Chapter 9

The CEO of a firm recently learned that there is no consistent system that captures knowledge about various aspects of the business. Employees have been passing along information without formally codifying that data into training materials because the context is critically important to instructions and is frequently difficult to describe. What type of information has the firm been relying on?

• Tacit

• Explicit

• Absorptive Capacity

• Working

A firm's marketing team is engaged in recognizing market indicators that can signal profitable opportunities. Once the team identifies these indicators, they report back to employees about these insights and collaborate on how the information can be applied to develop new products. What does this example represent?

• stored capacity

• absorptive capacity

• tacit knowledge

• explicit knowledge

A nonprofit organization has strict policies about fundraising and how the money is recorded and used for projects. These policies are part of a larger system of rules and regulations promoted by an international fundraising association. Which type of controls does this organization use?

• Interpersonal

• Bureaucratic

• Input

• Output

A U.S. manufacturer recently adopted a new quality system to compete with a new market entrant from Asia. The manufacturer's quality system requires that it consistently limit defects to 3.4 per million. What type of output control is the firm using?

• growth

• market share

• productivity

• six sigma

A U.S. firm has recently expanded into a foreign market. To promote the firm's culture in the new market, executives are mentoring subordinates to prepare them to establish the subsidiary. What type of control are the executives using?

• Bureaucratic

• Input

• Interpersonal

• Quality Control

A firm's CEO provides quarterly investor updates on profits. What type of control is the CEO reporting on?

• Input

• Output

• Bureaucratic

• Interpersonal

A firm has operated for over 100 years. During that time, the values of the founding family have guided all aspects of the business, including the importance placed on employees being members of the family. What does this describe?

• traditions

• customs

• culture

• background

A start-up firm is experiencing intense competition from new market entrants. To maintain its market share, the firm will need to change the way its designs and delivers its products to customers. Who should initiate this change to effectively redirect the firm's strategy?

• top management

• middle management

• bottom management

• line managers

A firm's strategy formulation is based on the principle that its purpose is to maximize financial returns for its owners. All decisions are made to increase profits and overall financial value. Which model of strategy formulation does this firm use?

• stakeholder

• shareholder

• global

• supplier

An energy firm has achieved the highest market share in three of its five markets in Europe, Asia, and Africa. To do this, the firm has focused on continued exploration of natural energy sources and uses for post-consumer use plastics. What type of strategy implementation does this firm represent?

• prospectors

• analyzers

• reactors

• defenders