Question 1

Which of the following is a component of strategic management?

Accepted Answer

The strategic management process has six major components: establishment of mission, vision, and goals; analysis of external opportunities and threats; analysis of internal strengths and weaknesses; SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation; strategy implementation; and strategic control.

Question 2

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

Accepted Answer

Operational planning identifies the specific procedures and processes required at lower levels of an organization. Frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements.

Question 3

Who is responsible for an organization's strategic plan?

Accepted Answer

Senior executives are responsible for the development and execution of the strategic plan, although they usually do not formulate or implement the entire plan personally.

Question 4

Which of the following is true of a contingency plan?

Accepted Answer

Contingency plans 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. Most major corporations now have contingency plans in place to respond to a major disaster.

Question 5

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

Accepted Answer

A strategy is a pattern of actions and resource allocations designed to achieve the goals of an organization. An effective strategy provides a basis for answering broad questions about how the organization will meet its objectives.

Question 6

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

Accepted Answer

Goals and plans become more specific and involve shorter periods of time as they move from the strategic level to the tactical level and then to the operational level. The level of planning that involves the least amount of details is strategic planning.Refer to Exhibit 4.4

Question 7

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

Accepted Answer

After identifying alternatives, goal and plan evaluation happens, in which managers evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan.

Question 8

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

Accepted Answer

Although it is sometimes ignored, the sixth step in the formal planning process, monitoring and controlling, is essential. Without it, managers will never know whether their plan is succeeding.

Question 9

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

Accepted Answer

Strategic planning involves making decisions about an organization's long-term goals and strategies. Strategic plans have a strong external orientation and cover major portions of the organization.

Question 10

Operational planning is done by _____ managers.

Accepted Answer

Operational planning identifies the specific procedures and processes required at lower levels of the organization. Frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements.

Question 11

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

Accepted Answer

Once managers have assessed the various goals and plans, they will select the one that is most appropriate and feasible. Experienced judgment always plays an important role in this process.

Question 12

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?

Accepted Answer

Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of an organization, often a functional area like marketing or human resources.

Question 13

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

Accepted Answer

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 14

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

Accepted Answer

One method for aligning an organization's strategic and operational goals is a strategy map. A strategy map provides a tool managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play in helping to achieve them.

Question 15

The managers of Sizzling Software have decided on their goals for the next two years. Now they are required to

Accepted Answer

Once managers have selected the goals and plans, they must implement the plans designed to achieve the goals. Even the best plans are useless if they are not implemented properly.

Question 16

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?

Accepted Answer

In goal and plan evaluation, managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. Managers will consider carefully the implications of alternative plans for meeting high-priority goals.

Question 17

Strategic goals are

Accepted Answer

Strategic goals are major targets or end results that relate to the long-term survival, value, and growth of an organization. Strategic managers (top-level managers) usually establish goals that reflect both effectiveness (providing appropriate outputs) and efficiency (a high ratio of outputs to inputs).

Question 18

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.

Accepted Answer

In goal and plan evaluation, managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. They must prioritize those goals and even eliminate some of them. In particular, they will pay a great deal of attention to the cost of any initiative and the investment return that is likely to result.

Question 19

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

Accepted Answer

Strategic management involves managers from all parts of an organization in the formulation and implementation of strategic goals and strategies. It integrates strategic planning and management into a single process.

Question 20

The three levels of planning coordinate with the three levels of

Accepted Answer

Because planning is an important management function, managers at all three levels-top-level (strategic) managers, middle-level (tactical) managers, and frontline (operational) managers-use it. However, the scope and activities of the planning process at each level of the organization often differ.

Quiz 4: Planning and Strategic Management