Chapter_10_Test_Bank.doc

MMM132 MANAGEMENTMultichoice Test Bank Chapter 10 Question 1: A business-level plan is defined as: A: Business managers decisions pertaining to top-level, but not operational, issues in the short-termB: Functional managers decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goalsC: Divisional managers decisions pertaining to divisions long-term goals, overall strategy and structure D: All of the given options are correctQuestion 2: Which of the following best describes the meaning of a function?A: A unit or department in which people have the same skills or use the same resources to perform their jobs B: A business unit that has its own set of managers and functions or departments and competes in s distinct industryC: A set of capabilities, human or otherwise, that occur where discrete goods or services are producedD: A set of capabilities, human or otherwise, that occur in the intersection between the production of discrete goods or services and specific customer marketsQuestion 3: A corporate-level strategy is defined as:A: A plan that indicates in which industries and national markets an organisation intends to compete B: Divisional managers decisions pertaining to divisions long-term goals, overall strategy and structure C: Functional managers decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goalsD: All of the given options are correctQuestion 4: A mission statement is developed at which level and type of planning?A: Business-level plan; and Strategy formulationB: Business-level plan; and Goal settingC: Corporate-level plan; and Strategy formulationD: Corporate-level plan; and Goal setting Question 5: Fayol suggested that effective plans should have four qualities: A: Coherence, continuity, accuracy, and flexibilityB: Unity, continuity, accuracy, and flexibility C: Coherence, efficiency, accuracy, and flexibility D: Unity, efficiency, accuracy, and flexibility Question 6: A good reason for planning is:A: Planning is a useful way of getting managers to participate in decision-making within the firmB: Planning is necessary to give the organisation a sense of direction and purposeC: A plan can be used as a means for controlling managers within an organisationD: All of the given options are correct Question 7: Scenario planning is:A: A planning system where managers develop ideas about future products and services and consider the marketability and potential of such ideasB: The generation of a plausible situation in which the organisation would struggle, and the development of best practice in terms of a possible responseC: The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions D: All of the given options are correctQuestion 8: Defining the business comprises asking: A: How are we satisfying customer needs?B: Who are our customers?C: What customer needs are being satisfied?D: All of the given options are correct Question 9: A SWOT analysis stands for:A: Strengths, weaknesses, opportunities, and threats B: Sustainable, welfare, organisation, and timelines C: Sustainable, welfare, opportunities, and timelines D: Sustainable, weaknesses, opportunities, and threats Question 10: Which of the following is an example of a potential strength?A: Application of R&D skills in a new areaB: Human resource competencies C: Decline in R&D innovationsD: New forms of industry competitionQuestion 11: Which of the following is an example of a potential threat?A: Well-developed strategyB: Increase in domestic competition C: Exploitation of new market segmentsD: Rising manufacturing costsQuestion 12: The five forces model was developed by:A: FayolB: MintzbergC: Porter D: Dunphy and StaceQuestion 13: The five forces model comprises:A: Level of rivalry; barriers to entry; power of suppliers; power of customers; and the threat of substitute products B: Level of industry profitability; barriers to entry; power of suppliers; power of customers; and the threat of substitute productsC: Level of industry profitability; barriers against mergers; power of suppliers; power of customers; and the threat of substitute productsD: Level of rivalry; barriers against mergers; power of suppliers; power of customers; and the threat of substitute productsQuestion 14: With regards to the five forces model, the threat of substitutes refers to: A: The possible danger of one management group substituting a new strategy when in a merger/acquisitionB: The possible substitution of one firm for another firm in the production of the same goods and servicesC: The possible substitution of output of one industry for output of another industry D: All of the given options are correctQuestion 15: With regards to the five forces model, the power of customers refers to: A: Where a few large customers are available to buy an industrys output, the power to bargain down the price of that outputB: The maxim that customers are always rightC: Where many customers are available to buy an industrys output, the power to bargain down the price of that outputD: Where a few large customers are available to buy an industrys output, the power to drive up the price of the supply of parts needed to manufacture that outputQuestion 16: Expanding operations into a new business or industry and producing new goods or services is termed:A: MultiplicationB: Diversification C: DifferentiationD: ExpansionismQuestion 17: The performance gains that result when individuals and departments coordinate their actions is termed:A: InterdependencyB: EnergyC: EfficiencyD: Synergy Question 18: Selling the same standardised product and using the same basic marketing approach in each national market is termed a:A: Multidomestic strategyB: Related diversificationC: Global strategy D: Unrelated diversificationQuestion 19: Customising products and marketing strategies to specific national conditions is termed a:A: Multidomestic strategyB: Global strategyC: Related diversificationD: Unrelated diversificationQuestion 20: The major disadvantage of pursuing a global strategy is that:A: By recognising national differences, managers may produce goods that quickly become obsolete as local tastes changeB: By ignoring national differences, managers may find that local companies might use their basic design and produce goods and services at a cheaper priceC: By recognising national differences, managers may produce goods and services that are too expensive in comparison to cheaper, local, goodsD: By ignoring national differences, managers may leave themselves vulnerable to local competitors that do differentiate their products to suit local tastes Question 21: A strategy that allows an organisation to create value by producing its own inputs or distributing and selling its own outputs is termed:A: Horizontal integrationB: Vertical integration C: Upstream acquisitionD: Related differentiationQuestion 22: An organisation which moves towards adding value through the inclusion of distribution (as well as assembly) of goods is _ vertical integrating.A: HorizontalB: BackwardC: LateralD: Forward Question 23: An organisation which moves towards adding value through the inclusion of raw materials (as well as manufacturing and assembly) of goods is _ vertical integrating.A: LateralB: ForwardC: Backward D: HorizontalQuestion 24: A low-cost strategy is defined as:A: Ensuring the manufacturing process is efficient so that outputs are cheapB: Reducing the costs of inputs to allow for a cheaper outputC: Driving the organisations costs down below the costs of its rivals D: Ensuring that customers believe that costs are low based on standardisation and advertisingQuestion 25: Distinguishing an organisations products from the products of competitors in dimensions such as product design, quality or after-sales service is termed:A: Diversification strategyB: Differentiation strategy C: Multidomestic strategyD: Focused low-cost strategy Question 26: When the number of market segments served are few, and the firm does NOT use a general low-cost strategy, the _ strategy is preferred. A: Focused differentiationB: Focused low-costC: DifferentiationD: DiversificationQuestion 27: A formal system of task and reporting relationships that coordinates and motivates organisational members so that they work together to achieve organisational goals is termed: A: Organisational structureB: Bureaucracy C: Inter-structuringD: Organisational cultureQuestion 28: The process by which managers make specific organising choices that result in a particular kind of organisational structure is termed:A: Organisational implementationB: Organisational structureC: Organisational strategyD: Organisational design Question 29: The factors that affect organisational structure are:A: Organisational environment; suppliers; customers; and human resourcesB: Organisational environment; strategy; technology; and human resources C: Industry conditions; suppliers; technology; and customersD: Industry conditions; suppliers; technology; and marketsQuestion 30: A common example of a divisional structure is:A: Geographic structureB: Product structureC: Market structureD: All of the given options are correct Question 31: An organisational structure in which each product line or business is handled by a self-contained division is termed a:A: Product structureB: Geographic structureC: Market structureD: All of the given options (can be) are correct Question 32: An organisational structure that simultaneously groups people and resources by function and by product is termed a:A: Matrix structureB: Cross-functional structureC: Divisional structureD: Functional structureQuestion 33: A solution to the possible conflict inherent with matrix structures is to: A: Ensure each boss knows what the other is doingB: Eliminate cross-functional teams altogetherC: Use a product team structure D: Use information systems to ensure employees prioritise their workQuestion 34: The structure of a large organisation that has many divisions and simultaneously uses many different organisational structures is termed a:A: Matrix structureB: Hybrid structure C: Cross-product structureD: Divisional structureQuestion 35: The number of subordinates who report directly to a manager is called:A: AuthorityB: Hierarchy of authorityC: Span of control D: Control-ratioQuestion 36: One of the key problems with tall organisations (with many hierarchical levels) is:A: B: Communication problems C: Making mistakes in productionD: All of the given options are correctQuestion 37: An organisation whose members are linked by computers, faxes, computer-aided design systems and videoteleconferencing and who rarely, if ever, see one another face-to-face is termed:A: E-OrganisationB: Virtual organisationC: Limitless organisationD: Boun