Question 1

The process of identifying the specific procedures and processes required at lower levels of an organization is known as:

Accepted Answer

Operational planning identifies the specific procedures and processes required at lower levels of an organization.Frontline managers usually focus on routine tasks such as production runs,delivery schedules,and human resource requirements.

Question 2

Stacy,a manager of a women's fashion magazine company,is in the process of launching a new Spring-Summer edition.For research purposes,she analyzed the past and present conditions of the market and also forecasted future trends.Which of the following steps of the formal planning process has Stacy performed?

Accepted Answer

A situational analysis is a process planners use,within time and resource constraints,to gather,interpret,and summarize all information relevant to the planning issue under consideration.A thorough situational analysis studies past events,examines current conditions,and attempts to forecast future trends.

Question 3

The level of planning that involves the least amount of details is:

Accepted Answer

Goals and plans become more specific and involve shorter periods of time as they move from the strategic level to the tactical level and then to the operational level.The level of planning that involves the least amount of details is strategic planning.

Question 4

Who is responsible for an organization's strategic plan?

Accepted Answer

Senior executives are responsible for the development and execution of the strategic plan,although they usually do not formulate or implement the entire plan personally.

Question 5

Once managers have selected goals and plans,they are required to:

Accepted Answer

Once managers have selected the goals and plans,they must implement the plans designed to achieve the goals.Even the best plans are useless if they are not implemented properly.

Question 6

Once alternative goals and plans have been identified,the next step in the formal planning process is:

Accepted Answer

After identifying alternatives,goal and plan evaluation happens,in which managers evaluate the advantages,disadvantages,and potential effects of each alternative goal and plan.

Question 7

In the _____ stage of the formal planning process,managers should pay careful attention to the cost of any initiative and the investment return that is likely to result.

Accepted Answer

In goal and plan evaluation,managers will evaluate the advantages,disadvantages,and potential effects of each alternative goal and plan.They must prioritize those goals and even eliminate some of them.In particular,they will pay a great deal of attention to the cost of any initiative and the investment return that is likely to result.

Question 8

Jupiter Dollar Mart plans to open five new stores before 2015.However,if the economy does not improve,and if consumer confidence does not rise as hoped,it might open just two stores.This backup plan is an example of a:

Accepted Answer

Contingency plans might be referred to as "what if" plans.They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Question 9

Which of the following statements is true about goal and plan selection?

Accepted Answer

Once managers have assessed the various goals and plans,they will select the one that is most appropriate and feasible.Experienced judgment always plays an important role in this process.

Question 10

_____ planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of an organization.

Accepted Answer

Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of an organization,often a functional area like marketing or human resources.

Question 11

Strategic goals are:

Accepted Answer

Strategic goals are major targets or end results that relate to the long-term survival,value,and growth of an organization.Strategic managers (top-level managers)usually establish goals that reflect both effectiveness (providing appropriate outputs)and efficiency (a high ratio of outputs to inputs).

Question 12

The actions or means managers intend to use to achieve organizational goals are called:

Accepted Answer

Plans are the actions or means a manager intends to use to achieve goals.At a minimum,planning should outline alternative actions that may lead to the attainment of each goal,the resources required to reach the goal through those means,and the obstacles that may develop.

Question 13

To be effective,goals should have certain qualities,which can be easily remembered with the acronym SMART:

Accepted Answer

Goals are the targets or ends the manager wants to reach.To be effective,goals should have certain qualities,which are easy to remember with the acronym SMART: specific,measurable,attainable,relevant,and time-based.

Question 14

A(n)_____ is a pattern of actions and resource allocations designed to achieve goals of an organization.

Accepted Answer

A strategy is a pattern of actions and resource allocations designed to achieve the goals of an organization.An effective strategy provides a basis for answering broad questions about how the organization will meet its objectives.

Question 15

Which of the following is true of a contingency plan?

Accepted Answer

Contingency plans include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.Most major corporations now have contingency plans in place to respond to a major disaster.

Question 16

The three levels of planning are:

Accepted Answer

Because planning is an important management function,managers at all three levels-top-level (strategic)managers,middle-level (tactical)managers,and frontline (operational)managers-use it.However,the scope and activities of the planning process at each level of the organization often differ.

Question 17

The managers at Andover & Associates determine that several options being considered as plans for new product introduction appear to have better projected outcomes for market share growth-one of their high-priority goals.In which of the following stages of the formal planning processes is Andover involved?

Accepted Answer

In goal and plan evaluation,managers will evaluate the advantages,disadvantages,and potential effects of each alternative goal and plan.Managers will consider carefully the implications of alternative plans for meeting high-priority goals.

Question 18

Which of the following steps in the formal planning process helps managers know if their plan is working?

Accepted Answer

Although it is sometimes ignored,the sixth step in the formal planning process,monitoring and controlling,is essential.Without it,managers will never know whether their plan is succeeding.

Question 19

Which of the following best describes contingency plans?

Accepted Answer

Some plans,called contingency plans,might be referred to as "what if" plans.They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Question 20

A set of procedures for making decisions about an organization's long-term goals and strategies is known as:

Accepted Answer

Strategic planning involves making decisions about an organization's long-term goals and strategies.Strategic plans have a strong external orientation and cover major portions of the organization.

Quiz 4: Planning and Strategic Management