Question 1

Managerial decision making is typically a linear, rational, and well informed process.

Accepted Answer

Managerial decision making involves dealing with complex and dynamic situations that may not always follow a linear and rational process. Decisions may also be influenced by biases, emotions and incomplete information.

Question 2

Developing a mental model allows managers the freedom to make decisions in a neutral vacuum, free of the economic, and cultural and social environments in which they live and work.

Accepted Answer

Developing a mental model does not mean operating in a neutral vacuum as it is influenced by the economic, cultural and social environments in which managers live and work. Mental models are subjective and shaped by an individual's experiences and perceptions. However, developing a mental model can allow managers to clarify and organize their thoughts, leading to better decision-making.

Question 3

Assumptions and understandings, but not beliefs, comprise the prinicpal elements of mental models.

Accepted Answer

Mental models are comprised of beliefs, assumptions, and understandings, not just assumptions and understandings. They represent how individuals perceive the world and guide their actions and decision-making processes.

Question 4

Mental models are inherently unobservable.

Accepted Answer

Mental models are cognitive frameworks or representations of the world that individuals use to understand and navigate their environment. These models are internal and subjective and cannot be directly observed by others.

Question 5

Categorical knowledge is the knowledge individuals use to distinguish between and among categories of people, objects, and other phenomena.

Accepted Answer

Categorical knowledge is indeed the knowledge used by individuals to differentiate between and among categories of people, objects, and other phenomena.

Question 6

The well known proverb, "Early to bed and early to rise makes a person healthy, wealthy, and wise," is an example of categorical knowledge.

Accepted Answer

This proverb is an example of folk wisdom or an aphorism, not categorical knowledge. Categorical knowledge involves the organization of information into categories or groups based on shared characteristics, rather than proverbial advice on lifestyle habits.

Question 7

Managers of business firms have causal beliefs about a wide array of phenomena.

Accepted Answer

Managers of business firms develop beliefs about various causal relationships within their organization, such as the effect of employee satisfaction on productivity, or the impact of marketing efforts on sales. These beliefs can guide their decision-making and actions.

Question 8

The quality of decision making is significantly influenced by the accuracy and completeness of mental models.

Accepted Answer

Mental models are representations of how we understand the world around us, and they play a crucial role in decision making. If the mental model is inaccurate or incomplete, it can lead to flawed decision making. Therefore, the quality of decision making is significantly influenced by the accuracy and completeness of mental models.

Question 9

Because mental models already contain our attitudes, beliefs, and understandings, they have little influence over our responses to the stimuli we notice.

Accepted Answer

Mental models greatly influence our responses to the stimuli we notice, as they shape our attitudes, beliefs, and understanding of the world around us.

Question 10

When business leaders hold beliefs-mental models-about their industry that differ fundamentally from most other leaders, the result will be different mental models that result in unique strategies.

Accepted Answer

This statement is true. Different mental models held by business leaders can result in unique strategies as their beliefs and perspectives influence their decision-making processes.

Question 11

Experience as a belief component of mental models is the product of learning-by-doing or trial-and-error learning.

Accepted Answer

Experience is gained through direct involvement and learning from mistakes, which is characterized by trial and error.

Question 12

Culture is a minor source of mental models as it carries with it only a few implicit beliefs and understandings.

Accepted Answer

Culture plays a major role in shaping our mental models as it provides us with a set of implicit beliefs, values, and understandings that influence how we perceive and interpret the world around us. These cultural mental models can vary widely across different societies and may impact everything from our attitudes towards work and family to our beliefs about health and wellness.

Question 13

A strength of imitation strategies that are based on or copied from other firms is that they are more distinctive than innovative strategies.

Accepted Answer

This statement is false. Innovative strategies are more likely to be distinctive than imitation strategies that rely on copying from other firms. Innovative strategies involve creating new products or services, developing unique processes or systems, or finding new ways to reach customers, which can set a firm apart from its competitors. Imitation strategies, on the other hand, involve copying what other firms have done, which may result in a less distinctive offering.

Question 14

Researchers consider something creative if it is both novel and inappropriate.

Accepted Answer

Researchers consider something creative if it is both novel and appropriate. Inappropriateness may actually decrease the creativity of an idea.

Question 15

One key characteristic common to all mental models is their completeness.

Accepted Answer

Mental models are simplified representations of reality, and they are not always complete. They may exclude or oversimplify certain factors or variables in order to make understanding or decision-making easier.

Question 16

Cognitive biases foster rational thinking.

Accepted Answer

Cognitive biases are unconscious or automatic patterns of thought that can lead to errors in judgment and decision-making. While they may be useful in certain situations, they generally do not foster rational thinking. In order to think rationally, it is important to recognize and overcome our biases.

Question 17

Superstition can also be a source of bias and lead to poor decision making.

Accepted Answer

Superstitions are often not based on logic or evidence and can influence individuals to make decisions based on unfounded beliefs rather than rational thinking. This can result in poor decision making and negative consequences.

Question 18

Mental models tend to be used over and over again even as the environment changes, so that they become more and more accurate or appropriate over time.

Accepted Answer

Mental models are often based on past experiences and assumptions, and if not updated, they may become less accurate or appropriate as the environment changes, leading to outdated or ineffective decision-making.

Question 19

What problems can arise when mental models are not updated to keep them aligned with the pace of change in the business environment?

Accepted Answer

The answer of What problems can arise when mental models...

Quiz 3: Managers and the Strategic Decision Making in Business Firms