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ARE 112 Midterm 2 (100+ Solved Q&A) – Decision Making, Strategy, Teams, Ethics | 2025/2026

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This fully-solved ARE 112 Midterm 2 study document provides over 100 exam-accurate questions and answers, revised and aligned for the 2025/2026 academic year. It is an essential review tool for mastering organizational concepts, managerial thinking, and decision-making frameworks. Each concept is clearly explained and includes examples relevant to real business cases and theory-based applications. Key areas covered include: Organizational Restructuring: downsizing, smart-sizing, suboptimization Supply Chain vs. Value Chain: tier systems, primary and secondary activities Business Patterns: buy-side, sell-side, and in-the-middle operations Management Control Systems: centralized vs. decentralized, vertical vs. horizontal decision-making Learning & Behavior Models: classical and operant conditioning, team dynamics, types of teams Strategic Tools: 4 Ps, BCG matrix, SWOT, Porter’s Five Forces, Balanced Scorecard Decision Making: structured/unstructured processes, bounded rationality, DSS, GDS, EIS, Delphi Change Management & Power Structures: coercive, referent, expert power; Lewin’s model, Crossover method Human Resources & Job Design: SKAs, FLSA (exempt/nonexempt), Family and Medical Leave Act Ethics & Stakeholders: agency theory, societal and organizational ethics, solving ethical dilemmas Organizational Design: functional, divisional, and problem-solving structures; span of control Strategic Thinking Frameworks: strategic intent, intelligent opportunism, systems perspective Innovation & Creativity: R&D, Post-it case, monitoring change, linking ideas to outcomes Ideal for students in: Business Administration & Management Organizational Behavior, Leadership & Strategy courses Undergraduate & MBA Prep Programs Human Resources, Operations, and Consulting Tracks Courses featuring real-world case studies (IBM, Taco Bell, Duke Hospital, Deloitte) This document is especially useful for students preparing for midterms, assignments, or discussion-based exams and can support both memorization and applied reasoning in business settings. Keywords: ARE 112, midterm exam, business strategy, decision making, organizational structure, SWOT analysis, BCG matrix, Porter's five forces, power types, Lewin’s model, balanced scorecard, job design, human resources, ethics, stakeholder theory, innovation, strategic management, agency theory, DSS, ERP, change models, teamwork, MBA prep, operational control

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ARE 112 Midterm 2 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update




Restructuring - 🧠ANSWER ✔✔-reorganizing the legal, ownership,

operational or other structures of an organization for optimizing reasons:

profit, bankruptcy, mergers, etc.

-tends to be running away from the solution vs running to a solution


Downsizing, Rightsizing, Smart-sizing - 🧠ANSWER ✔✔-use of permanent

personnel, structural, or strategy changes in an attempt to improve

efficiency and effectiveness


Suboptimization - 🧠ANSWER ✔✔-focus too much on one thing that results

in a decrease for the entire organization

,Supply Chain - 🧠ANSWER ✔✔-conceptual model that focuses on

production and delivery of services

-Material: tier 3, tier 2, tier 1

enterprise

-Finished goods: distributors, retailers and customers


Value Chain - 🧠ANSWER ✔✔-supply chain but more architectural


-primary activities: logistics, operations, marketing, sales, service

-secondary: firm, infrastructure, HR, management

-Primary+secondary= profit margin


Core Competencies - 🧠ANSWER ✔✔-functions or capabilities that are most

efficient, optimized or provide a competitive advantage

-want to do these ourselves


Outsourcing - 🧠ANSWER ✔✔-ideal to have external services provide

activities


Patterns in Enterprise - 🧠ANSWER ✔✔Buy-Side Patterns


Sell-Side Patterns

, In the Middle Patterns


Buy-Side Pattern - 🧠ANSWER ✔✔-deal with suppliers


-procurement: simplest business pattern

> one buyer buys something from one seller

-direct/indirect procurement:

>direct: direct material that goes into your product

>indirect: don't go into product but overhead


Sell-Side Pattern - 🧠ANSWER ✔✔-order management and fulfillment:

offering product catalogs, taking orders, etc

-channel management: working with distributors, retailers, etc.

-customer relationship management: marketing, sales, customer service


In the Middle Patterns - 🧠ANSWER ✔✔-design and engineer: figure out

how to make stuff

-manufacturing: actually making stuff

-HR, financing, MIS: assembling and taking care of people who do

everything else



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