Question 1

The purpose of the marketing plan that is included within a business plan is to ________.

Accepted Answer

The marketing plan describes the features of a firm's product or service.

Question 2

The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage.In which step of the strategic management process is the sales director involved?

Accepted Answer

The sales director is involved in translating the mission into strategic goals, as they are calculating revenue targets and determining the number of new content providers needed to maintain a competitive advantage. This is part of the process of developing specific, measurable goals that will help achieve the overall mission of the business.

Question 3

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.

Accepted Answer

A strategy is a course of action that a firm can pursue to achieve its strategic aims. A vision is a statement about what a company wants to achieve in the future, a goal is a specific target that a company wants to achieve, a tactic is a specific action or approach used to achieve a goal, and a mission is a statement about the purpose or reason for a company's existence.

Question 4

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.

Accepted Answer

The definition given in the sentence matches with the concept of a mission statement. It explains the reason for the existence of the California Energy Commission and the approach that the organization takes to achieve its objectives.

Question 5

What is the first step in the management planning process?

Accepted Answer

The first step in the management planning process is setting an objective. This involves identifying what the organization wants to achieve and setting specific, measurable goals to work towards. Without a clear objective, the planning process cannot begin.

Question 6

Which of the following is the primary benefit of MBO?

Accepted Answer

The primary benefit of MBO (Management by Objectives) is that it is an effective method for determining the relationship between an employee's goals and the goals of supervisors and subordinates. MBO is a goal-oriented approach that aligns the objectives of the individual with the goals of the organization, thereby improving communication, job satisfaction, and productivity. Feedback from customers or employee participation are not the primary benefits of MBO.

Question 7

SMART goals set by managers are ________.

Accepted Answer

SMART goals set by managers are specific, measurable, attainable, relevant, and timely. This acronym is a common framework for setting effective goals that are achievable, trackable, and aligned with organizational objectives. Option A, B, C, and D do not accurately represent the elements of SMART goals.

Question 8

Which of the following provides a comprehensive view of both a firm's current situation and its goals for the next 3 to 5 years?

Accepted Answer

A business plan provides a comprehensive view of a firm's current situation and outlines its goals and strategies for the next 3 to 5 years. It includes information on the company's products or services, target market, competition, financial projections, and operations plan. A SWOT analysis evaluates a company's strengths, weaknesses, opportunities, and threats but may not provide a comprehensive view of the company's goals and plans. A value proposition focuses on the unique value a company offers to its customers. A financial plan outlines the financial goals and strategies of the company. An operations plan outlines the day-to-day activities and processes that are necessary to run the business.

Question 9

Raj and his manager meet for lunch to jointly set Raj's quarterly sales goals.Raj's manager will periodically assess the progress Raj makes towards those goals.Raj and his manager are most likely participating in ________.

Accepted Answer

Raj and his manager are participating in management by objectives (MBO), a goal-setting process that entails collaboration between the employee and the manager to establish specific, measurable, achievable, relevant, and time-bound (SMART) objectives. This process allows for periodic assessment of progress towards achieving those objectives. Therefore, option C is the best choice. Strategic planning initiatives (option A) involve developing a long-term plan for achieving an organization's objectives, while corporate-level strategizing (option B) entails developing strategies for a company's business units. Human resource arbitration (option D) involves resolving disputes between employees and the management. Job instruction training (option E) involves training employees on how to perform specific tasks effectively. None of these options describe what Raj and his manager are doing together.

Question 10

All of the following are steps involved in the strategic management process EXCEPT ________.

Accepted Answer

Offshoring low-skill jobs is not a step involved in the strategic management process. The other choices (A-D) are all steps involved in strategic management.

Question 11

Which of the following provides a summary of a firm's intended direction and shows,in broad terms,"what we want to become"?

Accepted Answer

A vision statement provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become." A mission statement outlines the purpose of the organization, a strategic plan outlines the steps the organization will take to achieve its goals, a code of ethics outlines the values and principles the organization will follow, and a marketing plan outlines how the organization will promote its products or services.

Question 12

Since most well-run firms utilize a hierarchy of goals to guide major decisions,________ is especially important to managers at every level to prevent departments from working at cross-purposes.

Accepted Answer

Strategic planning involves setting clear, overarching goals for the organization that can be broken down into smaller goals for different departments and levels of management. This helps ensure that everyone is working towards the same objectives and prevents departments from working at cross-purposes. Financial auditing, employee testing, benchmarking, and personnel training are all important activities, but they do not necessarily directly address the issue of setting and aligning goals.

Question 13

What is the first step in the strategic management process?

Accepted Answer

The first step in the strategic management process is defining the current business, which involves understanding the organization's current position and purpose.

Question 14

The main contents of a typical business plan include all of the following EXCEPT ________.

Accepted Answer

A political forecast is not typically included in a business plan, as it is not directly relevant to the operations and goals of the business. The other options listed (business description, marketing plan, financial plan, and personnel plan) are all important components of a business plan.

Question 15

In order to implement a marketing plan,Apple needs a(n)________ that will address its productive assets like the factories,machines,and facilities required to manufacture and distribute its popular iPods.

Accepted Answer

An operations plan addresses the productive assets and processes required to manufacture and distribute a product. A balance sheet provides a snapshot of a company's assets, liabilities, and equity at a given point in time but does not offer a detailed plan for operations. A pricing strategy and income statement relate more to revenue and profit goals than to operations. A personnel plan addresses staffing needs and is not directly related to productive assets.

Question 16

A(n)________ is a firm's method for matching its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage.

Accepted Answer

The answer of A(n)________ is a firm's method for matching...

Question 17

Strategic planning primarily benefits a firm's managers by ________.

Accepted Answer

Strategic planning establishes goals that the firm wants to achieve, which helps managers to focus their efforts and allocate resources effectively. It is not primarily focused on outlining firing procedures, creating hierarchies, or clarifying the supply chain network. While input from employees can be important in the strategic planning process, the primary beneficiaries are the managers who use the plan to guide their decision-making.

Question 18

The primary tool used by managers who are performing external and internal audits as part of the strategic management process is the ________.

Accepted Answer

SWOT chart is the primary tool used by managers who are performing external and internal audits as part of the strategic management process. SWOT analysis is a simple yet powerful tool that helps in identifying the strengths, weaknesses, opportunities, and threats of an organization. By identifying these factors, managers can develop strategies to leverage the organization's strengths, mitigate its weaknesses, capitalize on opportunities, and avoid or overcome threats. The other options listed are tools used in strategic analysis and not specifically for audits.

Question 19

Which of the following is the most significant difference between managerial planning and the basic planning process?

Accepted Answer

The most significant difference between managerial planning and the basic planning process is the interference from corporate hierarchies. Managerial planning takes into account the input and preferences of higher-level executives and stakeholders, which can affect the planning process and the final outcome. In contrast, the basic planning process follows a more straightforward approach with fewer external influences. The other options are all important components of the planning process, but they are not the most significant difference between managerial planning and the basic planning process.

Question 20

Which of the following is a simple guide used to compile relevant information about economic,competitive,and political trends that may affect a firm?

Accepted Answer

An environmental scanning worksheet is a simple guide used to compile relevant information about economic, competitive, and political trends that may affect a firm. An organization chart is a diagram that illustrates the structure of an organization, a workforce requirement matrix is a table that outlines the staffing needs of an organization, an external resource system table is a tool used to identify and evaluate external resources, and a potential globalization network is a hypothetical network of international business relationships. None of these options are specifically designed for environmental scanning.

Quiz 3: The Manager's Role in Strategic Human Resource Management