Question 1

Long term plans describe what an organization plans to do within the next two to three years.

Accepted Answer

Long term plans typically describe what an organization plans to do over a period longer than three years, often spanning up to five, ten, or even more years into the future.

Question 2

Tactical plans form a basis for strategic plans.

Accepted Answer

Tactical plans are short-term actions and strategies that support the strategic plan, which outlines the long-term vision and goals of an organization. Strategic plans form the basis for tactical plans, not the other way around.

Question 3

An organization's objectives and strategies define its purpose.

Accepted Answer

The answer of An organization's objectives and strategies define its...

Question 4

Strengths that represent unique skills or resources that can determine an organization's competitive edge are called its core competency.

Accepted Answer

Core competencies are the unique strengths or strategic advantages that give an organization a competitive edge over its rivals, often derived from specific skills, resources, or capabilities.

Question 5

A project is an example of a single- use plan.

Accepted Answer

A project is considered a single-use plan because it is designed to achieve a specific goal and is not intended to be repeated in the future.

Question 6

Standing plans are flexible plans, with clearly defined objectives and that leave no room for misinterpretation.

Accepted Answer

Standing plans are designed for activities that occur repeatedly over a period of time and typically include policies, procedures, and rules, which means they are not necessarily flexible but are meant to provide a consistent approach to recurring issues.

Question 7

Planning can completely replace the need for intuition and creativity.

Accepted Answer

Planning, while essential for setting objectives and organizing resources, cannot account for all unforeseen challenges or opportunities that may arise, thus intuition and creativity remain crucial for adapting and innovating in dynamic environments.

Question 8

Feedback favorably affects performance.

Accepted Answer

Feedback, when given constructively, can positively influence an individual's performance by providing guidance, motivation, and insight into how they can improve their skills and achieve their goals.

Question 9

How do we overcome the challenge of scanning a global business environment? One way is for management to subscribe to news services that review newspapers and books from around the globe and provide summaries to client companies.

Accepted Answer

The answer of How do we overcome the challenge of...

Question 10

In order to fulfill the grand strategy, managers will seek to position their units so that they can gain a relative advantage over their competition.

Accepted Answer

Managers aim to position their units advantageously to outperform competitors, aligning with the concept of grand strategy which involves overarching plans to achieve major objectives.

Question 11

Porter's three competitive strategies are cost- leadership, price- leadership, and niche.

Accepted Answer

Porter's three competitive strategies are cost leadership, differentiation, and focus (not price-leadership and niche).

Question 12

Organizations with formal plans will always outperform those organizations without formal plans.

Accepted Answer

Organizations with formal plans do not always outperform those without formal plans because success can also depend on adaptability, innovation, market conditions, and the ability to respond to unforeseen challenges.

Question 13

It appears that specific plans are always preferable to directional, or loosely guided plans, because specific plans have clearly defined objectives.

Accepted Answer

Specific plans have clearly defined objectives, which makes them more likely to be successful than directional plans.

Question 14

A SWOT analysis consists of four key steps.

Accepted Answer

A SWOT analysis consists of four components: Strengths, Weaknesses, Opportunities, and Threats, not steps.

Question 15

Reducing the size, scope or number operational units usually in a declining environment is known as reengineering.

Accepted Answer

Reducing the size, scope, or number of operational units usually in a declining environment is known as downsizing. Reengineering refers to the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Question 16

A differentiation strategy is a strategy that an organization follows when it wants to establish a competitive advantage in a narrow market segment.

Accepted Answer

A differentiation strategy involves an organization offering unique or superior products or services across a broad market, not just a narrow market segment. This strategy aims to attract a wide range of customers by distinguishing its offerings from competitors'.

Question 17

The typical growth strategies include direct expansion, new product development, quality improvement, or diversifying- merging with or acquiring other firms.

Accepted Answer

These strategies are commonly used by businesses to increase their market share, enter new markets, or enhance their product offerings, thereby contributing to their growth and competitiveness.

Question 18

Without planning, there can be no effective control.

Accepted Answer

Planning sets objectives and goals, and control is the process of ensuring these plans are realized. Without planning, there is no clear direction or standards to control against, making effective control impossible.

Question 19

Uncertainty and change produce a need for more effective planning in today's business environment.

Accepted Answer

In today's rapidly changing and uncertain business environment, effective planning is crucial to adapt and respond to new challenges and opportunities, ensuring organizations remain competitive and resilient.

Question 20

SWOT analysis determines the primary threats and opportunities an organization faces.

Accepted Answer

SWOT analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Quiz 3: Foundations of Planning