Foundations of Business - Exam 2 Review

Strategic planning involves establishing a mission, vision, and goals for the company.The ultimate goal of a strategic plan is for the organization to achieve superior profits through_______. Competitive Advantage ____is a process in which a company uses projected sales to determine the amount/quantity of raw materials needed to produce their final products. MRP (material requirement planning) Newly promoted to manager,Sara seeks input from all the members of her team, ponders that input, and then makes most decisions herself.Based on this description,Sara is using what leadership style? Participate/democratic As a person moves up in an organization, the interpersonal and the skill groups are used most prominently. Strategic Six battery producers voluntarily share detailed production data with a third party consultant who anonymizes the results and shares reporting intended to guide each company to improve efficiency.They have engaged in_______. Benchmarking Sel and Poivre are competitors. Sel wants to acquire Poivre, but Poivre management is not in favor of this deal.If Sel were to go to directly to Poivre shareholders to complete the deal, it would represent a(n)________. Hostile Takeover Tim is buying a high-end race bicycle.Frames and components are made in large volumes, and buyers like Tim select exactly which they want to have assembled on their new bike.What production method is described here? Mass Customization Average weekly hours worked in manufacturing is a measurement that gives economists a good estimate of how much consumers will spend in the coming months.As such, it is a(n)_________. Leading economic indicator The business where Bill works allows him to set his own schedule within certain parameters.He has to be there from 10 to 2, and can complete the rest of his hours as he wishes.His employer uses_________. Flextime Because services like haircuts are intangible(i.e.,cannot be stocked),what aspect of managing a service operation becomes especially critical? Planning Bev works in the corporate office of a multi-factory manufacturing company. Her job involves facility layout, capacity planning, and deciding what each factory will produce.She works in what operations function? Production Planning Anna forms a group to code an app to help people donate to charities.Her sales are growing, but not enough to keep up with costs.An investment company provides $1 million-they expect a good return.This scenario describes what kind of investor? Venture Capital Bats is a restaurant chain primarily located along the east coast.They combine with Balls, a west coast chain of about the same size.The deal between the two equally-sized companies is a(n)______. Merger Aiden likes to mentor and develop the people who report to him.He manages each person in a manner that works best for them.Aiden would be described as a(n)_____ leader Transformational Zut and Alors are companies with excess factory capacity. Zut decides to buy Alors, which will allow them to close one factory, reducing costs.The cost saving enabled by this merger is a form of operational___________. Synergy Companies like Capital One have developed programs where new hires change assignments several times over a two-year period.This practice is called________. Job Rotation Chad is forming a company and wants to limit his liability, but he does not want to go through the process of incorporating.What business form could he select that would accomplish his objective? LLC Cal is a car salesman.He earns a minimal salary plus a percentage of the selling price for every car he sells.The additional part of Cal's pay is called a(n)________. Commission Dani notices that excessive amounts of water are being used in the factory. She traces the problem back to a leak which is then repaired.In which of the functions of management did Dani engage? Control Say that French car maker Peugeot decided to re-enter the U.S.market by building a factory in Bayonne,NJ. In this scenario, what global entry strategy would Peugeot be utilizing? FDI Pia is reviewing a project schedule and sees that if the site preparation is not done on schedule, the entire project will be delayed.Site preparation must be on the_________. Critical Path A ______ is a concise explanation of the organization's reason for existence. It describes the organization's purpose and its overall intention. Mission Statement Lea is drawn to a certain form of business because she would have no boss, keep all the profits, and incur no special taxes. However, she would have unlimited liability.This business form is a(n)________. Sole Proprietorship One way of protecting your ______ is to obtain a patent to prevent others from using it without penalty. Intellectual Property Ben is a candidate for a position at ACE Co.During his interview, he is asked to tell about a time when he had to deal with an irate customer.Into what category does this question fall? Behavioral Brian is a musician and an engineering major.His heart is in his music, but he studies hard in case his music doesn't sell.For him, the study of engineering is a(n)_plan. Contingency Katie is granted rights to buy shares of her company at a price of $21.If the price goes down or stays the same, these rights will expire worthless. These rights are called_________. Stock Option ______ is a company function that secures needed raw materials in the right quality, at the right time and right cost. Production Control In a particular industry, there are five competitors with a combined 90% share of the market.When one changes price, the others typically follow. What form of competition is present in this industry? Oligopoly Caen is a producer of soccer equipment with five owners.One owner is responsible for the day to day operations and has unlimited liability.The other four are liable only up to the amount invested.Caen is a(n)_______. Limited Partnership BVB Co.is a German company producing keyless entry devices for auto makers.Only the auto makers' brands are used.In this example,BVB serves as a(n)_______ to the auto makers. Contract Manufacture ______ is an alternative to starting a new business from scratch and allows new business owners to use the support of a larger organization that provides marketing support and other services. Franchising List three advantages and three disadvantages to forming a business as a corporation.(6 points) Advantage: - Limited liability for shareholders (owners). Can borrow money from banks and individual investors Ease of ownership change Disadvantage: Double- taxation Extensive and expensive start-up cost Possible conflicts with shareholders and board of directors List four important and distinctly different factors involved in facility location. No need for a detailed description.(4 points) Shipping cost Nice community for workers and their family. Availability/ access to resources and skilled labor Cost of land, construction, utilities and taxes Explain job enrichment and job enlargement making clear the differences between them.(6 points) Job Enlargement: Adding tasks to a job at similar skill set and level Job Enrichment: Add tasks to a job that increase both responsibility and opportunity for growth List two advantages and two disadvantages of recruiting internally instead of externally.(4 points) Cheaper to do internally, creates avenues for promotion. External gives you an opportunity to bring fresh ideas and skills into the company.