Question 1

Explain the advantages and disadvantages of using a group to make decisions.

Accepted Answer

Things can go wrong when group...

Question 2

Leaders of decision-making groups who want to encourage constructive conflict should

Accepted Answer

A)   discourage constructive conflict among the group members.
B)   encourage groupthink to speed up decision making.
C)   reach a decision by employing the satisficing method.
D)   encourage multiple alternatives from a variety of perspectives.
E)   discourage exploring new alternatives in order to reach a conclusion faster.

Question 3

Which of the following steps in the formal planning process involves studying past events, examining current conditions, and forecasting future trends?

Accepted Answer

A)   Analyzing the situation
B)   Generating alternative goals and plans
C)   Evaluating goals and plans
D)   Selecting goals and plans
E)   Monitoring and controlling performance

Question 4

______ is the phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.

Accepted Answer

A)   Goal displacement
B)   Domination
C)   Intuition
D)   Groupthink
E)   Brainstorming

Question 5

In the context of the given scenario, which of the following is an opportunity for Raney Pharmaceuticals Corp.?

Accepted Answer

A)   New regulations have been passed limiting their ability to sell certain formulations over the counter.
B)   As compared to their competitors, their management team is by far the best in the industry.
C)   The company has inadequate financial resources to invest in their operations.
D)   They have fallen behind in research and development in the last few years.
E)   More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade.

Question 6

Managers usually face novel and unstructured problems, leaving them uncertain about how to proceed.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following corporate strategies does Bella advocate?

Accepted Answer

A)   concentration
B)   vertical integration
C)   related diversification
D)   unrelated diversification
E)   price skimming

Question 8

The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves

Accepted Answer

A)   assessing organizational capabilities.
B)   developing an implementation agenda.
C)   defining strategic tasks.
D)   creating an implementation plan.
E)   developing a mission statement.

Question 9

In the context of the planning process, implementation of selected plans will be most successful when

Accepted Answer

A)   only senior managers participate in the planning process.
B)   limited financial resources are made available to the manager.
C)   they are linked to other organizational systems like budgets and rewards.
D)   they are converted into strict rules for employees to follow.
E)   they are projected as confidential issues concerning the top management.

Question 10

In the context of a SWOT analysis, describe at least five elements of an environmental analysis.

Accepted Answer

The environmental an...

Question 11

The goal of _________ is to thoroughly understand the "best practices" of other firms and to undertake actions to achieve better performance and lower costs.

Accepted Answer

A)   satisficing
B)   benchmarking
C)   organizing
D)   competition
E)   SWOT analysis

Question 12

In an organization, the process of planning moves in a linear fashion.

Accepted Answer

A) True 
 B)False

Question 13

The psychological bias known as illusion of control refers to

Accepted Answer

A)   a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.
B)   a belief that one can influence events even when one has no influence over what will happen.
C)   a bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.
D)   a condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.
E)   a phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.

Question 14

The outcome of a situational analysis is the

Accepted Answer

A)   evaluation of the merits and feasibility of a range of alternatives.
B)   prioritization and elimination of goals.
C)   identification and diagnosis of planning assumptions, issues, and problems.
D)   selection of the most appropriate and feasible alternative among various goals.
E)   proper implementation of a plan.

Question 15

Which of the following corporate strategies does Justin advocate?

Accepted Answer

A)   concentration
B)   vertical integration
C)   related diversification
D)   unrelated diversification
E)   price skimming

Question 16

A formal decision-making process has six stages. Which of the following is one of these stages?

Accepted Answer

A)   thriving on the risks of taking a decision
B)   minimizing the consequences of a decision
C)   anticipating the outcome of a decision
D)   evaluating the decision
E)   controlling the damage caused by a wrong decision

Question 17

In the context of the planning process, which of the following statements is true of the step that involves monitoring and controlling performance?

Accepted Answer

A)   It identifies the priorities and trade-offs among the goals and plans.
B)   Managers must continually monitor the performance of their work units against the unit's goals and plans.
C)   It is the first step taken by managers in the planning process.
D)   Managers need to restart the planning process after plans are implemented improperly.
E)   Managers consider monitoring and controlling performance as the most important step in the planning process.

Question 18

Decision 1 is a _____ decision because it can be solved using rules and procedures.

Accepted Answer

A)   tactical
B)   strategic
C)   programmed
D)   nonprogrammed
E)   risky

Question 19

Explain how managers make decisions under time pressure that are timely and of high quality.

Accepted Answer

Decisions can focus on real-time informa...

Question 20

All of the following are considered stakeholders expect those groups and individuals

Accepted Answer

A)   who have only a financial stake in the company.
B)   who affect achievement.
C)   who are buyers and suppliers.
D)   who are unions and employee groups.
E)   who are affected by the organization's mission.

Exam 5: Planning and Decision Making

Managers usually face novel and unstructured problems, leaving them uncertain about how to proceed.

Correct AnswerverifiedShow Answer

The psychological bias known as illusion of control refers to

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The goal of _________ is to thoroughly understand the "best practices" of other firms and to undertake actions to achieve better performance and lower costs.

Correct AnswerverifiedShow Answer

Explain how managers make decisions under time pressure that are timely and of high quality.

Correct AnswerverifiedDecisions can focus on real-time informa...View AnswerShow Answer

Explain the advantages and disadvantages of using a group to make decisions.

Correct AnswerverifiedThings can go wrong when group...View AnswerShow Answer

A formal decision-making process has six stages. Which of the following is one of these stages?

Correct AnswerverifiedShow Answer

Decision 1 is a _____ decision because it can be solved using rules and procedures.

Correct AnswerverifiedShow Answer

Which of the following steps in the formal planning process involves studying past events, examining current conditions, and forecasting future trends?

Correct AnswerverifiedShow Answer

______ is the phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.

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In the context of the planning process, implementation of selected plans will be most successful when

Correct AnswerverifiedShow Answer

Leaders of decision-making groups who want to encourage constructive conflict should

Correct AnswerverifiedShow Answer

In the context of a SWOT analysis, describe at least five elements of an environmental analysis.

Correct AnswerverifiedThe environmental an...View AnswerShow Answer

The outcome of a situational analysis is the

Correct AnswerverifiedShow Answer

In the context of the planning process, which of the following statements is true of the step that involves monitoring and controlling performance?

Correct AnswerverifiedShow Answer

The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves

Correct AnswerverifiedShow Answer

In the context of the given scenario, which of the following is an opportunity for Raney Pharmaceuticals Corp.?

Correct AnswerverifiedShow Answer

All of the following are considered stakeholders expect those groups and individuals

Correct AnswerverifiedShow Answer

In an organization, the process of planning moves in a linear fashion.

Correct AnswerverifiedShow Answer

Which of the following corporate strategies does Bella advocate?

Correct AnswerverifiedShow Answer

Which of the following corporate strategies does Justin advocate?

Correct AnswerverifiedShow Answer

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Decisions can focus on real-time informa...
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Things can go wrong when group...
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The environmental an...
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