Business Leadership Exam Review PDF

Business Leadership Exam Review Multiple Choice Concepts - Section A ​ Prejudice ○​ Prejudice refers to preconceived opinions or attitudes about an individual or group, often based on stereotypes or incomplete information, without actual experience or factual basis....

Business Leadership Exam Review Multiple Choice Concepts - Section A ​ Prejudice ○​ Prejudice refers to preconceived opinions or attitudes about an individual or group, often based on stereotypes or incomplete information, without actual experience or factual basis. ​ Discrimination ○​ Discrimination involves unfair treatment or actions toward individuals or groups based on characteristics such as race, gender, age, or religion, rather than merit or qualifications. ​ Stereotyping ○​ Stereotyping is the oversimplified and generalized belief about a group of people that ignores individual differences. ​ Selective Perception ○​ Selective perception occurs when individuals focus only on information that aligns with their existing beliefs while ignoring conflicting data. ​ Projection ○​ Projection involves attributing one's own thoughts, feelings, or motives to others, often unconsciously. ​ The Halo Effect ○​ The halo effect occurs when an individual's overall impression of a person or entity positively influences their perception of specific traits. ​ The Glass Ceiling Effect ○​ The glass ceiling effect describes the unseen barriers that prevent women and minorities from advancing to higher levels of leadership and management in organizations. ​ Bias ○​ Bias refers to a tendency, inclination, or prejudice for or against something or someone, often in a way that is considered unfair. ​ Three Branches of Classical Leadership  ○​ Classical leadership theories include autocratic (directive and centralized decision-making), democratic (inclusive and participative), and laissez-faire (hands-off and delegative) styles. ​ Types of Power (Position/Personal) ○​ Position power derives from an individual's role or authority in an organization, while personal power stems from an individual’s personal attributes, expertise, or relationships. ​ Globalization ○​ Globalization is the process of increasing interconnectedness and interdependence of the world’s economies, cultures, and populations, driven by international trade, investment, and technology. ​ Ethics ○​ Ethics refers to moral principles that guide behavior, defining what is right or wrong in personal and professional contexts. ​ Corporate Social Responsibility (Different Viewpoints) ○​ Corporate social responsibility (CSR) involves businesses addressing social, environmental, and economic impacts, with viewpoints ranging from minimalist (focusing solely on profits) to maximalist (embracing social and environmental stewardship). ​ Norms ○​ Norms are shared expectations or rules within a group or society that guide acceptable behavior. ​ Personal Values ○​ Personal values are deeply held beliefs that influence an individual’s behavior, decisions, and interactions. ​ Ethical Imperialism ○​ Ethical imperialism is the belief that one’s own cultural ethics should be universally applied, regardless of differing local customs or values. ​ Cultural Relativism ○​ Cultural relativism is the principle of understanding and evaluating cultural practices based on that culture's values and norms rather than imposing external standards. ​ The Communication Process ○​ The communication process involves the transmission of a message from a sender to a receiver through a chosen channel, with feedback to ensure understanding. ​ Define Organization ○​ An organization is a structured group of individuals working together to achieve specific goals or objectives. ​ Whistleblower ○​ A whistleblower is someone who reports unethical or illegal activities within an organization, often at personal risk. ​ Maslow's Hierarchy of Needs ○​ Maslow's hierarchy of needs is a motivational theory that prioritizes human needs in a pyramid structure, from basic physiological needs to self-actualization. ​ Open System in Organizations ○​ An open system in organizations transforms resource inputs from the external environment into valuable outputs, maintaining dynamic interactions with its surroundings. ​ Blake and Mouton Grid ○​ The Blake and Mouton grid is a managerial tool that evaluates leadership styles based on concern for people and concern for production. ​ Hersey and Blanchard Situational Leadership ○​ Situational leadership theory suggests that leaders should adapt their style—directive, coaching, supporting, or delegating—based on their followers’ readiness and competence. ​ Levels of Management ○​ The levels of management include top (strategic decision-making), middle (implementation of policies), and team/operational (day-to-day supervision). ​ Ethnocentrism ○​ Ethnocentrism is the belief that one’s own culture, values, or practices are superior to those of others. ​ Progressive Principle (Maslow’s)  ○​ The progressive principle states that as lower-level needs in Maslow's hierarchy are satisfied, individuals are motivated to fulfill higher-level needs. ​ Types of Managers ○​ Managers can be classified as staff (advisory roles), line (direct decision-making), functional (specialized expertise), general (broad oversight), or project (temporary leadership for specific initiatives). ​ McGregor's X and Y Theory ○​ McGregor's Theory X assumes employees are inherently lazy and need strict supervision, while Theory Y views employees as self-motivated and capable of innovation. The self-fulfilling prophecy suggests that beliefs about employees' behavior influence how they are treated, reinforcing those behaviors. ​ Four Functions of Management ○​ The four functions of management are planning, organizing, leading, and controlling organizational resources to achieve goals. ​ Fiedler's Contingency Model ○​ Fiedler's contingency model proposes that a leader's effectiveness depends on their leadership style and the favorability of the situation. ​ Extrinsic and Intrinsic Rewards ○​ Extrinsic rewards are tangible benefits like salary or bonuses, while intrinsic rewards derive from personal satisfaction and a sense of achievement. ​ Group Decision-Making Types ○​ Group decision-making includes methods such as consensus, voting, brainstorming, and the nominal group technique. ​ ERG Theory ○​ ERG theory condenses Maslow's hierarchy into three core needs: existence, relatedness, and growth, with flexibility between levels. ​ Frustration Regression Principle ○​ The frustration regression principle in ERG theory suggests that when higher-level needs are unmet, individuals refocus on fulfilling lower-level needs. ​ Different Levels of Strategy ○​ Strategic levels include corporate (overall direction), business (competitive advantage), and functional (specific operational tasks). ​ Types of Diversification ○​ Diversification includes related (expanding into similar markets) and unrelated (venturing into entirely new markets) diversification. ​ McClelland's Acquired Needs Theory ○​ McClelland's theory identifies three key needs—achievement, affiliation, and power—that drive individual motivation and behavior. ​ Core Values ○​ Core values are fundamental beliefs that guide an organization’s behavior, culture, and decision-making. ​ Corporate Culture ○​ Corporate culture refers to the shared values, beliefs, and practices that define an organization’s environment and identity. ​ Feedforward System ○​ A feedforward system anticipates potential problems and implements proactive measures before they occur. ​ SWOT Analysis ○​ SWOT analysis evaluates an organization’s strengths, weaknesses, opportunities, and threats to aid in strategic planning. ​ Strategic Alliances ○​ Strategic alliances are partnerships between organizations to achieve mutual goals while maintaining independence. ​ Strategic Management  ○​ Strategic management involves formulating, implementing, and evaluating strategies to achieve long-term organizational objectives. ​ Terminal Values and Instrumental Values ○​ Terminal values are desired end-states (e.g., happiness), while instrumental values are means to achieve them (e.g., honesty, hard work). ​ Types of Control ○​ Control types include feedforward (preventive), concurrent (real-time monitoring), and feedback (post-performance evaluation). ​ Internal vs. External Control ○​ Internal control relies on self-regulation by employees, while external control involves supervision and enforcement by management. ​ Procedures and Policies ○​ Procedures are detailed step-by-step instructions for specific tasks, while policies are overarching guidelines that inform decision-making. ​ Progressive Discipline ○​ Progressive discipline is a process of escalating corrective actions to address employee performance or behavior issues. ​ Forecasting ○​ Forecasting involves predicting future trends, demands, or conditions to inform decision-making. ​ Contingency Planning ○​ Contingency planning prepares for potential future scenarios to minimize risk and ensure organizational resilience. ​ PEST Analysis ○​ PEST analysis examines external political, economic, social, and technological factors impacting an organization. ​ Business Plans, Tactical Plans, Operational Plans ○​ Business plans outline overarching objectives, tactical plans focus on medium-term actions, and operational plans detail day-to-day activities.  ​ Steps in the Control Process ○​ The control process involves setting performance standards, measuring actual performance, comparing it to standards, and taking corrective actions. ​ Quantitative and Qualitative Planning ○​ Quantitative planning relies on measurable data and statistics, while qualitative planning considers subjective insights and judgments. ​ Transactional vs. Transformational Leadership ○​ Transactional leadership focuses on structured tasks and rewards, while transformational leadership inspires change through vision and motivation. True or False Concepts - Section B ​ Mission Statements ○​ Purpose and Importance: A mission statement defines an organization’s purpose, values, and direction, guiding decision-making and aligning stakeholders. It ensures clarity of purpose and motivates employees while communicating the organization's goals to external stakeholders. ○​ Impact on Stakeholders: For internal stakeholders, mission statements foster unity and focus, while for external stakeholders, they build trust and understanding of the organization's goals and values. ​ Competitive Advantage ○​ Types of Competitive Advantage: Competitive advantages include cost leadership (offering lower prices through operational efficiency), differentiation (providing unique products or services), and niche focus (specializing in specific market segments).  ○​ Examples and Achievement: Walmart achieves cost leadership by optimizing its supply chain, while Apple excels in differentiation through innovation and branding. These advantages are achieved by aligning strategies with resources and capabilities. ​ Globalization Strategies ○​ Globalization vs. Localization: Globalization focuses on standardizing products and marketing globally to achieve economies of scale, while localization tailors offerings to specific cultural, legal, and consumer preferences in local markets. ○​ Approaches to International Marketing: Strategies include standardization for universal appeal (e.g., Coca-Cola’s global branding) and adaptation, such as McDonald’s customizing its menu to suit local tastes (e.g., vegetarian options in India). ​ Restructuring and Divestiture ○​ Corporate Restructuring: Forms include mergers (combining companies), acquisitions (buying a company), and divestitures (selling off parts of the business). These strategies aim to improve efficiency, competitiveness, or financial health. ○​ Divestiture Strategies: Divestiture involves selling assets, subsidiaries, or business units to streamline operations, reduce debt, or focus on core competencies. For example, a company might sell a non-performing division to invest in growth areas. ​ B2B vs. B2C E-business Strategies ○​ Characteristics and Differences: B2B (business-to-business) involves transactions between companies, focusing on volume  and long-term relationships, while B2C (business-to-consumer) targets individual customers with personalized experiences. ○​ Examples: B2B transactions include a manufacturer purchasing raw materials from a supplier, while B2C transactions involve a consumer buying clothes online from a retailer like Amazon. ​ Internal Controls ○​ Purpose and Types: Internal controls ensure accuracy, efficiency, and compliance by safeguarding assets and preventing fraud. Types include preventive (e.g., authorization policies), detective (e.g., audits), and corrective controls (e.g., error correction processes). ○​ Examples: Examples include segregation of duties, requiring dual approvals for transactions, and conducting regular financial audits to identify discrepancies. ​ Market Control ○​ Understanding Market Control: Market control uses market-based mechanisms like pricing, competition, and customer feedback to influence organizational performance and behavior. ○​ Competition Influence: Internal competition, such as performance benchmarks across teams or departments, can motivate employees to improve efficiency and innovation. ​ Discipline and Control Mechanisms ○​ Progressive Discipline vs. Immediate Consequences: Progressive discipline involves escalating corrective actions to  address issues, while immediate severe consequences are used for serious violations to ensure swift accountability. ○​ Internal vs. External Control Mechanisms: Internal control mechanisms rely on self-regulation and organizational culture, while external mechanisms involve supervision, policies, or external audits. ​ Maslow's Hierarchy of Needs ○​ Understanding Safety Needs: Safety needs are second in Maslow’s hierarchy, including physical security, financial stability, and health. ○​ Examples and Importance: Ensuring workplace safety, job security, and access to healthcare enhances employees' well-being, fostering productivity and loyalty. ○​ Self actualization (top) ○​ Self esteem ○​ Social ○​ Safety ○​ Physiological (bottom) Short Answer Concepts - Section C ​ Explain and provide examples of the 5 types of corporate level strategies ​ McGregor's theory of X and Y, provide examples of employees exhibiting each theory ​ Be able to compare and contrast Motivational theories ​ Be able to compare and contrast leadership styles ​ Be able to state and explain the barriers to communication in the workplace and how to overcome these challenges ​ Describe a PEST analysis and provide an example ​ Discuss the 3 levels of management, know the responsibilities, and job titles at each level ​ Define and explain Porter's Five Forces Model, explain all 5 in significant detail ​ Discuss the concept of corporate social responsibility (CSR). Give specific examples of how businesses can implement CSR initiatives.