Question 1

Instead of creating detailed strategic plans,the leaders of market-based companies (companies that respond quickly to environmental changes)set flexible directions so as to allow for change and seize opportunities when they come.

Accepted Answer

Market-based companies typically operate in dynamic and competitive environments, where conditions can change rapidly. As such, it may be more effective for their leaders to set flexible directions that can be adjusted as circumstances evolve, rather than to create rigid strategic plans that may become outdated quickly. This approach allows companies to be more agile and responsive to opportunities and threats as they arise.

Question 2

Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.

Accepted Answer

Brainstorming is a technique where the goal is to come up with as many ideas as possible without judgment or censorship. The point is to encourage creativity and collaboration, and to build on each other's ideas.

Question 3

Strategic planning determines the major goals of the organization.

Accepted Answer

Strategic planning helps to determine the major goals, objectives, and initiatives of an organization. It is a comprehensive process that involves analyzing the current situation, understanding the external environment and setting a direction for the future.

Question 4

Managers or teams of managers at the lower levels of an organization normally develop strategic plans,but top managers do most of the tactical planning.

Accepted Answer

The statement is reversed. Managers or teams of managers at the lower levels of an organization normally develop tactical plans, but top managers do most of the strategic planning.

Question 5

Planning is a continuous process.

Accepted Answer

Planning is an ongoing process that requires review, evaluation, and adjustment as circumstances change. It is not a one-time event or a static set of actions. It involves a cycle of identifying goals, establishing objectives, developing strategies, implementing plans, measuring progress, and making adjustments as needed.

Question 6

Continuous planning is not necessary,because plans that worked well in the past are likely to continue to work well in the future.

Accepted Answer

Continuous planning is necessary because the environment is constantly changing and what worked well in the past may not work well in the future. It is important to regularly review and adapt plans to ensure they are still effective.

Question 7

One example of tactical planning is setting annual budgets and deciding on other details and activities necessary to meet the strategic objectives.

Accepted Answer

Tactical planning involves setting specific goals, timelines, budgets, and activities to achieve the overall strategic objectives. Setting annual budgets is one example of tactical planning.

Question 8

One step in the rational decision-making model is to develop alternatives.

Accepted Answer

Developing alternatives is a key step in the rational decision-making model. It involves brainstorming and considering all possible options before making a decision.

Question 9

Operational planning looks at the organization as a whole,while strategic planning focuses on specific departmental actions.

Accepted Answer

Operational planning focuses on specific departmental actions while strategic planning looks at the organization as a whole and its overall direction.

Question 10

An analysis of the business environment helps managers identify threats and opportunities that face their firm.

Accepted Answer

An analysis of the business environment helps managers to understand the external factors affecting their firm which may create threats or opportunities.

Question 11

Tactical planning deals with setting long-range goals,while strategic planning develops the specific strategies needed to achieve the organization's operational goals.

Accepted Answer

The statement is reversed. Strategic planning deals with setting long-range goals, while tactical planning develops the specific strategies needed to achieve the organization's operational goals.

Question 12

Decision-making occurs in all management functions.

Accepted Answer

Decision-making is a fundamental activity in all management functions related to planning, organizing, directing, and controlling.

Question 13

Many cities and businesses are now developing contingency plans to respond to potential terrorist attacks.

Accepted Answer

This statement is true. With the increased threat of terrorist attacks in recent years, cities and businesses have recognized the importance of having a plan in place to respond to such an event. These plans often include protocols for evacuation, communication, and security measures.

Question 14

The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

Accepted Answer

The last step in the rational decision-making model is to evaluate the decision and follow up to determine whether it was a good one or not. This step is necessary to learn from the decision-making process and make improvements in the future.

Question 15

Problem-solving is more formal than using the rational decision-making model.

Accepted Answer

The rational decision-making model is a formal approach to problem-solving that involves gathering information, analyzing options, and making a decision based on logic and reason. Therefore, problem-solving using the rational decision-making model is a formal process.

Question 16

Strategic planning is now much easier than it used to be because managers have access to very reliable computerized forecasting tools.

Accepted Answer

While computerized forecasting tools have certainly improved strategic planning, it is important to remember that they are not foolproof and require proper interpretation and analysis by skilled managers. Additionally, external factors such as economic conditions, consumer behavior, and industry disruptors can still have a significant impact on the effectiveness of strategic planning.

Question 17

Today's business environment changes so rapidly that strategic planning is becoming more difficult and subject to change.

Accepted Answer

The statement is true. The pace of change in today's business environment is so quick that strategic planning needs to be continually reassessed and adjusted.

Question 18

Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.

Accepted Answer

Contingency planning is all about preparing for the unexpected and having backup plans in place to deal with any unforeseen circumstances. It involves developing alternative strategies and tactics that can be activated if the initial plans don't work out as intended. This allows organizations to quickly adapt to changing situations and minimize the negative impact of any disruptions or setbacks that might occur.

Question 19

The first step in the rational decision-making model is to identify alternative solutions.

Accepted Answer

The first step in the rational decision-making model is to identify the problem or opportunity, not alternative solutions.

Question 20

The SWOT analysis helps firms identify competitive threats and market opportunities.

Accepted Answer

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. By analyzing these four factors, firms can identify external opportunities and threats that may affect their competitiveness in the market.

Quiz 7: Management and Leadership