Deck 8: The Manager As a Planner and Strategist

Question 1

Plans are consistent in their time horizons.

Answer 1

False
Explanation: Plans differ in their time horizons.

Question 2

In most organizations,planning is a seven-step activity.

Answer 2

False
Explanation: In most organizations,planning is a three-step activity.

Question 3

Effective plans should have four qualities: unity,continuity,accuracy,and inflexibility.

Answer 3

False
Explanation: Henri Fayol,the originator of the model of management,said that effective plans should have four qualities: unity,continuity,accuracy,and flexibility.

Question 4

A policy is a formal,written guide to action.

Question 5

A specific statement of the organization's purpose,its products,and its customers is called a mission statement.

Question 6

The last step in the planning process is to determine the organization's mission and goals.

Question 7

Functional goals and strategies need to be consistent with both divisional and corporate goals and strategies.

Question 8

In the typical organization,corporate-level planning is the primary responsibility of first-line supervisors.

Question 9

A plan can be used as a device for controlling managers within an organization.

Question 10

Projects are integrated sets of plans for achieving certain goals.

Question 11

A written set of instructions that describes the series of actions that a manager should take in a specific situation is called an SOP of the organization.

Question 12

A business plan that is updated every year depending on the changes in the organization and in the external environment that have taken place in the previous year is known as a rolling plan.

Question 13

The second step requires that managers implement the strategies necessary to attain the organization's mission and goals.

Question 14

GE Lighting's marketing managers are responsible for increasing the effectiveness of its advertising and sales campaigns in different countries to improve light bulb sales.

Question 15

Single-use plans are intended to be used primarily in nonprogrammed decision making situations.

Question 16

The set of decisions that managers make to assist the organization in the attainment of its goals is called the strategy of the organization.

Question 17

Another name for contingency planning is scenario planning.

Question 18

Though not formally written,at RST consulting employees were allowed to dress casually on Fridays.This general guide is called a policy.

Question 19

Standing plans are useful in situations that involve nonprogrammed decisions.

Question 20

The business-level plan details the short-term divisional goals that will allow the division to meet corporate goals.

Question 21

A broad statement of an organization's purpose,products,and customer base that differentiate an organization from its competitors is known as a:

A)Business plan
B)Mission statement
C)SWOT analysis
D)Goal
E)Strategy

Question 22

Most growing companies reinvest their profits to strengthen their competitive position in the industry in which they are currently operating.

Question 23

Apple decided to open its own Apple retail stores.This is an example of backward vertical integration.

Question 24

Which of the following is NOT a main reason why planning is important?

A)Planning is necessary to give the organization a sense of direction and purpose.
B)Planning is a useful way of getting managers to participate in decision making.
C)A plan helps coordinate managers of the different functions and divisions in an organization.
D)Planning is a low cost strategy.
E)A plan can be used as a device for controlling managers.

Question 25

When establishing goals,setting a completion time is not necessary.

Question 26

If managers decide that their organization should sell the same standardized product in each national market in which it competes,and use the same basic marketing approach,they adopt a multidomestic strategy.

Question 27

When considering vertical integration as a strategy to add value,managers must be careful because sometimes it may reduce a company's ability to create value when the environment changes.

Question 28

If managers decide to customize products and marketing strategies to specific national conditions,they adopt a multidomestic strategy.

Question 29

To be competitive,Lazy Daze Canoe Rental has the lowest prices canoe trips on the river.The company uses a differentiation strategy.

Question 30

The SWOT analysis is a well-known model that helps managers focus on the five most important competitive forces,or potential threats,in the external environment.

Question 31

Holding specific individuals or groups responsible for the attainment of corporate,divisional,and functional goals is the last step in implementing strategy.

Question 32

The first step in defining an organization's mission is to define its business.

Question 33

Though their prices are higher than other rental places,Comfy Canoes has premium canoes with contoured seats.The company uses a differentiation strategy.

Question 34

The cluster of decisions that managers make to assist an organization to achieve its goals is known as:

A)Strategy
B)Scenario planning
C)SWOT analysis
D)Diversification
E)Related diversification

Question 35

The last step in a SWOT analysis is to identify the organization's internal strengths and internal weaknesses.

Question 36

According to Michael Porter's theory,it is possible for managers to pursue both a low-cost strategy and a differentiation strategy at the same time.

Question 37

Managerial goals should be both challenging and realistic.

Question 38

The reason managers pursue vertical integration is that it allows them either to add value to their products by making them special or unique or to lower the costs of making and selling them.

Question 39

Synergy is obtained when the value created by two divisions operated separately and independently is greater than the value that would be created by two divisions cooperating.

Question 40

PepsiCo entering the snack food business with the purchase of Frito Lays is an example of a diversification corporate-level strategy.

Question 41

In the planning process,it is important to ensure that planning across the three different levels is:

A)Dependent
B)Static
C)Consistent
D)Complementary
E)Independent

Question 42

A plan that is updated and changed every year to take into consideration how the external environment and the organization's internal environment have changed since the plan was prepared,is known as ________.

A)A standing plan
B)A long-term plan
C)A rolling plan
D)A contingency plan
E)A scenario plan

Question 43

What type of plans are used in situations in which programmed decision making is appropriate?

A)Single use
B)Functional
C)Rolling
D)Scenario
E)Standing

Question 44

Because of the hostile external environment,RST Consulting treats its multiyear corporate-level plan as a ______ plan in order to maintain flexibility without losing sight of the need to plan for the long term.

A)Scenario
B)Short-term
C)Contingency
D)Rolling
E)Business

Question 45

Along with the need for unity,continuity and accuracy,what else did Fayol emphasize in the planning process?

A)Stability
B)Flexibility
C)Accountability
D)Feedback
E)Synergy

Question 46

Typically ______-level goals and strategies require intermediate- and short-term plans.

A)Functional
B)Business
C)Divisional
D)Corporate
E)Strategic

Question 47

General Electric Company sets a goal that every product line of the company should be either first or second in its industry in market share.What type of goal does this represent?

A)Corporate-level
B)Divisional-level
C)Functional-level
D)Business-level
E)Multidomestic-level

Question 48

GE Financial Services is an example of which level of management operations for General Electric Company?

A)Functional
B)Corporate
C)Divisional
D)Departmental
E)Top

Question 49

A general guide to action for the managers of an organization is known as:

A)A standing plan
B)A rule
C)A policy
D)An SOP
E)A scenario

Question 50

What type of plan enables managers to make midcourse corrections if environmental changes warrant or to change the thrust of the plan altogether if it no longer seems appropriate?

A)A standing plan
B)A long-term plan
C)A rolling plan
D)A contingency plan
E)A strategic plan

Question 51

Which type of strategy states the methods that a division within an organization will use to compete against its rivals in the industry?

A)Functional-level strategy
B)Departmental-level strategy
C)Corporate-level strategy
D)Business-level strategy
E)Top-level strategy

Question 52

A functional-level plan states the goals that the managers of each function will pursue to help their division attain its ______ goals,which,in turn,will allow the entire company to achieve its ______ goals.

A)Departmental-level;functional
B)Business-level;department
C)Divisional-level;divisional
D)Business-level;corporate
E)Functional-level;corporate

Question 53

Which type of organizational strategy states the industries and markets in which the organization intends to compete?

A)Divisional-level strategy
B)Departmental-level strategy
C)Functional-level strategy
D)Corporate-level strategy
E)Business-level strategy

Question 54

In large organizations the divisional level of management is also known as the:

A)Business level
B)Corporate level
C)Functional level
D)Departmental level
E)Top level

Question 55

Typically ______-level goals and strategies require long- and intermediate-term plans.

A)Functional
B)Business
C)Corporate
D)Both functional and business
E)Both corporate and business

Question 56

In large organizations the functional level of management is also known as:

A)Business level
B)Corporate level
C)Functional level
D)Departmental level
E)Top level

Question 57

Which plan of the organization contains top management's decisions about the organization's mission,goals,strategy,and structure?

A)Corporate-level plan
B)Divisional-level plan
C)Functional-level plan
D)Business-level plan
E)Departmental-level plan

Question 58

Which type of plan details the long-term divisional goals that will allow the division to meet corporate goals?

A)Functional-level plan
B)Business-level plan
C)Departmental-level plan
D)Corporate-level plan
E)Strategic-level plan

Question 59

What type of plans are developed to handle nonprogrammed decision making in unusual or one-of-a-kind situations?

A)Standing
B)Single-use
C)Strategic
D)Scenario
E)Rolling

Question 60

When Fayol stated that managers should attempt to collect and to use all available information in the organization's planning process,which aspect of planning was he emphasizing?

A)Unity
B)Flexibility
C)Continuity
D)Accuracy
E)Synergy

Question 61

A written set of instructions which describes the series of actions that a manager should take in a specific situation is known as:

A)A policy
B)A standard operating procedure
C)A heuristic
D)A standing plan
E)A scenario

Question 62

A group of managers analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment.What type of analysis is this?

A)Mission analysis
B)SWOT analysis
C)Functional analysis
D)Diversification
E)Related Diversification

Question 63

If there are ______ large suppliers of an important input,then suppliers can drive ______ the price of that input and result in ______ profits for companies in an industry.

A)Few,up,lower
B)Few,down,lower
C)Many,up,higher
D)Few,up,higher
E)Many,down,lower

Question 64

Permanent,ongoing,intense competition brought about by advancing technology or changing customer tastes,fads and fashions is referred to as:

A)Synergy
B)Porter's Five Force Model
C)The level of rivalry
D)Hypercompetition
E)Standing competition

Question 65

In performing a SWOT analysis,Campbell Soup Co.realized that the number of competing firms in their industry was increasing.Campbell Soup Co.would classify this as a(n):

A)S
B)W
C)O
D)T
E)Both S and W

Question 66

Organizational strengths (S)and weaknesses (W)are ______ and environmental opportunities (O)and threats (T)are ______.

A)Corporate-level,business-level
B)Business-level,corporate-level
C)Internal,external
D)External,internal
E)Functional-level,business-level

Question 67

In the Five Forces Model,the __________ that companies compete against one another for customers,the _________ the level of profits is likely to be for that industry.

A)More;lower
B)More;more
C)Less;lower
D)Less;less
E)More;lower

Question 68

An organization attempts to succeed by distinguishing its products from those of the competition.What type of strategy is this?

A)Differentiation strategy
B)Low-cost strategy
C)Related diversification strategy
D)Unrelated diversification strategy
E)Concentration on a single business strategy

Question 69

A formal,written guide to action for managers in an organization is known as:

A)A policy
B)A rule
C)A heuristic
D)A program
E)A plan

Question 70

ABC Manufacturing has a written statement regarding their zero-tolerance attitude towards sexual harassment.This statement is an example of:

A)A standing plan
B)A mission statement
C)A policy
D)A rule
E)A goal

Question 71

In performing a SWOT analysis,RST Consulting realized that its staff was relatively untrained.RST Consulting would classify this as a(n):

A)S
B)W
C)O
D)T
E)Both O and T

Question 72

Tim's Tropical Treats' competitive advantage is achieved by keeping production costs per unit below those of its competitors.Tim's Tropical Treats uses which type of strategy?

A)Focused differentiation strategy
B)Low-cost strategy
C)Related diversification strategy
D)Unrelated diversification strategy
E)Concentration on a single business strategy

Question 73

The Five Forces Model includes all these factors as major threats EXCEPT:

A)Potential for entry into the industry
B)Threat of complimentary products
C)Power of customers
D)Level of rivalry
E)Power of suppliers

Question 74

Though their prices are higher than other rental places,Comfy Canoes has premium canoes with contoured seats.The company uses:

A)Differentiation strategy
B)Low-cost strategy
C)Related diversification strategy
D)Unrelated diversification strategy
E)Concentration on a single business strategy

Question 75

As a part of its yearly planning activities,PDQ Financial Services generates a list of possible future forecasts of business situations and creates a plan to respond to each of these forecasts.PDQ Financial Services is practicing:

A)Single use planning
B)Ad hoc planning
C)Divisional-level planning
D)Scenario planning
E)Functional planning

Question 76

An organization attempts to gain a competitive advantage by aiming its efforts at driving down its production costs per unit below those of its competitors.This is known as which type of strategy?

A)Focused differentiation strategy
B)Low-cost strategy
C)Related diversification strategy
D)Unrelated diversification strategy
E)Concentration on a single business strategy

Question 77

To determine an organization's mission managers must first:

A)Perform a SWOT analysis
B)Apply the Five Forces Model
C)Define its business
D)Develop a long-term plan
E)Develop a short-term plan

Question 78

Though not formally written,at RST consulting employees are allowed to dress casually on Fridays.This general guide is called a:

A)Policy
B)Rule
C)Standard operating procedure
D)Standing plan
E)Code of Ethics

Question 79

Another name for contingency planning is:

A)Single use planning
B)Ad hoc planning
C)Business planning
D)Divisional-level planning
E)Scenario planning

Question 80

If ______ large customers are available to buy an industry's output,they can drive ______ the price of that output.As a result,industry producers make ______ profits.

A)Few,up,higher
B)Few,down,lower
C)Few,down,higher
D)Many,down,lower
E)Many,up,lower