Question 1

Which of the following terms refers to a unit's continuing purpose,or reason for being?

Accepted Answer

A)The first step in the strategic planning process is to determine the corporate mission.The mission is a unit's continuing purpose,or reason for being.The corporate mission is the sum total of the organization's ongoing purpose.

Question 2

Which of the following serves as the basis for the strategic planning process?

Accepted Answer

A)The strategic planning process is basically a derivative of the SWOT (strengths,weaknesses,opportunities,and threats)framework that affects organizational performance,but it is less structured.Strategic planning involves determining the firm's mission,assessing the firm's structure,setting objectives,and developing strategies.

Question 3

Two fundamental business strategies are ________.

Accepted Answer

C)There are two fundamental strategies: lowest cost and differentiation.Lowest-cost strategy focuses on gaining competitive advantage by being the lowest-cost producer of a product or service within the marketplace,while selling the product or service at a price advantage relative to the industry average.Companies adopt differentiation strategies to develop products or services that are unique from those of their competitors.Differentiation strategy can take many forms,including design or brand image,technology,features,customer service,and price.Differentiation strategies lead to competitive advantage through building brand loyalty among devoted consumers.

Question 4

Which of the following is NOT a characteristic of an objective?

Accepted Answer

B)Objectives are desired end results and they typically have four characteristics.They should be expressed in writing,be measurable,be specific as to time,and be challenging but attainable.People and organizations have different objectives,so they are not universal.

Question 5

Strategic planning at all levels of the organization can be divided into four steps: (1)determination of the organizational mission,(2)assessment of the organization and its environment,(3)setting of specific objectives or direction,and (4)determination of strategies to accomplish those objectives.

Accepted Answer

Strategic planning is the process by which top management determines overall organizational purposes and objectives and how they are achieved.Strategic planning is ongoing as firms seek a competitive advantage through these four steps.

Question 6

How have HR executives taken a greater strategic role in organizations?

Accepted Answer

D)HR executives are now focusing their attention on how HR can help the organization achieve its strategic objectives.Thus,HR executives are highly involved in the strategic planning process.In the past they often waited until the strategic plan was formulated before beginning strategic planning,which is the process by which top management determines overall organizational purposes and objectives and how they are achieved.

Question 7

The owners of a start-up company are in the process of developing a corporate mission statement.Which of the following questions is LEAST likely to help them create an effective mission statement?

Accepted Answer

B)The corporate mission is the sum total of the organization's ongoing purpose.Arriving at a mission statement should involve answering the questions: What are we in management attempting to do for whom? Should we maximize profit so shareholders will receive higher dividends or so share price will increase? Or should we emphasize stability of earnings so employees will remain secure? Threats to the firm's success are addressed later in the strategic planning process.

Question 8

In strategic planning,the purpose of a SWOT analysis is to assess the organization's ________.

Accepted Answer

D)Once the mission has been determined,the organization should assess its strengths and weaknesses in the internal environment and the threats and opportunities from the external environment (often referred as a SWOT analysis).Making strategic plans involves information flows from both the internal and the external environments.

Question 9

Brand loyalty is most characteristic of which competitive strategy?

Accepted Answer

A)Companies adopt differentiation strategies to develop products or services that are unique from those of their competitors.Differentiation strategy can take many forms,including design or brand image,technology,features,customer service,and price.Differentiation strategies lead to competitive advantage through building brand loyalty among devoted consumers.

Question 10

The mission of a firm involves determining the principles on which management decisions will be based.

Accepted Answer

The corporate mission is the sum total of the organization's ongoing purpose.Mission determination also requires deciding on the principles on which management decisions will be based.Will the corporation be honorable or dishonorable,ruthless or considerate,devious or forthright,in dealing with its various constituents.

Question 11

Which of the following is NOT a step in the strategic planning process?

Accepted Answer

B)Strategic planning at all levels of the organization can be divided into four steps: (1)determination of the organizational mission,(2)assessment of the organization and its environment,(3)setting of specific objectives or direction,and (4)determination of strategies to accomplish those objectives.The strategic planning process described here is basically a derivative of the SWOT (strengths,weaknesses,opportunities,and threats)framework that affects organizational performance,but it is less structured.Assessing financial outlays is important to the success of a firm but does not relate to strategic planning.

Question 12

What is the first step in the strategic planning process?

Accepted Answer

D)Strategic planning at all levels of the organization can be divided into four steps: (1)determination of the organizational mission,(2)assessment of the organization and its environment,(3)setting of specific objectives or direction,and (4)determination of strategies to accomplish those objectives.

Question 13

Compared with lowest-cost strategies,successful attainment of differentiation strategies depends on ________.

Accepted Answer

D)For the lowest-cost strategy,the imperative is to reduce output costs per employee.The desired employee roles for attaining a lowest-cost strategy include repetitive and predictable behaviors,a relatively short-term focus,primarily autonomous or individual activity,high concern for quantity of output,and a primary concern for results.The key employees' roles for differentiation strategies include highly creative behavior,a relatively long-term focus,cooperative and interdependent behavior,and a greater degree of risk taking.Compared with lowest-cost strategies,successful attainment of differentiation strategies depends on employee creativity,openness to novel work approaches,and willingness to take risks.In addition,differentiation strategies require longer time frames to provide sufficient opportunity to yield the benefits of these behaviors.

Question 14

What is the process called by which top management determines overall organizational purposes and objectives and how they are to be achieved?

Accepted Answer

C)Strategic planning is the process by which top management determines overall organizational purposes and objectives and how they are achieved.It is an ongoing process that quickly changes in order to gain a competitive advantage.

Question 15

Which of the following should most likely be accomplished before setting an objective?

Accepted Answer

A)Objectives should be developed only after a cost-benefit analysis of each alternative is considered.Strategic objectives might be directed at factors such as profitability,customer satisfaction,financial returns,technological leadership,and operating efficiency.

Question 16

Which of the following is NOT a time when job analysis is performed?

Accepted Answer

D)Job analysis is performed on three occasions: (1)when the organization is founded and a job analysis program is initiated for the first time; (2)when new jobs are created; and (3)when jobs are changed significantly as a result of new technologies,methods,procedures,or systems.Job analysis is less likely to be performed when a company experiences lower sales.

Question 17

What is the desired end result of any activity called?

Accepted Answer

C)Objectives are desired end results and they typically have four characteristics.They should be expressed in writing,be measurable,be specific as to time,and be challenging but attainable.

Question 18

The marketing department at ABC Widget Company has been assigned the task of developing a strategic plan.The marketing team has completed the first three steps of strategic planning.Which of the following steps does the marketing department need to take in order to complete the strategic planning assignment?

Accepted Answer

A)Strategic planning at all levels of the organization can be divided into four steps: (1)determination of the organizational mission,(2)assessment of the organization and its environment,(3)setting of specific objectives or direction,and (4)determination of strategies to accomplish those objectives.

Question 19

Which is a true statement about price premiums for differentiated products?

Accepted Answer

A)Companies adopt differentiation strategies to develop products or services that are unique from those of their competitors.Differentiation strategy can take many forms,including design or brand image,technology,features,customer service,and price.Differentiation strategies lead to competitive advantage through building brand loyalty among devoted consumers.Brand-loyal consumers are less sensitive to price increases,which enables companies to invest in R&D initiatives to further differentiate themselves from competing companies.

Question 20

What primarily determines which type of organizational structure is best for a company?

Accepted Answer

B)A company's organizational structure (illustrated by its organizational chart)is determined by the needs of the firm.It may be informal and highly changeable in small,uncomplicated businesses.By contrast,large,diverse,and complex organizations usually have a highly formalized structure.

Quiz 4: Strategic Planning, Human Resource Planning, and Job Analysis