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CHAPTER 4 ASSESSMENT 1)Emerald Inc

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CHAPTER 4 ASSESSMENT

1)Emerald Inc. is a manufacturer of cosmetics that focuses on delivering high-quality products to its customers. As Emerald is aware of the side effects of parabens on skin and hair, it uses organic preservatives in its cosmetic products. All the cosmetic products that it manufactures are free of parabens. In this way, the company ensures that the usage of its products does not cause allergy to any of its customers. Which of the following social responsiveness strategies is Emerald using in this scenario?

            Defensive strategy

            Reactive strategy

            Accommodative strategy

            Proactive strategy

 

2 Destroying all the files on a company computer is a form of: property deviance

 

3 Managers can use overt integrity tests to _____.

            assess the ethical intensity of an issue

            select and hire ethical employees

            differentiate between the ethics of primary and secondary stakeholders

            reinforce the ethical principle of individual rights

 

4 Red Spark Inc., a multinational electronics manufacturer, recently came under close scrutiny after it was involved in a major money laundering scam. The scam had adversely affected the careers of more than two hundred employees of Red Spark despite the fact that they were not involved in the scam. This scenario illustrates that the scam had a:

            high magnitude of consequences.

            high peer acceptance.

            low probability of effect.

            low concentration of effect.

 

5 When ten customers of Niall's Eatery fell seriously ill after dining at the restaurant, the issue was noticed by the public. The public demanded that the restaurant's kitchen be thoroughly inspected and the patients be compensated. However, the management at Niall's Eatery denied all claims that the customers had fallen ill by consuming the food served by the restaurant. Furthermore, the management was against any inspection on the kitchen. Which of the following social responsiveness strategies is the restaurant using?

            Accommodative strategy

            Reactive strategy

            Defensive strategy

            Proactive strategy

 

 

6 Which of the following statements is true of the relationship between social responsibility and economic performance?

            Socially responsible companies are guaranteed profitability.

            There is a big trade-off between social responsibility and economic performance.

            Socially responsible companies and traditional businesses do not experience the same ups and downs in economic performance.

            The costs of being socially responsible can be offset by a better product or corporate                      reputation.

 

7 For a code of ethics to encourage ethical decision making and behavior in a company, _____.

            the code must contain broad rather than specific guidelines.

            the management must ensure that the code of ethics does not include customers' and                     shareholders' interests.

            the management must develop practical ethical standards and procedures specific to the                company's line of business.

            the code of ethics should revolve around legal factors and not organizational values.

 

8 Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a _____.

            high magnitude of consequences

            low magnitude of influence

            low probability of effect

            high cultural effect

 

9 When addressing an issue of _____, managers are more aware of the impact their decision will have on others.

            high ethical intensity

            high workplace deviance

            low employee shrinkage

            low personal aggression

 

10 Which of the following is an objective of ethics training?

            To achieve credibility with employees

            To discourage employees from reporting violations

            To enforce flexible ethical standards

            To delegate decision-making authorities to all employees

 

 

 

 

 

 

11 Horizon Inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. The company disposes the waste in the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that Horizon has failed to fulfill its _____.

            discretionary responsibility

            political responsibility

            legal responsibility

            economic responsibility

 

12 Suppose that a company finds out that its actions have caused a major environmental hazard, such as a large oil spill. If the company adopts the __________, you might expect it to deny that the hazard exists or that they were responsible for causing it.

 

13 A(n) _____ is a social responsiveness strategy in which a company does less than society expects.

            proactive strategy

            discretionary strategy

            reactive strategy

            accommodative strategy

 

 

 

14 Milton Friedman developed the __________, which says that an organization's number one priority should be to make money for its owners.

 

 

 

15 Teeny Toys Inc., a chain of toy stores, has decided to donate free toys to orphanages across the United States. This scenario illustrates that the company is aiming at fulfilling its _____.

            legal responsibility

            ethical responsibility

            discretionary responsibility

            economic responsibility

 

16 Maxwell Lights Inc., a fireworks company, has workers operating under dangerous working conditions. Last year, one of its workers died on the job. Nevertheless, the company took a long time to acknowledge its responsibility for the accident. The worker's family was compensated only after several months. Moreover, the money received by the worker's family was only half of what they should have actually been paid. Which of the following social responsiveness strategies is the company using?

            Proactive strategy

            Accommodative strategy

            Defensive strategy

            Reactive strategy

 

17 The US Sentencing Commission Guidelines for Organizations impose smaller fines on companies that:

            are not concerned with the ethical behavior of employees.

            are unaware of the unethical behavior of employees.

            voluntarily disclose illegal activities to federal authorities.

            have no history of violation of ethics principles.

 

18 Secondary stakeholders are important to a company because:

            they are critical to the company's long-term survival.

            they can affect public perceptions about socially responsible behavior.

            they have the direct power to control management decisions.

            they are involved in day-to-day transactions with the company.

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 5 ASSESSMENT

 

1 Fill in the blank and help Jennifer by selecting the correct type of plan that match the given statement. Statement - “We provide low-cost, high-quality insurance to underserved populations.”

 

 2 The most popular approach to increase goal commitment is to _____.

            delegate decision-making authority to workers

            set goals participatively

            assign goals to workers

            ask the top management to assign goals

 

 

 

3 Using your knowledge of SMART goals, select the best goal.

            I will pay off my credit cards so I can start saving money for a house.

            I will buy a new house soon so my family will have a place to live.

            I will save $40,000 by January 3, 2014, to use as a down payment on a home.

            I will start saving money toward a new house next week.

 

4 The marketing managers of Point Inc. are having a conflict over how they can improve the marketing strategy of their company. The managers are disagreeing on the views presented by each other based on their experiences and knowledge. In this scenario, the managers are engaged in a(n) _____.

            a-type conflict

            c-type conflict

            channel conflict

            personal conflict

 

5 Fill in the blank and help Jennifer by selecting the correct type of plan that match the given statement. Statement - “The Sales Division will routinely monitor the percentage of new clients in underserved populations.”

 

 

 

6 A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods can be referred to as _____.

            single-use plans

            standing plans

            tactical plans

            visionary plans

 

7 For the following example, identify whether it reflects a single-use plan or a standing plan.

Example — A schedule for completing the redesign of an organization's gardens and landscape.

            Standing plan

            Single-use plan

 

8 Identify the problem with the following goal: To buy a new set of Michelin tires and change the oil using four quarts of 10W-30 oil in my car by September 15.

            Not Specific

            Not Result-Oriented

            Not Time-Bound

            Not Measurable

 

9 The manager of a packaging and shipping company has set a goal of increasing the customer base by 2.5 percent in the next two months. In this scenario, the manager has set a _____.

            visionary goal

            quixotic goal

            proximal goal

            distal goal

 

10 Identify the problem with the following goal: To erect a four-foot-high stone retaining wall around the outer perimeter of the pool.

            Not Measurable

            Not Specific

            Not Time-Bound

            Not Result-Oriented

 

 

 

 

 

 

 

 

11 Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____.

            time-based planning

            traditional planning

            options-based planning

            reverse planning

 

 

12 Next, you and Liz discuss some of the problems that can occur in the various phases in the decision-making process. For example, when defining the problem, Liz should be careful:

            To generate new ideas, instead of considering only tried and true solutions

            Not to use satisficing, rather than maximizing, as a decision-making approach

            To fully understand the gap between current and ideal states

 

13 The operations manager of a car manufacturing company in the U.S. wants to set up factories in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal?

            Track progress toward goal achievement

            Set up effective action plans

            Develop commitment to the goal

            Analyze the profits the factories will make

 

14 Fill in the blank and help Jennifer by selecting the correct type of plan that match the given statement. Statement - We will actively seek to acquire an East Coast life-insurance company that has a diverse clientele.

 

 

 

 

 

15 At a canning factory, new employees are instructed to wear a certain type of uniform while working around the canning machines. The description of the uniform is very detailed and specific. Which of the following kinds of standing plans is described in this scenario?

            Policies

            Norms

            Purpose statements

            Rules and regulations

 

16 For the following example, identify whether it reflects a single-use plan or a standing plan.

Example — The plan to merge Bank of America with Merrill Lynch.

            Single-use plan

            Standing plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 6 ASSESSMENT

 

1 Which of the following statements is true of a portfolio strategy?

            It focuses on increasing profits, revenues, or the number of places in which a company                  does business.

            It guides the strategic decisions of corporations that compete in a variety of businesses.

            It reduces risk by buying a variety of items so that the failure of one business does not                  doom the entire portfolio.

            It guides an investor who invests in a variety of stocks.

 

2 Which of the following statements is true of direct competition?

            It uses cost leadership to produce a specialized product for limited customers.

            It is determined by two factors: market commonality and resource.

            It minimizes the effects of industry competition.

            It does not follow a consistent strategy.

 

3 Ziff Corp. was a leading electronics firm for about three decades. As the competition changed, its product innovation stopped. The managers at Ziff Corp. are well aware of the strategies that lead to their company's success and they continue to follow the old strategies. This scenario is an example of _____.

            core capabilities

            strategic dissonance

            competitive inertia

            distinctive competence

 

4 Identify the type of grand strategy exhibited by the example in the following statement.

Example- Walgreen Co., a large U.S. drugstore chain, expanded its operations in Europe by purchasing 45% of the international Alliance Boots conglomerate.

 

5 When a company purchases another business that does something similar to what the purchasing company does, the purchasing company is using a strategy of

 

 

6 A competitive advantage becomes a sustainable competitive advantage when:

            a company collaborates with its competitors to obtain a larger market share.

            a company's competitors are able to imitate or find substitutes for rare resources.

            all of a company's competitors have similar resources and capabilities.

            other companies cannot duplicate the value a firm is providing to customers.

 

7 The BCG matrix starts by recommending that while the substantial cash flows from cash cows last, they should be reinvested in stars to:

            help them grow even faster and obtain even more market share.

            achieve strategic goals and guide the strategic alternatives.

            increase the number of places in which a company does business.

            acquire companies that share similar products, technology, or cultures.

 

8 Identify the type of grand strategy exhibited by the example in the following statement.

Example- The Island Emporium is a small department store serving the 800 residents of the Great Barrier Island in New Zealand. Run by two retirees and open only a few days a week, the store has a steady stream of customers but is unlikely to open another location anytime soon.

 

9 Bob's Assembly is a hardware manufacturer. It specializes in builders' hardware for doors, cabinets, windows, and bathrooms. Bob's Assembly products are cheaper and 95% more durable than its competitors' products. This scenario is an example of _____ as Bob's Assembly performs better than its competitors.

            competitive inertia

            core capability

            strategic dissonance

            distinctive competence

 

10 In the context of adaptive strategies, which of the following is true of defenders?

            They do not follow a consistent strategy and tend to react to changes in their external                   environment after they occur.

            They aggressively hold their current strategic position by doing the best job they can to                 hold on to customers in a particular market segment.

            They use an adaptive strategy that seeks fast growth by searching for new market                          opportunities, encouraging risk taking.

            They try to simultaneously minimize risk and maximize profits by following or imitating                the proven successes of prospectors.

 

11 Use your knowledge of strategic planning to select the phrase that best completes the following sentences. When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify:

            company strengths and weaknesses.

            environmental opportunities and threats.

            environmental strengths and weaknesses.

            company opportunities and threats.

 

 

12 Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring another coffee shop one town over. This is an example of

 

13 Organizations can achieve a competitive advantage by using their resources to _____.

            provide greater value for customers than competitors can

            create strategies that are simultaneously being implemented by competitors

            foster competitive inertia

            duplicate the value a competitor firm provides to its customers

 

14 ZeCola is a beverage manufacturer. It presents WYB, a zero-calorie drink to compete with We Fresh's Shire, a low-calorie drink. When WYB is released in the market, We Fresh cuts down the price on Shire to match WYB's price. This scenario is an example of a(n) _____.

            attack

            acquisition

            recovery

            rejoinder

 

15 According to Michael Porter, the fact that people could easily watch TV or a movie instead of watching a YouTube video is an example of _________, which in this case is

 

16 Spade and Marcher Corp. manufactures and sells toy guns. These toy guns are a perfect imitation of real weapons. Inspired by Spade and Marcher's success, Keith & Sons, an arms manufacturer in Korowlla, starts to manufacture toy guns too. Which of the following adaptive strategies is used by Keith & Sons?

            Prospectors

            Defenders

            Analyzers

            Reactors

 

17 Which of the following is a core capability of a company that determines how efficiently inputs can be turned into outputs?

            External decision-making routines

            Problem-solving processes

            Market-sensing processes

            Customer acquisition routines

 

 

 

 

 

18In the context of adaptive strategies, which of the following best describes prospectors?

            They try to simultaneously minimize risk and maximize profits by following or imitating                the proven successes of firms.

            They seek fast growth by searching for new market opportunities, encouraging risk                        taking, and being the first to bring innovative new products to market.

            They seek moderate, steady growth by offering a limited range of products and services               to a well-defined set of customers.

            They do not follow a consistent strategy and tend to react to changes in their external                   environment after they occur.