Question 1

Goals are initiated by the bottom level of an organization according to the hierarchy of goals approach to strategic planning.

Accepted Answer

Under the hierarchy of goals approach to strategic planning, goals are set at the top of a company by the president or CEO. Goals then flow downward to the lowest-ranked managers and employees.

Question 2

A mission statement is a general statement of a company's intended direction that evokes emotional feelings in the organization's members.

Accepted Answer

A firm's mission statement answers the question, "What business are we in?" Managers use mission statements to pinpoint whether and how the firm will vertically integrate, as well as the firm's product scope, geographic coverage, and competitive advantage.

Question 3

________ involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan.
A)The management planning process
B)Financial auditing
C)Employee testing
D)Employee benchmarking

Accepted Answer

A)The basic management planning process involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan. Planning is always goal-directed.

Question 4

John wants to perform external and internal audits as part of the strategic management process. What is a frequently used tool to organize relevant information on positive and negative aspects of the company and environment?
A)BCG matrix
B)QSPM matrix
C)SWOT chart
D)EPS/EBIT table

Accepted Answer

C)The SWOT chart is a tool frequently used by managers who are responsible for performing external and internal audits. Managers use it to compile and organize the company strengths, weaknesses, opportunities, and threats.

Question 5

What is the first step in the basic planning process?
A)evaluating the possible alternatives
B)implementing a course of action
C)setting an objective
D)comparing options

Accepted Answer

C)The first step of management planning is to set an objective or a goal.

Question 6

A vision statement is broader and more future-oriented than a mission statement.

Accepted Answer

The vision statement is a general statement of the firm's intended direction and broadly indicates what the firm wants to become. Vision statements focus on the future while mission statements address what the business does.

Question 7

What is a company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage?
A)strategic plan
B)situation analysis
C)SWOT analysis
D)tactical plan

Accepted Answer

A)A strategic plan is a firm's plan for assessing internal strengths and weaknesses with external opportunities and threats. The essence of strategic planning involves asking, "Where are we now as a business and where do we want to be?" Managers then develop specific strategies for taking a firm where it wants to be.

Question 8

Which term indicates the course of action for getting from where you are to where you want to go?
A)goal
B)plan
C)proposition
D)assessment

Accepted Answer

B)A plan shows the course of action for getting from where you are to where you want to go-in other words, to the goal. Planning is always "goal-directed."

Question 9

Steps in the basic management planning process include setting objectives, reviewing alternative courses of action, and evaluating which options are best.

Accepted Answer

The basic management planning process consists of five steps: setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best, and then choosing and implementing your plan planning process.

Question 10

Which of the following is a simple guide used to compile relevant information about a company's environment including economic, competitive, and political trends that may affect a firm?
A)workforce requirement matrix
B)environmental scan worksheet
C)external resource system table
D)potential globalization network

Accepted Answer

B)Environmental scan worksheets are a guide for compiling information about the company's environment. This includes the economic, competitive, and political trends that may affect the company.

Question 11

________ defines the nature of the company's business in terms of how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position.
A)Financial auditing
B)Strategic planning
C)Employee benchmarking
D)Employee testing

Accepted Answer

B)Strategic planning is the company's overall planning for how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position.

Question 12

Which of the following is NOT part of the basic managerial planning?
A)evaluation of best options
B)establishment of clear objectives
C)implementation of the plan
D)building corporate hierarchies

Accepted Answer

D)The basic management planning process involves setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best and then choosing and implementing the plan. However, managerial planning is hindered by the hierarchy of a corporation, which requires that plans meet budgetary requirements and match the long-term goals of the firm.

Question 13

Which of the following provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become"?
A)mission statement
B)strategic plan
C)vision statement
D)marketing plan

Accepted Answer

C)A firm's vision statement is a general statement about the intended direction of the firm and what the business should look like in the future.

Question 14

The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved?
A)evaluating the firm's internal and external strengths
B)defining the business and its mission
C)choosing specific strategies or courses of action
D)evaluating the strategic plan

Accepted Answer

C)The sales director is in the process of translating the firm's mission, which is to maintain a competitive advantage, choosing specific strategies or courses of action. This step is the fifth one in the strategic process, and it occurs after the manager makes a strategic choice.

Question 15

What is the first step in the strategic management process?
A)formulating a strategy
B)asking, "Where are we now as a business?"
C)evaluating the strategic plan
D)implementing an environmental scan

Accepted Answer

B)The first step in the strategic planning process is asking, "Where are we now as a business?"

Question 16

Strategy is a course of action.

Accepted Answer

Strategy is a course of action the company can pursue to achieve its strategic aims.

Question 17

All of the following are steps involved in the strategic management process EXCEPT ________.
A)evaluating the firm's internal and external situation
B)asking, "Where are we now as a business?"
C)formulating a new business direction
D)offshoring low-skill jobs

Accepted Answer

D)While offshoring low-skill jobs may be a strategy for some firms to lower expenditures, it is not a specific step involved in the strategic management process.

Question 18

Strategic management is best defined as the process of identifying and executing the organization's strategic plan by matching the company's capabilities with its ________.
A)environmental demands
B)competitive standards
C)natural resources
D)hierarchical skills

Accepted Answer

A)Strategic management is the process of identifying and executing the organization's strategic plan by matching the company's capabilities with the demands of its environment. Industry standards, resources, and corporate hierarchies are less relevant.

Question 19

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.
A)vision
B)goal
C)strategy
D)mission

Accepted Answer

C)A strategy is a course of action taken by a firm to achieve strategic aims.

Question 20

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.
A)mission statement
B)strategic plan
C)code of ethics
D)vision statement

Accepted Answer

A)A mission statement addresses the question, "What business are we in?" Mission statements explain the scope of an organization's product or services, and they may also address issues of vertical integration, geographic coverage, and competitive advantage.

Quiz 3: Human Resource Management Strategy and Analysis

Goals are initiated by the bottom level of an organization according to the hierarchy of goals approach to strategic planning.

A mission statement is a general statement of a company's intended direction that evokes emotional feelings in the organization's members.

________ involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan.

John wants to perform external and internal audits as part of the strategic management process. What is a frequently used tool to organize relevant information on positive and negative aspects of the company and environment?

What is the first step in the basic planning process?

A vision statement is broader and more future-oriented than a mission statement.

What is a company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage?

Which term indicates the course of action for getting from where you are to where you want to go?

Steps in the basic management planning process include setting objectives, reviewing alternative courses of action, and evaluating which options are best.

Which of the following is a simple guide used to compile relevant information about a company's environment including economic, competitive, and political trends that may affect a firm?

________ defines the nature of the company's business in terms of how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position.

Which of the following is NOT part of the basic managerial planning?

Which of the following provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become"?

The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved?

What is the first step in the strategic management process?

Strategy is a course of action.

All of the following are steps involved in the strategic management process EXCEPT ________.

Strategic management is best defined as the process of identifying and executing the organization's strategic plan by matching the company's capabilities with its ________.

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.