Which of the Following Examples Demonstrates How Successful Organizations Manage

question 5

Multiple Choice

Which of the following examples demonstrates how successful organizations manage their primary activities?

• A) Motorola has revised its compensation system to reward employees who learn a variety of skills.
• B) Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times.
• C) National Steel improved its efficiency by reducing the number of job classifications.
• D) JIT inventory systems are vital to Toyota committing to fulfill new car orders within five days.

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Definitions:

Shareholder Value

The financial worth that a company delivers to its shareholders, often measured by stock price appreciation and dividend payouts.

Firms Fail

The situation where businesses are unable to continue operations due to financial problems, market competition, or poor management.

Due Diligence

The comprehensive appraisal of a business or individual prior to signing a contract, or an act with a certain standard of care.

Culture Management

The practice of developing and nurturing a specific set of behaviors, values, and practices within an organization.