Chapter 1-3

A
An organization that achieves its goals but at a very high cost would be
considered efficient but not very effective.
False
As part of the control function a CEO defines goals, establishes an overall
strategy for achieving those goals, and develops plans to integrate and
coordinate activities.
False
A finance manager who reviews reports and reads Canadian Business on a
regular basis is performing the role of monitor.
True
According to the textbook, the goal of efficiency is to minimize resources
costs.
True
According to Mintzberg's management roles, the informational role
involves receiving, collecting, and disseminating information.
True
According to Mintzberg’s. the roles of disseminator and figurehead are
more important at lower levels of the organization, while the role of leader
is most important for top managers.
False
According to Mintzberg, the roles of figurehead, leader, and liaison are all
interpersonal roles.
True
All three of Mintzberg’s interpersonal roles are part of the leading
function.
True
A distinct purpose is important in defining an organization.
True
A command economy is one in which resources are primarily owned and
controlled by the private sector.
Ans: False
A manager's role in the omnipotent view of management is to create
meaning out of randomness, confusion, and ambiguity.
Ans: False

1
A company's business model focuses on two things: (1) whether customers
will value what the company is providing and (2) whether the company
can make any money doing that.
True
According to Porter's competitive strategies framework, the cost
leadership strategy would result in the best quality product at a justifiable
cost.
False
A stability strategy may be appropriate in industries where there is rapid
and dramatic change, as well as industries facing slow- or no-growth
opportunities.
True
According to Porter's competitive strategies framework, a company using
a focus strategy seeks to offer a unique product to a broad target market
by focusing on a specific product attribute such as exceptionally high
quality or extraordinary service.
False
A trucking company that grows by purchasing a chain of gasoline stations
is engaged in horizontal integration.
False
A well-designed goal should be written in terms of actions rather than
outcomes.
False
An MBO program consists of four elements: general goals, participative
decision making, a flexible time period, and performance feedback.
False
Activities that an organization does well or any unique resources that it
has are called assets.
False

B
By decentralizing management authority to the local country, the
transnational corporation reflects an ethnocentric attitude.
Ans: False
"Born globals" are companies that choose to go global from inception;
they commit resources up front (material, people, financing) to doing
business in more than one country.
Ans: True

2
C
Corporate-level strategies reflect the direction the organization is going
and the roles that each business unit in the organization will play in
pursuing that direction.
True
Concentration and diversification are two types of retrenchment
strategies.
False
D
Determining who reports to whom is part of the planning function.
False
Disturbance handler is one of Mintzberg's interpersonal roles.
False
Disturbance handler is one of Mintzberg’s international roles.
False
Directing and motivating are part of the organization function.
False
Demographic conditions are part of the organization's general
environment.
Ans: True
Directional plans have clearly defined objectives that guide employees on
a daily basis.
False
Developing a plan to integrate two companies after a corporate merger is
an example of a single-use plan.
True
E
Efficiency is often referred to as “doing things right”.
True
Effectiveness refers to getting the most amount of outputs from the least
amount of inputs.
False
Economic conditions are part of the organization's specific environment.
Ans: False

3
Exceptional or unique organizational skills are known as core capabilities.
False
F
Katz found that managers needed three essential skills: technical, human,
and conceptual.
True
Fayol’s management functions and Mintzberg’s management roles are
basically the same.
False
G
Global sourcing called global outsourcing refers to the practice of
purchasing materials or labour from around the world wherever it is
cheapest.
Ans: True
H
Human skills become less important as a manager moves into top
management.
False
Human skills are equally important at all levels of management.
True
I
In order to be considered a manager, an individual must coordinate the
work of others.
True
In the omnipotent view of management, much of an organization's success
or failure is due to forces outside management's control.
Ans: False
Importing is an approach to going global that involves making products at
home and selling them overseas.
Ans: False
If an organization subscribes to the symbolic view of management, it is
unreasonable to expect managers to have a significant effect on the
organization's performance.
Ans: True

4
In the symbolic view of management, managers are seen as directly
responsible for an organization's success or failure.
Ans: False

In a typical MBO program, successful achievement of objectives is

reinforced by performance-based rewards.
True
In MBO, performance goals are often general rather than specific, giving
managers and employees more flexibility to respond to changing
conditions.
False
Informal planning involves specific goals that cover only a short period of
time.
False
In horizontal integration, the organization attempts to gain control of its
inputs by becoming its own supplier.
False
J
Jim was born and raised in a country with a long-term orientation. In his
culture, leisure time is highly valued because it is a vital part of the long-
term health plan for the individual.
False
K
Katz found that managers needed three essential skills: technical, human,
and conceptual.
True
M
Manager of government- owned Crown corporation are not considered civil
servants.
True
Managers who work in not-for-profit organizations are called civil servants
False
Middle managers coordinate the work of non-managerial employees who
directly involved with the production or creation of the organization’s
products.
False
Multinational corporations became commonplace in the mid-1960s.

5
Ans: True
Multidomestic corporations use one strategy for all global operations
based on the different domestic influences that are present in the firm's
original home market.
Ans: False
Mercosur is a trading alliance between 10 southeast Asian nations.
Ans: False
N
NAFTA has strengthened the economic power of all three member
countries.
Ans: True
O
Only when a country's legal-political environment is unstable or
revolutionary is it of concern to managers.
Ans: False
Operational plans specify the details of how the overall goals are to be
achieved.
True
Operational planning is usually performed by upper-level management.
False
P
Plan managers are regional managers are considered middle managers
whereas foremen are usually considered first-line managers.
True
Power distance refers to the degree to which a society encourages people
to be tough, confrontational, assertive, and competitive.
Ans: False
People in a society that is high in uncertainty avoidance don't feel
threatened by uncertainty and experience low levels of anxiety, stress,
and aggressiveness.
Ans: True
Planning helps a company reduce duplication, overlapping and other
wasteful activities.
True
Planning is the function that enables managers to establish goals or
standards that eliminate the need for controls.

6
False
R
Resource’s allocation and negotiating are both considered decisional
roles.
True
Research indicates that organizational culture has a stronger impact on
employees than national culture.
Ans: False
S
Setting up a foreign subsidiary involves a higher degree of risk and
commitment than franchising.
Ans: True
Shareholders are defined as any constituency in the organization's
external environment that may be affected by the organization's decisions
and actions.
False
Six Sigma is a quality standard that establishes a goal of no more than 3.4
defects per thousand units or procedures.
False
Standing plans create guidance for regularly occurring activities and
events.
True
SWOT analysis includes an analysis of an organization's internal and
external environments.
True
Strategic management is the set of managerial decisions and actions that
determines the short-term performance of an organization.
False
Studies of actual MBO programs confirm that MBO increases employee
performance, but not overall organizational productivity.
False
Studies have found that the quality of the planning process and the
appropriate implementation of plans probably contribute more to high
performance than does the extent of planning.
True
T

7
To be considered a manager, an individual must work for a profit-oriented
corporation.
False
Technical skills become less important as a manager moves into higher
levels of management.
True
The three common characteristics of all organizations are distinct
purpose, remedial structure, and resources.
False
Today's new organizations tend to be more stable and job-focused than
traditional organizations.
False
Today's new organizations tend to be more flexible and customer-oriented
than traditional organizations.
True
The four contemporary functions of management are planning, organizing,
leading, and delegating.
False
The Associate Dean of Business Management is responsible for preparing
the schedule of classes at a large Canadian university. As she schedules
each instructor’s classes at specific times she is performing Mintzberg’s
role of “liaison”
False
Top manager typically have titles such as regional manager, plant manager
or division manager.
False
To be considered a manager, an individual must work for a profit-oriented
corporation.
False
Technical skills are critical in dealing with abstract and complex situation.
False
Technical skills become less important as a manager moves into higher
levels of management.
True
Typical activities for the role of spokesperson include greeting visitors and
signing legal document.
False

8
The World Trade Organization was formed in 1995 and evolved from
the Maastricht Treaty, an agreement in effect since the end of World
War II.
Ans: False
The legal-political environment is an important factor of managing in a
foreign environment.
Ans: True
The Environmental Uncertainty Matrix ranges in complexity from "stable
to dynamic" on the horizontal axis and from "simple to complex" (degree
of change) on the vertical axis.
Ans: True
The view of managers as omnipotent is consistent with the stereotypical
picture of the take-charge business executive who can overcome any
obstacle in carrying out the organization's objectives.
Ans: True
The term suppliers includes providers of financial and labour inputs.
Ans: True
The General Agreement on Tariffs and Trade (GATT) was signed in 1992 to
create the EU.
Ans: False
The European Union (EU) and the North American Free Trade Agreement
(NAFTA) have both created regional trading alliances.
Ans: True
The part of the environment that is directly relevant to achievement of an
organization's goals is the specific environment.
Ans: True
The symbolic view of management helps to explain the high turnover
among college and professional sports coaches, who are often fired and
replaced when their teams perform poorly.
Ans: False
The three original partners of NAFTA are Canada, the United States, and
Mexico.
Ans: True
The dominant view in management theory suggests that managers are
omnipotent.
Ans: True
Through the creation of the EU, each member country now has increased
border controls, nationalist policies, and protected industries.

9
Ans: False
Transnational corporations run their businesses from their home country.
Ans: False
To a national television network like the CBC, your home DVD player could
be considered a competitor.
Ans: True
The most fundamental questions about strategy address why firms, facing
the same environmental conditions, have varying levels of performance.
True
The first step in the strategic management process is analyzing the
external environment.
False
The same environment can present opportunities to one organization and
pose threats to another.
True
The basic idea behind benchmarking is that management can improve
quality by analyzing and then copying the methods of leaders in various
fields.
True
The Six Sigma approach was pioneered and developed by Dell during the
1990's.
False
U
Understanding the organization's culture is a crucial part of external
analysis.
False
W
Whereas effectiveness is concerned with the means of getting things
done, efficiency is concerned with the ends, or the attainment of
organizational goals.
False
When environmental uncertainty is high, plans should be specific but
flexible.
True
When Air Canada acquired Canadian Airlines International, it was pursuing
a strategy of growth by vertical integration.
False

10
WestJet Airlines is an example of a company that has used the low-cost
leader strategy to compete in the Canadian airline industry.
True

Sentences Question
A
An organization is best defined as______.
A deliberate arrangement of people to accomplish some specific purpose.
A recent KPMG/lpsos-Reid study Canadian companies found that those
that made the Top 10 list for great human resources practices also scored
high on.
Long-term financial performance
As manager move to higher organization levels, the need for____ skills
decrease, but the need for___ skills continues to be equally important.
Technical; human
According to research by Robert Katz, what three essential skills do
managers need?
Technical, human, and conceptual
According to Mintzberg’s management roles, the _____roles are those that
involve people and other duties that are ceremonial and symbolic in
nature.
Interpersonal
Amy is a supervisor at a large manufacturing plant. She has spent her day
trying to ensure that the light bulbs coming off the assembly line light up
99.5 percent of the time. She has spent her day performing the
management activity of
Controlling
A deliberate arrangement of people to accomplish some specific purpose
is called a(n)
organization
An automobile manufacturer that increases the total number of cars
produced at the same cost, but with many defects, would be.
Efficient but not effective

11
A downturn in contributions from the public to the United Way charity is
an example of the impact from what factor in its general environment.
Ans: economic
A domestic firm and a foreign firm sharing the cost of developing new
products or building production facilities would be called a __________.
Ans: strategic alliance
A joint venture is a specific type of __________.
Ans: strategic alliance
According to the textbook, the __________ environment includes those
external forces that have a direct and immediate impact on managers'
decisions and actions and are directly relevant to the achievement of
the organization's goals.
Ans: specific
According to the symbolic view, managers have a(n) __________ effect on
substantive organizational outcomes.
Ans: Limited
According to the textbook, the members of which one of the following
demographic groups are thinking, learning, creating, shopping, and
playing in fundamentally different ways that are likely to greatly impact
organizations and managers?
Ans: Generation Y
According to Hofstede, managers and employees vary on five dimensions
of national culture. Which of the following represents one of the five
dimensions that Hofstede identified?
Ans: Achievement vs. Nurturing
As more consumers have become aware of the use of rendered feed and
the poor treatment of chickens in many large-scale poultry farms, some
farm managers have switched to all-natural feed and "free range"
breeding methods. This is an example of how changing __________
conditions can affect an organization.
Ans: sociocultural
As employees have begun to seek more balance in their lives,
organizations have had to adjust by offering family leave policies, more
flexible work hours, and even on-site child care facilities. This is an
example of how changing __________ conditions can affect an organization.
Ans: sociocultural
An organization's specific environment __________.
Ans: is unique and changes with conditions

12
At which step of the strategic management process do managers try to
find out what the competition is doing and what pending legislation might
affect the organization?
external analysis
At which step of the strategic management process do managers identify
strengths and weaknesses?
Internal analysis
A(n) __________ plan is a one-time plan specifically designed to meet the
needs of a unique situation.
Single -use
A(n) __________ strategy addresses organizational weaknesses, helps
stabilize operations, and revitalizes organizational resources and
capabilities.
retrenchment
A government plan that calls for a 2.45 percent increase in tobacco sales
taxes for the next three years would be considered what type of plan?
Specific
A well-designed goal should be __________ but __________.
challenging; attainable
At which step of the strategic management process do managers identify
opportunities and threats?
external analysis
At which step of the strategic management process do managers assess
their financial capital, technical expertise, employee skills, and marketing
capabilities?
internal analysis
"At HBC, we have a tremendous sense of responsibility, not only to the
continued growth and success of our company, but also to the nation that
we have been instrumental in building. Our culture is grounded in a
commitment to take into account the social needs and issues impacting
the communities where we do business." This statement relates most
closely to which component of a mission statement?
Philosophy
"At IBM, we recognize individual differences and appreciate how these
differences provide a powerful competitive advantage and a source of
great pride and opportunity in the workplace and marketplace." This
statement relates most closely to which component of a mission
statement?
concern for employees

13
According to Porter's competitive strategies framework, which of the
following strategies seeks to offer unique products to a broad customer
market?
Differentiation
B
MBO programs use goals to __________ employees rather than to __________
them.
Motivate; control
C
Compared to many other countries, Canada's legal-political environment is
considered __________.
Ans: Stable
Canada's economy is best described as __________.
Ans: a market economy with some government control
Canada exports __________ of its total exports to the United States.
Ans: nearly 80 percent
Corporate-level strategy determines __________.
what businesses a company should be in or wants to be in
Carly's Car Care has just found out that a new competitor is opening a few
doors down in a prime location. The competitor will feature the very latest
in car washing technology at competitive prices. The new competitor
represents which of the following for Carly?
Threat
D
Division manager is associated with which of the following levels of
management?
Middle managers
Despite the existence of both internal and external constraints, managers
can still improve organizational performance by:
Ans: influencing the organization's culture and environment
E
Economic conditions include all of the following factors except __________.
Federal government legislation
Ed is involved in discussions between management and the employee’s
union. They are discussing wage issues. Management wants to keep
wages at the legal minimum wage. The union wants minimum wage plus
$1.00. Ed is performing which managerial role?

14
negotiator
Elegance Chocolatier supplies premium chocolates to five-star hotels and
restaurants that cater exclusively to wealthy customers. Which of the
following is the primary source of Elegance's competitive advantage?
Differentiation focus

F
For an amusement theme park like Paramount Canada's Wonderland in
Toronto, an insurance provider would be an example of which factor in its
specific environment?
Ans: supplier
For an organization such as a hospital that needs nurses, the labour union
and the local labour market are examples of which factors in its specific
environment?
Ans: both are examples of suppliers
For most organizations, the most rapidly changing factor has been
__________ conditions.
Ans: technological
From a cultural standpoint, research indicates that __________ has a greater
effect on employees than __________.
Ans : national culture ; organizational culture
From a legal-political standpoint, some large corporations have postponed
doing business with China and other Asian countries due to __________.
Ans: political interference
Formal planning involves which of the following aspects?
writing goals
For many years, Canadian retailer Zellers used the slogan, "Where the
lowest price is the law." Which one of Porter's competitive strategies was
Zellers using?
cost leadership

G
Given a choice, most managers would prefer to operate in environments
that are __________.
Ans: Simple and Stable

15
Goals provide the direction for all management decisions and form the
__________.
criteria against which actual work accomplishments can be measured
Generally speaking, formal planning is associated with __________.
Higher profits
Governmental regulations, powerful labour unions, and other critical
environmental forces constrain managers' options and __________.
reduce the impact of planning on an organization's performance

H
Human resources managers are increasingly using the Internet to search
for qualified candidates through on-line résumé systems and job-posting
websites. This is an example of how changing __________ conditions can
affect an organization.
Ans: Technological

I
If you achieve a higher level of output for a given input, you have
Increased efficiency
If a college cuts the cost of an education by using mostly unskilled
instructors, and at the same time fails to adequately educate its students,
it can be said to be doing the wrong things well. In other words, the
college is
Efficient but not effective
IBM is the world's largest information technology company with over
300,000 employees in 170 countries. It once had a country-based
structure but reorganized into industry groups to compete more
effectively in the global marketplace. IBM is best described as a __________
organization.
Ans: borderless
Interest rates, inflation rates, and stock market indexes are all examples
of what factor in an organization's general environment?
Ans: economic
Internal constraints that restrict a manager's decision options arise from
__________.
Ans: the organization's culture
If the components in an organization's environment change frequently, it
is called a __________ environment.

16
Ans: dynamic
In Porter's five forces model of industry attractiveness, __________ is
determined by barriers to entry such as economies of scale and brand
loyalty.
threat of new entrants
In traditional goal setting, goals are set at the top level of management
and then __________.
they are broken down into sub goals for each organizational level
If a bank evaluates the capabilities of its training and development
department employees prior to implementing a new training program
designed to change their method of providing customer service, it is
completing what step in the strategic management process?
internal analysis
In the strategic management process, any organizational skills or
resources that are exceptional or unique are called the organization's
__________.
core competencies
In traditional goal setting, it is assumed that top managers know what's
best because they __________.
see the big picture
In a typical MBO program, __________.
progress is periodically reviewed.
In Michael Porter's five forces model of industry attractiveness, __________
is determined by the industry growth rate, increasing or falling demand,
and product differences.
Intensity of current competitive rivalry
In Michael Porter's five forces model of industry attractiveness, __________
is determined by the degree of supplier concentration and substitute
inputs.
Bargaining power of suppliers
In Porter's five forces model of industry attractiveness, __________ is
determined by barriers to entry such as economies of scale and brand
loyalty.
Treat of new entrants
In informal planning, __________ sharing of goals with others in the
organization.
Nothing is written down, and there is little or no

17
J
John and Sylvie recently opened a high-tech firm. From its inception the
co-founders committed significant resources to the pursuit of business in
various countries. John and Sylvie have created a company that can best
be classified as a:
Ans: born global
Jill is assessing the labour supply in the locations where her company
currently operates
External analysis

M
Managers with good __________ are able to get the best out of their people.
Human skills
Managers with titles such as project leader or regional manager are____.
Middle managers
Maureen has left the automotive industry to become CEO at a troubled
software company. In her first few meetings with management, she
provides a new vision for the company and presents several ideas about
restructuring departments to build on the firm’s strength and improve its
market position. She also asks the other managers to be patient while she
learns more about the company’s products and manufacturing process,
Maureen displays_____.
Good conceptual but weak technical skills.
Michael’s strength as a manager lies in his ability to work with people. He
is very good at motivating and leading his subordinates. Michael is
demonstrating which managerial skill?
Human
Many of Mintzberg's roles align with the basic functions of management.
For example, all three interpersonal roles are part of the __________
function.
Leading
Many of Mintzberg’s roles align with the basic functions of management.
For example, the role of_____ is a part of the planning function.
Resource’s allocator
Many organizations, especially small businesses, start doing business
globally by __________.
Ans: exporting and importing.
McDonald's Canada, GM Canada, and IBM Canada are all examples of U.S.
__________ operating in Canada.

18
Ans: subsidiaries
Multinational corporations (MNCs) became commonplace in the __________.
Ans: 1960s
Managers try to minimize __________ because it is a threat to an
organization's effectiveness.
Ans: uncertainty
Managers operate within the internal and external constraints imposed by
__________.
Ans: the organization's culture and environment

MBO programs use goals to __________ employees rather than to __________

them.
motivate; control

Management by objectives is a management system in which specific

performance goals are __________.
Jointly determined by employees and their managers

N
New organizations tend to be dynamic, flexible and
Team-oriented
New organizations tend to be more______ than traditional organizations.
Customer-oriented
Neighbourhood activists who protest against the building of "big box"
stores would be considered which factor in the specific environment for
Wal-Mart or Home Depot?
Ans: pressure group
O
Over the last century, the Campbell Soup Company has expanded by
acquiring other packaged consumer food companies such as Pace, V8,
Pepperidge Farms, Swanson, and Godiva Chocolatiers. Campbell's was
pursuing which corporate-level strategy?
related diversification
Once managers have completed their analysis of the strengths,
weaknesses, opportunities, and threats facing the organization, they can
proceed to the next step of the strategic management process, which is to
__________.
Formulate strategies

19
P
Plant managers and regional managers are considered middle managers
whereas foremen are usually considered first-line managers.
True
Pierre’s Auto Repair Shop is mostly concerned with using the least amount
of paint, labour, and other materials required to repair its customers’ cars.
Its primary goal is.
Efficiency
Political/legal conditions in Canada include all of the following
factors except __________.
Ans: Interest rates
Plans that apply to the entire organization, establish the organization's
overall goals, and seek to position the organization in terms of its
environment are called __________ plans.
Strategic
Planning can't eliminate change. Managers plan in order to __________.
anticipate changes and develop the most effective response
Plans that specify the details of how the overall goals are to be achieved
are called __________ plans.
Operational
Planning reduces __________ by forcing managers to look ahead and
anticipate __________.
Uncertainly,change
Plans that are clearly defined and leave no room for interpretation are
called __________ plans.
specific
Pat's Pets has developed a reputation as the industry leader in quality pet
care. It has exceptionally skilled employees who are known for their
humane and loving treatment of animals. For Pat's, these resources would
be considered __________.
core competencies
R
Resource allocation and negotiating are both considered decisional roles.
True
Richard is a manager at a large hospital. He has spent his day arranging
the work schedules of employee for the next month. He had to ensure that

20
there was a registered nurse on every shift, and that each was assigned to
the area that best suited their qualifications. He spent his day____.
organizing
Richard spends a half hour every morning reading the current periodicals
concerned with his business. He is performing which managerial role?
Monitor
Rachel is marketing manager of a product division at New Tech
corporation. She is presenting a new product idea to the director of
Research and Development which could lead to profitable new opportunity
for the company. Rachel is performing the role of.
entrepreneur
Rachel makes $80,000 a year as an accountant. Based on her income, she
is trying to figure out how she can build an investment portfolio worth $1
million by the time she retires. Rachel is at which step of the goal-setting
process?
Evaluate available resources

S
Sylvia has spent the day in a meeting that focused on her company’s
future. Manager were trying to predict how the how the role of their
company might change over the next ten years. Goals were then
developed based upon their vision of the company’s mission. Sylvia spent
her day performing the management activity of ______.
planning
Supervisor is a common title for whom?
First-line managers
Someone who works with and through other people by coordinating their
work activities in order to accomplish organization goals is________.
A Manager
Since the emergence of digital music formats, the recorded music industry
has been operating in an environment that is best described as __________.
Ans: dynamic
Sociocultural conditions consist of the __________.
Ans: changing expectations of the society in which organizations operate.
Switching costs and buyer loyalty are examples of strategic forces that
determine the __________.
threat of substitutes

21
Strategic plans tend to cover a longer period of time than operational
plans and also __________.
cover a broader view of the organization
Studies of actual MBO programs confirm that MBO __________ employee
performance and organizational productivity.
Increase
Six Sigma is a quality standard that establishes a goal of no more than 3.4
defects per __________ units or procedures.
1,000,000

T
The process of monitoring, comparing, and correcting is called_____.
controlling
The goal of Dempsey’s Dumpsters is to provide trash services to the city
of Apex, whose motto is “The peak of good living”. The customers are
satisfied with the level of service, but costs at Dempsey’s Dumpsters are
double that of their competition. Dempsey’s is
Effective but not efficient
The lowest level of management is_____.
A first-line manager
The roles of disseminator, figurehead, negotiator, liaison, and spokes
person are more important at the_____ levels of the organization.
higher
The process of writing an organization’s strategies goals and objectives is
an example of which management function?
planning
Three economic issues that a global manager might need to understand
include __________.
Ans: currency exchange rates, inflation rates, and tax policies.
The cultural dimension of __________ measures the degree to which the
members of a society expect power to be unequally shared.
Ans: power distance
The Canadian Human Rights Act is an example of a __________.
Ans: political/legal condition
The WTO is a global organization that evolved from __________.
Ans: GATT

22
The __________ view of management is consistent with the stereotypical
picture of the take-charge business executive who can overcome any
obstacle in carrying out the organization's objectives.
Ans: omnipotent
The __________ inherent in directional plans must be weighed against the
loss of __________ provided by specific plans.
flexibility; clarity
The enhanced speed and quality of managerial decision making due to
improvements in office automation is an example of the impact of which
general environmental factor?
Ans: technological
The specific environment of organizations consists of external forces that
have a direct impact on managers' decisions and actions. The main forces
are customers, suppliers, competitors, and __________.
Ans: pressure group
The external environment consists of the global environment, __________.
Ans: specific environment, and the general environment
The omnipotent view of management means __________.
Ans: managers are directly responsible for an organization's success or
failure.
The primary goal of managers when dealing with suppliers is to ensure a
steady flow of __________.
Ans: inputs at the lowest price available
The global environment of an organization includes which of the
following?
Ans: demographic conditions
The cultural dimension of __________ measures the degree to which a
society relies on social norms and procedures to alleviate the
unpredictability of future events.
Ans: uncertainty avoidance
The symbolic view of management means __________.
Ans: managers have only a limited effect on organizational outcomes
To a cable television provider like Shaw Cablesystems, a satellite TV
company like Bell would be considered a __________.
Ans: Competitor
Through the creation of the EU, member countries now have __________.
Ans: a single market

23
The quality of the planning process and the appropriate implementation of
the plans probably __________.
contribute more to high performance than does the extent of planning
The distinct edge that sets an organization apart from its competitors is
called a __________.
competitive advantage
The final step in strategic planning answers the question, "__________"
How effective have our strategies been?
The purpose of Cathy's Clowns is "to provide healthy entertainment that
makes young children laugh." This statement describes Cathy's __________.
Mission
The __________ answers the question, "What is our reason for being in
business"?
mission
The combined internal and external analyses of factors that influence an
organization's strategy is known as __________ analysis.
SWOT
The Jim Pattison Group has grown by acquiring firms in diverse industries.
Today, Jim Pattison owns food retail chains, car dealerships, radio stations,
a fishing company, a sign company, a packaging company, and several
museum-themed tourist attractions. Jim Pattison has pursued a strategy
of: __________.
Unrelated diversification
The three competitive strategies identified by Michael Porter are
__________.
focus, differentiation, and cost leadership
The __________ standards have become the internationally recognized
standard for evaluating and comparing companies in the global
marketplace.
ISO 9000
Two of the best-known quality goals pursued by organizations worldwide
are __________ and __________.
ISO 9000; Six Sigma
Three types of growth strategies are __________.
concentration, integration, and diversification
The most popular ways to describe organizational plans are by their
breadth, time frame, __________.specificity, and frequency of use

24
The primary goal of discount retailer Wal-Mart is to have the lowest prices
in the industry. Which of the following is the primary source of Wal-Mart's
competitive advantage?
Cost Leadership

The strategy of differentiation requires a firm to __________.

Be unique in its product offering

U
University of management means that_______.
All managers in all organizations perform the four management function.
United Parcel Service represents which factor to Canada Post in its
specific environment?
Ans: competitor
W
Which common characteristic of all organizations is typically expressed in
terms of a goal or a set of goals?
Distinct purpose
Which of the following best describes the concept that management is
needed in all types and sizes of organizations, at all organization levels, in
all organization work areas, and in organizations in all countries around
the globe.
The university of management
Which of the following phrases best described technical skills?
Applying expertise in a certain specialized field.
Which of the following skills is most likely to be defined using terms such
as abstract situation and visualization?
conceptual
Which of the following is an interpersonal role according to Mintzberg’s?
figurehead
Which of Mintzberg’s management roles involves receiving, collecting, and
disseminating information?
informational

Whereas_____ is concerned with the means of getting things done, _____ is

concerned with the ends, or attainment of organization goals.

25
Efficiency: effectiveness
What are the two views of managerial impact on the success or failure of
the organization?
Ans: omnipotent and symbolic
Which of the following is a multilateral trading system formed in 1995?
Ans: WTO (World Trade Organization)
Which of the following strategies for going global involves a higher level
of risk and investment than strategic alliances?
Ans: foreign subsidiary
Which of the following is an example of a force in the general
environment?
Pressure group
What is the first step in the strategic management process?
identify current current mission, goals, and strategies
When Air Canada acquired Canadian Airlines International, it was pursuing
a strategy of growth by vertical integration.
aggressively search out efficiencies to maintain the lowest cost structure
When organizational members are more actively involved in planning, they
see that the plans are __________.
used in directing and coordinating work
When plans are described as directional versus specific, they are being
differentiated by __________.
specificity
When athletic sportswear manufacturer Nike decided to open its own
chain of retail stores, it was pursuing which corporate-level strategy?
forward vertical integration
When Air Canada went into bankruptcy protection to restructure its
organization and reduce its operating costs, it was pursuing a strategy of
__________.
Retrenchment
When Air Canada acquired its largest domestic competitor, Canadian
Airlines International, it was pursuing a strategy of __________.
horizontal integration
When the Campbell Soup Company began to manufacture its own cans to
gain more control over a key production input, it was pursuing which
corporate-level strategy?
backward vertical integration

26
When an organization grows by combining operations with competitors,
the strategy is known as a __________ strategy.
horizontal integration

When an organization attempts to grow by merging with or acquiring firms

in different, but associated industries, the strategy is known as a __________
strategy.
related diversification
When an organization attempts to grow by merging with or acquiring firms
in different and unrelated industries, the strategy is known as a(n)
__________ strategy.
unrelated diversification
When Kimberly-Clark Corporation merged with Scott Paper Company to
form the world's largest producer of tissue paper, they were pursuing
which growth strategy?
horizontal integration
When aluminum manufacturer Rio Tinto Alcan purchased a mining
company that mines bauxite, a key input in aluminum production, it was
pursuing which corporate-level strategy?
backward vertical integration
When uncertainty is high and managers must be flexible, which type of
plan is most preferable?
directional
Which of the following represent renewal strategies?
turnaround and retrenchment
Which type of plan is flexible and provides general guidelines?
directional
Which of the following is a reason for planning?
it minimizes redundancy.
Which of the following is identified in our textbook as a contingency factor
that affects organizational planning?
length of future commitments
Which of the following is a common way to classify an organization's
plans?
Frequency of use
Which of the following types of plans dominates managers' planning
efforts at at upper levels of the organization?

27
Strategic
Which of the following is the first step in the goal-setting process?
Review the organization's mission.
Which of the following is true concerning standing plans?
They provide guidance for activities repeatedly performed in the
organization
Which approach to going global involves making products at home and
selling them overseas?
Ans: Exporting
Which of the following is usually part of an organization's general
environment?
Ans: political conditions
Which of the following are the two dimensions of environmental
uncertainty?
Ans: degree of change and degree of complexity
Which approach to going global did McDonald's Canada use when it
opened restaurants in Russia?
Ans: franchising
Which of the following definitions best describes a borderless corporation?
a company that maintains significant operations in at least two countries
but organizes by industry to reduce geographical barriers
Which of the following definitions is most accurate for a multinational
corporation?
Ans: a company that maintains significant operations in at least two
countries but is managed from a base in the home country
Which of the following strategies for going global involves the highest
level of risk and investment?
Ans: foreign subsidiary
Which of the following demographic groups includes individuals who were
born between the years 1947-1966?
Ans: Generation Y
Which of the following is an example of a force in the general
environment?
Ans: demographics
Which of the following is a trading alliance of Southeast Asian nations?
Ans: ASEAN

28
Which Act makes it illegal for employers to discriminate on the basis of
race, national or ethnic origin, colour, religion, age, sex, marital status,
mental or physical disability, or sexual orientation?
Ans: Canadian Human Rights Act
Which of the following is included in an organization's specific
environment?
Ans: competitors
Which of the following strategies for going global involves the lowest level
of risk and investment?
Ans: exporting
When researchers discovered a link between trans fatty acids and heart
disease, many consumers became concerned. As a result, Ontario-based
Voortman's Cookies decided to eliminate all trans fats from its products.
Voortman's was responding to changing __________ conditions.
Ans: sociocultural
When an organization drops its structure based on countries and
reorganizes according to industries, it is pursuing a global business
approach known as
Ans: borderless organization
X
XYZ is an international corporation that has recently changed its
philosophy. It has decentralized management and decision making to the
local countries in which it operates. XYZ is pursuing a __________ approach.
Ans: multidomestic
__________are businesses that are structured like private sector companies
but are owned by government rather than shareholders.
Crown corporation
__________is the process of coordinating work activities so that they are
completed efficiently and effectively with and through other people.
Management
__________was a French industrialist who first identified the basic
management functions,
Fayol
__________first proposed that all managers perform five function: planning,
organizing, commanding, coordinating, and controlling.
Henri Fayol

29
__________ are any constituencies in the organization's external
environment that are affected by the organization's decisions and actions.
Ans: Stakeholders
__________ are positive trends in external environmental factors, while
__________ are negative trends.
Opportunities; threats
_________ are the organization's major value-creating skills, capabilities,
and resources that determine the organization's competitive weapons.
Core competencies
__________ is the collection of managerial decisions and actions that
determine the long-run performance of an organization.
Strategic management
__________ strategy determines how an organization should compete in each
of its businesses.
Business-level

30