Question 1

If an organization has well-developed goals for profitability, that is all it needs to determine its effectiveness.

Accepted Answer

While profitability is an important goal for an organization, it is not the only factor that determines effectiveness. Other important factors include customer satisfaction, employee satisfaction, social responsibility, and innovation. An organization may be profitable but still have poor performance in these other areas.

Question 2

A differentiation strategy calls for a learning approach, whereas a low-cost strategy should be paired with an efficiency approach.

Accepted Answer

A differentiation strategy aims to differentiate the product or service from competitors, which requires a focus on learning about customer needs and preferences. On the other hand, a low-cost strategy aims to offer products or services at a lower cost than competitors, which requires a focus on efficiency and cost-cutting measures.

Question 3

Before the mission is defined and goals are set, top management should assess the organization's strengths, weaknesses, opportunities, and threats as well as its own.

Accepted Answer

This statement is true. Before setting goals and defining the mission, top management should conduct a SWOT analysis to understand the organization's strengths, weaknesses, opportunities, and threats, as well as their own. This analysis can provide the information needed to establish clear objectives and ensure that they align with the organization's capabilities and competitive environment.

Question 4

Experienced managers are likely interpret the environment similarly and therefore end up with similar strategic goals, thus causing a cooperative situation to occur.

Accepted Answer

Experienced managers may interpret the environment differently due to diverse backgrounds, experiences, and perspectives, leading to varied strategic goals and potentially competitive situations.

Question 5

Official goals represent the reason for an organization's existence and the outcomes it seeks to achieve.

Accepted Answer

Official goals are the primary purpose of an organization and the desired outcomes it wants to achieve. They are the foundation of the organizational structure and guide decision-making, resource allocation, and operational activities.

Question 6

Organizational mission and operational goals are the same thing.

Accepted Answer

While organizational mission and operational goals may be related, they are not the same thing. The mission is the broad purpose and reason for existence of the organization, while operational goals are specific targets and objectives to be accomplished in order to fulfill the mission.

Question 7

A market goal would typically be stated in terms of net income, earnings per share, or return on investment.

Accepted Answer

The answer of A market goal would typically be stated...

Question 8

One would expect the effectiveness criteria of a football team to be affected by goal measurability.

Accepted Answer

Goal measurability, or the ability to measure progress and success based on specific goals, is a crucial factor in determining the effectiveness of a football team. Without clear and measurable goals, it would be difficult to evaluate the team's performance and progress, which would make it harder to identify areas for improvement and make strategic decisions. Therefore, goal measurability plays a significant role in determining the effectiveness criteria of a football team.

Question 9

Differentiation is the strategy that is specifically designed for organizations to innovate, take risks, and grow.

Accepted Answer

Differentiation is a strategy aimed at making a product or service stand out from competitors, often through unique features or branding, rather than specifically focusing on innovation, risk-taking, or growth.

Question 10

The low-cost leadership strategy is known for requiring skills based on strong marketing ability, creative flair, strong capability in basic research, and corporate reputation for technological leadership.

Accepted Answer

While a low-cost leadership strategy does require a strong focus on cost efficiency and operational excellence, the skills required are not limited to just marketing ability, creative flair, basic research ability, and technological reputation. Other important skills may include supply chain management, lean manufacturing, and financial management.

Question 11

A strategy is a plan for achievement of organizational goals.

Accepted Answer

A strategy is indeed a plan for achieving organizational goals. It outlines the steps to be taken, resources needed and timeline for achieving the desired objectives.

Question 12

Official goals address issues pertaining to corporate legitimacy.

Accepted Answer

Official goals are statements of a company's intended actions or outcomes, often related to its mission and vision. These goals often address issues related to corporate legitimacy, such as social responsibility, ethical behavior, and environmental sustainability.

Question 13

The reactor strategy is a strategy because it responds to environmental threats and opportunities in a strategic fashion.

Accepted Answer

The answer of The reactor strategy is a strategy because...

Question 14

Organizations using the differentiation strategy try to distinguish their products or services from others in the industry.

Accepted Answer

This statement is true. The differentiation strategy is a common approach used by organizations to make their products or services stand out from competitors in the same industry. By creating unique features or benefits, companies can attract customers who are looking for something different or better than what is currently offered by other companies.

Question 15

Operative goals refer to the formally stated definition of business scope and outcomes the organization is trying to achieve.

Accepted Answer

The answer of Operative goals refer to the formally stated...

Question 16

Innovation and change goals are decreasingly important, even though they initially cause a large increase in profits.

Accepted Answer

Innovation and change goals are still very important in today's business world. While they may not always result in an immediate increase in profits, they are necessary for long-term success and staying ahead of competitors. Many successful companies, such as Apple and Google, place a strong emphasis on innovation and are constantly changing and evolving their products and services.

Question 17

A productivity goal could be stated in terms of "cost for a unit of production," "units produced per employee," or "resource cost per employee."

Accepted Answer

A productivity goal can be measured by any of these metrics to assess cost-effectiveness and efficiency in production.

Question 18

Growth and output volume are examples of overall performance goals.

Accepted Answer

Growth and output volume are measures of the overall performance of a company or organization.

Question 19

Goals and strategies are usually fixed and remain unchanged once top management agrees upon them.

Accepted Answer

Goals and strategies are not always fixed and may need to be adjusted based on changes in the internal or external environment of an organization. Flexibility and adaptability are important in achieving success in today's dynamic business world.

Question 20

A defender strategy is concerned with internal efficiency and control to produce reliable, high-quality products for steady customers.

Accepted Answer

A defender strategy is indeed focused on maximizing internal efficiency and quality control to consistently produce reliable products for a loyal customer base.

Quiz 2: Strategy, Organizational Design, and Effectiveness