MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Scenario A. Luna is a manufacturer of fashion jewelry. The company has been operating for the past decade and is well known. When the CEO, Aimee, was asked by a local newspaper during an interview about the secret to her success, she stated that there were several reasons. She makes sure that the company always introduces new styles of jewelry to suit changes in tastes and stay a step ahead of her competitors, and the company offers its customers the best by using fine-quality semiprecious stones in artful settings. She also stated that the company's salespersons cater to customers individually to help them purchase jewelry appropriate for their personal style. Luna has its own exclusive website, which can be accessed anywhere in the world, and customers are promised that they will get what they order within 36 hours.

5) Which of the following skills is Aimee showing by taking the time to talk with the person interviewing her for the local newspaper?

A) conceptual and decision skills

B) monitoring skills

C) technical skills

D) negotiating skills

E) interpersonal skills

Scenario B: Meyer works for a new start-up technology firm, which has six highly opinionated but very committed employees. The owner of the firm, Zalman, strongly believes that he should make every decision since he is the boss. But Zalman often jumps to conclusions and does not even take time to diagnose the problem at hand because he does not like to ask any of the employees for suggestions. Moreover, Zalman's decisions are usually focused on short-term rather than long-term benefits and costs. At this point, most people in the firm agree that the decision making of the owner is going to destroy the young firm before it really gets started.

6) The fact that Zalman's decisions are usually focused on short-term benefits and costs rather than the long term is an example of

A) the illusion of control.

B) social loafing.

C) discounting the future.

D) vigilant decision making.

E) goal displacement.

Scenario D: A global cosmetics company called Nature's Beauty is considering its corporate strategy. Several members of its board of directors believe they have the "perfect" strategy for the company. Bill believes that the best option is for Nature's Beauty to stay on its current track of offering only organic cosmetics to customers who like organic products. Chita wants the company to expand by purchasing the manufacturing plants that produce the Nature's Beauty products. Another director, Manuel, wants to build the company by adding related products, such as skin care and perfume, to be sold alongside its current products. Finally, the original owner of the company, Nuri, wants to expand the company by doing something completely new, such as building restaurants or perhaps starting an entertainment park.

7) Which of the following corporate strategies is Nuri advocating?

A) concentration

B) vertical integration

C) differentiation

D) concentric diversification

E) conglomerate diversification

8) Once a situational analysis has been completed, the next step for organizations is to use what they have learned to

A) create a budget that they can use to monitor and control their plans.

B) generate a single, main goal for the organization to reach by year's end.

C) select and implement the best plan that will help them achieve their goal.

D) take simple, meaningful, attractive, resourceful, and tactical actions.

E) create alternative goals and alternative actions for attaining each goal.