BUSINESS MANAGEMENT 2

Instruction:

Instructions:

1. This is a personal effort quiz. No teamwork or communication with classmates of any kind is
permitted during the exam. Discovery of such communication can directly lead to a failed grade
on the quiz and disciplinary measures by Avalon College.

2. All information is available in the class material.

3. Answer all questions in this document, save your final work using the following filename format:
FirstName_LastName_Quiz1.pdf (yes, please convert to a PDF document). (If not possible, it’s ok
to save as a Word document or Google docs document.)

4. Upload your answers to Omnivox BEFORE the end of exam time. This means that you should aim
to complete your quiz 10 minutes before the end of the exam, so you have enough time to
upload your quiz answers in Omnivox. It is the student’s responsibility to manage this time
correctly.

QUIZ STARTS ON NEXT PAGE

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Quiz 1
Answer all questions here, in this document. Then, save and upload per the instructions, above.

1. When considering standards of business and managerial ethics, commitment to ethical behavior
is considered in which three areas? (1 point)

ANSWER: When considering standards of business and managerial ethics, commitment to

ethical behavior is considered in areas of : employees, the organization, and other economic
agents.

2. As companies focus on their core competencies, one possible solution could be to outsource
some of their operations. What is one pro (positive) and one con (negative) of outsourcing? (2
points)

ANSWER: Outsourcing helps the company to focus on its core competency, however following is
one negative point of outsourcing:
 Risk of Confidentiality : since the company uses outside sources to complete it’s work, they
need to provide them with companies needs and policies to ensure that the product being
produced meets the company’s standard. Hence this might lead to disclosure of private
information related to the company which can be misused.

However, following is one advantage of Outsourcing:

 Access to resources or skills : companies are able to access high level of resources and
talented labours that they do not own. This reduced the overall cost of buying and using
these.

3. Besides Outsourcing, which TWO other ways did we cover in class that include an organization’s
capacity to move forward more efficiently? (1 point)

ANSWER: The two other ways apart from outsourcing are :

Social Media methods and Business Process Management.

4. The new market reality challenges companies with increasing competition, increasing
operational costs, and ever-changing customer demand. From what we covered in class, which
TWO things do companies need to be able to effectively compete? (2 points)

ANSWER: To compete effectively in increasing competition, increasing operational costs, and

ever-changing customer demand companies need :
 Strong market analytics
 Resources to address emerging customer needs and competitive threats.

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 5. When needing to redraw corporate boundaries, a company's mission statement can come into
question when facing new market realities. As we saw in class, which part of the organization
can affect a company's ability to "pivot" quickly to address changing market conditions? (1
point)

ANSWER: The degree of rigidity of a board of directors, key investors and company executives of
the organization can affect a company's ability to "pivot" quickly to address changing market
conditions.

6. In class, we saw 5 other ways that a company can address market shift. Pick one and explain it.
(2 points)

ANSWER: One way in which a company can address market shift is :

Strategic Alliances: The joining together of two or more companies on a temporary basis to
undertake a particular project. Benefits include spreading the risk of the project between the
allied businesses, and the sharing of expertise
Strategic alliances allow partners to scale quickly, build innovative solutions for their customers,
enter new markets, and pool valuable expertise and resources

7. Social responsibility towards stakeholders requires consideration of which 4 areas? (2 points)

ANSWER: Social responsibility towards stakeholders requires consideration of the following

areas:
* environment
* employees
* customers
* investors.

8. Name the four stances a company can take towards social responsibility? Briefly described ONE
of these four (your choice). (2 points)

ANSWER: The four stances a company can take towards social responsibility are as follows:
* obstructionist
* defensive
* accommodative
* proactive

Obstructionist :- The obstructionist stance to corporate social responsibility involves minimum

effort to improve the social and environmental impact of the company within a community. An
obstructive stance blocks out its social responsibilities. It’s more concerned with profits.

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 9. True or False: Globalization is an internal factor (1 point)

ANSWER: False.
Globalization is an external environmental factor.

10. True or False: The need to rapidly pivot due to rapidly changing customer demand is an external
factor (1 point)

ANSWER: True.
As customer demand is uncontrollable and not in the hands of an organization,it can be
considered as an external factor.

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