Question 1

Denzi, a logistics company, recently launched an online application. To help set up the application's unique selling point, researchers at Denzi assessed the marketing strategy of another popular online application. This is an example of _____.

Accepted Answer

Benchmarking involves comparing the practices and processes of one company with those of another company in the same industry to improve performance. In this scenario, Denzi is assessing the marketing strategy of another online application to gauge its effectiveness and potentially improve their own marketing strategy.

Question 2

When the control process is described as cybernetic, it means that:

Accepted Answer

The term "cybernetic" refers to a system of control that uses feedback to maintain a desired goal or state. In this context, it means that constant attention to the feedback loop is required to keep the company's activity on course.

Question 3

SO Corp. is an electronics company that recently entered the market. It uses the most ideal quality standards and best practices while developing its new product because the market is fairly saturated and only products of the highest quality will be likely to sell. Which of the following processes is being followed by SO Corp. to ensure the success of its product?

Accepted Answer

Benchmarking refers to the process of comparing one's business processes and performance metrics to industry standards and best practices. SO Corp. is using quality standards and best practices to develop its new product, which aligns with the concept of benchmarking. Profiling pertains to creating a portrait of a target audience, organizing refers to arranging resources in a structured manner, and operant conditioning is a psychological concept related to behavior modification. None of these options relate to ensuring the success of a product through quality control measures.

Question 4

Once a company compares its actual performance to performance standards, the next step it should take in the control process is to:

Accepted Answer

After comparing actual performance to performance standards, the next step in the control process is to identify performance deviations. This involves analyzing the differences between the actual performance and the desired or expected performance. Once deviations are identified, the company can take corrective action to bring performance back in line with standards.

Question 5

Travis runs a printing business. He gains some knowledge on his competitor's quality of printers and extracts ideas about pricing and delivery standards for his own business. This is an example of _____.

Accepted Answer

Benchmarking is the process of comparing one's own business processes and performance metrics to industry standards or best practices from other businesses. In this scenario, Travis is gathering information about his competitor's quality, pricing, and delivery standards to determine how his own business can improve and compete more effectively.

Question 6

Cora is planning to open a restaurant. Before proceeding with the plan, she collects data on the operating standards of one her favorite restaurants that inspired her to open her own restaurant. This is an example of _____.

Accepted Answer

Benchmarking is the process of comparing one's own business practices with those of others. In this case, Cora is collecting data on the operating standards of a successful restaurant, which is a form of benchmarking. Delegation refers to assigning tasks to others, suboptimization refers to optimizing a small part of a process without considering the overall impact, and brainstorming refers to generating ideas through group discussion. None of these options describe the situation presented in the question.

Question 7

Shawn is a manager at Jolez Solutions. Whenever employees underperform, he asks them to work overtime for a few days. In this case, Shawn is using _____.

Accepted Answer

The answer of Shawn is a manager at Jolez Solutions....

Question 8

_____ is the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company.

Accepted Answer

Benchmarking is the process of identifying best practices in other companies and adapting them to your own company to improve performance. It involves analyzing processes, systems, and procedures that have proven successful in other organizations and comparing them to your own to identify areas for improvement. By adopting these best practices, companies can improve productivity, quality, and efficiency, and gain a competitive advantage in the marketplace.

Question 9

When setting standards by benchmarking, the first step is to determine _____.

Accepted Answer

The first step in benchmarking is to determine what to benchmark, or in other words, what standards or processes are to be measured against other companies or industry best practices. Once this is determined, then the process of how to benchmark and which companies to compare can be established. But identifying what to compare and measure against is the critical first step.

Question 10

Harrison runs a bicycle manufacturing company. Owing to increasing competition, his company starts losing its customer base. To regain its position in the market, Harrison keenly observes his competitors' business plans and strategies. Subsequently, he incorporates a change in his company's marketing strategy. Eventually, his company starts making profits. This is an example of _____.

Accepted Answer

This scenario describes benchmarking, which is the process of analyzing and comparing a company's processes and performance to those of its competitors or industry leaders. Harrison observed his competitors' business plans and strategies and incorporated changes in his company's marketing strategy to regain its position in the market. This helped his company make profits again. Therefore, the correct choice is C) benchmarking.

Question 11

_____ is defined as a regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary to restore performance to those standards.

Accepted Answer

The definition provided in the question explicitly describes the process of control, which involves monitoring the performance of an organization against established standards and making adjustments or taking corrective action when performance deviates from those standards. Organizing, coordination, and planning are also important functions of management, but they do not encompass the specific actions described in the question.

Question 12

_____ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

Accepted Answer

Standards are criteria used to measure how well an organization is achieving its objectives. These can be internal or external, and they provide a clear basis for determining whether performance is satisfactory or unsatisfactory. Options B, C, and D are not relevant to measuring organizational performance.

Question 13

Which of the following statements is true of a standard?

Accepted Answer

A standard should be reviewed and revised if necessary to ensure that it is helping the company achieve its goals. It is not necessary for a company's standard to be the same as its competitors' and benchmarking is not the only way to determine a standard. A standard should align with employees' actual performance to be effective.

Question 14

_____ is a mechanism for gathering information about performance deficiencies after they occur.

Accepted Answer

Feedback control is the mechanism that provides performance information after the task or activity is completed. It helps to identify the causes of performance deficiencies and provides recommendations for improvement. Feedforward control is a mechanism that provides performance information before the activity or task is started to ensure that it is started correctly. Concurrent control is the mechanism that provides performance information during the activity or task to identify issues and ensure that it is progressing as planned. Adaptive control is a mechanism that adjusts to changes in the environment to ensure that the goal is achieved.

Question 15

Jose is a school teacher. If his students score less than 50 percent on their class tests, he assigns them extra homework. Jose is using _____.

Accepted Answer

Jose is using feedback control because he is taking corrective action (assigning extra homework) after evaluating the students' performance on their tests.

Question 16

Credit card issuers have lost billions from stolen credit card numbers hacked via the credit card swipe machines used in retail stores. As a result, they have _____.

Accepted Answer

Credit card issuers have introduced new, more secure pin and chip swipe machines to prevent security breaches and fraud resulting from stolen credit card numbers. Adding fingerprint scanning to the existing swipe machines or regulating the credit card issuing process based on family size and income would not effectively address the issue of credit card fraud. Stopping payment for fraudulent claims from online retailers would not address the root cause of stolen credit card numbers.

Question 17

Baked Delights is a startup bakery. To set up its own business standards, it recently collected data on the quality and pricing of the products of Sweet Tooth, the largest and most popular bakery in the region. This is an example of _____.

Accepted Answer

This is an example of benchmarking, as Baked Delights gathered information on Sweet Tooth to establish a benchmark of quality and pricing for their own products.

Question 18

The final step in setting standards by benchmarking is to _____.

Accepted Answer

The final step in setting standards by benchmarking is to collect data to determine other companies' performance standards. This data will then be used to set the standards for the company's own performance. Options A, B, and D are steps that are done earlier in the benchmarking process. Functional departmentalization is not necessarily related to benchmarking. Identifying companies and determining effects are steps that come before collecting data.

Question 19

Greyson runs a sales company. He sets the goals of his business based on that of his previous company where he was employed for five years. This is an example of _____.

Accepted Answer

This is an example of benchmarking, where Greyson is using his previous company's achievements as a reference point to set goals for his own business. Delegation refers to the process of assigning tasks to others, suboptimization is the act of optimizing one aspect of a business at the expense of others, and brainstorming is a technique for generating creative ideas.

Question 20

Which of the following statements is true of control?

Accepted Answer

Preventive measures are indeed a form of control as they are designed to prevent deviations from standards before they occur.

Quiz 16: Control