Deck 4: The Competitive Environment

Question 1

The role of the board of directors in an organizationis to _____.

A) simply hire a competitor firm's employees away from it to gain advantage in the market
B) ensure culturaldiversity in the composition of the organization's top management team to form a unique corporate culture
C) use systematic selection techniques rather than hiring based on intuition
D) manage the set of expectations held by an individual with respect to what he or she will contribute to an organization
E) monitor the actions of the top management teamto ensure that stockholders' interests are protected

Answer 1

E

Question 2

A _____ strategyoccurs when anorganization finds that itscurrent operations are noteffective, and major changesare usually needed torectify the problem.

A) defender
B) focus
C) retrenchment
D) growth
E) differentiation

Answer 2

C

Question 3

In the context of human resource management, companies can establish a competitive advantage by:

A) hiring the right people and training them effectively.
B) implementing a hierarchical management scheme.
C) adopting a universalistic financial strategy.
D) ignoring the external competitive environment and focusing solely on internal management.
E) hiring employees based on intuition.

Answer 3

A

Question 4

Functional strategies help determine what businesses the firm will operate.

Question 5

The U-form, M-form, and H-form are known to be different organizational designs.

Question 6

Anorganization's _____ is its basic reason for existence.

A) function
B) strategy
C) culture
D) purpose
E) mission

Question 7

A cost leadership strategy is one that focuses on increasing costs and charging high prestige prices.

Question 8

Andy Inc., an electronics firm, decides to own and operate several separate businesses in the consumer durables and food processing sectors.Which of the following strategies is being employed by Andy in this scenario?

A) Diversification
B) Differentiation
C) Retrenchment
D) Functional
E) Business

Question 9

A(n) _____ strategy deals with determining what businessesa firm will operate.

A) analyzer
B) corporate
C) functional
D) differentiation
E) cost leadership

Question 10

Unrelated diversification occurs when an organization expand into products that are similar to its current ones.

Question 11

Stability strategy essentially maintains the status quo.

Question 12

An agency problem occurs when there is a conflict between the interests of managers and the interests of shareholders.

Question 13

Sandra is employed in a fast moving consumer goods(FMCG) company.She is responsible for theoverallstrategic operation of the company.In this case, Sandrais likely to be a part of the:

A) focus group.
B) quality circle.
C) top management team.
D) middle management team.
E) lower management team.

Question 14

A prospectorstrategy works well in an environment where there is little change or uncertainty.

Question 15

_____ specifies how an organization intends to manage itself so it can pursue the fulfillment of its purpose.

A) Compensation
B) Staffing
C) An organizational culture
D) A turnaround strategy
E) A mission statement

Question 16

The sole component of human resource strategy formulation is development strategy.

Question 17

The top management team in a company usually includes all the shareholders.

Question 18

Shaun, the regional head of a pharmaceutical company, prepares a presentation on how the firm will compete in the global market with its competitors.Shaun concludes that the firm will operate at its bestin an environment with relatively littleuncertainty and a high degree of stability.Which of the following strategies is being exemplified by the pharmaceutical company in this scenario?

A) Diversification strategy
B) Turnaround strategy
C) Functional strategy
D) Business strategy
E) ​Growth strategy

Question 19

When organizations close operations, shut down factories, terminate employees, and take other actions to scale back current operations, it is referred to as a _____ strategy.

A) growth
B) turnaround
C) functional
D) business
E) diversification

Question 20

The adaptation model assumes that the firm should change its strategies to meet environmental characteristics.

Question 21

Which of the following is NOT a form of organizational design?

A) O-form design
B) Functional design
C) U-form design
D) Conglomerate design
E) M-form design

Question 22

A new, mid-range chain of restaurants groups its personnel into different departments on the basis of individual expertise.This is an example of the _____ design.

A) functional
B) M-form
C) H-form
D) reactor
E) focus

Question 23

Which of the following organizational designs is most likely to be used by smaller or newer organizations?

A) U-form
B) H-form
C) M-form
D) Reactor
E) Prospector

Question 24

A _____ strategy occurs when a company targets a specific segment of the marketplace forits products or services.

A) diversification
B) focus
C) cost leadership
D) retrenchment
E) prospector

Question 25

Which of the following strategic alternatives of the adaptation model is more likely to work best when a business environment situation is highly stable with low uncertainty?

A) The defender strategy
B) Theprospectorstrategy
C) Theanalyzerstrategy
D) Theturnaroundstrategy
E) Thereactorstrategy

Question 26

_____ is the process of dealing with employees who arerepresented by an employee association.

A) Labor relations
B) Downsizing
C) Outsourcing
D) Rightsizing
E) Outlook planning

Question 27

The set of factors that prompt people to behave in certain waysis called _____.

A) motivation
B) stress
C) interpersonal conflict
D) an analyzer
E) a reactor

Question 28

When a fast moving consumer goods company faced bankruptcy, the company decided to encourage its employees by inviting them to contribute their ideas toward organizational development and growth.Further, the organization asked its human resource team to assess the workers' levels of commitment.In this scenario, which of the following human resource management practices is being used by the company?

A) Self-directed work teams
B) Attitude surveys
C) Contingent pay
D) Formal performance appraisals
E) Continuous training

Question 29

An individual's reactions to environmental factors that present excessive demands is called _____.

A) motivation
B) stress
C) interpersonal conflict
D) organizational culture
E) executive succession

Question 30

Straps Inc., a manufacturer of high-end watches that convey status and luxury, follows a differentiation strategy.Therefore, an important goal of its human resource strategy will be more likely to:

A) focus employee training on cost reduction efforts.
B) hire workers who can provide exemplary customer service.
C) keep the size of the workforce small to increase efficiency.
D) rightsize the company using layoffs and terminations.
E) provide minimal compensation and benefits.

Question 31

An organization's _____refers to the set of values thathelps its members understandwhat the organization standsfor, how it accomplishes whatit wants to accomplish, andwhat it considers important.

A) profile
B) plan
C) culture
D) design
E) structure

Question 32

In the past, when human resource management was seen as an organizational expense, evaluations of the effectiveness of a human resource function concentrated solely on _____.

A) worker satisfaction
B) turnover
C) person-job fit
D) absenteeism
E) cost

Question 33

Raibo Electric Inc.owns and operates a number of different businesses ranging from fast moving consumer goods to automobiles.As part of its strategy, it adds a wide variety of products to their already existing product lines.This is primarily an example of a _____ strategy.

A) diversification
B) business
C) functional
D) cost leadership
E) differentiation

Question 34

Adrienne believes that an individual's particular characteristic traitsmay relate to how well theycan perform acertain work.Which of the following does Adrienne considers as a rationale for differences in employee performances in this scenario?

A) Related diversification
B) Organizational culture
C) Personality
D) Mission statement
E) Reactors

Question 35

What is a psychological contract?

A) It refers to the extent to which people perceive they are being treated equitably by their organization.
B) It refers to the overall set of expectationsheld by an individual withrespect to what he or she willcontribute to an organization.
C) It refers to the set of psychological attributes or traits that distinguish one individual from another.
D) It refers to attitudes an individual holds toward the employing organization.
E) It refers to a strategy thatattempts to develop animage or reputation for a company'sproduct or service that setsthe company apart from itscompetitors.

Question 36

Pierre, a human resource manager in a firm, would like to increase the effectiveness of his department.Which of the following is he most likely to do?

A) Seldom have formal performance appraisals because workers are upset by criticism.
B) Carefully control the behavior of teams and avoid letting them make their own decisions.
C) Pay high-performing workers more than inconsistent performers in order to increase motivation.
D) Ask employees to defer from wasting time by going through a lot of training.
E) Use attitude surveys only when there is a noticeable drop in the performance of an employee.

Question 37

Which of the following strategies is pursued by an organization made up of various businesses with similar products or services?

A) Growth
B) Related diversification
C) Differentiation
D) Cost leadership
E) Prospector

Question 38

When an organization uses human resource management practices such as attitude surveys and continuous training, it will most likely lead to _____.

A) a prospector strategy
B) agency problems
C) a flat organization
D) improved firm performance
E) utility analysis

Question 39

In the context of the adaptation model, which of the following strategic alternatives isseen as a strategic failure and is not held upas a model that any firm should emulate?

A) Defender
B) Prospector
C) Analyzer
D) Differentiation
E) Reactor

Question 40

Ross Brands Inc., a multinational corporation, began its operations with three businesses in the frozen food industry.Since its inception, the company has acquired other fast-food companies.Which type of organization design would be most appropriate for Ross Brands' strategy?

A) H-form
B) U-form
C) M-form
D) Reactor
E) Focus

Question 41

Why is an organization's culture an important link to its human resource management?

Question 42

Compare and contrast related and unrelated diversification.

Question 43

Describe the factors that affect human resource strategy formulation.

Question 44

How would an organization conduct an evaluation of its human resource function?

Question 45

Scenario 4.1
T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs.T&Pis in the process of acquiring another company, its major music store rival ReBop Records.Because its rap stars are so famous, T&Pcharges crazed fans a higher price for its music compact discs and DVD videos.The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year.T&Phas a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
Refer to Scenario 4.1.Which organizational form or design is T&Plikely to have adopted?

A) Functional design
B) Conglomeratedesign
C) Divisional design
D) H-form design
E) U-form design

Question 46

Scenario 4.1
T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs.T&Pis in the process of acquiring another company, its major music store rival ReBop Records.Because its rap stars are so famous, T&Pcharges crazed fans a higher price for its music compact discs and DVD videos.The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year.T&Phas a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
Refer to Scenario 4.1.Which competitive strategy does T&P's music and video store chain appear to have adopted?

A) Prospector
B) Growth
C) Stability
D) Cost leadership
E) Differentiation

Question 47

Scenario 4.1
T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs.T&Pis in the process of acquiring another company, its major music store rival ReBop Records.Because its rap stars are so famous, T&Pcharges crazed fans a higher price for its music compact discs and DVD videos.The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year.T&Phas a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
Refer to Scenario 4.1.Which grand strategy does T&Pappear to have chosen at this time?

A) Cost leadership
B) Functional
C) Growth
D) Analyzer
E) Prospector

Question 48

Scenario 4.1
T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs.T&Pis in the process of acquiring another company, its major music store rival ReBop Records.Because its rap stars are so famous, T&Pcharges crazed fans a higher price for its music compact discs and DVD videos.The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year.T&Phas a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
Refer to Scenario 4.1.T&P's policies of no layoffs and promotion from within are likely to have the most positive effect on:

A) the company's foreign investments.
B) shareholders' dividend.
C) excessive absenteeism, due to the threat of being fired.
D) employees' psychological contracts with the company.
E) sales and revenue targets.

Question 49

Briefly explain the influence of organizational purpose and mission.

Question 50

Scenario 4.1
T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs.T&Pis in the process of acquiring another company, its major music store rival ReBop Records.Because its rap stars are so famous, T&Pcharges crazed fans a higher price for its music compact discs and DVD videos.The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year.T&Phas a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
Refer to Scenario 4.1.Which corporate-level strategy does T&P appear to follow?

A) Related diversification
B) Unrelated diversification
C) Retrenchment
D) Differentiation
E) Cost leadership