Deck 5: Planning and Goal Setting

Question 1

The Boston Consulting Group (BCG) matrix organizes businesses along two dimensions: their business growth rate and their geographical location.

Answer 1

False

Question 2

If Renee, manager at Leak-Free Roofing, wanted to develop a contingency plan for Leak-Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases.

Answer 2

True

Question 3

Operational plans and goals focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals.

Answer 3

False

Question 4

The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply.

Question 5

One of the biggest benefits of planning is that plans create greater organizational flexibility in turbulent environments.

Question 6

During the strategy execution phase, operational goals are defined.

Question 7

Front-line managers have the final responsibility for strategic planning.

Question 8

Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.

Question 9

A goal is a desired future circumstance or condition that the organization attempts to realize.

Question 10

The two stages of crisis planning are crisis prevention and crisis preparation.

Question 11

In today's business environment, it is expected that CEOs will do the large majority of their corporation's strategic planning.

Question 12

Trend management is looking at trends and discontinuities and imagining possible alternative futures.

Question 13

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry.

Question 14

When possible, operational goals should be expressed in quantitative terms.

Question 15

The set of decisions and actions used to formulate and implement strategies are referred to as competitive advantage.

Question 16

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.

Question 17

Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends.

Question 18

A business plan is a broad definition of the organization's values, aspirations, and reason for being, along with a recognition of the scope and operations that distinguishes the organization.

Question 19

Goals should be easy for employees to achieve in order to keep morale and motivation high.

Question 20

Goals are most effective when they are specific, measurable, challenging, and linked to rewards.

Question 21

Stretch goals are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.

Question 22

Darren set goals for each of his employees.Each employee was assigned goals for virtually every aspect of their behavior at work.This is inconsistent with the idea that goals should ______.

A)be specific and measurable
B)be challenging but realistic
C)cover key result areas
D)have a defined time period
E)be linked to rewards

Question 23

One of the limitations of setting goals and making plans is that they can get in the way of creativity.

Question 24

When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, synergy occurs.

Question 25

A blueprint specifying the resource allocations schedules and other actions necessary for attaining goals is referred to as a(n) _____.

A)goal
B)plan
C)mission
D)vision
E)objective

Question 26

A big hairy audacious goal is any goal that is so big, inspiring, and outside the prevailing paradigm that it hits people in the gut and shifts their thinking.

Question 27

Which management method focuses manager and employee efforts on activities that will lead to goal attainment?

A)Tactical planning
B)Contingency planning
C)Single-use planning
D)Management by objectives
E)Management by walking around

Question 28

The planning process begins with which of the following?

A)The development of operational goals
B)The development of a mission statement
C)Communication of goals to the rest of the organization
D)A company-wide meeting
E)Brainstorming

Question 29

Comparative advantage refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace.

Question 30

Senior management is most likely to be responsible for ______.

A)operational plans
B)tactical plans
C)strategic plans
D)mission plans
E)tactical goals

Question 31

Sarah is a middle manager at Stylin' Sneakers Corporation.As such, she is most likely responsible for the achievement of __________ goals.

A)operational
B)tactical
C)strategic
D)lower-level
E)top-level

Question 32

Of the management functions, which is considered the most fundamental?

A)Executing
B)Analyzing
C)Controlling
D)Planning
E)Leading

Question 33

Crowdsourcing generally results in fewer meaningful opportunities for participation by employees in strategy formulation and execution.

Question 34

Strategy execution is the stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.

Question 35

In decentralized planning, planning experts work with line managers and even line staff to develop plans.

Question 36

"We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's _____.

A)mission
B)strategic goals
C)tactical goals
D)strategic plans
E)tactical plans

Question 37

About half of executives whose companies have no formal strategic planning process say they are dissatisfied with the company's development strategy.

Question 38

A core competence is something that the organization does especially well in comparison to its competitors.

Question 39

In the BCG matrix, a dog is a poor performer.

Question 40

Cost leadership is a type of competitive strategy through which an organization seeks to distinguish itself from competitors based on products and services.

Question 41

Double Click, Inc.has a number of strategic business units.Its handheld computer unit has a large market share in this rapidly growing industry.Its handheld computer business would be classified by the BCG matrix as ______.

A)a dog
B)a star
C)a question mark
D)a cash cow
E)stuck in the middle

Question 42

Which of the following is true about the BCG matrix cash cow?

A)It generates tremendous profits in a rapidly growing industry.
B)It has a small market share in a rapidly growing industry.
C)It has a small market share in a slow-growth industry
D)It has a large market share in a slow-growth industry
E)It is generally a dead business that should be divested.

Question 43

Jeff is a top manager at a textile factory.He is developing a crisis plan to be implemented in the event that the company has a toxic spill or similar industrial accident.Which issue should be addressed in the crisis prevention stage?

A)Designating a crisis management team
B)Building open, trusting relationships with key stakeholders
C)Designating a crisis management spokesperson
D)Setting up an effective communications system
E)All of the above

Question 44

Consider Porter's competitive strategies.Which strategy is most likely to be effective for a business that can avail itself of easy-to-use manufacturing technologies?

A)Cost leadership
B)Differentiation
C)Focused differentiation
D)Internal growth
E)Focused cost leadership

Question 45

Which of the following is a commonly cited limitation of planning?

A)Plans limit employee motivation and commitment.
B)Plans make resource allocation more difficult.
C)Plans make it more difficult to measure standards of performance.
D)Plans boost intuition and creativity.
E)Plans can create a false sense of security.

Question 46

Alabama Airlines has three planning specialists who help division managers develop their own division plans.Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats.Alabama Airlines is utilizing which of the following approaches to the planning function?

A)Centralized planning department
B)Decentralized planning staff
C)Planning task force
D)Centralized planning committee
E)TQM

Question 47

Consider Porter's competitive strategies.Which strategy is most likely to push empowerment to employees with customer contact?

A)Cost leadership
B)Differentiation
C)Focused differentiation
D)Internal growth
E)Focused cost leadership

Question 48

How do planners get information about opportunities and threats?

A)Analyzing the organization's internal environment
B)Conducing a department-by-department study of the organization
C)Scanning the external environments
D)Reviewing employee grievances
E)Analyzing the financial ratios of the organization

Question 49

Strategy __________ refers to the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.

A)formulation
B)coordination
C)execution
D)control
E)planning

Question 50

Consider Porter's competitive strategies.Which strategy is most likely to include rewarding employee innovation?

A)Cost leadership
B)Differentiation
C)Focused differentiation
D)Internal growth
E)Focused cost leadership

Question 51

Fred has been asked to conduct a SWOT analysis for his organization, Acme, Inc.As part of this assignment, Fred will be most likely to _____.

A)conduct an external wage survey
B)identify his firm's strengths and weaknesses
C)choose a grand strategy for his firm
D)do a cost-benefit analysis
E)develop a mission

Question 52

Jeff is a top manager at a textile factory.He is developing a crisis plan to be implemented in the event that the company has a toxic spill or a similar industrial accident.Which issue should be addressed in the crisis preparation stage?

A)Educating employees about industrial accidents
B)Building open, trusting relationships with key stakeholders
C)Ensuring employees have appropriate personal protective equipment
D)Designating a cross-functional group of people who will swing into action if a crisis occurs
E)Inspections to ensure equipment is functioning appropriately and effectively

Question 53

The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals is known as a(n) _____.

A)goal
B)objective
C)mission
D)vision
E)strategy

Question 54

The strategy of moving into new lines of business is called ______.

A)individuation
B)differentiation
C)acquisition
D)expansion
E)diversification

Question 55

Consolidated Business Group holds a diverse portfolio of business interests including several cash cows.What does having cash cows mean for Consolidated's strategies?

A)Consolidated will likely be harmed should there be unstable financial conditions.
B)Consolidated is likely to experience cash shortfalls in the near future.
C)Consolidated needs to divest itself of the cows and sell off their assets.
D)Consolidated can afford to invest in riskier businesses.
E)Consolidated is likely to grow rapidly as the cows' markets expand.

Question 56

When top executives work with managers in major divisions or departments to develop their own goals and plans, it is known as __________ planning.

A)interdepartmental
B)crisis
C)focus
D)decentralized
E)competitive

Question 57

Federated Corporation holds a diverse portfolio of business interests including several dogs.What does having dogs mean for Federated's strategies?

A)Federated is using outdated business strategies and needs to update its plans.
B)Federated does not need to be concerned about its investments
C)Federated needs to divest itself of the dogs if they are not profitable.
D)Federated can afford to invest in riskier businesses.
E)Federated is likely to grow rapidly as the dogs' markets expand.

Question 58

Consider Porter's competitive strategies.Which strategy is most likely to include measuring the cost of providing a product or service and the cost of maintaining customer loyalty?

A)Cost leadership
B)Differentiation
C)Focused differentiation
D)Internal growth
E)Focused cost leadership

Question 59

Which of the following is NOT one of the benefits of management by objectives (MBO)?

A)Performance can be improved at all company levels.
B)Employees are motivated.
C)Efforts are focused on activities that will lead to goal attainment.
D)Operational goals are able to displace strategic goals.
E)Individual and department goals are aligned with company goals.

Question 60

Mingles, Inc.concentrates its efforts on its target market of 18- to 25-year-olds.It is using Porter's __________ strategy.

A)
B)differentiation
C)cost leadership
D)multidomestic
E)universal focus

Question 61

To develop _____ plans, managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents.

A)emergency
B)risk
C)scenario
D)contingency
E)obsolescence

Question 62

__________ is the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Question 63

Meadow Branch Corporation leadership believes that when managers pursue their activities in the right way, positive outcomes will result.Their approach is best described as management by ______.

A)indicator
B)objectives
C)means
D)outcome
E)goal

Question 64

The use of managerial and organizational tools to direct resources toward accomplishing strategic outcomes is known as __________.

Question 65

A business activity that an organization does particularly well relative to its competition is known as __________.

Question 66

Goals that are so big, inspiring, and outside the prevailing paradigm that they hit people in the gut and shift their thinking are called ______ goals.

A)aspirational
B)big hairy audacious
C)visionary
D)stretch
E)motivational

Question 67

Measures that reflect how well lower-level goals help the organization progress toward attaining its strategic goal are called ______.

A)key performance indicators
B)objective indicators
C)outcomes
D)critical assessments
E)behavioral indicators

Question 68

Innovative Holdings Group holds a diverse portfolio of business interests including several stars.What does having stars mean for Innovative's strategies?

A)Innovative should monitor the stars and divest itself of those that do not perform well.
B)Innovative is likely to experience cash shortfalls in the near future.
C)Innovative needs to divest itself of all of the stars before they explode.
D)Innovative can afford to invest in riskier businesses.
E)Innovative should plow profits into the stars to take advantage of their expanding markets.

Question 69

A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called __________.

Question 70

In the BCG matrix, the dog has __________ market share and __________ business growth rate.

Question 71

In building _____, managers look at current trends and discontinuities and visualize future possibilities.

A)emergency plans
B)risk abatements
C)scenarios
D)contingencies
E)vision plans

Question 72

Plans that define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions are called __________ plans.

Question 73

A special type of contingency plan that is used when events are sudden and devastating and require immediate response is called __________.

Question 74

Broad statements describing where the organization wants to be in the future are called __________.

Question 75

A __________ is a blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.

Question 76

Reasonable yet highly ambitious and compelling goals that energize people and inspire excellence are called ______ goals.

A)aspirational
B)acceptable
C)visionary
D)stretch
E)motivational

Question 77

__________ is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

Question 78

United Products Group holds a diverse portfolio of business interests including several question marks.What does having question marks mean for United's strategies?

A)United should monitor the question marks and divest itself of those that do not perform well.
B)United is likely to experience cash shortfalls in the near future.
C)United needs to divest itself of all of the question marks and sell off their assets.
D)United can afford to invest in riskier businesses.
E)United is likely to grow rapidly as markets expand, regardless of the question marks' performance.

Question 79

The ultimate impact of goals depends on _____.

A)the extent to which goal achievement is tied to meaningful rewards
B)whether employees regard them as reasonable
C)the extent to which they inspire employees
D)the degree of management buy-in
E)whether or not employees had a voice in the formulation of the goals

Question 80

Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as __________ goals.