MGT 3013 - RONALD ANDERSON NEWEST ACTUAL
EXAM 2 WITH COMPLETE QUESTIONS AND
CORRECT ANSWERS //VERIFIED//GRADED
A+//LATEST UPDATE 2026
Organization
A group of people who work together to achieve some specific purpose
Management
1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's
resources
Efficiency
"the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
Effectiveness
"the ends" - achieve results, make decisions, and successfully carry them
out to achieve an organization's goals.
Multiplier effect
Adding value that is multiplied throughout an organization that is greater
than the contribution of one person alone.
The 4 Principle Functions of Management
POLC
Planning
Organizing
Leading
Controlling
,Planning
setting goals and deciding how to achieve them
Organizing
arranging tasks, people and other resources to accomplish the work
Leading
motivating, directing, and influencing people to work hard to achieve
goals
Controlling
monitoring performance, comparing it with goals, and taking corrective
action as needed.
Capital
Financing (Loans), Equity (Stocks/Ownership), Retained Earnings (Previous
year's profits)
-the purpose of a capital investment is to increase cash flows
-only time capital should be used as a cash flow is in the case of a
startup.
-capital investments = competitive advantage
-" that yield a better cash flow = better competitive advantage
Equity
-Ownership/property
-Dividends
Debt
-Interest
-Loans and Bonds
Retained Earnings
-last year's after tax profit
-growth
, Non-Competitive Market Strategies
-demographic trends
-international events
-technological change
-legal/political conditions
-economic climate
-cultural trends
Porter's Five Forces
Model developed by strategy expert Michael Porter that identifies five
competitive forces that influence planning strategies.
-threat of rivalry
-" buyers
-" suppliers
-" substitutes
-" entrants
Threat of Rivalry
the intensity of competition among a firm's direct competitors
Threat of Buyers
powerful buyers can 'squeeze' (lower profits) the focal firm by demanding
lower prices and/or higher levels of quality and service
Threat of Suppliers
The extent to which firms that make critical resources available have
leverage over the industry
Threat of Substitutes
the idea that products or services available from outside the given
industry will come close to meeting the needs of current customers
Threat of Entrants
EXAM 2 WITH COMPLETE QUESTIONS AND
CORRECT ANSWERS //VERIFIED//GRADED
A+//LATEST UPDATE 2026
Organization
A group of people who work together to achieve some specific purpose
Management
1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's
resources
Efficiency
"the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
Effectiveness
"the ends" - achieve results, make decisions, and successfully carry them
out to achieve an organization's goals.
Multiplier effect
Adding value that is multiplied throughout an organization that is greater
than the contribution of one person alone.
The 4 Principle Functions of Management
POLC
Planning
Organizing
Leading
Controlling
,Planning
setting goals and deciding how to achieve them
Organizing
arranging tasks, people and other resources to accomplish the work
Leading
motivating, directing, and influencing people to work hard to achieve
goals
Controlling
monitoring performance, comparing it with goals, and taking corrective
action as needed.
Capital
Financing (Loans), Equity (Stocks/Ownership), Retained Earnings (Previous
year's profits)
-the purpose of a capital investment is to increase cash flows
-only time capital should be used as a cash flow is in the case of a
startup.
-capital investments = competitive advantage
-" that yield a better cash flow = better competitive advantage
Equity
-Ownership/property
-Dividends
Debt
-Interest
-Loans and Bonds
Retained Earnings
-last year's after tax profit
-growth
, Non-Competitive Market Strategies
-demographic trends
-international events
-technological change
-legal/political conditions
-economic climate
-cultural trends
Porter's Five Forces
Model developed by strategy expert Michael Porter that identifies five
competitive forces that influence planning strategies.
-threat of rivalry
-" buyers
-" suppliers
-" substitutes
-" entrants
Threat of Rivalry
the intensity of competition among a firm's direct competitors
Threat of Buyers
powerful buyers can 'squeeze' (lower profits) the focal firm by demanding
lower prices and/or higher levels of quality and service
Threat of Suppliers
The extent to which firms that make critical resources available have
leverage over the industry
Threat of Substitutes
the idea that products or services available from outside the given
industry will come close to meeting the needs of current customers
Threat of Entrants
