Name:.......................................................................................ID:..............................
Quiz 3
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1. Planning involves defining the organization’s goals, establishing an overall strategy for achieving
those goals, and developing a comprehensive set of plans _____________.
a. as to which shift will perform what work functions
b. to determine which manager will be in charge of which department
c. for organizational work activities
d. to establish the quality and quantity of work to be accomplished
2. In informal planning, __________ sharing of goals with others in the organization.
a. everything may be written down, but there is little or no
b. everything is written down, and there is
c. nothing is written down, and there is little or no
d. nothing is written down; therefore management does a lot of
3. In the first step of strategic management, identifying the current strategies and goals provides
___________.
a. a basis to determine if the goals need to be changed
b. an understanding of what the competition is doing
c. an idea of what trends and changes are occurring
d. important information about an organization’s specific resources and capabilities
4. When an organization is analyzing its labor supply, it is studying its ________________.
a. organizational culture
b. internal environment
c. external environment
d. organizational structure
5. ___________ and ___________ are outcomes from a study of the external environment.
a. Threats; weaknesses
b. Strengths; weaknesses
c. Weights; measures
d. Opportunities; threats
6. The merging of the analyses of internal and external factors influencing the organization’s strategy
is known as ____________.
a. complete studies
b. organizational behavior and theory
c. definitional analysis
d. SWOT analysis
7. Growth through _______________ is achieved when an organization chooses to grow by increasing
its own business operations.
a. concentration
b. horizontal integration
c. vertical integration
d. related diversification
8. When an organization attempts to combine with other organizations in different, but associated
industries, the strategy is known as a _____________ strategy.
a. growth
b. horizontal integration
c. vertical integration
d. related diversification
9. A stability strategy is particularly appropriate when ____________.
a. the firm is facing rapid growth opportunities
b. the industry is in a state of rapid upheaval
c. an organization is not meeting its goals
d. an organization’s performance is declining
10. In the BCG matrix, a ________ does not consume or produce much cash and holds little or no
improved performance.
a. cash cow
b. star
c. Dog
d. question mark
11. For a small organization in only one line of business, the competitive strategy simply describes
______________
a. how the company will compete in its main market
b. what products or services it will offer
c. the customers it wants to reach
d. its competitive advantage
Scenario:El Taco Grande
As the original owner of Taco Rocket, you have seen your business holdings grow substantially over
the last ten years. The number of stores you own and franchise has grown by 200 percent and you own
a number of companies in related and unrelated areas.
12. You purchased Shanghai Grill and Zorro Distributors after being in business for five years. What
level of strategy integrates the strategies of your various business units?
a. corporate level
b. business level
c. functional level
d. strategic level
13. You called the Boston Consulting Group (BCG), and they have provided you with some advice
based on their famous corporate portfolio matrix. Your oldest holding, Taco Rocket, has not grown
much in recent years, but due to low debt, it generates a huge amount of cash. According to BCG,
Taco Rocket would be considered a ____________.
a. cash cow
b. star
c. question mark
d. dog
14. Recently, you also purchased a company that manufactures a new satellite dish, allowing you to
enter into the cable television market. The business is profitable and growing, but the technological
unknowns make it risky. BGC considers it a ___________.
a. cash cow
b. star
c. question mark
d. dog
15. Another purchase you made was to acquire a local coffee-cart chain with 30 locations around
the city. You don’t see it growing very much, but then, it doesn’t cost much to operate. BCG
would label this venture a _____________.
a. cash cow
b. star
c. question mark
d. dog
16. Practically any successful consumer product or service can be identified as an example of the
________________.
a. differentiation strategy
b. focus strategy
c. breadth strategy
d. cost leadership strategy
17. What generic competitive strategy involves a cost advantage or a differentiation advantage in a
narrow segment or niche?
a. differentiation
b. focus
c. breadth
d. cost leadership
18. Organizational design is based on decisions about ____________.
a. work specialization and mechanisms
b. chain of command and span of control.
c. centralization and matrices
d. strategy and structure
19.______________ refers to the rights inherent to a position that allows a manager to tell
subordinates what to do and expect them to do it.
a.Responsibility
b.Unity of command
c.Chain of command
d.Authority
20. Which one of Fayol’s 14 principles of management helps preserve the concept of a continuous line
of authority?
a.unity of demand
b.unity of command
c.demand structure
d. continuous demand
21. In recent years, there has been a movement to make organizations more flexible and responsive
through _____________.
a.centralization
b.decentralization
c.alternative organizational structure
d.customer-based structure
22. A(n) ____________ organization is rigidly controlled and efficient.
a.organic
b.horizontal
c.Learning
d.Mechanistic
23. A(n) ____________ organization is able to change rapidly as needs require.
a.Organic
b.horizontal
c.vertical
d.mechanistic
24.What factor influences the amount of centralization an organization uses?
a. Decisions are significant.
b. The company is geographically dispersed
c. The organization is facing the risk of company failure.
d. The environment is complex.
25.What is a strength of a simple structure?
a. Employees are grouped with others who have similar tasks.
b. It focuses on results.
c. It is inexpensive to maintain.
d. There are cost-saving advantages from specialization.
General Hospital (Scenario)
Michelle is a registered nurse in charge of a new unit at her hospital. She would like to have a more
laidback approach in dealing with her new staff, but the hospital demands that there be strict
hierarchical levels and that all decisions must be signed off by Michelle. Sometimes this drives
Michelle nuts—the constant filling out of forms, and so forth. She also feels that the numerous levels
of hierarchy are unnecessary and place barriers between herself and her staff. She isn’t sure why things
have to be so “organized” and is thinking about speaking with her boss to attempt changing her unit to have
more flexibility and fewer rules.
26.Michelle is very concerned about the formal framework by which job tasks within her nursing
unit are divided, grouped, and coordinated within her unit. This framework is known as the unit’s
______________.
a. formal organizational chart
b. organizational structure
c. staff
d. span of control
27.Michelle’s unit specializes in cardiology cases. Dividing work units up in such a manner is
most representative of _____________ departmentalization.
a. functional
b. product
c. process
d. customer
28. Michelle was asked to represent her cardiac unit as part of a Total Quality Management (TQM)
initiative that is aimed at improving the overall quality of care at the hospital. Other departments,
such as Cardiology and ER, also have representatives on this team. The TQM team exemplifies
________________.
a. project management
b. a cross-functional team
c. process integration
d. customer departmentalization
29. Michelle has noticed that everyone is very concerned about the line of authority within the
organization. The line of authority within the organization is also called a(n) ______________.
a. responsibility
b. chain of command
c. span of control
d. organizational strategy
30. Michelle is required to sign off on all decisions, suggesting the hospital has what kind of
decision-making authority?
a. centralized
b. formal
c. autocratic
d. strict