1
Question Quiz 1
1 out of 1 points
Managers who train and supervise the performance of nonmanagerial employees and who
are directly responsible for producing the company's products or services are categorized as:
Answer
Selected Answer:
first-line
managers
Correct Answer:
first-line
managers
Response Feedback:
This is the
fundamental
description of firstline managers.
Question 2
0 out of 1 points
Amazon.com
From the start, Amazon.com has been in a hurry to be a success. According to company
founder and chief executive officer (CEO) Jeff Bezos, Our initial strategy was very focused
and very unidimensional. It was GBF: Get big fast. We put that on our shirts at the company
picnic.
With billions to spend from its initial stock offering (Amazons stock quickly rose to over
$100 per share), Amazon spent $400 million to build eight high-tech warehouses across the
country. Why spend that much for warehouses? In theory, each was capable of shipping 60
million items per year, and Amazon needed to control the entire buying transaction, beginning
with online ordering, proceeding to quick warehouse handling and boxing, and ending with
timely shipping and delivery. And, believing that their growth would parallel its own, Amazon
then spent $350 million to buy large shares of two Internet retailers, Kozmo.com and
Pets.com. Kozmo.com promised the ability to deliver thousands of items from gourmet foods
to CDs and movies to customers homes in 11 major cities within one hour after an order was
placed. Pets.com was supposed to grow because Americans spend over $30 billion a year on
their pets, but the pet industry was still comprised largely of small family-owned stores and
was not yet dominated by a big box retailer like Home Depot.
Unfortunately, Amazon grew so fast that it soon lost control of the basics. Despite the
billions it had raised, Amazon burned money so quickly that it had to issue bonds to raise
another $2.2 billion to keep the company running. Still, it had only enough business and cash
to run six of those new warehouses. Consequently, the company took a $400 million loss to
close two of the warehouses and lay off 1,500 people. Furthermore, the six remaining
warehouses were poorly run. Defective products which should have been returned to
manufacturers sat on the shelves wasting space. Mystery orders, like a truckload of
unordered kitchen knives, kept showing up. Instead of declining the deliveries, workers put
whole truckloads of unordered items on the shelves. Amazons frustrated chief of operations
said, We kept it allwe just kept it. We put it on the shelf and said, I dont know. In fact,
Amazon had so much unsold inventory in its warehouses that CEO Bezos sent out an email
with a point-blank message, Get the crap out. Finally, Amazons $350 million investment in
Kozmo.com and Pets.com evaporated when both filed for bankruptcy.
Amazons problem was not its sales, which were growing exponentially, but poor
management. As a result, its stock, once valued at over $100 per share, dropped to a low of
$6. As for profits, founder Bezos cautioned patience, saying, Look at USA Today; it took 11
years to become profitable. However, Amazon has lost over $3 billion since its inception.
Although the company has finally earned its first profits, that profit amounted to only $5 million
on $1.12 billion in sales in its fourth quarter (October to December), and Amazon still lost $45
million for the year. Furthermore, it still has long-term debt of $2.2 billion to pay off at the rate
of $120 million per year. Results like these would have cost any other CEO his or her job. If
Amazon is ultimately to survive and be profitable, what does it need to do to become a more
efficiently run company?
Refer to Amazon.com. As CEO of Amazon, Jeff Bezos:
Answer
Selected
Answer:
coordinates
and links
groups,
departments,
and divisions
within a
company
Correct
Answer:
is
responsible for
developing
employees'
commitment to
the company's
performance
Response
Feedback:
Developing
employee
commitment to
the companys
performance is
a fundamental
responsibility of
top
management.
Question 3
1 out of 1 points
In Great Britain, Nestl introduced a candy bar called Yorkie with the slogan "It's not for girls!"
The resulting furor over this sexist campaign required its British managers to spend a great
deal of time in the role of:
Answer
Selected Answer:
disturbance
handlers
Correct Answer:
disturbance
handlers
Response
Feedback:
The disturbance
handler role is
played when
managers must
respond to
severe
problems that
demand
immediate
attention.
Question 4
1 out of 1 points
Eastman Kodak owns a company that manufactures dental radiation equipment. The
company, which is run as an independent unit, has experienced excessive financial losses the
last three years. The ____ for the company would be expected to develop the long-term plans
needed to make the company profitable.
Answer
Selected Answer:
top manager
Correct Answer:
top manager
Response
Feedback:
Top managers are
responsible for the
overall direction of
the organization.
Question 5
1 out of 1 points
Which of the following is an example of an interpersonal role?
Answer
Selected Answer:
figurehead
Correct Answer:
figurehead
Response Feedback:
The other
interpersonal roles
are leader and
liaison.
Question 6
0 out of 1 points
A manager striving to improve organizational ____ is accomplishing tasks that help fulfill
organizational objectives.
Answer
Selected Answer:
functionality
Correct Answer:
effectiveness
Response
Feedback:
Effectiveness is
accomplishing
tasks that help fulfill
organizational
objectives.
Question 7
1 out of 1 points
Conceptual skills are most important for lower-level managers.
Answer
Selected Answer:
False
Correct Answer:
False
Response
Feedback:
Technical skills are
most important for
lower-level
managers and
team leaders.
Question 8
1 out of 1 points
An accountant with ____ has the ability to create a budget, compare the budget to the actual
income statement, and determine unnecessary expenses.
Answer
Selected Answer:
technical skill
Correct Answer:
technical skill
Response
Feedback:
Technical skills
involve the
ability to apply
the specialized
procedures,
techniques, and
knowledge
required to get
the job done.
Question 9
1 out of 1 points
In the decisional role of ____, managers adapt themselves, their subordinates, and their units
to incremental change.
Answer
Selected Answer:
entrepreneur
Correct Answer:
entrepreneur
Response
Feedback:
Managers are
acting in their
entrepreneurial
role when they
adapt
themselves,
their
subordinates,
and their units
to incremental
change.
Question 10
1 out of 1 points
Interstate Bakeries, the makers of Wonder bread, declared bankruptcy in 2003. The
companys objectives in 2004 were to increase its revenues by at least 5 percent and reduce
its net losses by at least 80 percent. Which management function was used to set these goals
and will help the company meet them?
Answer
Selected Answer:
planning
Correct Answer:
planning
Quiz 2
Question 1
1 out of 1 points
The purpose of the Maine Organic Farmers and Gardeners Association (MOFGA) is to
promote the production of safe, high quality food in a manner that does not harm the
environment and that preserves or improves soil fertility, soil structure, and farm sustainability.
This is the organizations vision, and it ____.
Answer
Selected
Answer:
guides the
decisions and
behaviors of
the people who
are members
of the
organization
Correct
Answer:
guides the
decisions and
behaviors of
the people who
are members
of the
organization
Response
Feedback:
A company
vision is
defined as its
purpose or
reason for
existing. The
vision should
serve as a
longer-term
guide and is
therefore not
changed
quarterly. The
other items
are red
herrings.
Question 2
1 out of 1 points
Resource scarcity is the degree to which an organization's external environment has an
abundance or lack of critical organizational resources.
Answer
Selected Answer:
True
Correct Answer:
True
Question 3
1 out of 1 points
Typically the most important factor in the relationship between companies and their suppliers
is ____.
Answer
Selected Answer:
how
dependent they
are on each
other
Correct Answer:
how
dependent they
are on each
other
Response
Feedback:
A high degree of
buyer or seller
dependence
can lead to
opportunistic
behavior by one
party at the
expense of the
other.
Question 4
1 out of 1 points
The ____ consists of the economy and the technological, sociocultural, and political/legal
trends that indirectly affect all organizations.
Answer
Selected Answer:
general
environment
Correct Answer:
general
environment
Response Feedback:
This is the definition
of general
environment.
Question 5
1 out of 1 points
Because external environments can be dynamic, confusing, and complex, managers use a
three-step process to make sense of the changes in their external environments. Those steps
are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on
threats and opportunities.
Answer
Selected Answer:
True
Correct Answer:
True
Question 6
1 out of 1 points
In order to change an organizational culture, top management can persuade other managers
and employees to perform a new behavior in place of an older one. This technique is called
____.
Answer
Selected Answer:
behavioral
substitution
Correct Answer:
behavioral
substitution
Response
Feedback:
Behavioral
substitution is
the process
of having
managers
and
employees
perform new
behaviors
central to the
new
organizationa
l culture in
place of
those
behaviors
that were
central to the
old
organizationa
l culture.
Question 7
1 out of 1 points
When using ____ to change organizational culture, the key to success is to choose behaviors
that are central to and symbolic of the old culture you're changing and the new culture you
want to create.
Answer
Selected Answer:
behavioral
substitution and
behavioral
addition
Correct Answer:
behavioral
substitution and
behavioral
addition
Response
Feedback:
Behavioral
substitution is
replacing old
behaviors with
new behaviors
in support of
the change
effort.
Behavioral
addition is
adding new
behaviors that
support the
change.
Question 8
1 out of 1 points
Dofasco
Dofasco, Inc. is a different kind of steel company. Tiny by industry standards, the Canadianbased company has just 8,500 employees and a market cap of $2.3 billion. Dofasco operates
with a close eye on the triple bottom line. In addition to tracking financial metrics, Dofasco
also monitors its impact on society and the environment. As a result, the company has
outperformed many of its biggest competitors. Despite a recent slump in the automobile
industry, which accounted for 50 percent of its business, Dofasco ran at 100 percent capacity
and finished as one the of only integrated steelmakers in all of North America to make a profit
one year. Dofasco is also one of the only companies in the steel industry without a union, and
its employees like it that way. Employee turnover at the companys main operation is less
than one percent annually. Part of its low turnover rate is due to the companys concern about
protecting its external environment. As the CEO of the company said, One way to get happy
employees is not to wreck their community in which they live.
Refer to Dofasco. The fact Ford that purchased less steel from Dofasco during the auto
industrys slump would be part of Dofascos ____ environment because Ford Motor Company
is one of its customers.
Answer
Selected Answer:
specific
Correct Answer:
specific
Response
Feedback:
This change in
customer
behavior would
represent a
change in
Dofascos
specific
environment,
as it exerts
industryspecific impact
on Dofasco.
Question 9
1 out of 1 points
One of the difficulties encountered in recent mergers has been the inability of employees in
the two existing organizational cultures to operate harmoniously. In other words, merging
organizational cultures often lack the ____ that would increase the likelihood of a merger's
success.
Answer
Selected Answer:
adaptability
Correct Answer:
adaptability
Response
Feedback:
Adaptability is
the ability to
notice and
respond to
changes in the
environment.
Merging
changes the
internal
environment of
the merged
organizations.
Question 10
0 out of 1 points
Which of the following is a component of the specific environment that would directly influence
a restaurant's day-to-day operation?
Answer
Selected Answer:
all of these
Correct Answer:
its regular
customers
Response Feedback
Quiz 3
Question 1
1 out of 1 points
Which of the following statements about the Strategic Reference Point Theory is true?
Answer
Selected
Answer:
None of
these
statements
about the
Strategic
Reference Point
Theory is true.
Correct Answer:
None of
these
statements
about the
Strategic
Reference Point
Theory is true.
Response
Feedback:
A strategic
reference
point is
defined as
the strategic
targets that
managers
use to
measure
whether a
firm has
developed
the core
competencie
s it needs to
achieve a
sustainable
competitive
advantage.
None of
these
statements
are accurate
regarding
strategic
reference
points.
Question 2
1 out of 1 points
Sales of Arm & Hammer baking soda had flattened when its manufacturer started promoting
innovative uses for its product. By searching for new market opportunities, the manufacturer
of Arm & Hammer is using which type of adaptive strategy?
Answer
Selected Answer:
prospecting
Correct Answer:
prospecting
Response
Feedback:
Prospectors
follow an
adaptive
strategy of
seeking fast
growth by
searching for
new market
opportunities,
encouraging
risk taking,
and being first
to bring
innovative
new products
to market.
Question 3
1 out of 1 points
The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run
the band as a businessthe Rolling Stones, Inc. Since 1989 (the beginning of the modern
age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues.
That total includes sales of records, song rights, merchandising, sponsorship money, and
touring. Unlike some other groups, the Stones carry no antibusiness baggage. The Rolling
Stones, Inc. operates on a combustible mix of talent and intense laborthe product of four
decades of trial and error. The company licenses over 50 products from underwear to
formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a
single tour. Over the past decade, the groups song writing has made about $56 million. The
next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized
corporation. The goal of the corporation is to continue providing products that differ from its
competitors offerings so that fans will continue to pay a premium price for what it sells.
Refer to The Rolling Stones. In recent years, what kind of a grand strategy does Rolling
Stones, Inc. use?
Answer
Selected Answer:
stability
Correct Answer:
stability
Response
Feedback:
The Rolling
Stones are
continuing to
do what they
do...only
better. This
approach is
most
characteristic of
the stability
strategy.
Question 4
1 out of 1 points
When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products,
acquired Kingsford Charcoal and Prime Choice brand steak sauce, it was an example of
____.
Answer
Selected Answer:
external
growth
Correct Answer:
external
growth
Response Feedback:
Clorox is growing
through acquisition
of other companies.
Question 5
1 out of 1 points
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in
1980. Since then, the company has maintained a technological leadership in the production of
bike and bike accessories and an organizational culture that encourages innovation. This
technological leadership as well as its organizational culture are the companys ____.
Answer
Selected Answer:
core
capabilities
Correct Answer:
core
capabilities
Response
Feedback:
Core
capabilities
are defined as
the internal
decisionmaking
routines,
problemsolving
processes,
and
organizational
cultures that
determine
how efficiently
inputs can be
turned into
outputs.
Question 6
1 out of 1 points
Differentiation is the positioning strategy of producing a product or service of acceptable
quality at consistently lower production costs than competitors can so that the firm can offer
the product or service at the lowest price in the industry.
Answer
Selected Answer:
False
Correct Answer:
False
Response
Feedback:
This is the
definition of
cost
leadership.
Differentiatio
n is the
positioning
strategy of
providing a
product or
service that
is sufficiently
different from
competitors'
offerings
such that
customers
are willing to
pay a
premium
price for it.
Question 7
0 out of 1 points
Deutsche Bank became the worlds largest bank through mergers with Bankers Trust, a
transatlantic banking operation. Since both banking companies had similar core capabilities,
this would be classified as an example of ____.
Answer
Selected Answer:
an integrated
acquisition
Correct Answer:
related
diversification
Question 8
0 out of 1 points
Companies can achieve growth by ____.
Answer
Selected
Answer:
doing all of
these
Correct Answer:
growing
internally
through direct
expansion or
creating new
businesses
Response
Feedback:
The two major
avenues to
growth are: (1)
external growth
through
mergers and
acquisitions; or
(2) internal
growth of
existing
business(es).
Question 9
1 out of 1 points
There are four conditions that must be met if a firm's resources are to be used to achieve a
sustainable competitive advantage. The resources must be valuable, rare, imperfectly
imitable, and nonsubstitutable.
Answer
Selected Answer:
True
Correct Answer:
True
Question 10
1 out of 1 points
A focus strategy entails using either a cost leadership or a differentiation approach to
producing a good or service.
Answer
Selected Answer:
True
Correct
Quiz 4
Question 1
1 out of 1 points
Global business ____.
Answer
Selected
Answer:
is the
buying and
selling of goods
and services to
people from
different
countries
Correct Answer:
is the
buying and
selling of goods
and services to
people from
different
countries
Response Feedback:
This is the definition
of global business.
Question 2
1 out of 1 points
In a multinational firm, managers at company headquarters typically prefer an emphasis on
____ because it simplifies decisions.
Answer
Selected Answer:
global
consistency
Correct Answer:
global
consistency
Question 3
1 out of 1 points
It appears that all companies follow the phase model of globalization when entering foreign
markets.
Answer
Selected Answer:
False
Correct Answer:
False
Response
Feedback:
Evidence suggests
that some
companies do not
follow the phase
model of
globalization.
Question 4
1 out of 1 points
The signing of the ____ created a regional trading zone.
Answer
Selected Answer:
Maastricht
Treaty
Correct Answer:
Maastricht
Treaty
Response
Feedback:
The Maastricht
Treaty established
the European Union
(EU) trading zone.
Question 5
1 out of 1 points
The ____ strategy of minimizing or adapting to the political risk inherent to global business
makes use of joint ventures and collaborative contracts.
Answer
Selected Answer:
cooperative
Correct Answer:
cooperative
Response Feedback:
This is the definition
of the cooperation
strategy.
Question 6
1 out of 1 points
The Japanese government has proclaimed that its snow is different from that found in any
other region of the world. As a result, all snow skis marketed in Japan must be manufactured
in Japan. This is an example of a(n) ____.
Answer
Selected Answer:
nontariff
barrier
Correct Answer:
nontariff
barrier
Response
Feedback:
Nontariff barriers
are defined as
nontax methods
of increasing the
cost or reducing
the volume of
imported goods.
Question 7
1 out of 1 points
The people who live on the island of Malta are described as happy-go-lucky people who are
comfortable with an unstructured life and deal well with sudden changes. In terms of
Hofstedes cultural differences, the people of Malta have a ____.
Answer
Selected Answer:
low degree
of uncertainty
avoidance
Correct Answer:
low degree
of uncertainty
avoidance
Response
Feedback:
Uncertainty
avoidance is
defined as
the degree to
which people
in a country
are
uncomfortabl
e with
unstructured,
ambiguous,
unpredictabl
e situations.
Here the
Maltese are
described in
a manner
consistent
with a low
degree of
this cultural
dimension.
Question 8
1 out of 1 points
Ernst & Young, an international accounting and management consulting company, entered
Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the
company with which it had the alliance. Ernst & Young then had a(n) ____ in Hungary.
Answer
Selected Answer:
wholly
owned affiliate
Correct Answer:
wholly
owned affiliate
Response
Feedback:
A wholly owned
affiliate is
defined as
foreign offices,
facilities, and
manufacturing
plants that are
owned by the
parent
company.
Question 9
1 out of 1 points
____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and
protect companies or special industries.
Answer
Selected Answer:
Government
subsidies
Correct Answer:
Government
subsidies
Response Feedback:
This is the definition
of a government
subsidy.
Question 10
1 out of 1 points
Historically, most companies have used the ____ to successfully enter foreign markets.
Answer
Selected Answer:
phase model
of globalization
Correct Answer:
phase model
of globalization
Response Feedback