Deck 4: Planning and Strategic Management

Question 1

The steps followed during formal planning are similar to which of the following?

A)the building of a persuasive argument
B)the process of hiring a new employee
C)the evaluation of a work of art
D)the basic decision-making process
E)the brainstorming process

Answer 1

D

Question 2

Lynda Fletcher, CEO of Southern Water Supply, Inc., told her management team, "As you know, it's been a challenging year. I have decided to instate our contingency plan, because

A)our company's initial plans have not worked out well."
B)our success exceeds all expectations."
C)our internal environment needs to be shaken up."
D)our external environment is extremely stable."
E)our internal and external environments are similar."

Answer 2

A

Question 3

Rabia is developing contingency plans for her catering business. In other words, she is developing

A)the long-term direction and strategic intent of her company.
B)a set of broad goals and plans that can be turned into specific goals and plans.
C)a set of specific processes required at lower levels of an organization.
D)her organization's basic scope and purpose of operations.
E)a set of actions to be taken if events require a sudden change.

Answer 3

E

Question 4

Perfect Pasta plans to open five new stores before 2018. However, if the economy does not improve and if consumer confidence does not rise as hoped, it might open just two stores. This backup plan is an example of a(n)________ plan.

A)dominant
B)strategic
C)contingency
D)emergency
E)tactical

Question 5

The strategic management process begins with the analysis of internal strengths and weaknesses.

Question 6

Which of the following is the first step in a formal planning process?

A)goal and plan evaluation
B)situational analysis
C)monitor and control
D)implementation
E)alternative goals and plans

Question 7

A strategic control system must simultaneously pursue both efficiency and flexibility.

Question 8

A situational analysis should focus on which of the following?

A)the internal forces at work within the organization or work unit
B)only the influences from the external environment
C)both the internal forces in the organization and influences from the external environment
D)future contingencies that are not yet part of the internal or external environments
E)past internal forces and future external influences

Question 9

Juanita, a manager of a glassware company, is in the process of deciding what items to add to next year's line of merchandise. For research purposes, she analyzed the past and present conditions of the market and also forecasted future trends. Which of the following steps of the formal planning process has Juanita performed?

A)goal and plan evaluation
B)situational analysis
C)monitor and control
D)implementation
E)alternative goals and plans

Question 10

________ is the conscious, systematic process of making decisions about goals and activities that a person, group, work unit, or organization will pursue in the future.

A)Buffering
B)Benchmarking
C)Budgeting
D)Planning
E)Forecasting

Question 11

A corporate strategy is defined as the major actions by which a business competes in a particular industry or market.

Question 12

Philippe wants to make sure of the success of his new doggy day care, PAWS, by employing the steps in the basic planning process. To initiate the process, what kinds of activities should we expect Philippe to be performing?

A)collecting data about competition, his financial position, and needs of local dog owners
B)generating alternative plans in case he finds out that this business isn't viable after all
C)evaluating the potential advantages and disadvantages of generating alternative plans
D)selecting the strongest goals based on the financial position of the dog care competition
E)implementing the plans designed to achieve the goal of the doggy day care's success

Question 13

If resources are difficult to imitate, they provide a source of competitive advantage.

Question 14

In planning, the goal is to come up with a clear and ________ map to follow in future activities.

A)rigid
B)flexible
C)casual
D)routine
E)traditional

Question 15

The actions or means managers intend to use to achieve organizational goals are called

A)visions.
B)scenarios.
C)benchmarks.
D)plans.
E)missions.

Question 16

Once a situational analysis has been completed, the next step for organizations is to use what they have learned to

A)generate a single, main goal for the organization to reach by year's end.
B)take simple, meaningful, attractive, resourceful, and tactical actions.
C)create alternative goals and alternative actions for attaining each goal.
D)select and implement the best plan that will help them achieve their goal.
E)create a budget that they can use to monitor and control their plans.

Question 17

A thorough environmental analysis includes a macroeconomic analysis.

Question 18

In an environmental analysis, opportunities and threats are completely separate, unrelated things.

Question 19

Which of the following is a step in the formal planning process that involves studying past events, examining current conditions, and forecasting future trends?

A)situational analysis
B)alternative goals and plans
C)goal and plan evaluation
D)goal and plan selection
E)monitor and control

Question 20

Contingency plans include sets of actions to be taken when

A)a company's initial plans have not worked out well.
B)a company's growth exceeds all expectations.
C)the internal environment needs to be shaken up.
D)the external environment is extremely stable.
E)the internal and external environments are similar.

Question 21

A(n)________ is a pattern of actions and resource allocations designed to achieve the goals of an organization.

A)vision
B)tactical plan
C)operational plan
D)strategy
E)scenario

Question 22

Glen is in charge of the purchasing department at his company. He needs to translate the broad strategy of increasing company profits by 5 percent into specific goals and plans that are relevant to his department. What type of planning must Glen do?

A)operational
B)tactical
C)traditional
D)contingency
E)strategic

Question 23

Greta takes pride in her ability to make decisions that shape corporate strategy, even though top executives probably do not realize it. Nonetheless, she knows that her primary focus is managing routine tasks associated with her operational plan, e.g., managing inventory, collecting customer feedback, developing delivery schedules, and supervising her employees. Greta is probably a(n)

A)middle-level manager.
B)frontline manager.
C)operational manager.
D)top-level manager.
E)strategic manager.

Question 24

The three levels of planning coordinate with the three levels of

A)competition.
B)stakeholders.
C)profit.
D)production.
E)management.

Question 25

Which of the following statements is true about goal and plan selection?

A)Goal selection requires exclusive reliance on experienced judgment.
B)Experienced judgment is not needed in goal and plan selection.
C)Benchmarking should be done during goal and plan selection.
D)Selection takes place immediately after generating alternate goals.
E)Managers select goals and plans that are appropriate and feasible.

Question 26

Once alternative goals and plans have been identified, the next step in the formal planning process is

A)situational analysis.
B)goal and plan evaluation.
C)implementation.
D)monitor and control.
E)goal and plan selection.

Question 27

In the ________ stage of the formal planning process, managers should pay careful attention to the cost of any initiative and the investment return that is likely to result.

A)goal and plan evaluation
B)goal and plan selection
C)implementation
D)monitor and control
E)situational analysis

Question 28

The process of identifying the specific procedures and processes required at lower levels of an organization is known as

A)strategic planning.
B)operational planning.
C)tactical planning.
D)contingency planning.
E)divisional planning.

Question 29

The managers at Foolproof Fabricators believe that several of the product ideas being considered have the potential of becoming iconic brands that will distinguish Foolproof from its competitors, which is one of their high-priority goals. In which of the following stages of the formal planning processes is Foolproof involved?

A)goal and plan selection
B)implementation
C)monitor and control
D)alternative goals and plans
E)goal and plan evaluation

Question 30

A clear and concise expression of what an organization does, whom it does it for, its basic goods or services, and its values is known as its

A)vision.
B)mission.
C)objective.
D)policy.
E)business definition.

Question 31

"I was surprised to find our corporate strategic plan to be so broad and general," said Carlos to his manager, who replied, "That's because, compared to tactical planning, strategic planning

A)never involves the input of tactical managers."
B)focuses only on internal issues."
C)is never an ongoing activity."
D)tends to involve much less detail."
E)focuses on the near-term (<1 year)business environment."

Question 32

The managers of Synergy Software have decided on their goals for the next two years. Their next step is to

A)perform a situational analysis.
B)find alternative goals and plans.
C)implement the designed plans.
D)prepare a strategic map.
E)forecast future trends.

Question 33

A set of procedures for making decisions about an organization's long-term goals and strategies is known as

A)environmental scanning.
B)strategic maneuvering.
C)strategic planning.
D)tactical planning.
E)operational planning.

Question 34

Operational planning is done by ________ managers.

A)frontline
B)strategic
C)tactical
D)top-level
E)middle

Question 35

Bill Wessels has reviewed the strategic plan from corporate headquarters and is considering how to develop an annual business plan for his business unit that fulfills its part of the strategic plan. Bill is probably a(n)

A)middle-level manager.
B)frontline manager.
C)operational manager.
D)top-level manager.
E)strategic manager.

Question 36

Which of the following is a component of the strategic management process?

A)conceptualization
B)cost competitiveness
C)strategy implementation
D)emotional intelligence
E)strategic maneuvering

Question 37

Who is responsible for an organization's strategic plan?

A)senior executives
B)middle management
C)frontline supervisors
D)tactical managers
E)operational managers

Question 38

Which of the following is true of a contingency plan?

A)It primarily translates broad goals into specific ones.
B)It serves as an alternative when the initial plan fails to work.
C)It is normally used in stable environmental conditions.
D)It is seldom used by corporations to respond to major disasters.
E)It is sometimes referred to as a "why not" plan.

Question 39

Which of the following steps in the formal planning process helps managers know if their plan is working?

A)goal and plan evaluation
B)situational analysis
C)monitor and control
D)implementation
E)alternative goals and plans

Question 40

Strategic goals are

A)efforts and actions that are focused solely on maintaining competitiveness.
B)major targets related to the long-term survival, value, and growth of an organization.
C)efforts and actions that are focused solely on achieving diversification.
D)patterns of actions and resource allocation designed to solve immediate problems.
E)narratives that describe a particular set of future conditions to be planned for.

Question 41

Which of the following statements about planning is accurate?

A)Operational plans may have a time horizon of a year or two, whereas tactical plans may cover a period of months.
B)Tactical plans may have a time horizon of a year or two, whereas operational plans may cover a period of months.
C)Tactical plans may have a time horizon of a year or two, whereas strategic plans may cover a period of months.
D)Strategic plans may have a time horizon of a year or two, whereas operational plans may cover a period of months.
E)Strategic plans may have a time horizon of a year or two, whereas tactical plans may cover a period of months.

Question 42

United Power Resources Corporation acquired multiple electric utility companies and is now a major provider of electrical power in the southwestern portion of the United States. After careful deliberation, the executive team of United Power developed and released the corporation's mission statement:

A)"Aspiring for $100B in Revenues"
B)"Safety and Ethical Behavior: Keys to Success"
C)"Today the Southwest; Tomorrow the World"
D)"We Aim for 100% Renewable Power by 2050"
E)"We Power the Southwest"

Question 43

"To better align our strategic and operational goals, we will develop a strategy map," said Romero Ruiz, CEO of International Logistics. "The strategy map will address the four key drivers of our long-term success-that is, our balanced scorecard-and emphasize our employees' roles in these four areas:

A)customer goals, internal goals, macroenvironment goals, and learning and growth goals."
B)financial goals, competitor goals, internal goals, and learning and growth goals."
C)customer goals, competitor goals, internal goals, and learning and growth goals."
D)financial goals, customer goals, contingency goals, and learning and growth goals."
E)financial goals, customer goals, internal goals, and learning and growth goals."

Question 44

"To fly what others only imagine" is an example of a

A)strategic vision statement.
B)mission statement.
C)low-cost strategy.
D)scenario.
E)domain selection.

Question 45

Which of the following best describes strategic vision?

A)the procedures for turning broad goals into specific goals
B)a narrative that describes a particular set of future conditions
C)a set of practices aimed at harnessing an organization's intellectual resources
D)the long-term direction and strategic intent of a company
E)the action by which a business competes in a particular industry

Question 46

Operational planning identifies the specific procedures and processes required ________ of an organization.

A)by the external relationships
B)by the internal structure
C)at the lower levels
D)at the middle levels
E)at the upper levels

Question 47

Which of the following statements about tactical planning is true?

A)Tactical plans have a medium-time horizon and contain a medium level of detail.
B)Tactical plans have a short-time horizon and contain a medium level of detail.
C)Tactical plans have a short-time horizon and contain a low level of detail.
D)Tactical plans have a medium-time horizon and contain a high level of detail.
E)Tactical plans have a long-time horizon and contain a high level of detail.

Question 48

Dirk Watson, Chairman of the Board of Global Electronics, Inc., called the CEO, "Bob, I have reviewed the draft strategic plan. I believe that it effectively answers several broad questions about how Global will meet its objectives. However, one question does not fit, and I would like you to revise the strategic plan to remove it. Specifically, the strategic plan is not where we want to address

A)'Where will we be active?'"
B)'How will we get there?'"
C)'How will we win in the market?'"
D)'How will we upgrade our accounting system next year?'"
E)'How will we obtain financial returns?'"

Question 49

Which of the following is included in the strategic management process?

A)employee interviews and performance reviews
B)SWOT analysis and strategy formulation
C)analysis of internal opportunities and threats
D)analysis of external strengths and weaknesses
E)strategic review and evaluation

Question 50

The senior managers of Bronson Forge Corporation knew that a successful implementation of their business plan in the coming year was critical to the company's survival in a competitive industry. Bronson Forge could not afford for different parts of the organization to "stray" from the plan; in fact, each organizational unit needed to perform in sync with the goals of the unit above it and the units below it. Thus, it was critical that the individual plans of the corporation, each division, each department, and each section be

A)aligned.
B)independent.
C)mutually nonexclusive.
D)diverse.
E)provisional.

Question 51

Which of the following does environmental analysis examine?

A)competitors
B)board of directors
C)organizational climate
D)organizational culture
E)social capital

Question 52

Which of the following is a major component of an internal analysis?

A)marketing audits
B)political activity
C)competitor analysis
D)industry growth
E)social issues

Question 53

Blue Rock Lake, a large manmade reservoir, has provided the benefits of flood control, recreation, and water supply for decades. The government agency responsible for the reservoir has decided to permanently lower the water level by 10 feet for safety reasons-so that a lesser volume of water applies force to the aging dam that creates the reservoir. Bob Stone, general manager of the agency, knows that this decision will be controversial. He directs his communications director, Jill Johnson, to invite stakeholders to a series of "town hall" meetings. Jill has developed a list of stakeholders, including

A)affected landowners, state university representatives, water sports enthusiasts, and local water utilities.
B)affected landowners, regional health care organizations, water sports enthusiasts, and local water utilities.
C)affected landowners, water sports enthusiasts, air/railroad transportation interests, and local water utilities.
D)affected landowners, water sports enthusiasts, businesses dependent upon the reservoir, and local water utilities.
E)affected landowners, federal immigration authorities, businesses dependent upon the reservoir, and local water utilities.

Question 54

The CEO of On Time Shipping has set major profit and expansion targets for the organization to achieve in the next five to ten years. What are these targets an example of?

A)short-term strategies
B)long-term problems
C)tactical issues
D)mid-level targets
E)strategic goals

Question 55

Which of the following is true of an effective vision statement?

A)It clearly describes an organization as it currently operates.
B)It inspires the members of an organization.
C)It is an estimation of the profits of an organization.
D)It clarifies the short-term direction of a company.
E)It is a statement strictly based on financial targets.

Question 56

Manuela, a cosmetics manufacturer, is expanding her business into more eco-friendly products. Manuela's company's new eco-friendly lipstick formula tends to stick and break when being removed from traditional lipstick molds, so she plans to hire an engineer to create new molds that make it easier to remove the lipstick once it is set. Assuming she is moving to a level of planning involving greater detail, what should Manuela's next step be?

A)to direct floor managers to create specific procedures for the workers in charge of lipstick so they can properly remove the set lipstick and clean the molds
B)to work with executives to identify the specific procedures and processes required to create the new lipstick molds and market them appropriately to the public
C)to direct mid-level managers to focus on production runs and delivery schedules for the new lipstick molds and to find a way to repurpose the old molds
D)to direct mid-level managers to develop a strategic plan for the long-term manufacturing and distribution of the new lipstick molds
E)to direct floor managers to match the company's resources to opportunities that would allow them to branch out into other areas of the eco-friendly market

Question 57

Which of the following statements about missions and strategic visions is true?

A)The mission details the organization's ongoing purpose, while the strategic vision focuses on the future.
B)The mission and strategic vision of an organization are essentially the same thing, but the mission is more formal.
C)The mission and strategic vision of an organization both evolve from its short-term tactical goals.
D)The mission of an organization focuses on long-term goals, while the strategic vision focuses on short-term goals.
E)The mission of an organization has very little in common with its strategic vision.

Question 58

Which of the following is one of the four key drivers of a firm's long-term success?

A)the effectiveness of its internal processes
B)the quality of its relationships with stakeholders
C)the ability to keep its employees
D)a stable and affordable supply chain
E)a willingness to cut corners when necessary

Question 59

Prior to doing a remodel to increase the size of her bakery products store, Ming wants to conduct an analysis to help her decide on the viability of the expansion. Ming has discovered that a competing bakery in the same neighborhood is going out of business. She also finds that, due to a downturn in the real estate market, many of the neighborhood's wealthier residents are moving to a more affluent part of town. Based on your knowledge of environmental factors, which of the following conclusions should Ming derive from this information?

A)The closure of the competing bakery demonstrates a lack of interest in bakery products by current residents, so their migration will have an overall positive impact on Ming's business.
B)The closure of the competing bakery and the demographic changes will have little to no impact on Ming's business and should not affect her decision to expand.
C)The changing demographics of the neighborhood and the closure of the competing bakery will have an overall negative impact on Ming's business.
D)The closure of the competing bakery increases Ming's market share, but the demographic changes might result in decreased sales due to residents having less expendable income.
E)The closure of the competing bakery will most likely make the residents of the neighborhood decide to purchase their bakery products at the nearby supermarket.

Question 60

Strategic goals should

A)focus on specifying and clarifying the organization's core capabilities.
B)be written in such a way that focuses on the roles of suppliers and customers.
C)be based on the tactical plans formulated by the organization.
D)be accessible to everyone who comes in contact with the organization.
E)reflect the varied views of the organization's stakeholders.

Question 61

Which type of diversification involves moving into businesses that are related to the company's original core business?

A)concentric
B)conglomerate
C)vertical
D)functional
E)horizontal

Question 62

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities is called a ________ strategy.

A)concentration
B)vertical integration
C)concentric diversification
D)conglomerate diversification
E)differentiation

Question 63

"Karen, we must use others' technologies-even our competitors' technologies-if they are better suited to our needs than our own technologies," said her manager, Krystal Lowe. "I know that we are hesitant to use technologies from elsewhere, when we have invested so much internally to develop our own technologies." Krystal is advising that Karen not succumb to

A)NIH (not invented here)syndrome.
B)NSN (never say never)syndrome.
C)NIMBY (not in my backyard)syndrome.
D)NOMW (not on my watch)syndrome.
E)Stockholm syndrome.

Question 64

Joe Snyder is owner and general manager of Joe's Seafood, a regional seafood restaurant chain. Joe told his store managers in their annual planning retreat, "We know seafood. We've been a prosperous business for 20 years. Growth projections for our industry are rosy, and I'd like to take advantage of our expertise and positioning. Beginning next year, we will introduce a broader range of seafood to our menu, to appeal to those diners with luxury tastes." Based on the given information, Joe is proposing a(n)

A)conglomerate diversification strategy.
B)differentiation strategy.
C)vertical integration strategy.
D)concentration strategy.
E)lateral diversification strategy.

Question 65

How would a firm's highly regarded brand be listed in a typical SWOT analysis?

A)as a strength
B)as a weakness
C)as an opportunity
D)as a threat
E)as a tactic

Question 66

Raja, the CEO of Perfect Paper Products, Inc., wants to perform an assessment of the company and research ways to improve profitability. First, Raja determines that while Perfect Paper Products has skilled, dedicated workers and ample space in their production facility, the company's manufacturing equipment is inefficient and prone to breaking down. What is another step Raj might take if his focus is on the first two letters of a SWOT analysis?

A)He could compare Perfect Paper Products' marketing efforts to those of its competitor, Ace Paper.
B)He could contrast the employee retention rate of Perfect Paper Products with that of Ace Paper.
C)He could research and compare product quality between Perfect Paper Products and Ace Paper.
D)He could assess Perfect Paper Products' procedures in light of efficiency and manufacturing costs.
E)He could research environmental trends that might impact paper production and respond to them.

Question 67

Which of the following corporate strategies is being employed when a large grocery store purchases a dairy farm to supply all of the store-brand milk, yogurt, butter, and cheese?

A)differentiation strategy
B)conglomerate diversification
C)vertical integration
D)low-cost strategy
E)functional strategy

Question 68

Cyd viewed her staff as a competitive advantage. They had the necessary academic degrees, the necessary experience, and competitive salaries. Miranda, her division manager, said, "Cyd, until you have staff with rare and valuable academic research experience and corresponding degrees, and with talents that are world-class and in extremely high demand by your clients, such that they are willing to pay top dollar for that talent, your staff do not represent a competitive advantage. Your staff are too ________ by your competitors."

A)expensive to be recruited
B)academic to be desired
C)hard to replicate
D)easy to imitate
E)experienced to be sought

Question 69

A ________ strategy focuses on a single business competing in a single industry.

A)concentration
B)vertical integration
C)concentric diversification
D)conglomerate diversification
E)focal integration

Question 70

Resources are viewed as a company's core capabilities when they are

A)common.
B)imitable.
C)intangible.
D)tangible.
E)rare.

Question 71

For the past two decades, Nonna Luciana's has focused only on producing various pasta sauces in jars. The company is now considering entering the market for jarred pickles and olives as well. If Nonna Luciana's decides to enter this arena, it would be using a ________ strategy.

A)vertical integration
B)concentric diversification
C)cost competitive
D)functional
E)differentiation

Question 72

An example of a tangible asset is

A)company reputation.
B)goodwill.
C)technical knowledge.
D)real estate.
E)company culture.

Question 73

An example of an intangible asset is

A)real estate.
B)production facilities.
C)company reputation.
D)raw materials.
E)inventory.

Question 74

Farah's Falafels, a chain of Middle Eastern restaurants, periodically compares its quality and service levels to other successful restaurants in order to continually improve its own performance. This practice is known as

A)maneuvering.
B)strategic mapping.
C)benchmarking.
D)corporate espionage.
E)competitive intelligence.

Question 75

A technique for assessing an organization's internal and external environments in order to formulate strategy is called a

A)BCG Matrix.
B)SWOT analysis.
C)benchmarking strategy.
D)diversification exercise.
E)functional strategy.

Question 76

In a SWOT analysis, an example of an organization's strength would be

A)geographical expansion.
B)new technology.
C)new entrants.
D)skilled management.
E)imitable resources.

Question 77

The process of assessing how well one company's basic functions and skills compare to those of another company or set of companies is known as

A)benchmarking.
B)a situational analysis.
C)strategic planning.
D)operational planning.
E)a SWOT analysis.

Question 78

Jake is owner/CEO of a local car wash business; he operates several outlets in the area. To grow his portfolio of business and to take advantage of his expertise, he decides to open a boat detailing business and a window washing business. Based on the given information, Jake is adopting a(n)

A)concentration strategy.
B)differentiation strategy.
C)concentric diversification strategy.
D)conglomerate diversification strategy.
E)lateral diversification strategy.

Question 79

On-Time Delivery has a unique software program that tracks packages in real time and maps every step of their journey. Such a technology, which gives the company an edge over competitors, would be called a

A)strategic advantage alliance.
B)core capability.
C)better business benefit.
D)competitive benchmark.
E)comprehensive advantage.

Question 80

________ are inputs to production that can be accumulated over time to enhance the performance of a firm.

A)Strategies
B)Core capabilities
C)Resources
D)Benchmarks
E)Patents