Deck 5: Planning: The Foundation of Successful Management

Question 1

Research has proven that writing out goals does not necessarily help a person feel more confident when entering a new group.

Answer 1

False
Explanation: Research suggests that writing about two paragraphs outlining your goals will help you feel more confident and energetic when entering a new group.

Question 2

Quality Carwash is developing a new philosophy on company diversity.Like most organizations,Quality Carwash's reason for being is expressed in its diversity statement.

Answer 2

False
Explanation: An organization's reason for being is expressed in a mission statement.

Question 3

The responsibility for the development of an organization's mission statement,which outlines the company's competition and how it will ethically compete in the market,is the responsibility of top management and the board of directors.

Answer 3

True
Explanation: Determining the mission is the responsibility of top management and the board of directors.It is up to them to formulate a mission statement,which expresses the purpose of the organization.

Question 4

When Holiday Inn Express stated that the organization strives to "be the primary source of hospitality in the communities" it serves by providing its customers "the best possible experience and by being good neighbors," this is a code of ethics.

Question 5

A business model is a type of business plan.

Question 6

The upper-level managers of Deluxe Coffee are meeting to discuss the long-range goals and vision of the company.Like any organization,an organization should adopt planning and strategic management for two reasons: to provide direction and momentum and to encourage retention of high-value employees.

Question 7

A business plan is a management tool that contains a list of the competition,along with the competitors' product strengths and prices.

Question 8

A business model outlines what customer needs the company will satisfy,the operations of the business,the company components and functions,and the projected revenue and expenses.

Question 9

When Joseph,a restaurant manager,plans,he sets goals and then decides how to achieve them.This is the definition of planning.

Question 10

Every five years,the upper-level managers of ABC Technology meet to develop a new large-scale action plan that will set the direction for the company for the next five years.In that meeting the managers are developing a strategy.

Question 11

What the organization wishes to become is expressed in a mission statement.

Question 12

When using MBO,managers should meet about once a year,either informally or formally,to review progress on meeting objectives.

Question 13

Research suggests that when writing out and achieving a person's biggest goals,it is important to make a concrete plan,break goals into manageable bites,and seek social support.

Question 14

Strategic planning determines goals for an organization for a period of 5 to 10 years.

Question 15

Strategic management involves all managers within the organization.

Question 16

Upper-level managers prepare the action plans for attaining objectives for all levels of management.

Question 17

A company's mission and vision is the foundation of an organization's planning and strategic management.

Question 18

Getting a college degree is not only a big goal,it's a hard goal-difficult,stressful,expensive,and time-consuming.

Question 19

One purpose of strategic planning is to "keep the eye on the plan" and avoid invention.

Question 20

Almost everyone starting a new business is advised to write a business plan.

Question 21

When the CEO of Tasty Coffee and Bakery dictated that all company districts needed to increase their profitability,district managers across the country focused on improving customer service ratings in their stores by offering customer service training.This goal by the district managers of customer service ratings is an example of a tactical goal.

Question 22

Like planning,goals are arranged in a hierarchy known as a means-end chain because in the chain of management,the accomplishment of high-level goals is the means leading to the accomplishment of low-level goals or ends.

Question 23

The production plant for Ace Manufacturing has been located in the same place for over 100 years.It has just completed its new factory,which includes its new corporate offices.The planning required for moving of Ace into a new facility is a single-use plan.

Question 24

The way a particular problem or circumstance is handled,such as the company policy of always returning customer phone calls and e-mails within 24 hours,is a standard operating procedure.

Question 25

A SMART goal is one that is specific,multidimensional,accurate,and results-oriented,and has target dates.

Question 26

Paula is the store manager for a national grocery retailer,and she received the yearly tactical plan from Greg,her district manager.Paula is meeting with her department managers to plan how to implement the specific tasks outlined in Greg's plan for the next year.This type of planning by Paula is operational planning.

Question 27

When setting a SMART goal,it should be results-oriented.

Question 28

Strategic goals concentrate on objectives for handling competition and the competitive environment.

Question 29

Corporate has decided that each of the store managers needs to develop clear goals for next year on how to increase revenue,cash flow,and market share.Geoff,like the other store managers,is also required to develop a specific plan of action on how he plans to accomplish these objectives in his local market.This is an example of an operating plan.

Question 30

Standing plans are plans developed for activities that occur repeatedly over a period of time.

Question 31

Tactical goals,a type of strategic goal,are determined by and for nonmanagerial employees as part of the MBO process to help employees achieve organizational goals.

Question 32

Alison,the vice president of marketing for a global company,is planning what contributions she and her department will make to the organization over the next 24 months.This type of planning is operational planning.

Question 33

When Donna asked her sales representatives for their sales goals for the year,Al,one of her salespeople,said,"I am going to sell more copiers next year than this year." Donna's response to Al was,"Specifically,how many copiers do you plan on selling?" Al replied,"I'm going to sell 90 copiers." Al's specific answer is an example of a SMART goal.

Question 34

Peter,the night supervisor in a fast-food restaurant,was given the responsibility by Mr.Jones,the general manager,of planning a number of the normal daily tasks by his workers over the next 3 months.This type of planning by Peter is known as operational planning.

Question 35

Jerome's Italian Pizza is in a very competitive industry,and its upper management believes that by focusing on the strategy of lowering costs and prices,providing quicker delivery,and providing good customer service,this will result in higher profits.This is an example of a strategic goal.

Question 36

Tom,the store manager in a hardware store,routinely sets specific sales and cost targets for his store,which he promises to achieve in a certain period of time.These specific objectives are known as goals.

Question 37

Single-use plans are plans developed for activities that are not likely to be repeated in the future.

Question 38

Donna,the sales manager,asked Al,one of her sales representatives,"Why did you set next year's sales goal at only 90 copiers? This year you are on track to sell 85 copiers,and I believe with your ability,selling 120 copiers would be challenging,but I believe it is realistic and possible." Donna's belief about setting a challenging,yet realistic and attainable goal for Al is an example of a SMART goal.

Question 39

Tactical planning is a type of operational planning done by upper management.

Question 40

When employees are hired by ABC Industries,the HR manager tells all new hires that their workplace does not allow swearing or dirty jokes.This specific detail is an example of a policy.

Question 41

MBO works by the upper movement of goals through the organization;that is,top managers set general organizational objectives based on what individual employees and then departments voice as their objectives.

Question 42

With increasing competition in the restaurant business,Sal,owner of Mom's Pizza,is dealing with growing uncertainty.He is meeting with his managers to develop a future course of action to meet company goals.This process is known as _____.

A)planning
B)leading
C)controlling
D)defining
E)diversifying

Question 43

Research suggests that when writing out and achieving a person's biggest goals,it is important to ____.

A)make a concrete plan and avoid social support
B)make a concrete plan and break goals into manageable bites
C)make a general plan,which embeds your intentions firmly in your memory
D)keep plans and goals private
E)avoid specific goals because it increases stress

Question 44

There are four types of objectives in MBO: improvement objectives,personal development objectives,diversity objectives,and maintenance objectives.

Question 45

When utilizing MBO,the manager and employee jointly set objectives for the employee,the manager develops action plans,the manager and employee periodically review the employee's performance,and the manager makes performance appraisals and rewards the employee according to the results.

Question 46

Don,a CEO,has decided to utilize MBO in his retail outlets across the Midwest.He made this decision because of its emphasis on converting general objectives into broad ones for the upper management of an organization.

Question 47

When top-management commitment to MBO is high,the average gain in productivity is above average,and when upper management commitment is low,the average gain in productivity is low.

Question 48

In a management meeting,Paula,the CEO of ABC Industries,mentioned that deadlines are a great motivator.She believes this because the entire purpose of making a plan and setting goals is to deliver to a customer specified results within a specified period of time.Therefore,Paula can claim that deadlines are a great motivator.

Question 49

Setting target dates or deadline dates for when goals are to be attained is not always needed.

Question 50

Mr.Smith,CEO of an auto dealership,has been working on the two planning steps of the planning/control cycle with his managers.To do this,Mr.Smith and his managers need to make their plan and then carry out the plan.

Question 51

In the planning/control cycle,managers take corrective action by correcting deviations in the plan being carried out or by improving future plans.

Question 52

According to Richard Branson,founder of Virgin Atlantic airlines,you can set a really hard goal,such as increasing your class study time 50%,which is "stretching yourself beyond what your mind might think is safe," also known as a(n)____.

A)increased-state mindset
B)push goal
C)stress goal
D)inclining goal
E)stretch goal

Question 53

The planning/control cycle has two planning steps: make the plan and carry out the plan.

Question 54

Greg,owner of Comfortable Home Heating and Air,has been having problems with employee morale.After investigating,he found that some of his department managers were using management by objectives,but the accounting and sales managers were not utilizing MBO in their departments.For the MBO program to be successful,it has to be put in place throughout the entire organization.

Question 55

With the first step in management by objectives,it is necessary to have back-and-forth negotiation between managers and their subordinates to make the objectives practicable.

Question 56

MBO works the best if the objectives from upper and middle management are given to subordinates by their manager,and the supervisor simply says,"Here are the objectives I want you to meet."

Question 57

When an employee fails to meet MBO objectives,to reduce embarrassment for that subordinate,the manager should give the employee more time to improve;however,taking strong measures such as demotion is typically incorrect.

Question 58

While sitting at her desk,Ann is setting goals and deciding how to achieve them.She is ___.

A)planning
B)controlling
C)delegating
D)diversifying
E)synergizing

Question 59

The planning/control cycle has two control steps: control the direction by comparing results with the plan and control the direction by increasing organization diversity and synergy.

Question 60

The planning/control cycle loop exists for each level of planning-strategic,tactical and operational.

Question 61

Helping people focus on critical problems,choices,and opportunities is possible through _____.

A)planning and diversity
B)MBO
C)planning and strategic management
D)effective synergy policy
E)a strong value system

Question 62

One Fortune article reads that "vision should describe what's happening to the world you compete in and what you want to do about it" and "it should ___."

A)help reduce competition
B)guarantee organization success
C)guide decisions
D)improve employee morale
E)reduce the glass ceiling

Question 63

Strategic,tactical,and operational are the ____.

A)three levels of planning
B)levels of diversity
C)strategic levels
D)three levels of marketing
E)phases of the environment

Question 64

Clothing maker Patagonia states that its purpose as an organization is to "build the best product,cause no unnecessary harm,[and] use business to inspire and implement solutions to the environmental crisis." This is the company's ___.

A)mission statement
B)belief statement
C)goals pact
D)code of ethics
E)management pledge

Question 65

Abe and April are considering starting a family business,so their banker advised them to write a business plan because it helps an entrepreneur ____.

A)get financing and reduce competition
B)develop a mentoring plan
C)think through important details and focus on a code of ethics
D)get financing and think through important details,and it better guarantees success
E)develop a code of business and succeed

Question 66

The need the firm will fill,the operations of the business,its components and functions,as well as the expected revenues and expenses is expressed in the organization's ____.

A)mentoring plan
B)code of ethics
C)risk statement
D)business model
E)code of business

Question 67

The upper-level managers of Synergy Technology are meeting for the week to look at the long-term company goals and overall direction of the organization.The CEO has expressed her concern over the economy and has told her managers to look closely at the environment outside the organization before making decisions and to be future oriented.In this meeting,top managers of Synergy are _____.

A)writing a belief statement
B)developing their goals pact
C)producing their code of ethics
D)doing strategic planning
E)doing management pledging

Question 68

Deon is opening a car wash,and he has approached SCORE,a SBA organization that assists small-business owners in setting up their companies.As a new business owner,the SCORE counselors would probably advise Deon to _____.

A)learn from experience,the best teacher,rather than a mentor
B)avoid developing a business plan the first year of business
C)try new things regardless of the risk
D)get a new perspective by asking people who have failed
E)write a business plan

Question 69

Because of frequently changing competition and technology,a company's strategic planning may have to be done _____.

A)every 5 years rather than every 2 years
B)every 5 years rather than every 10 years
C)every 10 years
D)continuously
E)closer to every 1 or 2 years than every 5 years

Question 70

The planning process begins with two attributes: a mission statement,which answers the question _____,and a vision statement,which answers the question ______

A)What do we want to become?;What is our reason for being?
B)What are the costs?;How much money can I make?
C)What are the risks?;What is our reason for being?
D)What do we want to become?;What products do we offer at a profit?
E)What is our reason for being?;What do we want to become?

Question 71

Operational planning must be completed by first-line managers every ____,and tactical planning is done by middle management every ____.

A)year;2 to 10 years
B)6 to 24 months;1 to 52 weeks
C)1 to 52 weeks;6 to 24 months
D)1 to 12 weeks;year
E)year if necessary;1 to 90 days

Question 72

At the strategic level of planning,managers must pay attention to the environment outside the organization,be future oriented,and ____.

A)have more stability than at other levels
B)have more control over employee issues
C)have less competition
D)deal with uncertain and competitive conditions
E)be more likely to understand the competition

Question 73

The upper management of a large national retail grocery store has passed along the new goals of improving customer service to the district managers.At this point,the district managers need to determine how the stores in their district will achieve top management's goal with the given resources during the next 6 to 24 months.This type of planning is known as ____.

A)working-level planning
B)tactical planning
C)middle-level planning
D)operational planning
E)strategizing

Question 74

During a management meeting,Dave,the CEO of Top Office Equipment,reminded his management team of where the company wants to go as an organization: "Top Office Equipment is the expert whom customers should always call regarding all their office equipment needs because Top Office strives to understand customer needs and provide the right answers for them." This statement is Top Office Equipment's ____.

A)belief statement
B)goals pact
C)code of ethics
D)management pledge
E)vision statement

Question 75

The mission statement expresses the ____.

A)expected profitability of the organization
B)purpose of the organization
C)code of ethics
D)market for the product
E)types of employees needed

Question 76

Prior to opening her new restaurant,Nia is determining what items to offer on the menu,the anticipated profits and expenses,the tasks of various employees,and how those jobs will be handled.Nia is writing her ____.

A)business model
B)mentoring plan
C)code of ethics
D)risk statement
E)code of business

Question 77

The primary reason for an organization to adopt planning and strategic management is to _____.

A)develop MBO
B)encourage new ideas
C)develop a sustainable competitive advantage
D)provide direction and momentum
E)increase organization diversity

Question 78

The profits of ABC Grocery have dropped significantly over the last several months.After investigating,the owner realizes that the store is moving in the wrong direction in many departments,so there needs to be greater focus by management.This is an example of how an organization can progress in the wrong direction with ____.

A)little company diversity
B)no focus on JIT
C)no code of ethics
D)a poor plan
E)too much employee diversity

Question 79

David is starting a karate school,and he has been working with Mr.Smith,a business counselor with the SBA.Mr.Smith told David that the first three steps to planning his organization are (in the correct order)___.

A)strategic planning,mission statement,vision statement
B)operational planning,mission statement,hiring plan
C)strategic planning,operational planning,vision statement
D)mission statement,vision statement,strategic planning
E)tactical planning,operational planning,mission statement

Question 80

Elite Coffee and Bakery,a café that offers a relaxing environment to enjoy quality coffees,teas,soups,and other menu items,has a poster in the front of its restaurants that reads,"We will always provide a quality product to help our customers better meet the challenges of their day and always take the time to offer caring service one person at a time." This statement is Elite's ___.

A)belief statement
B)goals pact
C)mission statement
D)code of ethics
E)management pledge