Question 1

The Ball Leadership Team gets together monthly to discuss who we are, what we are doing, and where we are going.

Accepted Answer

The statement describes a typical activity of a leadership team, which often meets regularly (such as monthly) to discuss organizational identity, current activities, and future directions.

Question 2

The Ball Corporation recently decided to engage in systematic strategy of conglomerate diversification.

Accepted Answer

Ball Corporation announced in 2023 that it would sell its aerospace business to focus on its core packaging operations, which is not a move towards conglomerate diversification.

Question 3

Problem-solving underlies most managerial competencies.

Accepted Answer

False

Question 4

The conditions under which individuals in an organization make decisions are influenced by developments and events that they can't control but that may in the future influence the results of their decisions.

Accepted Answer

This statement reflects the concept of external factors or environmental uncertainty in decision-making, where individuals or organizations must consider external events and developments beyond their control that could impact the outcomes of their decisions.

Question 5

Tim Bayyouk, an employee of Halliburton, is making decisions under a condition of being fully informed, as well as having alternative solutions the results of which are totally predictable. He is operating under the condition of certainty.

Accepted Answer

Operating under a condition of certainty means that the decision-maker is fully informed about all the aspects of a decision, including the alternatives and their outcomes, which is described in the scenario.

Question 6

Decision making under the condition of certainty is the exception for most managers.

Accepted Answer

Most managerial decisions are made under conditions of uncertainty or risk because managers often do not have perfect information or cannot predict future outcomes with certainty.

Question 7

Risk generally means that the problem and the alternative solutions fall somewhere between the extremes of being unknown and ambiguous.

Accepted Answer

Risk generally refers to situations where the probabilities of different outcomes are known, whereas ambiguity involves uncertainty about these probabilities.

Question 8

Lauren De La Cruz is determining the type, amount, and reliability of information that influences the level of risk. She should look at whether she can use objective or subjective probability in estimating the outcome.

Accepted Answer

Lauren De La Cruz is engaging in risk assessment, where determining the type, amount, and reliability of information is crucial for estimating the level of risk. Deciding between objective (based on historical data or statistical analysis) and subjective (based on personal judgment or expert opinion) probability is a key part of this process to estimate outcomes accurately.

Question 9

Dealing with uncertainty is an important facet of the jobs of many managers and other professionals, including market researchers and strategic planners.

Accepted Answer

Dealing with uncertainty is crucial for managers, market researchers, and strategic planners as they often have to make decisions and plan strategies based on incomplete or unpredictable information about future market trends, consumer behavior, and other variables.

Question 10

Shoes for Crews has elected the market niche of selling shoes exclusively to airline employees.

Accepted Answer

Shoes for Crews does not exclusively sell shoes to airline employees; they specialize in slip-resistant footwear for various industries, including food service, healthcare, and more.

Question 11

Shoes for Crews promoted its product by promising managers that if a worker slipped while wearing their shoes, Shoes for Crews would help them pay the claim.

Accepted Answer

Shoes for Crews did promote their products with a promise to help pay for slip-and-fall accident claims if a worker slipped while wearing their shoes, as part of their unique selling proposition to emphasize the safety and reliability of their footwear.

Question 12

The considerations of certainty, risk, and uncertainty provide an underpinning to the basic types of decisions-routine, adaptive, and innovative.

Accepted Answer

These considerations are fundamental in distinguishing between routine (decisions made in predictable situations), adaptive (decisions made in situations that require a response to changes in the environment), and innovative decisions (decisions made in unpredictable situations, requiring new solutions).

Question 13

Decisions may be classified as routine, innovative, and adaptive.

Accepted Answer

Decisions can indeed be classified into these three categories: routine decisions involve standard approaches to solving recurring problems, innovative decisions require new, creative solutions for unique or unusual problems, and adaptive decisions involve adjustments or modifications to existing ways of doing things in response to changing circumstances.

Question 14

The bank teller with an out-of-balance cash drawer at the end of the day faces a unique and ill-defined problem.

Accepted Answer

The answer of The bank teller with an out-of-balance cash...

Question 15

Alternative solutions range from the known and well defined to the untried and ambiguous.

Accepted Answer

Alternative solutions can vary widely, encompassing both established methods and innovative, untested approaches.

Question 16

Routine decisions are the standard choices made in response to relatively well-defined and common problems and alternative solutions.

Accepted Answer

Routine decisions are indeed standard choices made in response to well-defined, common problems, where the decision-maker has clear alternatives and established processes to follow.

Question 17

Continuous improvement requires commitment toward occasional improvements year after year.

Accepted Answer

Continuous improvement involves an ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.

Question 18

Dunkin' Donuts executives continue to discuss dropping the word "donut" from its sign to convey that its menu is now broader.

Accepted Answer

Dunkin' Donuts officially changed its name to Dunkin' in January 2019 to reflect its broader menu that includes a wide range of beverages, sandwiches, and other food items, not just donuts.

Question 19

The changes at Dunkin' Donuts can be best characterized as making a series of innovative decisions.

Accepted Answer

The answer of The changes at Dunkin' Donuts can be...

Question 20

Innovative decisions are based on the discovery, identification, and diagnosis of unusual and ambiguous problems and/or the development of unique or creative alternative solutions.

Accepted Answer

Innovative decisions involve recognizing and understanding complex, often unclear problems, and generating novel or creative solutions to address them, distinguishing them from routine decision-making processes.

Quiz 8: Fundamentals of Decision Making