MNGT 3100 Fetsch - Exam 2

Which of the following statements is true about the strategy pyramid?

A. Strategy dictates what the organization's values and vision should be.

B. Planning elements at lower levels support those above them.

C. Stakeholders must review and approve the strategy, then the organization fills in the rest of the elements.

D. Each planning element is unaffected by the others.

B

Which of the following is most likely to foster passion and creativity in an organization's members?

A. Enforcing strict guidelines and protocols for every activity.

B. Adopting the mission statement of a leading competitor to replicate their success.

C. Sharing an inspiring vision and clear mission that share what the organization ultimately wants to achieve.

D. Limiting decision making to senior managers in order to streamline the work for other employees.

Nominal Group Technique (NGT), sometimes called "structured brainstorming," can be used to generate numerous creative ideas in the workplace.

T/F: NGT often generates superior results to other methods but requires extensive preparation and takes significant time to achieve those results.

F

Jim Collins is credited with the term BHAG (big, hairy, audacious goals).

When identifying personal goals, which of the following would Collins not recommend?

A. Dream big--you don't know what you can achieve until you try.

B. Be specific and clear with your long-term goals.

C. Align your goals with your values and major interests.

D. Choose a short timeframe to get a quick victory, then set your next goal.

D

Mission and vision statements play which three critical roles?

A. Dictate the organization's hiring practices

B. Lead to establishing the measurable goals by which to gauge success

C. Sell products or services directly to consumers

D. Inform the development and implementation of the organization's strategy

E. Communicate the purpose of the organization to interested parties

B, D, E

Developing an organizational structure and allocating human resources in a way that will achieve the organization's mission

organization

Ensuring that performance does not deviate from standards (expected results)

controlling

Influencing others to help the organization accomplish its mission

leading

Key parties who have some influence over the organization or an interest in its future; can include employees, customers, investors, suppliers, regulators, and special interest groups

stakeholders

A future oriented declaration of the organization's purpose and aspirations (defines ideal future condition for the company)

Vision statement

Communicates the organization's "reason for being" and how it aims to serve its key stakeholders (describes who the company is and what it does)

mission statement

What do an organization's values represent

A. the beliefs, principles, and standards important to an organization

B. The specific tasks and responsibilities of an organization's employee

C. The hierarchy and reporting structure used by an organization

D. The strategy an organization will use to achieve its financial goals

A

Creating the vision and mission statements, and deciding upon a strategy are part of the ____________ function of management

A. Leading

B. Organizing

C. Controlling

D. Planning

What is the primary goal of brainstorming?

A. to limit participation to the most intelligent members of an organization

B. to gain consensus about the first reasonable option identified

C. To generate a large number of ideas without judgement

D. To identify the best solution that is similar to previous decisions

C

The stakeholders most often emphasized in mission statements are

A. leaders and the local community

B. Suppliers and competitors

C. customers and employees

D. The government and special interest groups

C

An organization's strategy:

A. sets specific operating procedures to be followed by front line managers

B. Addresses how it plans to accomplish its mission and vision

C. Communicates the hierarchal corporate structure to its stakeholders

D. Establishes systems used to support its goals and objectives

B

Which of the following statements is true about SWOT analysis?

A. SWOT analysis should only be conducted once during the strategic planning process.

B. SWOT analysis identifies an organization's internal strengths and weaknesses as well as external opportunities and threats

C. SWOT analysis focuses solely on financial performance indicators

D. SWOT analysis is complex and time consuming so it should only be attempted by specialists

B

A __________ is seen when an organization is very clear about its vision and mission, and everyone in the organization understands the plan for achieving them.

strategic focus

Which of the following answers the question: How should we complete within a specific industry?

A. Fiscal strategy

B. Corporate strategy

C. Functional strategy

D. Business strategy

D

Strategic management consists of strategy formulation and strategy implementation. Where does strategy formulation fit within the POLC framework?

A. Planning

B. Organizing

C. Leading

D. Controlling

A

In strategic management, what is the objective of synergy?

A. To capture more customers by competing in several unrelated activities

B. to create positive interaction between two or more related activities

C. to build a portfolio of businesses that will attract investors

B

In strategic management, what is the objective of diversification?

A. to build a portfolio of businesses that will attract investors

B. to spread out risk and opportunities over a larger set of businesses

C. To attract new employees from different backgrounds

D. To create a positive interaction between two or more related activities

Identifying the industry or industries the organization should compete in (considers the concepts of synergy and diversification)

Corporate strategy

Which of the following best describes the business strategy term "straddling" (also known as "stuck in the middle")

A. A company successfully differentiating its products while maintaining low costs

B. A company that performs poorly because it tries to pursue multiple business strategies simultaneously

C. A company focusing exclusively on niche markets to avoid direct competition with larger firms

B

When an organization possesses something that is valuable, rare, and inimitable - something they can do better than their competitors - then they have __________________

competitive advantage

Using Porter's five forces analysis, companies are likely to generate lower profits when which of the following is true?

A. It is difficult for new firms to enter the industry.

B. The power of suppliers is strong.

C. There are few substitutes available.

D. There is little rivalry between competitors.

B

Deciding how to compete within a particular industry

business strategy

Lowest price for a reasonable quantity

Cost leadership

Superior product design and features

differentiation

Specialization based on the needs of a narrowly-defined market

focus on a market niche

__________ represent the steps to implement the strategy, leading to accomplishing the organization's mission.

goals

An important feature of management by objectives (MBO) is its focus on __________.

A. costs

B. effort

C. results

D. activities

C

Which of the following statements is not true about balanced scorecards?

A. The four measures included on a balanced scorecard are: Learning and growth, internal processes, customers, and financial performance.

B. The Sarbanes-Oxley Act requires all public companies to include balanced scorecards in their quarterly and annual reports.

C. Balanced scorecards bind short-term actions to long-term outcomes.

D. Using a balanced scorecard helps companies prioritize and budget for beneficial activities.

B

The most common performance evaluation error is __________, and managers often realize that they are committing this mistake

A. providing timely feedback

B. being too honest

C. being too specific

D. being too lenient

D

Precise, time based, measurable actions that support the completion of a goal

objectives

Assessments of measures that benefit the firm directly and immediately, such as sales (on a balanced scorecard)

financial performance

Examines elements such as customer satisfaction and retention (on a balanced scorecard)

Customers

Looks at organizational efficiency and reliability (on a balanced scorecard)

Internal processes

Explores skills training for employees that will benefit the organization in the future (on a balanced scorecard)

learning and growth

A useful feature of balanced scorecards is that they...

include both leading and lagging indicators of performance

The timing of employee performance evaluations should coincide with the needs of the organization and the __________________ of the employee

developmental needs

In a performance evaluation, which of the following indicators of performance is easiest for a manager to describe and quantify

attendance and punctuality

It is important to align incentives with objectives that lead to organizational success because misaligned incentives can promote problematic behaviors.

True or false: We should not be surprised that professors may pay little attention to their classroom instruction if their promotion/tenure is primarily based on their published research.

T

The broader principle behind __________ is to make sure that everybody has a clear understanding of the organization's goals, as well as awareness of their own roles and responsibilities in achieving the objectives that will help to attain those goals.

management by objectives

Which of the following statements is not true about performance evaluations?

A. Performance evaluations help subordinates understand what is required of them and how they can improve.

B. Giving performance evaluations ultimately decreases morale, so they should be vague and infrequent.

C. They help managers feel more honest in their relationships with their subordinates.

D. They document past performance and may be reviewed years later when employees are being considered for promotion.

B

Which of the following statements is not true about corporate social responsibility (CSR)?

A. CSR issues can only be advanced at the expense of economic performance.

B. CSR is about how companies manage their business processes to produce an overall positive impact on society.

C. CSR is the degree to which a firm's actions respect individuals, communities, and the natural environment.

D. CSR creates long-term shareholder value by managing social, environmental, and economic opportunities and risks.

A