16. Marla's Basement is a small retail store that specializes in antique figurines and decorative knickknacks. In analyzing the environment, Marla has uncovered the following interesting findings:

Marla has recently purchased more inventory than in the past. The people from whom she buys are selling off more knickknacks because their children are not interested in this type of decorative items and they would prefer to liquidate unnecessary household items to help them with their daily expenses.

Marla discovered that her business is in a historical preservation district. As she considers remodeling the shop, she realized that she must pay attention to the guidelines set forth in the governing laws.

Marla's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern decor, so the customer base to which she sells is shrinking.

Marla has been told that she should consider selling her inventory via the Internet, but she does not own (or understand how to use) a computer.

In reading a survey of regional business, Marla discovered that there are no other antique knickknack stores within 200 miles.

Findings about changing customer preferences and others who sell antique knickknacks are associated with the

barriers to entry in Marla's competitive environment.

amount of rivalry in Marla's internal environment.

macroenvironmental political trends.

macroenvironmental economic trends.

competitive environment as described by Porter.

17. A global cosmetics company called Nature's Beauty is considering its corporate strategy. Several members of its board of directors believe they have the "perfect" strategy for the company. Bill believes that the best option is for Nature's Beauty to stay on its current track of offering only organic cosmetics to customers who like organic products. Chita wants the company to expand by purchasing the manufacturing plants that produce the Nature's Beauty products. Another director, Manuel, wants to build the company by adding related products, such as skin care and perfume, to be sold alongside its current products. Finally, the original owner of the company, Nuri, wants to expand the company by doing something completely new, such as building restaurants or perhaps starting an entertainment park.

Which of the following corporate strategies is Nuri advocating?

conglomerate diversification

differentiation

concentric diversification

vertical integration

concentration

18.

Which of the following is true about using forecasts?

The accuracy of forecasts does not vary from one application to another.

The more complex the forecast, the more accurate are the predictions.

Forecasts are useless when the future will look radically different from the past.

Forecasts become more accurate when predicting further into the future.

Forecast accuracy decreases the farther into the future you are trying to predict.

19. People in the preconventional stage of Kohlberg's model of cognitive moral development base their decisions on

religious or philosophical teachings.

rewards and punishment.

laws and regulations.

self-chosen ethical principles.

expectations held by groups or institutions.

20. Strategic goals should

reflect the varied views of the organization's stakeholders.

be accessible to everyone who comes in contact with the organization.

be based on the tactical plans formulated by the organization.

be written in such a way that focuses on the roles of suppliers and customers.

focus on specifying and clarifying the organization's core capabilities.

21. The process of sharing power with employees is called

power building.

vertical synergy.

benchmarking.

downgrading.

empowerment.

22.

The CEO said, "Our focus this year will be on assembling the best team we can find to achieve our goals." The CEO is describing the management function of

decision making.

controlling.

leading.

planning.

organizing.

23. Which of the following is one of the four fundamental traditional management functions?

innovating

distributing

outsourcing

contracting

planning

24. For her job, Charmaine is expected to look ahead at the company's future and devise strategies for the company's long-term success and growth. Judging from this description, Charmaine is a ________blank manager.

operational

tactical

middle

frontline

top-level

25. Which of the following should be considered when deciding to offshore, based on expected, versus realized, offshoring outcomes?

It has reversed the trend of increased automation.

It helps reduce wage stagnation of workers in the home country.

Wages in the foreign countries rise, reducing the expected cost savings.

Energy costs for the company rise, increasing the benefits of offshoring.

Companies that use offshoring find that their travel costs decrease.

26. Which of the following is an example of collaboration across boundaries?

Gregory devises a standard form for company employees to use for service requests after conducting research about what other companies are using.

Mei stays late to stuff an important mailing in envelopes because her boss, an executive, needs the mailing to go out in the next morning's mail.

Veronika works in operations and is designing the new assembly line layout. She asks the procurement department which boxes would be most cost effective to use for shipping before she makes her decision about the shipping station design.

Jamal and Ursula are team members working on an ad campaign. Jamal suggests they include another team member to get their insights.

Allie, a bookkeeper, has an idea for keeping more efficient records of outstanding invoices, and she clears the idea with her accounting manager before implementation.

27.

High Tech Electronics, a manufacturing company, is based in Texas. The company operates a subsidiary in Ireland, marketing products that are customized to appeal to the European Union countries. In this case, High Tech Electronics is following the ________blank model.

global

contingency

multinational

international

domestic

28. Real-time information is information that

is discounted for the future.

is based on adjusted predictions.

focuses on futuristic forecasts.

is based only on past performance.

is obtained with little or no delay.

29.

Randall, senior product development manager at WasteTech Corporation, is considering the acquisition of a new waste treatment technology from a small development firm. The asking price is $10 million. However, the environmental uncertainty of the waste treatment marketplace is both complex and dynamic. Randall wants to acquire the new technology but seeks to manage the risk associated with his decision, or "hedge his bets." Key elements of his risk management strategy might be to

buffer, smooth, and empower in order to manage the technology supply chain.

decide upon a clan (collaborate), adhocracy (create), hierarchy (control), or market (compete) culture from which to market the technology.

establish visible artifacts; develop symbols, rites, and ceremonies; and develop stories about the technology.

diversify, merge, divest, prospect, or defend the technology.

gain competitive intelligence through environmental scanning, develop business scenarios, forecast sales, and benchmark the technology.

30.

The Happy Egg Company, one of the largest producers of free-range eggs in the United Kingdom, seeks to put the welfare of their hens first. The company claims to operate above established free-range egg production standards and laws. By raising their hens in this manner, Happy Eggs is assuming the ________blankresponsibilities of business.

philanthropic

ethical

moral

economic

legal