Deck 5: Planning and Strategy: Bringing the Vision to Life

Question 1

A primary stakeholder is any person who is indirectly affected by an organization's
actions.

Answer 1

False

Question 2

A mission statement identifies an organization's plans for the future.

Answer 2

False

Question 3

Creativity has little role in organizational planning.

Answer 3

False

Question 4

Both cost leadership and vertical integration business strategies are based on efficiency.

Question 5

An activity that an organization performs very well is called a primary capability.

Question 6

Good plans should be both rational and creative.

Question 7

A mission statement and a vision statement are essentially the same thing.

Question 8

Too much reliance on goal setting in organizational planning often results in ignoring the organization's long-term goals.

Question 9

Most plans for organizations focus almost entirely on goals.

Question 10

A standing plan can be reused repeatedly.

Question 11

Contingency plans are usually long-term plans.

Question 12

Directional planning involves starting at your goal and moving step-by-step to where you are now.

Question 13

A SWOT analysis is a technique that examines strengths,weaknesses,opportunities,
and threats that may affect achievement of the strategic mission and vision.

Question 14

Once devised,plans should be permanent and not subject to change.

Question 15

An HR inventory identifies qualified candidates who are located both within and outside of an organization for jobs.

Question 16

A milestone is a major goal that is more important than an ordinary goal.

Question 17

Layoff involves the dismissal of an employee for breaking a company policy,failing to perform,or failing to adjust to company values,norms,or culture.

Question 18

Environmental scanning includes assessing the political environment as well as the economic environment.

Question 19

Directional planning is a dynamic,systematic process where people envision all of the "what if" scenarios for given situations and plan for several likely possibilities.

Question 20

A growth strategy is a corporate strategy that focuses on increasing market share.

Question 21

Action-oriented planning avoids ________ and focuses on ________.

A) the task at hand; goals
B) goal-setting; the path or direction
C) the path or direction; goals
D) goal-setting; the task at hand

Question 22

Which of the following is most likely to be implemented by one person?

A) long-term plan
B) project plan
C) financial plan
D) contingency plan

Question 23

The NBA All-Star Game is held in a different city each year.Which kind of plan does each host city need for this event?

A) single-use plan
B) short-term plan
C) contingency plan
D) strategic plan

Question 24

Vintage,an e-commerce clothing store,plans to open actual storefronts in four cities over the next three years.Which kind of plan is the company implementing?

A) single-use plan
B) strategic plan
C) project plan
D) contingency plan

Question 25

Which will be fewest in number in an organization's single-use plan?

A) goals
B) action steps
C) milestones
D) subgoals

Question 26

Which statement is TRUE?

A) Good planning attends closely to an organization's mission and vision.
B) Good planning puts goals and objectives before the organization's mission and vision.
C) Good planning needs to be concerned exclusively with an organization's mission.
D) Good planning is short-term planning.

Question 27

In goal-oriented planning,________ is the goal.

A) the distance
B) the destination
C) the domain
D) action

Question 28

Which statement is TRUE?

A) As long as an organization sticks to its goals and metrics, it doesn't need a strong vision.
B) As long as an organization has a strong vision, it doesn't need goals and metrics.
C) If an organization has a strong vision, it doesn't need a meaningful mission.
D) An organization needs both a strong vision and adherence to goals and metrics.

Question 29

Lots of Boxes,a container store,takes inventory three times a year.Which kind of plan does it need for this task?

A) single-use plan
B) operational plan
C) short-term plan
D) standing plan

Question 30

Planning is the process of developing a sequence of activities that is intended to ________.

A) establish a vision
B) create competitiveness
C) achieve a goal or move toward an imagined future state
D) produce a mission statement that defines an organization's goals and purpose

Question 31

A subgoal is a(n)________.

A) goal that leads to a larger goal
B) unimportant goal
C) unseen goal that leads to a smaller goal
D) minor goal

Question 32

Which type of plan presents a detailed outline for how goals will be achieved?

A) strategic plan
B) operational plan
C) project plan
D) contingency plan

Question 33

In directional planning,________ is the goal.

A) the path
B) the destination
C) the distance
D) action

Question 34

How often do most managers plan?

A) quarterly
B) monthly
C) annually
D) continuously

Question 35

Today,the term ________ refers to a marker that indicates how far we have come.

A) goals
B) action steps
C) subgoal
D) milestone

Question 36

According to scholar Henry Mintzberg,formal planning includes all of the following EXCEPT:

A) analysis of current conditions and likely future conditions.
B) taking action to carry out important tasks and meaningful activities.
C) being creative in developing ideas to meet future challenges.
D) synthesizing ideas in order to meet future challenges.

Question 37

Setting up pitch presentations with venture capital firms would be a key component of an organization's ________.

A) long-term plan
B) contingency plan
C) financial plan
D) scenario plan

Question 38

In the twenty-first century,managers should expect ________ change in the business environment.

A) constant and dramatic
B) little
C) no fundamental
D) only positive

Question 39

Typically,planning involves too much ________ and not enough creative thinking and synthesis of ideas.

A) goal setting
B) measurement
C) thinking about the future
D) long-term thinking

Question 40

Overreliance on goal setting can result in ________.

A) too much attention to long-term priorities
B) not enough attention to short-term priorities
C) too much attention to short-term priorities
D) not enough attention to both long- and short-term priorities

Question 41

An organization's mission statement always reflects ________.

A) values and priorities
B) differentiation
C) environmental scanning
D) a SWOT analysis

Question 42

In general,a vision statement is ________.

A) more informative
B) aspirational and inspirational
C) less inspirational but more action step oriented
D) very specific with numbers and percentages

Question 43

Both mission statements and vision statements can be used ________.

A) to insulate an organization from change
B) as a detailed road map of the future
C) to protect an organization from outside interference
D) to guide an organization

Question 44

Which of the following lessons can blackjack players teach managers?

A) Ignore the past in planning for the future.
B) Risk need not be part of doing business.
C) You can plan for change.
D) You cannot anticipate change.

Question 45

Which of the following is NOT a business-level strategy?

A) cost leadership
B) niche
C) divestiture
D) vertical integration

Question 46

What is the philosophy behind 3M's "lead customers methodology"?

A) Innovation is driven by customers.
B) Customers should lead environmental scanning.
C) Corporate vision is defined by customer needs.
D) Customers must be persuaded to embrace innovation.

Question 47

Traditionally,Apple has followed a ________ business strategy because it sells unique products.

A) niche
B) cost leadership
C) differentiation
D) vertical integration

Question 48

McDonald's is known for selling quality products at low prices.This is an example of a successful ________ business strategy.

A) niche
B) cost leadership
C) differentiation
D) vertical integration

Question 49

A growth strategy would likely include which of the following?

A) a defensive posture
B) acquisition of a rival
C) getting rid of divisions
D) maintaining current market share

Question 50

Which strategy would normally help a company maintain its current market position?

A) stability strategy
B) retrenchment strategy
C) divestiture strategy
D) joint-venture strategy

Question 51

A restaurant's planning document includes the statement,"Buy van to enter food truck market at start of next school year." What is this statement?

A) the restaurant's mission
B) a tactic
C) a long-term strategic goal
D) the restaurant's vision

Question 52

A vision statement describes ________.

A) how an organization views the future
B) how an organization views the current climate
C) the organization's purpose and reason for existing
D) a set of SMART strategic goals

Question 53

Which of the following should be involved in creating the mission and vision statement of an organization?

A) the founder(s) only
B) top managers and leaders only
C) non-managerial employees only
D) founder(s) and all employees

Question 54

Strategy expert Tom Malnight thinks that a good strategy ________ assumptions and takes risks.

A) confirms
B) makes reasonable
C) challenges
D) rejects

Question 55

Which type of strategy would be focused on the quality control department of a manufacturer?

A) corporate strategy
B) functional strategy
C) niche strategy
D) business strategy

Question 56

Systems thinking examines ________ affecting the outcome of an event.

A) all possible factors
B) all people
C) technological factors
D) market forces

Question 57

A chain of Chinese food restaurants is exploring a vertical integration strategy.Which of the following would the planning team be LEAST interested in?

A) an organic tofu manufacturer
B) a restaurant reservation mobile app developer
C) an industrial stove manufacturer
D) an oolong tea plantation

Question 58

Which environment has had the greatest impact on changes in telecom companies in the past four decades?

A) natural
B) economic
C) political
D) technological

Question 59

An organization's mission statement describes ________.

A) what it stands for only
B) its philosophy
C) who and what it is, what it does, and what it stands for
D) its style

Question 60

A mission statement sets an organization apart by articulating its ________.

A) objectives
B) competitive advantage
C) differentiation factors
D) core products

Question 61

Which of the following would create the most work for a scenario planner?

A) an NBA (National Basketball Association) championship game at an indoor stadium in Detroit in May
B) an NFL (National Football League) playoff game at an outdoor stadium in New Jersey in February
C) an Ironman triathlon (three-sport athletic competition) in Seattle in March
D) a surfing competition in Hawaii in October

Question 62

According to the BCG matrix,a company that has low market share in a slow-growing industry is a ________.

A) star
B) cow
C) question mark
D) dog

Question 63

Rosa started her catering business last year,with a dream to one day be one of the top caterers in the tri-state area.Her gigs have all been small dinner parties and company business meetings,but last week she booked her first wedding for 300 people! From a planning perspective,what is the wedding?

A) a goal
B) a subgoal
C) a milestone
D) an action step

Question 64

New Leaf Produce grows organic lettuces in seaside farms for premium restaurants and health food stores.Which environmental factor may require New Leaf to develop a contingency plan and risk management strategies to guide actions when unpredictable events occur?

A) sociocultural environment
B) legal and tax environment
C) natural environment
D) technological environment

Question 65

Google offers its search capabilities for free and earns revenue from advertising.New Web search engines appear frequently on the Internet,but few are successful.Considering Porter's five forces model,how would you rate the threat of new entrants for Google?

A) low, because new entrants usually fail
B) low, because new entrants are frequent
C) high, because new entrants are frequent
D) high, because new entrants usually fail

Question 66

Which type of employee has the least chance of being rehired?

A) an employee who has been laid off
B) an employee who has been terminated for cause
C) an employee who has been downsized
D) an employee who has lost his or her job due to a reduction in force

Question 67

Fern Farms is a wholesaler of landscaping plants and materials.The company's executive team has ordered a 7% increase in product prices across the board.Who are the secondary stakeholders and how will they be affected?

A) Fern Farms suppliers, who will experience increased sales
B) landscaping companies, who will pay more for products
C) landscaping companies, who will charge clients less
D) homeowners, who will pay more for landscaping

Question 68

Which of the following is a major drawback of SWOT analysis?

A) Strengths, weaknesses, opportunities, and threats are not weighted and prioritized.
B) Strengths, weaknesses, opportunities, and threats are not identified in separate categories.
C) Strengths and weaknesses are weighted and prioritized, but opportunities and threats are not weighted or prioritized.
D) Opportunities and threats are weighted and prioritized, but strengths and weaknesses are not weighted or prioritized.

Question 69

The European Union faces a long period of economic hardship and uncertainty as it attempts to recover from the financial crisis of the 2010s.As the CEO of a successful large organization in the EU,what would be a logical corporate strategy for the near future?

A) growth
B) stability
C) retrenchment
D) divestiture

Question 70

Brain Freeze has a healthy market share in the fast-growing online education industry.In which BCG matrix category does Brain Freeze fit?

A) dog
B) question mark
C) star
D) cow

Question 71

After requesting a SWOT analysis of his fitness club business,Malik received the following results: Internal Strength: skilled personal trainers
External Opportunity: high-income local residents
Internal Weakness: lack of popular fitness classes
External Threat: discount memberships at a competitor's club
What should Malik do first to help grow the business?

A) offer competitor price matching
B) expand class offerings
C) prepare a BCG matrix
D) weight the SWOT results

Question 72

Who is a key stakeholder in an organization?

A) a person who is directly affected by the organization's activities
B) a person who is only indirectly affected by the organization's activities
C) a person who can directly influence an organization's activities
D) a person who can only indirectly influence an organization's activities

Question 73

Doc Xpress has an in-house staff of 35 people who provide transcriptions of phone and video conferences for a range of clients.Given the tight economy,the CEO has frozen all hardware and software upgrades for the last five years.In a SWOT analysis,how would this issue be categorized?

A) external opportunity
B) external threat
C) internal weakness
D) internal strength

Question 74

After reading an article about the growing taste for American foods in Iraq,the CEO of Build-a-Burger has decided to open some outlets there.Given the turmoil in the country and the region,what will be the most important factor to consider during the planning team's environmental scan?

A) economic environment
B) technological environment
C) legal and tax environment
D) political environment

Question 75

Last semester,Hop Dog was the only food truck on campus.This semester four other trucks have located on the quad offering a variety of lunchtime options and daily deals.Which of Porter's five forces has the LEAST impact on the Hop Dog truck?

A) bargaining power of customers
B) bargaining power of suppliers
C) threat of substitutes
D) competitive rivalry within the industry

Question 76

MacDowell's Fine Steaks is a traditional chophouse.Over the past two years it has lost market share to new restaurants offering more ethnic flavors.MacDowell's management has decided to tweak its menu by cutting low margin,less popular items,reducing unnecessary expenses,and upgrading the decor in an effort to retain longtime clientele while drawing in new visitors.What type of strategy is MacDowell's implementing?

A) stability
B) growth
C) differentiation
D) retrenchment

Question 77

Marcus is working for a venture capital firm evaluating various investments.He sees that SuperLand,a supermarket chain,has an excellent market share in the slow-growing grocery industry.Which BCG matrix category does SuperLand fit?

A) cow
B) dog
C) star
D) question mark

Question 78

Which two criteria does the BCG matrix measure?

A) market share and market growth
B) external markets and internal markets
C) business strength and market opportunities
D) market segmentation and market share

Question 79

Every year,the Syracuse University basketball team starts its season with one thing in mind,to win the NCAA championship.Players begin the year by getting in the best shape possible and practicing hard.The practice sessions correspond to ________.

A) goals
B) subgoals
C) action steps
D) milestones

Question 80

Your company seems highly focused on short-term objectives.From a planning perspective,what can you do to correct the situation?

A) Increase your plan's reliance on goals and metrics, and decrease emphasis on the company's mission and vision.
B) Reduce your plan's reliance on goals and metrics, and increase emphasis on the company's mission and vision.
C) Reduce your plan's emphasis on strategic objectives, and increase emphasis on the operational objectives.
D) Reduce your plan's emphasis on strategic objectives, and increase emphasis on the contingency objectives.