quiz 5

[wenkai tong]

• Question 1
0.5 out of 0.5 points

Which of the following is one of the six steps in the rational
decision-making process?
Answer

Selected Answer:
weight the criteria
Correct Answer:
weight the criteria

• Question 2
0.5 out of 0.5 points

A(n) ____ is a standing plan that indicates the general course of
action that should be taken in response to a particular event or
situation.
Answer

Selected Answer:
policy
Correct Answer:
policy

• Question 3
0.5 out of 0.5 points

Which of the following is the most specific type of standing plan?
Answer

Selected Answer:
rules and regulations
Correct Answer:
rules and regulations
Response Feedback: Rules and regulations are defined as standing
plans that describe how a particular action should be performed or
what must happen or not happen in response to a particular event.
Rules and regulations are more specific than procedures because they
precisely define what must happen (and not happen) in response to a
particular event.

• Question 4
0.5 out of 0.5 points

Neither Chile nor Peru has a mass-market café culture, but that fact
has not stopped Starbucks from engaging in ____ to determine how best
to expand into those markets.
Answer

Selected Answer:
decision making
Correct Answer:
decision making
Response Feedback: Decision making is the process of choosing a
solution from available alternatives.

• Question 5
0.5 out of 0.5 points

The ____ is a decision-making method in which a panel of experts
responds to questions and to each other until an agreement is reached
on how a specific issue should be handled.
Answer

Selected Answer:
Delphi technique
Correct Answer:
Delphi technique

• Question 6
0.5 out of 0.5 points

Which of the following is NOT one of the characteristics of
S.M.A.R.T. goals?
Answer

Selected Answer:
Synergistic
Correct Answer:
Synergistic
Response Feedback: S.M.A.R.T. goals should be: (1) Specific, (2)
Measurable, (3) Attainable, (4) Realistic, and (5) Timely.

• Question 7
0.5 out of 0.5 points

One of the benefits of planning is how it ____.
Answer

Selected Answer:
does none of these
Correct Answer:
does none of these
Response Feedback: Section 1 of the chapter offers four benefits from
planning: (1) intensified work effort, (2) increased persistence
toward goals, (3) direction, and (4) creation of task strategies that
lead to stronger performance.

• Question 8
0.5 out of 0.5 points

Which of the following is an accepted method for tracking progress
toward goal achievement?
Answer

Selected Answer:
gathering and providing performance feedback
Correct Answer:
gathering and providing performance feedback
Response Feedback: Providing feedback is identified as one of two
major approaches to tracking progress toward goal attainment. The
other is setting proximal and distal goals.

• Question 9
0.5 out of 0.5 points

In the 1960s, Coca-Cola executives in Atlanta learned there was a
bottler in the Colombian jungle that was bottling pirated Coke in
dumped bottles. Since the soft drink company was at that time
expanding globally and building its reputation on exacting production
standards, it recognized this unauthorized bottler as a(n) ____.
Answer

Selected Answer:
problem
Correct Answer:
problem
Response Feedback: A problem exists when there is a gap between a
desired state (what managers want) and an existing state (the
situation that the managers are facing).

• Question 10
0.5 out of 0.5 points

The ____ is a type of operational plan that saves managers time
because it is created once and then used repeatedly to handle
frequently recurring events.
Answer

Selected Answer:
standing plan
Correct Answer:
standing plan
Response Feedback: Standing plans are used repeatedly to handle
frequently recurring events.

• Question 11
0.5 out of 0.5 points

Krispy Kreme
Krispy Kreme is a relatively small doughnut seller. It has only 295
stores while Dunkin Donuts has over 3,600 outlets in the United States
and Canada. In spite of its size, Krispy Kreme has been described by
many as “the hottest brand in America.” The company’s success in an
environment which has made success difficult for many food operations
is due in large part to the long-term vision of its top management and
its establishment and achievement of S.M.A.R.T. goals. The company
originated in Winston-Salem, North Carolina, in the mid-1930s when
Vernon Rudolph bought a secret recipe for yeast doughnuts from a
French pastry cook. Rudolph ran the company until he died in 1973
without naming a successor, which caused the company problems for the
next decade.

Refer to Krispy Kreme. How does Krispy Kreme benefit from planning?
Answer

Selected Answer:
Planning gives direction to managers and employees.
Correct Answer:
Planning gives direction to managers and employees.
Response Feedback: Section 1 of the chapter offers four benefits from
planning: (1) intensified work effort, (2) increased persistence
toward goals, (3) direction, and (4) creation of task strategies that
lead to stronger performance.

• Question 12
0.5 out of 0.5 points

In case of a fire, most organizations have a series of actions that
must take place beginning with notifying the fire department and
include evacuating buildings. What kind of a standing plan is
described in this example?
Answer

Selected Answer:
procedures
Correct Answer:
procedures
Response Feedback: Procedures are defined as a standing plan
indicating the specific steps that should be taken in response to a
particular event. Here the company has established procedures to be
used in the event of a fire.

• Question 13
0.5 out of 0.5 points

When done correctly, management by objectives (MBO) is an extremely
effective method for ____.
Answer

Selected Answer:
tactical planning
Correct Answer:
tactical planning
Response Feedback: MBO is defined as a four-step process in which
managers and employees (1) discuss and (2) select goals, (3) develop
tactical plans, and (4) meet regularly to review progress toward goal
accomplishment. MBO focuses on shorter-term tactical planning.

• Question 14
0.5 out of 0.5 points

When Coca-Cola discovered it had an unauthorized bottler selling
Coke in the Colombian jungle, it used the rational decision making
process to find a solution. What do you know about the stage in which
Coke evaluated its possible courses of action?
Answer

Selected Answer:
Coke found this stage to be the most time-consuming of all the stages.
Correct Answer:
Coke found this stage to be the most time-consuming of all the stages.

• Question 15
0.5 out of 0.5 points

____ planning keeps options open by making small, simultaneous
investments in many alternative plans.
Answer

Selected Answer:
Options-based
Correct Answer:
Options-based

• Question 16
0.5 out of 0.5 points

Which of the following steps in the decision-making process can be
done better by groups than by individuals?
Answer

Selected Answer:
defining the problem and generating alternatives
Correct Answer:
defining the problem and generating alternatives

• Question 17
0 out of 0.5 points

D.G. Yuengling & Son
With beer sales dropping around the world, you should be ecstatic
that sales of Yuengling (pronounced Ying-Ling) beer are up 225 percent
in the last six years. But as you walk through the caves and tunnels
of Yuengling’s Eagle Brewery, carved into Sharp Mountain in 1831 to
maintain a perfect 50-degree temperature for storing beer, you see not
only the history of America’s oldest brewery everywhere you turn, but
also chipped paint, rusting pipes, and an aging plant that can’t keep
up with the growing demand for Yuengling beer. So far, thanks to hard
work, dedicated workers, and some luck, you’ve doubled your production
capacity from 250,000 to 500,000 barrels of beer a year, but if you
push for more, the old brewery will break.
Yet with sales up so dramatically, the company faces a problem.
Says CEO and owner Dick Yuengling, “We are sold out of beer. We run
the risk of losing our customer base because we don’t have any product
on the shelves.” Shortages are so bad that the advertising
budget has been cut from $3 to $2 a barrel. Yuengling explains, “You
can’t fuel the fire when we can’t get them beer anyway.” With
production stuck at 500,000 barrels a year, Yuengling beer has become
harder to find even as it has become more popular. Sales
representative Diane Adams said, “It was a little hairy. People were
up in arms.” So, rather than sacrifice sales in its home market of
Pennsylvania, where Yuengling has its largest market share (10
percent), the company has temporarily stopped shipping beer to
distributors in Maine, Massachusetts, and Rhode Island. Since that
strategy won’t help Yuengling grow outside Pennsylvania, you still
face the question of how to permanently increase beer production to
meet the growing demand.
You’ve identified five options. The first is to add new storage
and finishing tanks to Eagle Brewery to increase production capacity
by 10 percent to 550,000 barrels a year. Though doable, this is only a
short-term solution. Second, you could outsource production to another
company. This would be more cost-effective, but would Yuengling beer
produced in non-Yuengling factories taste different? For a specialty
beer, this could be a substantial risk. Still, outsourcing would be
affordable, and Yuengling has done it before, outsourcing production
of its Black and Tan beer to Pabst Blue Ribbon’s brewery in Lehigh,
Pennsylvania, until Pabst closed that facility four years ago. The
third option is to buy another brewery, but there aren’t many for sale
and those that are would be expensive and require significant
upgrades. For example, it would cost $13 million to buy and $5 million
to fix Stroh’s 1.5 million-barrel brewery in Tampa, Florida, which is
far from Yuengling’s northeastern markets.
A fourth option is to build a new factory capable of producing
1.2 million barrels per year, but that would cost $50 million and take
three years. The fifth and final option is simply to do nothing. The
company is already very profitable, has low overhead costs, and is
very efficient. In other words, by doing nothing the company could
still make a lot of money without incurring the risks inherent in the
other options. And risk is a real consideration because everyone in
the company remembers that Yuengling was losing money just a few years
ago.

Refer to Yuengling. Yuengling's objective to pay off its loan for a
new $50 million brewery within five years was an example of a ____
goal.
Answer

Selected Answer:
proximal
Correct Answer:
distal

• Question 18
0.5 out of 0.5 points

One of the benefits of planning is how it ____.
Answer

Selected Answer:
encourages people to work harder for extended periods
Correct Answer:
encourages people to work harder for extended periods
Response Feedback: Section 1 of the chapter offers four benefits from
planning: (1) intensified work effort, (2) increased persistence
toward goals, (3) direction, and (4) creation of task strategies that
lead to stronger performance.

• Question 19
0.5 out of 0.5 points

____ can help organizations to maintain flexibility as they plan.
Answer

Selected Answer:
Options-based planning
Correct Answer:
Options-based planning
Response Feedback: Options-based planning is a major approach to
planning which provides greater strategic flexibility.

• Question 20
0.5 out of 0.5 points

The basic purpose of ____ planning is to leave commitments open by
maintaining slack resources.
Answer

Selected Answer:
options-based planning
Correct Answer:
options-based planning

Thursday, July 28, 2011 9:13:19 AM EDT
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