Question & Answer

What was the purpose of the Securities Act of 1933? What was the purpose of the Securities Exchange Act of 1934? Do these laws prevent investors from making poor investment decisions? Explain. (LO2)

Explain the meaning of efficient markets. Why might we expect markets to be efficient most of the time? In recent years, several securities firms have been guilty of using inside information when purchasing securities, thereby achieving returns well above the norm (even when accounting for risk). Does this suggest that the security markets are not efficient? Explain. (LO2)

Distinguish between perfect and imperfect security markets. Explain why the existence of imperfect markets creates a need for financial intermediaries. (LO3)

Distinguish between primary and secondary markets. Distinguish between money and capital markets. (LO2)

Explain the meaning of surplus units and deficit units. Provide an example of each. Which types of financial institutions do you deal with? Explain whether you are acting as a surplus unit or a deficit unit in your relationship with each financial institution. (LO1)

1.       : Discuss some of the potential positive and negative aspects of sending digital nudges to managers via e-mail or text messages. What do you see as the most important ways for managers to use this technology?

1.       : How would you apply systems thinking to a problem such as poor performance in your current academic studies? What about a problem with a romantic partner or family member? For each situation, try to identify all the elements and their interdependencies.

1.       Why can an event such as the Hawthorne studies be a major turning point in the history of management, even if the results of the studies are later shown to be in error? Discuss.

1.       : Explain the basic idea underlying the contingency view. How would you go about identifying key contingencies facing an organization?

1.       : Why do you think Mary Parker Follett’s ideas tended to be popular with businesspeople of her day but were ignored by management scholars? Why are her ideas appreciated more today?

1.       : As organizations become more technology-driven, which do you think will become more important—the management of the human element of the organization or the management of technology? Discuss.

1.       A management professor once said that for successful management, studying the present was most important, studying the past was next most important, and studying the future should come last. Do you agree? Why?

1.       : Can you think of potential drawbacks to retailers using labor-waste elimination systems based on scientific management principles, as described in the text? Do you believe that scientific management characteristics will ever cease to be a part of organizational life, since they are now about 100 years old? Discuss.

1.    : Do you think it is wise for a top executive to fire a manager who is bringing in big sales and profits for the company but not living up to a cultural value of “showing respect for employees”? Explain.

1.    : As a manager, how would you use symbols to build an adaptability culture that encourages teamwork and risk taking? What kinds of symbols could you use to promote the values of an involvement culture?

1.    : Netflix is transparent with executive salaries; guides team leader behavior with sayings like What is your North Star and Make decisions with context not control; and urges teams to be highly aligned, loosely coupled. What do these viewpoints mean to you, and what type of corporate culture do you think they would promote?

1.    : Consider the factors that influence environmental uncertainty— that is, the rate of change in factors and the number of factors in the environment—as presented in Exhibit 3.4. Classify three of the following organizations as operating in either (a) a low-uncertainty environment or (b) a high-uncertainty environment: Hyundai, Facebook, a local Subway franchise, FedEx, a cattle ranch in Oklahoma, and McDonald’s. Explain your reasoning.

1.    How do you think the “MeToo” movement and publicity might affect the behavior of male managers toward women in an organization? How do you think corporate policies toward romantic relationships among employees might change? Explain.

1.    : What do you see as the primary advantage of using big data analytics—understanding the environment or influencing the environment? Why?

1.    Contemporary best-selling management books often argue that customers are the most important element in the external environment. Do you agree? In what company situations might this statement be untrue?

1.    b.       Pick two industries of your choice and identify environmental issues that have the potential to create environmental uncertainty. (Examples: automobile, newspaper, medical services, etc.)

1.    Would the task environment for a wireless provider such as Verizon Wireless contain the same elements as that for a government welfare agency? Discuss the similarities and differences.

1.    : Surveys reveal shifts in social attitudes among younger people related to issues such as same-sex marriage and citizenship for illegal immigrants. How do you think these changing attitudes might affect the manager’s job over the next few years?

Explain the relationships among culture, corporate values, and business performance, and describe the tools a cultural leader can use to create a high-performance culture.

Provide examples of the four types of corporate culture.