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COEB 432:PRINCIPLES OF MANAGEMENT

SEMESTER 2, 2013/2014
TEST 1
NAME:______________________________ SID. NO:__________________ SEC:_____
ANSWER ALL QUESTIONS
Section A: True/ False Questions [4 marks]
1.

Goals need not be linked to a time frame but should be measurable.

2. Business ethics comprises the moral principles and standards that guide behavior in the
world of business.

3. Issues such as CEO pay, and underpaid workers make it clear that business needs to
improve its efforts to be ethical.
4. NAFTA created one of the world's largest trading blocs.

Section B: Multiple Choice Questions[6 marks]

5. Which of the following describes good plans in organizations?
A. Organizational plans are set and firm.
B. An organizational plan describes what managers decide to do but not specifically how
they will do it.
C. An organizational plan provides the framework, focus, and direction required for a
meaningful effort.
D. Organizational plans may be formal or informal.
E. Actually organizational improvements are best accomplished in the moment without a
plan.
6. Plans
A. are targets a manager wants to reach.
B. are actions or means the manager intends to use to achieve goals.
C. are specific to different industries.
D. are inappropriate when resources are scarce.
E. do not change over time.

7.

Implementation of selected goals and plans will be most successful when

A. only managers participate in the planning process.
B. limited resources are provided for implementation.
C. the goals and plans are linked to other organizational systems.
D. the employees remain skeptical of the plan.
E. employees are brought into the process just after the decision to implement is made.

8. __________encourageslowenergyuse,smallerresourcequantities,environmentally
appropriateproductiontechnologiesandprecutswithecofriendlypackagingand
recyclablematerials.
A.Coalitionbuilding
B.Stonewalling
C.Ecocentricmanagement
D.DFE
E.Strategicretreat
9. Today's managers operate in an environment that is _______ complex and competitive
and offers more ______________.
A. more, profit
B. less, profit
C. more, opportunities
D. less, opportunities
E. less, ROI
10.

Pressure for global integration includes

A. pressures to reduce costs.
B. variances in traditional practices.
C. political demands imposed by host countries.
D. consumer preferences.
E. legal demands imposed by host countries.

Section C: Scenario Questions[20 marks]

11.

Boeing is the worlds leading aerospace company and the largest manufacturer of
commercial jetliners and military aircraft combined, with capabilities in rotorcraft,
electronic and defense systems, missiles, satellites, launch vehicles and advanced
information and communication systems (Boeing, 2006).
(a) List down TWO ways how Boeings labor (human resource) could help Boeing to be
the worlds leading aerospace company.
[2 marks]

12.

(b) Give ONE possible opportunity and ONE possible threat of Boeing as a leading
aerospace company.
[4 marks]
Identify the corporate strategy of each of the company below.
(a) In 1995, Walt Disney Company purchase Capital Cities/ABC , a television network.
[1
mark]
(b) GE, which began by making lighting products, diversified into such unrelated areas as
plastics, broadcasting, and financial services.
[1 mark]
(c) McDonald's opened McCafes that sell various types of specialty coffees within its
stores.
[1 mark]

13.

Identify the business strategy pursued by the company below.

(a) PepsiCo spends millions on advertisements to create brands .

[1 mark]

(b) Timex Watch makes inexpensive but reliable watches sold throughout the U.S.
[1 mark]
14.

Google made a pledge to investors when it went public to reserve 1% of its profit and
equity to make the world a better place. This action falls into which category of
Corporate Social Responsibility?
[1 mark]

15.

Microsoft focuses on providing software, training, business opportunities, and

technological advancements to areas of the world and communities that might not
otherwise receive such opportunities.
Give TWO potential business benefits from the implementation of these corporate social
responsibility to Microsoft.
[4 marks]

16.

What is the mode of entry to other countries adopted by the company below?
(a) Burger King provides the use of its name plus its operating know-how to companies
in Greece in return for an upfront fee plus a percentage of the profits. [1 mark]
(b) Namibia has a law that prohibits foreign companies from ownership of firms within
the country. In order to have a presence in that country, a US company will share the
risks and rewards by starting a new enterprise together in Namibia. [1 mark]

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(c) Nike agrees with a Pakistani company that the Pakistani company can manufacture
Nike running shoes and pay Nike a fee to distribute them in Pakistan. [1 mark]
17.

To compete in the global marketplace, GE consists of independent company

subsidiaries in other countries and provides great discretion to those subsidiaries to
respond to local conditions.
What is this global strategy called?

[1 mark]

ANSWERS-SECTIONS A AND B
1.F

2.T

3.T

4.T

5.C

6.B

7.C

8.C

9.C

10.A

ANSWERS-SECTION C
11.a. Rare, immitable,add value
b. S: financially strong
T: competitors innovative ideas
12. a. vertical integration
b.conglomerate diversification
c. concentration
13. a. differentiation
b. low cost
14. philanthropy
15. a. creating image
b. employee motivation
16. a. franchising
b. joint venture
c. licensing
17. multinational