Unit 1 - Managerial Decision Making

Question 1

Failing to make a decision quickly enough can:

Answer 1

result in a missed business opportunity.

Question 2

Employees in a company are affected by managerial decision-making because they are _________.

Answer 2

stakeholders

Question 3

Management decision-making is often _________.

Answer 3

difficult

Question 4

Programmed decisions:

Answer 4

are those that are repeated over time and for which an existing set of rules can be developed to guide the process.

Question 5

The easiest type of decision to teach others is a(n) _________.

Answer 5

programmed decision

Question 6

Nonprogrammed decisions require a manager to:

Answer 6

generate multiple options.

Question 7

What do time constraints often force managers to do?

Answer 7

Make reasonable nonprogrammed decisions.

Question 8

What does confirmation bias encourage?

Answer 8

Familiar decision-making

Question 9

If a manager has all available information, why may a poor decision still be made?

Answer 9

Bounded rationality

Question 10

What is Bonded Rationality?

Answer 10

the idea that for complex issues we cannot be completely rational, because we cannot fully grasp all the possible alternatives, nor can we understand all the implications of every possible alternative.

Question 11

What decision-making tool can you apply in this case?

Answer 11

Heuristics

Question 12

What is Heuristics?

Answer 12

the mental shortcuts that managers take when making programmed (routine, low-involvement) decisions like this. They save a great deal of time for managers.

Question 13

If you are faced with a serious ethical dilemma at work, what should you do?

Answer 13

apply the ethical decision-making model.

Question 14

You are given a task new to the company with little guidance from management.

What nonprogrammed approach may help you the most in completing it successfully?

Answer 14

Being creative

Question 15

A devil’s advocate is a(n) _________.

Answer 15

a person who intentionally takes on the role of critic. Their job is to point out flawed logic, challenge the group’s evaluations of various alternatives, and identify weaknesses in proposed solutions.

Question 16

What is Groupthink?

Answer 16

Groupthink occurs when group members choose not to voice their concerns or objections because they would rather keep the peace and not annoy or antagonize others. Sometimes groupthink occurs because the group has a positive team spirit and camaraderie, and individual group members don’t want that to change by introducing conflict. It can also occur because past successes have made the team complacent.

Question 17

Brainstorming is a(n) _________.

Answer 17

group decision-making process

Question 18

To keep customers satisfied with their products and services, companies use _________.

Answer 18

environmental scanning

Question 19

What is environmental scanning?

Answer 19

The systematic and intentional analysis of both a firm’s internal state and its external, competitive environment.

Question 20

Strategic analysis is:

Answer 20

a high priority for successful companies.

is the process that firms use to study and understand the many different layers and aspects of their competitive environment.

Question 21

A company’s competitive environment:

Answer 21

changes constantly.

Question 22

Outdated technology would show up as a(n) __________ in a SWOT analysis.

Answer 22

weakness

Question 23

A SWOT analysis is primarily used to:

Answer 23

conduct a strategic assessment.

Question 24

What does the acronym SWOT stand for?

Answer 24

Strengths, Weaknesses, Opportunities, Threats

Question 25

Which macro environmental factor will you need to emphasize in your work?

Answer 25

A firm’s macro environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must contend with, regardless of the industry they are in or type of business they are. Globalization is one of these elements.

Question 26

Your company is revamping its marketing strategy in Germany to remain competitive and adapt to the environment. You must make recommendations to the CEO.

What is one key recommendation you make?

Answer 26

Evaluate the impact of sociocultural changes in the country.

Question 27

As a congressional staffer, you are asked to put together a brief on French political factors.

What specific topics will you examine?

Answer 27

Taxation, tariffs and trade agreements

Question 28

You are new to the property management industry and have just been hired by a local company.

As you chart your career path, what aspect of the company’s micro environment should you focus on?

Answer 28

Rivalry with other property management companies

Question 29

In terms of Porter’s model, how has the expansion into electric vehicles changed the automobile market?

Answer 29

The competitive rivalry has increased.

Question 30

You are tasked by your company with setting up manufacturing of a new product and keeping costs as low as possible. You must determine how to source the supply of parts and components.

What is a reasonable strategy according to Porter’s model?

Answer 30

Keep supplier power low by sourcing from several suppliers.

Question 31

Examining the internal environment of a company will include ________.

Answer 31

company resources

Question 32

Resources of a company’s internal environment include _________.

Answer 32

employees

Question 33

Internal capabilities include __________.

Answer 33

the ability to offer low prices

Question 34

The process of attracting customers to a company’s products and away from the products of rivals is called _________.

Answer 34

competition