Question 1

A written explanation of an organization's business intentions and aims is called a(n) ______.
A) SWOT analysis
B) strategy for competitive differentiation
C) objective
D) mission statement

Accepted Answer

A mission statement is a written statement that outlines an organization's business intentions and aims. It typically defines the company's purpose, values, and overall strategy. A SWOT analysis is a tool used to assess an organization's strengths, weaknesses, opportunities, and threats. A strategy for competitive differentiation is a plan for how a company will set itself apart from competitors. An objective is a specific goal that an organization wants to achieve.

Question 2

Decisions involving simple, common, frequently occurring problems for which solutions have already been determined are ______ decisions.
A) creative
B) standard
C) programmed
D) strategic

Accepted Answer

Programmed decisions involve routine, repetitive problems that have established solutions. These decisions can be made quickly and efficiently without much thought.

Question 3

Julian owns a bread company and is creating a SWOT analysis to see where he can make improvements and increase sales. All of the following are threats to the success of his company EXCEPT ______.
A) economies of scale
B) downturn in the economy
C) regulatory changes
D) enhanced competition

Accepted Answer

Economies of scale refer to the cost advantages that large companies have over smaller ones. While this could potentially create a disadvantage for Julian's smaller bread company, it is not a threat in the traditional sense as it is not an external factor that could harm the company's success. The other options - a downturn in the economy, regulatory changes, and enhanced competition - are all threats to the success of Julian's bread company.

Question 4

Nearly a week before Hurricane Katrina reached New Orleans, Home Depot began moving trucks and supplies into position, as specified in the company's ______ plan.
A) tactical
B) strategic
C) operational
D) contingency

Accepted Answer

A contingency plan is specifically designed to address potential disasters or emergencies, and Home Depot's actions suggest that they were implementing such a plan in preparation for Hurricane Katrina. Tactical plans involve the specific actions and decisions made to achieve goals, while strategic plans are the overall plans for an organization's long-term success. Operational plans are focused on how day-to-day activities are structured and managed.

Question 5

What is the first step in the strategic planning process?
A) Create a mission statement.
B) Monitor and adapt plans.
C) Assess competitive position.
D) Develop strategies for reaching objectives.

Accepted Answer

The first step in the strategic planning process is to create a mission statement that outlines the organization's purpose and objectives. This statement sets the foundation for all future strategic planning efforts.

Question 6

Which managers typically implement a strategy?
A) middle managers
B) top managers
C) executive
D) senior

Accepted Answer

The answer of Which managers typically implement a strategy?
A) middle...

Question 7

A home furnishing store issued a recall notice about a vase that easily cracks. Before the notice was publicly issued, the company had assembled a crisis management team to enact a(n) ______ plan.
A) tactical
B) contingency
C) strategic
D) operational

Accepted Answer

A contingency plan is developed to prepare for and respond to unforeseen events or emergencies. The situation described in the question, where a recall notice is necessary due to product defects, would qualify as an emergency or an unforeseen event. Therefore, a contingency plan would be the most suitable option. Tactical plans are specific actions or short-term steps taken to achieve a larger strategic goal, while operational plans involve day-to-day activities and ongoing processes. Strategic plans are long-term plans developed to achieve overarching organizational objectives. None of these options are as appropriate in this situation as a contingency plan.

Question 8

When Capital One Financial utilized its extensive database to customize its credit card operation, the company was in the ______ phase of planning.
A) monitoring
B) implementation
C) decision making
D) vision

Accepted Answer

Utilizing the company's extensive database to customize its credit card operation implies that the decision has already been made, and the company is currently implementing the plan, making option B (implementation) the appropriate phase of planning. Option A (monitoring) is incorrect because monitoring occurs after implementation to evaluate the success of the plan. Option C (decision making) is incorrect because the decision to customize the credit card operation had already been made. Option D (vision) is incorrect because it refers to the initial stage of planning where the organization identifies its goals and objectives.

Question 9

Serguis is a member of his firm's strategic planning team. He has identified several untapped markets that exist in other countries. His observation should be listed as a(n) ______.
A) opportunity
B) weakness
C) strength
D) threat

Accepted Answer

Serguis' identification of untapped markets in other countries presents an opportunity for the firm to expand and grow its business.

Question 10

A primary ______ of eBay is being the world's largest online auction site.
A) mission statement
B) vision
C) competitive differentiation
D) objective

Accepted Answer

A competitive differentiation is a unique feature or benefit of a product or service that sets it apart from competitors. In this case, being the world's largest online auction site is eBay's competitive differentiation. The other options are not relevant to describing eBay's position as an online auction site.

Question 11

Top management usually spends the majority of time on ______ plans.
A) tactical
B) contingency
C) strategic
D) operational

Accepted Answer

Top management is responsible for creating and implementing strategic plans, which involves setting long-term goals and objectives for the organization. Tactical and operational plans are usually handled by middle and lower-level managers, while contingency plans are developed to address emergency situations.

Question 12

Targets by which managers define the organization's desired performance are called ______.
A) objectives
B) missions
C) opportunities
D) standards

Accepted Answer

Objectives are specific, measurable, and time-bound performance targets that an organization sets for itself. They enable managers to outline the direction of the organization and provide a focus for decision-making and resource allocation. Missions refer to the overall purpose of an organization, while opportunities relate to potential avenues for growth or improvement. Standards may be used to measure performance against pre-determined benchmarks or quality levels, but they are not typically the targets that managers use to define desired performance.

Question 13

McDonald's has decided to add a pork sandwich to its menu. This is an example of a ______.
A) contingency plan
B) line organization
C) nonprogrammed decision
D) programmed decision

Accepted Answer

A nonprogrammed decision is a decision that is unique and requires a custom solution, such as adding a new product to a menu.

Question 14

Tactical planning is primarily the responsibility of ______.
A) top managers
B) middle managers
C) supervisory managers
D) the CEO

Accepted Answer

Tactical planning is the process of determining the specific actions steps needed to achieve a company's strategic goals and objectives. This type of planning typically involves middle-level managers who have the responsibility for implementing the strategic plans and achieving the operational objectives of the organization. Top managers are responsible for developing a company's overall strategy, while supervisory managers are responsible for day-to-day operations. The CEO may be involved in tactical planning, but it is typically delegated to other managers.

Question 15

Morgan is the manager of a local Circuit City and has put up signs promoting the store's weekly sale products. Morgan's assignment would be classified as a ______.
A) programmed decision
B) nonprogrammed decision
C) span of management
D) matrix

Accepted Answer

Morgan's assignment is a programmed decision as it is a routine task based on established procedures and policies.

Question 16

By using a(n) ______, Starbucks addressed the threat of fluctuating consumer trends by offering a variety of beverages and merchandise beyond coffee.
A) mission statement
B) contingency plan
C) matrix
D) SWOT analysis

Accepted Answer

SWOT analysis is a strategic planning tool that helps organizations identify their strengths, weaknesses, opportunities, and threats. By using a SWOT analysis, Starbucks was able to identify the threat of fluctuating consumer trends and develop a plan to address it by offering a variety of beverages and merchandise beyond coffee.

Question 17

Mario is part of a strategic planning team. He has identified that his company is the low-cost producer in its industry. This should be listed on a SWOT analysis as a(n) ______.
A) opportunity
B) weaknesses
C) strength
D) threat

Accepted Answer

The fact that the company is the low-cost producer is a strength, as it gives them a competitive advantage in the industry.

Question 18

Via Rail Canada has plans in place to reroute trains in the event that floods or other natural disasters close some of the railroad's tracks. This is an example of ______ planning.
A) contingency
B) tactical
C) strategic
D) operational

Accepted Answer

Contingency planning involves developing alternative plans in case the original plan cannot be implemented due to unforeseen circumstances, such as natural disasters. In this case, Via Rail Canada has plans to reroute trains in the event that floods or other natural disasters close some of the railroad's tracks, indicating that they have contingency plans in place.

Question 19

Which of the following is made up primarily of external factors?
A) strengths
B) threats
C) mission statement
D) weaknesses

Accepted Answer

Threats are external factors that cannot be controlled by the organization, such as changes in the market or increased competition. Strengths and weaknesses are internal factors, and the mission statement is a statement of the organization's purpose and goals.

Question 20

ABC Corp. has established a discount schedule for large-volume clients. This ______ will allow managers to devote more time to complex issues.
A) increased sales volume
B) nonprogrammed decision
C) increased profit margin
D) programmed decision

Accepted Answer

The establishment of a discount schedule for large-volume clients is a programmed decision, as it is a routine decision that can be made using a predetermined set of rules or guidelines. This decision is likely to increase sales volume and profit margin for the company, which could ultimately free up managers' time to focus on more complex issues.

Quiz 7: Management, Leadership, and the Internal Organization

A written explanation of an organization's business intentions and aims is called a(n) ______.

Decisions involving simple, common, frequently occurring problems for which solutions have already been determined are ______ decisions.

Julian owns a bread company and is creating a SWOT analysis to see where he can make improvements and increase sales. All of the following are threats to the success of his company EXCEPT ______.

Nearly a week before Hurricane Katrina reached New Orleans, Home Depot began moving trucks and supplies into position, as specified in the company's ______ plan.

What is the first step in the strategic planning process?

Which managers typically implement a strategy?

A home furnishing store issued a recall notice about a vase that easily cracks. Before the notice was publicly issued, the company had assembled a crisis management team to enact a(n) ______ plan.

When Capital One Financial utilized its extensive database to customize its credit card operation, the company was in the ______ phase of planning.

Serguis is a member of his firm's strategic planning team. He has identified several untapped markets that exist in other countries. His observation should be listed as a(n) ______.

A primary ______ of eBay is being the world's largest online auction site.

Top management usually spends the majority of time on ______ plans.

Targets by which managers define the organization's desired performance are called ______.

McDonald's has decided to add a pork sandwich to its menu. This is an example of a ______.

Tactical planning is primarily the responsibility of ______.

Morgan is the manager of a local Circuit City and has put up signs promoting the store's weekly sale products. Morgan's assignment would be classified as a ______.

By using a(n) ______, Starbucks addressed the threat of fluctuating consumer trends by offering a variety of beverages and merchandise beyond coffee.

Mario is part of a strategic planning team. He has identified that his company is the low-cost producer in its industry. This should be listed on a SWOT analysis as a(n) ______.

Via Rail Canada has plans in place to reroute trains in the event that floods or other natural disasters close some of the railroad's tracks. This is an example of ______ planning.

Which of the following is made up primarily of external factors?

ABC Corp. has established a discount schedule for large-volume clients. This ______ will allow managers to devote more time to complex issues.