Question 1

The Boston Consulting Group (BCG) matrix organizes businesses along two dimensions: their business growth rate and their geographical location.

Accepted Answer

The Boston Consulting Group (BCG) matrix organizes businesses along two dimensions: their market share and their industry growth rate. It does not take into account geographical location.

Question 2

If Renee, manager at Leak-Free Roofing, wanted to develop a contingency plan for Leak-Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases.

Accepted Answer

Developing a contingency plan requires analyzing potential risks and creating strategies to address them. Factors such as equipment, economy, and workers' compensation cases can all pose risks to the company's success and must be considered when developing a contingency plan.

Question 3

Operational plans and goals focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals.

Accepted Answer

False

Question 4

The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply.

Accepted Answer

The task environment sectors are the immediate external factors that influence an organization's strategic behavior and include competitors, customers, suppliers, and the labor supply. Understanding and analyzing these sectors is critical for effective strategic planning.

Question 5

One of the biggest benefits of planning is that plans create greater organizational flexibility in turbulent environments.

Accepted Answer

The answer of One of the biggest benefits of planning...

Question 6

During the strategy execution phase, operational goals are defined.

Accepted Answer

Operational goals are typically defined during the strategy formulation phase, not during the execution phase. The execution phase focuses on implementing the strategies and achieving the already defined goals.

Question 7

Front-line managers have the final responsibility for strategic planning.

Accepted Answer

While front-line managers may have input and provide feedback on strategic planning, the final responsibility typically lies with upper-level management such as executives or directors.

Question 8

Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.

Accepted Answer

The statement incorrectly associates external opportunities with internal documents like budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. These documents primarily provide information about internal operations, strengths, and weaknesses, not external opportunities.

Question 9

A goal is a desired future circumstance or condition that the organization attempts to realize.

Accepted Answer

A goal is defined as a desired future state that an organization aims to achieve.

Question 10

The two stages of crisis planning are crisis prevention and crisis preparation.

Accepted Answer

The two stages of crisis planning are indeed crisis prevention and crisis preparation.

Question 11

In today's business environment, it is expected that CEOs will do the large majority of their corporation's strategic planning.

Accepted Answer

Strategic planning is typically a collaborative effort involving input from various levels of management and departments, not solely the responsibility of the CEO.

Question 12

Trend management is looking at trends and discontinuities and imagining possible alternative futures.

Accepted Answer

The answer of Trend management is looking at trends and...

Question 13

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry.

Accepted Answer

The essence of formulating strategy is not simply conforming to competitors, but rather choosing a unique direction and competitive advantage for the organization. Strategy should consider the strengths, weaknesses, and resources of the organization, as well as market opportunities and trends.

Question 14

When possible, operational goals should be expressed in quantitative terms.

Accepted Answer

Expressing goals in quantitative terms makes them specific, measurable, and easier to track progress towards. It also helps clarify expectations and provides a clear benchmark for success.

Question 15

The set of decisions and actions used to formulate and implement strategies are referred to as competitive advantage.

Accepted Answer

The set of decisions and actions used to formulate and implement strategies is referred to as strategic management, not competitive advantage. Competitive advantage refers to the attributes that allow an organization to outperform its competitors.

Question 16

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.

Accepted Answer

Research has consistently shown that strategic thinking and planning lead to better performance and financial success for firms. Organizations that engage in strategic planning are more likely to achieve their goals, respond effectively to changes in the market, and adapt to new opportunities. Additionally, strategic planning helps firms optimize their resources, allocate their budget and investments, and minimize risk.

Question 17

Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends.

Accepted Answer

Competitive intelligence professionals are hired by companies to gather data and research on relevant domestic and global trends to help the company stay competitive in the market.

Question 18

A business plan is a broad definition of the organization's values, aspirations, and reason for being, along with a recognition of the scope and operations that distinguishes the organization.

Accepted Answer

A business plan is a detailed document outlining a company's goals, strategies, and financial projections, not a broad definition of values and aspirations.

Question 19

Goals should be easy for employees to achieve in order to keep morale and motivation high.

Accepted Answer

Goals should be challenging enough to push employees to strive for better performance and growth. If goals are too easy, employees may become bored and complacent, leading to a decrease in motivation and morale. However, goals should also be achievable with effort and skill, and not so difficult that they seem impossible to reach. Striking a balance between challenge and achievability is key for maintaining high morale and motivation in employees.

Question 20

Goals are most effective when they are specific, measurable, challenging, and linked to rewards.

Accepted Answer

Specific, measurable, challenging goals provide clear direction and promote accountability, while rewards provide motivation to achieve them.

Quiz 5: Planning and Goal Setting