83) Management by objectives (MBO) and goal cascading will NOT work without an effective
A) technology component.
B) contingency plan.
C) bonus-based compensation plan.
D) goal-setting process.
E) layer of middle management.
84) Which of the following is not a step in the process of management by objectives (MBO)?
A) Managers determine each employee’s strengths and weaknesses.
B) Managers and employees jointly set objectives for the employee.
C) Managers develop action plans.
D) Managers and employees periodically review the employee’s performance.
E) The manager makes a performance appraisal and rewards the employee according to results.
85) ________ is the overall goal of MBO.
A) Motivating employees
B) Controlling subordinates
C) Controlling costs
D) Increasing market share
E) Terminating low-performing employees
86) ________ are at the top of the organization and get more specific as they move toward
________.
A) Short-term goals; long-term goals.
B) Customer service goals; employees.
C) Financial goals; the shop floor.
D) Objectives and activities; upper-level management.
E) Cascading goals; individual employees.
87) Which sequence of goals is consistent with “cascading” goals that begin at the top of the
organization?
A) strategic goals > divisional goals > department goals > individual goals
B) individual goals > department goals > divisional goals > strategic goals
C) divisional goals > strategic goals > individual goals > departmental goals
D) departmental goals > individual goals > strategic goals > divisional goals
E) customer goals > employee goals > manager goals > company goals
88) As a manager, you meet with each of your team members quarterly to review their progress
toward their written and agreed-upon goals. One of your employees, Julie, had a goal of increasing
sales in her territory by 10 percent in the first quarter of the year. However, when you review
Julie’s sales numbers, you see that her sales have actually gone down. You know Julie is a hard
worker and has an excellent relationship with her customers. When you sit down to discuss her
performance, she explains what is happening in her territory. A major automobile manufacturer,
which once provided 25,000 jobs, has moved its operations to Mexico and laid off all 25,000 of its
workers. As a result, the economy in Julie’s region has become quite depressed, and the residents
are living off their savings. Taking the steps of the planning/control cycle into account, what is
your best course of action with Julie?
A) Terminate her employment with the company.
B) Arrange for her to take a refresher course on sales methods.
C) Transfer her to another territory and replace her with another sales rep who is new to the
company and therefore “hungry.”
D) Recognize the economic reality of her territory and change her goals to make them ambitious
but realistic.
E) Put her on probation, explaining that she will be terminated if her performance does not
improve in the next quarter.
89) Which of the following is a tactical goal?
A) By the end of this fiscal year, we will achieve a 10 percent cost reduction in our office expenses.
B) Within two years, we will enter into a strategic alliance with a company that is able to
effectively market and sell our products in China, India, and other emerging economies.
C) This company has a policy of conducting a background and credit check on all job applicants.
D) Smoking on the factory floor is strictly prohibited; anyone caught smoking in company
facilities will be disciplined immediately.
E) As a company, we are committed to increasing our online presence through social media.
90) How would you describe Amazon’s commitment to continuous evolution?
A) It is one of their value statements.
B) It is their vision statement.
C) It is their mission statement.
D) It is their strategy or strategic plan.
E) It is their business model.
91) Kaleb is preparing for an interview. He has reviewed his résumé, prepared his questions, and
thought through answers for the top questions most asked in interviews. He feels well prepared. At
the interview, he is asked to respond to a scenario question in which a problem is presented. Why is
the interviewer asking this type of question?
A) to see if Kaleb can analyze the situation and propose alternatives
B) to see if Kaleb can make quick decisions
C) to see if Kaleb is a planner
D) to see if Kaleb manages his time wisely
E) to see if Kaleb understands the inner workings of the company
92) Grayson wants to rethink the visitor experience to his theme parks. He meets with the customer
service team who represents the parking attendants, the ticket sales agents, the information booth
workers, the grounds keepers, and the ride attendants. Grayson wants them to change how they
interact with the park patrons. He tells them all to, “Welcome each visitor to the park with a smile,
a kind word, and an offer of assistance.” How would you describe his change?
A) It is a learning objective.
B) It is a SMART goal.
C) It is a performance objective.
D) It is motivational objective.
E) It is a behavioral objective.
93) Mark Zuckerberg stated that Facebook’s early idea was to “Move fast and break things.” He set
that as his strategy for the company. Was he using the concept of strategy correctly?
A) Yes, because mission statements are a part of strategic plans and this was a clear, concise
mission.
B) Yes, because it provided a vision for this new endeavor for others to share.
C) Yes, because he involved managers from all parts of the organization.
D) No, because a strategy sets a long-term goal and direction for an organization.
E) No, because this was a short-term goal and provided the initial slogan for the company.
94) Jeanine, the operations manager of an auto dealership, has been redesigning operations. She
feels there are many places where the dealership can cut costs to save money. One of these is all the
“perks” for customers like free coffee, freshly popped popcorn, and a children’s play area. Assume
you are the general manager of the dealership (Jeanine’s boss) and an advocate of the
planning/control cycle, what would you do?
A) Have Jeanine create a plan on how the perks will stop being offered.
B) Have Jeanine make the change, compare sales and expenses after a period of time, and see if
corrective action is necessary.
C) Demote Jeanine, as she does not understand the importance of customer service in selling cars.
D) Assign Jeanine to work with a salesperson on a Saturday and then report back.
E) Have Jeanine visit a competing dealership and see what they offer customers.
95) The textbook makes four key recommendations to help you become a proactive learner. Use
these recommendations to set a goal of obtaining a job after graduation that is interesting and
provides a good salary. Given that this is a long-term goal, be sure to explain how you will use the
advice between now and the time you graduate.
96) Describe the components of a business model.
97) You plan to open a new business. Before you can approach the small-business loan center, you
will have to have a strong plan. Write a one-paragraph business model description for a business of
your choice.
98) This question contains two parts; be sure to answer each part. First, define strategic
management, explaining how managers from all parts of the organization are involved and the
three types of planning that are a part of strategic management. Next, imagine that you are
planning to open a bagel shop. Give specific examples of each of the three types of planning with
regard to your bagel shop.
99) Contrast strategic, tactical, and operational planning, explaining the time frame associated
with each type.
100) This question has multiple parts; be sure to answer each one.
First, explain how a company’s approach to planning and its mission become translated into action
plans.
Second, imagine that you have just purchased a local pizza restaurant. There are three other similar
restaurants in the city, and yours is the smallest. Write a mission statement and a vision statement,
and create an action plan for achieving your vision.
101) Super Sandwiches trains its employees to always put the sandwich condiments on the
sandwich in the same order. The company is also known for treating its employees well and enjoys
some of the lowest employee turnover in the industry. As a result, it is one of three companies
being featured in a 20-minute piece on a national newscast to discuss this honor. Identify the types
of standing plans and single-use plans. Discuss how Super Sandwiches might apply a standing
plan and a single-use plan. Include examples in your response. (That is, make all your examples
relevant to a sandwich shop.)
102) This question contains two parts; be sure to answer both.
First, define a SMART goal by listing its five key qualities.
Next, imagine that you have been promoted to manage a hair salon and you want to set goals for
your employees, who are the hairstylists, manicurists, and receptionists. Write three SMART goals
for your employees that focus on revenue, customer satisfaction, and quality of services.
103) Describe the four types of objectives used in MBO and give examples of each type.
104) Imagine that you are a manager of a local clothing store with the responsibility for four
employees. Outline a detailed plan for how you would implement MBO to increase overall store
revenue by 10 percent by the end of the year.
105) Professor Adams, a business teacher, meets with her students’ mid-quarter to give out
midterm reports and discuss with students how to improve their grade for the remainder of term.
Also, she likes to meet with her students each week after midterm to discuss how they are
progressing on suggestions related to the midterm reports. Discuss how Professor Adams is using
the planning control steps of the planning/control cycle with her students.
106) California’s dairy farmers famous tagline “Got milk?” is an example of a slogan, not a
business plan or a strategy. Briefly describe the differences among these key terms: planning, a
business plan, and a strategy.
107) This question contains two parts; be sure to answer both.
First, describe how to develop the career readiness competency of proactive learning orientation.
What key recommendations should be put into practice to help you become more proactive?
108) You are the manager of your college’s bookstore. Create a mission statement, a vision
statement, and a values statement for the services you manage.
109) Cascading is essential to promoting consistency in goals. Which three criteria must be met for
goal cascading to be successful? Describe and explain each criterion.