This ARE 112 Midterm 2 review document for the 2025/2026 academic year features over 100 thoroughly answered questions, offering complete coverage of key concepts from the second portion of Lundblad’s Organizational Behavior and Management course. Designed for deep comprehension and rapid review, it addresses foundational management theory alongside applied business tools and ethics frameworks.
The Q&A format helps students prepare for exams by reinforcing definitions, comparing concepts, and integrating real-world case examples.
Main topics covered include:
Types of Power: Coercive, Reward, Legitimate, Expert, Referent
Decision-Making Concepts: Structured vs. unstructured decisions, decision environments (risk, uncertainty, ambiguity), decision trees, Monte Carlo simulations
Ethical Frameworks: Moral rights rule, utilitarian rule, justice rule, practical rule, stakeholder theory, agency theory
Strategic Thinking Tools: SWOT, BCG matrix, Porter’s Five Forces, Balanced Scorecard, Value Chain
Organizational Concepts: Component Business Models, Decision rights, Core competencies, Outsourcing
Supply Chain Structures: Conceptual vs. physical supply chains, tiers, inventory turnover, cycle time, demand chain, cross-docking
Learning & Innovation: Classical conditioning, operant learning, innovation vs. creativity
Change Management: Crossover approach, Lewin’s change model (unfreeze/change/refreeze), strategic transformation
Additional Topics: Quality control (ISO, Juran), risk (business vs. financial), staff vs. line functions, trustee responsibility
Referenced case studies include IBM (Lou Gerstner), Duke Hospital, Deloitte, Bank of America to Wells Fargo, and others used in class discussion. This makes it especially relevant for students needing real-case linkage to theoretical content.
Perfect for students in:
Business Administration & Organizational Management
Strategic Planning, Consulting & Project Management
Human Resource Management and Leadership courses
Undergraduate and MBA preparatory programs
Operations, Quality, and Nonprofit Management tracks
Keywords:
ARE 112, midterm review, decision making, strategic tools, ethics, types of power, stakeholder theory, value chain, SWOT analysis, BCG matrix, Porter’s five forces, change models, Monte Carlo method, innovation, organizational behavior, supply chain tiers, demand chain, decision rights, trustee liability, crossover strategy, Duke Hospital, IBM case, quality standards
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ARE 112 MT 2 2025/2026 Exam
Questions and Correct Answers | New
Update
When we combine at TPS and an operation information system we get an -
🧠ANSWER ✔✔ERP
From our discussion on the IBM book, what did Lou mention was the most
important component of a business to be successful? - 🧠ANSWER
✔✔culture
Which of the following terms is not related to the other terms from one of
our discussions in class:
- market alignment
- creativity
- new products
,- new processes - 🧠ANSWER ✔✔market alignment
In the beginning of the IBM book we saw a good example of a manager
dealing with: - 🧠ANSWER ✔✔both micro and maco problems
From class we mentioned that at IBM when the hardware sales force did
not follow up with the software salesforce we had an example of -
🧠ANSWER ✔✔suboptimization
In the Duke Hospital case the development of the "clinical pathways" is an
example of the use or development of: - 🧠ANSWER ✔✔a BPR
The topic from class on "decision rights" was from the topic of: - 🧠ANSWER
✔✔management tools
From our discussion on the balanced scorecard we - 🧠ANSWER
✔✔commented that the "term" balance was NOT used to give
approximately equal importance to each component
In our discussion on strategic thinking we saw several examples from IBM
in class. The terms from IBM as to what supports their mission and vision
was: - 🧠ANSWER ✔✔business model
, In our discussion on change management in class we used the term "low
hanging fruit" to describe: - 🧠ANSWER ✔✔momentum towards change
In the IBM book, Lou said the solution was about - 🧠ANSWER
✔✔execution
A fair and equable distribution of benefits and harms is a characteristic or
benefits of the: - 🧠ANSWER ✔✔justice rules
The terms develop and diffuse and integrate are related to our discussion
on - 🧠ANSWER ✔✔innovation
The willingness of a person or a group to have confidence in the goodwill
and competency of another person or organization even though this
willingness puts them at risk is: - 🧠ANSWER ✔✔trust
A disciplined approach to only do what matters is - 🧠ANSWER ✔✔strategic
intent
Impact of culture and loss of existing benefits and disturb existing social
networks are examples from class of - 🧠ANSWER ✔✔threats to the change
process
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