Deck 3: Foundations of Planning

Question 1

Successful plans may provide

A)a false sense of security.
B)increased awareness of change.
C)increased awareness of the environment.
D)only success.

Answer 1

A

Question 2

Application of MBO
Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached.
Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization.
Kay knew she wanted her employees to view the objectives as which of the following?

A)floors
B)challenging and yet unrealistic
C)unobtainable in order to encourage stretching
D)ceilings

Answer 2

A

Question 3

Which of the following is not one of the steps in the Six Sigma 12- Step Process?

A)Identify sources of variation.
B)Redesign work processes.
C)Establish current process capability.
D)Define performance standards.

Answer 3

B

Question 4

Planning can

A)provide standards to facilitate control.
B)provide guidance and direction.
C)minimize waste and redundancy.
D)all of the above

Question 5

Managers should treat MBO as an ongoing activity, which means that goals should be regularly reviewed and___________ .

A)scrapped
B)rewarded
C)updated
D)delegated

Question 6

When Maria Murdock assists her employees with setting objectives, she establishes specific and challenging goals for each key task. Which of the following would she not advise employees to do?

A)Specify the deadlines for each goal.
B)Identify the level of performance expected of each employee.
C)Specify the target for the employee to hit.
D)Specify the goal when the employee cannot think of anything.

Question 7

The greater the uncertainty, the more plans should be of the___________ variety.

A)long- term
B)rigid
C)short- term
D)intermediate in length

Question 8

When planning involves specific objectives (covering a period of years)that are then written down and made available to organization members with specific action programs for achieving the goal, which of the following types of planning was used?

A)informal planning
B)formal planning
C)environmental planning
D)economic planning

Question 9

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.

-Stacie knew that the strategy management would depend on the organization's and its competitors' ___________ .

A)strengths; threats
B)weaknesses; strengths
C)strengths; weaknesses
D)opportunities; threats

Question 10

The owner of a chain of supermarkets sets a goal of opening up ten new stores in new locations within the next six years. This is a___________ plan?

A)standing
B)short- range
C)directional
D)long range

Question 11

The organizational formality of Apple Computer ultimately led to

A)increased market share.
B)increased vision.
C)hampered creativity.
D)a successful organization.

Question 12

Entenmann's Baking Company produces cakes, pies, and other prepared foods. It is one of the largest producers of baked goods in the Northeastern United states yet, it spends less than $2000.00 a year on advertising, and sells its product in large supermarkets and grocery stores for 1/2- 1/3 the cost of its competitors. This company pursues a(n)___________ strategy.

A)focus
B)combination
C)differentiation
D)overall cost leadership

Question 13

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.
The competitive advantage based upon developing the market of small businesses that had a specific need for a database with the capability for a large accounts receivable billing, would be which of the following?

A)focus strategy
B)retrenchment strategy
C)differentiation strategy
D)cost- leadership strategy

Question 14

Peter Drucker, a well- known management author, believes that entrepreneurs can find opportunities in___________ .

A)the process need
B)the unexpected
C)the incongruous
D)all of the above

Question 15

___________ plans specify the details of how an organization or business will achieve its objectives.

A)Strategic
B)Operational
C)Tactical
D)Long- term

Question 16

In environmental SWOT analysis, the external organizational position is analyzed according to its

A)strengths and weaknesses.
B)strengths and threats.
C)opportunities and weaknesses.
D)opportunities and threats.

Question 17

Which of the following is not true about strong organizational culture?

A)It is difficult for management to convey to new employees the organization's core competency.
B)Almost all employees have a clear understanding of what the organization is about.
C)It may act as a barrier to change.
D)It is difficult to change.

Question 18

___________ occurs when Navistar a large shipping company buys smaller tugboat operations in several major ports and incorporates them into their operations.

A)An acquisition
B)A merger
C)A growth strategy
D)A combination strategy

Question 19

Companies achieving ISO 14000 certification have demonstrated that they are

A)environmentally responsible.
B)in compliance with human resource laws.
C)good corporate citizens.
D)cost efficient.

Question 20

In conducting a SWOT analysis, a company's___________ are examined by questions about internal resources and skills possessed by the company.

A)opportunities
B)capabilities
C)competencies
D)strengths

Question 21

___________ plans have the broadest organizational focus and the longest time frame.

A)Tactical
B)Operational
C)Strategic
D)Directional

Question 22

Application of MBO
Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached.
Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization.
Kay knew that the research showed that MBO allows which of the following?

A)increased sales
B)decreased employee performance
C)increased profits
D)increased employee performance

Question 23

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
Which analysis would assist Terry to identify a strategic niche that the company could exploit?

A)SWOT analysis
B)MBWA
C)MBO
D)SWAT analysis

Question 24

Which of the following is not one of the steps to follow in setting objectives for employees?

A)Encourage active employee participation.
B)Establish a specific and accurate measurement system.
C)Link rewards to achievement of goals.
D)Prioritize goals in terms of importance and difficulty.

Question 25

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
The negative publicity due to the testing of cosmetics on animals would be classified as which of the following?

A)strength
B)opportunity
C)weakness
D)threat

Question 26

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.
Stacie knew that in order to keep its competitive advantage, her company would have to do which of the following?

A)hire new management
B)take constant action
C)lower price
D)remain profitable

Question 27

In what order should plans be developed?

A)Mission, strategic, tactical, and operational
B)Strategic, tactical, mission, and operational
C)Mission, operational, strategic, and tactical
D)Mission, tactical, strategic, and operational

Question 28

Which of the following is not an argument that has been made against formal planning?

A)focuses mostly on today's competition
B)takes too much time and staff resources
C)cannot be developed for a dynamic environment
D)cannot replace creativity and intuition

Question 29

When objectives are not written down or rarely verbalized, and the planning is general and lacks continuity, which of the following types of planning is used?

A)economic planning
B)environmental planning
C)formal planning
D)informal planning

Question 30

Susan's Ceramics is expanding the size of its unfinished products while decreasing the amount of firing and finishing of products it does. This is known as which of the following strategies?

A)retrenchment
B)growth
C)stability
D)combination

Question 31

The starting point in strategic management process is usually

A)identifying opportunities and weaknesses.
B)analyzing current mission, strategies and objectives.
C)identifying opportunities and threats.
D)conducting an environmental scan.

Question 32

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
The quality of the company's personnel would be classified as which of the following?

A)strength
B)threat
C)weakness
D)opportunity

Question 33

In those organizations where formal planning did not lead to higher performance, the culprit was which of the following?

A)competition
B)environment
C)marketing plan
D)management

Question 34

Studies have supported the premise that companies that plan strategically

A)have less satisfied employees than those without plans.
B)have better financial measurements than those without plans.
C)have more satisfied employees than those without plans.
D)have no better financial measurements than those without plans.

Question 35

Each MBO objective must have

A)a percentage change specified.
B)a reference to quality.
C)a concise time period.
D)a specified dollar amount.

Question 36

Application of MBO
Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached.
Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization.
Which of the following is a well- written objective to be used in MBO?

A)decrease personnel costs
B)decrease department costs by 8% over the next six months
C)increase sales
D)increase productivity

Question 37

Plans that apply to the entire organization, establish the organization's overall objectives, and seek to position the organization in terms of its environment are called ___________ plans.

A)strategic
B)tactical
C)single- use
D)operational

Question 38

Application of MBO
Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached.
Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization.
Who should develop the employee goals for the MBO program?

A)Kay's manager
B)Kay
C)employees
D)Kay and the employees

Question 39

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
In formulating the company's report which analysis of the following would be included in an environmental scan?

A)opportunities and threats
B)strengths and weaknesses
C)weaknesses and threats
D)current business strategies and objectives

Question 40

A fast growing area of environmental scanning is

A)global positioning.
B)competitive intelligence.
C)human resource planning.
D)demographic analysis.

Question 41

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.
The source of competitive advantage that makes the focused strategy possible by creating unique features for a growing market segment is referred to as a

A)core competency
B)core capability
C)strategic opportunity
D)strategic resource

Question 42

Porter's term for an organization that cannot use one of his three strategies is

A)stuck in the middle.
B)noncompeting.
C)on a limb.
D)derailed.

Question 43

After analyzing and learning about the environment, management needs to evaluate opportunities and threats. Opportunities are

A)positive external environmental factors.
B)internal resources.
C)unmet needs.
D)internal competitive strategies.

Question 44

The ___________ of RJ Nabisco is "to meet the needs of consumers through innovative marketing and manufacturing of healthful, good- tasting products that contribute to a healthy lifestyle and consumer well- being around the world, yielding above- average returns over time and for our shareholders."

A)strategic plan
B)tactical plan
C)environmental plan
D)mission

Question 45

Strategy formulation involves ___________ .

A)evaluating a set of alternative strategies and selecting the best for each level
B)completing a SWOT analysis
C)developing and evaluating a set of alternative strategies
D)selecting a strategy that will increase the level of operations

Question 46

The importance of environmental scanning (outside of national security agencies)was first recognized by firms in the___________ industry.

A)computer
B)life insurance
C)television
D)advertising

Question 47

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
The fact that sales are up 10% industry- wide because women are buying more cosmetics would be which of the following?

A)opportunity
B)weakness
C)strength
D)threat

Question 48

Lila's Luscious Lips produces a cherry flavored lipstick and is targeting the "teen" girl who is between 12 and 14 years old. The strategy pursued is

A)focus.
B)cost leadership.
C)differentiation.
D)segmentation.

Question 49

Which of the following is not an ingredient in MBO programs?

A)general time period
B)goal specificity
C)participative decision making
D)performance feedback

Question 50

The Hummer television ads frequently show the company's SUVs being driven under very challenging off- road conditions and over difficult terrain in order to impress consumers with how well built the vehicles are and to create the impression that the Hummer Volvos are among the most rugged cars on the market. What type of competitive business strategy is Hummer using?

A)Growth
B)Overall cost leadership
C)Focus
D)Differentiation

Question 51

In which step of the strategic management process does an organization find out what its competition is doing, what legislation is pending, and what customers desire?

A)Step 3: identify opportunities and threats.
B)Step 4: analyze the organization's resources.
C)Step 2: analyze the environment.
D)Step 1: identify the organization's current mission, objectives, and strategies.

Question 52

The premise behind___________ is to design in quality as the product is being made.

A)TQM
B)six sigma
C)benchmarking
D)reengineering

Question 53

A company that states that its product is reliable, even to the extent of never needing a service call, such as Maytag, is practicing which of the following competitive strategies?

A)focus strategy
B)differentiation strategy
C)retrenchment strategy
D)cost- leadership strategy

Question 54

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.

-Having a good research and development department is a real ___________ for the company.

A)strength
B)money maker
C)asset
D)opportunity

Question 55

___________ plans have clearly defined objectives.

A)Flexible
B)Specific
C)Directional
D)Standing

Question 56

Which of the following is a nine- step process that involves strategic planning, implementation, and evaluation?

A)tactical management process
B)long- range planning process
C)strategic management process
D)decision- making process

Question 57

The quality philosophy that focuses on the input side of the production process is

A)TQM.
B)benchmarking.
C)reengineering.
D)six sigma.

Question 58

Which of the following is an argument against formal planning?

A)Planning cannot replace creativity.
B)Planning focuses on the past.
C)Planning may create rigidity.
D)all of the above.

Question 59

Strategic plans include

A)financial information.
B)participation from all levels.
C)benchmarking.
D)the formulation of objectives.

Question 60

There are many healthcare products manufacturers. Forrest Labs Drug Company manufactures only personal hygiene products. It markets such products deodorant, body powder, body creams, and exfoliates. Because it only stocks body care and personal hygiene products, it is using a(n)___________ strategy.

A)focus
B)cost leadership
C)prospecting
D)emergent

Question 61

Larry's Company is in the process of buying a smaller competitor and incorporating that company's resources into his business. This is an example of which of the following types of strategies?

A)merger
B)retrenchment
C)acquisition
D)stability

Question 62

Application of MBO
Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached.
Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization.

-Kay did not want her employees to see MBO as setting___________ , which might limit their thinking and achievements.

A)unobtainable goals
B)floors
C)ceilings
D)themselves up for failure

Question 63

Which of the following is not a component of the MBO process?

A)Rewards are based on progress towards achieving objectives.
B)Progress towards objectives is reviewed every three months.
C)Employees are given ratings based on reaching specific targets.
D)Objectives are determined jointly by subordinates and supervisor.

Question 64

When Northwest Airlines began serving its own in- flight meals, which of the following strategies was it pursuing?

A)combination
B)stability
C)retrenchment
D)growth

Question 65

Which of the following is not one of the grand strategies?

A)retrenchment
B)growth
C)stability
D)cost- leadership

Question 66

Which of the following is not a popular way to describe plans?

A)time frame
B)specificity
C)environmental focus
D)breadth

Question 67

What types of goals produce higher levels of output?

A)goals of moderate difficulty
B)specific, hard goals
C)generalized goals such as "do your best"
D)easy goals

Question 68

Which of the following is an argument against formal planning?

A)Planning may create rigidity.
B)Planning replaces creativity.
C)Planning focuses on the future.
D)Planning ignores prior successes.

Question 69

All of the following involve increasing a companies' size, markets, assets, or products except a(n)___________ .

A)retrenchment
B)growth
C)acquisition
D)merger

Question 70

The Director of Marketing at Warner Publications sends out a broad, flexible plan that sets out the guidelines and targets for sales every year. This plan is called a___________ plan.

A)standing
B)tactical
C)strategic
D)directional

Question 71

Michael Porter proposed that management must select a(n)___________ , which will give its unit a distinct advantage by capitalizing on the strengths of the organization and the industry it is in.

A)growth opportunity
B)vision
C)organizational chart
D)competitive strategy

Question 72

Krispy Kreme has a distribution network that allows fresh doughnuts to be transported to convenience stores, and supermarkets. Krispy Kreme outlets before dawn so that consumers can enjoy them. This is a unique source of competitive advantage for Krispy Kreme known as a(n)___________ .

A)core competency
B)strategic opportunity
C)organizational strength
D)organizational capability

Question 73

___________ plans are differentiated by their breadth.

A)Single use and standing
B)Directional and specific
C)Strategic and tactical
D)Long- term and short- term

Question 74

When uncertainty is high and management must maintain flexibility, which of the following types of plans are preferable?

A)specific plans
B)no plans
C)directional plans
D)long- term plans

Question 75

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.
The long- term success of any competitive strategy Stacie develops requires that the advantage be which of the following?

A)dissimilar to the strategy used by the competition
B)similar to the strategy used by the competition
C)sustainable
D)profitable

Question 76

Which of the following is not a step in objective setting?

A)Prioritize goals.
B)Allow the employee to actively participate.
C)Specify deadlines.
D)Link rewards to effort.

Question 77

Which of following is not one of the reasons why managers should engage in planning as that was stated in the text?

A)Planning facilitates control.
B)Planning provides direction.
C)Planning reduces cost.
D)Planning minimizes waste and redundancy.

Question 78

___________ specify how overall objectives are to be achieved.

A)Tactical plans
B)Single- use plans
C)Strategic plans
D)Operational plans

Question 79

___________ clarifies the consequences of actions managers might take in response to continual change.

A)Leading
B)Planning
C)Controlling
D)Organizing

Question 80

Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
The failure of the advertising campaign would be classified as which of the following?

A)weakness
B)opportunity
C)strength
D)threat