Quiz 1 (from Chapter 1 to Chapter 3)

Alba Motorbikes is known for its heavyweight motorcycles. The company places emphasis on
the quality of the bikes and after-sale service. The brand also enjoys customer loyalty. This
scenario described Alba Motorbikes'
A. distinctive competence.
B. scope.
C. process gain.
D. competitive disadvantage.
E. related diversification.

Which of the following is a Theory Y assumption?

A. Social processes do not influence the performance of workers.
B. People are not internally motivated to achieve their goals.
C. People do not naturally dislike work.
D. People perform better when they are threatened by the manager.
E. People prefer to be directed, to avoid responsibility, and to want security.

Which of the following is most closely associated with an overall cost leadership strategy?
A. Manufacturing highly-customized products
B. Manufacturing products in bulk
C. Providing highly efficient customer service that is better than any other competitor
D. Selling products at high prices
E. Using expensive raw materials

Which of the following statements is true about strategic goals?

A. They are set by an organization's middle managers.
B. They are set by first-line managers.
C. They provide plans for the day-to-day operations of an organization.
D. They focus on broad and general issues.
E. Their focus is on short-term issues.
Determining how a company's activities and resources are to be grouped is called
A. leading.
B. controlling.
C. divesting.
D. planning.
E. organizing.

Which of the following statements about first-line managers is true?

A. They are primarily responsible for implementing policies made by top managers.
B. They are typically involved in creating overall organizational strategies and goals.
C. They officially represent their organization to the external environment.
D. They typically spend a large proportion of their time supervising the work of their
subordinates.
E. They make decisions about activities such as acquiring other companies and entering or
abandoning various markets

Two or more companies that work together in joint ventures or other partnerships are called
what?
A. Strategic partners
B. Competitors
C. Customers
D. Regulators
E. Suppliers

In the context of SWOT analysis, which of the following would be considered as an

organization's strength?
A. Exiting competitors
B. High overhead costs
C. Favorable government policies
D. Motivated employees
E. High employee turnover rate
During the introduction phase of the product life cycle
A. companies must sacrifice product quality.
B. most companies tend to downsize.
C. demand may be very high.
D. competition is at its peak.
E. sales volume is the highest.

The management at Loft Corp. has introduced new employment policies. The mangers are now
tracking and monitoring the implementation of the new policies. Which of the following
management functions is illustrated in the scenario?
A. Decision making
B. Controlling
C. Organizing
D. Leading
E. Planning

A business manufactures top-of-the-line cabinets. The _____ dimension of its general

environment includes computer-assisted design software that helps to convert wood and
people's idea into lovely, functional cabinets.
A. Legal
B. Sociocultural
C. Technological
D. Political
E. economic

A difference between tactical and strategic plans is that

A. tactical plans have a more concrete focus.
B. tactical plans are set for and by the board of directors.
C. tactical plans have broader time horizons.
D. strategic plans are developed by first-line managers.
E. strategic plans deal with the day-to-day operations of an organization.
Which of the following accurately describes the responsibility of a corporate board of directors?
A. Exerting considerable influence by using the media to call attention to their positions
B. Helping the company get the expertise they lack from other companies
C. Ensuring the firm is run to best serve the stockholders' interests
D. Gaining legal property rights to the business by buying stock
E. Protecting the public from certain business practices or to protect organizations from
one another

Scientific management focuses on

A. improving the performance of individual workers.
B. increasing employee turnover.
C. analyzing the external rather than the internal environment of an organization.
D. encouraging soldiering among employees.
E. increasing overhead costs.

A management process is considered to be effective when:

A. overhead production costs are increased.
B. the right decisions are made and implemented.
C. decisions are made independently of the organization's external environment.
D. the same amount of resources is allocated to all the functions of the organization.
E. the organization is highly centralized.

Alpha Inc. is a large shoe manufacturer that caters to a large customer base. In addition to the
high volume of shoes it manufactures, the company sells simple-designed sneakers for low
prices. Many customers buy Alpha shoes because they are durable and inexpensive. Which of
the following strategies is illustrated in the scenario?
A. Overall cost leadership strategy
B. Market diversification strategy
C. Differentiation strategy
D. Divesting strategy
E. Market development strategy
Alex, one of the proprietors of Atlas Corp. is worried. The stock market was not doing well,
unemployment was 10 percent, inflation was on the rise again, and government debt was still
increasing. These concerns of Alex are related to the _____ dimension of the general
environment of Atlas Corp.
A. Legal
B. Sociocultural
C. Technological
D. Political
E. Economic

When organizations relate to their environments in ways that involve ethical dilemmas and
decisions, these situations are said to fall within the context of the organization's _____
responsibility.
A. Legal
B. Ethical
C. Social
D. Cultural

Operational goals are concerned with

A. shorter-term issues associated with the tactical goals.
B. longer-term issues associated with the tactical goals.
C. shorter-term issues associated with the strategic plan.
D. longer-term issues associated with the strategic plan.
E. longer-term issues associated with the operational plan.

Kelly, a manager, studied the performances of the various business units of her organization.
After making an assessment, Maria came to the conclusion that the overall costs of the
organization can be reduced by integrating the functions of two of the business units. This
scenario illustrates Kelly's _____ skills.
A. Time management
B. Technical
C. Conceptual
D. Interpersonal
Which of the following is a concern of the technological dimension of an organization’s general
environment?
A. Organization’s policies and practices
B. Inflation, interest rates, and unemployment
C. Tools, methods, and technology
D. Government regulations

_____ can be defined as a set of activities directed at an organization’s resources, with the aim
of achieving organizational goals in an efficient and effective manner.
A. Economics
B. A theory
C. Management
D. Self-dealing
E. Divestment

Which of the following draws from psychology, sociology, anthropology, economics, and
medicine?
A. Organizational behavior
B. Scientific management
C. Administrative management
D. Systems perspective
E. Contingency perspective

The set of broad dimensions and forces in an organization’s surroundings that determines its
overall context is called the _____ environment.
A. Task
B. General
C. physical work
D. Regulatory
E. ethical
_____ skills refer to the abilities of managers to think in the abstract.
A. Time management
B. Technical
C. Conceptual
D. Interpersonal
E. Communication

Which of the following is an accurate difference between the task environment and the general
environment?
A. The general environment is quite complex, whereas the task environment is very simple.
B. The task environment provides useful information more readily than the general
environment.
C. The task environment deals with more abstract dimensions than the general
environment.
D. The general environment’s impact is short term, whereas that of the task environment
is long term.
E. The general environment includes competitors and regulators, whereas that of the task
environment includes customers, suppliers, and strategic partners.

Which of the following statements is true about tactical goals?

A. Their focus is on how to operationalize actions necessary to achieve strategic goals.
B. Their focus is on broad and long-term issues such as increasing the profitability of the
organization over a period of time.
C. They are set for and by top managers.
D. They are set for and by the board of directors.
E. They are broad and nonspecific.

Strategy formulation is the

A. set of decisions an organization makes about how it will distribute its resources.
B. method by which strategies are operationalized or executed.
C. set of processes for determining the strategies that will be used by an organization.
D. process of evaluating an organizations strengths and weaknesses.
E. set of decisions an organization makes to neutralize threats and avoid weaknesses.
Which of the following actions represents an attempt to manage social responsibility through
ethical compliance?
A. Requiring top financial managers to ensure compliance with securities and banking
regulations
B. Donating money to fund the performing arts
C. Creating a committee to review policies concerning selection of new hires and
promotion of employees
D. Consulting the legal department regarding the requirements of a particular law

_____ are hired for short periods of time and provide greater flexibility, earn lower wages, and
often do not participate in benefits programs.
A. Temporary workers
B. Regulatory agencies
C. Interest groups
D. Strategic allies
E. Suppliers