A Day in the Life of a CEO (Scenario)
Carly spent the day "shadowing" her uncle Dave, who is the CEO of a large consumer electronics company. Carly is a business management major at a local college, and one of her class assignments was to interview a business manager. When she approached her uncle about the assignment, he invited her to follow him around for a day to observe the typical business activities of a top manager. She noted that he spent the day dealing with a variety of issues. First he met with a division manager who was having difficulty achieving production targets due to his inability to motivate the employees. Then they visited the assembly line to inspect a new machine designed to increase production output. Uncle Dave had once been a production engineer, and the department supervisor and assembly workers were impressed by his knowledge of the new machine's operating specifications. At lunch they met with a group of local CEOs from other companies where everything from the new hiring laws to the latest economic reports was discussed. After lunch, Carly attended a meeting where the five-year strategic plan for the entire company was being evaluated. For her uncle it was a typical day in the life of a CEO, but for Carly it had been a day full of information that she could use for her class assignment.
-If the new machine increased production output at the same cost,but also caused many more product defects,it would be ________.
A)efficient and effective
B)efficient but not effective
C)effective but not efficient
D)neither efficient nor effective

Question

Quizplus · Accepted Answer

While the machine increases production output, it causes many more product defects, which means that the cost to fix those defects will likely cancel out any gains made in production. Therefore, the machine is efficient in terms of increasing output at the same cost, but it is not effective as it creates more defects, which can harm the company's overall profitability and reputation.