Deck 6: Establishing Goals, Plans and Strategies

Question 1

A mission statement is a means devised for attempting to reach a goal.

Answer 1

False

Question 2

There are eight major areas for strategic goals. They include market standing, human resources, profit requirements and targets.

Answer 2

False

Question 3

For goals to be specific and measurable, they may use numerical standards and subjective judgement.

Answer 3

True

Question 4

Five major factors positively influence goal commitment. They include supervisory authority, peer and group pressure, public display of commitment and incentives and rewards.

Question 5

Operational plans are plans that involve time frames ranging somewhere between 1-3 years.

Question 6

There are three major kinds of standing plans: policies, procedures and projects.

Question 7

Strategic Business Units (SBUs) are managed independently of others in the organisation but do not have their own competitors. The SBU is therefore a functional-level strategy.

Question 8

Functional areas are important as they develop distinctive competencies that potentially give the company competitive advantages.

Question 9

The planning function basically consists of two parts. They are:

A) goals and plans.
B) programs and projects.
C) strategic and tactical.
D) single-use and standing.

Question 10

The two parts of the planning process are essentially:

A) deciding what we want to achieve and how we will get there.
B) deciding the quantity requirements and then deciding the quality requirements.
C) deciding who will lead the team and who will be setting the goals.
D) deciding the team members who would like to take part in the planning process and deciding what we want to achieve.

Question 11

The broad statement, written or not, that distinguishes the organisation from others of its type (through a declaration of the basic, unique purpose and scope of its operations) is called the organisation's mission.
A mission statement is:

A) an organisational plan.
B) a statement of intent.
C) a statement of the organisation's purpose.
D) an organisation's goals.

Question 12

When analysing mission statements, similar components are evident in many top firms. Which component is unlikely to be included?

A) Location
B) Concern for survival
C) Future target
D) Concern for employees

Question 13

A number of major benefits can result for an organisation through the use of goals. Which of the following would be one of them?

A) Performance does not increase but employees receive direction
B) Increase in performance by managers only
C) Increase in performance by a wide range of organisation members
D) Less time required for the planning process

Question 14

There are three levels of goals in a typical organisation. Which statement is correct?

A) Top management is responsible for broadly defined targets.
B) Middle management is responsible for broad future results and targets for specific departments.
C) Lower management is not in the position to set targets.
D) Top management is responsible for setting all organisational goals.

Question 15

The hierarchy of goals concept is illustrated by the means-end chain of goals which suggests that the:

A) short-term goals become the intermediate-range plans, which then become the long-term goals.
B) top-level managers determine what is to be done by middle-level managers, who in turn determine what bottom-level managers will do.
C) operational-level goals must be achieved in order to reach tactical-level goals, which must be achieved in order to reach strategic goals.
D) authority to set goals must flow from the top down through each successive level of the organisation.

Question 16

In order for tactical goals to be effective, the goals need to reflect a number of major characteristics: challenging, relevant, attainable, specific and measurable and:

A) supra-departmental.
B) time-limited.
C) controlled.
D) means-end.

Question 17

Numerous research studies have found that providing goals have been accepted, employees try harder when:

A) goals are easier to reach.
B) goals are more challenging.
C) employees have been asked to do their best.
D) goals are broader.

Question 18

If goals seem meaningless or appear to be an after-thought, the problem is likely the lack of:

A) relevance.
B) determination.
C) quantification.
D) specificity.

Question 19

Peer and group pressure, expectations of success, and incentives and rewards can all play important parts in influencing a person's or a group's:

A) goal-dynamics stance.
B) standing plan.
C) goal commitment.
D) goal redefinition and deprioritisation.

Question 20

Numerous studies have found a positive correlation between goals and performance. There is one critical ingredient, however, that must be present before this positive correlation holds true. It is called:

A) goal valence.
B) goal replacement.
C) supra-goal identification and prioritisation.
D) goal commitment.

Question 21

Goal content and goal commitment combine to affect actual work behaviour by influencing four specific work behaviours: persistence, planning:

A) participation and co-opting.
B) direction and effort.
C) quantity and quality.
D) strategies and tactics.

Question 22

Low ______________ and low goal commitment can result when goals are set beyond the reach of individuals and groups who must achieve them.

A) expectations of success
B) peer pressure
C) public displays
D) managerial/subordinate interfacing

Question 23

Excessive risk taking, increased stress and excessive short-run thinking are all potential:

A) contributors to increased performance.
B) results of an MBO program.
C) pitfalls associated with the use of goals.
D) hazards usually eliminated through good planning.

Question 24

If goals are the desired ends, ____________ are the means to achieving those ends.

A) commitments.
B) plans.
C) contracts.
D) groups.

Question 25

Plans that address such issues as how to respond to changing conditions and how to allocate resources developed by top management and usually cover a relatively long-time horizon are mostly called:

A) strategic plans.
B) primary plans.
C) essential plans.
D) official plans.

Question 26

Strategic plans are those that are generally:

A) set by top-level managers.
B) focused on a time frame of one to three years.
C) outlining the steps the various departments will take.
D) derived from tactical plans.

Question 27

Middle managers and lower-level managers would best work together to set and align:

A) participative and tactical plans.
B) tactical and operational plans.
C) operational and directive plans.
D) they should never work together.

Question 28

When plans are categorised according to their recurring use, the two most frequently used categories are:

A) single-use and multiple-use plans.
B) single-use and standing plans.
C) single-use and reusable plans.
D) non-recurring and recurring plans.

Question 29

Which of the major types of standing plans provides general boundaries for actions, and is used as a general guide?

A) Project
B) Procedure
C) Program
D) Policy

Question 30

A company that says it is truly an equal opportunity employer (in that all hiring and promoting will be based only on qualifications) is stating a:

A) project.
B) procedure.
C) rule.
D) policy.

Question 31

A prescribed set of steps to follow each time a certain set of circumstances occurs is called:

A) a policy.
B) a procedure.
C) a standard.
D) an operational plan.

Question 32

Plans can relate to different time periods, but they often depend on environmental factors. In fluid environments, the time frame is most likely to be:

A) longer than five years, but less than 10 years.
B) no longer than one or two years.
C) less than five years.
D) subject to change at any time.

Question 33

Planning by the supervisor of the finishing department of a manufacturing firm, to rearrange the location of several pieces of equipment so that processing a new order can begin on time (i.e. three months from now), would be an example of:

A) an operational plan.
B) a tactical goal.
C) a tactical plan.
D) a strategic goal.

Question 34

Insufficient training of line managers, domination by staff specialists and a rapidly changing environment are potential obstacles threatening the ability of organisations to:

A) develop effective plans.
B) develop a mission statement.
C) develop strategic plans from operational goals.
D) convert their single-use plans into standing plans.

Question 35

MBO is primarily:

A) a planning technique for operational levels of an organisation.
B) an organisation-wide process for setting goals for the organisation, for each unit and for each individual.
C) a method of operationalising strategic goals set by upper level managers.
D) a plan to encourage group decision making in converting strategic plans into tactical goals.

Question 36

A number of strengths and benefits have been identified that an organisation might enjoy if it could implement and maintain an MBO program. Which of the following is not one of them?

A) Coordination of goals and plans is increased
B) There is less need for communications between organisational levels
C) Controlling is aided by the establishment of benchmarks at all levels
D) Motivation is usually increased

Question 37

There are six steps in the MBO process. They include the development of overall organisational goals, the establishment of specific goals, the formulation of action plans and:

A) implementation of plans, which require increased involvement by the supervisor.
B) bi-monthly or quarterly reviews of plans and strategic goals.
C) annual evaluation of performance including recognition and future development.
D) All of the given answers are correct

Question 38

Strategies are defined as:

A) large-scale action plans for interacting with the environment.
B) those action statements derived from the corporate mission statement.
C) corporate-level and business-level environmental interaction statements.
D) being the first step in the planning process.

Question 39

Strategic management is defined as being the process through which managers formulate and _____________ strategies geared to optimising strategic goal achievement, given available environmental and internal conditions.

A) describe
B) delegate
C) control
D) implement

Question 40

Strategies are often developed at three different organisational levels:

A) corporate, business and functional.
B) strategic, tactical and functional.
C) functional, tactical and operational.
D) low, moderate and high.

Question 41

The level of strategy within the organisation that addresses such issues as deciding the type of competitive advantage to build, determining responses to changing environmental, and competitive conditions and coordinating functional-level strategies is referred to as:

A) corporate-level strategy.
B) middle-level strategy.
C) principal-level strategy.
D) business-level strategy.

Question 42

The strategic business unit (SBU) is:

A) a distinct business managed together with others in the organisation.
B) a distinct business which is managed independently of others in the organisation.
C) another name for an organisation.
D) a strategic business unit managing other departments in the organisation.

Question 43

If an organisation consists of only a single business unit, the _____________ -level and the_____________ -level strategies are essentially the same.

A) corporate/umbrella
B) corporate/business
C) executive/corporate
D) operational/business

Question 44

Regardless of the approach an organisation uses in making its strategic management decisions, an analysis should be made of the competitive situation. One such analysis that assesses both the external and the internal factors influencing an organisation's ability to compete is called the:

A) SWOT analysis.
B) in-out analysis.
C) SBU analysis.
D) competitive matrix analysis.

Question 45

Porter suggests that the greater the rivalry:

A) the higher the costs.
B) the lower the costs.
C) the higher the profit potential for businesses in an industry.
D) the lower the profit potential for businesses in an industry.

Question 46

Unique organisational strengths that competitors cannot easily match or imitate are called:

A) match-ups.
B) initiators.
C) distinctive competencies.
D) intrinsic directed advantages.

Question 47

Galbraith and Kazanjian (1986) suggest that several internal aspects of an organisation may need synchronising in order to put a strategy into place. Principal factors include technology and:

A) financial resources.
B) bargaining power.
C) competitive position.
D) reward systems.

Question 48

What are the major components of the overall planning process? Indicate why goals are so important to the process.

Question 49

What are the major benefits of goals and how do they vary across the levels of an organisation?

Question 50

How does understanding the ways goals facilitate performance affect the role of the planning process?

Question 51

What are the major steps in the Management by Objectives (MBO) process? Describe what happens at each step of MBO.

Question 52

Further investigate the topic of Management by Objectives on the internet or in library databases. What are the MBO strengths and weaknesses that a manager should know in order to assess MBO programmes?

Question 53

Why is the strategic management process important and what options for strategy occur at different levels of an organisation?

Question 54

What are the concepts and applications of the BCG Matrix? Give examples related to local businesses of which you are aware.

Question 55

In what ways does the McKinsey 9-Cell Matrix provide a clear and sound logic to guide managers?

Question 56

In what ways are Porter's (1980) 3 generic strategies different from Buzzell et al.'s (1975) 3 generic strategies? Name and explain Porter's strategies.

Question 57

How can a manager put strategy implementation, control and evaluation into place?