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MGMT/ORG

New York Times columnist Thomas Friedman noted that globalization has leveled the competitive playing fields between industrial and emerging-market countries. This phenomenon proposes that ____.
the world is flat
T/F There are two levels of management in an organization: top and first-line.
False
A national sales organization has implemented a sets of training courses on its intranet, with a link that allows employees to find and share answers to questions that arise with customers. A system that allows the sharing of knowledge and information throughout an organization is known as _______ management.
knowledge
T/F When Greg meets regularly with his workers to provide encouraging words so that they work hard to achieve the company’s goals, he is engaged in the management function of controlling.
False
T/F George is developing a new employee schedule for his lawncare service due to the increase in business during the summer. While doing this, George is involved in organizing.
True
To help maintain a competitive advantage, the emphasis for most companies is on _____.
production efficiency
Tom, a restaurant general manager, carefully watches his restaurant costs by reusing some items that in the past were immediately thrown away. Tom is an example of a(n) _____ manager.
efficient
Greg, a supervisor, is known by his managers to be sharp in his decisions and has a good track record of meeting his goals. Greg is a(n) ____ manager.
effective
T/F When Paul, a new restaurant owner, is determining which products to offer on his menu, he is involved in the management function of planning.
True
T/F Mintzberg proposed that managers utilize written communication more than verbal communication.
False
Don works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through planning, organizing, leading, and controlling company resources. Don is ___.
managing
T/F Efficiency and effectiveness means to use resources—people, money, raw materials, and the like—wisely and cost effectively.
False
At ABC Manufacturing, employees work together to achieve the company goals and purposes. This describes an ___.
organization
T/F Controlling is the arranging of jobs, people, and other resources to accomplish tasks and responsibilities.
False
ABC Manufacturing employs some of the top professionals in its field, and because of their skills and experience, ABC is highly efficient and outperforms its competitors. ABC Manufacturing has a(n) ____ over its competition.
competitive advantage
T/F Robert is a district manager who oversees several store managers in a national chain of restaurants. Robert reports directly to the vice president of stores and marketing, a member of top management. Robert is a middle manager.
True
When building a new residential development or mall, a national real estate organization typically does not remove many trees, basing its decision on the belief that natural resources are limited, and we need to not compromise the ability of future generations to meet their own needs. This management philosophy is known as ___.
sustainability
The owners of a local restaurant routinely try to develop new menu items and seek better ways of helping their customers; this is an example of ___.
innovation
T/F The management functions are sometimes called the six management parts.
False
T/F Mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical.
False
T/F Organizations can gain a competitive advantage simply by matching their competition in terms of cutting costs and responsiveness to employees.
False
To help maintain a competitive advantage, the emphasis for most companies is on _____.
production efficiency
T/F The work time for most managers typically consists of long periods during the day that are uninterrupted.
False
Using state-of-the-art computer software and hardware to help people work better together is known as ____.
collaborative computing
Being a manager can be one of the greatest avenues to a meaningful life, particularly if the manager ____.
A. likes his or her job
B. works in an organization with a strong training program
C. is working within a supportive or interesting organizational culture
D. is working in a diverse culture
E. has a supportive family
C
Don works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through planning, organizing, leading, and controlling company resources. Don is ___.
a. vision planning
b. delegating
c. entrepreneuring
d. managing
e. developing synergy
d
Maria, the public relations manager of a local library, is meeting with the news media regarding a new reading program for children. Maria is performing the _______ role.
spokesperson
T/F The departments in a retail department store are managed by the general manager.
True
Those who study management will understand how to ___.
a. sell their product
b. relate to their managers and deal with organizations from the outside
c. counsel workers on personal and family issues
d. relate to coworkers and deal with technology
e. better manage money
b
Paula, a plant manager, received an e-mail from the CEO stating that the company will now be focusing on customer service. The e-mail also stated that all plant managers need to implement this policy and coordinate the activities related to this strategy for their lowest-level managers. Paula is a(n) ____ level manager.
middle
To maintain a competitive advantage, the top management of a national furniture store made the decision to increase employee training, add rewards that motivate employees, and look at improving procedures related to disciplining workers. These decisions are part of the ______ role.
leadership
Josh, a college student, has become very interested in helping his community, so he is volunteering in a neighborhood improvement organization. This type of organization is an example of a(n) ______ organization.
a. for-profit
b. green
c. advancement
d. mutual-benefit
e. nonprofit
d
T/F Martina recently met with her manager, Omari, who spent time motivating her by showing Martina how important she is to the company’s success. Martina is now excited to do her part to help the company achieve its goals. Omari was performing the management function known as leading.
True
T/F Both entrepreneurs and managers have a high need for achievement and a strong belief in personal control of destiny.
True
The vice president of human resources for a national electronics retailer is meeting with employees of several stores to present information to workers that their stores are closing and how the company will help employees in the future. This task is part of a(n) _______ role.
a. transition
b. entrepreneur
c. spokesperson
d. liaison
e. disseminator
e
Two of the primary challenges facing managers today are ____.
a. dealing with union and financial issues
b. dealing with the lack of information and union problems
c. dealing with ethical dilemmas and decreasing diversity
d. dealing with employee issues and maintaining good records
e. managing for a competitive advantage and diversity
e
Betty reports to the front desk manager. Betty is responsible for directing the team activities of four cashiers who are responsible for developing a plan to improve customer service. Betty does not have authority over other team members, but she provides guidance, instruction, and direction to them. Betty is a(n) ____.
a. director of the board
b. advisory manager
c. lower-level manager
d. top-level manager
e. team leader
e
Roles in which managers interact with people inside and outside their work units
interpersonal roles
Roles in which managers receive and communicate information with other people inside and outside the organization
informational roles
Roles in which managers use information to make decisions to solve problems or take advantage of opportunities
decisional roles
which managerial roles are apart of interpersonal roles
figurehead, leader, liaison
which managerial roles are apart of informational roles
disseminator, spokesperson, monitor
which managerial role are the folling apart of; resource allocator, disturbance handler, entrepreneur, negotiator
decisional roles
The Dyson Company produces high-quality and top-performing products. The company is an example of a(n) _____________, a group of people who work together to achieve some specific purpose.
a. stakeholder constituency
b. management team
c. organization
d. distributor group
e. supplier network
c
Mr. James Dyson, founder of the Dyson Company is the _________, the company’s most senior and important manager; the one all other top managers report to.
chief executive officer
The Dyson vacuum cleaner, unlike the cleaners produced by its competitors, doesn’t need a bag and doesn’t lose suction. Producing a product that is new or better than its competitors is an example of __________.
innovation
Dyson produces products that are significantly better than its competition. This is known as ______________.
competitive advantage
James Dyson’s success comes from his background in architecture and engineering as well as his _________________, which consist(s) of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together.
conceptual skills
Dyson employs outsourcing as a manufacturing strategy by having the vacuums manufactured in Malaysia. This shows he understands the importance of managing for ____________.
globalization
Dyson’s competitive advantage is the production of more effective and efficient products, such as the high-tech Airblade hand dryer. Which of the following is NOT one of the four building blocks of superior competitive advantage?
a. Customer responsiveness
b. Innovation
c. Quality
d. Empowerment
e. Efficiency
d
James Dyson feels that engineering and designing products is exciting. He supports risk taking and works to develop student engineers’ _________, the job-specific knowledge needed to perform well.
technical skills
By telling employees “Expect failure but don’t accept it,” Mr. Dyson encourages _________.
innovation
Although an effective product, the Dyson washing machine is no longer for sale since it did not meet which of the four building blocks of competitive advantage?
customer responsiveness
Which historical perspective concepts does Project Oxygen’s findings best support?
Hawthorne effect
Google’s attitude toward employees can be most accurately be categorized as _______.
Theory Y
Project Oxygen’s eight key behaviors of great managers are an example of this system’s _____.
outputs
Which quality management viewpoint most accurately describes Google’s Project Oxygen study?
total quality management
T/F The human relations movement was based on increasing sales by utilizing improved marketing and customer service techniques with customers.
False
Tom, a production manager, believes that some of his workers are unhappy with their job, so they are not working as hard as they could be. This reduction in effort is also known as ____.
soldiering
Within her company, Maria utilizes a management style that varies according to the individual and environmental situation, with a strategy for minimizing errors by managing each stage of production. She has also set up a system with inputs, outputs, transformation processes, and feedback. Maria’s management perspective is best described as _____.
contemporary
T/F Behavioral science includes the fields of psychology, marketing, accounting, and geology.
False
T/F Don feels that inefficiency is the cause of increased costs in his production facility. Therefore, he is interested in making improvements in his factory by utilizing all components of a system, which include design, inputs, production processes, outputs, sales, and feedback.
False
T/F The managers of a restaurant have decided to utilize the Hawthorne effect to increase productivity, which means using cameras to film employees at work in order to isolate the parts of a job.
False
T/F A closed-ended system continually interacts with its environment, so it receives feedback from the outside environment.
False
T/F Quantitative management emphasizes the use of accounting to provide the needed internal controls related to inventory.
False
Ann is the owner of a family-owned grocery store. The culture and belief of Ann and the previous owners, her grandfather and father, is to hire good people you believe in and then trust them with responsibility so that they grow into valuable employees. Ann and the previous owners are an example of ___ managers.
Theory y
When more efficient workers earn higher wages, this is known as a _____ pay structure.
differential rate
Sofia, a restaurant manager, has been observing and analyzing the work process of each task because she would like to increase the productivity of employees in the restaurant. This is an example of ____ management.
scientific
Abraham Maslow’s listing of physiological, safety, love, esteem, and self-actualization needs, and his belief that some of these needs must be satisfied before others, was proposed in his _________.
a. hierarchy of human needs
b. theory X
c. hierarchy of human psychology
d. theory Y
e. development process approach
a
T/F After customers buy a computer or receive service from Top Computers and Service, a service representative contacts each customer to conduct a survey. The survey information is a form of output.
False
The Johnsons decided to beautify their home by investing in landscaping. While doing this, they dealt with employees from various departments of the landscaping company, including a sales representative, a designer, the individuals who oversaw and did the work, the office and billing personnel, and also the maintenance personnel. Using the systems perspective, the people required to provide the landscaping services are considered ______.
inputs
Managers in a plumbing company have been having problems with employees starting cliques. To develop more of a team culture, the CEO suggested utilizing Mary Parker Follett’s belief: companies should _____.
a. strive to cut costs and increase efficiency
b. implement a more rigid environment
c. operate as a community, with employees working in harmony
d. utilize time-motion studies
e. increase diversity
c
T/F Abraham Maslow said that all customers and their needs are equal in importance.
False
The father of industrial psychology is ____.
Hugo Munsterberg
The classical management viewpoint emphasized ____.
a. MBO
b. ways to manage work more effectively
c. ways to increase flexibility
d. ways to manage work more efficiently
e. company diversity
d
T/F Theory Y managers are pessimistic and have a negative view of employees. This type of manager believes that workers are irresponsible, lack ambition, and hate work.
False
T/F Max Weber believed that a company that is a bureaucracy never achieves a competitive advantage because it is inefficient and is plagued with management problems.
False
Mateo, an IT manager, has been studying the work methods of each task to increase the productivity of the employees in his department. Mateo is utilizing ____.
scientific management
The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they market, current events, and markets such as housing. All of these independent factors often behave as a single unit based on events and economic news, and respond to the environment and affect the stock market. This is an example of ___.
a. a closed market system
b. behavioral theory
c. complexity theory
d. contingency theory
e. a market web
c
That organizations should be operated as “communities,” with managers and subordinates working together in harmony, is one of the proposals of given by whom ____.
mary parker follett
Behavioral science relies on scientific research for developing theories about human behavior that can be ____.
a. helpful when looking at competitive products
b. used to establish MBO goals
c. used to provide sales tools
d. used to provide practical tools for managers
e. used in behavioral science research
d
Within his company, Greg has set up a system with inputs, outputs, transformation processes, and feedback. Within his organization, he utilizes a management style that varies according to the individual and environmental situation, with a strategy for minimizing errors by managing each stage of production. Greg is utilizing a _______ perspective.
contemporary
When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of ____.
feedback
Tom, the manager of floral shop, is interested in implementing the principles of administrative management, which involves ____.
a. focusing on unprofitable parts of an organization
b. managing the total organization
c. increasing synergy
d. implementing MBO
e. doing time-motion studies
b
Hugo Munsterberg was known as ____.
the father of industrial psychology
Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach _____.
a. emphasizes diversity
b. builds a strong family-type culture
c. is an effective synergy-building approach
d. is an effective cost-reduction tool
e. provides clues to the meaning of your managers’ decisions
e
The contemporary perspective consists of three viewpoints: ____.
systems, contingency, quality management
The new chief information officer of a national pizza chain is using mathematical tools to aid in product ordering and scheduling decisions; this is an example of _____.
management science
The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. This is an example of a(n) ____.
a. structure
b. process
c. stepped process
d. input-output structure
e. system
e
The 17 basic units of motion, identified by Frank and Lillian Gilbreth, were named _____.
therbligs
A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers’ orders. This is an example of ____.
operations management
When Cheyanne, the manager, was discussing a difficult competitive problem with the owner, she asked, “What management approach do you think will work best in this situation?” Asking this question to determine a solution is utilizing ____.
a. scientific management
b. the diversity viewpoint
c. the contingency viewpoint
d. the devil’s advocate method
e. the synergy method
c
A pay structure, in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a(n) _____ system.
differential rate
For years ABC Copier, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its competition. However, over the years, ABC seldom asked customers for feedback. So when some of ABC’s competition responded to what customers need and started offering copiers with new technology, ABC lost much of its market share. ABC utilizes a(n) ____ system.
a. closed
b. internal
c. blind
d. open
e. isolated
a
Sal, a production manager, knows that some of his employees are upset with the new corporate policy, and as a result, are participating in soldiering. To eliminate soldiering Sal can ___.
a. carefully select workers according to their abilities and give workers training
b. reduce training, but increase MBO
c. place workers in any task available, focusing on their interests and not their abilities
d. increase diversity and MBO
e. reduce the use of scientific principles in planning work methods
a
Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals; therefore, the approach Greg and his supervisors need to take to better understand human actions to motivate their employees toward achievement is the ____ viewpoint.
behavioral
psychology, sociology, anthropology, economics are included in the field of _____ _____.
behavorial sciences
A large production company has been utilizing the Hawthorne effect in its 12 international factories, and it has seen great success from implementing the Hawthorne principles that propose that ____.
a. increasing diversity results in increases in worker productivity
b. cutting costs through outsourcing harms employee morale and productivity
c. giving less attention to employees increases worker productivity
d. giving more attention to employees increases worker productivity, if they think managers care about them
e. increasing synergy increases worker productivity
d
The example in the textbook of Paul English of Kayak.com altering an existing open-office seating arrangement by using new employees to change existing seating patterns is an example of ____.
behavioral science research
Right Motors calls its customers after they purchase an automobile from the dealership. In addition, every year customers are asked to complete a short survey about the car they purchased from Right and the dealer’s service. This is an example of a(n) ___ system.
open
Dominique, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in his field, where he learned numerous ways his restaurant and hotel can better serve customers. Dominique is excited that management asked him to present this information to the hotel staff so the restaurant and hotel can make needed improvements. Dominique’s hotel is a(n) _____ organization.
learning
Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of their products. This is an example of _____.
a. MBO
b. scientific management
c. the design approach
d. quantitative techniques
e. behavioral management
d
According to the text, there are specific ways an organization may foster high ethical standards. Which of these methods does IKEA seem to emphasize in its business practice?
a. A formal written set of ethical standards guides the company’s code of ethics
b. Ethical behaviors are rewarded
c. Prospective employees go through a strict screening process
d. The Chief Ethics Officer promotes ethical procedures on a daily basis
e. Top managers support a strong ethical climate
a
How might IKEA’s positive ethical behavior and social responsibility benefit the company?
a. Increased employee misconduct and fraud
b. Declining profits
c. Reduced customer goodwill
d. Declining sales growth
e. Decreased employee turnover
e
Which of the following external stakeholders had the most impact on IKEA’s actions when dealing with the ethical dilemma presented in the case?
a. Owners
b. Employees
c. Governments
d. Media
e. Competitors
d
If you were a manager at IKEA, with which general environment force would you be most concerned when going forward with the decision to fight child labor at its root causes?
a. Sociocultural forces
b. Economic forces
c. Technological forces
d. Demographic forces
e. Legal forces
a
Facebook is facing a(n) ____________, a situation in which they have to decide whether to pursue a course of action that may benefit them but is illegal or unethical.
a. ethical self
b. ethical dilemma
c. social responsibility dilemma
b
If you were to use the __________ approach, you would perform a cost-benefit analysis to determine which option will result in the greatest good for the greatest number of people.
a. utilitarian
b. justice
c. moral-rights
a
If you were to use the __________ approach in deciding an ethical dilemma, your decision would be guided by the fundamental rights of human beings, such as those represented in the U.S. Constitution.
a. justice
b. utilitarian
c. moral-rights
c
If you were to use the ______________ approach, your decision would be guided by respect for impartial standards of fairness and equity.
a. individual
b. moral-rights
c. justice
c
If you were to use the ________________ approach, your decision would be guided by what will result in Facebook’s long-term best interests.
a. justice
b. individual
c. moral-rights
b
All of the following are ways that Apple Inc. has expanded globally, as discussed in the case, EXCEPT
a. Licensing products
b. Franchising
c. Participating in joint ventures
d. Purchasing wholly-owned subsidiaries
e. Global outsourcing
d
If you were a top manager in a large multinational corporation like Apple Inc., it would be most important for you to have qualities of
a. Parochialism
b. Ethnocentrism
c. Geocentrism
d. Polycentrism
e. Egocentrism
c
Which of the following is a reason discussed in the case that Apple Inc. has expanded its operations globally?
a. Greater availability of supplies
b. Lower labor costs
c. Avoidance of tariffs
d. Fewer competitors
e. Greater access to finance capital
b
All of the following are situations that Apple’s top managers must be prepared to address EXCEPT
a. Ignoring language barriers and miscommunications
b. Ordering components and raw materials from foreign suppliers
c. Working with other countries’ law and business practices
d. Communicating with expatriates
e. Working with foreign partners
a
Disney Imagineering creates ideas and builds theme parks all around the world due to _____________.
globalization
With its differently themed lands, live visits from animated characters and animatronics, Disney created its own _______________, a shared set of beliefs, values, knowledge and patterns of behavior common to a group of people.
culture
After its success in the US, the Disney Company expanded its operations to open theme parks in Europe and Asia. This overseas expansion was pursued in order to capitalize on ____________.
a. avoidance of traffic and quotas
b. low labor costs
c. access for finance capital
d. the availability of supplies
e. access to new markets
e
The Disney brand is able to transcend all cultures by bridging cultural gaps across all of the following basic cultural areas EXCEPT:
a. language
b. time orientation
c. religion
d. interpersonal space
e. food
e
As the US represents only 5% of the world’s population, Disney seeks to enter new markets. One important factor to consider when entering a new market is the country’s ____________.
language
It Disney experienced various barriers during their entry into China and had to make some cultural adaptations. If Disney had used a(n) _________ perspective, then the Imagineers would have believed that their native US culture, language and behavior are superior to others.
ethnocentric
The challenges experienced through the development of TomorrowLand at the Hong Kong adaptation of Disney led the Disney Imagineering team to take a(n) _________ perspective in which managers accept that there are differences and similarities between the home and foreign personnel and that they should use whichever technique is the most effective.
genocentric
As Disney is a business firm with operations in many countries, it would be considered a(n) ________.
a. universal company
b. multinational corporation
c. international organization
d. global organization
e. multinational organization
b
The Hong Kong government recognizes the potential economic benefit of Hong Kong Disney World and played a large role in its development. According to the GLOBE project, Hong Kong has high____________________.
performance orientation
Disney’s use of local Hong Kong managers and US managers who live and work in Hong Kong, known as _________________, contributes to its success in the Hong Kong market.
a. third country nationals
b. host country nationals
c. universalists
d. expatriates
e. inpatriates
d
International Fabric buys products for its customers from over 30 countries. The retailer is an example of a company that ____.
imports
T/F The American research committee that promoted one world government and one world economy was known as the GLOBE project.
False
a business firm with operations in several countries is a
multinational corporation
T/F The global village refers to the “shrinking” of time and space as air travel and the electronic media have made it easier for people worldwide to communicate with one another.
True
The trend of the world economy toward becoming a more interdependent system is known as ____.
globalization
The shared set of beliefs, values, knowledge, and patterns of behavior common to its people is a nation’s _____.
a. laws
b. ethical set
c. alliances
d. synergy
e. culture
e
Steve, a recent college graduate in computer programming, is interested in several positions with global companies because he knows that working in other countries exhibits ____ to potential employers according to management recruiters.
a. discipline and flexibility
b. polycentricity and strong leadership skills
c. independence, flexibility, and discipline
d. independence, resourcefulness, and entrepreneurship
e. ethnocentricity
d
The United States has prohibited the import of products from Iran due to the political situation in that nation. This ban is an example of a(n) ____.
embargo
Dave and his wife are expecting their first child this week, but Dave had to attend a very important meeting in Mexico City. While in Mexico, Dave was able to check his phone for text messages every hour, and as soon as his wife went into labor, he was able to return home in less than six hours. This “shrinking” of time and space with air travel and electronic media is known as ____.
the global village
T/F Free trade is when companies offer their goods and services at little or no cost to consumers through bartering, coupons, and donations to enter a new market or with business start-ups.
False
T/F During the annual planning meeting, Alexandria, president of a Fortune 500 company, discussed with the upper management the strategic goal of expanding company operations across the globe. This long-term vision by Alexandria is an example of e-commerce.
False
Best Builders, a home builder in the U.S., makes use of many suppliers to provide quality products in the homes it builds, such as a roofer in the same city and Belize International in Guatemala, which provides some of the highest-quality cabinets available. This use of outside suppliers to help the contractor build homes for customers is known as ____.
outsourcing
T/F Maquiladoras are manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens.
True
T/F Alan, a retired doctor, is interested in starting a nonprofit organization that will include doctors and other medical professionals who travel to low income areas in the United States and internationally to assist with medical needs and open hospitals. Alan’s organization is an example of a multinational organization.
True
Dave’s Furniture in South Carolina produces high-quality furniture and ships its products to customers in over 40 countries. This is an example of ____.
exporting
T/F Franchising allows restaurants internationally to pay a fee plus a percentage of the profits in return for using a company’s name and assistance with management, marketing, and the training of managers and nonmanagement employees.
True
T/F Luis, the owner of a shoe factory in Panama, is unhappy due to a tax that the U.S. government has implemented on shoes exported there to protect U.S. shoe companies. This is an example of a tariff.
True
T/F Central American farmers sell their produce to American customers at a price that is above the price charged by American companies to increase the price of the American products, this is an example of dumping.
False
T/F In discussing Americans as global citizens, Keith Reinhard from the nonprofit group Business for Diplomatic Action said, “Globally, Americans are viewed by the world as quiet humanitarians striving for equality and accord.”
False
Managers who believe that their native country, culture, language, and behavior are superior to all others are ____ managers.
a. polycentric
b. ethnocentric
c. maquiladoras
d. geocentric
e. diverse
b
While traveling in France, Jim and his wife, both Americans, were concerned about how much they can afford to spend in Europe because sometimes the U.S. dollar will buy more goods and sometimes it will buy less, based on changing economic conditions. This change in the values of currencies and how they fluctuate in relation to each other is known as the ____ rate.
exchange
Tom, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. Tom later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies ____.
a. tend to not change due to inexperienced management
b. take more time to start new endeavors
c. can get started more easily and maneuver faster
d. typically maneuver slowly with new ideas
e. can adjust more easily to capital shortages
c
Mexican manufacturing plants with low labor costs and special privileges given to their American owners in return for employing Mexican citizens are known as ____.
maquiladoras
The agreements of the World Trade Organization are based on ____.
GATT
The movement of products between countries without political or economic obstruction is
free trade
According to Rosabeth Moss Kantor of the Harvard Business School, the events that set up conditions for the global economy in the 1980s were when the ____.
a. Berlin Wall came down, Asian countries opened their economies to foreign investors, and there was a worldwide trend of governments deregulating their economies
b. governments of China and India considered implementing certain aspects of capitalism
c. Berlin Wall was built, Asian countries formed their own stock market, and NAFTA was implemented
d. Berlin Wall came down, countries worldwide opened their economies to foreign investors, and there was a worldwide trend of governments regulating their economies
e. Berlin Wall came down, and NAFTA and CAFTA were implemented
a
The GLOBE project is an ongoing cross-cultural investigation of nine cultural dimensions involved in __________ and _______ processes.
leadership and organizational
of the world economy toward becoming a more interdependent system
this is the trend of ___________.
globalization
The United States has prohibited the import of sugar and cigars from Cuba. This is an example of a(n) ____.
embargo
The IMF has ____.
a. provided support to global terrorists
b. helped support some weaker European countries during the recent financial crisis
c. been very helpful in monitoring international terrorists
d. provided significant funding for business start-ups globally
e. ignored the cause of income inequality
b
Alice’s Pasta Kitchen makes quality pasta and sells its products to customers in other countries. This is an example of ____.
exporting
trading bloc consisting of 10 countries in Asia is the ______
ASEAN
The WTO was formed to ____.
a. scrutinize multinational organizations
b. keep an eye on working terrorists
c. monitor business start-ups globally
d. oversee worldwide mergers
e. monitor and enforce trade agreements
e
preference for doing one thing at a time is ________ _____.
monochronic time
George, who owns an international grocery store in Ohio, has benefited highly from the trading bloc that allows him to purchase food products from Central American nations at a nice discount. With many of his customers from Costa Rica, the Dominican Republic and Guatemala, he has benefited from the trading bloc known as _____.
a. CAFTA-DR
b. NAFTA
c. EU
d. Mercosur
e. APEC
a
Don’s Carpet installed carpet at no cost for City Office Supply, in exchange for $1,000 of office supplies. This is an example of ____.
countertrading
Like other international companies, Jane is interested in expanding her candle business globally primarily to ___.
a. utilize export embargos to increase business
b. take advantage of supplies, new markets, and a diverse workforce
c. increase synergy and diversity
d. implement tariffs and import quotas
e. take advantage of supplies, new markets, and lower labor costs
e
John, a construction manager, has been having problems finding quality employees in some of his foreign offices. While speaking with his attorney, Alisha, he mentioned that “in our locations overseas, many of our good employees have been quitting, and as you know, we have numerous lawsuits over personnel policies.” Alisha explained that historically, these types of issues are a result of ____ policies.
ethnocentric
Hannah, an engineer for an oil company, is interested in working overseas at this stage of her life because she knows that foreign work experience demonstrates ________, ________, & _______to potential employers.
independence, resourcefulness, and entrepreneurship
The United States limits the amount of cheese purchased from other countries; this policy is a type of ____.
import quota
According to the watchdog group Public Citizen, NAFTA is responsible for ____.
a. the loss of 845,000 U.S. jobs
b. closing the wage gap between Mexico and the U.S.
c. a higher standard of living among its trading partners
d. a decrease in illegal immigration into the United States
e. the formation of the IMF and World Bank
a
Roberto, the vice president of marketing, is talking to Francis, a sales manager in a foreign office, about several local situations that Francis’s reps are facing in their territory. Roberto tells Francis that he believes there are differences and similarities between home and foreign personnel and practices, and that Francis should use whatever techniques are most effective. Trey is an example of a(n) ____ manager.
geocentric
Quotas are designed to prevent _____.
dumping
Recent protests against World Bank operations involve complaints of supporting countries permitting sweatshop labor or that restrict religious freedom, and _____.
a. financing projects that could damage the ecosystem
b. financially assisting al Qaeda-linked governments
c. instituting unfavorable balance of payments in developing nations
d. ignoring major human rights violations in western Africa
e. encouraging fraudulent lending practices in Latin America
a
Dominique owns an international grocery store where customers can purchase products from other countries. Dominique’s store is an example of a company that ____.
imports
T/F The board of directors are elected by the employees.
False
T/F The macroenvironment, which includes sociocultural, demographic, political-legal and international forces, cannot easily be controlled by organizations.
True
The notion that corporations are expected to go above and beyond following the law and making a profit to help society known is ____.
corporate social responsibility
T/F When individuals or groups are in the process of purchasing a company, this action is known as being a stakeholder.
False
The board of directors, employees, and owners are the organization’s ___.
internal stakeholders
The triple bottom line represents ______, _______, _______, also known as the ____.
______, _______, _______; _____
people, planet, profit; 3 Ps
Paul and Anna Jones are wealthy entrepreneurs who are very interested in helping children who have been abused. Their goal is to donate a percentage of their company profits to helping these children. The Jones’s actions are an example of _____.
philanthropy
standards of right and wrong that influence behavior are ____.
ethics
T/F The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance.
True
An organization’s external stakeholders include ____.
a. employees, owners, and the board of directors
b. customers and employees
c. customers, competitors, suppliers, distributors, strategic allies, employee associations, local communities, financial institutions, government regulators, special-interest groups, and the mass media
d. suppliers, distributors, employees, owners, and the board of directors
e. management and non-management employees
c
Dawn, a young single mother, found a wallet with a large amount of money inside. In the past she has always tried to return the cash to the owner, knowing it is the right thing to do. However, with tough times, she has decided to keep the cash. She told a friend, “I don’t normally do this, but we really need the money. So I really have to do it this one time.” The most likely explanation for Dawn’s behavior is _____.
a. motivated blindness
b. the need-to effect
c. the holier-than-thou effect
d. a depression disorder
e. sociocultural forces
a
T/F A distributor is a person or an organization that helps another company sell its goods and services to customers. Distributors are considered external stakeholders.
True
T/F Tom, the CEO of a large landscaping company, has been studying an article in a business publication that instructs managers how to increase profits through boosting worker efficiency. This is the aim of corporate social responsibility, which states that it is the responsibility of corporations to be profitable even if the other goals in the community are not met.
False
An ethical dilemma is a situation ____.
a. you must emphasize social performance
b. you must emphasize economic performance
c. you review standards of right and wrong that influence behavior
d. in which you have to decide whether to pursue a course of action that may benefit you or your organization but is unethical or even illegal
e. in which you need to decrease costs
d
T/F Tom and Susan, a young couple, are in need of assistance after Tom lost his job as a manager. Receiving unemployment payments and food stamps from the government are examples of philanthropy.
False
T/F Internal stakeholders include the owners, board of directors, customers, suppliers, distributors, and the community.
False
Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a financial advising organization has decided to use cash from newer investors to pay off older ones. The actions of management are an example of ______ ______.
ponzi scheme
While setting up their corporation, Ming and Jie implement a system of governing their organization so that the interests of corporate owners and other stakeholders are protected. This is an example of a _____.
corporate governance
T/F To save money, Paul, the owner of a struggling restaurant produce supplier, has been considering reducing the amount of produce in some cases delivered to busy restaurants, knowing the customers will probably never notice. This decision is an example of an ethical dilemma.
True
T/F A social audit is a systematic assessment of employee happiness within a company.
False
ABC Brothers’ cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply’s janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ____ for ABC Brothers’ products.
distributor
The employees of Mom’s Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical policies outlined in their company’s code of ethics. Pete, a cook, said that “Just today, Joe, our manager, called our supplier to let them know we received an extra case of tomatoes that we did not pay for. And they do this type of thing almost every day.” Mom’s Pizza maintains a(n) _____.
ethical climate
Regulatory agencies that establish ground rules under which organizations may operate are known as _______ ______.
government regulators
Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of that nonprofit is called the _____.
a. strategic board
b. daily oversight committee
c. nonprofit trustees or the directors
d. overall board
e. board of trustees or board of regents
e
Changes in the economic, political, legal, and technological global system that may affect an organization are ______ forces.
international
When Bernard Madoff used money from newer investors to pay off older ones, this was an example of a ____ ____.
ponzi scheme
The relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior are known as ____.
values
When individuals who want to start a new venture obtain many small amounts of money from many people, this type of financing is called ____.
crowdfunding
After more than 100 years in business, Don, the president of a successful family-owned company, wants to give back to the people of the community for the many years of success that they have given to my father and me. He decides to donate a significant portion of profits to a charity every year. What Don’s company is doing is an example of ___.
a. corporate social responsibility
b. economic responsibility
c. responsibility code of ethics
d. legal responsibility
e. corporate governance
a
The macroenvironment includes these forces: _______.
a. diversity, microenvironment, sociocultural, demographic, political-legal
b. economic, technological, sociocultural, diversity
c. globalism, technological, sociocultural, demographic, microenvironment
d. economic, technological, sociocultural, demographic, political-legal, international
e. international, demographic, diversity, family, culture, technology
d
Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer’s best long-term interests; this is reflected by the _____ approach to deciding ethical dilemmas.
indvidual
To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals, compared to keeping those stores open and benefiting fewer people. This logic is an example of the ___ approach.
utilitarian
An organization’s internal stakeholders consist of ______, _____, ______.
board of directors, employees, owners
Patsy, a nurse, has decided to start a home health care service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; as she does this, she is involved with the _____ environment.
general
As the CEO of a company that produces products for schools, Hannah feels that her company needs to not only produce a profit but also do things that benefits society. This type of company attitude is an example of ____.
a. moral rights
b. a green attitude
c. social responsibility
d. corporate philanthropy
e. individual responsibility
c
Ole McDonald, a successful farm equipment supply company in the Midwest, joined with A-Plus Supply, a national hardware and home retailer, so Ole McDonald can open stores in other regions and A-Plus can now offer a high-quality product in the farm community. This is an example of a ___ ____ relationship.
strategic allies
For organizations’ board of directors, and in particular, their oversight of the CEO, the biggest complaint appears to be _____.
a. the ethical code of management
b. the lack of corporate social responsibility
c. the independence of the directors
d. the focus on profit above employee satisfaction
e. the lack of interest in company matters
c
The plant manager of a factory that produces tires told Sal, the purchasing manager, to approach the suppliers of the plant to discuss discounts. A supplier to that factory ____.
a. helps Sal’s company sell its goods and services to customers
b. competes for customers or resources
c. rescinds tax breaks when firms don’t deliver promised jobs
d. joins forces with Sal’s plant to achieve advantages neither can perform as well alone
e. provides raw materials, services, equipment, labor, or energy
e
Phillip said to a dear friend, “I am fed up with my company’s continual disregard for human life and the environment. They just continue to secretly dispose of hazardous chemicals into a nearby stream. I don’t know how they get away with it! I am going to tell somebody today.” Phillip’s decision to tell somebody about his company’s actions is an example of a(n) ____-_____.
whistle-blower
Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ____ to Rebecca and Donna.
competitor
standards of right and wrong that influence behavior are _____
ethics
Jane, a successful store manager, leads her employees by encouraging them and showing that she genuinely believes in them, and she encourages group and team efforts. Jane manages at Kohlberg’s _____ level of personal moral development.
a. unconventional
b. nonconventional
c. conventional
d. postconventional
e. preconventional
c
Mr. Jones, a wealthy businessman who made his fortune in the oil industry, understands the importance of a college education, so he has given over $10 million over the last several years to colleges and universities. This is an example of _____.
philanthropy
New developments in methods for transforming resources into goods or services are _____ forces.
technological
The justice approach to deciding ethical dilemmas is guided by _____.
a. what will result in the individual’s best long-term interests
b. respect for the fundamental rights of human beings
c. respect for society and the environment
d. respect for impartial standards of fairness and equity
e. increasing profits and workplace diversity
d
T/F In the office of every general manager of Relaxing Hotel there is a small poster that reads, “We want to become the only place our customers want to stay for the night while traveling.” This is the vision statement for Relaxing Hotels.
True
A standing plan that outlines the general response to a designated problem or situation is a(n) _____.
policy
T/F Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization.
True
Thomas, the fire chief, told his employees to “Think big and endeavor to be more detailed and caring while at work and in setting goals. Therefore, when you give me your goals, I want them to be specific, measurable, attainable, results-oriented, and have target dates.” Thomas was asking for his workers’ _____.
a. synergy objectives
b. SMART goals
c. strategic goals
d. focused heart statements
e. policies
b
T/F A business plan is a tool used by the federal government to determine how to strengthen the business sector through macroeconomics and microeconomics.
False
A declaration that expresses what the organization should become and where it wants to go strategically is its _______ _______.
vision statement
A music teacher asked her students to set a really hard goal, such as increasing your practice time by 10 hours per week, which would cause her students to stretch beyond what they think is possible, this is known as a(n) ______ ______.
stretch goal
Mr. Jones, the department manager, told his employees that he wanted them to write down their work goals for the year. To help his workers achieve their stated goals, the next thing that he should ask for are each worker’s _____ ______.
action plan
T/F Don, a middle manager for a large restaurant chain, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal.
True
T/F There is little proof that writing out goals helps an individual feel more confident and energetic when entering a new group.
False
Quality Vacuum has been manufacturing excellent vacuum cleaners for over 50 years. In the employee break room is a banner that reads, “We will always provide the highest-quality vacuums at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders.” This statement is Quality Vacuum’s ______ ______.
mission statement
a specific commitment to achieve a measurable result within a stated period of time is a ____
goal
Donna is the service desk coordinator in a department store, and she has set a goal this month of finishing her daily office work quicker so she can assist at the Service Desk earlier in the morning. She knows this will also help decrease theft, which will assist the company in achieving its goal of decreasing costs. Donna’s goal of finishing her office work quicker is a(n) _____.
a. operating plan
b. operational goal
c. strategic goal
d. strategic plan
e. tactical plan
b
T/F Alex, a district manager for a retail hardware store, asked his store managers for their store goals next year. Denise, one of the store managers, said, “I am going to increase my market share significantly next year by visiting businesses.” Alex then responded to Denise with “Precisely how much are you going to increase your market share and by what date?” Alex is asking Denise to formulate a SMART goal.
True
An organization should adopt planning and strategic management to ____.
a. keep employees happy, encourage new ideas, and decrease costs
b. provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage
c. provide encourage new ideas, and increase organization diversity
d. develop MBO, encourage new ideas, and increase profits
e. decrease costs and increase synergy
b
T/F To start work every day, David sits down and sets his goals for the day and then he decides how to achieve them, formulating future courses of action to achieve the specified results. This is the definition of planning.
True
T/F A goal is a specific commitment to achieve a measurable result within a stated period of time.
True
T/F Prior to opening his business, Sal, the owner of The Italian Kitchen, is writing a document that explains the reason for his business. This statement would be a part of his mission statement.
True
Setting goals and deciding how to achieve them is the definition of ____.
planning
T/F The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times.
False
John, the owner of a lawn care service, likes to meet with his employees six months after their yearly evaluation to discuss how they are progressing on suggestions on and plans to improve their yearly job evaluation. At this point, by comparing the six-month results with the past evaluation, John is in the ______ steps of the planning/control cycle.
a. planning
b. organizing
c. control
d. observation
e. termination
c
Writing employee schedules and a list of things to do for the cook is a type of ____.
a. human resource management
b. strategic planning
c. operational planning
d. delegation management
e. tactical planning
c
The mission statement expresses the ____.
a. market for the product
b. types of employees needed
c. expected profitability of the organization
d. purpose of the organization
e. code of ethics
d
Paula, the store manager, asked Tom to organize the prize giveaways for the store’s grand reopening open house. This plan is an example of a(n) ___.
project
Helping people focus on critical problems, choices, and opportunities is possible through _____.
a. planning and strategic management
b. a strong value system
c. MBO
d. planning and diversity
e. effective synergy policy
a
The need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses is expressed in the organization’s _______ _______.
business model
The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by taking corrective action in two ways—namely by _____.
a. receiving feedback, and, if needed, making new plans
b. increasing organization synergy and diversity
c. researching ways to plan better and increasing profits
d. correcting deviations in the plan being carried out or improving future plans
e. improving future plans, and, if needed, cutting costs
d
MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO working as objectives ______ through the organization.
a. cascade down
b. move outward into the community
c. change significantly
d. move upward
e. become less refined and more generalized
a
Fast Delivery trains its truck loaders how to set the packages in the delivery vehicles, so that when delivery drivers are pulling packages off their trucks, they are organized in a specific order and with the label facing forward to reduce errors and save time. This precise method of loading a truck is known is a(n) ____.
procedure
Planning done by middle managers to determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months is ________ _______.
tactical planning
A specific commitment to achieve a measurable result within a stated period of time is a _____.
goal
Clothing maker Patagonia states that its purpose as an organization is to “build the best product, cause no unnecessary harm, [and] use business to inspire and implement solutions to the environmental crisis.” This is the company’s ___.
mission statement
The top management of Tasty Foods, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Greg, a division manager for Tasty Foods, has looked at his resources, and decided how his division can contribute to the two strategic goals set by upper management. These types of objectives set by Greg are _____ _____.
tactical goals
in an __________ the purpose is to motivate subordinates
MBO
A goal is also known as a(n) ____.
objective
Steve, a hotel general manager, has had great success using MBO. Hannah, his district manager, has found that his employees are highly motivated, and she believes that this is the case because in using MBO, Steve ____.
a. rewards his employees with compliments, raises, and other benefits as they meet their goals
b. gives few compliments, but is very honest with his employees
c. has increased training
d. is big on discipline
e. uses the Outward Theory that proposes discussing issues in open meetings
a
When utilizing SMART goals or MBO, deadlines can help you keep your eye on the ______ _____ while simultaneously paying attention to the_______ _____.
____ _____;_____ ______
big picture;necessary details
With increasing competition in the restaurant business, Sal, owner of Mom’s Pizza, is dealing with growing uncertainty. He is meeting with his managers to develop a future course of action to meet company goals. This process is known as _____.
planning
According to Richard Branson, founder of Virgin Atlantic airlines, you can set a really hard goal, such as increasing your class study time 50%, which is “stretching yourself beyond what your mind might think is safe,” also known as a(n) ______ ______.
stretch goal
The planning/control cycle has two planning steps: _____.
____ ___ ____, _____ ____ ____ _____
make the plan, carry out the plan
With SMART goals only a few goals should be chosen, and they should be results-oriented, that ____.
a. meet low cost goals
b. support the organization’s vision
c. keep employees happy
d. support the company’s diversity plan
e. align with the beliefs of the local community
b
A standing plan that outlines the response to particular problems or circumstances is a(n)
procedure
Because several computers and keyboards in the computer labs have been damaged recently by drinks and food being spilled, the department chair of the IT department issued a directive that “Absolutely no food or drink is allowed in any computer lab.” This statement by the department chair is a(n) ______.
a. industry standard
b. rule
c. level of certification
d. certified procedure
e. procedure
b
Alicia, a district manager for a global retailer, is traveling to different stores in her district to discuss with store managers how to increase profitability for the rest of the fiscal year. What is Alicia doing?
a. avoiding the planning/control cycle
b. researching the planning/control cycle
c. eliminating the planning/control cycle
d. controlling the direction of the planning/control cycle
e. forecasting the planning/control cycle
d
A single-use plan encompassing a variety of projects or activities is an example of a ___.
program
Zara’s identification of customer needs can be categorized as which planning and strategic management step?
a. Maintain strategic control
b. Implement the strategy
c. Formulate the grand strategy & strategic, tactical, & operational plans
d. Establish the mission and vision
e. Assess the current reality
e
Why did Zara choose to take a chance and pre-order much less of the coming season’s designs than its competitors?
a. It allowed the company to save money.
b. It corresponded with the company’s mission statement.
c. It was a new idea.
d. It provided opportunities for the company to develop a competitive advantage.
e. It is what the customers wanted.
d
Decisions that retail managers make on which products to pull from the floor and which products to order more inventory are considered as _________.
a. tactical planning
b. bargaining planning
c. strategic planning
d. task planning
e. operational planning
e
Zara’s goals should have all of the following characteristics except __________.
a. being differentiated
b. being specific
c. being measurable
d. being attainable
e. including target dates
a
Making periodic deliveries of products to each Zara store is an example of ________.
a. controlling the direction by improving future plans
b. controlling the direction by correcting deviation in the plan
c. controlling the direction by comparing the results with the plan
d. making the plan
e. carrying out the plan
e

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