Question 1

The set of decisions that managers make to assist the organization in attaining its goals is called the strategy of the organization.

Accepted Answer

A strategy is a cluster of related managerial decisions and actions to help an organization attain one of its goals.

Question 2

The final step in the planning process of an organization is to determine the organization's mission and goals.

Accepted Answer

The first step is determining the organization's mission and goals.

Question 3

The second and intermediate step in an organization's planning process, which is also called strategy formulation, is to analyze the current situation and develop a strategy.

Accepted Answer

The second step in the planning process is formulating strategy. Managers analyze the organization's current situation and then conceive and develop the strategies necessary to attain the organization's mission and goals.

Question 4

According to Henri Fayol, unity means that managers need to make every attempt to collect and use all available information in the planning process.

Accepted Answer

According to Henri Fayol, accuracy means that managers need to make every attempt to collect and use all available information in the planning process.

Question 5

According to Henri Fayol, continuity means that planning is an ongoing process in which managers build and refine previous plans and continually modify plans at all levels so they fit together into one broad framework.

Accepted Answer

According to Henri Fayol, the originator of the model of management, continuity means that planning is an ongoing process in which managers build and refine previous plans and continually modify plans at all levels so they fit together into one broad framework.

Question 6

Standing plans are useful in situations that are unusual or situations that are one-of-a-kind.

Accepted Answer

Standing plans are used in situations in which programmed decision making is appropriate.

Question 7

Programs and projects are examples of standing plans.

Accepted Answer

Examples of single-use plans include programs, which are integrated sets of plans for achieving certain goals, and projects, which are specific action plans created to complete various aspects of a program.

Question 8

Planning is important for an organization since a plan can be used as a device for controlling managers within an organization.

Accepted Answer

A plan can be used as a device for controlling managers within an organization. A good plan specifies not only which goals and strategies the organization is committed to but also who bears the responsibility for putting the strategies into action to attain the goals. When managers know they will be held accountable for attaining a goal, they are motivated to do their best to make sure the goal is achieved.

Question 9

In a typical organization, corporate-level planning is the primary responsibility of divisional heads.

Accepted Answer

In general, corporate-level planning and strategy are the primary responsibility of top or corporate managers.

Question 10

The mission statements of organizations in the same market will typically be the same.

Accepted Answer

A mission statement is a broad declaration of an organization's overriding purpose, what it is seeking to achieve from its activities. This statement also identifies what is unique or important about its products to its employees and customers. Finally, it distinguishes or differentiates the organization in some ways from its competitors.

Question 11

Single-use plans are intended to be used primarily in nonprogrammed decision making in unusual situations.

Accepted Answer

Single-use plans are developed to handle nonprogrammed decision making in unusual or one-of-a-kind situations.

Question 12

A business-level plan details the short-term divisional goals that will allow the division to meet corporate goals.

Accepted Answer

The business-level plan details the long-term divisional goals that will allow the division to meet corporate goals.

Question 13

Implementing is a process managers use to identify and select appropriate goals and courses of action for an organization.

Accepted Answer

Planning is a process managers use to identify and select appropriate goals and courses of action for an organization.

Question 14

Functional goals and strategies should be independent of divisional and corporate goals and strategies.

Accepted Answer

Functional goals and strategies should be consistent with divisional goals and strategies, which, in turn, should be consistent with corporate goals and strategies.

Question 15

A business plan that is updated every year, depending on the changes in the organization and in the external environment that have taken place in the previous year, is known as a rolling plan.

Accepted Answer

A rolling plan is a plan that is updated and amended every year to take account of changing conditions in the external environment.

Question 16

A specific action plan created to complete various aspects of a program is called a project.

Accepted Answer

Projects are specific action plans created to complete various aspects of a program.

Question 17

The divisional head of an organization decides to set up the division's technical support center in another country in order to lower costs. This is an example of a functional-level strategy.

Accepted Answer

Business-level strategy is a plan that indicates how a division intends to compete against its rivals in an industry. By lowering the cost of support, it can hope to gain an advantage against its competitors.

Question 18

Corporate-, business-, and functional-level plans can all be applied over the same time horizon.

Accepted Answer

Plans differ in their time horizons, the periods of time over which they are intended to apply or endure.

Question 19

Scenario planning is also known as contingency planning.

Accepted Answer

Scenario planning (also known as contingency planning) is the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions.

Question 20

A written set of instructions that describes the series of actions that a manager should take in a specific situation is called the standing operating procedure (SOP) of an organization.

Accepted Answer

A policy is a general guide to action; a rule is a formal, written guide to action; and a standing operating procedure is a written instruction describing the exact series of actions that should be followed in a specific situation.

Quiz 8: The Manager As a Planner and a Strategist