question

Which of the following is true of the planning process?

answer

Planning is flexible enough to allow for unique circumstances and changing conditions

question

To be effective, goals need to meet 5 specific characteristics which may be remembered as

answer

SMART

question

Contingency Plan

answer

is a type of plan that specifies actions when initial plans fail or events in the external environment create sudden change

question

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

answer

Scenarios

question

Strategy

answer

a pattern of actions and resource allocations designed to achieve the organizations goals

question

Which of the following is one of the six components of the strategic management process?

answer

Strategy implementation

question

In the context of the strategic management process, the _____ is a clear and concise expression of an organization's basic purpose and the scope of its operations.

answer

Mission

question

Resources

answer

are inputs to production that can be accumulated over time to enhance the performance of a firm

question

In the context of resources, company reputation, culture, technical knowledge, and patents are examples of _____ assets.

answer

Intangible

question

Benchmarking

answer

is the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies

question

Once a _____ is completed, managers can take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weaknesses, and countering potential threats.

answer

SWOT analysis

question

Vertical integration

answer

refers to the acquisition or development of new businesses that produce parts or components of the organization's process

question

Which of the following is one of the four categories of business in the BCG matrix?

answer

Cash Cows

question

A competitive advantage typically results from a low-cost business strategy or a(n) _____ business strategy.

answer

differentiation

question

Satisficing

answer

is choosing the first option that is minimally acceptable or adequate

question

illusion of control

answer

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

question

Discounting the future

answer

refers to a bias weighing short term costs and benefits more heavily than long term costs and benefits

question

Which of the following is a potential advantage of using a group to make a decision?

answer

participation in problem solving increases commitment to decisions

question

In the context of decision making, what is the role of a devil's advocate in constructive conflict?

answer

to criticize and point out problems

question

How can constructive conflict improve group decision making?

answer

It increases the knowledge and diverse viewpoints that individuals bring to the group.

question

The strategic management process has six steps:

answer

(1) establishment of mission, vision, and goals; (2) analysis of external opportunities and threats; (3) analysis of internal strengths and weaknesses; (4) SWOT analysis and strategy formulation; (5) strategy implementation; and (6) strategic control.

question

There are four categories of businesses in the BCG matrix:

answer

question marks, stars, cash cows, and dogs. Cash cows are low-growth businesses with a strong competitive position that generate revenues in excess of their investment needs, so they fund other businesses.

question

Gerard realizes that the availability of appliances with embedded computer chips is low in the market. Hence, he uses this lucrative opportunity and sets up a store that sells appliances with embedded computer chips exclusively. Which of the following is Gerard engaging in?

answer

entrepreneurship

question

entrepreneurship

answer

Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity under conditions of uncertainty.

question

entrepreneurship

answer

involves creating new systems, resources, or processes to produce new goods or services/ and or service new markets

question

A difference between entrepreneurs and intrapreneurs is

answer

the presences or absence of corporate support Independent entrepreneurs are individuals who establish a new organization without the benefit of corporate support. Intrapreneurs are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.

question

Which of the following individuals is most likely to become a successful entrepreneur?

answer

Nigel enjoys challenges, has a strong social network, has good knowledge of management techniques, and possesses excellent business skills.

question

successful entrepreneurs

answer

are innovators and also have good knowledge and skills in management, business, and networking. In contrast, inventors may be highly creative but often lack the skills to turn their ideas into a successful business.

question

Which of the following is the difference between inventors and entrepreneurs?

answer

Entrepreneurs have good knowledge and skills in management, business, and networking, whereas inventors lack such skills.

question

To meet the medical needs of a growing population of aged people, there has been an increase in entrepreneurial ventures specific for different medical problems of the aged. Which of the following types of opportunity does this exemplify?

answer

demographic changes

question

An entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location is known as

answer

franchising

question

The difference between the transaction fee and intermediary models of e-commerce is that the transaction fee model charges a fee

answer

for goods and services while the intermediary model charges a fee to bring buyers and sellers together.

question

Which of the following qualities makes it most likely for an entrepreneur to succeed?

answer

opportunity obsession

question

one is more likely to succeed as an entrepreneur if one has certain characteristics:

answer

commitment and determination; leadership; opportunity obsession; tolerance of risk, ambiguity, and uncertainty; creativity, self-reliance, and ability to adapt; motivation to excel.

question

Which of the following entrepreneurial ventures is an example of low innovation and high risk?

answer

An American restaurant serving burgers and fries

question

What is the role of the economic environment in the success of entrepreneurial ventures?

answer

Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital.

question

What is the role of business incubators?

answer

they provide a protected environment for new and small businesses Business incubators, often located in industrial parks or abandoned factories, are protected environments for new, small businesses.

question

Which of the following is true of common management challenges faced by entrepreneurs?

answer

Going global creates challenges that can make survival difficult for a young company.

question

initial public offering

answer

The sale to the public, for the first time, of federally registered and underwritten shares of stock in a company

question

business plan

answer

focuses on an entire venture and describes all the elements involved in starting it. It often has functional plans for marketing, finance, manufacturing, and human resources.

question

In the context of key planning elements, which of the following is true of what venture capital firms consider important for an entrepreneurial venture?

answer

They believe that what counts is a person's ability to execute an idea.

question

Legitimacy (in the minds of the public increases the probability of success of a new business by)

answer

helping a firm acquire other resources such as top managers, good employers, and govt. support

question

Social capital

answer

a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur

question

In the skunk works approach to corporate innovation

answer

risk takers are not punished for taking risks and failing—their former jobs are held for them. The risk takers also have the opportunity to earn large rewards.

question

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is known as

answer

entrepreneurial orientation.

question

Organic organization

answer

depends heavily on an informal structure of employee networks Astute managers are keenly aware of these interactions, and they encourage employees to work more as teammates than as subordinates who take orders from the boss.

question

In a mechanistic org:

answer

the source of guidance is rules.

question

in an Organic org:

answer

the source of guidance is personal judgement

question

Mechanistic org

answer

a formal structure intended to promote internal efficiency

question

Organic structure:

answer

is much less rigid and emphasizes flexibility

question

Which of the following is a characteristic of a mechanistic organization?

answer

obedience to authority as an expression of commitment

question

In which of the following conditions should the span of control be wide within an organization?

answer

Subordinates prefer autonomy to close supervisory control

question

The span of control should be wide when:

answer

(1) the work is clearly defined and unambiguous, (2) subordinates are highly trained and have access to information, (3) the manager is highly capable and supportive, (4) jobs are similar and performance measures are comparable, and (5) subordinates prefer autonomy to close supervisory control. If the opposite conditions exist, a narrow span of control may be more appropriate

question

delegation

answer

entails getting work done through others (vertical structure)

question

Line departments

answer

make things, sell things or provide customer service. (horizontal structure)

question

Staff departments

answer

are those that provide specialized or professional skills that support line departments. They include research, legal, accounting, public relations, and human resource departments.

question

disadvantage of the traditional functional approach of departmentalization:

answer

communication between functions may fall off due to conflicts.

question

disadvantage of the PRODUCT approach to departmentalization:

answer

the duplication of effort is expensive. In the departmentalization approach functions are not centralized at headquarters.

question

disadvantage of the matrix org:

answer

too much democracy can lead to not enough action. The mistaken belief can arise that matrix management is the same thing as group decision making—in other words, everyone must be consulted for every decision; this can lead to slower decision making. And too much democracy can lead to not enough action.

question

Network organization

answer

managers within the org interact closely with members outside it. In a network org, the normal boundary of the org becomes blurred or porous as managers within the org interact closely with network members outside it.

question

coordination by plan

answer

allows interdependent units to modify and adapt their actions as long as they meet the deadlines and target required for working with others. Does not require the same high degree of stability and routinization for coordination by standardization.

question

To cope with high uncertainty and heavy information demands, managers can use two general strategies:

answer

- reduce the need for information - increase its information processing capability

question

strategic alliance

answer

individual organization share administrative authority, form social links, and accept joint ownership.

question

Survivor's syndrome

answer

they display a phenomena where after downsizing, employees who keep their jobs struggle with heavier workloads and become risk averse, self absorbed, and narrow minded.

question

Small batch organization

answer

there are few rules and formal procedures, the staff tends to make their own decisions. Structure tends to be very organic. Decision making tends to be decentralized. The emphasis is on mutual adjustment among people.

question

lean manufacturing

answer

the emphasis is on quality, speed, and flexibility more than on cost, efficiency and hierarchy. If an employee spots a problem, the employee is authorized to halt the operation and signal for help to correct the problem at its source so that processes can be improved and future problems avoided.

question

just-in-time

answer

a system that calls for sub assemblies and components to be manufactured in very small lost and delivered to the next stage of the production process as they are needed.

question

Human resources

answer

focuses on activities that attract, develop, and motivate people at work - which are fundamental aspects of organizational and managerial life.

question

Legislation

answer

is an activity that is conducted during the human resources environmental scanning process.

question

HRM environmental scanning

answer

is part of the planning process and includes labor markets, technology, legislation, competition, and economy.

question

Retraining downsized workers:

answer

is an approach to increasing the workforce labor pool.

question

If an org. needs more people than they currently have (a labor deficit) they can:

answer

- hire new employees - promote current employees to new positions - outsource work to contractors

question

Job analysis

answer

helps increase the value added by employees to the organization (because it clarifies what is required to perform effectively)

question

Which of the following is a function of a job analysis?

answer

to describe the skills and knowledge needed

question

Job analysis does two things:

answer

First, it tells the HR manager about the job itself: the essential tasks, duties, and responsibilities involved in performing the job. This information is called a job description. Second, job analysis describes the skills, knowledge, abilities, and other characteristics needed to perform the job. This is called the job specification.

question

Advantage of external recruiting:

answer

it inspires innovation.

question

Many companies that rely heavily on internal recruiting use a(n) _____ system to advertise open positions, and this includes a list of duties and the minimum skills and experience required.

answer

job-posting

question

advantage of using word of mouth recommendation to fill a job position:

answer

employees tend to know who will be a good fit with the organization. Surveys show that word-of-mouth recommendations are the way most job positions get filled. Not only is this method relatively inexpensive, but employees also tend to know who will be a good fit with the company.

question

Applications and resumes

answer

provide basic info that help prospective employers choose candidates. Helps prospective employers make a first cut.

question

Unstructured interviews

answer

ask different interviewees different questions. The interviewer may also use probes—that is, ask follow-up questions to learn more about the candidate.

question

background check

answer

involves Social Security verification, a criminal records check, and past employment and education verification

question

Cognitive ability tests

answer

measure a range of intellectual abilities, including verbal comprehension (vocabulary, reading) and numerical aptitude (mathematical calculations)

question

Reliability

answer

in the context of selection methods, refers to the consistency of test scores over time and across alternative measurements.

question

adverse impact

answer

A seemingly neutral employment practice that has a disproportionately negative effect on a group protected by the Civil Rights Act is known as One common reason why employers are sued for discrimination is adverse impact—when a seemingly neutral employment practice has a disproportionately negative effect on a group protected by the Civil Rights Act.

question

development

answer

involves teaching managers and professional employers broader skills needed for their present and future jobs.

question

Training

answer

usually refers to teaching lower level employees how to perform their present jobs

question

in a 360 degree appraisal

answer

feedback is obtained from subordinates, peers, and superiors—every level involved with the employee.

question

employees are given credits, which they "spend" by selecting medical and dental insurance, dependent care, life insurance, and so on.

answer

flexible benefit programs

question

formalization

answer

the presence of rules and regulations governing how people in the org interact

Management Test 2 Review – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards