Columbia Southern MBA 5101 test bank

Question # 00003112 Posted By: neil2103 Updated on: 11/02/2013 05:04 AM Due on: 11/28/2013
Subject Business Topic Management Tutorials:
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A business model is a company's method for making money in the current business environment.

A captive company strategy involves giving up management of the firm to the courts in return for some settlement of the corporation's obligations.

A cellular organization is composed of cells which can operate alone but which can interact with other cells to produce a more potent and competent business mechanism.

A company's capability in product R & D can be measured by consistent reductions in unit manufacturing costs and by the number of product defects

A company's center of gravity is the part of the value chain that is most important to the company and the point where its greatest expertise and core competencies lie.

A company's center of gravity is usually the point at which the company started.

A core competency can be easily imitated to the extent that it is transparent, transferable, and replicable.

A current trend in corporate information systems is the increasing use of the Internet for marketing, intranets for internal communication, and extranets for logistics and distribution.

A divisional structure has no functional or product categories and is appropriate for a small, entrepreneur-dominated company with one or two product lines that operates in a reasonably small, easily identifiable market niche

A functional structure is appropriate for a medium sized firm with several product lines in one industry.

A good rule of thumb for R & D spending is that a corporation should spend at a "normal" rate for that particular industry unless its strategic plan calls for unusual expenditures.

A horizontal strategy is a corporate strategy that cuts across business unit boundaries to build synergy across business units and to improve the competitive position of one or more business units.

A job redesign technique in which workers are moved through several jobs to increase variety is called job enlargement.

A lead director is a position enacted when the chairman and CEO positions are combined.

A lead user team will spend 12 to 15 hours per week on a project for its duration.

A licensing arrangement is a strong and close alliance in which one company or unit forms a long-term arrangement with a key supplier or distributor for mutual advantage

A merger is the purchase of a company that is completely absorbed as an operating subsidiary or division of the acquiring corporation.

A multidomestic MNC should use loose controls on its foreign units.

A multinational corporation (MNC) is a company with significant assets and activities in multiple countries.

A mutual service consortium is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone.

A new business with uncertain strategic importance that is only partly related to present corporate operations belongs in a special business unit.

A niche is a need in the marketplace that is currently unsatisfied.

A no change strategy is an opportunity to rest before continuing a growth or retrenchment strategy.

A performance appraisal system is used for evaluating a person's suitability for an advanced position.

A period of strategic drift may simply result from inertia on the part of the organization or may simply reflect management's belief that the current strategy is still inappropriate and needs only some "fine-tuning."

A political strategy addresses the issue of whether a company or business unit should hire a large number of low-skilled employees who receive low pay, perform repetitive jobs, and most likely quit after a short time.

A possible entry barrier is the presence of homogenous products.

A private university (organization C) is more heavily dependent on outside sponsors such as a state legislature for revenue funding

A problem to evaluation and control is that rewards and penalties have little or no relation to performance

A product champion is usually a department manager who recognizes the value of the idea, helps obtain funding to develop the innovation, and facilitates its implementation.

A strategic audit provides a checklist of questions, by area or issue, that enables a systematic analysis to be made of various corporate functions and activities.

A tactic is a specific operating plan detailing how a strategy is to be implemented in terms of when and where it is to be put into action.

A tracking stock is a type of common stock tied to one portion of a corporation's business.

A typical financial analysis of a firm would include a study of the operating statements for five years or so

A value chain is a linked set of value-creating activities

About 40 percent of existing small family-owned businesses do not have a written strategic plan.

According to Friedman, social responsibility includes both ethical and discretionary, but not economic and legal responsibilities.

According to Hofer and Sandberg, the key to success for most new ventures is to modify an existing product and to focus on existing markets.

According to Kant's categorical imperatives, a person's action is ethical only if that person is willing for that same action to be taken by everyone who is in a similar situation

According to Kohlberg, most people are placed in the preconventional level characterized by a concern for self.

According to Kuczmarski & Associates, only 25 percent of all newly introduced products are still being sold five years later.

According to Newman and Wallender's constraints on strategic management, service is often intangible and hard to measure.

According to Porter, a manufacturing firm's support activities usually begin with inbound logistics, go through an operations process in which a product is manufactured, and continue on to outbound logistics and finally to service.

According to the board of directors continuum, the lowest degree of involvement in the strategic management process is the phantom level.

According to the five substages of small business development, the key problems in the take-off stage are how to grow rapidly and how to finance that growth.

According to the U.S. Small Business Administration, 50 percent of businesses founded in any one year are not in business seven years later.

According to the Yankelovich Partners survey firm, eight out of 10 portfolio managers and 75 percent of security analysts use annual report when making decisions.

Adherents of moral relativism may believe that all moral decisions are deeply personal and that individuals have the right to run their own lives.

An action plan states what actions are going to be taken, by whom, during what timeframe, and with what expected results.

An advisory board is a group of external business people who voluntarily meet periodically with the owner/managers of the firm to discuss strategic and other issues

An example of a cluster in the US is found in the Silicon Valley.

An example of an intermittent manufacturing system is an auto body repair shop.

An indirect interlocking directorate occurs when two firms share a director or when an executive of one firm sits on the board of a second firm.

An intranet is an information network within an organization that also has access to the external worldwide Internet.

An investment center's performance is judged in terms of effectiveness rather than efficiency.

An objective is an open-ended statement of what one wants to accomplish with no quantification of what is to be achieved and no time criteria for completion

An opportunity is a concept for a product or service that currently does not exist or is not currently available in a market niche.

Approximately 50 percent of patented innovations are generally imitated within four years at 55 percent of the cost of innovation.

Approximately half the profits of all U.S. companies come from products launched in the previous 10 years.

Assimilation involves the disintegration of one company's culture resulting from unwanted and extreme pressure from the other to impose its culture and practices.

At the maturity stage of the industry life cycle, products tend to become more like commodities, and this is now a fragmented industry.

Basic R&D is concerned with engineering and the development of design specifications and improved production equipment.

Between 33 and 60 percent of all new products that reach the market fail to make a profit

Bottled water is a substitute product for soda.

Capabilities refer to a corporation's ability to exploit its resources.

Carroll proposes that ethical problems can be solved by applying an act or decision to a set of ethical norms.

Codetermination is the inclusion of a corporation's workers on its board.

Collusion is the active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand

Communication is key to the effective management of change.

Competitive analysis is the calculation of ratios from data in financial statements

Competitive intelligence is a formal program of gathering information on a company's competitors.

Conglomerate structure is appropriate for a large corporation with many product lines in several unrelated industries

Consolidated industries are typical for products in the early stages of their life cycle.

Core competencies may mature and become core deficiencies

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Cultural integration is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit.

Cultural intensity is the extent to which units throughout an organization share a common culture.

Demographic trends are part of the political-legal aspect of the societal environment

Durability is the rate at which a firm's underlying resources and capabilities (core competencies) can be duplicated by others

Durability is the rate at which a firm's underlying resources and capabilities can be duplicated by others.

eBay and have successfully used the efficiency model by acting as an intermediary to connect multiple sellers to multiple buyers.

Electronic commerce refers to the use of the Internet to conduct business transactions

Encirclement is characterized by the use of small, intermittent assaults on different market segments held by the competitor.

Enterprise Risk Management unites all of a company's major business activities within a single family of software modules.

Environmental scanning is the monitoring, evaluation, and disseminating of information from the external and internal environments to key people within the corporation

Ethical responsibilities are the purely voluntary obligations a corporation assumes

Executive succession is the process of replacing a key top manager.

Exporting involves buying products made or grown abroad and selling them domestically in the U.S.

Exporting involves buying products made or grown abroad and selling them domestically in the U.S.

Financial leverage is the impact of a specific change in sales volume on net operating income.

Firms that are unable to finance alone the huge costs of developing a new technology may coordinate their R & D with other firms through technology sourcing.

Flexible manufacturing permits the low-volume output of custom-tailored products at relatively low unit costs through economies of scope.

Functional strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity.

General Electric is well known for its distinctive competency in management development.

Historically, competitive leadership in a market changes hands as one technology nears the end of its S-curve.

Hypercompetition views competition as a distinct series of ocean waves on what used to be a fairly calm stretch of water.

If a company does not want to purchase another company's problems along with its assets, it may choose green-field development.

If a company does not want to purchase another company's problems along with its assets, it may choose green-field development.

Implementation involves leading through coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives.

In a divisional structure, the use of SBUs may result in a pressure-cooker crisis in which the corporation has grown too large and complex to be managed through formal programs.

In dialectic inquiry, an individual or group is assigned to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation.

In most large, multi-industry corporations, only top management implements strategy.

In outsourcing, a company purchases resources from outsiders through long-term contracts instead of being made in-house.

In outsourcing, a company purchases resources from outsiders through long-term contracts instead of being made in-house.

In the U.S., family businesses account for approximately 50 percent of the total 15 million businesses.

Intense rivalry can result from a firm's capacity.

Intermittent manufacturing systems reap benefits from economies of scale

It is generally accepted that product R & D normally dominates the early stages of a product's life cycle, whereas process R & D becomes especially important in the later the later stages.

Leading focuses on the selection and use of employees.

Lean Six Sigma is an analytical method for achieving near-perfect results on a production line.

Learning organizations are skilled at experimenting with new approaches.

Licensing technology to other companies may be an excellent R&D strategy.

Logical incrementalism involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy.

Marketing strategy deals with pricing, selling, and distributing a product.

Modular manufacturing requires that people, processes, units, and technology reconfigure themselves to give customers exactly what they want, when they want it.

Morality is defined as the consensually accepted standards of behavior for an occupation, trade, or profession.

Multinational corporations must pay attention to the many differences in cultural dimensions around the world and adjust their management practices accordingly.

New product development would be a core competency if it goes beyond one division

Not-for-profit organizations include private nonprofit corporations and public governmental units or agencies.

One benefit of strategic management is a sharper focus on what is strategically important.

One complication to strategy formulation is that rigid operating objectives create opportunities for internal politics and goal displacement.

One complication to strategy implementation is that linking pins for external-internal integration become important

One of the variables in the index of sustainable growth formula is net profit before tax.

One step in handling financial statements is to determine the financial changes as a decimal

One way to adjust for inflation in the U.S. is to use the Consumer Price Index

Output controls focus on resources, such as knowledge, skills, abilities, values, and motives of employees.

Power distance is the extent to which society is oriented toward the long versus the short term.

Preferred tax status to nonstock corporations is given in section 501(p) of the U.S. Internal Revenue code in the form of exemptions from corporate income taxes.

R&D strategy determines how and where a product or service is to be manufactured.

Reactors are companies with a limited product line that focus on improving the efficiency of their existing operations.

Reengineering is the radical redesign of business processes to achieve major gains in cost, service or time.

Research indicates that greater financial leverage has a positive impact on performance for firms in dynamic environments.

Research reveals a positive relationship between corporate reputation and financial performance.

Research shows that chances for success are greater for entrepreneurial ventures that enter stable industries than for those that enter rapidly changing industries.

Resources are the organization's assets and are the basic building blocks of the organization.

Retired directors are usually descendants of the founder and own significant blocks of stock.

Risk is composed not only of the probability that the strategy will be effective, but also of the amount of assets the corporation must allocate to that strategy and the length of time the assets will be unavailable for other uses.

Shareholder value can be defined as the present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated.

Since competitors were not able to understand how Gillette's Mach 3 razor was produced, it was considered transparent.

Standard Operating Procedures (SOP) is shorthand for procedures.

Strategic choice is the evaluation of alternative strategies and selection of the best alternative.

Strategic management is difficult to apply when the organization's output is difficult to measure objectively

Strategic piggybacking involves developing cooperative ties with other organizations.

Suboptimization refers to a phenomenon when people substitute activities that do not lead to goal accomplishment for activities that do lead to goal accomplishment because the wrong activities are being rewarded.

Successful entrepreneurs focus on opportunities-not on problems-and try to learn from failure.

SWOT is an acronym used to describe Strengths, Weaknesses, Opportunities, and Technologies

Synergy is the concept that two businesses will generate more profits together than they could separately.

Synergy is the concept that two businesses will generate more profits together than they could separately.

Tacit knowledge is knowledge that can be easily articulated and communicated.

Tacit knowledge is knowledge that can be easily communicated or articulated and as result can be easily imitated

The amount of money generated by a company before the cost of financing and taxes is called return on investment.

The concept of social capital proposes that a private corporation has responsibilities to society that extend beyond making a profit.

The COO articulates a strategic vision for the corporation

The corporate culture generally reflects the values of the founder(s) and the mission of the firm.

The critical strengths and weaknesses that are likely to determine if the firm will be able to take advantage of opportunities while avoiding threats are called internal strategic factors.

The EFAS Table is one way to organize the internal factors into generally accepted categories of strengths and weaknesses as well as to analyze how well a particular company's management is responding to these specific factors in light of the perceived importance of these factors to the company.

The entrepreneurial venture is independently owned and operated, not dominate in its field, and does not engage in innovative practices.

The evaluation and control process is the end result of activity.

The first phase of the strategic management process is forecast-based planning

The first step in stakeholder analysis is to identify primary stakeholders.

The house of quality is a tool to help project teams make important design decisions by getting them to think about what users want and how to get it to them most effectively.

The ISO 9000 Series is a way of objectively documenting a company's high level of quality operations.

The marketing mix refers to the particular combination of key variables under the corporation's control that can be used to affect demand and to gain competitive advantage.

The most important financial ratios are liquidity ratios, profitability ratios, activity rations, and bankruptcy ratios.

The not-for-profit organization depends heavily on dues, assessments, or donations from its membership or on funding from a sponsoring agency to pay for much of its costs and expenses.

The organizational life cycle is the equivalent of the product life cycle in marketing.

The particular combination of key variables under the corporation's control that can be used to affect demand and to gain competitive advantage is called the marketing mix.

The product life cycle enables a marketing manager to examine the marketing mix of a particular product or group of products in terms of its position in its life cycle.

The product-group structure enables the corporation to centralize decision making along product lines and to reduce costs.

The proposition that structure follows strategy implies that changes in corporate strategy lead to changes in organizational structure

The purpose of a program is to achieve synergy between and among functions and business units.

The P-value formula combines five ratios by weighting them according to their importance to a corporation's financial strength.

The quick ratio is how much of current assets are available to cover each dollar of current liabilities

The resources of an organization include tangible assets, human assets, and intangible assets.

The Sarbanes-Oxley Act of 2002 was passed in response to the many corporate and accounting scandals involving a number of prominent U.S. firms.

The stewardship theory states that problems arise in corporations because the agents are not willing to bear responsibility for their decisions unless they own a substantial amount of stock in the corporation.

The strategic-funds method compensates managers for achieving objectives set over a multiyear period.

The term corporate governance refers to the relationship among the board of directors, top management, and the federal government.

The TOWS Matrix illustrates how the external opportunities and threats facing a particular corporation can be matched with that company's internal strengths and weaknesses to result in four sets of possible strategic alternatives.

The utilitarian approach proposes that actions and plans should be judged by their consequences

The willingness to reject unfamiliar as well as negative information is called strategic myopia

There is only one best way to analyze or present a case report

To increase flexibility, avoid layoffs, and reduce labor costs, corporations are using more contingent workers.

Top management responsibilities involve getting things accomplished through and with others in order to meet the corporate objectives.

Training is especially important for a differentiation strategy emphasizing quality or customer service.

Transferability is the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success.

Two characteristics that determine the sustainability of a firm's distinctive competency are durability and transparency

Under the BCG Growth-Share Matrix, stars typically bring in far more money than is needed to maintain their market share

Under the BCG Growth-Share Matrix, stars typically bring in far more money than is needed to maintain their market share.

Using concurrent engineering, Chrysler Corporation was able to reduce its product development cycle from 60 to 36 months

When a company uses the same marketing channel for two separate products, this is an example of an economy of scope

When competitive strategies are focused on a market niche, they are simply called cost leadership and differentiation.

When employees across the organization hold the same cultural values and norms, this demonstrates a high level of cultural integration.

With quasi-integration, a firm internally produces less than half of its own requirements and buys the rest from outside suppliers.

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