Question 1

The strategy that explains the methods that a division or an organization will use to compete against its rivals in the industry is a _______-level strategy.

Accepted Answer

At the business level, the managers of each division create a business-level plan that details (1) the long-term divisional goals that will allow the division to meet corporate goals and (2) the division's business-level strategy and structure necessary to achieve divisional goals. Business-level strategy outlines the specific methods a division, a business unit, or an organization will use to compete effectively against its rivals in an industry.

Question 2

To determine an organization's mission, managers must first define its ________.

Accepted Answer

To determine an organization's mission-the overriding reason it exists to provide customers with goods or services they value-managers must first define its business so that they can identify what kind of value customers are receiving.

Question 3

Managers at Ferwn Pvt., Ltd., which is number two in market share in the local sports equipment manufacturing industry, develop strategies to take over the number-one spot. This is an example of a _______-level strategy.

Accepted Answer

Business-level strategy outlines the specific methods a division, a business unit, or an organization will use to compete effectively against its rivals in an industry.

Question 4

The level of an organization that contains the organization's marketing department, R&D department, and human resources department is the ________ level.

Accepted Answer

Of the three levels of management, below the business level is the department or functional level. Each division has its own set of functions or departments, such as manufacturing, marketing, human resource management (HRM), and research and development (R&D).

Question 5

A company has a requirement that any manager who receives a gift from any of the company's customers worth more than $25 must report this gift to the company's human resources department. This is an example of a ________.

Accepted Answer

A rule is a formal, written guide to action in an organization.

Question 6

DE, Ltd., sets a goal that every product line of the company should be either first or second in its industry in market share. This would be an example of a ______________-level strategy.

Accepted Answer

Corporate-level strategy specifies in which industries and national markets an organization intends to compete and why. One of the goals stated in DE, Ltd. corporate-level plan is that DE, Ltd. should be first or second in market share in every industry in which it competes.

Question 7

The organizational strategy that specifies the activities of managers at the departmental level of the organization is a _____________-level strategy.

Accepted Answer

Functional-level strategy is a plan of action that managers of individual functions (such as manufacturing or marketing) can take to improve the ability of each function to perform its task-specific activities in ways that add value to an organization's goods and services and thereby increase the value customers receive.

Question 8

A general guide to action for the managers of an organization is known as a ________.

Accepted Answer

A policy is a general guide to action in an organization.

Question 9

A group of managers at Power Explosives analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. Which of the following planning exercises does this indicate?

Accepted Answer

SWOT analysis is a planning exercise in which managers identify internal organizational strengths (S) and weaknesses (W) and external environmental opportunities (O) and threats (T).

Question 10

Frame Corporation updates its five-year plan annually to take into account changing conditions within the organization and in the organization's external environment. Which of the following best explains this plan implemented by Frame Corporation?

Accepted Answer

A rolling plan is a plan that is updated and amended every year to take account of changing conditions in the external environment.

Question 11

Another name for the business level of the organization is the _______ level.

Accepted Answer

In large organizations planning usually takes place at three levels of management: corporate, business or division, and department or functional.

Question 12

The tool that is used in situations when programmed decision making is appropriate is a ________ plan.

Accepted Answer

Standing plans are used in situations in which programmed decision making is appropriate.

Question 13

The industries and national markets an organization intends to compete in and the reasons why are specified in a company's _______-level strategy.

Accepted Answer

A corporate-level plan contains top management's decisions concerning the organization's mission and goals, overall (corporate-level) strategy, and structure. Corporate-level strategy specifies in which industries and national markets an organization intends to compete and why.

Question 14

Managers at Dimensions, Inc., analyze the current situation of their organization and then develop plans to help their organization accomplish its mission and achieve its goals. This is known as ________.

Accepted Answer

In strategy formulation, managers work to develop the set of strategies that will allow an organization to accomplish its mission and achieve its goals. Strategy formulation begins with managers systematically analyzing the factors or forces inside an organization and outside in the global environment that affect the organization's ability to meet its goals now and in the future.

Question 15

A formal, written guide to action for employees in an organization is known as a ________.

Accepted Answer

A rule is a formal, written guide to action in an organization.

Question 16

The plan of an organization that contains top management's decisions about the organization's mission, goals, strategy, and structure is an example of a ________-level plan.

Accepted Answer

The corporate-level plan contains top management's decisions concerning the organization's mission and goals, overall (corporate-level) strategy, and structure.

Question 17

A written set of instructions which describes the series of actions that a manager should take in a specific situation is known as a ________.

Accepted Answer

A standing operating procedure is a written instruction describing the exact series of actions that should be followed in a specific situation.

Question 18

SynVens, a major retail chain in Hungary, is planning to diversify. It plans to enter the textiles industry and aims to be first or second in market share in this industry in five years. This is an example of a ________-level plan strategy.

Accepted Answer

Corporate-level strategy specifies in which industries and national markets an organization intends to compete and why. One of the goals stated in SynVens' corporate-level plan is that SynVens should be first or second in market share in every industry in which it competes.

Question 19

The ability of the CEO and top managers to convey to their subordinates a compelling vision of what they want the organization to achieve is known as ________ leadership.

Accepted Answer

The ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates is known as strategic leadership.

Question 20

A plan that is updated and changed every year to take into consideration how the organization's external and internal environments have changed is known as a ______________ plan.

Accepted Answer