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business
foundations of business

Questions and Answers of Foundations of Business

Use Internet search engines to find more information about each of these topics.Improvements in the quality of products and services is an ever-popular theme in business management. Besides the
What form of plant layout does Washburn appear to employ in the manufacture of its guitars?Washburn Guitars produces a wide variety of acoustic and electric guitars, selling about 50,000 instruments
How would you describe Dan Donegan’s role in the production process that produced his signature guitar?Washburn Guitars produces a wide variety of acoustic and electric guitars, selling about
Using the concepts of focus, magnitude of change, and number of production processes, discuss Washburn’s manufacturing conversion process.Washburn Guitars produces a wide variety of acoustic and
The American economy is now characterized as a(n) __________ economy.a. civilizedb. stagnantc. serviced. bureaucratice. industrialized
If a good or service satisfies a human need, it hasa. form.b. value.c. focusd. magnitudee. utility.
Procter & Gamble uses __________ production to produce household products.a. efficient orderb. demandc. supply orderd. masse. effective
The process of acquiring materials, supplies, components, and parts from other firms is known asa. acquisition.b. planning.c. purchasing.d. inventory requisition.e. materials requirements planning.
A __________ manufacturing system combines robotics and computer-integrated manufacturing in a single-production system.a. continuousb. analyticc. syntheticd. flexiblee. automation
A common planning horizon for production activities isa. one day.b. a week.c. a month.d. six months.e. one year.
Two important components of scheduling area. lead time and planning.b. designing and arranging.c. monitoring and controlling.d. place and time.e. logistics and flow.
The goal of basic research is toa. uncover new knowledge without regard for its potential use.b. discover new knowledge with regard for potential use in development.c. discover knowledge for
Services differ from the production of manufactured goods in all ways except that servicesa. are consumed immediately and cannot be stored.b. aren’t as important as manufactured products to the
One worker in Department A produces forty-five units of work per day on a computer, whereas a coworker produces only forty units of work per day on a computer. Since the first worker produces more
T F Labor-intensive technology is accompanied by low initial costs and high operating costs.
T F For a food-processing plant such as Kraft Foods, capacity refers to the number of employees working on an assembly line.
T F The purpose of research and development is to identify new ideas that have the potential to result in new goods and services.
T F Work-in-process inventories are raw materials and supplies waiting to be processed.
T F When work stations are arranged to match the sequence of operations, a process layout is being used.
T F A synthetic process combines raw materials or components to create a finished product.
T F A purchasing agent need not worry about a tiny difference in price when a large quantity is being bought.
T F Operations management is the process of creating a set of specifications from which the product can be produced.
T F The rise-and-decline pattern of sales for an existing product is called the product life cycle.
T F Capacity is the degree to which input resources are physically changed by the conversion process.
_________ The time period during which an operational plan will be in effect.a. analytical processb. capital-intensive technologyc. product lined. computer-aided designe. design planningf. form
_________ Computers are the main tool used in the development of products.
_________ The average level of output per worker per hour.
_________ Input from workers is used to improve the workplace.
_________ Work is accomplished mostly by equipment.
_________ A manufacturing process in which a firm’s manufacturing machines and equipment are changed to produce different products.
_________ It is created by people converting materials, finances and information into finished goods.
_________ Its focus is minimizing holding costs and potential stock-out costs.
_________ Raw materials are broken into different components.
_________ It is a plan for converting a product idea into an actual product.
How is the production of services similar to the production of manufactured goods?4 How is production of services different from the production of manufactured goods?
List all the activities in operations management.
Summarize how productivity and technology are related.
Outline how the conversion process transforms raw materials, labor, and other resources into finished products or services.
Promotion or new job• What is your likelihood for getting a promotion?• Are you ready for a change? What are you doing or willing to do to find another job?In the past, company loyalty and
Accomplishments• What achievements have you reached in your job?• What would you like to accomplish? What will it take for you to reach your goal?In the past, company loyalty and ability to
Networking• How effective are you at using a mentor?• Are you a member of a professional organization?• In which community, civic, or church groups are you participating?• Whom have you added
Skills• What are your most valuable skills?• What skills do you lack?• Describe your plan for acquiring new skills and improving your skills.In the past, company loyalty and ability to assume
Prepare a three-page report summarizing what the chart revealed about relationships and tasks at the KDS Design Center and what your team learned about the value of organization charts. Include your
After your team has drawn the organization chart, discuss the following:a. What type of organizational structure does your chart depict? Is it a bureaucratic, matrix, cluster, or network structure?
Working in a team, use the following information to draw an organization chart: The KDS Design Center works closely with two home-construction companies, Amex and Highmass. KDS’s role is to help
Describe the bases on which this firm is departmentalized.After studying the various organizational structures described in this chapter and the reasons for employing them, you may be interested in
Explore the website of any large firm that you believe is representative of its industry, and find its organization chart or a description of its organization. Create a brief organization chart from
Is Green Mountain Coffee a centralized or decentralized organization? How do you know?Even with a workforce of 600, Green Mountain Coffee Roasters, based in Waterbury, Vermont, stays as
Does Green Mountain Coffee appear to have a networked, communal, mercenary, or fragmented culture? Support your answer.Even with a workforce of 600, Green Mountain Coffee Roasters, based in
How is Green Mountain Coffee’s “constellation” of communication likely to affect the informal organization?Even with a workforce of 600, Green Mountain Coffee Roasters, based in Waterbury,
A relatively permanent committee charged with performing some recurring task is calleda. an ad hoc committee.b. a standing committee.c. a task force.d. a managerial committee.e. a permanent committee.
Many managers are reluctant to delegate. Which one of the following is not one of the reasons they are reluctant to do so?a. They want to be sure that the work gets done.b. They fear that workers
Older and larger firms that produce and sell a variety of products organize bya. location.b. process.c. customer.d. function.e. executive decisions.
Who was the first to recognize the power of specialization?a. Karl Marxb. Max Weberc. John Kenneth Galbraithd. Adam Smithe. Thomas Friedman
Many larger organizations do not maintain complete, detailed organizational charts. One of the reasons for this is thata. most organizations are not very clear about the chain of command.b.
The process of dividing work to be done by an entire organization into separate parts and assigning the parts to positions within the organization is calleda. departmentalization.b. delegation.c. job
A narrow span of control works best whena. subordinates are located close together.b. the manager has few responsibilities outside of supervision.c. little interaction is required between the manager
A supervisor assigned to Wendy, the most proficient employee in the accounting department, a project on cost control that was due in three weeks. For Wendy to be accountable for the project, what
ABC Distributors is reorganizing to better control costs. The company decided to group hospitals, schools, and churches together into one department. Which departmentalization base is the company
A committee is organized to review applications for scholarships. The group will award two scholarships to recent high school graduates.What type of committee would work best?a. Ad hoc committeeb.
T F A cluster structure is also called team or collaborative.
T F Functional authority is being practiced when staff managers exercise the authority to make decisions and issue directives.
T F The span of management should be wide when a great deal of interaction is required between the supervisor and worker.
T F Ad hoc committees can be used effectively to review a firm’s employee benefits plan.
T F Line positions support staff positions in decision making.
T F The power to make decisions is granted through authority.
T F Many firms find that by using matrix organization, the motivation level is lowered, and personal growth of employees is limited.
T F Accountability is created, not delegated.
T F Job rotation involves assigning an employee more tasks and greater control.
T F A benefit of specialization is improved efficiency and increased productivity.
_____________ An informal communications network.a. authorityb. matrix structurec. bureaucratic structured. chain of commande. delegationf. departmentalization g. grapevine h. cross-functional team
_____________ One who works within a firm to develop ideas.
_____________ The power to do an assigned task.
_____________ The duty to do a job or perform a task.
_____________ The process of giving authority to subordinates.
_____________ The process of grouping similar things together.
_____________ Line and staff positions are clearly defined.
_____________ It investigates problems.
_____________ The line of authority from highest to lowest levels.
_____________ Two or more people working toward a common goal.
What are problems associated with each one?
Describe the two spans of control.
What are the common reasons for line-staff conflict?
Compare and contrast line and staff positions.
Give an example of each form.
Describe the four forms of organizational structure.
How do informal organizational structures differ from formal ones?
How do intrapreneurship, committees, and managerial hierarchy influence the organization of a firm?
Identify and describe the five steps for organizing a business.
Give an example of each.
What are the four most common bases for departmentalization?
Differentiate decentralized organization and centralized organization.
Summarize the use of corporate culture, intrapreneurship, committees, coordination techniques, informal groups, and the grapevine.
Describe the four basic forms of organizational structure: bureaucratic, matrix, cluster, and network.
Understand how the chain of command is established by using line and staff management.
Understand how the span of management describes an organization.
Explain how decentralization follows from delegation.
Understand what an organization is and identify its characteristics.
Write a one-page report on what you learned about developing mission statements.Over the past few years, an increasing number of employees, stockholders, and customers have been demanding to know
Discuss your mission statement with other teams. How did the other teams interpret the purpose of your company?What is the mission statement saying about the company?Over the past few years, an

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