Deck 4: Strategic and Operational Planning

Question 1

The three planning levels are corporate,business,and daily.

Answer 1

False

Question 2

A corporate strategy is the strategic plan for managing multiple lines of business.

Answer 2

True

Question 3

Operational planning is the process of developing a mission and long-range objectives and determining in advance how they will be accomplished.

Answer 3

False

Question 4

Critical success factors are what a firm does well.

Question 5

Performance factors are the few major things that the business must do well to be successful.

Question 6

Strategic planning is the process of developing a mission and long-range objectives and determining in advance how they will be accomplished.

Question 7

"Perfect service for every customer" is considered an effective objective.

Question 8

The strategic planning process is a linear process.

Question 9

The five planning dimensions include management level,type of plan,scope,time,and repetitiveness.

Question 10

A business strategy is the strategic plan for managing multiple lines of business.

Question 11

A functional strategy is the strategic plan for managing one line of business.

Question 12

The writing effective objectives model includes (1)the word to followed by (2)an action verb; (3)a statement of the single,specific,and measurable result to be achieved; and (4)a target date.

Question 13

A situation analysis focuses on those features in a company's environment that most directly affect its options and opportunities.

Question 14

"To earn a net profit of $1 million in 2011" is considered an effective objective.

Question 15

Scanning the environment is the process of comparing an organization's products or services and processes with those of other companies.

Question 16

A SWOT analysis focuses on those features in a company's environment that most directly affect its options and opportunities.

Question 17

Upper-level managers develop operational plans.

Question 18

Developing the mission is the first step in the strategic planning process.

Question 19

Objectives state what is to be accomplished in singular,specific,and measurable terms with a target date.

Question 20

A strategy is a plan for pursuing a mission and achieving objectives.

Question 21

An acquisition occurs when one business buys all or part of another business.

Question 22

With an integration strategy,the organization enters a new line or lines of business related to the existing one(s).

Question 23

A company is a single line of business cannot conduct a business portfolio analysis.

Question 24

Management by objectives (MBO)is the process in which managers set objectives for their employees,periodically evaluate the performance,and reward according to the results.

Question 25

An example of a cash cow is VCRs.

Question 26

The analyzing adaptive strategy resembles the stability grand strategy.

Question 27

Policies are more specific than procedures.

Question 28

With a focus strategy,the company focuses on a specific regional market,product line,or buyer group.

Question 29

Grand strategy is an overall strategy for growth,stability,or turnaround and retrenchment,or for some combination of these.

Question 30

Contingency plans are alternative plans to be implemented if uncontrollable events occur.

Question 31

The prospecting adaptive strategy resembles the grand strategy of growth.

Question 32

Growth strategies are concentration,related and unrelated integration,and backward and forward diversification.

Question 33

"No smoking in the work area," is an example of a company policy.

Question 34

Functional strategies are strategies developed and implemented by managers in marketing,operations,human resources,finance,and other departments of a company.

Question 35

A cost leadership strategy is used when an organization offers a product with the highest quality at the highest price.

Question 36

A merger occurs when one business buys all or part of another business.

Question 37

A spinoff is a form of retrenchment in which a corporation sets up one or more of its business or units as a separate company rather than selling it.

Question 38

Budgets are examples of single-use plans.

Question 39

Groups that participate in setting their objectives generally outperform groups with assigned objectives.

Question 40

Business portfolio analysis is the corporate process of determining which lines of business the corporation will be in and how it will allocate resources among them.

Question 41

Which of the following is NOT one of the four "must" criteria an effective objective must conform to?

A) single result
B) measurable
C) specific
D) participatively set

Question 42

Two aspects of a company's competitive advantage are core competency and:

A) single-use plans.
B) benchmarking.
C) SWOT analysis.
D) critical success factors.

Question 43

A functional strategy is the operational plan for:

A) managing multiple lines of businesses.
B) managing one line of business.
C) managing one area of a business.
D) none of these

Question 44

The five planning dimensions include all of the following EXCEPT:

A) management level.
B) type of plan.
C) time.
D) controls.

Question 45

With a __________ strategy,the company makes aggressive attempts to increase its size through increased sales.

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

Question 46

__________ strategy is an overall corporate strategy for growth,stability,or turnaround and retrenchment,or for some combination of these.

A) Grand
B) Corporate
C) Functional
D) Contingency

Question 47

A business strategy is the strategic plan for:

A) managing multiple lines of businesses.
B) managing one line of business.
C) managing one area of a business.
D) none of these

Question 48

The fifth step of the strategic planning process involves implementing and controlling strategies to ensure that the mission and objectives are achieved.

Question 49

Which of the following is NOT one of the three "want" criteria an effective objective must conform to?

A) difficult but achievable
B) enjoyable
C) participatively set
D) acceptance and commitment

Question 50

Strategic planning is the process of developing a mission and long-range objectives and:

A) setting goals.
B) determining in advance how they will be accomplished.
C) assigning who will accomplish them.
D) determining which planning level will accomplish them.

Question 51

An effective objective contains a(n):

A) target date.
B) action verb.
C) statement of the single, specific, and measurable result to be achieved.
D) all of these

Question 52

Which of the following is NOT one of the three planning levels for strategic and operational types of plans?

A) business
B) departmental
C) functional
D) corporate

Question 53

The five competitive forces identified by Michael Porter include all of the following EXCEPT:

A) rivalry among competing sellers in the industry.
B) threat of substitute products and services.
C) potential new entrants.
D) power of the top management team.

Question 54

One difference between strategic planning and operational planning is:

A) the time frame involved.
B) their success rate.
C) the effort involved.
D) budgeted resources.

Question 55

__________ is the process in which managers and their employees jointly set objectives for the employees,periodically evaluate performance,and reward according to the results.

A) Benchmarking
B) Management by objectives
C) Strategic planning
D) SWOT analysis

Question 56

A corporate strategy is the strategic plan for:

A) managing multiple lines of businesses.
B) managing one line of business.
C) managing one area of a business.
D) none of these

Question 57

The steps in the strategic planning process include all of the following EXCEPT:

A) setting objectives.
B) developing strategies.
C) analyzing the environment.
D) setting rules.

Question 58

__________ is the process of comparing an organization's products or services and processes with those of other companies.

A) Scanning the environment
B) SWOT analysis
C) Strategic planning
D) Benchmarking

Question 59

A company situation analysis is used at the __________ level.

A) corporate
B) business
C) functional
D) departmental

Question 60

A SWOT analysis is used to determine:

A) what can be done to deal with a specific problem confronting the company.
B) a company's critical success factors.
C) an organization's internal environmental strengths and weaknesses and external environmental opportunities and threats.
D) none of these

Question 61

In the BCG Growth-Share matrix,__________ generate more resources than they need.

A) cash cows
B) dogs
C) question marks
D) stars

Question 62

A(n)__________ is a distinct business having its own customers that is managed independently of other businesses within the corporation.

A) conglomerate
B) strategic business unit
C) strategic alliance
D) none of these

Question 63

Charging a high price to recover investment may be appropriate for the __________ stage.

A) introduction
B) growth
C) maturity
D) decline

Question 64

When Nike added sports clothing to its athletic shoe line,it used:

A) forward integration.
B) backward integration.
C) related diversification.
D) unrelated diversification.

Question 65

With a __________ strategy,the company divests or liquidates assets.

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

Question 66

With a __________ strategy,the company attempts to reverse a declining business as quickly as possible.

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

Question 67

The __________ strategy resembles the combination grand strategy.

A) defending
B) analyzing
C) prospecting
D) marketing

Question 68

Through __________,the organization grows aggressively in its existing line(s)of business.

A) concentration
B) forward integration
C) backward integration
D) related diversification

Question 69

In the BCG Growth-Share matrix,__________ are entries into new businesses in high-growth markets.

A) dogs
B) stars
C) question marks
D) cash cows

Question 70

The __________ strategy involves moving into new market areas at a cautious,deliberate pace and/or offering a core product group and seeking new opportunities.

A) defending
B) marketing
C) analyzing
D) prospecting

Question 71

A manufacturer establishing its own retail outlets in order to be closer to the final customer exemplifies:

A) forward integration.
B) related diversification.
C) backward integration.
D) unrelated diversification.

Question 72

The __________ strategy calls for aggressively offering new products and services and/or entering new markets.

A) prospecting
B) defending
C) analyzing
D) marketing

Question 73

A conglomerate is an example of:

A) forward integration.
B) backward integration.
C) related diversification.
D) unrelated diversification.

Question 74

A manufacturer that begins producing its own components exemplifies:

A) backward integration.
B) unrelated diversification.
C) related diversification.
D) forward integration.

Question 75

With a __________ strategy,the company attempts to hold and maintain its present size or to grow slowly.

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

Question 76

A(n)__________ occurs when two companies form one corporation.

A) merger
B) acquisition
C) joint venture
D) strategic alliance

Question 77

With a __________ strategy,a company stresses its advantage over its competitors.

A) focus
B) differentiation
C) cost leadership
D) marketing

Question 78

In the BCG Growth-Share matrix,__________ have low returns in a low-growth market and have low relative market share.

A) question marks
B) cash cows
C) stars
D) dogs

Question 79

In the BCG Growth-Share matrix,__________ are emerging businesses with high growth and market share.

A) cash cows
B) dogs
C) question marks
D) stars

Question 80

A defending strategy is appropriate for the __________ stage.

A) introduction
B) growth
C) maturity
D) decline