C201 Business Acumen - Set 2 - Part 3

Correct Answer: Network structure

A network structure is a small core company that coordinates many outside partners for activities like outsourced production and distribution. Staying lean while depending heavily on partners is the defining trait and trade-off of this design. Option b is incorrect because a line structure is a straight-line internal chain of command. It organizes authority within the firm rather than coordinating a web of external partners for production and distribution. Option c is incorrect because a matrix structure puts employees under two internal bosses, a functional and a project manager. Its hallmark is dual reporting inside the firm, not reliance on outside partners. Option d is incorrect because a functional structure groups internal jobs by similar work such as finance and marketing. It arranges the company's own departments, not a network of outsourced partners.

Correct Answer: Geographical departmentalization

Geographical departmentalization groups jobs and activities by region or location. Organizing operations into North America, Europe, and Asia divisions splits the company by area served, which defines this form directly. Option a is incorrect because functional departmentalization groups jobs that do similar work, like finance and HR. These divisions are split by region rather than by shared business function. Option b is incorrect because product departmentalization gives each product line its own unit. The retailer splits by location, not by separate products, so this label does not apply. Option d is incorrect because process departmentalization groups work by production stage, such as cutting then finishing. Regional divisions are organized by place, not by steps in a workflow.

Correct Answer: A Gantt chart

A Gantt chart is a bar chart that tracks progress over time, is easy to read, and is used for relatively simple projects. Showing each task against a timeline and whether it is on schedule fits a Gantt chart. Option a is incorrect because a PERT network diagram maps task dependencies and the critical path for complex projects. It is more involved than the simple bar chart this manager wants for a straightforward project. Option c is incorrect because an organization chart shows hierarchy, roles, and reporting relationships. It maps who reports to whom rather than tracking task progress against a schedule. Option d is incorrect because a fixed-position layout is a way of arranging work so the product stays put. Plant layout has nothing to do with charting a project's tasks against a timeline.

Correct Answer: Reorder programmed; market entry nonprogrammed

Reordering boxes by a fixed rule is routine and rule-based, making it a programmed decision. Entering a new country for the first time is unique, high-stakes, and demands judgment, making it nonprogrammed. The split labeling is correct. Option a is incorrect because only the reorder is programmed. Entering a brand-new country is novel and carries important consequences, so it cannot be the routine, rule-based kind of decision programmed describes. Option b is incorrect because it reverses both labels. The rule-based reorder is programmed and the first-time market entry is nonprogrammed, so calling them the opposite gets each classification backward. Option c is incorrect because the reorder is clearly programmed, not nonprogrammed. A fixed-rule restock of a common item lacks the novelty and judgment that would make it a nonprogrammed decision.

Correct Answer: Organizing the facility layout

Organizing, as a production-manager task, includes determining the best layout for the facility and coordinating materials, labor, and equipment. Arranging machines and workstations and bringing those resources together fits the organizing task directly. Option b is incorrect because planning sets the overall production process, schedules, and resource allocation. Deciding the physical arrangement of the floor is the organizing task, which comes after the broad plan is set. Option c is incorrect because leading involves implementing the plan, supervising employees, and ensuring productivity. The manager here is arranging the layout, not directing and motivating the workers on the line. Option d is incorrect because controlling focuses on maintaining the highest quality and efficiency by checking results. Designing the floor layout is an organizing activity, not the after-the-fact quality monitoring that controlling performs.

Correct Answer: Team-based structure

A team-based structure has employees work in cross-functional teams to enhance collaboration and problem-solving, with all workers responsible for their output. Shared responsibility across collaborative teams rather than single-manager authority defines this structure. Option a is incorrect because a traditional hierarchical structure gives each manager a specific area of authority and splits the plant into distinct functional departments. Shared team responsibility is the opposite of those single-manager silos. Option b is incorrect because a line-and-staff structure pairs line managers with advisory staff specialists. That design is about adding expert support, not about cross-functional teams owning their own output. Option d is incorrect because a centralized structure concentrates decisions at the top. The scenario pushes responsibility out to collaborative teams, which moves authority away from the top rather than toward it.

Correct Answer: Inventory control

Inventory control manages how much inventory to keep, when to reorder, and the costs of holding it, with the goal of avoiding too much or too little. Balancing excess cash against stockout risk is exactly this activity. Option a is incorrect because routing determines the path work will follow through the facility. It maps the production route rather than deciding how much stock to hold and when to reorder. Option b is incorrect because benchmarking compares a firm's processes to industry leaders to improve. It is a quality-improvement practice, not the task of managing stock levels and reorder timing. Option c is incorrect because dispatching starts the work by releasing orders to begin. Launching production is a control step, not the balancing of inventory levels the manager is handling.

Correct Answer: Leaders shape culture, which shapes behavior

The example shows a leader shaping culture, that culture shaping how employees act, and their behavior cementing the same norms, a self-sustaining loop. It illustrates why the tone set at the top drives lasting behavior. Option b is incorrect because culture is set by leaders, especially founders and their successors, not by workers alone. Removing leadership from the cycle contradicts the source of culture the materials identify. Option c is incorrect because culture, while self-sustaining once established, is shaped and reinforced rather than permanently fixed. Calling it unchangeable ignores how leaders and behavior continually sustain or shift it. Option d is incorrect because the loop centers on leaders shaping culture, not the market dictating it. Tying culture solely to the market leaves out the leadership influence that drives the cycle.

Correct Answer: More efficiency, fewer errors, safer, nonstop

Businesses invest in robots for increased efficiency and speed, reduced human error, improved safety, labor savings, and the ability to operate around the clock. That cluster of gains matches the listed reasons to adopt robots directly. Option a is incorrect because robots carry a high upfront cost and require skilled technicians to maintain them. Claiming low cost and no technician need names the very trade-offs that make robots harder to justify. Option c is incorrect because a known downside of robots is job loss for workers, not guaranteed job growth. Promising more jobs for current staff contradicts the displacement the materials list as a con. Option d is incorrect because robots perform production tasks, not the conceptual work of designing products. Designing is handled by tools like computer-aided design, so robots do not remove the need for product design.

Correct Answer: Locating closer to customers

A growing trend is locating closer to customers in order to deliver faster, reduce shipping costs, and respond to demand quickly. The firm's stated reasons line up precisely with this market-proximity trend. Option a is incorrect because chasing the lowest taxes is a separate location factor. The firm's goals are faster delivery and lower shipping, which point to customer proximity rather than tax minimization. Option b is incorrect because locating near raw-material sources targets input supply, not buyer access. The stated aims of quick delivery and responsiveness focus on reaching customers, not gathering materials. Option d is incorrect because seeking the cheapest labor is a different driver of the location decision. Cutting shipping time and answering demand faster reflect nearness to customers, not low wage costs.