Deck 6: Managing for Business Success

Question 1

The mission statement describes the purpose of your organization-the reason for its existence.

Answer 1

True

Question 2

When late McDonald's CEO Jim Cantalupo explained his goal to revitalize the company by increasing sales in existing restaurants, his objective was to assess the company's place in its business environment.

Answer 2

True

Question 3

The management function of planning entails allocating resources (people, equipment and money) to carry out the company's plans.

Answer 3

False

Question 4

When performing the management _____ function, managers measure the results of operations and compare them with the results they had laid out in their original goals.

A) directing
B) organizing
C) analyzing
D) controlling

Question 5

Core values are the fundamental beliefs about what's important and what is and isn't appropriate in conducting company activities.

Question 6

Which of the following is not one of the four primary functions of management?

A) organizing
B) budgeting
C) planning
D) directing

Question 7

In setting strategic goals and performance objectives, Joan Rivers of DayMark Solutions would begin by drawing up a detailed list of what she wanted to achieve.

Question 8

Generating an idea and establishing an overall course of action for the long term is known as strategic planning.

Question 9

Although a _____ allows managers to take the business concept beyond the idea stage, it doesn't accomplish the actual work.

A) plan
B) vision
C) mission
D) goal

Question 10

An organization needs ____ because they create more efficiency and effectiveness.

A) owners
B) managers
C) employers
D) team leaders

Question 11

Describe the four functions that managers perform.

Question 12

Operational plans are broken down into various tactical plans that provide detailed action steps to be taken.

Question 13

When a manager motivates employees to achieve organizational goals he or she is engaging in the management function of directing.

Question 14

Wendy's public?relations team responded quickly to counteract the effects of bad publicity when a diner claimed that she'd found a fingertip in a bowl of chili.

Question 15

To control operations, managers measure the results and compare them with the results that were laid out in the original plan.

Question 16

A business plan ensures that a company's work will be done.

Question 17

In developing tactical plans, managers identify those aspects of the business that are most likely to be adversely affected by change.

Question 18

Tim is the manager of a shoe manufacturing company that staffs 100 workers. The company receives an emergency bulk order for 3,000 pairs of shoes to be delivered in 3 days. Tim encourages the workers to finish the assignment on time by providing them an extra day off and overtime wages. Which of the following management functions does Tim perform to motivate the employees to complete the order on time?

A) directing
B) organizing
C) analyzing
D) controlling

Question 19

Peggy McLaughlin runs an ice cream shop. She is determining how many employees should work next week and at what times. She is performing which management function?

A) organizing
B) directing
C) controlling
D) planning

Question 20

A SWOT analysis defines what an organization stands for.

Question 21

A SWOT analysis begins by examining _____ factors that could influence a company in either a positive or negative way.

A) competitive
B) functional
C) internal
D) external

Question 22

Assessing a company's strengths, weaknesses, opportunities, and threats usually takes place during the process of _____ planning.

A) tactical
B) contingency
C) operational
D) strategic

Question 23

Coca?Cola's stated _____, which promote leadership, collaboration, integrity, accountability, passion, diversity and quality, tell employees exactly what behaviors are acceptable.

A) ethics objectives
B) core plans
C) core values
D) ethics goals

Question 24

The best time for management to practice crisis management is when a crisis occurs in their company.

Question 25

Core values describe the purpose of your organization and the reason for its existence.

Question 26

Mary Kay Inc.'s _____ states that the organization is committed "To enrich the lives of women around the world."

A) vision statement
B) mission statement
C) core values statement
D) competencies analysis

Question 27

Step one in planning a business, usually called _____, is the process of establishing an overall course of action.

A) strategic planning
B) operational planning
C) contingency planning
D) tactical planning

Question 28

The statement "The company forecasts sales of $20,000 and profit of $2,000 for the first 12 months of operations" is best characterized as a _____.

A) functional goal
B) matrix objective
C) company objective
D) quantifiable goal

Question 29

_____ are shorter-term performance targets that direct the activities of an organization.

A) Goals
B) Objectives
C) Tactical plans
D) Operational plans

Question 30

_____ are major accomplishments that a company plans to achieve over a long period of time, generally five years.

A) Objectives
B) Goals
C) Tactical plans
D) Operational plans

Question 31

A common approach to environmental analysis, called _____ analysis, entails matching a company's strengths with its available opportunities.

A) SWOT
B) SNOOP
C) GATT
D) SOWHAT

Question 32

The traditional planning process begins at the _____ level of an organization.

A) motivational
B) grass?roots
C) top
D) operational

Question 33

The reality of _____ was a major theme when late McDonald's CEO Jim Cantalupo stated his goal of revitalizing the company.

A) shrinking profit
B) expansion
C) change
D) competition

Question 34

Improving the customer-satisfaction score on dependability is best characterized as a(n) _____ goal.

A) strategic
B) tactical
C) managerial
D) executive

Question 35

Objectives are major accomplishments that the company wants to achieve over a long period of time.

Question 36

The _____ of Contemporary Marketing's business plan affirms what the organization is generally committed to doing.

A) mission statement
B) customer profile
C) SWOT analysis
D) values and core beliefs statement

Question 37

Dorothy Gibson and her team are currently working on _____ plans that specify her firm's activities and the allocation of its resources.

A) executive
B) managerial
C) tactical
D) operational

Question 38

_____ planning means identifying those aspects of a business that are most likely to be adversely affected by change.

A) Contingency
B) Tactical
C) Opportunity
D) Seat?of?the?pants

Question 39

The company's _____ team led Wendy's response when a diner claimed to have found a fingertip in her chili.

A) complaint?management
B) crisis?management
C) contingency?planning
D) strategic?planning

Question 40

Long-range planning that establishes an overall course of action for a company is generally called _____.

A) contingency
B) tactical
C) strategic
D) crisis

Question 41

An organization chart is a diagram or visual representation delineating the interrelationships of positions within an organization.

Question 42

Each department _____ its work.

A) outsources
B) organizes
C) audits
D) advertises

Question 43

Explain the concept of SWOT analysis.

Question 44

Managers engage in the organizing function when they allocate resources to carry out a company's plans.

Question 45

What is a mission statement?

Question 46

Explain contingency planning.

Question 47

When they compare results with original goals, St. Claire department heads are engaged in the function of _____.

A) planning
B) organizing
C) controlling
D) leading

Question 48

All department heads are involved in _____.

A) planning
B) purchasing
C) research and development
D) strategic planning

Question 49

In developing a flexible style of management for keeping employees motivated on a regular basis, St. Claire department heads are engaged in the function of _____.

A) planning
B) organizing
C) directing
D) controlling

Question 50

Middle managers, who direct all of the major activities that must be performed if the company is to fulfill its mission, are responsible for an organization's general health and performance.

Question 51

SWOT analysis is a common approach used to:

A) develop a strategic plan.
B) plan for contingencies.
C) assess a company's fit with its environment.
D) identify the core values that will define the organization.

Question 52

Identify the steps in the strategic planning process.

Question 53

As a first-line manager Joe Smith might also hold the title of foreman or supervisor.

Question 54

To educate new employees, orientation trainers at Valparaiso Communications use an organization chart in which horizontal connecting lines show the firm's chain of demand.

Question 55

Under its matrix structure, Nike creates product teams made up of designers, marketers, and other specialists to design new products.

Question 56

When a manager delegates work to subordinates, he denies them the opportunity to learn new skills.

Question 57

Which of the following is a step in the contingency planning process?

A) Set up teams trained to deal with emergencies.
B) Set performance targets to direct all company activities.
C) Develop alternative courses of action in case an anticipated change does occur.
D) Assess the company's strengths and weaknesses.

Question 58

A company usually has a product division structure when it must move goods through several production steps.

Question 59

Some companies prefer a customer division structure because it allows them to perform operations and customer service more efficiently.

Question 60

There's no evidence that St. Claire department heads are involved in _____.

A) leading
B) controlling
C) planning
D) strategic planning

Question 61

There are more people at the middle level of the organization than at the bottom level.

Question 62

The process of organizing activities into clusters of related tasks that can be handled by certain individuals is called specialization.

Question 63

The patterns of formal communication among an organization's members are called its _____.

A) reporting relationships
B) division relationships
C) functional relationships
D) command network

Question 64

A _____ organization groups together people who have comparable skills and perform similar tasks.

A) functional
B) serviceable
C) purposeful
D) divisional

Question 65

_____ is the process of altering existing organizational structures to make a firm more competitive under changing conditions.

A) Organizing
B) Specializing
C) Diversifying
D) Restructuring

Question 66

First-line managers report to top management and oversee the activities of middle managers.

Question 67

In designing an organizational structure, management uses departmentalization to group specialized jobs into meaningful units.

Question 68

As a rule, _____ set overall performance targets for all levels of management.

A) the CEO and CFO
B) operational vice presidents
C) top managers
D) boards of directors

Question 69

A departmentalized organization groups together people who have comparable skills and perform similar tasks.

Question 70

COO stands for Chief Organization Officer.

Question 71

Newly established Lyons Supermarkets, which shows only a few layers of management on its organization chart, has a _____ organizational structure.

A) deep
B) narrow
C) flat
D) tall

Question 72

If you adopted a functional approach to departmentalization, which of the following types of jobs could you group into clusters?

A) Human resources
B) Operations
C) Accounting
D) All of these

Question 73

Hans Goering, who manages the allocation of his company's resources to achieve its plans, is involved in the _____ process.

A) restructuring
B) organizing
C) specializing
D) planning

Question 74

The vertical connecting lines in the organization chart show the firm's span of control.

Question 75

An organizational structure is considered wide if communications must filter upward through two or more management layers.

Question 76

_____ oversee the activities of first-line managers.

A) Top managers
B) Supervisors
C) Human resource managers
D) Middle managers

Question 77

Showing who reports to whom, an organization's _____ describes the authority relationships among people working at different levels.

A) chain of communication
B) organization chart
C) power structure
D) chain of command

Question 78

More involved in day-to-day operations than in planning, _____ supervise employees and coordinate their activities to ensure consistent companywide work.

A) first-line managers
B) middle managers
C) team leaders
D) quality circle captains

Question 79

If a firm relies on united order relationships, its organization chart will show that salespeople report problems to sales supervisors.

Question 80

Strategic planning is often delegated to combined teams of top, middle, and first-line managers.