Essentials of Contemporary Management, 3/e
Gareth R. Jones, Texas A&M University
Jennifer M. George, Rice University

Directions: Write the letter of the best answer in the space provided.



1

The process of identifying and selecting goals and actions for the organization to take is called:
A)organizing.
B)planning.
C)leading.
D)controlling.
2

A broad statement of the organization's purpose, products, and customers is called the organization's:
A)mission statement.
B)differentiation strategy.
C)low-cost strategy.
D)synergy.
3

The accounting department of an organization is an example of the organization's:
A)division.
B)profit-center.
C)function.
D)vertical integration.
4

Top managers of the organization are primarily responsible for which type of planning?
A)Business-level
B)Divisional-level
C)Functional-level
D)Corporate-level
5

Divisional managers are primarily responsible for which type of planning?
A)Business-level
B)Corporate-level
C)Functional-level
D)None of these
6

Short-term plans are typically for the period of:
A)ten years or more.
B)five or more years.
C)one to five years.
D)one year or less.
7

When an organization annually revises its five-year plan, this is called a(n):
A)low-cost plan.
B)rolling plan.
C)differentiation plan.
D)focused plan.
8

The plan created by NASA to land a man on the moon and return him to earth safely was an example of what type of plan?
A)Programmed
B)SOP
C)Single-use
D)Strategic alliance
9

Another term for the functional level of management is the ________ level.
A)top
B)horizontal
C)department.
D)vertical
10

In terms of a SWOT analysis, a company that is planning to sell its product to new market segments is basing its decision primarily on its:
A)potential weaknesses.
B)potential threats.
C)potential strengths.
D)potential opportunities.
11

When BMW produces expensive cars that are aimed at upper-income customers, this represents what type of strategy?
A)Low-cost strategy
B)Focused differentiation strategy
C)Focused low-cost strategy.
D)Stuck-in-the-middle strategy
12

When PepsiCo purchased Frito Lay snack foods to expand from its beverage base, this was an example of:
A)diversification.
B)a global strategy.
C)vertical integration.
D)a strategic alliance.
13

When General Electric moved away from making appliances to purchase NBC Broadcasting Company, this was an example of:
A)diversification.
B)a strategic alliance.
C)vertical integration.
D)a global strategy.
14

When Hilton Hotels allows an Austrian company to use its name and its procedures to set up a hotel in Vienna, this is an example of:
A)synergy.
B)scenario planning.
C)franchising.
D)a low-cost strategy.
15

When Du Pont, a large US chemical company, signs a contract with a company in Germany that allows that company to produce Du Pont's Teflon and sell it in Germany in return for a fee, this is an example of:
A)franchising.
B)being stuck-in-the-middle.
C)backward integration.
D)licensing.