
C) information managers
D) marketing managers
E) financial managers

Question 58

Which of the following managers depend most on conceptual skills?

A) first-line managers
B) top managers
C) middle managers
D) marketing managers
E) financial managers

Question 59

Which of the following BEST describes business strategy?

A) a strategy for determining the firm's overall attitude toward growth and the way it will manage its businesses or product lines
B) a strategy at the business-unit or product-line level that focuses on improving a firm's competitive position
C) a strategy by which managers in specific areas decide how best to achieve corporate goals through productivity
D) a strategy that assists first-line managers in making day-to-day decisions about motivating employees
E) a strategy that integrates an organization's marketing goals into a cohesive whole by focusing on the ideal product mix to achieve maximum profit potential

Question 60

The titles supervisor,office manager,and group leader are examples of which level of management?

A) top management
B) middle management
C) first-line management
D) operations management
E) human resource management

Question 61

Marty uses computer forecasts to determine possible outcomes of an intended change in his division.What element of management is Marty utilizing?

A) strategy formulation
B) goal setting
C) crisis management
D) contingency planning
E) related diversification

Question 62

Which of the following is NOT a characteristic of a solid contingency plan?

A) contact information for an on-site crisis manager
B) information systems backup software
C) an evacuation plan
D) a prioritized list of critical operations
E) a summary of common types of emergencies

Question 63

CFO and controller are titles associated with what type of manager?

A) financial
B) information
C) human resource
D) marketing
E) operations

Question 64

Increasing sales by 4 percent in the next eight months is an example of what kind of goal?

A) tactical
B) strategic
C) short-term
D) intermediate
E) long-term

Question 65

When conducting a SWOT analysis of an organization,which question can help management brainstorm for the threats section of the analysis?

A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Question 66

Which of the following is the BEST example of unrelated diversification?

A) Ford Motor Company merging with General Motors
B) Northwest Airlines merging with Procter & Gamble
C) McDonald's merging with Burger King
D) Tootsie Roll merging with Hershey
E) Bath and Body Works merging with The Body Store

Question 67

Carlos wants to complete his M.B.A.in three years.This is an example of what kind of goal?

A) long-term
B) intermediate
C) short-term
D) objective
E) problematic

Question 68

Which of the following is NOT considered an organizational strength?

A) strong market position
B) dedicated work force
C) changing consumer tastes
D) technical expertise
E) recognized customer relation management

Question 69

When conducting a SWOT analysis of an organization,which question can help management brainstorm for the weaknesses section of the analysis?

A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Question 70

The first step in the planning process is determining goals.What is the next step?

A) developing a strategic mission
B) developing a comprehensive strategy
C) developing an array of tactics
D) developing an operational plan
E) developing a functioning budget

Question 71

What type of analysis focuses on external factors?

A) organizational analysis
B) governmental analysis
C) environmental analysis
D) functional analysis
E) financial analysis

Question 72

The marketing manager wants to increase regional sales by 2 percent each quarter over the next year.This is an example of what kind of goal?

A) long-term
B) intermediate
C) short-term
D) strategic
E) tactical

Question 73

Doreen Madison has been tracking product sales for McCoy Industries.She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend.This is an example of what function of the management process?

A) planning
B) organizing
C) leading
D) controlling
E) budgeting

Question 74

Terrell is being considered for promotion from a plant manager to top management.He is unsure whether he is qualified for the position.He wants to ensure that he is an effective manager,and not simply having success in the workplace because of his multiple promotions in the last few years.Although he's never been a top manager,there are some things he does in his personal life other members of the management team think qualify him for the position.What personal activity does management most likely think is a good indicator of whether or not Terrell will be an effective top manager?

A) He is part of a theatrical group that gives performances to hundreds of people, showing that he is not afraid to speak in front of a crowd.
B) He juggles being a parent, working as a middle manager, and having personal hobbies, showing an ability to do well in all aspects of his life without going overboard in one or neglecting another.
C) He has many siblings, showing that he knows how to share space with a large number of people.
D) He quickly learns how to play new games by following the rules explained to him.
E) He was a member of the debate team in high school and consequently is well-versed in being able to argue both sides of an issue.

Question 75

Starbucks has established itself as the premier marketer of the finest coffee in the world while maintaining its uncompromising principles and continuing to grow.This statement illustrates what aspect of Starbucks' organization?

A) its strategy
B) its tactic
C) its mission
D) its diversity
E) its profitability

Question 76

"Teach For America provides a critical source of well-trained teachers who are helping break the cycle of educational inequity.These teachers,called corps members,commit to teaching for two years in one of 39 urban and rural regions across the country,going above and beyond traditional expectations to help their students achieve at high levels. "Teach For America's 20,000 alumni are playing critical leadership roles in the effort to improve the quality of public education in low-income communities.Armed with the experience,conviction,and insight that come from leading children to fulfill their potential,our alumni are working from all sectors to shape our schools,policies,and investments in low-income communities."
What objective might Teach For America have,based on this description of its company mission?

A) Teach For America will transition from a nonprofit to a for-profit organization in 2015.
B) Teach For America will open a food bank in low-income communities in each of its 39 regional offices.
C) Teach For America will increase the number of its alumni in leadership positions within school systems across the United States by 10 percent each year.
D) Teach For America will change the corps member service commitment to four years, versus two.
E) Teach For America will open ten new regional offices by the year 2020.

Question 77

Which variable of SWOT analysis identifies changing consumer tastes,hostile takeover offers,and new government regulations?

A) threats
B) opportunities
C) strategies
D) internal factors
E) weaknesses

Question 78

When conducting a SWOT analysis of an organization,which question can help management brainstorm for the strengths section of the analysis?

A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Question 79

When conducting a SWOT analysis of an organization,which question can help management brainstorm for the opportunities section of the analysis?

A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Question 80

Which of the following would be classified as opportunities for an organization?

A) government regulation of the organization's services
B) highly unionized workers in the organization's industry
C) new competitors
D) stronger demand for the organization's services
E) economy fluctuations