Module 3: Test Your Knowledge
True/False Questions
1.
Managers typically face ill-structured problems that have no previously proven
answers.
2.
Bill Simmons is the manager of a small restaurant and must decide how much
money he owes his suppliers. This is an example of a non-programmed decision.
3.
The risk involved with decision-making can never be accurately predicted.
4.
In the fourth stage of decision-making, problem diagnosis is linked to the
development of alternatives.
5.
Total and consistent agreement among group members helps avoid groupthink.
6.
Incremental decision-making occurs when people don't know how to achieve a
goal or solve a problem.
7.
The garbage can model of decision-making arises when people disagree on goals
or compete with one another for resources.
8.
The six steps in the formal planning process are comparable to the six decisionmaking steps.
9.
Situational Analysis, as part of the Formal Planning Process, focuses on internal
forces at work within the organization and examines influences from the external
environment.
10.
The final step in the formal planning process, monitor and control, is often
overemphasized.
11.
An organization's strategic and tactical plans must be based upon the original
operational plans.
12.
An organization's mission statement is long-term oriented while a strategic vision
is short-term oriented.
13.
An internal analysis provides an inventory of an organization's resources, skills,
and potential competitive threats.
14.
If resources are difficult to imitate they provide a source of competitive
advantage.
15.
SWOT analysis refers to the situation, weaknesses, options, and technology.
16.
A concentration strategy involves expanding the domain of the organization into
supply channels and to distributors.
17.
Businesses using a low-cost strategy attempt to be efficient and offer a standard,
no-frills product.
Multiple Choice Questions
18.
Tell All Industries has experienced financial losses for the past six quarters. The
Board of Directors has decided that the organization will be reengineered. The
decisions that must be made to accomplish this successfully can be classified as
A) programmed (in structure).
B) in a condition of uncertainty.
C) low in risk.
D) all of the above.
E) none of the above.
19.
Marilyn Onn recently faced a decision that required computation of financing
which she had only limited experience with. She was able to determine an option
that was within her department's budget, but she could not be sure that her
decision was the most efficient or effective. By selecting the option that was
acceptable, she was
A) minimizing.
B) optimizing.
C) satisficing.
D) incompetent as a manager.
E) putting off the decision.
20.
To maximize is to
A) realize the largest possible financial benefit.
B) involve as many people affected by the decision as possible in its design.
C) make the best possible decision.
D) utilize groupthink as individual decisions.
E) generate many alternatives for evaluation.
21.
Implementation issues consist of
A) allocate resources.
B) organize for results.
C) how to implement strategies.
D) lead and motivate people.
E) all of the above.
22.
Psychological bias in decision-making refers to
A) the effect that a person's psychological capabilities have upon the decisions
they must make under pressure.
B) what happens when a decision maker must balance the preferences of many
interested parties, diluting effectiveness.
C) the conflict that results from too many people involved with making a
decision.
D) the inability to be objective when obtaining and using information for
decision making allowing irrationality to interfere.
E) the fact that people are motivated by a need for power which clouds their
decision making capabilities.
23.
The way in which the alternatives to a decision are stated or phrased may have an
impact on which alternative is chosen. Varying alternatives can be presented in a
more favorable or less favorable way, affecting the decision. This is referred to as
A) framing effects.
B) phrasing effects.
C) fraud effects.
D) flamboyancy effect.
E) fracture effects.
24.
Discounting the future refers to
A) valuing long-term benefits at the cost of short-term benefits.
B) underestimating the long-term effects.
C) underestimating the short-term effects.
D) valuing short-term benefits at the cost of long-term benefits.
E) none of the above.
25.
The basic philosophy behind group decision making is that "two heads are better
than one." But does this statement hold true?
A) Yes, always
B) Yes, potentially
C) No, two does not constitute a group
D) No, never
E) Sadly, an answer for this cannot be determined
26.
Amy left the meeting, frustrated as usual. The group really needed to make some
decisions regarding next year's marketing campaign. Jeff rammed all his ideas
through, which were good but nobody else dared to speak up or contribute. The
group experienced
A) groupthink.
B) domination.
C) satisficing.
D) all of the above.
E) none of the above.
27.
Conflict in group decision making is considered to be
A) destructive.
B) constructive.
C) creative.
D) conflict may be any of the above.
E) conflict is b and c, but not a.
28.
The dialectic method requires that
A) people present contrary arguments in order to force investigation of the
alternative under consideration.
B) a debate between two conflicting courses of action be held.
C) conflict generated within the group be minimized.
D) conflict generated within the group be maximized.
E) the leader perform the role of peacekeeper.
29.
In order to be creative, a brainstorming session must
A) be free of criticism.
B) be held in private.
C) be done professionally.
D) be done face-to-face.
E) involve industry experts.
30.
Which of the following is NOT an effective aspect of planning?
A) Planning should be purposeful.
B) Planning should provide a "map" with a single, clearly defined path to attain
goal(s).
C) Planning should involve all employees' expertise.
D) Planning should outline goals and activities that an organization will pursue in
the future.
E) Planning should be utilized by firms of every size.
31.
Bill Thomas, human resource manager at Amarillys, Inc., has the task of
translating organizational goals into specific plans for his subordinates within the
human resources department. This task is called
A) strategic planning.
B) situational analysis.
C) tactical planning.
D) SWOT analysis.
E) operational planning.
32.
The level of planning involving the longest time frames and the largest portion of
an organization is
A) operational planning.
B) missionary planning.
C) tactical planning.
D) departmental planning.
E) strategic planning.
33.
Typical strategic goals might include
A) production scheduling, training of personnel, accounting procedures, updating
equipment used.
B) profit levels, share value, growth, return on investment, societal impact.
C) advertising expenditures, sales levels, product use innovations, customer
feedback levels.
D) absenteeism levels, benefit usage and value, human resource utilization,
compliance with civil rights laws.
E) a and b, but not c and d.
34.
A set of skills or expertise that company utilizes better than the competition is
referred to as
A) strategic advantage alliances.
B) better business benefits.
C) core competencies.
D) dated benchmarks.
E) none of the above.
35.
In order to reduce production costs, Shaffer Tire Company decided to buy out a
rubber plant and begin manufacturing their own rubber for their tires. This
strategy is an example of
A) concentration.
B) vertical integration.
C) concentric diversification.
D) conglomerate diversification.
E) differentiation.
36.
Although Beyers Beverage Company had focused only on alcohol products for
the past two decades, the company is now considering entering the soft drink
arena as well. Such a strategy would illustrate
A) vertical integration.
B) concentric diversification.
C) conglomerate diversification.
D) concentration.
E) differentiation.
37.
McDonald's would appear to be following which type of corporate strategy?
A) Conglomerate strategy
B) Market focus strategy
C) Concentric diversification
D) Concentration strategy
E) Vertical strategy
38.
When a company attempts to establish itself as uniquely able to offer a product or
service, it is using ______________ strategy.
A) differentiation
B) diversification
C) dimensional issue
D) demand/supply
E) dimensional studies
39.
Functional Strategies refer to
A) those utilized by specific functional areas of a business to support the strategy
chosen by that business.
B) those utilized by top management in developing the corporate structure and
resource allocation.
C) those strategies voted on by the Board of Directors.
D) those strategies that function as corporate benchmarks for evaluating
corporate performance.
E) none of the above.
40.
If Disney added Wal-Mart type department stores to its entertainment businesses,
it would describe which type of corporate strategy?
A) Concentration strategy
B) Conglomerate diversification
C) Vertical integration
D) Concentric diversification
E) None of the above
Module 3: Test Your Knowledge
Answer Sheet
True/False:
Multiple Choice:
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Module 3: Test Your Knowledge
True/False Questions
1.
True Page 71
2.
False
Page 71
3.
False
Page 71-72
4.
False
Page 73
5.
False
Page 83
6.
True
Page 87
7.
False
Page 87
8.
True
Page 112
9.
True
Page 112
10.
False
Page 115
11.
False
Page 115
12.
False
Page 119
13.
False
Page 122
14.
True
Page 123
15.
False
Page 124
16.
False Page 125
17.
False
Page 129
Multiple Choice Questions
18.
B Page 72
19.
C
Page 76
20.
C
Page 75
21.
E
Page 77
22.
D
Page 79
23.
A
Page 79
24.
D
Page 79
25.
B Page 81
26.
D
Page 83
27.
D
Page 84
28.
B Page 84
29.
A
Page 85
30.
B Page 112
31.
C
Page 115
32.
E
Page 115
33.
B Page 115
34.
C
Page 124
35.
B Page 125
36.
B Page 125
37.
D
Page 125
38.
A Page 127
39.
A
Page 127
40.
B Page 125