Question 1

The manager of a residential construction business plans to build more houses next year because interest rates are falling and more people will be able to afford new homes.This plan is an example of ________.
A) benchmarking
B) contingency planning
C) forecasting
D) simulation

Accepted Answer

The manager's plan to build more houses next year based on the prediction that interest rates will fall and more people will be able to afford new homes is an example of forecasting. Forecasting involves making predictions or projections about future events or trends based on past data or trends. Benchmarking involves comparing your company's performance with that of other companies, contingency planning involves preparing for and anticipating potential negative events or risks, and simulation involves creating a model or scenario to simulate a real-life situation.

Question 2

The planning responsibilities of functional-level managers largely focus on the development of ________ plans.
A) tactical
B) strategic
C) operational
D) corporate

Accepted Answer

Functional-level managers are primarily responsible for developing operational plans, which are short-term actions and strategies designed to achieve specific objectives within a part of the organization.

Question 3

________ typically identify key factors that could affect the desired results and specify what different actions will be taken if changes in key events occur.
A) Strategic plans
B) Operational plans
C) Contingency plans
D) Tactical plans

Accepted Answer

Contingency plans are developed to anticipate and address unexpected events that could potentially affect the achievement of desired results. They specify the actions that will be taken if certain key factors change or unforeseen situations arise. Strategic plans provide a broad, long-term framework for achieving organizational goals, but do not typically identify specific actions for addressing unforeseen issues. Operational plans focus on the day-to-day activities and processes required to execute the strategic plan, while tactical plans specify how specific objectives will be achieved, but do not necessarily address contingency planning.

Question 4

Prior to entering the Eastern European markets,Procter & Gamble assessed the strengths and weaknesses of possible competitors and noncompetitors in those markets.Procter & Gamble's actions can be classified as ________.
A) setting objectives and strategies
B) analyzing the external environment
C) determining corporate resources
D) monitoring contingent outcomes

Accepted Answer

Procter & Gamble's assessment of possible competitors and noncompetitors in Eastern European markets involves analyzing the external environment, which is the process of identifying and evaluating external factors that could impact a company's performance in a particular market. This includes factors such as market size, competition, regulatory and legal environment, economic conditions, and cultural and societal norms.

Question 5

Which of the following statements is true about the interrelationship between plan types and levels?
A) Business-level managers may be involved in developing strategic plans for their business units.
B) Corporate managers are usually involved in developing tactical plans for their businesses.
C) Business-level managers are involved in developing operational plans.
D) Functional-level managers largely focus on the development of tactical plans.

Accepted Answer

Business-level managers are typically involved in developing strategic plans for their business units, while corporate managers focus on the development of overall corporate-level strategic plans. Operational planning is typically the responsibility of lower-level managers, such as department heads or supervisors. Functional-level managers are involved in the development and execution of specific functional tactics within their areas of expertise.

Question 6

A community college has to decide if more budget is to be allocated for hiring new instructors or for developing new laboratory facilities.This is an example of ________.
A) determining priorities
B) forecasting
C) benchmarking
D) contingency planning

Accepted Answer

The decision being made in this scenario is about determining priorities – specifically, deciding whether to allocate more budget towards hiring new instructors or developing new laboratory facilities. A is the correct choice. Forecasting would involve predicting future trends or outcomes, which is not necessarily what is happening in this scenario. Benchmarking involves comparing performance to industry standards, which is also not relevant to this scenario. Contingency planning involves preparing for potential disasters or unexpected events, which is not what is happening in this scenario.

Question 7

A manager of a local bookstore is trying to increase his store's productivity without hiring additional employees.He has noticed that a competitor is flourishing with relatively few employees and decides to investigate.This is an example of ________.
A) forecasting
B) benchmarking
C) competitive intelligence
D) contingency planning

Accepted Answer

Benchmarking involves comparing one's business processes and performance metrics to industry bests or best practices from other companies. In this case, the manager is looking at a competitor's successful practices to improve his own store's productivity.

Question 8

Implementing plans is an important stage in the planning process because ________.
A) the of the plan's implementation can affect the results achieved
B) this phase overlaps with the analysis of the firm's external environment
C) the prioritization of objectives is undertaken during this stage
D) the objectives to be achieved are determined during this phase

Accepted Answer

Implementing plans is an important stage because the way in which the plan is executed can have a significant impact on the results achieved. It involves taking action and putting the plan into practice, which requires careful management and monitoring to ensure that goals are met. Prioritization of objectives, determining objectives, and analyzing the external environment are usually done during earlier stages in the planning process.

Question 9

A Gantt chart can help managers devise an action plan in all of the following ways EXCEPT ________.
A) showing the sequence in which the actions will be completed
B) showing when actions will start and how long they require for completion
C) showing any expected overlap in the timing of specific actions
D) showing the course of action to be taken if plans need to be changed during the course of their implementation

Accepted Answer

A Gantt chart shows the sequence and timing of actions, as well as overlap, but it does not provide a specific course of action for handling changes in plans during implementation. This would require additional planning and decision-making outside of the Gantt chart.

Question 10

A manager at a local bookstore is about to allocate extra floor space to an espresso counter when a new coffee shop opens next door.He stops implementation of his plan and instead looks into opening a juice bar.This an example of which of the following?
A) successful budgeting
B) real-time adjustment
C) sequence and timing
D) management by objectives

Accepted Answer

This is an example of real-time adjustment, as the manager is adapting their plan based on a new development (the opening of a coffee shop next door).

Question 11

A(n)________ specifies the amount of money a company plans to spend on specific items that have long-term use and require significant financial investments.
A) capital expense budget
B) mission statement
C) operating budget
D) white paper

Accepted Answer

A capital expense budget is specifically for long-term investments in equipment, property, or other assets. This budget covers the costs of such items in the upcoming year(s) and can help companies plan for larger expenses.

Question 12

It is easier to gauge the outcome of a plan if it was expected to ________.
A) achieve greater employee commitment levels
B) improve the firm's financial performance
C) reduce the firm's susceptibility to environmental uncertainty
D) enhance the company's public image

Accepted Answer

The outcome of a plan can be easily measured if it was expected to improve the firm's financial performance. This is because financial performance can be quantified and measured objectively through key performance indicators such as revenue, profit margins, and return on investment. The other options, such as employee commitment levels, susceptibility to environmental uncertainty, and public image, are harder to quantify and may require subjective measures.

Question 13

________ involves investigating the best practices used by competitors and noncompetitors and imitating those that can be done in the firm.
A) Benchmarking
B) Competitive intelligence
C) Forecasting
D) Corporate espionage

Accepted Answer

Benchmarking is the process of comparing the firm's own practices, processes, and performance against those of its competitors or noncompetitors, identifying best practices or areas for improvement, and adapting them to the firm's operations. Competitive intelligence, on the other hand, involves gathering and analyzing information about competitors' strategies, strengths, weaknesses, and actions to anticipate their moves and gain a competitive advantage. Forecasting is the process of predicting future trends, events, and opportunities based on past data and analysis. Corporate espionage, meanwhile, is an unethical and illegal practice of stealing or infiltrating confidential information from rivals to obtain a competitive edge.

Question 14

Which of the following is NOT a key element in developing an action plan?
A) accountability
B) sequence and timing
C) monitoring the implementation
D) making real-time adjustments

Accepted Answer

The answer of Which of the following is NOT a...

Question 15

Sespi is a manufacturer of aerated drinks such as colas and other beverages.The finance department is planning to table a capital expenditure budget for the upcoming year.Which of the following items might be accounted for under this budget?
A) stationery items for offices
B) a new bottling plant
C) employee payroll
D) dividend payments for shareholders

Accepted Answer

A capital expenditure is a long-term investment that is expected to benefit the company for a number of years. Stationery items, employee payroll, and dividend payments are not considered capital expenditures. A new bottling plant, on the other hand, is a significant investment that can greatly impact the company's future profitability and growth.

Question 16

Which of the following is an issue managers address when assessing the firm's internal resources?
A) evaluation of the available human capital
B) study of best practices of competitors and noncompetitors
C) incorporation of environmental uncertainty into the firm's plans
D) assessment of value of the firm's products or services

Accepted Answer

Managers need to assess the available human capital within the firm to determine the strengths and weaknesses of the workforce and identify areas for improvement. This includes evaluating the skills, knowledge, and experience of employees, as well as their ability to work together as a team.

B) is incorrect because studying best practices of competitors and noncompetitors falls under external analysis.

C) is incorrect because incorporating environmental uncertainty into the firm's plans is part of the external analysis, rather than internal analysis.

D) is incorrect because the assessment of the value of the firm's products or services is a part of the firm's external analysis.

Question 17

Developing tactical plans is typically the responsibility of ________.
A) functional-level managers
B) business-level managers
C) operational-level managers
D) corporate-level managers

Accepted Answer

Tactical plans are usually developed by business-level managers as they focus on implementing the strategies set by corporate-level managers and are more specific to certain business units or functions.

Question 18

________ is a term that refers to the tool used to quantify and allocate resources to specific activities.
A) Budget
B) Contingency plan
C) Benchmarking
D) Accounting

Accepted Answer

Budget refers to the process of estimating and allocating resources to specific activities over a set period of time. It is a tool used to plan and control spending, and is essential for effective financial management.

Question 19

The final element in the planning process involves ________.
A) monitoring outcomes
B) implementing plans
C) assessing the firm's external environment
D) measuring objectives and assigning priorities

Accepted Answer

Monitoring outcomes is the final step in the planning process, as it involves evaluating the effectiveness of the plan and making necessary adjustments.

Question 20

Which of the following statements regarding objectives is true?
A) Managers need to assign equal importance to all of the objectives.
B) Determining priorities for objectives is usually the final stage associated with setting objectives.
C) The importance of some objectives varies with time.
D) A clear understanding of the sequence of priorities has no significant impact on employee performance.

Accepted Answer

The importance of objectives can change over time due to changes in the external environment, organization's goals, and resources. Therefore, managers need to be flexible and prioritize objectives accordingly. Option A is incorrect because not all objectives have equal significance. Option B is also incorrect because prioritizing objectives is usually done at the beginning of the planning process. Option D is false because a clear understanding of the priority sequence can help employees focus their efforts on the most important objectives, leading to improved performance.

Quiz 5: Planning

The manager of a residential construction business plans to build more houses next year because interest rates are falling and more people will be able to afford new homes.This plan is an example of ________.

The planning responsibilities of functional-level managers largely focus on the development of ________ plans.

________ typically identify key factors that could affect the desired results and specify what different actions will be taken if changes in key events occur.

Prior to entering the Eastern European markets,Procter & Gamble assessed the strengths and weaknesses of possible competitors and noncompetitors in those markets.Procter & Gamble's actions can be classified as ________.

Which of the following statements is true about the interrelationship between plan types and levels?

A community college has to decide if more budget is to be allocated for hiring new instructors or for developing new laboratory facilities.This is an example of ________.

A manager of a local bookstore is trying to increase his store's productivity without hiring additional employees.He has noticed that a competitor is flourishing with relatively few employees and decides to investigate.This is an example of ________.

Implementing plans is an important stage in the planning process because ________.

A Gantt chart can help managers devise an action plan in all of the following ways EXCEPT ________.

A manager at a local bookstore is about to allocate extra floor space to an espresso counter when a new coffee shop opens next door.He stops implementation of his plan and instead looks into opening a juice bar.This an example of which of the following?

A(n) ________ specifies the amount of money a company plans to spend on specific items that have long-term use and require significant financial investments.

It is easier to gauge the outcome of a plan if it was expected to ________.

________ involves investigating the best practices used by competitors and noncompetitors and imitating those that can be done in the firm.

Which of the following is NOT a key element in developing an action plan?

Sespi is a manufacturer of aerated drinks such as colas and other beverages.The finance department is planning to table a capital expenditure budget for the upcoming year.Which of the following items might be accounted for under this budget?

Which of the following is an issue managers address when assessing the firm's internal resources?

Developing tactical plans is typically the responsibility of ________.

________ is a term that refers to the tool used to quantify and allocate resources to specific activities.

The final element in the planning process involves ________.

Which of the following statements regarding objectives is true?