Deck 4: Planning and Strategic Management

Question 1

Operational plans may have a time horizon of a year or two,while tactical plans may cover a period of months.

Answer 1

False
Explanation: Tactical plans may have a time horizon of a year or two,while operational plans may cover a period of months.Tactical plans focus on the major actions a unit must take to fulfill its part of the strategic plan.

Question 2

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

Answer 2

False
Explanation: Strategic goals evolve from the mission and vision of an organization.The chief executive officer of the organization,with the input and approval of the board of directors,establishes the mission,vision,and major strategic goals.

Question 3

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

Answer 3

True
Explanation: The mission is a clear and concise expression of the basic purpose of an organization.It describes what the organization does,whom it does it for,its basic good or service,and its values.

Question 4

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

Question 5

Contingency plans are commonly used to respond to stable external environments.

Question 6

The strategic management process begins with the analysis of internal strengths and weaknesses.

Question 7

Planning provides individuals and work units with a clear map that is rigid.

Question 8

A thorough environmental analysis includes a human resources analysis.

Question 9

The final step in the formal planning process-monitoring and controlling-is overemphasized by many companies.

Question 10

The most effective vision statements inspire organization members.

Question 11

The effectiveness of a firm's internal processes is one of the four key drivers of its long-term success.

Question 12

Contingency plans might be called "what if" plans.

Question 13

The steps followed during formal planning are similar to the basic decision-making steps.

Question 14

A strategy map illustrates how organization's strategic and operational goals can be aligned.

Question 15

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

Question 16

Strategic planning involves making decision about an organization's short-term goals.

Question 17

Situational analysis focuses on internal forces at work within the organization and examines influences from the external environment.

Question 18

Tactical plans contain a medium level of detail.

Question 19

One of the six major components in the strategic management process is the BCG matrix.

Question 20

To be effective,goals should be general rather than specific.

Question 21

The Boston Consulting Group Matrix helps managers evaluate their strategy alternatives for the entire business portfolio.

Question 22

Concentric diversification involves moving into new businesses that are unrelated to the company's original core business.

Question 23

The goal of diversification is to thoroughly understand the "best practices" of other firms in order to make changes to achieve better performance and lower costs.

Question 24

Resources are the inputs to a system that can enhance performance.

Question 25

_____ is the conscious,systematic process of making decisions about goals and activities that an individual,group,work unit,or organization will pursue in the future.

A) Buffering
B) Benchmarking
C) Budgeting
D) Planning
E) Forecasting

Question 26

A corporate strategy is defined as the major actions by which a business competes in a particular industry or market.

Question 27

Focusing on offering the most inexpensive products is one type of a differentiation strategy.

Question 28

In an environmental analysis,the difference between an opportunity and a threat may often be how a company positions itself strategically.

Question 29

If resources are difficult to imitate,they provide a source of competitive advantage.

Question 30

A core capability is something a company does especially well relative to its competitors.

Question 31

Functional strategies are implemented by top-level managers.

Question 32

Stakeholders are groups and individuals who affect and are affected by the achievement of an organization's mission,goals,and strategies.

Question 33

Financial analysis is one of the major components of an internal resource analysis.

Question 34

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

Question 35

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

Question 36

A corporate strategy identifies the type of relationship with regulatory and other government agencies that would create or maintain a profitable foundation for a firm.

Question 37

Which of the following is a step in the formal planning process that 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 38

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

Question 39

Well-known and highly regarded brands would be listed as a firm's opportunity in a typical SWOT analysis.

Question 40

Which of the following is the first step in a formal planning process?

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

Question 41

The process of identifying the specific procedures and processes required at lower levels of an organization is known as:

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

Question 42

Stacy,a manager of a women's fashion magazine company,is in the process of launching a new Spring-Summer edition.For research purposes,she analyzed the past and present conditions of the market and also forecasted future trends.Which of the following steps of the formal planning process has Stacy performed?

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

Question 43

The level of planning that involves the least amount of details is:

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

Question 44

Who is responsible for an organization's strategic plan?

A) Senior executives
B) Middle management
C) Frontline supervisors
D) Tactical managers
E) Operational managers

Question 45

Once managers have selected goals and plans,they are required to:

A) perform a situational analysis.
B) find alternative goals and plans.
C) implement the designed plans.
D) prepare a strategic map.
E) forecast future trends.

Question 46

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

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

Question 47

In the _____ stage of the formal planning process,managers should pay careful attention to the cost of any initiative and the investment return that is likely to result.

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

Question 48

Jupiter Dollar Mart plans to open five new stores before 2015.However,if the economy does not improve,and if consumer confidence does not rise as hoped,it might open just two stores.This backup plan is an example of a:

A) dominant plan.
B) single-use plan.
C) contingency plan.
D) standing plan.
E) tactical plan.

Question 49

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

A) Goal selection requires exclusive reliance on experienced judgment.
B) Experienced judgment is not needed in goal and plan selection.
C) Benchmarking should be done during goal and plan selection.
D) Selection takes place immediately after generating alternate goals.
E) Managers select goals and plans that are appropriate and feasiblE.

Question 50

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

A) Operational
B) Tactical
C) Traditional
D) Contingency
E) Strategic

Question 51

Strategic goals are:

A) efforts and actions that are focused solely on competitiveness.
B) major targets related to the long-term survival,value,and growth of an organization.
C) efforts and actions that are focused solely on diversification.
D) patterns of actions and resource allocation designed to solve immediate problems.
E) narratives that describe a particular set of future conditions.

Question 52

The actions or means managers intend to use to achieve organizational goals are called:

A) skunkworks.
B) scenarios.
C) benchmarks.
D) plans.
E) business incubators.

Question 53

To be effective,goals should have certain qualities,which can be easily remembered with the acronym SMART:

A) specific,measurable,attainable,relevant,time-bound.
B) simple,meaningful,attractive,resourceful,tactical.
C) scientific,moral,acceptable,realistic,technical.
D) strong,motivating,affordable,resourceful,time-based.
E) strategic,modifiable,agreed,realistic,tactical.

Question 54

A(n)_____ is a pattern of actions and resource allocations designed to achieve goals of an organization.

A) vision
B) tactical plan
C) operational plan
D) strategy
E) scenario

Question 55

Which of the following is true of a contingency plan?

A) It primarily translates broad goals into specific ones.
B) It serves as an alternative when the initial plan fails to work.
C) It is normally used in stable environmental conditions.
D) It is seldom used by corporations to respond to major disasters.
E) It is sometimes referred to as a "why not" plan.

Question 56

The three levels of planning are:

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

Question 57

The managers at Andover & Associates determine that several options being considered as plans for new product introduction appear to have better projected outcomes for market share growth-one of their high-priority goals.In which of the following stages of the formal planning processes is Andover involved?

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

Question 58

Which of the following steps in the formal planning process helps managers know if their plan is working?

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 best describes contingency plans?

A) They are the long-term direction and strategic intent of a company.
B) They are a set of procedures for translating broad strategic goals and plans into specific goals and plans.
C) They are a set of procedures that identify specific processes required at lower levels of an organization.
D) They are an organization's basic scope and purpose of operations.
E) They are a set of actions to be taken when events in the external environment require a sudden changE.

Question 60

A set of procedures for making decisions about an organization's long-term goals and strategies is known as:

A) environmental scanning.
B) strategic maneuvering.
C) strategic planning.
D) tactical planning.
E) operational planning.

Question 61

A unique skill or knowledge an organization possesses that gives it an edge over competitors is called a _____.

A) strategic advantage alliance
B) core capability
C) better business benefit
D) competitive benchmark
E) comprehensive advantage

Question 62

A clear and concise expression of what an organization does,whom it does it for,its basic goods or services,and its values is known as its _____.

A) vision
B) mission
C) objective
D) policy
E) business definition

Question 63

Tangible assets include:

A) company reputation.
B) goodwill.
C) technical knowledge.
D) production facilities.
E) company culturE.

Question 64

Strategic goals evolve from an organization's:

A) core capabilities.
B) suppliers and customers.
C) tactical plans.
D) mission and vision.
E) stakeholders.

Question 65

Intangible assets include:

A) real estate.
B) production facilities.
C) patents.
D) raw materials.
E) inventory.

Question 66

The process of assessing how well one company's basic functions and skills compare to those of another company or set of companies is known as _____.

A) benchmarking
B) a situational analysis
C) strategic planning
D) operational planning
E) a SWOT analysis

Question 67

Operational planning is done by _____ managers.

A) frontline
B) strategic
C) tactical
D) top-level
E) middle

Question 68

A technique for assessing an organization's internal and external environments in order to formulate strategy is called a:

A) BCG matrix.
B) SWOT analysis.
C) benchmarking strategy.
D) diversification exercise.
E) functional strategy.

Question 69

Which of the following best describes strategic vision?

A) A set of procedures for translating broad strategic goals and plans into specific goals and plans
B) A narrative that describes a particular set of future conditions
C) A set of practices aimed at discovering and harnessing an organization's intellectual resources
D) The long-term direction and strategic intent of a company
E) The action by which a business competes in a particular industry or market

Question 70

Which of the following is a component of strategic management?

A) Conceptualization
B) Cost competitiveness
C) Strategic control
D) Emotional intelligence
E) Strategic maneuvering

Question 71

A method used for aligning an organization's operational and strategic goals is a _____.

A) strategy map
B) decision tree
C) GANTT chart
D) demand curve
E) strategic graph

Question 72

"To be the world's best quick-service restaurant experience" is an example of a _____.

A) strategic vision statement
B) mission statement
C) low-cost strategy
D) scenario
E) domain selection

Question 73

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

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

Question 74

_____ are inputs to production that can be accumulated over time to enhance the performance of a firm.

A) Strategies
B) Core capabilities
C) Resources
D) Benchmarks
E) Patents

Question 75

Portland's Pizza,a chain of specialty pizzerias,periodically compares its quality and service levels to other successful restaurants in order to continually improve its own performance.This practice is known as _____.

A) strategic maneuvering
B) strategic mapping
C) benchmarking
D) corporate espionage
E) competitive intelligence

Question 76

Resources are viewed as a company's core capabilities when they are _____.

A) common
B) imitable
C) intangible
D) tangible
E) rare

Question 77

In a SWOT analysis,an example of an organization's strength would be:

A) geographical expansion.
B) new technology.
C) new entrants.
D) skilled management.
E) imitable resources.

Question 78

The major components of an internal analysis includes:

A) operations analysis.
B) political activity.
C) competitor analysis.
D) industry growth.
E) social issues.

Question 79

Which of the following does environmental analysis examine?

A) Competitors
B) Board of directors
C) Organizational climate
D) Organizational culture
E) Social capital

Question 80

Which of the following is true of an effective vision statement?

A) It clearly describes an organization as it currently operates.
B) It inspires the members of an organization.
C) It is an estimation of the profits of an organization.
D) It clarifies the short-term direction of a company.
E) It is a statement strictly based on financial targets.