Deck 4: Managing Planning and Strategy

Question 1

The goal of GE lighting to reduce production costs by 20% over three years is a _________ goal.

A)functional-level
B)corporate-level
C)global-level
D)business-level
E)departmental-level

Answer 1

A

Question 2

All of the following are examples of standing plans, except:

A)rules
B)policies
C)vision statement
D)standard operating procedures
E)all of these choices are examples of standing plans

Answer 2

C

Question 3

Corporate and business-level goals and strategies require and term plans, respectively.

A)long; intermediate
B)intermediate; long
C)long; short
D)intermediate; intermediate
E)short; intermediate

Answer 3

A

Question 4

Which of the following is a general guide to action?

A)standing plans
B)rules
C)standard operating procedures
D)procedures
E)policies

Question 5

Which of the following is an important reason for planning?

A)planning is a means to give the organization a sense of direction
B)a plan helps coordinate managers of the different divisions to ensure that they all pull in the same direction
C)a plan can be useful as a device for controlling managers
D)planning is a useful way of getting managers to participate in decision making
E)all of these choices are important reasons for planning

Question 6

Evaluating strategy involves which of the following?

A)Comparing performance against goals
B)Monitoring progress
C)Making corrections if the strategy is not achieving the mission and goals
D)Evaluating performance levels
E)All of these choices are part of evaluating strategy

Question 7

The "Five Forces Model" was created by:

A)Fredrick Taylor
B)Michael Porter
C)Kahneman and Tversky
D)March and Simon
E)Hawthorne

Question 8

A is a desired outcome that an organization strives to achieve within a specified timeframe.

A)goal
B)SWOT analysis
C)vision
D)multi-domestic strategy
E)vertical integration

Question 9

When a company targets a particular language group to sell its products to, it is using a strategy.

A)focused
B)low-cost
C)cost-leadership
D)differentiation
E)stuck in the middle

Question 10

Which aspect of planning is emphasized when it is said that managers need to make every attempt to collect and utilize all available information at their disposal?

A)unity
B)flexibility
C)continuity
D)accuracy
E)vertical integration

Question 11

TD Bank Group's is to "be the best run, customer focused, integrated financial institution with a unique and inclusive employee culture."

A)corporate-level strategy
B)vision statement
C)goal statement
D)mission statement
E)SWOT analysis

Question 12

Plans with a time horizon of five years or more are referred to as:

A)intermediate plans
B)rolling plans
C)short-term plans
D)corporate term plans
E)long-term plans

Question 13

A plan that indicates in which industries and national markets an organization intends to compete is known as:

A)corporate-level strategy
B)business-level plan
C)corporate-level plan
D)business-level strategy
E)functional-level plan

Question 14

Identifying and selecting appropriate goals and courses of action is known as:

A)implementing
B)organizing
C)learning
D)controlling
E)planning

Question 15

All of the following are business-level strategies, except:

A)Vertical integration
B)Differentiation
C)Focused differentiation
D)Cost leadership
E)Focused low-cost

Question 16

Qualities of good goal formation include all of the following, except:

A)Accountable
B)Specific
C)Measurable
D)Time-related.
E)Realistic

Question 17

Successful innovation that gives a department something unique that its rivals lack is a(n)_ strategy.

A)efficient
B)low-cost functional
C)corporate-level
D)differentiation
E)none of the choices are correct

Question 18

Crisis management:

A)Is the same as scenario planning
B)Is the same as contingency planning
C)Occurs when unanticipated conditions arise
D)Involves generating several 'what if' scenarios
E)Predicts when conditions might give rise to a contingency plan

Question 19

"To unleash the power of the internet to deliver the best solutions to Canadians at home, in the workplace, and on the move" is TELUS' _.

A)goal statement
B)SWOT analysis
C)corporate-level strategy
D)mission statement
E)vision statement

Question 20

With a differentiation strategy, managers may try to gain a competitive advantage by distinguishing their products or services from competitors on which of the following dimensions?

A)Customer support
B)Product design
C)Customer service
D)Product quality
E)All of these choices are correct

Question 21

A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals is known as:

A)strategy
B)vertical integration
C)multi-domestic strategy
D)planning
E)SWOT analysis

Question 22

Effective plans should have:

A)unity
B)accuracy
C)flexibility
D)continuity
E)all of these choices are correct

Question 23

Plans with a time horizon between one and five years are referred to as:

A)corporate term plans
B)short-term plans
C)rolling plans
D)intermediate plans
E)long-term plans

Question 24

All functional managers should pay attention to which of the following goals?

A)To attain superior customer responsiveness
B)To attain superior efficiency
C)To attain superior quality
D)To attain superior innovation
E)All of these choices are correct

Question 25

When operations managers set goals to reduce shipping time to customers, this is an example of which level of planning?

A)Functional-level
B)Business-level
C)Corporate-level
D)Global-level
E)Team-level

Question 26

Which of the following is a formal, written guide to action?

A)Rules
B)Standard procedures
C)Policies
D)Guidelines
E)Operating procedures

Question 27

To define the business for the mission statement, managers must ask three questions:

A)Who are our competitors? Where should we locate? What customer needs are being satisfied?
B)Who are our customers? Where should we locate? What customer needs are being satisfied?
C)Who are our customers? What customer needs are being satisfied? What customer needs are not being satisfied?
D)Who are our customers? Where should we locate? What customer needs are not being satisfied?
E)Who are our customers? What customer needs are being satisfied? How are we satisfying customer needs?

Question 28

Implementing strategy may require:

A)Allocating appropriate resources
B)Allocating responsibility
C)Holding specific people accountable for performance
D)Creating detailed action plans with a timeframe for achieving specific goals
E)All of the choices are correct

Question 29

All of the following are examples of corporate-level strategies except:

A)Diversification
B)Vertical integration
C)Cost leadership
D)Concentration on a single industry
E)International expansion

Question 30

Contingency planning is also known as:

A)global planning
B)corporate-level planning
C)business-level planning
D)scenario planning
E)all of these choices are incorrect

Question 31

In contrast to plans that are developed to handle nonprogrammed decision making in unusual situations, are plans used in situations in which programmed decision making is appropriate.

A)strategic plans
B)operational plans
C)standing plans
D)single-use plans
E)all of these choices are incorrect

Question 32

Implementing strategy includes all of the following steps, except:

A)Establishing a timetable
B)Allocating appropriate resources
C)Allocating responsibility
D)Drafting a detailed action plan
E)Analyzing the environment

Question 33

A plan that indicates how a division intends to compete against its rivals in an industry is known as a:

A)corporate-level strategy
B)business-level plan
C)functional-level plan
D)corporate-level plan
E)business-level strategy

Question 34

The desire of Bill Gates of Microsoft to have "a computer on every desk" is an example of a:

A)Vision statement
B)Corporate-level strategy
C)SWOT analysis
D)Mission statement
E)Goal statement

Question 35

A(n)_ is a plan that is updated and amended every year and takes account of changing conditions in the external environment.

A)intermediate plan
B)divisional plan
C)rolling plan
D)long-term plan
E)corporate plan

Question 36

The organization's vision is generally set by:

A)supervisors
B)top management
C)middle management
D)first-line management
E)all of these choices are correct

Question 37

A is a broad declaration of an organization's overriding purpose intended to identify its products and customers and distinguish itself from other similar organizations.

A)vision statement
B)goal statement
C)mission statement
D)SWOT analysis
E)corporate-level strategy

Question 38

Which one of the following is not one of Porter's Five Forces?

A)The potential ease of entry into the industry
B)The threat of substitute products
C)The opportunity to increase market share
D)The power of customers
E)The level of rivalry among competitors

Question 39

Analysis of an organization's current situation followed by the development of strategies to accomplish its mission and achieve its goals is known as:

A)strategizing
B)applying the Five Forces model
C)SWOT analysis
D)strategy formulation
E)planning

Question 40

The planning process includes:

A)Determining the vision, mission, and major goals of the organization
B)Implementing and evaluating strategies
C)Analyzing the organizational environment
D)Formulating strategies to accomplish goals
E)All of these choices are correct

Question 41

Michael Porter developed the Five Forces model to analyze threats and opportunities within an industry.Describe the Five Forces and provide an example to illustrate their effect on a bakery opening in an area where several bakeries already exist.

Question 42

Discuss each of the four qualities of effective plans.

Question 43

Discuss time horizons in terms of long-term plans, intermediate plans, and short-term plans and provide one example of each type of plan.

Question 44

In most organizations, planning is a five-step process.Identify the five steps and discuss them in the context of a realistic business problem of your choosing.

Question 45

The intended duration of a plan is known as a:

A)rolling horizon
B)mission
C)objective
D)goal
E)time horizon SHORT ANSWER.Write the word or phrase that best completes each statement or answers the question.

Question 46

Discuss what is meant by a SWOT analysis and give examples using Amazon.com.

Question 47

Michael Porter presented two basic ways in which the top management of an organization could select a business-level strategy for their organization.Discuss these and show how each main strategy can be 'focused'.

Question 48

Which of the following qualities of an effective plan suggests that at any time only one central, guiding plan should be put into operation to achieve an organizational goal?

A)Continuity
B)Unity
C)Flexibility
D)Accuracy
E)Vertical integration

Question 49

Discuss the levels of managers responsible for various types of plans.

Question 50

In the second step of the planning process, managers analyze the organization's current strengths and weaknesses to formulate strategy.

Question 51

Planning is important for four reasons.Discuss.

Question 52

In order to write a concise statement of the organization's mission, a manager must first answer the question: "What business are we in and what business should we be in?" Discuss the three question areas that must be answered by a manager in order to define the organization's business, and write a mission statement.

Question 53

Through the use of a , managers try to gain a competitive advantage by driving the organization's costs down below the cost of its rivals.

A)related diversification strategy
B)formulation strategy
C)differentiation strategy
D)vertical strategy
E)cost-leadership strategy

Question 54

Describe the process of strategy implementation.

Question 55

How does vision differ from other forms of organizational direction setting?

Question 56

When handling crises, management should do all of the following except:

A)Initiate a recall
B)Be open with stakeholders
C)Keep a low profile to avoid being blamed
D)Remove tainted products from shelves
E)Be transparent about the situation

Question 57

A SWOT analysis stands for systems, weaknesses, opportunities, and technologies.

Question 58

A SWOT analysis stands for:

A)Systems, weaknesses, opportunities, threats
B)Systems, weaknesses, opportunities, technologies
C)Strengths, weaknesses, opportunities, threats
D)Strengths, weaknesses, opportunities, technologies
E)None of the choices are correct

Question 59

A plan that indicates the actions that managers intend to take at departmental levels such as marketing and R&D in order to allow the organization to attain its goals is known as a:

A)formulating strategy
B)business-level strategy
C)functional-level strategy
D)corporate-level strategy
E)top-level strategy

Question 60

When a company generates multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions, this is known as:

A)global planning
B)corporate-level planning
C)scenario planning
D)business-level planning
E)all of these choices are incorrect

Question 61

Planning gives managers a sense of direction and purpose.

Question 62

Corporate and business-level plans are generally short term relative to functional level plans.

Question 63

Standing plans are used in situations in which programmed decision making is appropriate while single-use plans are developed to handle nonprogrammed decision making in unusual or one-of-a-kind situations.

Question 64

Corporate strategies include concentrating on a single business, diversification, international expansion, and vertical integration.

Question 65

Functional-level strategies add value to the company or lower the costs of creating value.

Question 66

Scenario planning is the same thing as contingency planning.

Question 67

Private label brands like President's Choice and No Name brands are examples of a differentiation strategy.

Question 68

Retrenching and concentrating on a single industry is an example of a corporate-level strategy.

Question 69

There are four building blocks in gaining a competitive advantage.

Question 70

An example of contingency planning is when shell oil generated multiple scenarios about conditions in the world oil market that might prevail in the future, and then developed plans of what the company should do in the event that any of these scenarios actually occurred.

Question 71

Planning is a five-step activity.

Question 72

A cost-leadership strategy is a business-level strategy that serves many market segments.

Question 73

Evaluating the success of the strategy involves monitoring progress, evaluating performance, and taking corrective action to make sure that the mission and goals are being achieved.

Question 74

A mission statement is a broad declaration of an organization's overriding purpose intended to identify its products and customers and distinguish itself from other similar organizations.

Question 75

Cott Corporation pursues a focused differentiation strategy in that it focuses on large retail chains and strives to be the lowest-cost company serving that segment of the market.

Question 76

Strategy implementation involves three steps.

Question 77

Good goal formulation means making goals which are SMART + C.

Question 78

The organization's vision is generally set by the CEO.

Question 79

Implementing a strategy may require redesigning the structure, changing the culture, and developing new control systems in the organization.

Question 80

Attaining superior quality products and services is a way of gaining a competitive advantage.