Question 1

Melvin's fishing store has profit as an objective. As a result, he wants to have

Accepted Answer

Organizations with profit as an objective want to have money and assets left over after paying off business expenses.

Question 2

Get Fit Gym wants to make the best use of its resources. As a result, the company hires college students to work at the front desk, so personal trainers can focus on helping members in the gym and teaching fitness classes. What type of objective is the most relevant to this example?

Accepted Answer

Get Fit Gym has an efficiency objective, or making the best use of its resources.

Question 3

Nellie's Sweet Shop, a large candy store, has historically sold a lot of chocolate and gummy candies. However, over the years, people have become more health conscious. As a result, Nellie's develops a new line of sugar-free candies that taste as good as the original but without the guilt. What type of objective does this exemplify?

Accepted Answer

This scenario exemplifies a growth objective because Nellie's Sweet Shop is adapting and getting new products to the marketplace in a timely fashion.

Question 4

The top management of Darryl's Detailing Center decides that the company's objective for the next two years will be to expand the overall business to include locations in other states. This is an example of ________ planning.

Accepted Answer

This is an example of strategic planning. A firm's highest managers develop its strategic plans, which establish the long-range objectives and overall strategy or course of action by which the firm fulfills its mission. Strategic plans generally cover periods ranging from one year or longer. They include plans to add products, purchase companies, sell unprofitable segments of the business, issue stock, and move into international markets.

Question 5

School Works, a large publisher of educational resources, decides to sell its high school division because it isn't as profitable as the elementary school division. This will allow the company to focus its efforts and funds on becoming the leading elementary school publisher. What type of plan is this?

Accepted Answer

This is a strategic plan. Strategic plans include adding products, purchasing companies, selling unprofitable segments of the business, issuing stock, and moving into international markets.

Question 6

Strategic plans generally cover a time frame of

Accepted Answer

Strategic plans generally cover periods ranging of one year or longer.

Question 7

All of the following are true of strategic plans EXCEPT

Accepted Answer

Since strategic plans establish the overall course of action by which a firm fulfills its mission, they are developed by a firm's highest managers. Strategic plans must take into account the organization's capabilities and resources, the changing business environment, and organizational objectives. Plans should be market-driven, matching customers' desire for value with operational capabilities, processes, and human resources.

Question 8

What is a difference between strategic and tactical plans?

Accepted Answer

Strategic plans are long term, lasting one year or longer, while tactical plans are short term, lasting one year or less. Tactical plans are designed to implement the activities and objectives specified in the strategic plan.

Question 9

What type of plan helps keep the organization on the course established in the strategic plan?

Accepted Answer

Tactical plans are short range and designed to implement the activities and objectives specified in the strategic plan. These plans, which usually cover a period of one year or less, help keep the organization on the course established in the strategic plan.

Question 10

Easy Does It, a home improvement store, has a strategic plan to open a new store next year. As a result, it develops a plan to determine what needs to be accomplished in order to get the new store up and running. This is a ________ plan.

Accepted Answer

These is a tactical plans, which is short range and designed to implement the activities and objective specified in the strategic plan.

Question 11

The top management of Clear Chemical Inc. creates a strategic plan to enter new product markets within a period of five years. The company's middle management creates six-month plans to ensure that the objectives of the strategic plan are properly implemented. Along with these plans, each department creates short-term plans that specify the actions to be taken by specific employees and teams to meet the objectives of the strategic plan and the six-month plans. These short-term plans established at the departmental level are referred to as

Accepted Answer

These short-term plans established at the departmental level are referred to as operational plans. Operational plans are very short term and specify what actions specific individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan.

Question 12

Stan works in the supply warehouse for a large manufacturing facility. Each day, Stan is given a production quota. This ensures that enough materials will be available for the next day's production run, so the company can increase its product availability and be able to ship products faster than any other company. A production quota is an example of a(n)

Accepted Answer

Operational plans apply to details in executing activities in one month, week, or even day. For example, a work group may be assigned a weekly production quota to ensure there are sufficient products available to elevate market share (tactical goal) and ultimately help the firm be number one in its product category (strategic goal).

Question 13

What is an example of an operational plan?

Accepted Answer

The work group at a large manufacturing plant that is assigned a weekly production quota to ensure there are sufficient products available to elevate market share and ultimately help the firm be number one in its product category is an operational plan. Operational plans apply to details in executing activities in one month, week, or even day.

Question 14

A huge fire broke out in Fancy Fixtures, a small home decorating store. The fire destroyed the store's inventory, and ultimately, the company went out of business. What is most likely the reason this company went out of business?

Accepted Answer

In this scenario, Fancy Fixtures most likely didn't have an updated contingency plan to handle this type of crisis. It is estimated that approximately 40 percent of small businesses fail to reopen after a serious disaster.

Question 15

What is true regarding crisis management?

Accepted Answer

Many companies have crisis management teams to deal specifically with problems, permitting other managers to continue to focus on their regular duties. Sometimes, disasters occur that no one can anticipate, but companies can still plan for how to react to the disaster. It is important to plan for crisis and to respond publicly and quickly when a disaster occurs. It is estimated that approximately 40 percent of small businesses fail to reopen after a serious disaster.

Question 16

Pamela manages a large blood donation facility. One of her roles is structuring the company's resources and activities to accomplish its objectives efficiently and effectively. What management function does this example pertain to?

Accepted Answer

This example pertains to organizing, the structuring of resources and activities to accomplish objectives in an efficient and effective manner. Managers organize by reviewing plans and determining what activities are necessary to implement them; then, they divide the work into small units and assign it to specific individuals, groups, or departments.

Question 17

Vanessa works for a large cable company and is the manager for its service and repair team. Each day Vanessa reviews the list of job orders and locations of each job. She divides the job orders among her repair team so the jobs are completed in the most efficient manner possible based on where each job is located. What function of management does this represent?

Accepted Answer

Organizing is the structuring of resources and activities to accomplish objectives in an efficient and effective manner. Managers organize by reviewing plans and determining what activities are necessary to implement them; then, they divide the work into small units and assign it to specific individuals, groups, or departments.

Question 18

Kelli's kitchen appliance company is reorganizing for greater efficiency. How would this company most likely organize the work?

Accepted Answer

As companies reorganize for greater efficiency, more often than not, they are organizing work into teams to handle core processes such as new product development instead of organizing around traditional departments such as marketing and production.

Question 19

All of the following are reasons organizing is important EXCEPT

Accepted Answer

Organizing is important because it helps create synergy, whereby the effect of a whole system equals more than that of its parts. It also establishes lines of authority, improves communication, helps avoid duplication of resources, and can improve competitiveness by speeding up decision making.

Question 20

Mitch owns a large moving company. Over the years, the market has changed, and Mitch has had to adapt how he structures his resources and activities to continue to accomplish his business objectives efficiently and effectively. What does this scenario demonstrate?

Accepted Answer

The scenario demonstrates that organizing occurs continuously because change is inevitable.

Quiz 6: The Nature of Management