Question 1

________ is the purpose for which - and the reason why - an organization exists.
A) Organizational objective
B) Organizational strategy
C) Organizational mission
D) Organizational policy
E) Organizational rule

Accepted Answer

An organizational mission defines the purpose and reason for an organization's existence. It describes what the organization does, who it serves, and how it differentiates itself from other organizations. Organizational objectives are specific, measurable targets an organization sets to achieve its mission. Organizational strategy is the plan an organization creates to achieve its objectives. Organizational policies and rules are guidelines and procedures an organization sets to regulate its operations.

Question 2

Which level of the organization's environment exists inside the organization and normally has immediate and specific implications for managing the organization?
A) the general environment
B) the internal environment
C) the operating environment
D) the external environment
E) the political environment

Accepted Answer

The internal environment is the level of the organization's environment that exists inside the organization and has immediate and specific implications for managing the organization. This includes factors such as organizational culture, work processes, and employee morale, and can be directly controlled by the organization's leadership. The external environment, on the other hand, includes factors beyond the organization's control, such as economic conditions, regulatory changes, and technological innovations. The operating environment refers to the specific industry or market in which the organization operates, while the general environment includes broader social, economic, and political trends that may affect the organization indirectly. The political environment specifically refers to government policies and regulations that may impact the organization.

Question 3

Bristol Jones is the owner of a women's shoe store in Wainscot, PA. Her store has been extremely successful selling high-end shoes to the adult market in Wainscot. Management is looking to grow revenues and is considering offering men's shoes as well. What is your advice to Ms. Jones that she consider before taking on this new product line?

Accepted Answer

The answer of Bristol Jones is the owner of a...

Question 4

"In what kind of environment does the organization now exist?" is one of the four basic questions required for critical question analysis.

Accepted Answer

This is a true statement. The four basic questions required for critical question analysis are: 1) What are the facts? 2) What is the problem? 3) What are the potential solutions? 4) In what kind of environment does the organization now exist?

Question 5

George's Quick Stop is planning to compete using a cost-leadership strategy. Doing this means George's will have what kind of products in their convenience stores?
A) basic, no frills product offerings
B) highly unique product offerings
C) specialty shopping bags
D) high-end products
E) live music on the weekends

Accepted Answer

A cost-leadership strategy focuses on offering basic, no frills products at the lowest possible price to attract price-sensitive customers. Therefore, George's Quick Stop would likely offer basic products in their convenience stores. Highly unique or high-end products would not be compatible with this strategy. Specialty shopping bags and live music on the weekends are not necessarily related to product offerings.

Question 6

The level of an organization's external environment that contains components normally having relatively specific and immediate implications for managing the organization is the ________.
A) demographic environment
B) general environment
C) industry environment
D) international environment
E) internal environment

Accepted Answer

The industry environment refers to the external factors that have a specific and direct impact on the operations and success of a particular industry. These factors may include competitors, suppliers, customers, and regulations. Therefore, it is the level of the external environment that contains components with immediate implications for managing the organization. The other options listed (demographic environment, general environment, international environment, and internal environment) may still have an impact on the organization, but are broader in scope and may not have as direct of an impact on managing the organization.

Question 7

Which of the following statements accurately reflects the relationship between the mission and the objectives?
A) The mission statement reflects and flows naturally from the objectives.
B) The objectives reflect and flow naturally from the mission.
C) There is no direct relationship between the mission and the objectives.
D) The mission statement stands alone and has no influence on the objectives.
E) The mission and the objectives influence each other.

Accepted Answer

The mission statement is usually a broad statement of the overall purpose and direction of the organization, while the objectives are specific, measurable targets that support the mission. Therefore, it is natural for the objectives to flow from and be derived from the mission statement. However, the objectives can also influence and shape the mission over time, leading to a feedback loop between the two.

Question 8

The general environment of an organization's external environment contains international, labor, customer, competitor, and supplier components.

Accepted Answer

The general environment typically includes the technological, economic, sociocultural, political/legal, international, and natural environment sectors, not specifically labor, customer, competitor, and supplier components, which are part of the task environment.

Question 9

The answer to which of the following critical questions indicates whether the organization is progressing satisfactorily or not?
A) What are the purposes and objectives of the organization?
B) Where is the organization presently going?
C) In what kind of environment does the organization now exist?
D) What can be done to better achieve organizational goals in the future?
E) What does our SWOT analysis show?

Accepted Answer

The critical question "Where is the organization presently going?" deals with the progress of the organization and its ability to achieve its goals. The answer to this question indicates whether the organization is moving in the desired direction or not. Therefore, it is the best choice to determine whether the organization is progressing satisfactorily or not.

Question 10

Managers only perform environmental analysis to help them understand what is happening outside their organization.

Accepted Answer

Managers not only perform environmental analysis to understand what is happening outside their organization, but also to identify opportunities and threats that may affect their organization and develop strategies to address them.

Question 11

Jewel Delight is planning to compete using a differentiation strategy. Doing this means they will have what kind of products in their jewelry stores?
A) basic, no frills jewelry offerings
B) highly unique jewelry offerings
C) one line of jewelry
D) comparable jewelry their competitors offer
E) easily imitable jewelry offerings

Accepted Answer

A differentiation strategy means offering unique and distinct products that set the company apart from its competitors. Therefore, Jewel Delight's jewelry offerings would be highly unique and different from what their competitors offer.

Question 12

According to Porter, ________ refers to the power that customers have over the firms operating in an industry.
A) the threat of new entrants
B) buyer power
C) supplier power
D) the threat of substitute products
E) intensity of rivalry

Accepted Answer

Buyer power refers to the ability of customers to influence the pricing and quality of products offered by firms in the industry. This includes factors such as the availability of substitute products, the level of competition between firms, and the bargaining power of individual customers or groups of customers. Porter considers buyer power to be one of the five main forces that shape the competitive environment within an industry.

Question 13

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.
A) Establishment of organizational direction
B) Strategy implementation
C) Strategy control
D) Strategy formulation
E) Environmental analysis

Accepted Answer

Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose. It involves analyzing the organization's current situation, setting goals, developing strategies, and choosing the most effective courses of action to achieve those goals.

Question 14

Discuss the value of management conducting an Environmental Analysis.

Accepted Answer

The answer of Discuss the value of management conducting an...

Question 15

Which of the following components includes new approaches to producing goods and services?
A) the technology component
B) the political component
C) the labor component
D) the legal component
E) the productive component

Accepted Answer

The technology component includes new approaches to producing goods and services such as automation, artificial intelligence, and new manufacturing processes.

Question 16

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.
A) mission statement
B) strategic plan
C) operating plan
D) annual budget
E) vision statement

Accepted Answer

A mission statement is a comprehensive document that defines the purpose, values, and direction of an organization. It provides guidance for decision-making and helps to align all stakeholders around a common vision. It is usually written by the management team and serves as an important tool for communicating the organization's goals and aspirations to employees, customers, investors, and other stakeholders.

Question 17

Porter's model emphasizes ________.
A) strengths, weaknesses, opportunities, and threats
B) stars, dogs, cash cows, and question marks
C) competitive forces in an industry
D) business strength and industry attractiveness
E) environmental analysis

Accepted Answer

Porter's model emphasizes competitive forces in an industry, including threats of new entrants, bargaining power of suppliers and buyers, threat of substitute products or services, and intensity of competitive rivalry.

Question 18

According to Porter, threat of new entrants refers to ________.
A) the power that customers have over the firms
B) the power that suppliers have over the firms
C) the extent to which customers may use services from another industry instead of the focal industry
D) the ability of new firms to enter an industry
E) the intensity of the rules of an organization

Accepted Answer

The threat of new entrants refers to the ease or difficulty with which new firms can enter an industry. This often depends on factors such as barriers to entry, economies of scale, and brand recognition.

Question 19

Lobbying efforts by interest groups and progress on the passage of laws are examples of the ________ component of the general environment.
A) social
B) political
C) legal
D) technological
E) international

Accepted Answer

Lobbying efforts by interest groups and progress on the passage of laws are examples of the political component of the general environment, which refers to the influence of political institutions and systems on the organization's objectives and decisions. The social component refers to demographic characteristics and cultural factors, the legal component refers to laws and regulations, the technological component refers to advancements in technology, and the international component refers to global events and trends.

Question 20

A summer storm just passed through the town of Chester Oaks and caused much roofing and siding damage to homes. This storm offers a/an ________ to roofing and siding contractors.
A) strength
B) weakness
C) opportunity
D) threat
E) force fulfillment

Accepted Answer

The storm presents an opportunity for roofing and siding contractors to secure business and potentially expand their client base due to the damage caused by the storm.

Quiz 7: Strategic Planning: Strategies, Tactics, and Competitive Dynamics

________ is the purpose for which - and the reason why - an organization exists.

Which level of the organization's environment exists inside the organization and normally has immediate and specific implications for managing the organization?

"In what kind of environment does the organization now exist?" is one of the four basic questions required for critical question analysis.

George's Quick Stop is planning to compete using a cost-leadership strategy. Doing this means George's will have what kind of products in their convenience stores?

The level of an organization's external environment that contains components normally having relatively specific and immediate implications for managing the organization is the ________.

Which of the following statements accurately reflects the relationship between the mission and the objectives?

The general environment of an organization's external environment contains international, labor, customer, competitor, and supplier components.

The answer to which of the following critical questions indicates whether the organization is progressing satisfactorily or not?

Managers only perform environmental analysis to help them understand what is happening outside their organization.

Jewel Delight is planning to compete using a differentiation strategy. Doing this means they will have what kind of products in their jewelry stores?

According to Porter, ________ refers to the power that customers have over the firms operating in an industry.

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.

Discuss the value of management conducting an Environmental Analysis.

Which of the following components includes new approaches to producing goods and services?

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.

Porter's model emphasizes ________.

According to Porter, threat of new entrants refers to ________.

Lobbying efforts by interest groups and progress on the passage of laws are examples of the ________ component of the general environment.

A summer storm just passed through the town of Chester Oaks and caused much roofing and siding damage to homes. This storm offers a/an ________ to roofing and siding contractors.