Deck 6: Developing a Business Strategy

Question 1

____________ are specific,short-term results an organization needs to achieve in order to fulfill its long term goals.

A) Directives
B) Opportunity targets
C) Objectives
D) Mission complements

Answer 1

C

Question 2

The revolution in management that is currently underway suggests that the most effective managers of the future will:

A) be very strict in their treatment of workers.
B) emphasize individual initiative rather than teamwork.
C) specialize in performing one of the four management functions.
D) be skilled communicators and team players.

Answer 2

D

Question 3

What is a key outcome of the I/E Analysis?

A) identification of competitive advantage
B) identify threats
C) identify opportunities
D) assess position in the marketplace
E) identifying anticipated moves by competitors

Answer 3

E

Question 4

_________ analysis is used to help companies evaluate their economic environments,assess their strengths and weaknesses,and identify competitive threats and market opportunities.

A) WISH
B) SWAMP
C) ASSET
D) SWOT

Question 5

__________ that outlines the fundamental purposes of their organization.

A) organization chart
B) value statement
C) mission statement
D) PERT diagram

Question 6

Which of the following is NOT part of the strategic planning process and its organizing framework?

A) assess what is changing in its macro-economic environment
B) understanding what is influencing markets today
C) assess what strategies its competitors are pursuing
D) assess who its customers are and how they are changing
E) assess what are its capabilities, competencies and advantages

Question 7

Developing a business strategy looks at each of the six areas _______,but also ________,in determining the road which an organization should take.

A) alone, holistically
B) individually, together
C) individually, holistically
D) alone, simultaneously
E) individually, simultaneously

Question 8

Today,managers have to make allocation decisions around the use of which scarce resources,

A) financial
B) human
C) natural
D) all resources

Question 9

Which of the following is NOT one of the key areas in which the I/E Analysis is assessing business risk and change?

A) macro-economic
B) industry
C) demographics
D) competitor
E) company

Question 10

In order for an organization to be successful over the long term,managers need to have a ___________ as to where and how to compete in the markets in which they intend to serve.

A) strategic direction
B) business strategy
C) game plan
D) business goal
E) business mission

Question 11

Which of the following is NOT one of the six key areas that business managers answer in the development of a business strategy.

A) Mission
B) Purpose
C) Markets
D) Products and Services
E) Assets

Question 12

______________ refers to identifying who,within the business,will be responsible for each aspect of the strategic plan.

A) Business System Configuration
B) Resources
C) Products and Services
D) Responsibility and Accountability
E) Markets

Question 13

What are the three parts of formulating the strategic plan?

A) Strategic, Tactical, and Operating
B) Corporate, Tactical, and Operating
C) Strategic, Business, and Operating
D) Corporate, Business, and Operating
E) Establishment, Tactical, and Design

Question 14

___________ are broad,long-term accomplishments an organization wants to achieve.

A) Goals
B) Objectives
C) Directives
D) Agendas

Question 15

A meaningful mission statement should address topics such as the organization's:

A) form of ownership and methods of financing.
B) self-concept and company philosophy.
C) advertising strategy and distribution plan.
D) tactical plans and contingency plans.

Question 16

The _________ level of planning would be determining specific objectives which it hopes to achieve for each of its identified business initiatives and/or business units.

A) Strategic
B) Tactical
C) Operating
D) Corporate
E) Business

Question 17

A __________ is an overall explanation of why an organization exists and where it is trying to head.

A) tactical plan
B) prime directive
C) corporate charter
D) vision

Question 18

________ involves setting the organization's vision,goals,and objectives.

A) Organizing
B) Planning
C) Controlling
D) Directing

Question 19

A vision for a company is:

A) an explanation of why the company exists and where it wants to go.
B) the same thing as an objective.
C) a detailed plan that outlines the major organizational structure of the firm.
D) very relevant for the short-term, but less useful for the long-term.

Question 20

A ________ statement is a forward-thinking statement which defines what a company wants to become and/or where it is going.

A) mission
B) vision
C) financial
D) computer
E) printed

Question 21

A key component of the operating plan development process is:

A) Identification of required staffing, infrastructure, and process
B) Identification of the up-front and ongoing cost commitments which must be made in order to develop the market opportunity which the business has decided to focus on
C) Seek out acquisitions, collaborations, and strategic alliances which complement existing products and capabilities
D) Expand current market presence
E) Identify what businesses to compete in

Question 22

Strategic planning looks at the organization as a whole,while ________ planning focuses on specific supervisors,department managers,and individual employees.

A) tactical
B) strategic
C) mission
D) operational

Question 23

What is a key component of the operating plan development process?

A) identification of competitive advantage
B) identify threats
C) identify opportunities
D) assess position in the marketplace
E) Identification of required staffing, infrastructure, and process

Question 24

Why can't small and medium-size business owners,seem to take the time to plan strategically?

A) act as the marketing, human resource, operations, and financial managers, all rolled into one
B) focused on fighting fires or fixing problems
C) focused on short-term planning efforts, generally geared towards current year initiatives
D) lack access to the expertise and/or resources needed to undertake a strategy review
E) all of the above

Question 25

The following are key components of the operating plan development process,except:

A) Specifics as to how to compete (for each business initiative or business unit)
B) Identification of the key revenue drivers and an assessment of the total potential revenue forecasts which the business can expect from a particular initiative
C) Identification of the up-front and ongoing cost commitments which must be made in order to develop the market opportunity which the business has decided to focus on.
D) Identification of the required market position and marketing communication initiatives required to support the business initiative or unit in question
E) Identification of competitive advantages which the organization possesses

Question 26

With respect to the overall mission of the organization,what is the difference between for-profit entities and not-for-profits?

A) That the products and services offered are priced at levels which ensure their accessibility
B) To whom the management team of the organization needs to respond to
C) Maintain the balance between the need and social mission and goals
D) Maintain an atmosphere of collective entrepreneurship
E) Enhance the vitality of the organization

Question 27

A key component of the operating plan development process is:

A) Identification of required staffing, infrastructure, and process
B) Identification of the up-front and ongoing cost commitments which must be made in order to develop the market opportunity which the business has decided to focus on
C) Seek out acquisitions, collaborations, and strategic alliances which complement existing products and capabilities
D) Expand current market presence
E) Identify what businesses to compete in

Question 28

Jamal is part of a management group that is examining whether his company,State Engineering,should offer some important new services that would broaden its business by appealing to a different group of potential clients.Jamal's group is involved with:

A) contingency planning.
B) operational planning.
C) strategic planning.
D) tactical planning.

Question 29

Rather than having __________,not-for-profits' actions are being assessed by some organized ______ (membership base,government entity,or community board)..

A) stakeholders; collective
B) shareholders; enclave
C) shareholders; collective
D) stakeholders; group
E) patrons; collective

Question 30

Like for-profit entities,not-for-profits must develop ________ which produce positive financial results for the organization.

A) competitive advantage
B) substitutes
C) opportunities
D) operational tactics
E) strategies and tactics

Question 31

When a firm makes use of SWOT analysis,one of its objectives is to:

A) identify the best employees to fill each position within the organization.
B) set specific short-term performance standards for each department.
C) evaluate the desirability of issuing stocks or bonds in the current financial climate.
D) identify the things it does well as an organization and the things it needs to improve.

Question 32

_______ strategy objectives,which defined how to accomplish the stated corporate objectives.

A) Business level
B) Strategic level
C) Tactical level
D) Operating level
E) Corporate level

Question 33

What is the final phase of the strategic planning process?

A) Operational activities aligned
B) Strategy execution
C) Directional lock-out
D) Directional lock-in
E) Operational goals set

Question 34

What is developed after the corporate level and business level strategies and objectives have been identified?

A) operational goals
B) operating plans
C) business goals
D) business level tactics
E) corporate level tactics

Question 35

What is a key requirement of the strategy execution phase?

A) monitor the cash flowing into and out of the business
B) continuously monitor the success of the implementation of the strategy
C) take corrective action quickly in the event that things are not going well
D) monitor and manage processes and material purchases
E) b) and c)

Question 36

Small and medium-size business owners need to assess and anticipate the changes which are occurring:

A) within their markets
B) with the needs for their products
C) with new opportunities
D) with their suppliers
E) a), b) and c)

Question 37

Karen Jobs is a supervisor who deals directly with a group of production line workers.She spends several hours each week developing specific work assignments and production schedules for the coming week so that the production department can meet its short-term production objectives.This suggests that a significant component of Karen's job involves:

A) strategic planning.
B) contingency planning.
C) tactical planning.
D) operational planning.

Question 38

,effectively respond to the following:

A) Maintain the balance between the economic base and the social mission and goals
B) Enhance the vitality of the organization
C) Maintain the atmosphere of collective entrepreneurship
D) Enhance the rootedness of the organization
E) All of the above

Question 39

Which of the following do organizations NOT commit their capital resources for within the execution phase?

A) building plants
B) retooling existing plants
C) delivering products and services to customers
D) building new equipment
E) all of the above

Question 40

,as well as other strategy considerations.

A) emotional
B) psychological
C) economic
D) philosophical
E) ideological

Question 41

In order for an organization to be successful over the long term,managers need to have a game plan.

Question 42

Objectives should be expressed as broad,general principles rather than as specific short-term results.

Question 43

Mission is one of the six key areas that business managers answer in the development of a business strategy.

Question 44

An assessment of the position in the marketplace is a key component of the operating plan development process.

Question 45

Goals tend to be broad and focus on the long-term while objectives tend to be specific and short-term in their focus.

Question 46

A modern manager's main job is to issue orders,then follow up to make sure employees do as they were told.

Question 47

A vision statement is a forward-thinking statement which defines what a company wants to become and/or where it is going.

Question 48

A vision is the overall explanation of why an organization exists and where it is trying to head.

Question 49

Developing a business strategy looks at each of the six areas individually,but also holistically,in determining the road which an organization should take.

Question 50

A mission statement outlines the fundamental purposes of an organization.

Question 51

A mission statement is a forward-thinking statement which defines what a company wants to become and/or where it is going.

Question 52

Responsibility and Accountability refers to identifying who,within the business,will be responsible for each aspect of the strategic plan.

Question 53

Goals are broad,long-term accomplishments an organization wants to achieve.

Question 54

While goals are measurable,objectives are not.

Question 55

The evaluation of assets is one of the six key areas that business managers answer in the development of a business strategy.

Question 56

A vision is a detailed set of specific steps that a firm must take to achieve its short-run objectives.

Question 57

The encompassing explanation of why an organization exists and what it is trying to achieve is called the organization's directive.

Question 58

Business System Configuration refers to identifying who,within the business,will be responsible for each aspect of the strategic plan.

Question 59

Purpose is one of the six key areas that business managers answer in the development of a business strategy.

Question 60

Every business is faced with the reality of having less uses for resources than resources available.

Question 61

Industry is one of the key areas in which the I/E Analysis is assessing business risk and change.

Question 62

Operational planning looks at the organization as a whole,while strategic planning focuses on specific departmental managers.

Question 63

Most managers consider planning to be of little importance in today's rapidly changing business environment.

Question 64

Understanding what is influencing markets today is part of the strategic planning process and its organizing framework.

Question 65

Planning is a continuous process.

Question 66

A customer analysis focuses on trying to identify what shifts have taken place in our customer base,in terms of attitudes,behaviours,and needs.

Question 67

Strategic planning is now much easier than it used to be because managers have access to very reliable computerized forecasting tools.

Question 68

Corporate,Business,and Operating are the three parts of formulating the strategic plan.

Question 69

The corporate level of planning would be determining specific objectives which it hopes to achieve for each of its identified business initiatives and/or business units.

Question 70

SWOT analysis helps firms identify both competitive threats and market opportunities.

Question 71

Assessing what is changing in its macro-economic environment is part of the strategic planning process and its organizing framework.

Question 72

Macro-economic is one of the key areas in which the I/E Analysis is assessing business risk and change.

Question 73

Assessing what strategies competitors are pursuing is part of the strategic planning process and its organizing framework.

Question 74

Strategic planning involves setting the organizational vision,goals and objectives in a "road map".

Question 75

Identify opportunities is a key outcome of the I/E Analysis.

Question 76

The business level of planning would be determining specific objectives which it hopes to achieve for each of its identified business initiatives and/or business units.

Question 77

Demographics is one of the key areas in which the I/E Analysis is assessing business risk and change.

Question 78

Strategic,Business,and Operating are the three parts of formulating the strategic plan?

Question 79

Today's business environment changes so rapidly that strategic planning is becoming more difficult and subject to change.

Question 80

Identifying anticipated moves by competitors is a key outcome of the I/E Analysis.