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The measure of how well (or how productively) an organization uses its resources to achieve a goal is known as:


Burger King developed a fat-fryer machine that reduced the amount of oil used to fry burgers by 30 percent over its current competitors. This is an example of an attempt to improve the organization's:

cross-departmental responsibilities

When we say that the top managers of an organization are responsible for the performance of all the departments, this is another way of saying that they have:


TeleTop Corporation is planning to eliminate a few redundant departments and reduce levels in the organizational hierarchy to lower operating costs. This is an example of:

It can be used for activities such as manufacturing, marketing, and customer service

Which of the following statements is true regarding outsourcing?


involves giving employees more authority and responsibility over the way they perform their work activities

Organizational Culture

What organizational structure defines and is defined by the founder, management, and employees?

Internal Locus of control, open to experience, extroverted

Which is a desirable set of personality traits for a manager?


Organizational culture affects many thing, but it does not affect the way the basic managerial functions (planning, organizing, leading, and controlling) are performed. (True or False)


All of the following are major managerial functions EXCEPT:

Boeing should have copied the manufacturing strategies of its arch-rival, Airbus

The 2003 Boeing article discussed in class, which virtually predicted the Dreamliner's manufacturing problems Boeing experienced, criticized Boeing's Dreamliner outsourcing. Which was not a criticism?

Speed, Accuracy, Flexibility, Consistency, and Simplicity

Operational elements critical to customer value were discussed in class. The five attributes that customers value are:

Barriers to entry

Factors that make it difficult and costly for an organization to enter a particular task environment or industry are called:

Companies are hopeful for great returns in a larger market

What makes companies want to globalize into large, uncertain environments (such as China or India)?

Individual freedom and self-expression

Individualism values:

Inequalities in the power and well-being of citizens

Power distance considers:

Russia and the U.S. are diametrically opposed; Russia has high Power Distance and low Individualism

Which is true about Individualism and Power Distance?

Recognize the need for a decision, generate alternatives, assess alternatives, choose among alternatives, implement the chosen alternative, learn from feedback

Which is the correct order for the steps in the decision making process?

Doing nothing differently

One of the alternatives for decisions in almost all situations should be:

The Situation, Criteria, Effect, Cause, and Recommendation

To aid decision making, one process discussed in class had the following steps for presentations to the decision makers:

Scale relates to efficiencies of size and scope relates to effectiveness of a one-stop-shop

Which is true about economies of scale and scope?


Which is a group of entrepreneurs who are deliberately separated from a company's normal operations to enable them to develop new products or services?

A group problem-solving technique managers use to meet face-to-face to make a decision

Which of the following describes brainstorming?

Power, Personality, Persuasion

What are the Three P's of leading?

Executives, Managers, Employees,

What are the levels in an organization? (start from the top)

Profit and success

Components of Culture consist of all (Founder's values, Ceremonies and rites, Stories and language, Socialization) EXCEPT:

Quid pro quo

When a manager asks a subordinate for sexual favors in return for a promotion, what type of sexual harassment has occurred?

Hostile work environment

A female subordinate is offended by posters in her supervisor's office that are degrading to women. She avoids going into the office, even when she has a work-related question. Her supervisor has exhibited:


The stakeholder group often regarded as the most important is:

Will anyone find out I made the decision?

Under the practical rule, answering "yes" to all of the following questions would make the decision ethical EXCEPT?


A person's confidence and faith in another person's goodwill is called:

Suppliers bargaining position

Barriers to Entry (Economies of scale, Brand loyalty, Government regulations) include all EXCEPT:

All of the above

In order to take advantage of national differences in the cost of quality of resources, companies usually outsource:

A. Labor and raw materials
B. Information Technology
C. Telephone customer support
D. All of the above

The supply is vital to the organization

A supplier's bargaining position is especially strong when:

higher; smaller; lower

In general, the _____ the barriers to entry into an industry, the _____ the number of competitors in that industry and the _____
the threat of competition within that industry.

Brand loyalty

The preference of a customer for the products of a particular organization is known as:


A tax that a government imposes on goods imported into the country is known as a:


What do Programmed Decisions rely on?


According to Henri Fayol, effective plans should have the following qualities, EXCEPT:
A. Unity
B. Consistency
C. Accuracy
D. Continuity
E. Flexibility

Strengths, Weaknesses, Opportunities, Threats

What does SWOT stand for?

Strengths and Weaknesses; Opportunities and Threats

Of the SWOT Elements, which are considered internal and which are considered external?
Internal =
External =


The Five Forces model examines an industry's to
determine how much profit companies in that industry can
expect to make?
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
E. None of the above

Opportunity for diversification

Which is NOT one of the Michael Porter's Five Forces of Competition?
A. Level of Rivalry among organizations in an industry
B. Power of large suppliers
C. Power of large customers
D. Opportunity for diversification
E. Threat of substitute products
F. Potential for entry into an industry

All of the above

As discussed in class, a mission statement (or marketing purpose statement):
A. Affects the decisions of the business.
B. Affects all of the critical business success factors.
C. Affects all employees.
D. All of the above.

Geographic Structure

When a company expands from a local company to a national company it may want to change to which divisional structure?

Hybrid Structure

Which Structure would most likely be used for a large organization with many divisions that simultaneously uses many different structures?

Functional Structure

The units of XYZ Corporation are grouped together such that the functions that work together to produce a product are grouped
together. Which of the following best explains this structure?

Product structure

In XYZ Company, each product line is managed within a division. In each of these divisions, the division manager is responsible for creating the business-level strategy for the product line. What type of structure is the organization using?

Market structure

Which of the following structure allows managers to be responsive to the needs of their customers and allows them to act flexibly in making decisions in response to customers' changing needs?

Matrix structure

If you were in an organization with a ____________, it is very possible that you could report to more than one manager.

Span of control

The number of subordinates who report directly to a manager is known as what aspect of that manager's responsibility?


The manager of Human Resources of a company is a(n) _____ manager.

Cross-functional team

Which of the following is a committee of people from different departments with the purpose of increasing coordination among the different departments?

Strategic alliance

ABC Company creates a series of agreements with suppliers, manufacturers, and distributors to produce and market a product. Which of the following structure best describes this strategy?

Compare actual performance to the standards

At which step of the control process do managers evaluate whether the actual performance of the organization differs significantly from the standards of performance being used to assess the performance of the organization?

Output control

Management by objectives is a mechanism of control for which of the following?

Reward success

The four control process steps consist of all EXCEPT:
A. Set goals
B. Measure performance
C. Evaluate the result
D. Reward success

Activity ratio

Inventory turnover is an example of a(n):

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