| __________ is the pursuit of lucrative opportunities by enterprising individuals under conditions of uncertainty. (( Entrepreneurship )) |
| A(n) __________ is an enterprise having fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices. (( small business )) |
| A(n) __________ is a new business having growth and high profitability as primary objectives and which produces new goods or services or serves new markets. (( entrepreneurial venture )) |
| When working for a software company, and because Walter is a(n) __________, he created a new venture based solely on his idea while using his company's proprietary technology. (( intrapreneur )) |
| __________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea. (( Intrapreneurs )) |
| Which statement is accurate regarding entrepreneurship? (( Entrepreneurs take careful, calculated risks and are not afraid to act on those decisions. )) |
| Entrepreneurs seek __________ from their business ventures. (( challenge and profit potential )) |
| Caleb was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business, thus creating a(n) (( entrepreneurial venture. )) |
| Cara recently started her own business by recreating a company she worked for previously but with innovative practices. Cara has great management skills and has been able to run her business efficiently and profitably. Cara is a(n) (( entrepreneur. )) |
| __________ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets. (( Entrepreneurship )) |
| Which individual described below is most likely to become a successful entrepreneur? (( Matt enjoys challenges, has a strong social network, has good knowledge of management techniques, and possesses excellent business skills. )) |
| __________ use networks of contacts more than formal authority. (( Entrepreneurs )) |
| A common myth about entrepreneurship is that "Any entrepreneur with a good idea can __________ to fund his/her business." (( raise venture capital )) |
| Because of existing roadblocks to economic success, which group discussed in the text is almost twice as likely to start a business in the United States? (( immigrants )) |
| A small business is often defined as having fewer than __________ employees, as well as being independently owned and operated. (( 500 )) |
| Rae independently owns and operates a company with 22 employees. She manages aggressively and expects rapid sales and profit growth. Rae’s company is considered a(n) __________ venture. (( entrepreneurial )) |
| __________ create new independent businesses with the benefit of corporate support. (( Intrapreneurs )) |
| Which statement represents a myth about entrepreneurs? (( Entrepreneurs are gamblers. )) |
| Entrepreneurs are most motivated in starting their own firms for which reason? (( challenge )) |
| “Drew, I believe that you will succeed," said Pamela, his mentor. "When an entrepreneur is contemplating a new business, the very first step is to have __________. You are on the right track." (( a great idea )) |
| Considering successful business models for e-commerce, sites that pay commissions to other sites to drive business to their own sites involve the __________ model. (( affiliate )) |
| In the context of successful business models for e-commerce, the __________ model involves charging monthly or annual fees for website visits or access to website content. (( subscription )) |
| The online site known as Galaxy Games brings buyers and sellers together and charges a commission for each sale. Galaxy Games uses a(n) __________ e-commerce business model. (( intermediary )) |
| The side street effect refers to (( the appearance of unexpected opportunities as one follows a plan. )) |
| __________ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location. (( Franchising )) |
| Lee Ann spotted, created, and exploited a(n) __________ for ride-sharing services for elderly customers that big companies had avoided. She quickly captured the market with her simpler, cheaper, more accessible, and more convenient services. (( opportunity )) |
| A new technique for extracting oil and gas—called "fracking"—spurred an economic boom in what had been thought to be a depleted oil field. Workers swarmed into the town, and Maureen started a laundry service to meet their needs. In this case, Maureen had spotted an entrepreneurial opportunity created by a (( technological discovery. )) |
| __________ refers to the development of new and creative enterprises seeking to stimulate social change or address social problems by leveraging resources. (( Social entrepreneurship )) |
| Goodwill Industries’ mission is to enhance people’s quality of life by eliminating barriers to opportunity and to elevate individuals to reach their full potential through the power of work. Goodwill’s network of independent organizations can be categorized as (( a social enterprise. )) |
| Which attribute most helps an entrepreneur succeed? (( tolerance of ambiguity and uncertainty )) |
| Wellson Enterprises, an entrepreneurial venture, does not have any distinctive services when compared with the well-established competitors in the same field, and the business will require a sizable investment. According to the entrepreneurial strategy matrix, how should the venture be categorized? (( low innovation/high risk )) |
| Most small entrepreneurial ventures, such as new restaurants and retail shops, can be categorized regarding innovation and risk as (( low innovation, high risk. )) |
| In the context of the entrepreneurial strategy matrix, a novel product idea that involves a large financial investment would be described as (( high innovation/high risk. )) |
| Regarding innovation and risk strategies, a __________ is most likely to have the highest risks and returns. (( space tourism venture )) |
| Which statement is accurate regarding entrepreneurial ventures? (( Successful companies do not always require a cutting-edge technology or an exciting new product. )) |
| The odds of survival for a new venture improve if (( it grows to at least 10 or 20 people. )) |
| __________ is a benefit of business incubators. (( A shared cost )) |
| What is the role of the economic environment in the success of entrepreneurial ventures? (( Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital. )) |
| What is the role of business incubators? (( They provide a nurturing environment for new and small businesses. )) |
| Experienced entrepreneurs know that __________ is part of starting a new business. (( risk )) |
| Business incubators, often located in industrial parks or abandoned factories, are (( protected environments for new, small businesses. )) |
| Manny decides to open a restaurant serving street tacos and fajitas. This will be one of several such restaurants in his small town. This entrepreneurial venture, like most small businesses, is characterized by __________ risk and __________ innovation. (( high; low )) |
| In the context of common management challenges, leadership deteriorates into micromanagement when entrepreneurs fail to (( delegate work. )) |
| The success of an entrepreneurial venture is often jeopardized by the death of its founder. __________ is an important measure to minimize this problem. (( Succession planning )) |
| __________ offer a way for a business to raise capital through federally registered and underwritten sales of shares in a company. (( Initial public stock offerings )) |
| In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to (( fill at least one key position with a nonfamily member. )) |
| According to Peter Drucker, which statement is true regarding managing a family business? (( Someone outside the family and the business should help plan succession. )) |
| Entrepreneurs often fail to use __________, resulting in inadequate margins to support growth. (( formal control systems )) |
| Tom’s new business rocketed upwards in its first year, but its progress stagnated thereafter. His mentor noted that Tom was having a hard time "letting go"—giving his two best employees responsibility to take on assignments that they were obviously ready to handle. In fact, Tom was needlessly and constantly "looking over their shoulder" to check their work. Tom’s entrepreneurial venture was being threatened by his failure to (( delegate. )) |
| Rite Time Lighting has made the decision to "go public" through an initial public stock offering (IPO). Rite Time Lighting undertook this process to (( raise capital and reduce debt. )) |
| In the context of starting an entrepreneurial venture, the first formal step is to (( conduct an opportunity analysis. )) |
| A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, and specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital together make up a(n) (( opportunity analysis. )) |
| The purpose of an opportunity analysis is to (( specify resources needed to translate an idea into a viable business. )) |
| A(n) __________ describes all the elements involved in starting a new venture. (( business plan )) |
| A function of a business plan is to (( determine the viability of one's enterprise. )) |
| A(n) __________ often devotes too much attention to financial projections while neglecting other important information that is important to investors. (( business plan )) |
| What is the key factor in a business plan that an entrepreneur should have clearly thought out, which includes a customer-focused competitive advantage that can be defended? (( opportunity )) |
| What resource comes from people's judgment of a company's acceptance, appropriateness, and desirability? (( legitimacy )) |
| How can an entrepreneur generate legitimacy? (( by visibly endorsing widely held values )) |
| In the context of key planning elements, what is true of what venture capital firms consider important for an entrepreneurial venture? (( They believe that what counts is a person's ability to execute an idea. )) |
| __________ is a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur. (( Social capital )) |
| Dwayne has asked Ryan to be a primary investor in his entrepreneurial start-up. Ryan first wants to carefully study Dwayne’s business plan, in particular these key factors: (( the people, the opportunity, the competition, the context, and the risk/reward. )) |
| Allison has been planning to open a child care center and has been asked by the small business center to create a document that includes the market, strategies, and future directions. This document is a(n) (( business plan. )) |
| __________ is the first step toward building organizational support for an idea that involves explaining the idea and seeking approval to look for wider support. (( Clearing the investment )) |
| The stage for building support for an idea, or __________, means guaranteeing a project's technical and political feasibility, often with a formal presentation to higher management. (( getting the blessing )) |
| "Taylor, let me give you some advice," said her boss. "Before seeking formal approval for your project from higher levels of management, spend some time getting support from your peers.” This process is often called (( making cheerleaders. )) |
| Hajime, a new manager, has a new project idea. Before she begins building support for her idea, she begins by __________, which is explaining the idea to her boss to get his approval to seek wider support. (( clearing the investment )) |
| Emilee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. Several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. The company has given Emilee the opportunity to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this __________ team. (( skunkworks )) |
| Informal efforts, as opposed to official job assignments, in which employees work to create new products and processes of their own choosing and initiative refer to (( bootlegging. )) |
| Sergey works as a technician for a large manufacturer of biomedical equipment. He has discovered a technique to produce composite materials more efficiently. The company encourages its employees to pursue new ideas on company premises. Syd's company supports (( bootlegging. )) |
| Which statement is accurate regarding organizations with successful intrapreneurial initiatives? (( They foster the entrepreneurial spirit throughout the organization. )) |
| The most dangerous risk in intrapreneurship is that of (( over relying on a single large project. )) |
| In the context of entrepreneurial orientation, __________ occurs when an organization is willing to commit significant resources and perhaps borrow heavily to venture into the unknown. (( risk taking )) |
| An organization with a tendency toward __________ grants individuals and teams the freedom to exercise their creativity, champion promising ideas, and carry them through to completion. (( independent action )) |
| Carlos has a new idea to revamp the mail processing at his large company. His boss tells him to go for it and report back on the barriers and efficiencies of his idea, thereby endorsing the __________ approach. (( skunkworks )) |
| Recently, Global View executives anticipated a future market, recognized their lack of a technology to exploit that market, and acquired exclusive rights to license a technology that would, in two years, put them in a premier competitive position. This company is displaying __________ in anticipating future problems and opportunities. (( proactiveness )) |
| If a company is striking fast to beat competitors to the punch, tackle them head-on, and analyze and target competitors' weaknesses, then they are practicing (( competitive aggressiveness. )) |
| Companies should tolerate, and even encourage, informal efforts in which employees work to create new products and processes of their own choosing and initiative. Such efforts are known as (( bootlegging. )) |
| Which step is unlikely to build internal support for a new market opportunity? (( ignoring the risks )) |
| Marcella, Vice President of Development for a large automobile manufacturer, has developed a radically different marketing strategy. Before she presents the idea to the CEO, she first consults with the other vice presidents to get their input and support. This step in building support for an idea is known as (( making cheerleaders. )) |
| In building support for your idea within your firm, you might engage in horse trading. This involves (( offering promises of payoffs from the project in return for support, time, money, and other resources that peers and others contribute. )) |
| Organizations with an entrepreneurial orientation are more likely to be successful, particularly for (( conducting business internationally. )) |
| Organizations which encourage intrapreneurship know they face risk. They must realize that the risk is (( manageable. )) |
| Your roommate excitedly tells you that she has decided to become an entrepreneur. Her primary reason, she says, is that entrepreneurship is a perfect match for her. You decide this is true because your roommate displays which attribute? (( She takes careful and calculated risks. )) |
| "As a budding entrepreneur 40 years ago, I naively looked forward to being my own boss and independent," said Scott, owner of a small design firm. "I didn't realize that, in fact, I would have to answer to many __________, including partners, customers, suppliers, creditors, employees, and families." (( stakeholders )) |
| "There are many good reasons why you might want to go into business for yourself," said Dr. Felton to her PhD candidate. "But these good reasons do not include (( seeking power and control over others. )) |
| "I am so proud of my former marketing students," said Dr. Marshall. "So many have become successful entrepreneurs because they were able to spot, create, or exploit __________ in a variety of ways." (( opportunities )) |
| "My niche is designing smartphone apps for senior citizens, a growing market due to the aging of the Baby Boomer generation," said entrepreneur programmer Clayton. "Examples include apps for helping a shopper find his car in a parking lot, for keeping track of medications, and for monitoring blood pressure." Clayton is developing entrepreneurial opportunities based upon events and trends as they unfold—in this case, due to (( demographic changes. )) |
| The recovery and rebuilding efforts on the Gulf Coast due to recent devastation from hurricanes will require years. Many volunteers and companies have temporarily moved into the area to provide help. To provide housing for these workers, one entrepreneur developed Ready-Home Corporation. This business opportunity was created as a result of (( a calamity. )) |
| Personalized medicine separates people into different groups, with treatments being tailored to the individual patient based on their predicted response or risk of disease. Personalized medicine is enabled by new diagnostic and monitoring approaches that provide understanding of the molecular basis of disease, particularly genomics. Entrepreneurial opportunities for software and hardware that arise in personalized medicine are made possible by (( technological discoveries. )) |
| Adam uses his father's yard equipment to start up a lawn mowing business during summer break from school, to earn enough money to buy books in the fall. According to the entrepreneurial strategy assessment matrix, Adam’s business can be described as (( low innovation/low risk. )) |
| Maya is seeking investors for her start-up firm to develop robotic rovers to collect and analyze dust samples from the surface of the planet Mercury. According to the entrepreneurial strategy matrix, Maya’s business can be described as (( high innovation/high risk. )) |
| Sally is opening up a family diner at a busy intersection along an interstate highway. According to the entrepreneurial strategy matrix, Sally’s business can be described as (( low innovation/high risk. )) |
| The CEO of the largest fast food franchise in the world has approved an expenditure of $3 million to develop a software app for remote custom "design" and ordering of burgers. According to the entrepreneurial strategy matrix, this software app venture can be described as (( high innovation/low risk. )) |
| Alana seeks to open a new apparel business. She has completed the first formal stage of the planning process—the opportunity analysis. In so doing, she has (( described the service, assessed the opportunity, assessed herself, and specified the activities and resources (including funding) needed to move the idea to a viable business. )) |
| Alijah has conducted an opportunity analysis of her proposed new entrepreneurial venture. Based upon this analysis, she believes that her idea is viable. Alijah will now proceed to the next step of the planning process for entrepreneurial ventures, that is, a(n) (( business plan. )) |
| Bartek has been developing contacts and heightening his profile in his community; that is, he has been creating his __________. He knows that nonfinancial resources will be crucial to the success of his entrepreneurial venture. (( social capital )) |
| Everett’s boss told him, "This one-year confidential project is a great intrapreneurial opportunity for you. You will be teamed with some of the best minds in the company and you and your team members will earn a significant reward if you develop a new, innovative product. And, on top of that, I'll hold your current job open for you if you decide that you want it after the project is over. Not many professionals have an opportunity to work on a(n) __________ as I've described. Congratulations!" (( skunkworks )) |
| An entrepreneur is a manager, but also engages in additional activities than most managers do not. (( TRUE )) |
| A small business and an entrepreneurial venture have similar goals. (( FALSE )) |
| Opening up a Dunkin’ Donuts franchise represents an entrepreneurial alliance. (( TRUE )) |
| In the context of the entrepreneurial strategy matrix, most small business ventures fall in the lower right quadrant where innovation is low and risk is high. (( TRUE )) |
| A common entrepreneurial advantage is the ability to micromanage. (( FALSE )) |
| Social capital refers to being part of a social network and having a good reputation. (( TRUE )) |
| Professional venture capitalists are likely to be passive investors who do not seek more control from entrepreneurs. (( FALSE )) |
| Organizations that encourage intrapreneurship face the obvious risk that this effort can fail. (( TRUE )) |
| Information conveyed by a conventional organization chart includes the((work performed by each unit in the organization.)) |
| In organizing, coordination refers to((the procedures that link the various parts of an organization to achieve the organization's overall mission.)) |
| Harvard professors Lawrence and Lorsch found that organizations in complex, dynamic environments((had to develop high differentiation in order to succeed.)) |
| __________ is the assignment of different tasks to different people or groups in an organization.((Division of labor)) |
| __________ is the process in which different individuals and units perform different tasks.((Specialization)) |
| In a(n) __________ organization, managers encourage employees to work more as teammates than as subordinates who take orders from the boss.((organic)) |
| What is a characteristic of a mechanistic organization?((obedience to authority as an expression of commitment)) |
| The organization chart depicts the
((positions in the firm and the way they are arranged.)) |
| The more highly differentiated a firm is,((the greater the need for integration among its units. )) |
| In the vertical structure of a firm, authority is the((legitimate right of a manager to make decisions and to tell other people what to do.)) |
| __________ is a structure authority directly related to the three broad levels of the organizational pyramid.((Hierarchy )) |
| In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to((reduce the number of hierarchical layers.)) |
| In a vertical structure, narrow spans of control build a(n) __________ organization with many reporting levels.((tall)) |
| In the context of the vertical structure of a firm, a wide span of control builds a __________ organization with few reporting levels.((flat)) |
| The span of control should be wide when((jobs are similar, and performance measures are comparable.)) |
| In __________, new or additional responsibilities to a subordinate are assigned.((delegation)) |
| An employee who has __________ is supposed to carry out specified tasks.((responsibility )) |
| __________ is the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance.((Accountability)) |
| Which statement about delegation of responsibility and authority is correct?((It can occur between any two individuals in any type of structure with regard to any task.)) |
| In order for delegated tasks to be done, a manager must also ensure the individual can draw on the necessary resources and make decisions to complete the work. In other words, the manager also delegates((authority.)) |
| Marcus, a human resource intern, was given an assignment by his manager that meant he must obtain information from other departments to complete it, but some departments refused to share information with an intern. Marcus was frustrated because he did not have the power to get the information he needed. In the context of this situation, Marcus’ manager made the mistake of((assigning responsibility without delegating adequate authority.)) |
| In the context of delegation, a common problem faced by a subordinate in carrying out a delegated task is((being given more responsibility than authority.)) |
| An advantage of delegation is that it((conserves managers' most valuable asset—their time.)) |
| The first step in the delegation process, defining the goal, requires a manager to((clearly understand the outcome he or she wants.)) |
| Which statement is accurate about effective delegation?((Throughout the delegation process, the manager and the subordinate must work together.)) |
| In a(n) __________ organization, important decisions usually are made at the top.((centralized)) |
| Janelle recently accepted a job with a reputed bank as an internal auditor. Her new company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Janelle’s organization has a((high degree of centralization.)) |
| In __________ organizations, more decisions are made at lower levels of management.((decentralized)) |
| During tough times, senior managers often take charge within the organization. During times of rapid growth, decisions are often((pushed to lower levels.)) |
| In a centralized organization, __________ make all the important decisions.((top managers)) |
| Jonas does not want a management position. He is highly respected by clients, competitors, and coworkers, due to his expertise, experience, and personal qualities. When a major business decision is required, even the division manager above Jonas in the hierarchy asks his opinion. Even though Jonas has no formal management authority, he has __________ authority.((informal)) |
| The __________, led by the chairperson, makes major decisions, subject to corporate charter and bylaw provisions.((board of directors)) |
| After a different vice president is assigned to head the division for the second time in five years, Maria’s job as a middle manager does not really change. She carries out the same tasks, attends the same meetings, and sends in the same reports to the new vice president as she always does. What can be accurately determined about this organization?((Authority resides in the position, not the people.)) |
| Howard wanted to delegate an important task to a subordinate, and he had several candidates in mind. He decided to delegate the task to Arjun, who is not only capable but who also offers the advantage of((benefiting from developing skills through assuming additional responsibility.)) |
| In decentralized organizations, decision making occurs at the level of the people who are most directly __________ and have the most __________ about the problem.((affected; intimate knowledge)) |
| In the context of horizontal structure of a firm, __________ are those that have responsibility for the principal activities of the firm.((line departments)) |
| In a horizontal structure, __________ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.((line departments)) |
| Subdividing an organization into smaller units in a horizontal structure is((departmentalization.)) |
| In a __________ organization, jobs (and departments) are specialized and grouped as production, marketing, human resources, research and development, finance, accounting, and so forth based on the skills they require.((functional)) |
| An advantage of functional departmentalization is that((economies of scale can be realized.)) |
| Exceptional Performance, a worldwide leader in athletic apparel products, operates divisions in North America, South America, Europe, and Asia-Pacific. Each division is managed independently and has its own line and staff departments to better align with((geographies.)) |
| A __________ organization has departmentalization that groups units around products, customers, or geographic regions.((divisional )) |
| To be effective, the __________ approach to departmentalization requires proper management of all the issues surrounding decentralization and delegation.((product)) |
| Global Gold, Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which divisional approach does the company follow?((customer)) |
| Which statement is accurate about a matrix organization?((It is composed of dual reporting relationships in which some employees report to two superiors.)) |
| A characteristic feature of matrix organizations is that((more career options become available.)) |
| A disadvantage of a matrix organization is that((reporting to two superiors can cause confusion.)) |
| A __________ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.((modular network )) |
| The CEO of Virtual Solutions decides to reorganize her firm into a(n) __________ organization. In this approach, Virtual Solutions will collaborate with other independent, mostly single-function firms to provide a desired service.((network)) |
| Greenfield Farm Equipment operates worldwide and is organized into a(n) __________ structure. Within this structure, each of the four division presidents and their respective employees are committed to the tractor, planter, combine, and silo businesses, respectively. Within these four divisions, task responsibilities are clear, and managers are more independent and accountable.((product)) |
| The unity-of-command principle states that a person should have((only one boss.)) |
| In the __________ approach to organization structure, decision making is decentralized to a level where information is processed properly and relevant knowledge is applied.((matrix)) |
| A(n) __________ is a person who assembles and coordinates participants in a network.((broker)) |
| In the horizontal structure of a firm, line departments((make things, sell things, or provide customer service.)) |
| A disadvantage of the traditional functional approach to departmentalization is that((communication between functions may fall off due to conflicts.)) |
| Which statement is accurate about a network organization?((In a network organization, managers within the organization interact closely with members outside it.)) |
| In organizational integration, __________ means establishing common routines and operating procedures that apply uniformly to everyone.((standardization)) |
| __________ refers to a situation when interdependent units create deadlines and objectives that contribute to shared goals.((Coordination by plan)) |
| The approach to __________ involves feedback and discussions to jointly figure out how to approach problems and devise solutions agreeable to everyone.((coordination by mutual adjustment )) |
| Managers can cope with high uncertainty and heavy information demands by reducing the need for information or((increasing information-processing capability.)) |
| Galaxy Corporation and Adventure Inc. often compete with one another in the marketplace. A new business area is emerging that appeals to both firms. However, organizations that will successfully compete in the new business area will need to have a robust laboratory capability as well as an established construction capability. Galaxy has the former, and Adventure has the latter. Although unusual for two competitors, they negotiate and create a(n) __________. Under the terms of this agreement, the two firms formally and jointly pursue their mutual goals.((strategic alliance)) |
| A __________ is an organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights.((learning organization )) |
| In the context of organizational agility, learning organizations are skilled at((experimenting with new approaches.)) |
| A __________ organization is one in which top management ensures that there is consensus about the direction in which the business is heading.
((high-involvement)) |
| A characteristic of a high-involvement organization is that((the organization has a flat, decentralized structure built around a customer, good, or service.)) |
| __________ is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation.((Total quality management)) |
| One of W. Edwards Deming's "14 points" of quality is to((allow autonomy and spontaneity.)) |
| __________ use(s) statistical tools to analyze the causes of product defects.((Six sigma quality)) |
| Morgan owns and manages a custom woodworking business. She and her staff of four craftspeople work informally together, and each worker tends to make decisions in an independent (decentralized) manner. Morgan’s business is a __________ operation.((small batch)) |
| In the context of technology configurations, which statement is true of large batch technologies?((Hierarchical authority is more prominent.)) |
| What characterizes firms such as International Paper that use continuous process technologies?((People are removed from the work itself.)) |
| __________ is the production of both high-volume and high-variety products at the same time.((Mass customization)) |
| __________ strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.((Lean manufacturing)) |
| Which statement is true of flexible factories?((They are organized around products, in work cells or teams.)) |
| For the lean manufacturing approach to work well,((people should be broadly trained rather than specialized.)) |
| A just-in-time philosophy strives to increase a firm’s competitive advantage based on eliminating waste and increasing((production.)) |
| Neven’s specialty pharmaceuticals packaging firm needs to be more agile in order to be competitive in the marketplace. Foregoing buying a full-service laboratory because of the investment and risk, Neven decides to form a __________ with a chemical firm in China that has a laboratory but lacks a packaging business. Each company brings a complementary capability to the other, allowing them to pursue mutual goals.((strategic alliance)) |
| __________ is a system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process as they are needed.((Just-in-time)) |
| With the impending retirements of very talented senior staff, Delia was concerned that Good Home Inc., her employer, was not planning for the future. Spurred on by her concern, Delia convinced management to budget and build a knowledge management system to create, acquire, store, and transfer knowledge in order to modify Good Home’s behavior to reflect new knowledge and insights. Two years later, Delia was proud to reflect on her success in helping the company become a(n) __________ organization.((learning)) |
| A plant manager directed his top production engineer to sign up for an upcoming statistical quality workshop. The plant manager said, "I've long been a student of total quality management. I've decided to introduce a statistical approach called __________ into our production process to analyze the causes of product defects, so that we can then eliminate those defects."((six sigma)) |
| Trish manages a factory that manufactures automotive wiring harnesses. Her customers require that their suppliers be __________ certified, so that the suppliers' products are compliant with specified voluntary quality standards—standards that are recognized worldwide.((ISO 9001)) |
| Enrique, a management intern, was tasked with investigating ways for the firm to more effectively compete on a global basis. He was intrigued to learn about __________ as a framework by which to improve quality and to gain certification in accordance with these quality standards.((ISO 9001 )) |
| Jose complained to his fellow division manager, "Our company is bogged down with cumbersome bureaucratic requirements. We must convince our executive leadership that we need to act fast to meet customer needs and to respond to other outside pressures! We need to correct past mistakes quickly and prepare for an uncertain future! We must respond to threats and capitalize on opportunities! We must place a premium on __________!"((agility )) |
| Charlotte manages a large chemical plant that manufactures a few specialty products for the roofing industry. As a __________ operation, the plant manufactures products in large volumes but with little variety. Production is not continuous but is standardized. Charlotte manages the plant in a formal and hierarchical manner, and most major decisions are made by her.((large batch)) |
| Nate told his boss, "Unless we invest in new technology, such as computer-integrated manufacturing (CIM), we will not be able to deliver more high-variety and high-volume products. With CIM, we will have computer-aided __________, so that the work of our engineers and factory workers will be more in sync."((design and manufacturing)) |
| Armand told his management team, "Our design and production process occurs in an orderly, yet slow, process, from research to engineering to manufacturing. To be more competitive, we must speed up our research and product development through the use of __________. In this manner, we will incorporate the issues and perspectives of all the functions—including suppliers and customers—from the beginning of the process."((simultaneous engineering)) |
| With the cost of warehouse space and maintaining inventory increasing, Drake has decided to change the operation of his company to a "just-in-time" (JIT) mode, whereby manufacturing is initiated only upon customer order and only in very small lots, minimizing the company's warehouse and inventory costs. However, Drake is nervous about the change because he knows that JIT offers costs savings only when the costs of storing product are greater than the costs of((frequent delivery.)) |
| The CEO for Carlson Corporation has announced to the management team that it has been decided to implement lean manufacturing at the Southside plant. The CEO stated, "I want to eliminate unnecessary steps in the production process and continually strive for __________. We must emphasize quality, speed, and flexibility."((improvement)) |
| The CEO of TruTone Manufacturing tells her executive management team that the company must become more agile to stay competitive. She says, "We have several options to improve our agility, a couple that we have already started to implement. But, most importantly, I believe that we need to organize around our primary strengths and expertise: our __________."((core capabilities)) |
| In terms of organizational agility, technology refers to the methods, processes, systems, and skills used to((transform resources into products.)) |
| Latisha has been promoted to a managerial position in Betty’s Bakery. One of her jobs is to coordinate employee vacation schedules. However, the owner of the company overrides her decisions. Consequently, her subordinates do not respect her position as a manager. Latisha has identified the problem, and it is that the((owner has not delegated enough authority to enable her to do her work.)) |
| Karl is a recently promoted manager at Good for You Foods, winning the position over his former peers. His peers do not see Karl as their supervisor; they continue to think of him and treat him as a peer. As a result, Karl must rely more on __________ to get his work done and to manage his staff.((informal influence tactics)) |
| In a five-year time period, Zeke’s organization has grown from a one-man motorcycle repair shop to a custom bike manufacturing/assembly and rebuild business employing 32 mechanics and technicians. Due to Zeke’s difficulty in delegating responsibility, he makes almost all business and design/technical decisions. As a result, he is working 80 hours per week, and the business has stopped expanding Zeke’s business is a(n) __________ organization.((centralized)) |
| Prior to going on vacation for two weeks, the division manager assembled his management team and said, "In my absence, Sophie will serve as acting division manager. I know that all of you will give Sophie your full support and complete any projects she assigns." In this situation, Sophie will gain((authority and responsibility.)) |
| As vice president of human resources at Oswald Industries, Asher enjoys working alongside his peer vice presidents, largely because they all have different skills and all manage different parts of the organization, including research, engineering, production, construction, procurement, and finance. Oswald Industries is a(n) __________ organization.((functional )) |
| After a major international expansion, the CEO of Scofield Corporation announced the new corporate structure by naming vice presidents for the newly established Far East Division, Middle East Division, European Division, and the Americas Division. Scofield Corporation's new structure follows the __________ approach to departmentalization.((geographic)) |
| Tomas meets with his group leader and says, "I’m not sure what to do. I have conflicting direction from several managers. James wants me in the field next week across town. Anya wants me in the field next week out of state. And I know that you would like me to work next week in the office." His group leader replies, "We will solve this problem through communications and prioritization. We work for a __________ organization and having dual or even more lines of command can be confusing."((matrix)) |
| Rachael works in a matrix organization, and although she found it confusing at first, she has seen the inherent opportunities. Instead of being promoted from biology head to research head, Rachael prefers a project career, with opportunities to serve in increasingly responsible and diverse project manager/project director positions. Fortunately, one of the strengths of a matrix organization is((more career choices, on both sides of organization.)) |
| In an organization, when there are many subunits and many specialists who think differently, differentiation is said to be high.((TRUE)) |
| Ten employees work under the supervision of Eddie, the manager of Elegant Day Salon. Eddie reports directly to the owner; therefore, in the context of span of control, Elegant Day Salon is a flat organization.((TRUE)) |
| Although she has an accounting degree, Dallas works as a recruiter in the human resources department of a major accounting firm. Dallas works for a line department.((FALSE)) |
| In general, coordination methods within an organization include standardization, plans, and mutual adjustment.((TRUE)) |
| Coordination by plan deals with establishing common routines and procedures that apply uniformly to everyone.((FALSE)) |
| Sometimes, competitors create strategic alliances.((TRUE)) |
| In a high-involvement organization, top management determines and dictates the direction in which the business is heading.((FALSE)) |
