Exam 3: Foundations of Planning

Porter's three competitive strategies are cost- leadership, price- leadership, and niche.

Strategy formulation involves ___________ .

The objectives in MBO should be concise statements of financial accomplishments.

Application of MBO Kay was excited. She had just returned from a manager's retreat where MBO had been discussed. This had never been used in her organization before, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who vaguely remembered having heard of the program several years earlier. Kay looked over the handout she had received. She was still somewhat confused on who was to choose the goals for the employees. However, she knew that the goals once chosen needed to be specific and have explicit time periods attached. Even though there was a lot of work to do in order to implement the program, Kay was excited. She knew this would prove to be beneficial to the organization. -Who should develop the employee goals for the MBO program?

Application of Porter's Competitive Strategy Stacie sighed. Her general manager had just left after giving her the latest assignment- readdress the competitive advantage of their company. By Friday's meeting, Stacie was to have developed three differing strategies the business could use in order to maintain its competitive advantage. Its computer business was slowly losing market share to its competitors, and everyone realized something needed to be done. Stacie glanced through the article by Michael Porter that her manager had left with her. According to Porter, there were three differing types of strategies they could choose from. Stacie began wondering if there was a way they could make their computers cheaper, which would allow them to then sell at a lower price. If they could reduce price by $100 a machine, they would be the industry leaders in price. Stacie wondered if they could find any lower- priced suppliers for the more expensive parts of their computers. She knew that their computers appealed particularly to small business owners due in part to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines, but did contain the necessary word processing, database, and spreadsheet capabilities necessary for a typical small business owner. The lack of frills with the solid three program capabilities, plus their known reputation for quality had worked for them in the past. Stacie wondered if perhaps they needed to look at a smaller segment of the market, maybe small businesses with large accounts receivables that would fully utilize their specific database. She knew that would cut their market by 1/8 but maybe achieving a definite market niche would help. Stacie began compiling her report for Friday's meeting. -Stacie knew that in order to keep its competitive advantage, her company would have to do which of the following?

In informal planning, the organization's objectives are written down and communicated to employees.

In environmental SWOT analysis, the external organizational position is analyzed according to its

Application of SWOT Analysis Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report. -The fact that sales are up 10% industry- wide because women are buying more cosmetics would be which of the following?

Planning is exactly what is needed in order to more effectively manage a chaotic environment.

Application of SWOT Analysis Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report. -In formulating the company's report which analysis of the following would be included in an environmental scan?

The quality philosophy that focuses on the input side of the production process is

There are many healthcare products manufacturers. Forrest Labs Drug Company manufactures only personal hygiene products. It markets such products deodorant, body powder, body creams, and exfoliates. Because it only stocks body care and personal hygiene products, it is using a(n)___________ strategy.

The fact that The Nordstrom Company has a very strong culture that embraces service and customer satisfaction makes it also difficult to create change; this is an example of the fact that culture can be ___________ .

The owner of a chain of supermarkets sets a goal of opening up ten new stores in new locations within the next six years. This is a___________ plan?

A candy store that places its expensive chocolates only in fine hotels and restaurants frequented by the very rich is using which of the following competitive advantage strategies?

Discuss the difference between strategy formulation and implementation.

Explain benchmarking, ISO 9000, and six sigma.

Standing plans are flexible plans, with clearly defined objectives and that leave no room for misinterpretation.

Discuss two benefits of planning and two arguments against formal planning in an organization.

___________ plans are differentiated by their breadth.