Exam 2: Making Decisions

A few decades ago, Walmart opened stores in Germany. After a few years, it closed all of them. The shopping habits of Europeans differed so much from that of Americans that the stores could not become profitable. What was Walmart's mistake?

Whenever anyone praises Mark for his good performance, he has the tendency to attribute his success to his personal qualities such as his ability to thrive under pressure and his eye for detail. However, any negative performance feedback is always met with excuses such as unsupportive team members or insufficient time. This is an example of the ________.

Max is planning to go away to college next year and is currently trying to figure out to which colleges he should apply. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decision-making process, these represent Max's ________.

In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept; there was no precedent for this type of product. Under these circumstances, Apple faced a situation of ________.

A programmed decision is a repetitive decision that can be handled by a routine approach.

The Prime Minister of Transylvania prefers darkened rooms, flinches in bright light, and has unusually long incisors. Despite his long and successful career, his political opponents claim he is a vampire. This is an example of the ________.

A policy is an explicit statement that tells a manager what can or cannot be done.

Give an example of the use of bounded rationality. The example can be fictitious as long as it includes all the elements of bounded rationality.

First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems.

Unstructured problems ________.

Ridership on the city's public transportation buses has fallen for three weeks in a row. This is ________.

Managers need to understand cultural differences to make effective decisions in today's fast-moving world.

Lila believes the global climate is changing. Every storm, every volcano eruption, every earthquake is, in her mind, evidence of this climate change. Lila has fallen victim to ________ bias.

What is meant by bounded rationality and satisficing?

It is assumed that a rational decision maker ________.

Dylan must choose among four candidates to fill his open accounting clerk position. If Dylan uses rational decision making, he will ________.

________ are straightforward, familiar, and easily defined.

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

Managers use decision-making in every function, from planning to controlling.

Ian is a plant manager in a multi-site corporation. He frequently deals with situations involving new customers and new products. These are often ________.