Question 1

Top managers are primarily responsible for planning that takes place at the business level of an organization.

Accepted Answer

In an organization,the managers of each division are primarily responsible for planning that takes place at the business level of the organization.

Question 2

An intermediate-term plan has a time horizon between five and ten years.

Accepted Answer

Long-term plans have a time horizon of five years or more;intermediate-term plans have a time horizon between one and five years;and short-term plans have a time horizon of one year or less.

Question 3

The divisions of an organization exist at the functional level of the organization.

Accepted Answer

At the business level are the different divisions or business units of a company that compete in distinct industries.

Question 4

Single-use plans are useful in situations that involve programmed decisions in an organization.

Accepted Answer

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

Question 5

Each division's functional managers are responsible for the planning and strategy making necessary to increase the efficiency and effectiveness of their particular function.

Accepted Answer

Each division has its own set of functions or departments,such as manufacturing,marketing,HRM,and R&D.Each division's functional managers are responsible for the planning and strategy making necessary to increase the efficiency and effectiveness of their particular function.

Question 6

The last step in the planning process is to determine an organization's mission and goals.

Accepted Answer

The first step in the planning process is determining the organization's mission and goals.The last step in the planning process is implementing strategy.

Question 7

A good plan specifies not only which goals and strategies an organization is committed to but is also accountable for putting the strategies into action to attain the goals.

Accepted Answer

A good plan specifies not only which goals and strategies an organization is committed to but also who bears the responsibility for putting the strategies into action to attain the goals.When managers know they will be held accountable for attaining a goal,they are motivated to do their best to make sure the goal is achieved.

Question 8

Corporate-level planning is the primary responsibility of middle management in an organization.

Accepted Answer

Corporate-level planning and strategy are the primary responsibility of top or corporate managers.

Question 9

The cluster of decisions about what goals to pursue,what actions to take,and how to use resources to achieve goals,is called an organization's strategy.

Accepted Answer

Strategy is a cluster of decisions about what goals to pursue,what actions to take,and how to use resources to achieve goals.

Question 10

In the planning process,functional goals and strategies do not need to be consistent with divisional goals and strategies.

Accepted Answer

In the planning process,it is important to ensure that planning across the three different levels is consistent.Functional goals and strategies should be consistent with divisional goals and strategies,which,in turn,should be consistent with corporate goals and strategies,and vice versa.

Question 11

A written set of instructions that describes the series of actions that a manager should take in a specific situation is called an SOP of an organization.

Accepted Answer

A standing operating procedure is a written instruction describing the exact series of actions that should be followed in a specific situation.For example,an organization may have a standing plan about ethical behavior by employees.

Question 12

A rule is a general guide to action within an organization.

Accepted Answer

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

Question 13

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

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 14

Planning involves identifying and selecting appropriate goals and courses of action for an organization.

Accepted Answer

Planning is a process managers use to identify and select appropriate goals and courses of action for an organization.

Question 15

Planning takes place at the corporate level and the business level of an organization,but not at the functional level of an organization.

Accepted Answer

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

Question 16

At the functional level,the business-level plan provides the framework within which functional managers devise their plans.

Accepted Answer

At the functional level,the business-level plan provides the framework within which functional managers devise their plans.A functional-level plan states the goals that the managers of each function will pursue to help their division attain its business-level goals,which,in turn,will allow the entire company to achieve its corporate goals.

Question 17

A business plan that is updated every year depending on the changes in an organization and in the external environment that have taken place in the previous year is known as a standing plan.

Accepted Answer

A business plan that is updated every year depending on the changes in an organization and in the external environment that have taken place in the previous year is known as a rolling plan.

Question 18

The number of months covered in the typical business plan is known as the time horizon of the plan.

Accepted Answer

Time horizon is the period of time over which plans are intended to apply or endure.

Question 19

A program-an integrated set of plans for achieving certain goals-is an example of a standing plan.

Accepted Answer

Examples of single-use plans include programs,which are integrated sets of plans for achieving certain goals,and projects,which are specific action plans created to complete various aspects of a program.

Question 20

A broad declaration of an organization's purpose,products,and customers is called a mission statement.

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 also identifies what is unique or important about its products to its employees and customers;finally it distinguishes or differentiates the organization in some ways from its competitors.

Quiz 6: Planning, Strategy, and Competitive Advantage