Deck 4: Planning and Strategic Management

Question 1

Contingency plans include sets of actions to be taken when

A)a company's initial plans have not worked out well.
B)a company's growth exceeds all expectations.
C)the internal environment needs to be shaken up.
D)the external environment is extremely stable.
E)the internal and external environments are similar.

Answer 1

A
Explanation: Contingency plans might be referred to as "what if" plans. They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Question 2

The steps followed during formal planning are similar to which of the following?

A)The building of a persuasive argument
B)The process of hiring a new employee
C)The evaluation of a work of art
D)The basic decision-making process
E)The brainstorming process

Answer 2

D
Explanation: Because planning is a decision process, the important steps followed during formal planning are similar to the basic decision-making steps.

Question 3

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.

Answer 3

False
Explanation:
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 4

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

Question 5

The CEO of Just-in-Time Shipping has set major profit and expansion targets for the organization to achieve in the next five to ten years. What are these targets an example of?

A)Short-term strategies
B)Long-term problems
C)Tactical issues
D)Mid-level targets
E)Strategic goals

Question 6

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

Question 7

Operational planning identifies the specific procedures and processes required _____ of an organization.

A)by the external relationships
B)by the internal structure
C)at the lower levels
D)at the middle levels
E)at the upper levels

Question 8

In an environmental analysis, opportunities and threats are completely separate, unrelated things.

Question 9

Which of the following statements about tactical planning is true?

A)Tactical plans have a medium time horizon and contain a medium level of detail.
B)Tactical plans have a short time horizon and contain a medium level of detail.
C)Tactical plans have a short time horizon and contain a low level of detail.
D)Tactical plans have a medium time horizon and contain a high level of detail.
E)Tactical plans have a long time horizon and contain a high level of detail.

Question 10

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

Question 11

Strategic planning involves making decisions about an organization's

A)short-term profits.
B)internal orientation.
C)immediate problems.
D)long-term goals.
E)minor targets.

Question 12

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

Question 13

A situational analysis should focus on which of the following?

A)Only the internal forces at work within the organization or work unit
B)Only the influences from the external environment
C)Both the internal forces in the organization and influences from the external environment
D)Future contingencies that are not yet part of the internal or external environments
E)Past internal forces and future external influences

Question 14

A thorough environmental analysis includes a macroeconomic analysis.

Question 15

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

Question 16

Contingency plans could be referred to as _____ plans.

A)"dream team"
B)"someday"
C)"pie in the sky"
D)"what if"
E)"back up"

Question 17

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

Question 18

In planning, the goal is to come up with a clear and _____ map to follow in future activities.

A)rigid
B)flexible
C)formal
D)routine
E)traditional

Question 19

To be effective, goals should have open-ended completion times.

Question 20

Which of the following statements about planning is accurate?

A)Operational plans may have a time horizon of a year or two, whereas tactical plans may cover a period of months.
B)Tactical plans may have a time horizon of a year or two, whereas operational plans may cover a period of months.
C)Tactical plans may have a time horizon of a year or two, whereas strategic plans may cover a period of months.
D)Strategic plans may have a time horizon of a year or two, whereas operational plans may cover a period of months.
E)Strategic plans may have a time horizon of a year or two, whereas tactical plans may cover a period of months.

Question 21

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 22

Which of the following describes an organization's basic purpose?

A)The vision statement
B)Strategic goals
C)Business strategy
D)Tactical planning
E)The mission statement

Question 23

Which of the following is included in the strategic management process?

A)Employee interviews
B)SWOT analysis and strategy formulation
C)Analysis of internal opportunities and threats
D)Analysis of external strengths and weaknesses
E)Strategic review and evaluation

Question 24

Production, human resources, marketing, research and development, finance, and distribution are considered a company's _____ areas.

A)functional
B)strategic
C)tactical
D)business
E)service

Question 25

How would a firm's highly regarded brand be listed in a typical SWOT analysis?

A)As a strength
B)As a weakness
C)As an opportunity
D)As a threat
E)As a tactic

Question 26

Which of the following is one of the four key drivers of a firm's long-term success?

A)The effectiveness of its internal processes
B)The quality of its relationships with stakeholders
C)The ability to keep its employees
D)A stable supply chain
E)A willingness to cut corners when necessary

Question 27

Anthony's Refrigerator Pasta tries to offer higher-quality food products, more product variety, and wider distribution than its competitors do. What business strategy is Anthony's Refrigerator Pasta pursuing?

A)Conglomerate diversification
B)Differentiation strategy
C)Vertical integration
D)Concentration strategy
E)Lateral diversification

Question 28

Most strategic control systems include which of the following in order to monitor and control major financial expenditures?

A)A vision statement
B)A mission statement
C)A budget
D)A SWOT analysis
E)A handbook

Question 29

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

A)managers
B)shareholders
C)customers
D)stakeholders
E)employees

Question 30

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 31

Which of the following statements about mission and goals is true?

A)Strategic goals evolve from the mission and vision of an organization.
B)The mission and vision of an organization evolve from its strategic goals.
C)The mission and vision of an organization evolve from its tactical goals.
D)The mission and vision of an organization evolve from its frontline goals.
E)Frontline goals evolve from the mission and vision of an organization.

Question 32

Which type of diversification involves moving into businesses that are related to the company's original core business?

A)Concentric
B)Conglomerate
C)Vertical
D)Functional
E)Horizontal

Question 33

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

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

Question 34

A _____ provides a tool that managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play.

A)situational analysis
B)concentric diversification
C)goal flowchart
D)SWOT analysis
E)strategy map

Question 35

_____ 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 36

Isabel is developing contingency plans for her catering business. In other words, she is developing

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

Question 37

Debra, a manager of a glassware company, is in the process of deciding what items to add to next year's line of merchandise. 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 Debra performed?

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

Question 38

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

A)visions.
B)scenarios.
C)benchmarks.
D)plans.
E)missions.

Question 39

During which step of strategy implementation would an executive evaluate his or her company's ability to implement strategic tasks?

A)Defining the strategic tasks
B)Assessing organizational capabilities
C)Evaluating the competition
D)Developing an implementation agenda
E)Creating an implementation plan

Question 40

Businesses using a low-cost strategy attempt to offer

A)a luxury product at a mid-range price.
B)a luxury product at a low price.
C)a unique product at a mid-range price.
D)a unique product at a low price.
E)a no-frills product at a low price.

Question 41

Which of the following is a component of strategic management?

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

Question 42

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 43

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 44

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 45

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 46

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 47

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 48

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 49

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 50

Operational planning is done by _____ managers.

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

Question 51

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 52

Glen is in charge of the purchasing department at his company. He needs to translate the broad strategy of increasing company profits by 5 percent into specific goals and plans that are relevant to his department. What type of planning must Glen do?

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

Question 53

Peppy Pizza 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 54

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 55

The managers of Sizzling Software have decided on their goals for the next two years. Now 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 56

The managers at Federated Fabricators believe that several of the product ideas being considered have the potential of becoming iconic brands that will distinguish Federated from its competitors-which is 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 57

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 58

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 59

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 60

The three levels of planning coordinate with the three levels of

A)competition.
B)stakeholders.
C)profit.
D)production.
E)management.

Question 61

Which of the following does environmental analysis examine?

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

Question 62

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

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

Question 63

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 64

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 65

A _____ strategy involves adding new businesses that produce related products or are involved in related markets and activities.

A)concentration
B)differentiation
C)concentric diversification
D)conglomerate diversification
E)lateral diversification

Question 66

_____ 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 67

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 68

Intangible assets include

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

Question 69

Which of the following is a major component of an internal analysis?

A)Marketing audits
B)Political activity
C)Competitor analysis
D)Industry growth
E)Social issues

Question 70

"To fly what others only imagine" is an example of a _____.

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

Question 71

Overnight Delivery has a unique software program that tracks packages in real time and maps every step of their journey. Such a technology, which gives the company an edge over competitors, would be called a _____.

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

Question 72

Farouk's Falafels, a chain of Middle Eastern restaurants, 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)maneuvering
B)strategic mapping
C)benchmarking
D)corporate espionage
E)competitive intelligence

Question 73

A _____ strategy focuses on a single business competing in a single industry.

A)concentration
B)vertical integration
C)concentric diversification
D)conglomerate diversification
E)focal integration

Question 74

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.

Question 75

Which of the following corporate strategies is being employed when a large grocery store purchases a dairy to supply all of the store-brand milk, yogurt, butter, and cheese?

A)Differentiation strategy
B)Conglomerate diversification
C)Vertical integration
D)Low-cost strategy
E)Functional strategy

Question 76

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 77

A fast-food restaurant chain, specializing in fried chicken, adds fried shrimp to its menu. Based on the given information, which of the following corporate strategies is the restaurant following?

A)Conglomerate diversification
B)Differentiation strategy
C)Vertical integration
D)Concentration strategy
E)Lateral diversification

Question 78

Tangible assets include

A)company reputation.
B)goodwill.
C)technical knowledge.
D)real estate.
E)company culture.

Question 79

Strategic goals evolve from an organization's

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

Question 80

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.