MGT 3200 TEST BANK 1 All of the flowing are true concerning managerial skills except a Human skills are the most difficult to develop 2 Which of the following is NOT true concerning corporate downsizing a Downsizing is primarily effectiveness oriented 3 All of the following are true concerning the power of suppliers EXCEPT a A supplier is more powerful when they only have a few customers that make large purchases from them 4 Which of the following is NOT true concerning Luthans 1988 real manager study a Promotions were based primarily on performance 5 Which concept assumes that businesses that are unable to compete will be forced to change their product lines or else die out a Law of the marketplace 6 When a CEO of a company holds a meeting of top executives to communicate to them the importance of higher quality and to motivate them to use new quality improvement processes in their divisions she is engaged in a Leading a All of the above 7 Which of the following would improve the implementation of a plan 8 Which of the following is true concerning the contingency planning a It s more likely to be useful for a company in a dynamic environment rather than a stable one 9 Ford International acquired a new business that really took off Citrus Rush Citrus Rush is a new semi carbonated drink that is high in vitamin C and has all the other benefits of that Gator drink bus tastes great Is has a high market share in a high growth market and is profitable According to the Business Portfolio Matrix approach which strategy is recommended a Divestment b Growth 10 Which of the following would lead to a good competitive environment from an organization s standpoint a Having many customers who have few other places to buy what you re selling 11 Which of the following is NOT a method for establishing and marinating a positive mutually beneficial relationship with an organization s suppliers a Increase the number of suppliers so one can get a better deal through competition 12 According to the cyclical nature of the transformation process which of the following statements is true a Customers and suppliers are equally important to the organization s survival 13 Mercedes Benz announced last year that they would begin offering their luxury cars with a leather free option This move was in response to the increasing pressure that was placed on the organization by PETA This action was taken in response to what aspect of the external environment 14 Which component of strategy is similar to the concept of business level a Society b Customers strategy a Synergy b Distinctive competence 15 Southwest Airlines is gaining customers in its domestic marketplace due to the bankruptcies of Delta and Northwest Airlines It costs however are increasing due to the skyrocketing costs of gas and jet fuel Form the facts given southwest airlines effectiveness is and efficiency is a Increasing decreasing 16 A manager who engages in the Persian messenger syndrome most adversely affects what aspect of the planning process a Evaluating results 17 When a new entrant enters the marketplace which of the following does NOT occur a Competitors resource cost are decreased 18 Planning involves a basic dilemma between commitment and a Flexibility in the changing plan 19 Mars INC is involved in a number of businesses Among the businesses are candies snack foods pet foods main meal foods hot and cold drinks electronic auto payment systems and information technology services According to the textbook Mars INC is pursing a strategy of a Unrelated diversification 20 Which of the following is true concerning a defender strategy a It emphasized cost containment and control 21 The Industrial Revolution resulted in all of the following except a The skill level of the laborer increased 22 Greshman s Law of planning assumes that a Decision makers have the best intentions to plan 23 The primacy of planning refers to the fact that a Planning is the first of the management functions 24 To deal with environmental uncertainty businesses may use the strategy of smoothing which is a Maintaining a continuous demand for a product 25 Buffering the technical core refers to maintaining stability in which subsystem of the organization a Production 26 Which of the following is NOT a characteristic of an effective goal according to the SMART model a A goal that is easily achieved b A goal that is set in an important area of activity 27 Toyota Motors Corporation has long been recognized for building superior automobiles But much of their success rests on their ability to bring new products to market faster than the competition this ability is known as a Cycle time reduction b Strategic planning 28 Jack Welsh ex CEO of GE believed that turnover employees who quit or were fired was good for a company In fact he believed that the new blood new employees who replaced old ones helped infuse the company with new ideas preventing a decline in the company Jack Welsh s comments are consistent with what characteristic of an open system a Negative entropy 29 According to Total Quality Management experts how much more does it cost to fine a new customer than keep an old one a 5 times as much 30 Which of the following represent the Siamese twins or conjoined twins of management a Planning and controlling 31 Political action committees are limited to in terms of direct contributions and in terms of indirect contributions a None of the above 5 000 and unlimited 32 All of the following are true concerning technological innovations substitutes EXCEPT a Substitute products when they are first introduced are typically offered at a lower pries than products currently on the market 33 Which of the following would NOT be considered a barrier to entry into an industry market a A lack of brand loyalty by customers 34 To deal with environmental uncertainty an organization may use the strategy of changing domain whereby the organization a Alters where it does business or what product or products it offers 35 Just introduced in August 2005 Apple s iPod nano is just beginning to gain market share in the high growth market for portable digital music players Right now you would classify the nano as a However if it continues to gain market share and does as well as its siblings you would then classify it as a a New venture star 36 Which of the following would a top manager exclude from his her business portfolio corporate strategy according to the Business Portfolio Matrix Approach a Dogs