Question 1

The plan for implementing a new strategy requires the development of new functional strategies.

Accepted Answer

The plan for implementing a new strategy requires the development of new functional strategies, the redesign of an organization's structure, and the development of new control systems; it might also require a new program to change an organization's culture.

Question 2

A broad declaration of the organization's overriding purpose,intended to identify the organization's products and customer base,as well as to differentiate the organization from its competitors is known as a:

Accepted Answer

A mission statement is a broad declaration of an organization's overriding purpose, what it is seeking to achieve from its activities; this statement is also intended to identify what is unique or important about its products to its employees and customers as well as to distinguish or differentiate the organization in some ways from its competitors.

Question 3

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 4

Managers at Ferwn Pvt.Ltd.which is number two in market share in the local sports equipments manufacturing industry,develop strategies to take over the number-one spot.Under which of the following levels of organizational strategies would this strategy fall?

Accepted Answer

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

Question 5

Which of the following plans of an organization contains top management's decisions about the organization's mission,goals,strategy,and structure?

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 6

Which of the following organizational strategies specifies the activities of managers at the departmental level of the organization?

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 7

DE Ltd.sets a goal that every product line of the company should be either first or second in its industry in market share.Which of the following levels of organizational strategies does this represent?

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 GE's corporate-level plan is that GE should be first or second in market share in every industry in which it competes.

Question 8

The cluster of decisions that managers make to assist an organization to achieve its goals is known as:

Accepted Answer

A strategy is a cluster of related managerial decisions and actions to help an organization attain one of its goals.

Question 9

_____ strategy specifies in which industries and national markets an organization intends to compete and why.

Accepted Answer

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 10

Another name for the business level of the organization is:

Accepted Answer

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

Question 11

_____ means that planning is an ongoing process in which managers build and refine previous plans and continually modify plans at all levels; corporate,business,and functional,so that they fit together into one broad framework.

Accepted Answer

Continuity means that planning is an ongoing process in which managers build and refine previous plans and continually modify plans at all levels; corporate, business, and functional, so that they fit together into one broad framework.

Question 12

Which of the following organizational strategies states the methods that a division or organization will use to compete against its rivals in the industry?

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, business unit, or organization will use to compete effectively against its rivals in an industry.

Question 13

_____ means that at any one time only one central,guiding plan is put into operation to achieve an organizational goal.

Accepted Answer

Unity means that at any one time only one central, guiding plan is put into operation to achieve an organizational goal; more than one plan to achieve a goal would cause confusion and disorder.

Question 14

Establishing a wholly owned foreign subsidiary is much more expensive than the other global operations because it requires a higher level of foreign investment and presents managers with many more threats.

Accepted Answer

Operating alone, without any direct involvement from foreign companies, an organization receives all of the rewards and bears all of the risks associated with operating abroad. Establishing a wholly owned foreign subsidiary is much more expensive than the others because it requires a higher level of foreign investment and presents managers with many more threats.

Question 15

Which of the following is used in situations in which programmed decision making is appropriate?

Accepted Answer

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

Question 16

Which of the following levels of an organization contains the organization's marketing department,R&D department,and human resources department?

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 17

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:

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 18

Managers should attempt to collect and use all available information in the organization's planning process.Which of the following aspects of planning is being emphasized?

Accepted Answer

Accuracy means that managers need to make every attempt to collect and utilize all available information at their disposal in the planning process.

Question 19

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.Which of the following levels of plan does this strategy fall under?

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 GE's corporate-level plan is that GE should be first or second in market share in every industry in which it competes.

Question 20

An organization's level of involvement abroad decreases in a joint venture because the alliance rarely involves capital investment to produce goods or services outside the home country.

Accepted Answer

An organization's level of involvement abroad increases in a joint venture because the alliance normally involves a capital investment in production facilities abroad in order to produce goods or services outside the home country.

Quiz 6: Planning, Strategy, and Competitive Advantage

The plan for implementing a new strategy requires the development of new functional strategies.

A broad declaration of the organization's overriding purpose,intended to identify the organization's products and customer base,as well as to differentiate the organization from its competitors is known as a:

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?

Managers at Ferwn Pvt.Ltd.which is number two in market share in the local sports equipments manufacturing industry,develop strategies to take over the number-one spot.Under which of the following levels of organizational strategies would this strategy fall?

Which of the following plans of an organization contains top management's decisions about the organization's mission,goals,strategy,and structure?

Which of the following organizational strategies specifies the activities of managers at the departmental level of the organization?

DE Ltd.sets a goal that every product line of the company should be either first or second in its industry in market share.Which of the following levels of organizational strategies does this represent?

The cluster of decisions that managers make to assist an organization to achieve its goals is known as:

_____ strategy specifies in which industries and national markets an organization intends to compete and why.

Another name for the business level of the organization is:

_____ means that planning is an ongoing process in which managers build and refine previous plans and continually modify plans at all levels; corporate,business,and functional,so that they fit together into one broad framework.

Which of the following organizational strategies states the methods that a division or organization will use to compete against its rivals in the industry?

_____ means that at any one time only one central,guiding plan is put into operation to achieve an organizational goal.

Establishing a wholly owned foreign subsidiary is much more expensive than the other global operations because it requires a higher level of foreign investment and presents managers with many more threats.

Which of the following is used in situations in which programmed decision making is appropriate?

Which of the following levels of an organization contains the organization's marketing department,R&D department,and human resources department?

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:

Managers should attempt to collect and use all available information in the organization's planning process.Which of the following aspects of planning is being emphasized?

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.Which of the following levels of plan does this strategy fall under?

An organization's level of involvement abroad decreases in a joint venture because the alliance rarely involves capital investment to produce goods or services outside the home country.