MGT 3013 Ronald Anderson - Exam 1
UPDATED Exam Questions and
CORRECT Answers
Organization - CORRECT ANSWER - A group of people who work together to achieve
some specific purpose
Management - CORRECT ANSWER - 1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
Efficiency - CORRECT ANSWER - "the means" - the means of attaining an organization's
goals
-use resources wisely and cost-effectively
Effectiveness - CORRECT ANSWER - "the ends" - achieve results, make decisions, and
successfully carry them out to achieve an organization's goals.
Multiplier effect - CORRECT ANSWER - Adding value that is multiplied throughout an
organization that is greater than the contribution of one person alone.
The 4 Principle Functions of Management - CORRECT ANSWER - POLC
Planning
Organizing
Leading
Controlling
Planning - CORRECT ANSWER - setting goals and deciding how to achieve them
,Organizing - CORRECT ANSWER - arranging tasks, people and other resources to
accomplish the work
Leading - CORRECT ANSWER - motivating, directing, and influencing people to work
hard to achieve goals
Controlling - CORRECT ANSWER - monitoring performance, comparing it with goals,
and taking corrective action as needed.
Competitive Advantage - CORRECT ANSWER - the ability to produce outcomes more
EFFECTIVELY than competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - CORRECT ANSWER - 1. Preference for the firms output
2. Cost advantage
Preference for the Firm's Output - CORRECT ANSWER - Value added - people choose
the firm's output over others/people are willing to pay more/premium
Cost Advantage - CORRECT ANSWER - Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will -- markets are the only
thing putting pressure on prices.
Economies of Scale - CORRECT ANSWER - [Efficiency] put downward pressure on
costs as output increases (bulk buying)
, Economies of Scope - CORRECT ANSWER - [Efficiency] reduced cost because of shared
activities (similar packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly -
shared activity)
Brand Name Recognition - CORRECT ANSWER - [Effectiveness] Association between
brand and something positive (Celebrity spokesperson, etc.)
Brand Loyalty - CORRECT ANSWER - [Effectiveness] the desire to pay more for the
same product (Switching costs)
Switching Costs - CORRECT ANSWER - costs that make customers reluctant to switch to
another product or service
Supply Channel - CORRECT ANSWER - [Efficiency & Effectiveness] Raw resources to
end users (integrated supply channel - downward pressure on costs OR flexible supply channel)
Integrated Supply Chain - CORRECT ANSWER - all the activities that organizations
undertake to deliver value to the customer, such as working with suppliers and distribution
through convenient channels
Flexible Supply Chain - CORRECT ANSWER - Components of a supply system are
produced in different parts of the world then brought together to meet consumer needs, allowing
companies to choose from where they attain parts to produce goods.
Ability to Innovate - CORRECT ANSWER - taking a product [Effectiveness] or a process
[Efficiency] and creating new cash flow from that
-Innovating products increase prices
-Innovating processes decreases costs
Other examples of differentiation - CORRECT ANSWER - -Unique, Specialized, and
Valuable Assets
UPDATED Exam Questions and
CORRECT Answers
Organization - CORRECT ANSWER - A group of people who work together to achieve
some specific purpose
Management - CORRECT ANSWER - 1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
Efficiency - CORRECT ANSWER - "the means" - the means of attaining an organization's
goals
-use resources wisely and cost-effectively
Effectiveness - CORRECT ANSWER - "the ends" - achieve results, make decisions, and
successfully carry them out to achieve an organization's goals.
Multiplier effect - CORRECT ANSWER - Adding value that is multiplied throughout an
organization that is greater than the contribution of one person alone.
The 4 Principle Functions of Management - CORRECT ANSWER - POLC
Planning
Organizing
Leading
Controlling
Planning - CORRECT ANSWER - setting goals and deciding how to achieve them
,Organizing - CORRECT ANSWER - arranging tasks, people and other resources to
accomplish the work
Leading - CORRECT ANSWER - motivating, directing, and influencing people to work
hard to achieve goals
Controlling - CORRECT ANSWER - monitoring performance, comparing it with goals,
and taking corrective action as needed.
Competitive Advantage - CORRECT ANSWER - the ability to produce outcomes more
EFFECTIVELY than competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - CORRECT ANSWER - 1. Preference for the firms output
2. Cost advantage
Preference for the Firm's Output - CORRECT ANSWER - Value added - people choose
the firm's output over others/people are willing to pay more/premium
Cost Advantage - CORRECT ANSWER - Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will -- markets are the only
thing putting pressure on prices.
Economies of Scale - CORRECT ANSWER - [Efficiency] put downward pressure on
costs as output increases (bulk buying)
, Economies of Scope - CORRECT ANSWER - [Efficiency] reduced cost because of shared
activities (similar packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly -
shared activity)
Brand Name Recognition - CORRECT ANSWER - [Effectiveness] Association between
brand and something positive (Celebrity spokesperson, etc.)
Brand Loyalty - CORRECT ANSWER - [Effectiveness] the desire to pay more for the
same product (Switching costs)
Switching Costs - CORRECT ANSWER - costs that make customers reluctant to switch to
another product or service
Supply Channel - CORRECT ANSWER - [Efficiency & Effectiveness] Raw resources to
end users (integrated supply channel - downward pressure on costs OR flexible supply channel)
Integrated Supply Chain - CORRECT ANSWER - all the activities that organizations
undertake to deliver value to the customer, such as working with suppliers and distribution
through convenient channels
Flexible Supply Chain - CORRECT ANSWER - Components of a supply system are
produced in different parts of the world then brought together to meet consumer needs, allowing
companies to choose from where they attain parts to produce goods.
Ability to Innovate - CORRECT ANSWER - taking a product [Effectiveness] or a process
[Efficiency] and creating new cash flow from that
-Innovating products increase prices
-Innovating processes decreases costs
Other examples of differentiation - CORRECT ANSWER - -Unique, Specialized, and
Valuable Assets
