Question 1

Another name for contingency planning is _____.
A) single-use planning
B) ad-hoc planning
C) business planning
D) divisional-level planning
E) scenario planning

Accepted Answer

Contingency planning is also known as scenario planning, which involves developing alternative strategies to address potential future events or unforeseen circumstances that may impact an organization. It is a proactive approach to risk management that helps organizations prepare for and respond to unexpected situations. The other options listed do not accurately describe contingency planning.

Question 2

There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customers tastes. This is called _____.
A) ultracompetition
B) hypocompetition
C) supercompetition
D) hypercompetition
E) extracompetition

Accepted Answer

The term that describes the intense and never-ending competition between firms in the telecommunications industry, driven by the rapid advancements in technology and varying customer preferences, is known as hypercompetition. Therefore, option D is the correct choice.

Question 3

An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a(n) _____.
A) differentiation strategy
B) low-cost strategy
C) diversification strategy
D) stuck-in-the-middle strategy
E) association strategy

Accepted Answer

A differentiation strategy involves creating a unique product that stands out from the competition, thus making it more appealing to customers. This can include factors such as product design, features, and marketing tactics that highlight the unique aspects of the product. By focusing on differentiation, the organization can attract customers who are looking for something unique and stand out in the marketplace.

Question 4

A firm has a formal, written guide regarding its zero-tolerance attitude towards sexual harassment and the consequences of its violation. By definition, this is a _____ of the firm.
A) standing plan
B) mission statement
C) policy
D) rule
E) norm

Accepted Answer

The answer of A firm has a formal, written guide...

Question 5

Which of the following will most likely be an opportunity according to an organization's SWOT analysis?
A) The company can probably takeover one of its bankrupt competitors.
B) The sales of the organization's products are the highest in the industry.
C) The organization is growing rapidly without any direction.
D) The government has passed a law which will increase labor costs.
E) The organization faces increased competition in its market.

Accepted Answer

The opportunity is that the organization can probably takeover one of its bankrupt competitors, which can help the organization expand its market share and eliminate competition.

Question 6

Though not formally written, an organization allows its employees to dress casually on Fridays. This is a(n) _____ of the organization.
A) policy
B) rule
C) standard operating procedure
D) standing plan
E) ethical code

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.

Question 7

In performing a SWOT analysis, a furniture company realized that the number of competing firms in its industry was increasing. The company would classify this as a(n) _____.
A) strength
B) weakness
C) opportunity
D) threat
E) advantage

Accepted Answer

The increase in the number of competing firms is a threat for the furniture company because it means that there is more competition in the market which can affect the company's market share, profitability, and customer base.

Question 8

As a part of its yearly planning activities, PDQ Financial Services, generates a list of possible future scenarios and creates a plan to respond to each of these forecasts. PDQ Financial Services is practicing _____.
A) single-use planning
B) ad-hoc planning
C) divisional-level planning
D) contingency planning
E) functional planning

Accepted Answer

PDQ Financial Services is practicing contingency planning, which involves developing a plan to respond to possible future events or circumstances. The company is generating a list of possible scenarios and creating a plan for each one, in order to have a plan in place in case any of these events actually occur.

Question 9

Policies, rules, and standard operating procedures (SOPs) are all types of _____ plans.
A) single-use
B) functional
C) rolling
D) standing
E) scenario

Accepted Answer

Policies, rules, and SOPs are all types of standing plans. Standing plans are designed to be used repeatedly, for example, rules and policies are used to provide guidance to employees to manage their daily tasks.

Question 10

A furniture company is trying to keep the costs of the company low by switching its suppliers and ordering materials in larger quantities in order to reduce overall costs. The company is employing a _____.
A) focused differentiation strategy
B) low-cost strategy
C) high-cost strategy
D) unifying strategy
E) hypercompetition strategy

Accepted Answer

The furniture company is employing a low-cost strategy by trying to reduce overall costs through switching suppliers and ordering materials in larger quantities. This strategy focuses on keeping costs low in order to offer products at a lower price than competitors, appealing to price-sensitive consumers.

Question 11

To determine an organization's missions and goals, managers must first _____.
A) perform a SWOT analysis
B) apply the Five Forces Model
C) define its business
D) develop a long-term plan
E) develop a short-term plan

Accepted Answer

Defining the organization's business is an essential step in determining its missions and goals. This involves identifying the products or services the organization provides, as well as its target customers and markets. Once the business is clearly defined, managers can then establish missions and goals that align with the organization's purpose and objectives. SWOT analysis, the Five Forces Model, and long-term and short-term planning may be used as tools to aid in this process, but they are not the initial step in determining missions and goals.

Question 12

A written set of instructions which describes the series of actions that a manager should take in a specific situation is known as a:
A) policy.
B) standard operating procedure.
C) heuristic.
D) rolling plan.
E) rule.

Accepted Answer

A standard operating procedure (SOP) is a detailed set of instructions that specify how to complete a task, process, or procedure. SOPs guide managers in making consistent and informed decisions in a specific situation, ensuring that they follow established best practices and meet organizational goals. Policies, rules, and rolling plans are broader in scope and are often applied across a range of situations, whereas heuristics are informal methods or rules of thumb used to simplify complex decisions.

Question 13

In the Five Forces Model, the _____ that companies compete against one another for customers, the _____ the level of profits is likely to be for that industry.
A) more; lower
B) more; higher
C) less; lower
D) less; equal
E) more; equal

Accepted Answer

The more companies compete against one another for customers, the higher the level of rivalry and competition in the industry, which puts downward pressure on prices and ultimately lowers profits.

Question 14

Employees tend to be motivated and perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essentials for top managers to develop a strong sense of _____.
A) goal orientation
B) strategic leadership
C) strategy formulation
D) business planning
E) organizational affluence

Accepted Answer

Strategic leadership refers to the ability of top management to develop and communicate a clear and compelling vision and direction for the organization, which can motivate employees and help them to perform better. Therefore, developing a strong sense of strategic leadership is important for top managers to inspire their employees and achieve organizational goals.

Question 15

In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as a(n) _____.
A) strength
B) weakness
C) opportunity
D) threat
E) advantage

Accepted Answer

The fact that the managers are untrained to handle the requirements of the new division is a weakness for the firm, as it means that they may not be able to effectively manage and lead the division to success.

Question 16

A standing plan that acts as a general guide to action that applies to the employees of an organization is called a _____.
A) belief
B) rule
C) policy
D) standard operating procedure
E) scenario

Accepted Answer

A policy is a standing plan that provides a general guide to action for employees. Beliefs and scenarios are not necessarily specific plans of action, while rules and standard operating procedures are more specific than policies.

Question 17

According to an organization's SWOT analysis, which of the following would be a potential strength?
A) The organization has the potential to break the barriers of entry to a new market.
B) The organization has the highest profit margin in its market.
C) The organization's research and development sector is on the decline.
D) The organization's customer preferences are rapidly changing.
E) There is a lack of co-operation between the organization's various divisions.

Accepted Answer

The highest profit margin in the market indicates that the organization is performing well financially and has a competitive advantage over its rivals, which is a potential strength. The other options do not indicate a potential strength. A indicates potential but is not specific to the organization, C indicates a weakness, D indicates a threat, and E indicates a weakness in internal operations.

Question 18

Which of the following can be defined a threat according to the five forces model?
A) The level of rivalry among organizations in an industry is low
B) Brand loyalty is very high
C) Large number of suppliers
D) Only a few large customers are available to buy an industry's output
E) Products are unique and cannot be substituted

Accepted Answer

In the five forces model, the bargaining power of buyers is one of the five factors that determine the intensity of competition in an industry. When there are only a few large customers available to buy an industry's output, they can exert significant bargaining power, which can threaten the profitability of the industry.

Question 19

A group of managers analyze both, the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this?
A) Mission analysis
B) SWOT analysis
C) Functional analysis
D) Diversification analysis
E) Competition analysis

Accepted Answer

The described analysis involves assessing both internal strengths and weaknesses (the "S" and "W" in SWOT), as well as external opportunities and threats (the "O" and "T" in SWOT), making it a SWOT analysis.

Question 20

The pharmaceutical industry is extremely dynamic. A company that releases a product to the general public with the intention of keeping prices high may see quick competition arising from other products made from different compounds that perform the same functions as the company's product. According to the five forces model, this type of threat is called _____.
A) the level of rivalry among organizations in an industry
B) the potential for entry into an industry
C) the power of large suppliers
D) the power of large customers
E) the threat of substitute products

Accepted Answer

The threat of substitute products refers to the potential for other products to emerge that can perform the same function as the original product. In the pharmaceutical industry, this is a significant threat as there are often many different compounds that can be used to treat the same condition. A company that releases a product at a high price may quickly see competition from other similar products made from different compounds.

Quiz 8: The Manager As a Planner and a Strategist

Another name for contingency planning is _____.

There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customers tastes. This is called _____.

An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a(n) _____.

A firm has a formal, written guide regarding its zero-tolerance attitude towards sexual harassment and the consequences of its violation. By definition, this is a _____ of the firm.

Which of the following will most likely be an opportunity according to an organization's SWOT analysis?

Though not formally written, an organization allows its employees to dress casually on Fridays. This is a(n) _____ of the organization.

In performing a SWOT analysis, a furniture company realized that the number of competing firms in its industry was increasing. The company would classify this as a(n) _____.

As a part of its yearly planning activities, PDQ Financial Services, generates a list of possible future scenarios and creates a plan to respond to each of these forecasts. PDQ Financial Services is practicing _____.

Policies, rules, and standard operating procedures (SOPs) are all types of _____ plans.

A furniture company is trying to keep the costs of the company low by switching its suppliers and ordering materials in larger quantities in order to reduce overall costs. The company is employing a _____.

To determine an organization's missions and goals, managers must first _____.

A written set of instructions which describes the series of actions that a manager should take in a specific situation is known as a:

In the Five Forces Model, the _ that companies compete against one another for customers, the _ the level of profits is likely to be for that industry.

Employees tend to be motivated and perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essentials for top managers to develop a strong sense of _____.

In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as a(n) _____.

A standing plan that acts as a general guide to action that applies to the employees of an organization is called a _____.

According to an organization's SWOT analysis, which of the following would be a potential strength?

Which of the following can be defined a threat according to the five forces model?

A group of managers analyze both, the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this?