Page 363 - Business Principles and Management

C HAPTER 13 A SSESSMENT

24. What is the difference between responsibility and authority? Provide
examples of each from your role as a family member and your role
as a student.
25. Compare the line organization with the matrix organization in terms
of how it affects the work, relationships, and communication of man-
agers and employees.

MAKE CONNECTIONS

26. Communication Review the information from the beginning of the
chapter about Eldron Huntley’s idea to expand his catering business
using the Internet. Write two goals that Mr. Huntley could set for
the business—one that should be achieved in three months and one
that should be achieved by the end of the first year. Write the goals
to include the four characteristics of an effective goal.
27. Visual Arts Your class decides to hold a student recognition and par-
ent appreciation event at the end of the school year. All students will
participate in planning and managing the event. A matrix organiza-
tion structure will be used. Identify the major divisions of work that
need to be completed for a successful event. Using a computer draw-
ing program, design an organization chart you believe will be most
effective for getting the work done. Assign each student in your
class to a particular role in the organization chart. Be prepared to
discuss your decisions with other students.
28. Technology Use the Internet to locate an example of a business use of
each of the planning tools identified in the chapter: budget, schedule,
standard, policy, procedure, and research. Construct a 3 6 table.
In the first column, identify the planning tool. In the second column,
briefly describe its use. In the third column, identify how the use of
the tool supports business planning.
29. Research Use a library or the Internet to locate three articles from
business magazines on the effects of flattening (reducing the levels
of management) on businesses and their employees. Take notes on
the articles as you read. Then prepare a one-page analysis of your
research, presenting the advantages and disadvantages of the use
of downsizing.
30. Mathematics Research is an important tool businesses use for strategic
planning. On average, businesses spend about 3.5 percent of sales
on research activities each year. In a recent year, the top businesses
worldwide in terms of research expenditures were Microsoft, Ford,
and Pfizer. Microsoft invested $7.8 billion on research with sales
of $36.8 billion. Ford’s investment was $7.6 billion for research
with $164 billion in sales. Pfizer’s research budget was $7.1 billion
and sales were $45.2 billion. Calculate the percentage of annual
sales each company invested in research. Determine the percentage
of sales invested in research by all three companies combined.
Compare it with the average of all businesses.

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