Deck 7: Planning and Strategy

Question 1

Johnson & Johnson considers their first responsibility to be making a sound profit for stockholders.

Answer 1

False

Question 2

When planning is done properly, it fosters organization-wide learning, including the discovery of key problems, opportunities, and new strategies.

Answer 2

True

Question 3

Planning is defined as identifying organizational controls and developing ways to implement them.

Answer 3

False

Question 4

The ability to plan by an individual, team, or organization is embedded in four of the six managerial competencies.

Question 5

Johnson & Johnson's organizationwide planning involves the principle of decentralized management.

Question 6

Dell Computer's mission statement includes: "To add value to our communities through diversity, environmental, and citizenship initiatives."

Question 7

Goals must be expressed quantitatively, not qualitatively.

Question 8

The strategies of an organization are what it is committed to achieving.

Question 9

The strategic business model of Johnson & Johnson is broadly based in __________.

A) household products
B) human health care
C) boat engines and equipment
D) consumer needs

Question 10

Which of the following is not something that successful planning should assist the organization to accomplish?

A) discovering future opportunities
B) anticipating and avoiding future problems
C) developing courses of action
D) Successful planning should assist the organization in accomplishing all of the above.

Question 11

The most basic managerial function is __________.

A) organizing
B) planning
C) directing
D) leading

Question 12

Planning should improve the odds of achieving an organization's goals by _________.

A) creating desirable change
B) improving productivity
C) maintaining organizational stability
D) all of the above

Question 13

William Weldon, CEO of Johnson & Johnson says, "Our decentralized management system gives us a __________."

A) method to accurately appraise profitability for each business unit
B) greater opportunity to recognize local talent
C) sense of ownership in local markets
D) completely different approach for each market

Question 14

__________ had a contingency communication plan that worked well after the September 11 attacks, but they have now additionally routed their telecommunications channels through multiple access points.

A) Verizon
B) The New York Stock Exchange
C) The Bank of New York
D) American Airlines

Question 15

The Bank of New York has established an "active-active" business model which uses __________.

A) multiple sites for identical functions
B) cross training of less critical functions
C) greater geographic diversity across the country
D) all of the above

Question 16

Which of the following is not a goal of Johnson & Johnson discussed in the text?

A) achieve double-digit revenue growth per year
B) reduce carbon dioxide emissions
C) create injury-free workplaces
D) improve quality of life for customers

Question 17

Dell Computer's ability to __________, and tailor products and services accordingly, is the key to having the lowest cost and most effective customer service.

A) control the market
B) segment the market
C) respond to the market
D) sell direct to the public

Question 18

Which of the following is not one of the four interrelated competitive strategies developed by Dell Computer?

A) speed to market
B) superior customer service
C) early exploitation of the Internet
D) All of the above are among the four interrelated competitive strategies.

Question 19

GE needs board of directors members to do all of the following except __________.

A) represent diverse industries
B) be critical of the company
C) have greater involvement in the company
D) approve financial strategies

Question 20

GE implemented functional documents to fully comply with Sarbanes-Oxley legislation, as well as their own vision of __________.

A) environmental protection
B) corporate governance
C) diversity in the workforce
D) homeland security

Question 21

Harris Ranch, a cattle ranch and commercial feedlot operation located along Interstate Highway 5 in California, opened a restaurant to serve its high quality beef to travelers. This decision characterizes __________ integration.

A) forward
B) backward
C) horizontal
D) conglomerate

Question 22

The merger between America Online (AOL) and Time Warner was viewed by top management as a form of ______________ diversification.

A) forward
B) backward
C) horizontal
D) concentric

Question 23

Warren Buffett's strategy with Berkshire Hathaway can be characterized as __________.

A) concentric
B) conglomerate
C) backward
D) forward

Question 24

Warren Buffett's unique success with Berkshire Hathaway is characterized by all of the following comments on the way he manages his operations except:

A) "To be a winner, work with a winner."
B) "Our actions are based on long-term interests rather than short-term, expedient solutions."
C) "My job is to stay out of their way and allocate whatever excess capital their businesses generate."
D) "I regularly hand bats to many of the heaviest hitters in American business."

Question 25

How should planning should assist leaders and managers?

Question 26

Describe three of the five common corporate-level growth strategies.

Question 27

Describe the relationship of strategy to tactics, and the ways in which First American Corporation (FAC) implemented tactical plans related to their new "customer intimate" strategy.