Question 1

Sam is in charge of strategy control at Lanser's, a large clothing retailer. He regularly tracks sales in relation to targets, number of products on back order, and percentage of customer service calls resolved within specified time periods. These metrics are known as:

Accepted Answer

These metrics are commonly found on performance dashboards, which are visual representations of key performance indicators (KPIs) that measure progress toward specific goals. Financial indicators may be included, but performance dashboards typically include a broader range of metrics across various operational areas. Tactical goals refer to specific short-term objectives, while balanced scoreboards are a comprehensive strategic management tool used to align business activities with the vision and strategy of an organization. Operational standards typically refer to specific processes, procedures, and quality standards that ensure consistency and efficiency in day-to-day operations.

Question 2

Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis?

Accepted Answer

Designating a crisis management team in the event of an environmental disaster is an important step in preparing for a crisis. The team should be knowledgeable and trained in crisis management and should have clear roles and responsibilities assigned to each team member in case of a toxic spill or accident. Building relationships with neighboring businesses and detecting signals from the natural environment may be important steps in preventing a crisis, but they do not address the actual crisis management process. Polling employees on the likelihood of an environmental disaster may be useful in identifying potential risks, but it does not directly address crisis management. Dismantling the company's ties to the external media is not recommended, as transparency and communication with the public and media are important in managing a crisis effectively.

Question 3

Which of these are true about contingency plans?

Accepted Answer

Contingency plans define a company's responses to specific situations, such as emergencies or setbacks. They are developed to prepare for the unexpected and ensure that the organization can continue to function in the face of adversity. Option A is incorrect because contingency plans are not developed for goals that are unlikely to repeat in the future, but rather for situations that may occur unexpectedly. Option B is incorrect because guidance for tasks performed repeatedly is better covered by policies and standard operating procedures. Option D is also incorrect as all organizations can benefit from contingency plans, not just some.

Question 4

The traditional approach to corporate planning was to:

Accepted Answer

The traditional approach to corporate planning typically involved a centralized planning department that would develop and coordinate the organization's overall strategy and plans. This approach was popular in the mid-20th century and was rooted in a hierarchical management structure. Decentralizing planning efforts or using task forces and committees were more modern approaches that emerged in response to changes in organizational structure and management philosophy. The TQM approach is a quality management methodology and not necessarily directly related to corporate planning.

Question 5

_____ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed.

Accepted Answer

Scenario building involves imagining possible future scenarios by looking at trends and discontinuities. This allows for the development of a framework that can be used to manage unexpected events that may arise in the future. Crisis planning and contingency planning are related concepts but focus more on responding to unexpected events rather than anticipating them through scenario building. Trend management and caution planning are not established concepts within strategic planning.

Question 6

A(n) _____ is a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue.

Accepted Answer

The answer of A(n) _____ is a cross-functional group of...

Question 7

One major limitation of goals and plans is:

Accepted Answer

While goals and plans can be useful in guiding resource allocation and motivating employees, they can also create rigidity in a fast-changing environment. If plans are too rigid, they may not be adaptable to unforeseen circumstances, which can limit the organization's ability to respond effectively to change.

Question 8

CASE
Scenario - Katelynn Kareem
Managers at Alba Corp. just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at Alba Corp. for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment.
-What can Katelynn expect to be doing during the final step of the MBO process?

Accepted Answer

The final step of the MBO process is to appraise overall performance, which involves evaluating the extent to which goals were achieved and providing feedback on performance. This step helps determine the effectiveness of the MBO program and identify areas for improvement.

Question 9

The two stages of crisis planning include:

Accepted Answer

The two stages of crisis planning are prevention and preparation. Prevention involves taking steps to avoid a crisis from occurring in the first place, while preparation involves developing a plan to manage a crisis if it does occur. Control, leading, and organizing are all important components of crisis management, but they are not the two specific stages of crisis planning.

Question 10

A(n) _____ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.

Accepted Answer

The answer of A(n) _____ is a blueprint for goal...

Question 11

CASE
Scenario - Katelynn Kareem
Managers at Alba Corp. just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at Alba Corp. for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment.
-In the MBO process, after the first step of setting objectives is accomplished, the next step that Katelynn should expect is:

Accepted Answer

The next step in the MBO process after setting objectives is to develop action plans to meet those objectives.

Question 12

A(n) _____ is a desired future state that the organization attempts to realize.

Accepted Answer

The answer of A(n) _____ is a desired future state...

Question 13

Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as a _____.

Accepted Answer

A contingency plan is a plan that outlines a course of action to be taken if a specific event occurs, such as a significant drop in sales. It is designed to mitigate the impact of potential future events and ensure business continuity.

Question 14

_____ are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.

Accepted Answer

Stretch goals are ambitious but achievable goals that challenge employees to perform at their highest level. These goals are designed to push individuals and organizations beyond their current capabilities and encourage them to reach for new heights. Stretch goals should be clear, compelling, and imaginative to motivate employees and promote excellence.

Question 15

At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and employees. The purpose of the group is to gain a deep understanding company's competitive environment and periodically present these findings to top management. Sophia is involved in what type of team?

Accepted Answer

The group of managers and employees at Save-tech led by Sophia is focused on gaining knowledge about the competitive environment of the company, which makes them an intelligence team. The other options do not match the description of the group's purpose.

Question 16

Which of the following is NOT involved in the stages of crisis planning?

Accepted Answer

Investigating all stakeholders is not a component of the stages of crisis planning. However, building relationships with stakeholders is an important part of crisis planning. The other options - setting up effective communication systems, creating detailed crisis management plans, designating a crisis management team and spokesperson - are key components of crisis planning.

Question 17

The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a crisis occurs.

Accepted Answer

The crisis management plan should be a detailed, written plan that clearly specifies the actions to be taken and by whom, in order to ensure effective response and management of a crisis situation. A vague or verbal plan may result in confusion and lack of clarity, while a long and difficult to read plan may be counterproductive in a time-sensitive crisis situation. Therefore, a detailed, written plan is the best choice.

Question 18

Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function?

Accepted Answer

Alabama Airlines is utilizing a decentralized planning staff approach wherein planning specialists serve as consultants to the divisions and help division managers with their own plans.

Question 19

_____ enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response.

Accepted Answer

Crisis planning is specifically designed to deal with unexpected and potentially catastrophic events that can threaten the survival of an organization. It involves preparing for various scenarios, developing response plans, and establishing communication protocols to ensure that leaders can respond quickly and effectively in the face of a crisis.

Question 20

CASE
Scenario - Katelynn Kareem
Managers at Alba Corp. just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at Alba Corp. for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment.
-Katelynn can anticipate enjoying the advantages of MBO which include:

Accepted Answer

The advantages of MBO include increased orientation toward goal achievement, improved performance at all company levels, and higher motivation among employees. Therefore, all of these choices (A, B, C, D) are correct, making E the best choice.

Quiz 7: Managerial Planning and Goal Setting