Question 1

Tim's Company is analyzing the technology that allows it to produce wireless communication equipment for less money. This technological breakthrough for Tim's Company is which of the following?

Accepted Answer

A technological breakthrough that allows a company to produce goods for less money is an opportunity, as it can lead to cost savings and competitive advantages.

Question 2

Which of the following is not included in the definition of planning?

Accepted Answer

Planning involves defining objectives, developing plans and strategies to achieve them, and integrating activities, but it does not specifically include allocating resources or developing a chain of communication, which are parts of implementing the plan.

Question 3

A candy store that places its expensive chocolates only in fine hotels and restaurants frequented by the very rich is using which of the following competitive advantage strategies?

Accepted Answer

The candy store is using a focus strategy by targeting a specific, narrow market segment (the very rich) through exclusive distribution channels (fine hotels and restaurants). This approach concentrates on serving a particular customer group or geographic market more effectively than competitors who target a broader audience.

Question 4

MBO links objectives at one level to which of the following?

Accepted Answer

MBO (Management by Objectives) links objectives at one level to the next level to ensure alignment and support in achieving the organization's goals.

Question 5

Tactical and strategic plans differ in all of the following ways except

Accepted Answer

The answer of Tactical and strategic plans differ in all...

Question 6

At Quest Diagnostics, a Medical Blood Testing Company, every test must be performed in exactly the same way to meet Federal Health and Regulatory Guidelines. The plans for conducting these tests are called___________  plans

Accepted Answer

Standing plans are designed for activities that occur repeatedly over a period of time. In the context of Quest Diagnostics, where tests must be performed consistently to meet guidelines, standing plans ensure that each test is conducted in the same manner every time.

Question 7

Growth through direct expansion involves increasing company size, revenues, operations, or___________  .

Accepted Answer

The answer of Growth through direct expansion involves increasing company...

Question 8

Once a plan is established, it should always be

Accepted Answer

Plans should be flexible to adapt to unforeseen changes or new information.

Question 9

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.
-The competitive advantage based upon their known reputation among small business owners for a computer with few frills, but the capabilities of performing word processing, databases, and spreadsheets would be known as a

Accepted Answer

The answer of Application of Porter's Competitive Strategy
Stacie sighed. Her...

Question 10

NUCOR is so efficient in its steel production and casting processes that it is the only United States steel producer that regularly exports its products directly to Japan. This is an example of NUCOR's

Accepted Answer

The answer of NUCOR is so efficient in its steel...

Question 11

Managers can overcome the criticisms of management by objectives by

Accepted Answer

Ensuring that employees have multiple goals helps to address criticisms of Management by Objectives (MBO) by promoting a more balanced and comprehensive approach to goal setting, which can lead to more effective and sustainable performance improvements.

Question 12

Application of MBO
Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached.
Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization.
-In order for MBO to work most effectively in Kay's department, which level of support does she still need to receive?

Accepted Answer

MBO (Management by Objectives) requires the support and commitment from top management to ensure its successful implementation and alignment with the organization's overall objectives.

Question 13

The fact that The Nordstrom Company has a very strong culture that embraces service and customer satisfaction makes it also difficult to create change; this is an example of the fact that culture can be ___________ .

Accepted Answer

The Nordstrom Company's strong culture of service and customer satisfaction, while being a significant strength, also poses challenges in implementing change. This illustrates that a company's culture can simultaneously be a source of strength and a potential weakness, depending on the context and the changes being considered.

Question 14

Application of Porter's Competitive Strategy
Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting.
-The competitive advantage focusing on a lower price would be a

Accepted Answer

The competitive advantage focusing on a lower price aligns with Porter's cost-leadership strategy, which involves becoming the lowest-cost producer in the industry to gain a competitive edge.

Question 15

___________ is a process by which individuals pursue opportunities, fulfilling needs and wants through innovation, without regard to the resources they currently control.

Accepted Answer

Entrepreneurship involves pursuing opportunities and fulfilling market needs through innovation, often starting with limited resources or without regard to the current resources the entrepreneur has.

Question 16

MBO advocates participative goal setting. Research comparing participative set and assigned goals on performance

Accepted Answer

Research on the effects of participative goal setting versus assigned goals on performance has not shown strong or consistent relationships. The outcomes can vary depending on numerous factors such as the nature of the task, the organizational context, and individual differences among participants.

Question 17

Rochester Big and Tall is a small chain of clothing retailers that sell exclusively only to men. Its quality materials, variety of styles and range of prices, and ___________ strategy create a competitive advantage for the chain.

Accepted Answer

Rochester Big and Tall targets a specific market segment by selling exclusively to men, which aligns with a focus strategy.

Question 18

Stacy's Company continues to offer the same quality beauty products it has for the last 10 years. The company is successful and has no current plans for change. Which of the following types of strategies is it employing?

Accepted Answer

Stacy's Company is employing a stability strategy, as it is maintaining its current operations and not seeking significant growth, reduction, or diversification. This strategy is often chosen by successful companies that aim to sustain their current level of performance.

Question 19

A project plan is an example of a(n)___________ plan.

Accepted Answer

A project plan is a single-use plan because it is created for a specific, one-time project or event and is not intended to be used repeatedly.

Question 20

Which type of plan is used to meet a particular or unique situation?

Accepted Answer

Single-use plans are designed for a one-time, unique project or situation, not intended for repeated use, unlike the other types of plans which are more ongoing or repetitive in nature.

Quiz 3: Foundations of Planning