MBA705 Exam 2 – Questions With Flawless Solutions
Macroenvironmental Forces (PEST) Correct Answer - Affect industries
and individual firms within industries. The focus at this stage of analysis is on
the industry, not the firm.
They are:
- Political/legal
- Economic
- Social
- Technological
Social Forces Correct Answer - - Societal values
- Trends
- Traditions
- Religious practices
- Concern for the environment
Culture Correct Answer - The generally accepted values, traditions, and
patterns of behavior in a society.
Self-Reference Criterion Correct Answer - A phenomenon in which
managers consciously refer to their own cultural values as a standard of
judgment.
Disaggregation Correct Answer - When companies no longer perform all
of their functional activities.
Reaggregation Correct Answer - Companies rely on other corporations
who perform some of their business activities more effectively.
Five Strategic Dimensions of the Internet Correct Answer - - Movement
toward information symmetry
- Internet as distribution channel
- Speed
- Interactivity
- Potential for cost reductions and cost shifting
Information Symmetry Correct Answer - Buyers and sellers share
information.
, Clicks and Bricks Correct Answer - The integration of e-commerce into
existing business strutures.
Commoditization Correct Answer - Firms are having a more difficult
time distinguishing their products and services from those of their rivals.
Mass Customization Correct Answer - The ability to individualize
product and service offerings to meet specific buyer needs.
Environmental Scanning Correct Answer - The systematic collection and
analysis of information about relevant macroenvironmental trends.
Stakeholders Correct Answer - Individuals or groups who are affected by
or can influence an organization's operations.
Mission Correct Answer - The reason for the firm's existence.
Goals Correct Answer - Desired ends toward which efforts are directed.
Objectives Correct Answer - Specific, often quantified, versions of goals.
Agency Problem Correct Answer - A situation in which a firm's
managers—the "agents" of the owners—fail to act in the best interest of the
shareholders.
Moral Hazard Correct Answer - When the parties in an arrangement—
such as owners and managers—do not share equally in the risks and benefits.
Adverse Selection Correct Answer - The inability of shareholders to
identify the precise competencies and personal attributes of top managers
when they are hired.
Managerial Ethics Correct Answer - Individual responsibility to make
business decisions that are legal, honest, moral, and fair.
Six Views on Managerial Ethics Correct Answer - - Utilitarian
- Self-interest
- Rights
Macroenvironmental Forces (PEST) Correct Answer - Affect industries
and individual firms within industries. The focus at this stage of analysis is on
the industry, not the firm.
They are:
- Political/legal
- Economic
- Social
- Technological
Social Forces Correct Answer - - Societal values
- Trends
- Traditions
- Religious practices
- Concern for the environment
Culture Correct Answer - The generally accepted values, traditions, and
patterns of behavior in a society.
Self-Reference Criterion Correct Answer - A phenomenon in which
managers consciously refer to their own cultural values as a standard of
judgment.
Disaggregation Correct Answer - When companies no longer perform all
of their functional activities.
Reaggregation Correct Answer - Companies rely on other corporations
who perform some of their business activities more effectively.
Five Strategic Dimensions of the Internet Correct Answer - - Movement
toward information symmetry
- Internet as distribution channel
- Speed
- Interactivity
- Potential for cost reductions and cost shifting
Information Symmetry Correct Answer - Buyers and sellers share
information.
, Clicks and Bricks Correct Answer - The integration of e-commerce into
existing business strutures.
Commoditization Correct Answer - Firms are having a more difficult
time distinguishing their products and services from those of their rivals.
Mass Customization Correct Answer - The ability to individualize
product and service offerings to meet specific buyer needs.
Environmental Scanning Correct Answer - The systematic collection and
analysis of information about relevant macroenvironmental trends.
Stakeholders Correct Answer - Individuals or groups who are affected by
or can influence an organization's operations.
Mission Correct Answer - The reason for the firm's existence.
Goals Correct Answer - Desired ends toward which efforts are directed.
Objectives Correct Answer - Specific, often quantified, versions of goals.
Agency Problem Correct Answer - A situation in which a firm's
managers—the "agents" of the owners—fail to act in the best interest of the
shareholders.
Moral Hazard Correct Answer - When the parties in an arrangement—
such as owners and managers—do not share equally in the risks and benefits.
Adverse Selection Correct Answer - The inability of shareholders to
identify the precise competencies and personal attributes of top managers
when they are hired.
Managerial Ethics Correct Answer - Individual responsibility to make
business decisions that are legal, honest, moral, and fair.
Six Views on Managerial Ethics Correct Answer - - Utilitarian
- Self-interest
- Rights
