Management Exam 2

Chapters 6,7,8, & 20

strategic goals are normally set by

president/ceo, top managers

tactical goals are normally set by.. for example

vice president, middle managers

operational goals are often set by

lower tier managers such as supervisors and team leaders.

in the planning process, what is the role of tactical goals and plans?

links strategy to operations by specifying how resources will be allocated to achieve strategic goals and ensuring coordination across departments.

in the planning process what is the role of strategic goals and plans?

company sets direction

what role does the mission statement play in the planning process?

sets purpose of business

which of the following would be categorized as level 1 / mission statement?

board of directors

which of the following would be categorized as level 2 / strategic goals and planning?

top management

which of the following would be considered as a level 3 / tactical goals and plans?

middle management

which of the following would be considered level 4 / operational goals and plans?

lower level management

“we seek to provide a 14% or greater annualized return of investment for our shareholders.”

strategic goals and plans - implemented by top management like presidents / ceo’s

“we seek to improve efficiency by implementing a new computerized payment system.”

operational tactics and goals - implemented by lower level management like managers and supervisors

“we seek to expand by opening 150 new restaurant locations in the next 10 years.”

tactical goals and plans - implemented by middle management like a vice president

contingency plans are

plans specified to use when the company is faced with unforeseen circumstances

indicate whether the following scenario represents strategy development or strategy execution: communication throughout process

executing

indicate whether the following scenario represents strategy development or strategy execution: determine human resource needs

developing

indicate whether the following scenario represents strategy development or strategy execution: identify the time constraints involved

developing

indicate whether the following scenario represents strategy development or strategy execution: obtain information needed

executing

indicate whether the following scenario represents strategy development or strategy execution: understand strategic plans

developing

development involves:

understanding strategic plans

specify the resources available

identify the time constraints involved

determine the human resources needed

recognize the resources required

execution involves:

obtaining the information needed

communicate throughout process

assess outcomes

monitor activities

which of the following factors are relevant for successfully executing tactical plans?

the manager must monitor ongoing activities derived from the plan to be sure the results are as expected

top management must be notified at each critical stage of the tactical plans execution

the team members must be congratulated for each successful step

development:

gathering information and making decisions

execution:

specifying activities, allocating resources, and taking action

when managers approach the execution of a tactical plan, what kinds of activities are involved?

anticipating conflicts,

distributing resources,

evaluating results,

planning strategically,

evaluating the course of action

which type of plan is specifically designed to carry out a course of action that is not likely to be repeated in the future?

single - use plan

an organization is planning major corporate acquisition that involves merging 2 complete operational systems. Which single - use plan is best suited for an endeavor of this scope?

program

a company establishes a standing directive: all customer returns will be accepted within 30 days regardless of purchase location. how is this plan classified?

policy

detailed step by step instructions that explain exactly how hr reps must process employee - relations, disputes are known as a:

standard operating procedure

a warehouse supervisor needs a plan to automatically replenish inventory whenever stock levels drop below a critical threshold. which plan type should be implemented?

standing plan.. explain why tk

in your role as a communication manager, you state that the company communicates to its stakeholders directly, not through requests for quotes through journalists. what type of plan is this?

policy

a schedule for completing the redesign of an organization gardens and landscape is an example of what?

single use plan

a plan for designing a now computer application is an example of what?

single use plan

a rule that prohibits the use of company computers for personal communications is an example of what?

standing plan

procedures for responding to customer complaints is an example of what?

standing plan

a sales manager sets an ambitious goal for the team to increase revenue by 300% over the next quarter, despite the company having a limited marketing budget and no product releases. the sales team becomes demoralized and stops attempting to reach the target. which barrier to goal setting is presented in this scenario?

inappropriate goals

to resolve the issue where employees feel demoralized by an unrealistically high 300% revenue growth target, which strategy should the manager implement to overcome this barrier?

set goals that are realistic and attainable

a technology firm creates a strict 3 yr strategic plan for a software. 6 mo into execution, a competitor launches a revolutionary ai technology that renders the firms plans obsolete. despite this shift, executive leadership insists on following the original 3 yr plan. which barrier to goal setting is affecting the organization?

dynamic environment

a company’s ________ serves as an organizational plan outlining how the company will create a competitive advantage.

strategy

after a company has analyzed the environments in which it operates and develops a specific plan of action, it becomes time for…

strategy implementation

a regional grocery chain conducts a SWOT analysis. management identifies high employee turnover and outdated inventory software within its store network. how should these 2 factors be categorized?

internal weakness

executive leadership at a consumer electronic conglomerate is evaluating whether to sell off its appliances division and acquire a cloud computing startup. which level of strategy is being executed?

corporate level strategy

a boutique manufacturer produces custom hand crafted leather goods targeted exclusively at luxury equestrian buyers. which of porters generic strategies is the firm utilizing

focus strategy

an executive team decides to cultivate a corporate culture centered on customer service, innovation, and creative freedom. which business-level strategy does this cultural alignment best support?

differentiation strategy

According to the Miles and Snow typology, which type of organization maintains stability in its core operations while cautiously imitating successful product innovations introduced by competitors?

analyzer

A firm shifts strategies frequently in response to environmental shocks, lacks a clear strategic plan, and consistently fails to anticipate competitive trends. How should this firm be classified?

reactor

In the Boston Consulting Group (BCG) Matrix, how is a Strategic Business Unit (SBU) classified if it operates in a high-growth market but holds a low relative market share?

question mark

A business unit generates substantial positive cash flow while holding a dominant relative market share in a mature industry with low overall market growth. Which BCG Matrix quadrant does it occupy?

cash cow

A tech startup’s mobile application experiences sudden, explosive increases in user demand and rapid sales growth. Which operational challenge is most critical for management during this stage of the business life cycle?

managing inventories and supply capacity

Which of the following represents a primary strategic advantage achieved through international diversification?

locating operations closer to key natural resources and target customer markets

You are the CEO of a large scanner manufacturer. You just caught a department manager embezzling money from your company. The decision you make about whether to fire the department manager is a:

programmed decision

In 2020, Facebook announced plans to introduce a mobile gaming app designed for live gameplay. The app took several years to develop and was tested with users for 18 months before its release. The decision Facebook made to develop a mobile gaming app is a:

non programmed decision

Your company typically increases each department’s budget by a certain percentage over the prior year’s budget. However, this year managers were asked to consider whether each budget item is still necessary and whether new budget items are needed to meet the department’s needs. As a result, this year’s budget process is a:

non programmed decision

Every morning when you walk into Starbucks, you order the same thing: a venti green tea Frappuccino with extra whipped cream. You can’t drink anything else at Starbucks because you don’t like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. Your decision about what to order at Starbucks today is a:

programmed decision

name the order of the rational decision making steps:

1. define the decision

2. identify the alternatives

3. evaluate the alternatives

4. select the best alternative

5. implement the chosen alternative

6. evaluate the results

After you review the six steps with Lynn, she asks for an example of how to identify alternatives as she decides on a college major. Which of the following is the correct example to give to Lynn?

Lynn would make a list of majors she might want to study

Amish has just created a new soft drink, which he calls “Punjab.” Flavored with ginger and cumin, the drink cost $20,000 to develop, because of the need to get and verify patents and develop a unique bottle. Punjab has been on the market now for three years, and Amish has sold only 300 cases. However, this year, he is considering spending another $20,000 to develop a new marketing plan for his product. If he sells it in convenience stores only, it will have to sell more, right?

Escalation

If you are concerned about groupthink negatively influencing your team’s decisions, which tactic could you use to minimize the potential for groupthink?

Plan for follow-up meeting where divergent opinions can be expressed

A manager decides whether to fire an employee caught embezzling funds based on established company policy and standard procedures. How is this decision classified?

programmed decision

A consumer electronics firm evaluates whether to sell its appliance division and acquire a cloud computing startup. What type of decision is being executed?

Nonprogrammed decision

Which decision-making condition exists when a decision maker lacks complete certainty, but available data allows them to assign objective probabilities to various outcomes?

state of risk

When an individual must make a choice under extreme unpredictability without reliable data to estimate probabilities (such as moving to an unfamiliar city), they are operating under a:

State of uncertainty

What is the correct sequence of steps in the Rational Decision-Making Process?

Define decision, Identify alternatives, Evaluate alternatives, Select best, Implement, Evaluate results

A manager listing all potential academic majors or candidate strategies is engaging in which step of the rational decision-making model?

Identifying alternatives

Why is the classical/rational decision-making model difficult to apply completely in real-world organizations?

Managers face limited information, time constraints, and cognitive limits.

According to the Administrative Model of decision making, managers select the first alternative that meets a minimum threshold of acceptability rather than searching for the optimal solution. This concept is called:

Satisficing

A business continues to pour thousands of dollars into a failing product line or software fix long after evidence shows it is ineffective. Which behavioral phenomenon is occurring?

Escalation of commitment

An experienced department store manager immediately senses that a customer will cause trouble before any words are spoken, relying on years of accumulated experience. What decision-making element is being used?

Intuition

An informal alliance of individuals or independent business owners formed to combine power and achieve a common goal is known as a:

Coalition

Which of the following is a key advantage of group decision making over individual decision making?

More knowledge, information, and varied perspectives are considered.

Which team decision-making format allows members to freely interact, openly argue, debate, and deliberate to reach consensus?

Interacting group approach

What effective tactic can a team leader use to minimize the risk of Groupthink during major decision-making processes?

Plan a follow-up meeting where divergent opinions and remaining doubts can be expressed.

When Hewlett Packard buys electronic components and assembles them into computers, the activities that guide this process are known as

operations management

When setting your organization’s strategy, you take into account its ______, which is its capability to transform inputs into products or services.

operations

As manager of Hair’s Why, you frequently hear customers ask for other services beyond what you provide. Hair’s Why focuses on color and cuts, but customers sometimes request waxing and tanning. As you consider the requests, what kind of decision are you making?

A product–service mix decision

Hair’s Why transforms clients aesthetically, but it doesn’t create a tangible outcome such as a good. What kind of operations takes place at Hair’s Why?

Service operations

Technology is the set of processes and systems used by organizations to convert resources into products or services. Which process must be applied in order for a company to ensure its work can be completely performed by machine?

automation

Craig manages the books for the Silver Spoon restaurant. In the past, he’s hand-entered charges and payments into his accounting ledger. When his accountant reviewed his records, she found several errors. Which process should Craig seek to use to address this problem?

automation

Operations Management

The set of managerial activities used by an organization to transform resource inputs into products, services, or both

• Manufacturing:

• A form of business that combines and transforms resource inputs into tangible outcomes (goods).

service organization

An organization that transforms resources into an intangible output and creates time or place utility for its customers.

Product-Service Mix

The set of products and services that an organization offers to customers, which must be determined as part of strategic planning.

capacity

The amount of products, services, or both that an organization can produce under normal conditions.

Layout (Operations)

The physical configuration of facilities, equipment, workstations, and people in the production process.

Product Layout

A facility layout organized around products, best used for high-volume, standardized production lines (e.g., assembly lines).

Process Layout

A facility layout organized around processes or functions, best used for custom or low-volume goods (job shops).

Fixed-Position Layout

A facility layout in which the product remains stationary while workers and equipment are brought to it (e.g., building a ship or airplane).

Cellular Layout

A facility layout in which workstations are grouped into a cell that can produce a variety of similar items.

Supply Chain Management (SCM)

The process of managing the entire sequence of suppliers and activities that span all stages of getting a product to the final customer.

Just-In-Time (JIT) Inventory

An inventory system that has necessary materials arrive at the workstation precisely when they are needed, reducing carrying costs and waste.

Quality

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Total Quality Management (TQM)

A strategic commitment by top management to continually improve all organizational processes, products, and services with a focus on quality.

Productivity

An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them.

Total Factor Productivity

• An overall indicator of how well an organization uses all of its resources (labor, capital, materials, and energy) to create products and services.