Fundamentals of Management Essay

1) One of Zappos’ key features is free returns on shoes that don’t fit. Answer: TRUE Explanation: An online shoe store needs to be allow customers to â€Å"try on† shoes. Zappos does this with free returns and no questions asked. Diff: 1 Page Ref: 29 Objective: 2.1 2) One element of Zappos’ success is that it has limited selection, focusing on quality rather than a great number of different brands and styles. Answer: FALSE Explanation: Zappos has an enormous selection. Selection is one of the advantages it has over conventional shoe stores. Diff: 2 Page Ref: 29 Objective: 2.1 3) One of Zappos’ goals is to deliver WOW to its customers. Answer: TRUE Explanation: Delivering WOW is one of Zappos’ ten corporate values. Diff: 2 Page Ref: 29 Objective: 2.1 4) A major cause of the shutdown of a BMW assembly plant in South Carolina in 2010 was a bank crisis in Iceland. Answer: FALSE Explanation: A volcanic eruption in Iceland was the cause of the shutdown, preventing deliveries to the plant. Diff: 2 Page Ref: 30 AACSB: Dynamics of the global economy Objective: 2.1 Learning Outcome: Identify the fundamental concepts and issues of international business and management 5) The external environment of an organization includes factors and forces that can affect how the organization operates. Answer: TRUE Explanation: The external environment includes any outside agent that can influence the performance of the organization. Diff: 2 Page Ref: 30 AACSB: Multicultural and diversity understanding Objective: 2.1 Learning Outcome: Describe the components of the management environment 6)  The components of an organization’s external environment include a technological component and a political component. Answer: TRUE Explanation: The technological component may include such things as new software, while the political component may include office holders who directly affect a company’s business. Diff: 2 Page Ref: 30 AACSB: Analytic skills Objective: 2.1 Learning Outcome: Describe the components of the management environment 7) The sociocultural component of the external environment of an organization includes trends and traditions, but not basic attitudes and values. Answer: FALSE Explanation: The sociocultural component of the external environment includes all beliefs and values as well as attitudes and behavioral patterns. Diff: 1 Page Ref: 30 Objective: 2.1 Learning Outcome: Describe the components of the management environment 8) The overall trend toward globalization is part of the political component of an organization’s external environment. Answer: FALSE Explanation: Globalization is part of the global component of an organization’s external environment. Diff: 2 Page Ref: 31 AACSB: Dynamics of the global economy Objective: 2.1 Learning Outcome: Identify the fundamental concepts and issues of international business and management 9) High interest rates have been identified as a major cause of the economic meltdown that began in 2008. Answer: FALSE Explanation: Low interest rates, rather than high interest rates, have been named as a cause of economic problems. Diff: 2 Page Ref: 31 AACSB: Dynamics of the global economy Objective: 2.1 Learning Outcome: Identify the fundamental concepts and issues of international business and management 10) Prior to the recession that began in 2008, many businesses became highly leveraged, which is another term for a company with a high debt-to-assets ratio. Answer: TRUE Explanation: With  cheap credit, companies tended to take on too much debt.