Problem 1: A manager performs a financial analysis of each alternative in order to determine which alternative is most likely to impact the organization's profitability. This manager is focusing on which criterion for decision-making?
- Practicality
- Ethicalness
- Economic feasibility
- Dialectical inquiry
- Legality
Problem 2: According to the administrative model of decision making, if managers cannot possibly specify all of the possible alternatives to a decision, this is the result of:
- incomplete information.
- bounded rationality.
- an optimum decision.
- brainstorming.
Problem 3: PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This was an example of:
- horizontal integration.
- vertical integration.
- a low-cost strategy.
- a global strategy.
- a diversification strategy.
Problem 4: The explosion of the space shuttle Challenger is an example of poor managerial decision-making wherein managers neglected the criterion of __________.
- ethicalness
- practicality
- legality
- economic feasibility
- devil's advocacy
Problem 5: GE Financial Services is an example of which level of management operations for General Electric Company?
- Functional
- Corporate
- Divisional
- Departmental
Problem 6: When managers cannot assign probabilities of future occurrence to possible alternatives to a decision, this is known as __________.
- certainty
- risk
- bounded rationality
- uncertainty
- dialectical inquiry
Problem 7: An organization creates a list of possible future forecasts of business situations and creates a plan to respond to each of these forecasts. This is known as __________ planning.
- synergy
- ad hoc
- divisional-level
- scenario
- functional
Problem 8: In the Five Forces Model, the type of competitive activity that exists between organizations is known as the:
- potential for entry into the industry.
- threat of substitute products.
- power of customers.
- level of rivalry.
- power of suppliers.
Problem 9: When an organization updates its five-year plan annually in order to take into account changing conditions within the organization and in the organization's external environment, this is known as which type of plan?
- Inflexible
- Functional
- Rolling
- Scenario
- SWOT
Problem 10: When a manager makes a decision based on a generalization from a very small sample of information, this is known as:
- dialectical inquiry.
- systematic errors.
- devil's advocacy.
- representative bias.
- the illusion of control.