Deck 5: Planning: the Foundation of Successful Management

Question 1

Blockbuster Video was slow to adapt to the latest trends in its industry, such as DVD-by-mail and movie downloads online.When it tried to incorporate the same into its business model, it was well behind competitors like Netflix.Blockbuster might be defined as a defender, according to Miles and Snow.

Answer 1

False
Explanation: The Reactor is passive and reactive, making adjustments only when finally forced to by environmental pressures.In the worst cases, they are so incapable of responding fast enough that they suffer massive sales losses and are even driven out of business.

Question 2

Determining an organization's mission is the responsibility of top management and the board of directors.

Answer 2

True
Explanation: Determining the mission is the responsibility of top management and the board of directors.It is up to them to formulate a mission statement, which expresses the purpose of the organization.

Question 3

The administrative part of the adaptive cycle focuses on establishing roles and organizational processes.

Answer 3

True
Explanation: The adaptive cycle portrays businesses as continuously cycling through decisions about three kinds of business problems: (1) entrepreneurial (selecting and making adjustments of products and markets), (2) engineering (producing and delivering the products), and (3) administrative (establishing roles, relationships, and organizational processes).

Question 4

In an organization's approach to planning, its mission and vision statements should be created once the strategic planning process is complete.

Question 5

A mission statement expresses what the organization should become and where it wants to go strategically.

Question 6

A steady-state career entails a slow-but-steady growth in level of responsibility and compensation.

Question 7

The career path that most resembles the traditional view of climbing the stairs in a corporate hierarchy is called the linear career.

Question 8

A vision has a clear sense of the future and the actions needed to get there.

Question 9

Planning and strategic management derive from an organization's mission and vision about itself.

Question 10

Planning occurs only at the highest levels of an organization, being done by top managers.

Question 11

Eastman Kodak, though it actually invented the digital camera, was slow to move into the production of this product as well as digital printers.Its continued reliance on traditional 35mm film production and processing, which resulted in its bankruptcy, makes it a reactor according to Miles and Snow.

Question 12

Microsoft has been accused of adapting competitors' products after those firms spent the resources and took the risks to develop them.Companies with this strategy are known as analyzers by Miles and Snow.

Question 13

In this time of Internet connections and speedy-access computer databases, one typically has complete information for planning and decision making.

Question 14

The process of a business cycling through decisions first to select products and markets, then about producing and delivering the products, and finally to establish roles and processes is known as the discovery cycle.

Question 15

A spiral career path depends on having jobs that, while fundamentally different, build on one another.

Question 16

Planning gives you expectations against which you can compare your performance.

Question 17

Planning helps managers to cope with events that can be predicted but is not particularly helpful when conditions are uncertain.

Question 18

A transitory career path involves a series of alternating promotions and demotions.

Question 19

Facebook strives to be on the cutting edge of social media and is experiencing phenomenal growth.It encourages what it calls a "hacker" mindset, always looking to break down the old in favor of something better.Of Miles and Snow's basic strategy types, Facebook would be described as a prospector.

Question 20

According to Miles and Snow's basic strategy types, a defender protects its strong position in an industry by constantly seeking new opportunities for growth.

Question 21

Strategic planning determines goals for an organization for a period of 1-5 years.

Question 22

Amazon's statement in which it states its desire "to be the earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online" is a mission statement.

Question 23

SMART is an acronym that represents characteristics necessary to motivate employees in their periodic reviews.

Question 24

A policy includes more specifics than does a rule.

Question 25

Tactical planning is done by first-line managers, who look forward to the next 1-8 weeks.

Question 26

Strategic goals focus on objectives for the organization as a whole.

Question 27

Policies, procedures, and rules are types of single-use plans.

Question 28

The U.S.government space program is an example of a single-use plan.

Question 29

A marketing plan is an example of an action plan.

Question 30

Operational goals are set by middle managers and focus on the actions needed to achieve strategic goals.

Question 31

Operational planning is normally performed by middle management.

Question 32

Decisions that are predictable, following a well-defined set of procedures, are typical of operational planning.

Question 33

The operating plan identifies clear targets such as revenues and cash flow.

Question 34

Southwest Airlines' goal of making arrival times more reliable is a tactical goal.

Question 35

In single-use plans, a program is another name for a project.

Question 36

A procedure is a standing plan that outlines the response to particular problems or circumstances.

Question 37

As part of the planning process, businesses set what are known as targets, which are specific commitments to achieve measurable results within a stated period of time.

Question 38

An organization's goals arranged in a hierarchy from low level to high level can be termed a means-end chain.

Question 39

The operating plan defines the course of action needed to achieve a stated goal.

Question 40

Southwest Airlines' goal of being highly profitable is a tactical goal.

Question 41

The "R" in a SMART goal stands for "reachable."

Question 42

In the planning/control cycle, part of the control process can be to improve future plans.

Question 43

A career that is upwardly mobile, with a number of jobs that are fundamentally different yet still build on one another is known as a(n) ______ career.

A)steady-state
B)portfolio
C)spiral
D)inclining
E)linear

Question 44

If you are happiest being a "hands-on" professional rather than becoming a manager, you may prefer a(n) ______ career.

A)steady-state
B)portfolio
C)spiral
D)inclining
E)linear

Question 45

During which managerial function do you make a blueprint for action that describes what you need to do to realize your goals?

A)Organizing
B)Leading
C)Controlling
D)Defining
E)Planning

Question 46

In the planning/control cycle, comparing the results with the plan is one of the control steps.

Question 47

Organizationwide, the best structure for objectives in MBO is known as a diversity pattern.

Question 48

Because it is unrealistic for SMART goals to be accomplished overnight, they should have target dates.

Question 49

MBO was developed by Frederick Taylor as part of scientific management.

Question 50

In the planning/control cycle, carrying out the plan is one of the control steps.

Question 51

Perpetuation objectives are one type of objective used in MBO.

Question 52

Deadlines can help one concentrate the mind, in order to make decisions rather than put them off.

Question 53

In MBO, objectives that employees fail to meet should be put aside for the next period in favor of ones that they can achieve.

Question 54

The planning/control cycle has three planning steps and three control steps.

Question 55

The first step in an MBO program is for the manager to set objectives for her subordinate.

Question 56

SMART goals that are challenging yet can be met within the available scope of time, equipment, and financial support are known as attainable, the "A" in SMART.

Question 57

A bike messenger company that operates in the downtown area of a large city recently set the following goal: "All deliveries should be completed as quickly as possible." This example meets the criteria for a SMART goal.

Question 58

The purpose of MBO is to motivate subordinates.

Question 59

In order for MBO to be successful, it must be implemented throughout the entire organization.

Question 60

Planning is defined as

A)formulating a method to allocate resources effectively.
B)motivating employees.
C)coping with obstacles to past performance.
D)setting goals and deciding how to achieve them.
E)implementing strategic goals.

Question 61

When a firm responds to uncertainty in its environment as a(n) ________, its continual pursuit of product and market innovation may lead to a loss of efficiency, but is likely to make competitors nervous.

A)reactor
B)analyzer
C)defender
D)prospector
E)executor

Question 62

Because of the frequency with which world competition and information technology alter marketplace conditions, a company's ________ may have to be done closer to every 1 or 2 years than every 5.

A)management planning
B)strategic planning
C)tactical planning
D)operational planning
E)implementation planning

Question 63

At which level of planning must managers be paying attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions?

A)tactical
B)organizational
C)strategic
D)front-line
E)operational

Question 64

A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n)

A)defender.
B)analyzer.
C)adaptor.
D)prospector.
E)reactor.

Question 65

Which of the following is one of the challenges of planning?

A)Assigning the right people to tasks.
B)Determining the correct budget.
C)Measuring results with accuracy.
D)Finding the time to plan.
E)Motivating employees.

Question 66

The adaptive cycle portrays businesses as continuously cycling through three kinds of business decisions: entrepreneurial, ______, and administrative.

A)leadership
B)alignment
C)organization
D)production
E)engineering

Question 67

Hilton Hotel's statement expressing its purpose as "to fill the earth with the light and warmth of hospitality" is a(n)

A)vision statement.
B)intention statement.
C)goal statement.
D)mission statement.
E)rationale statement.

Question 68

Which of the following is a benefit of planning?

A)Planning allows you to spend little time preparing for the future.
B)Planning allows you to make all decisions without consulting superiors.
C)Planning helps you compare your results to your competitors'.
D)Planning helps the company to be spontaneous.
E)Planning helps you cope with uncertainty.

Question 69

The statement which expresses the purpose of an organization is called a(n)

A)goal statement.
B)rationale statement.
C)vision statement.
D)intention statement.
E)mission statement.

Question 70

McKesson Corp., a U.S.pharmaceutical distributor, has a(n) ________ statement, which is "to provide comprehensive pharmacy solutions that improve productivity, profitability and result in superior patient care and satisfaction."

A)purpose
B)vision
C)intention
D)goal
E)mission

Question 71

A company producing cameras and video cameras prefers to focus its resources on a fast imitation program to reverse-engineer new features from competitors and add those, rather than implementing truly inventive features.Miles and Snow would call this company a(n)

A)reactor.
B)prospector.
C)analyzer.
D)defender.
E)imitator.

Question 72

If you do not have all of the information for a complete plan, you should

A)make decisions based on what you have, since perfect information is rare.
B)wait until you can get that information to take action you know will be appropriate.
C)implement two or more courses of action simultaneously.
D)shrink the plan to limit its scope to only areas where you have good information.
E)disregard the plan and go with your intuition.

Question 73

Which level of management is most often engaged in tactical planning?

A)Working-level employees
B)First-line managers
C)Middle managers
D)Top managers
E)Consultants

Question 74

If a business lacks insight or fails to use the adaptive cycle properly, it is likely to be which of the following?

A)A prospector
B)An analyzer
C)A defender
D)A reactor
E)An imitator

Question 75

In the current broadband environment, consumers are able to download products like music, movies, and books.Netflix was aggressive in taking advantage of this fact, offering web streaming and game console access to its customers before competitors.According to Miles and Snow, Netflix would be a(n)

A)reactor.
B)prospector.
C)analyzer.
D)defender.
E)executor.

Question 76

Which of the following is the correct order of planning steps within an organization?

A)Strategic planning, mission statement & vision statement, operational planning, tactical planning
B)Strategic planning, mission statement & vision statement, tactical planning, operational planning
C)Strategic planning, operational planning, mission statement & vision statement, tactical planning
D)Mission statement & vision statement, strategic planning, tactical planning, operational planning
E)Mission statement & vision statement, strategic planning, operational planning, tactical planning

Question 77

Avon, the world's leading direct seller of beauty products, has a(n) ________ statement, which is "to be the company that best understands and satisfies the product, service, and self-fulfillment needs of women globally."

A)vision
B)intention
C)goal
D)mission
E)rationale

Question 78

Which of the following is one of the organizational responses organizations make when confronted with uncertainty, as identified by Miles and Snow?

A)Aggressor
B)Investigator
C)Reactor
D)Planner
E)Leader

Question 79

Which of the following comes LAST when an organization makes a plan?

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

Question 80

There are three levels of planning.Their order, from first to last, is

A)operational, tactical, and strategic.
B)strategic, operational, and tactical.
C)tactical, operational, and strategic.
D)tactical, strategic, and operational.
E)strategic, tactical, and operational.