Question 1

Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.

Accepted Answer

Brainstorming is a process of generating ideas and solutions without any critical evaluation or judgment. It encourages participants to share their ideas freely, and creativity is encouraged without any negative feedback or criticism. Therefore, the above statement is correct.

Question 2

Strategic planning is now much easier than it used to be because managers have access to very reliable computerized forecasting tools.

Accepted Answer

While computerized forecasting tools can be helpful in strategic planning, they do not make it "much easier" as there are still many factors to consider and analyze. Additionally, the reliability of the tools depends on the accuracy of the data and assumptions inputted into the system. Strategic planning still requires careful analysis and decision-making by managers.

Question 3

The first step in the rational decision-making model is to identify alternative solutions.

Accepted Answer

The first step in the rational decision-making model is to define the problem or identify the decision to be made.

Question 4

The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

Accepted Answer

The last step in the rational decision-making model is indeed to evaluate the decision to determine whether it was a good one and then follow up on any necessary actions.

Question 5

One example of tactical planning is setting annual budgets and deciding on other details and activities necessary to meet the strategic objectives.

Accepted Answer

Tactical planning involves creating specific plans and tactics to achieve the broader strategic objectives. Setting annual budgets and defining specific activities and details are examples of tactical planning.

Question 6

Today's business environment changes so rapidly that strategic planning is becoming more difficult and subject to change.

Accepted Answer

Rapid changes in technology, competition, and customer preferences require businesses to be flexible and adaptable in their strategic planning. It is important to continuously monitor and adjust plans to stay competitive in the market.

Question 7

Instead of creating detailed strategic plans, the leaders of market-based companies (companies that respond quickly to environmental changes) set flexible directions so as to allow for change and seize opportunities when they come.

Accepted Answer

The statement is true as market-based companies prioritize adapting to environmental changes and remaining flexible in their strategies, rather than sticking to rigid plans. This allows them to respond quickly to market shifts and capitalize on new opportunities as they arise.

Question 8

Objectives should be expressed as broad, general principles rather than as specific short-term results.

Accepted Answer

Objectives should be specific, measurable, achievable, relevant, and time-bound (SMART) to ensure clear understanding and effective evaluation of progress towards achieving them.

Question 9

Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.

Accepted Answer

Contingency planning is all about having a backup plan in case your primary plan fails to produce the intended results.

Question 10

Decision making occurs in all management functions.

Accepted Answer

Decision making is an essential part of all management functions. It is required in planning, organizing, leading, and controlling to achieve the ultimate goal of an organization.

Question 11

Many cities and businesses are now developing contingency plans to respond to potential terrorist attacks.

Accepted Answer

With the increase in terrorist activities across the world, many cities and businesses are now developing contingency plans to respond to potential terrorist attacks. These plans aim to minimize the impact of such attacks and ensure the safety of citizens and employees.

Question 12

Continuous planning is not necessary, because plans that worked well in the past are likely to continue to work well in the future.

Accepted Answer

Continuous planning is necessary because external factors such as market changes, technological advancements, and unexpected events may require adjustments to previous plans. Additionally, continuous planning and revision can help organizations stay proactive and responsive to changes in their environments.

Question 13

An analysis of the business environment helps managers identify threats and opportunities that face their firm.

Accepted Answer

An analysis of the business environment includes identifying threats and opportunities that may impact a firm's operations and strategy.

Question 14

One step in the rational decision-making model is to develop alternatives.

Accepted Answer

Developing alternatives is an essential step in the rational decision-making model, which involves generating and evaluating different courses of action to solve a problem or achieve a goal. By creating diverse options, decision-makers can assess their strengths and weaknesses, weigh the pros and cons, and choose the one that best aligns with their objectives and constraints. Therefore, alternative development is often considered a critical thinking skill that helps individuals and organizations make better decisions.

Question 15

The SWOT analysis helps firms identify competitive threats and market opportunities.

Accepted Answer

The SWOT analysis is a tool used by firms to assess internal strengths and weaknesses, as well as external opportunities and threats, which can help identify competitive threats and market opportunities.

Question 16

Tactical planning deals with setting long-range goals, while strategic planning develops the specific strategies needed to achieve the organization's operational goals.

Accepted Answer

The statement is incorrect. It should be the other way around - strategic planning sets long-range goals and tactical planning develops specific strategies to achieve them.

Question 17

Planning is a continuous process.

Accepted Answer

Planning is not a one-time activity. It involves regular evaluation, updating, and re-evaluation to align with the changing goals and external circumstances. Therefore, planning is a continuous process.

Question 18

Managers or teams of managers at the lower levels of an organization normally develop strategic plans, but top managers do most of the tactical planning.

Accepted Answer

It is the other way around. Top managers are responsible for developing strategic plans, while lower-level managers or teams of managers handle tactical planning.

Question 19

Strategic planning determines the major goals of the organization.

Accepted Answer

Strategic planning is the process of defining the long-term goals of an organization and developing a plan of action to achieve those goals. Therefore, it determines the major goals of the organization.

Question 20

Operational planning looks at the organization as a whole, while strategic planning focuses on specific departmental actions.

Accepted Answer

The statement is incorrect. Strategic planning looks at the organization as a whole, identifying goals and strategies to achieve them, while operational planning focuses on specific actions to implement the strategies and achieve the goals set in the strategic plan.

Quiz 7: Management and Leadership