Deck 4: Planning and Strategic Management

Question 1

Contingency plans might be called "what if" plans.

Answer 1

True
Explanation: Contingency plans might be referred to as "what if" plans. They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Question 2

Making decisions about preferred short-term fixes for organizational problems is called strategic planning.

Answer 2

False
Explanation: Strategic planning involves making decisions about the organization's long-term goals and strategies. Strategic plans have a strong external orientation and cover major portions of the organization.

Question 3

Contingency plans are most commonly used in a stable external environment.

Answer 3

False
Explanation: Contingency plans might be referred to as "what if" plans. They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Question 4

General decision-making stages and specific formal planning steps are quite similar.

Question 5

An effective strategy should answer the question "Where will we be active?" for an organization.

Question 6

The strategic management process begins with resource identification.

Question 7

A strategy map illustrates how operational goals can be generalized and combined into organizational strategies.

Question 8

Situational analysis, as part of the formal planning process, focuses on internal forces at work within the organization and examines influences from the external environment.

Question 9

Today's senior executives resist involving lower-level managers in the strategy formation process because of the dramatic increase in time required to make decisions and the loss of productivity.

Question 10

Goals should be general rather than specific and should have a target date for completion.

Question 11

The planning model is often hierarchical, with top-level strategies flowing down through the levels of the organization into more specific goals and plans.

Question 12

There are four key drivers of a firm's long-term success: people, processes, customer value, and growth in financial assets.

Question 13

Operational planning identifies the specific procedures and processes required at lower levels of the organization.

Question 14

The basic planning process goes in one direction: into the future.

Question 15

Tactical plans contain a medium level of detail.

Question 16

Operational plans may have a time horizon of a year or two, while tactical plans may cover a period of months.

Question 17

Strategic goals are major targets or end results that relate to the long-term survival, value, and growth of the organization.

Question 18

The final step in the formal planning process, monitoring and controlling, is overemphasized by many companies, to the detriment of the other steps.

Question 19

An organization's mission statement describes the organization's basic purpose.

Question 20

Ideally, strategic management should be an ongoing activity in which all managers are encouraged to focus on long-term, externally oriented issues as well as tactical and operational issues.

Question 21

In an environmental analysis, the difference between an opportunity and a threat may often be how a company positions itself strategically.

Question 22

Well-known and highly regarded brands would be listed as a strategic opportunity in a typical SWOT analysis.

Question 23

Stakeholders are groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies.

Question 24

The mission and vision of an organization evolve from its strategic goals.

Question 25

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

Question 26

Businesses using a low-cost strategy attempt to be efficient and offer a standard, no-frills product.

Question 27

A vertical integration strategy involves expanding the domain of the organization into supply channels and to distributors.

Question 28

Focusing on offering the most inexpensive products is one type of a differentiation strategy.

Question 29

An internal resource analysis includes assessing the major functional areas inside the organization.

Question 30

A core competence is something a company does especially well relative to its competitors.

Question 31

A thorough environmental analysis includes a human resources analysis.

Question 32

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

Question 33

The goal of diversification is to thoroughly understand the "best practices" of other firms in order to make changes to achieve better performance and lower costs.

Question 34

A corporate strategy identifies the type of relationship with regulatory and other government agencies that would create or maintain a profitable foundation for the firm.

Question 35

An environmental analysis should include buyers, suppliers, government and regulatory agencies, and trade associations.

Question 36

Parallel diversification involves moving into new businesses that are not related to the company's original core business.

Question 37

CF Martin & Company pursues a concentration strategy when it focuses only on making the best possible guitars and guitar strings.
C.
F. Martin & Company pursues a concentration strategy by focusing on making the best possible guitars and guitar strings, a strategy that has enabled the family-owned business to operate successfully for over 150 years.

Question 38

An organization's resources can also be described as the total of cash on hand and other liquid assets.

Question 39

The most effective vision statements inspire organizational members.

Question 40

The Boston Consulting Group Matrix helps managers evaluate their strategy alternatives for the entire business portfolio.

Question 41

For the manager at a magazine company considering the launch of a teen sports publication, the ________ stage of the planning process would include investigation of the number of teen subscribers to magazines, current market conditions, and any sports magazines already serving this market.

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

Question 42

Which of the steps in the formal planning process 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 43

You will never know if your plan is working without which step in the formal planning process?

A) Goal and plan evaluation.
B) Situational analysis.
C) Monitor and control.
D) Implementation.
E) Alternative goals and plans.

Question 44

Essential to developing a system that will monitor and control the implementation of plans developed in the formal planning process is the establishment of

A) Sanctions for improper performance.
B) Control systems.
C) A "control leader."
D) Contingency plans for various scenarios.
E) Strategic planning motives.

Question 45

Which is the first step in the formal planning process?

A) Goal and plan evaluation.
B) Situational analysis.
C) Monitor and control.
D) Implementation.
E) Alternative goals and plans.
Planning begins with a situational analysis. Within time or resource constraints, planners should gather, interpret, and summarize all information relevant to the planning issue in question.

Question 46

To be effective, ________ should have certain qualities, which are easy to remember with the acronym SMART.

A) goals
B) plans
C) mission statements
D) vision statements
E) strategies

Question 47

Which of the following is a characteristic of an effective goal?

A) Flexible.
B) Just out of reach.
C) Open-ended.
D) Collaborative.
E) Time-based.

Question 48

Your Dollar Mart plans to open five new stores before 2015. But if the economy does not improve, and especially if consumer confidence does not rise as anticipated, it may open only two stores. This backup plan is an example of a

A) Strategic plan.
B) Single-use plan.
C) Contingency plan.
D) Standing plan.
E) Trial-and-error plan.

Question 49

Managers at Andover & Associates have just determined together that several options being considered as plans for new product introduction appear to have better projected outcomes for market share growth, one of their high-priority goals. Andover is involved in which basic planning stage?

A) Goal and plan selection.
B) Implementation.
C) Monitor and control.
D) Alternative goals and plans.
E) Goal and plan evaluation.

Question 50

Implementation of selected goals and plans will be most successful when

A) Only managers participate in the planning and implementation processes.
B) Limited resources are provided for implementation.
C) The goals and plans are linked to other organizational systems.
D) The employees remain skeptical of the plan.
E) Employees are brought into the process just after the decision to implement is made.

Question 51

Which of the following describes a planning characteristic in organizations?

A) Once organizational plans are set, they should be firm.
B) Organizational plans describe what managers will do but not specifically how they will do it.
C) Organizational plans may be formal or informal.
D) Organizational plans result from a conscious, systematic process of goal decision making.
E) Organizational plans are typically developed in response to a crisis.

Question 52

Which of the following best describes plans?

A) They are targets or ends that a manager wants to reach.
B) They are impossible when the environment is unstable or rapidly changing.
C) They are inappropriate when resources are scarce.
D) They should not change over time.
E) They are the actions or means the manager intends to use to achieve goals.

Question 53

The three levels of planning are

A) Strategic, business, and detailed.
B) Visionary, strategic, and detailed.
C) Visionary, business, and detailed.
D) Strategic, synergistic, and operational.
E) Strategic, tactical, and operational.

Question 54

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

A) Goal and plan selection relies exclusively on experienced judgment.
B) Experienced judgment always plays an important role in goal and plan selection.
C) Benchmarking should be done during goal and plan selection.
D) Competitors' internal plans play an important role in goal and plan selection.
E) A good goal and plan selection can be used in every circumstance.

Question 55

In the ________ stage of the 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 56

Most major corporations now have __________ plans in place to respond to a major disaster, but may also need them for more common situations like a snowstorm.

A) single-use
B) strategic
C) contingency
D) standing
E) tactical

Question 57

Functional strategies are implemented by top-level managers.

Question 58

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

Question 59

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

A) The situational analysis.
B) Goal and plan evaluation.
C) Implementation.
D) Monitor and control.
E) Goal and plan selection.

Question 60

Goals established during the planning process are most directly based on the

A) Probability of success.
B) Needs of management personnel.
C) Competition's plans.
D) Situational analysis.
E) Likelihood of government intervention.

Question 61

A pattern of actions and use of resources that is developed with the intention to achieve the goals of an organization is referred to as

A) A strategic goal.
B) Tactical planning.
C) Strategic operationalizing.
D) A strategy.
E) Mission development.

Question 62

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

A) Vision.
B) Mission.
C) Strategy.
D) Policy.
E) Objective.

Question 63

The long-term direction and strategic intent of a company are expressed in its

A) Purpose statement.
B) Mission statement.
C) Vision statement.
D) Strategic goals.
E) Tactical objectives.

Question 64

Examples of strategic goals are

A) Production scheduling, training of personnel, improving accounting procedures, and updating equipment used.
B) Profit levels, share value, growth, return on investment, and societal impact.
C) Advertising expenditures, sales levels, product innovations, and customer feedback levels.
D) Absenteeism levels, benefit usage and value, human resource utilization, and compliance with civil rights laws.
E) Meeting ISO 9001 standards.

Question 65

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies is called

A) Management organization.
B) Environmental analysis.
C) Strategic management.
D) Operational planning.
E) Strategic planning.

Question 66

Strategic goals are

A) Efforts and actions that are focused solely on effectiveness.
B) Major targets related to the long-term survival, value, and growth of the organization.
C) Efforts and actions that are focused solely on efficiency.
D) Patterns of actions and resource allocation designed to solve immediate problems.
E) Any tactics that are developed by operational managers.

Question 67

Tactical planning would include which of the following?

A) Profit goals.
B) Design, test, and install the equipment needed to produce a new product line.
C) Production runs.
D) Human resource requirements.
E) Return on investment.

Question 68

The level of planning that focuses on routine tasks and a relatively limited time frame is

A) Operational planning.
B) Missionary planning.
C) Tactical planning.
D) Departmental planning.
E) Strategic planning.

Question 69

_______________ planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, such as a functional area.

A) Operational
B) Tactical
C) Traditional
D) Bottom-up
E) Objective

Question 70

Which of the following is a component of strategic management?

A) Establishment of mission, vision, and goals.
B) SWOT analysis.
C) Strategic control.
D) Strategy implementation.
E) All of these are components of strategic management.
As shown in Figure 4.4, the strategic management process has six major components: establishment of mission, vision, and goals; analysis of external opportunities and threats; analysis of internal strengths and weaknesses; SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation; strategy implementation; and strategic control.

Question 71

"To be the world's best quick-service restaurant experience" is an example of a(n)

A) Strategic vision statement.
B) Mission statement.
C) Tactical goal.
D) Operational goal.
E) Divisional goal.

Question 72

The process of identifying the specific procedures and processes required at lower levels of the organization is called

A) Strategic planning.
B) Operational planning.
C) Tactical planning.
D) Contingency planning.
E) Divisional planning.

Question 73

Traditionally, strategic planning has emphasized a _________________ approach.

A) collaborative
B) trial-and-error
C) top-down
D) grass roots
E) consultative

Question 74

Who is responsible for the organization's strategic plan?

A) Senior executives.
B) Middle management.
C) Frontline supervisors.
D) Tactical managers.
E) Organization directors.

Question 75

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

A) A mission statement.
B) A vision statement.
C) Strategic planning.
D) Tactical planning.
E) Operational planning.

Question 76

A ________________ statement clarifies the long-term direction of the company and its ___________________.

A) mission; strategic intent
B) vision; strategic intent
C) vision; operational goals
D) mission; tactical goals
E) vision; tactical goals

Question 77

The strategy map would include information about which of the following?

A) Financial goals.
B) Customer goals.
C) Internal goals.
D) Learning and growth goals.
E) All of these types of information are included in a strategy map.
Figure 4.3 shows how a strategy map might be built and how the various goals of the organization relate to each other to create long-term value for the firm. These include financial goals, customer goals, internal goals, and learning and growth goals.

Question 78

An organization's strategic, operational, and tactical goals must be

A) Aligned.
B) Consistent.
C) Mutually supportive.
D) Focused on a common purpose.
E) All of these.

Question 79

The level of planning involving the fewest details is

A) Operational planning.
B) Corporate planning.
C) Tactical planning.
D) Strategic planning.
E) Visionary planning.
According to Figure 4.2, goals and plans become more specific and involve shorter periods of time as they move from the strategic level to the tactical level and then to the operational level.

Question 80

Typical operational planning might focus on

A) Production scheduling and training of personnel.
B) Profit levels, share value, growth, and return on investment.
C) Advertising expenditures, sales levels, product use innovations, and customer feedback levels.
D) Absenteeism levels, benefit usage and value, human resource utilization, and compliance with civil rights laws.
E) Corporate social responsibility.