Question 1

When a firm responds to uncertainty in its environment as a(n) ________, its continual pursuit of product and market innovation may lead to a loss of efficiency, but is likely to make competitors nervous.

Accepted Answer

Prospectors focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen.The continual product and market innovation has a price: Such companies may suffer a loss of efficiency.Nevertheless, their focus on change can put fear in the hearts of competitors.

Question 2

Because of the frequency with which world competition and information technology alter marketplace conditions, a company's ________ may have to be done closer to every 1 or 2 years than every 5.

Accepted Answer

Strategic planning determines what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available.Today, because of the frequency with which world competition and information technology alter marketplace conditions, a company's strategic planning may have to be done closer to every 1 or 2 years than every 5.

Question 3

At which level of planning must managers be paying attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions?

Accepted Answer

The level of planning that requires managers to pay attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions is strategic planning. Strategic planning involves setting the overall direction and goals for the organization and considering external factors such as market trends, competition, and changes in technology, politics, and the economy. Tactical planning, front-line planning, and operational planning all focus on implementing and executing specific plans and actions to achieve the organization's goals, whereas strategic planning takes a broader, longer-term perspective.

Question 4

A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n)

Accepted Answer

Defenders are expert at producing and selling narrowly defined products or services.They do not tend to seek opportunities outside their present markets.

Question 5

Which of the following is one of the challenges of planning?

Accepted Answer

Planning requires you to set aside time to do it, and it will require your time and some of your subordinates'.

Question 6

The adaptive cycle portrays businesses as continuously cycling through three kinds of business decisions: entrepreneurial, ______, and administrative.

Accepted Answer

Miles and Snow introduced the idea of the adaptive cycle, which portrays businesses as continuously cycling through decisions about three kinds of business problems: (1) entrepreneurial (selecting and making adjustments of products and markets), (2) engineering, and (3) administrative (establishing roles, relationships, and organizational processes).

Question 7

Hilton Hotel's statement expressing its purpose as "to fill the earth with the light and warmth of hospitality" is a(n)

Accepted Answer

A mission statement expresses the purpose of the organization.The mission statement for Hilton Hotels, a large company, reads: "To fill the earth with the light and warmth of hospitality."

Question 8

Which of the following is a benefit of planning?

Accepted Answer

There are four benefits to planning: (1) planning helps you check on your progress.(2) Planning helps you coordinate activities.(3) Planning helps you think ahead.(4) Planning helps you cope with uncertainty.

Question 9

The statement which expresses the purpose of an organization is called a(n)

Accepted Answer

A mission statement expresses the purpose of the organization.

Question 10

McKesson Corp., a U.S.pharmaceutical distributor, has a(n) ________ statement, which is "to provide comprehensive pharmacy solutions that improve productivity, profitability and result in superior patient care and satisfaction."

Accepted Answer

A mission statement expresses the purpose of the organization.Whether the organization is for-profit or nonprofit, the mission statement identifies the goods or services the organization provides and will provide.Sometimes it also gives the reasons for providing them (to make a profit or to achieve humanitarian goals, for example).

Question 11

A company producing cameras and video cameras prefers to focus its resources on a fast imitation program to reverse-engineer new features from competitors and add those, rather than implementing truly inventive features.Miles and Snow would call this company a(n)

Accepted Answer

Analyzers take a "me too" response to the world.Analyzers let other organizations take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best.

Question 12

If you do not have all of the information for a complete plan, you should

Accepted Answer

A plan need not be perfect to be executable.While you shouldn't shoot from the hip in making decisions, often you may have to "go with what you've got" and make a decision based on a plan that is perhaps only three-quarters complete.

Question 13

Which level of management is most often engaged in tactical planning?

Accepted Answer

The strategic priorities and policies are then passed down to middle managers, who must do tactical planning.

Question 14

If a business lacks insight or fails to use the adaptive cycle properly, it is likely to be which of the following?

Accepted Answer

As one scholar points out, "With enough cycles and insight, a given business becomes a very good, comprehensively aligned Prospector, Analyzer, or Defender.If a business lacks insight, or if it fails to take advantage of alignment opportunities afforded by the adaptive cycle, it will be an incongruent, poorly performing Reactor."

Question 15

In the current broadband environment, consumers are able to download products like music, movies, and books.Netflix was aggressive in taking advantage of this fact, offering web streaming and game console access to its customers before competitors.According to Miles and Snow, Netflix would be a(n)

Accepted Answer

A company described as "aggressive" is often a Prospector organization.Prospectors focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen.

Question 16

Which of the following is the correct order of planning steps within an organization?

Accepted Answer

The correct order is to first establish the mission and vision statements, then conduct strategic planning, followed by tactical planning, and finally operational planning.

Question 17

Avon, the world's leading direct seller of beauty products, has a(n) ________ statement, which is "to be the company that best understands and satisfies the product, service, and self-fulfillment needs of women globally."

Accepted Answer

A vision statement expresses what the organization should become, where it wants to go strategically.

Question 18

Which of the following is one of the organizational responses organizations make when confronted with uncertainty, as identified by Miles and Snow?

Accepted Answer

According to Miles and Snow's typology, organizations respond to uncertainty as either reactors, defenders, prospectors, or analyzers. Reactors are characterized by a lack of consistent strategy and response to environmental changes, often reacting after the fact.

Question 19

Which of the following comes LAST when an organization makes a plan?

Accepted Answer

Operational planning comes last as it involves the detailed, short-term processes and procedures for achieving the strategic and tactical plans.

Question 20

There are three levels of planning.Their order, from first to last, is

Accepted Answer

The order of planning is strategic, then tactical, and then operational.

Quiz 5: Planning: the Foundation of Successful Management