Question 1

Decision-making occurs in all management functions.

Accepted Answer

Decision-making is an essential part of all management functions, including planning, organizing, leading, and controlling. Managers are required to make decisions constantly, ranging from routine operational decisions to major strategic decisions.

Question 2

Strategic planning determines the major goals of the organization.

Accepted Answer

Strategic planning is a process that determines the major goals of an organization and identifies the resources needed to accomplish these goals. It involves setting priorities, making decisions, and allocating resources to achieve the desired outcomes.

Question 3

Continuous planning is not necessary,because plans that worked well in the past are likely to continue to work well in the future.

Accepted Answer

Continuous planning is necessary because external factors may change over time, and even plans that worked well in the past may not be suitable for current or future conditions. Therefore, it is important to constantly review and adapt plans to ensure their effectiveness.

Question 4

Many cities and businesses are now developing contingency plans to respond to potential terrorist attacks.

Accepted Answer

This statement is true. With the increase in global terrorism, many cities and businesses are taking proactive measures to prepare for and respond to potential terror attacks. Contingency plans may include evacuation procedures, emergency response protocols, and increased security measures.

Question 5

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

Accepted Answer

While computerized forecasting tools can certainly be helpful in strategic planning, they do not make the process "much easier" and may even introduce new challenges such as accurately interpreting and utilizing the data. Strategic planning still requires careful analysis, decision-making, and implementation to be effective.

Question 6

Managers or teams of managers at the lower levels of an organization normally develop strategic plans,but top managers do most of the tactical planning.

Accepted Answer

It is the other way around. Top managers develop strategic plans, while lower-level managers are responsible for tactical planning.

Question 7

Planning is a continuous process.

Accepted Answer

It is important to review, evaluate, and adjust plans regularly to ensure they remain relevant and effective. Planning is not a one-time event, but rather a recurring activity that requires ongoing attention and effort.

Question 8

Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.

Accepted Answer

Contingency planning is all about identifying potential risks and preparing alternative plans to tackle them in case the primary plan fails. Therefore, the statement is true.

Question 9

Problem-solving is more formal than using the rational decision-making model.

Accepted Answer

The rational decision-making model is a formal process that involves identifying alternatives, evaluating consequences, and choosing the best option. Problem-solving can also be a formal process, but it is not necessarily more formal than using the rational decision-making model. Both approaches involve structured, analytical thinking to solve problems and make decisions.

Question 10

Tactical planning deals with setting long-range goals,while strategic planning develops the specific strategies needed to achieve the organization's operational goals.

Accepted Answer

Tactical planning focuses on short-term goals and specific actions to implement the overall strategy developed through strategic planning. Strategic planning involves setting long-term goals and identifying the resources necessary to achieve them, as well as identifying potential obstacles and strategies to overcome them.

Question 11

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

Accepted Answer

The statement is true. Rapid changes in technology, consumer behavior, and market trends make it difficult for businesses to create and stick to long-term strategic plans. Companies need to be agile and ready to pivot their strategies quickly in response to changes in the market.

Question 12

An analysis of the business environment helps managers identify threats and opportunities that face their firm.

Accepted Answer

An analysis of the business environment helps managers identify threats and opportunities that face their firm.

Question 13

One step in the rational decision-making model is to develop alternatives.

Accepted Answer

Developing alternatives is a key step in the rational decision-making model, along with identifying the problem, gathering information, evaluating alternatives, choosing the best option, and taking action.

Question 14

Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.

Accepted Answer

Brainstorming is a creative process that aims to generate a vast number of ideas without criticizing or evaluating them during the ideation phase. The idea is to encourage free thinking and generate a large quantity of ideas, which can then be filtered and prioritized to select the best one.

Question 15

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

Accepted Answer

Operational planning focuses on specific actions and tasks to be carried out by different departments within the organization. On the other hand, strategic planning involves setting long-term goals and objectives for the organization as a whole, and designing strategies to achieve those goals.

Question 16

Instead of creating detailed strategic plans,the leaders of market-based companies companies that respond quickly to environmental changes)set flexible directions so as to allow for change and seize opportunities when they come.

Accepted Answer

Market-based companies are known for their agility and the ability to respond quickly to changes in the environment. They typically do not create detailed strategic plans, which can be too rigid and inflexible to allow for changes in their competitive landscape or customer preferences. Instead, they set flexible directions that allow them to be responsive to new opportunities and challenges as they arise. This approach enables them to be more innovative, customer-focused, and adaptable, which are critical traits for success in today's fast-changing business environment.

Question 17

The first step in the rational decision-making model is to identify alternative solutions.

Accepted Answer

The first step in the rational decision-making model is to identify the problem or opportunity, not alternative solutions.

Question 18

One example of tactical planning is setting annual budgets and deciding on other details and activities necessary to meet the strategic objectives.

Accepted Answer

Tactical planning is concerned with establishing short-term actions that are necessary to implement the strategic plans developed by an organization. Annual budgeting and detailed planning are examples of tactical planning activities.

Question 19

The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

Accepted Answer

The last step in the rational decision-making model is indeed to evaluate the decision and its outcomes, and make any necessary adjustments or follow-up actions.

Question 20

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

Accepted Answer

The SWOT analysis is a strategic planning tool that helps identify the strengths, weaknesses, opportunities, and threats of a business. By analyzing these factors, a company can understand its current position and plan a strategy for future success, including identifying competitive threats and market opportunities.

Quiz 7: Management and Leadership

Decision-making occurs in all management functions.

Strategic planning determines the major goals of the organization.

Continuous planning is not necessary,because plans that worked well in the past are likely to continue to work well in the future.

Many cities and businesses are now developing contingency plans to respond to potential terrorist attacks.

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

Managers or teams of managers at the lower levels of an organization normally develop strategic plans,but top managers do most of the tactical planning.

Planning is a continuous process.

Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.

Problem-solving is more formal than using the rational decision-making model.

Tactical planning deals with setting long-range goals,while strategic planning develops the specific strategies needed to achieve the organization's operational goals.

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

An analysis of the business environment helps managers identify threats and opportunities that face their firm.

One step in the rational decision-making model is to develop alternatives.

Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.

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

Instead of creating detailed strategic plans,the leaders of market-based companies companies that respond quickly to environmental changes)set flexible directions so as to allow for change and seize opportunities when they come.

The first step in the rational decision-making model is to identify alternative solutions.

One example of tactical planning is setting annual budgets and deciding on other details and activities necessary to meet the strategic objectives.

The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

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