Question 1

To be effective, goals should have certain qualities, which can be recalled through the use of the acronym SMART. List and describe each of these qualities.

Accepted Answer

Goals are the targets or ends a manager ...

Question 2

________ is one of the six stages of formal decision making.

Accepted Answer

A)   Thriving on the risks of taking a decision
B)   Minimizing the consequences of a decision
C)   Anticipating the outcome of a decision
D)   Evaluating the decision
E)   Controlling the damage caused by a wrong decision

Question 3

When making a choice, ________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.

Accepted Answer

A)   benchmarking
B)   maximizing
C)   forecasting
D)   satisficing
E)   optimizing

Question 4

The most effective strategy that can be adopted by strategy managers is one that

Accepted Answer

A)   cannot be described in detail.
B)   competitors are unable to imitate.
C)   is based on the principle of rigidity.
D)   cannot be deconstructed.
E)   can be purchased at a reasonable cost.

Question 5

Leona is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Leona is most likely searching for a(n)  ________ solution to her problem.

Accepted Answer

A)   experimental
B)   optimal
C)   ready-made
D)   statistical
E)   custom-made

Question 6

The senior managers of Acme Steel knew that a successful implementation of their business plan in the coming year was critical to the company's survival in a competitive industry. Acme could not afford for different parts of the organization to "stray" from the plan; in fact, each organizational unit needed to perform in sync with the goals of the unit above it and the units below it. Thus, it was critical that the individual plans of the corporation, each division, each department, and each section be

Accepted Answer

A)   aligned.
B)   independent.
C)   mutually non-exclusive.
D)   diverse.
E)   provisional.

Question 7

New CEO Tony Sparks told his executive team, "Every two years, on a rolling basis, we will develop a new plan that will address our high-level mission, objectives, and approaches to conduct business for the next five years. The plan will guide decision making that is consistent with our long-term goals and strategies." The five-year plan is an example of a ________ plan.

Accepted Answer

A)   strategic
B)   single-use
C)   standing
D)   contingency
E)   SWOT

Question 8

"Karen, we must jump into this new business area now, or we will fall behind," argued Steven. "Let's price our product well below our competitors' prices, even if we don't make money at first. We will figure out how to make money later." Steven is displaying

Accepted Answer

A)   illusion of control.
B)   framing effects.
C)   discounting the future.
D)   bargaining.
E)   benchmarking.

Question 9

Carl wanted the advantage that comes with the collective wisdom of a management team participating in a decision. Carl's division had to decide if solar panel, wind turbine blade, or battery power research would be its next major investment. He brought together his managers in a meeting; however, Shinichi, used his strength of character and oratory skills to push for solar panel research. Unfortunately, the other managers were quiet, and Shinichi managed to overpower them with his views. Given the dynamics of the meeting and its outcome, ________ had prevented Carl's meeting from achieving what he had hoped it would.

Accepted Answer

A)   groupthink
B)   satisficing
C)   domination
D)   devil's advocacy
E)   goal displacement

Question 10

The outcome of a situational analysis is the

Accepted Answer

A)   evaluation of the merits and feasibility of a range of alternatives.
B)   prioritization and elimination of goals.
C)   identification and diagnosis of planning assumptions, issues, and problems.
D)   selection of the most appropriate and feasible alternative among various goals.
E)   proper implementation of a plan.

Question 11

________ is a psychological bias that applies to students who do not spend sufficient time studying.

Accepted Answer

A)   Illusion of control
B)   Farming effects
C)   Discounting the future
D)   Time pressures
E)   Social realities

Question 12

When a problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships, a ________ decision may be taken.

Accepted Answer

A)   qualitative
B)   programmed
C)   non-economic
D)   risky
E)   nonprogrammed

Question 13

Managers who use the method of optimizing to make their decisions will attempt to choose

Accepted Answer

A)   the first minimally acceptable alternative.
B)   from those alternatives that have known results.
C)   the least expensive alternative.
D)   the alternative that produces the least conflict.
E)   an alternative that achieves the best possible balance among several goals.

Question 14

Don Jefferson, owner of Don's Fine Foods, a family-owned grocery store, said to his management team following their SWOT analysis, "We're in trouble. We have been the leading grocer in this geographical area, but Mega Box Store Groceries is opening a superstore a mile away. Our refrigeration system is 15 years old and needs replacing. Our store manager and produce manager are retiring this year. And our employee benefits package is not competitive." A threat to Don's Fine Foods, per the SWOT analysis, is that

Accepted Answer

A)   they have been the leading grocer in their geographical area.
B)   Mega Box Store Groceries is opening a superstore nearby.
C)   their refrigeration system is old and needs replacement.
D)   key personnel are retiring.
E)   their employee benefits package is not competitive.

Question 15

The step in the formal planning process known as ________ involves studying past events, examining current conditions, and forecasting future trends.

Accepted Answer

A)   analyzing the situation
B)   generating alternative goals and plans
C)   evaluating goals and plans
D)   selecting goals and plans
E)   monitoring and controlling performance

Question 16

Explain the advantages and disadvantages of using a group to make decisions.

Accepted Answer

Things can go wrong when groups make dec...

Question 17

The psychological bias known as illusion of control refers to a

Accepted Answer

A)   decision bias influenced by the way in which a problem or decision alternative is phrased or presented.
B)   belief that one can influence events even when one has no influence over what will happen.
C)   bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.
D)   condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.
E)   phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.

Question 18

All managers throughout an organization may be involved in

Accepted Answer

A)   developing the strategic plan elements.
B)   personally formulating the plan.
C)   making decisions that shape strategies.
D)   contributing minimal elements.
E)   implementing the plan.

Question 19

At Susan's retirement party, she reflected upon her long career in starting up successful companies. She said, "I salute my long-time mentor, Milton, who counseled me early in my career about risk. He told me, 'Susan, when you are confronted with risk when making management decisions, you should

Accepted Answer

A)   avoid it by any means necessary.'"
B)   eliminate it with a thorough understanding of the consequences of each option.'"
C)   anticipate it, minimize it, and control it.'"
D)   understand there is no way to manage it.'"
E)   not proceed without a liability insurance policy.'"

Question 20

Describe low-cost and differentiation strategies, and how a business can achieve competitive advantage with either of them.

Accepted Answer

Businesses using a low-cost strategy try...

Exam 5: Planning and Decision Making

The step in the formal planning process known as ________ involves studying past events, examining current conditions, and forecasting future trends.

Correct Answer
verified

Correct Answer
verified

When making a choice, ________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.

Correct Answer
verified

________ is one of the six stages of formal decision making.

Correct Answer
verified

All managers throughout an organization may be involved in

Correct Answer
verified

Correct Answer
verified

At Susan's retirement party, she reflected upon her long career in starting up successful companies. She said, "I salute my long-time mentor, Milton, who counseled me early in my career about risk. He told me, 'Susan, when you are confronted with risk when making management decisions, you should

Correct Answer
verified

________ is a psychological bias that applies to students who do not spend sufficient time studying.

Correct Answer
verified

Managers who use the method of optimizing to make their decisions will attempt to choose

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Describe low-cost and differentiation strategies, and how a business can achieve competitive advantage with either of them.

Correct Answer
verified
Businesses using a low-cost strategy try...
View Answer

When a problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships, a ________ decision may be taken.

Correct Answer
verified

The outcome of a situational analysis is the

Correct Answer
verified

"Karen, we must jump into this new business area now, or we will fall behind," argued Steven. "Let's price our product well below our competitors' prices, even if we don't make money at first. We will figure out how to make money later." Steven is displaying

Correct Answer
verified

Correct Answer
verified

The psychological bias known as illusion of control refers to a

Correct Answer
verified

The most effective strategy that can be adopted by strategy managers is one that

Correct Answer
verified

Explain the advantages and disadvantages of using a group to make decisions.

Correct Answer
verified
Things can go wrong when groups make dec...
View Answer

To be effective, goals should have certain qualities, which can be recalled through the use of the acronym SMART. List and describe each of these qualities.

Correct Answer
verified
Goals are the targets or ends a manager ...
View Answer

Exam 5: Planning and Decision Making

The step in the formal planning process known as ________ involves studying past events, examining current conditions, and forecasting future trends.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When making a choice, ________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.

Correct AnswerverifiedShow Answer

________ is one of the six stages of formal decision making.

Correct AnswerverifiedShow Answer

All managers throughout an organization may be involved in

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

At Susan's retirement party, she reflected upon her long career in starting up successful companies. She said, "I salute my long-time mentor, Milton, who counseled me early in my career about risk. He told me, 'Susan, when you are confronted with risk when making management decisions, you should

Correct AnswerverifiedShow Answer

________ is a psychological bias that applies to students who do not spend sufficient time studying.

Correct AnswerverifiedShow Answer

Managers who use the method of optimizing to make their decisions will attempt to choose

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe low-cost and differentiation strategies, and how a business can achieve competitive advantage with either of them.

Correct AnswerverifiedBusinesses using a low-cost strategy try...View AnswerShow Answer

When a problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships, a ________ decision may be taken.

Correct AnswerverifiedShow Answer

The outcome of a situational analysis is the

Correct AnswerverifiedShow Answer

"Karen, we must jump into this new business area now, or we will fall behind," argued Steven. "Let's price our product well below our competitors' prices, even if we don't make money at first. We will figure out how to make money later." Steven is displaying

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The psychological bias known as illusion of control refers to a

Correct AnswerverifiedShow Answer

The most effective strategy that can be adopted by strategy managers is one that

Correct AnswerverifiedShow Answer

Explain the advantages and disadvantages of using a group to make decisions.

Correct AnswerverifiedThings can go wrong when groups make dec...View AnswerShow Answer

To be effective, goals should have certain qualities, which can be recalled through the use of the acronym SMART. List and describe each of these qualities.

Correct AnswerverifiedGoals are the targets or ends a manager ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Businesses using a low-cost strategy try...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Things can go wrong when groups make dec...
View Answer

Correct Answer
verified
Goals are the targets or ends a manager ...
View Answer