Deck 4: Planning and Strategic Management

Question 1

Making decisions about the organization's short-term goals and strategies is called strategic planning.

Answer 1

False

Question 2

The basic planning cycle goes in one dimension - into the future.

Answer 2

False

Question 3

There are four key drivers of a firm's long-term success: people,processes,customer value,and growth in financial assets.

Answer 3

True

Question 4

Tactical plans may have a time horizon of a year or two,and operational plans may cover a period of months.

Question 5

Situational analysis,as part of the formal planning process,focuses on internal forces at work within the organization and examines influences from the external environment.

Question 6

The strategic management process includes four major components.

Question 7

An organization's strategic and tactical plans must be based upon the original operational plans.

Question 8

Traditionally,strategic management has emphasized a bottom-up approach.

Question 9

Goals need not be linked to a time frame but should be measurable.

Question 10

Tactical plans contain a low level of detail.

Question 11

Operational planning identifies the specific procedures and processes required at lower levels of the organization.

Question 12

Standing plans might be called "what if" plans.

Question 13

An organization's mission statement describes the organization's basic purpose.

Question 14

The final step in the formal planning process--monitoring and controlling--is often overemphasized.

Question 15

Strategic management involves managers from all parts of the organization in the formulations and implementation of strategic goals and strategies.

Question 16

Strategic goals are major targets or end results that relate to the long-term survival,value,and growth of the organization.

Question 17

General decision-making stages and specific formal planning steps are quite similar.

Question 18

A tactic is a pattern of actions and resource allocations designed to achieve the goals of the organization.

Question 19

When using scenario planning,a different contingency plan is attached to each scenario.

Question 20

A strategy map provides managers with a tool to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play in helping to achieve them.

Question 21

A corporate strategy defines the major actions by which an organization builds and strengthens its competitive position in the marketplace.

Question 22

Stakeholders are groups and individuals who affect and are affected only by the cost analysis of the company.

Question 23

Businesses using a low-cost strategy attempt to be efficient and offer a standard,no-frills product.

Question 24

When resources are valuable,rare,difficult to imitate,and organized,they can be viewed as a company's core competencies.

Question 25

Conglomerate diversification involves moving into new businesses that are not related to the company's original core business.

Question 26

The mission and vision of an organization evolve from its strategic goals.

Question 27

The Boston Consulting Group Matrix helps managers of individual businesses develop strategies to evaluate their strategy alternatives.

Question 28

A thorough environmental analysis includes a human resources analysis.

Question 29

When a manager tries to understand "best practices" in his/her industry,s/he is practicing "competitive intelligence."

Question 30

A core competence is something a company does poorly in,compared to its competitors.

Question 31

Skilled organization management would be listed as a strategic opportunity in a typical SWOT analysis.

Question 32

An environmental analysis should include buyers,suppliers,government and regulatory agencies and trade associations.

Question 33

An internal resource analysis includes assessing the major functional areas inside the organization.

Question 34

An organization's mission statement is long-term oriented while a strategic vision is short-term oriented.

Question 35

Marco started in business 30 years ago as the owner of a small bakery.Then,he baked bread for the local supermarkets in town.Today he owns his own chain of retail stores and bakes not only bread for them but many other types of products such as pastries,cakes,and cookies.Marco has successfully used the concentric diversification strategy.

Question 36

A concentration strategy involves expanding the domain of the organization into supply channels and to distributors.

Question 37

Resources are inputs to production that can be accumulated over time to enhance performance of the organization.

Question 38

A corporate strategy identifies the set of businesses,markets,or industries in which the organization competes and the distribution of resources among those businesses.

Question 39

When using a differentiation strategy,businesses attempt to be efficient and offer a standard product.

Question 40

Concentric diversification involves moving into new businesses that are not related to the company's original core business.

Question 41

Essential to developing a system that will monitor and control the implementation of plans developed in the formal planning process is the establishment of

A)sanctions for improper performance.
B)control systems.
C)a "control leader."
D)contingency plans for various scenarios.
E)strategic planning motives.

Question 42

Which of the steps in the formal planning process involves studying past events,examining current conditions and forecasting future trends?

A)Situational analysis
B)Alternative goals and plans
C)Goal and plan evaluation
D)Goal and plan selection
E)Monitor and control

Question 43

Which is the first step in the formal planning process?

A)Goal and plan evaluation
B)Situational analysis
C)Monitor and control
D)Implementation
E)Alternative goals and plans

Question 44

Plans

A)are targets a manager wants to reach.
B)are actions or means the manager intends to use to achieve goals.
C)are specific to different industries.
D)are inappropriate when resources are scarce.
E)do not change over time.

Question 45

Alpha Associates often uses groups to consider the advantages,disadvantages and potential effects of goals and plans.Alpha Associates is involved in which basic planning stage?

A)Goal and selection
B)Implementation
C)Monitor and control
D)Alternate goals and plans
E)Goal and plan evaluation

Question 46

In the _______________ stage of the planning process managers should weigh the advantages,disadvantages,and potential effects of each alternative goal and plan.

A)goal and plan evaluation
B)goal and plan selection
C)implementation
D)monitor and control
E)alternate goals and plans

Question 47

Which of the following describes good plans in organizations?

A)Organizational plans are set and firm.
B)An organizational plan describes what managers decide to do but not specifically how they will do it.
C)An organizational plan provides the framework,focus,and direction required for a meaningful effort.
D)Organizational plans may be formal or informal.
E)Actually organizational improvements are best accomplished in the moment without a plan.

Question 48

_____________ plans might be referred to as "what-if" plans.

A)Single-use
B)Strategic
C)Contingency
D)Standing
E)Tactical

Question 49

The targets or ends the manager wants to reach are called

A)goals.
B)plans.
C)a mission statement.
D)a vision statement.
E)the strategy.

Question 50

A strategic control system must simultaneously pursue both efficiency and flexibility.

Question 51

Functional strategies are implemented by top-level managers.

Question 52

Goals established during the planning process must be based upon the

A)probability of success.
B)needs of management personnel.
C)competition's plans.
D)situational analysis.
E)likelihood of social change.

Question 53

To be effective,goals should be

A)flexible.
B)just out of reach.
C)open-ended.
D)collaborative.
E)attainable.

Question 54

If expansion to Eastern Europe does not materialize,Widget,Inc.'s backup plan is to expand to South America.This backup plan is an example of

A)strategic plan.
B)single-use plan.
C)contingency plan.
D)standing plan.
E)trial-and-error plan.

Question 55

The outcome of situational analysis is the

A)identification of alternative plans of action.
B)identification of contingency plans to be followed under various scenarios.
C)identification of planning assumptions,issues and problems.
D)identification of the consequences of those alternatives under consideration.
E)development of the organization's strategy.

Question 56

Once alternative goals and plans have been identified,the next step in the formal planning process is

A)the situational analysis.
B)goal and plan evaluation.
C)implementation.
D)monitor and control.
E)goal and plan selection.

Question 57

Implementation of selected goals and plans will be most successful when

A)only managers participate in the planning process.
B)limited resources are provided for implementation.
C)the goals and plans are linked to other organizational systems.
D)the employees remain skeptical of the plan.
E)employees are brought into the process just after the decision to implement is made.

Question 58

Which step in the formal planning process is sometimes ignored?

A)Goal and plan evaluation
B)Situational analysis
C)Monitor and control
D)Implementation
E)Alternative goals and plans

Question 59

Which of the following statements about goal and plan selection is most true?

A)Goal and plan selection relies exclusively on experienced judgment.
B)Experienced judgment always plays an important role in goal and plan selection.
C)Facts have no role in goal and plan selection.
D)Competitors' internal plans play an important role in goal and plan selection.
E)A good goal and plan selection can be used in every circumstance.

Question 60

The three levels of planning are

A)strategic,business and operational.
B)strategic,synergistic and operational.
C)strategic,tactical and operational.
D)visionary,strategic and operational.
E)visionary,business,and detailed.

Question 61

A pattern of actions and use of resources which is developed with the intention to achieve the goals of an organization is referred to as

A)strategic goals.
B)tactical plans.
C)a strategy.
D)strategic operationalizing.
E)mission development.

Question 62

An organization's strategic,operational and tactical goals must be

A)aligned.
B)consistent.
C)mutually supportive.
D)focused on company purpose.
E)all of the above.

Question 63

Tactical planning would include which of the following?

A)Profit goals
B)Design,test,and install the equipment needed to produce a new product line.
C)Production runs
D)Human resources requirements
E)Return on investment

Question 64

Which of the following is a component of strategic management?

A)Establishment of mission,vision and goals
B)SWOT analysis
C)Strategy formulation
D)Strategy implementation
E)All of the above are components of strategic management.

Question 65

The strategy map would include information about which of the following?

A)Financial goals
B)Customer goals
C)Internal goals
D)Learning and growth goals
E)All of the above types of information are included in a strategy map.

Question 66

The level of planning involving the longest time frame is

A)operational planning.
B)missionary planning.
C)tactical planning.
D)departmental planning.
E)strategic planning.

Question 67

Traditionally,strategic planning has emphasized a _______ approach.

A)trial-and-error
B)top-down
C)bottom-up
D)consultative
E)collaborative

Question 68

A business's basic statement of purpose refers to its

A)vision.
B)mission.
C)strategy.
D)policy.
E)objective.

Question 69

Examples of strategic goals are

A)production scheduling,training of personnel,accounting procedures,updating equipment used.
B)profit levels,share value,growth,return on investment,societal impact.
C)advertising expenditures,sales levels,product use innovations,customer feedback levels.
D)absenteeism levels,benefit usage and value,human resource utilization,compliance with civil rights laws.
E)meeting ISO 9001 standards.

Question 70

The process of identifying the specific procedures and processes required at lower levels of the organization is called

A)strategic planning.
B)operational planning.
C)tactical planning.
D)contingency planning.
E)divisional planning.

Question 71

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies is called

A)management organization.
B)environmental analysis.
C)strategic management.
D)operational planning.
E)strategic planning.

Question 72

"To be the world's best quick-service restaurant experience" is an example of a(n)

A)strategic vision statement.
B)mission statement.
C)tactical goal.
D)operational goal.
E)divisional goal.

Question 73

The level of planning that focuses on routine tasks and a relatively limited time frame is

A)operational planning.
B)missionary planning.
C)tactical planning.
D)departmental planning.
E)strategic planning.

Question 74

The long-term direction and strategic intent of a company refers to its

A)purpose.
B)mission.
C)vision.
D)goals.
E)objectives.

Question 75

Strategic goals are

A)major targets or end results that relate to the long-term survival,value,and growth of the organization.
B)focused solely on effectiveness.
C)focused solely on efficiency.
D)focused on the short-term.
E)developed by operational managers.

Question 76

A set of procedures for making decisions about the organization's long-term goals and strategies is called

A)a mission statement.
B)a vision statement.
C)strategic planning.
D)tactical planning.
E)operational planning.

Question 77

Typical operational planning might focus on

A)production scheduling and training of personnel.
B)profit levels,share value,growth,return on investment.
C)advertising expenditures,sales levels,product use innovations,customer feedback levels.
D)absenteeism levels,benefit usage and value,human resource utilization,compliance with civil rights laws.
E)corporate social responsibility.

Question 78

A ____________ statement clarifies the long-term direction of the company and its __________.

A)mission;strategic intent
B)vision;strategic intent
C)vision;operational goals
D)mission;tactical goals
E)vision,tactical goals

Question 79

Who is responsible for the organization's strategic plan?

A)Senior executives
B)Middle management
C)First-line supervisors
D)Tactical managers
E)Organization directors

Question 80

_______ planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization.

A)Operational
B)Tactical
C)Traditional
D)Bottom-up
E)Objective