Deck 4: Planning and Strategic Management

Question 1

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

Answer 1

False

Question 2

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.

Answer 2

B

Question 3

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

Answer 3

True

Question 4

Strategic planning involves making decisions about an organization's

A)short-term profits.
B)internal orientation.
C)immediate problems.
D)long-term goals.
E)minor targets.

Question 5

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

Question 6

Contingency plans could be referred to as ________ plans.

A)"dream team"
B)"someday"
C)"pie in the sky"
D)"what if"
E)"primary"

Question 7

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

Question 8

The first formal step in the planning process is goal and plan evaluation.

Question 9

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 10

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

Question 11

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 12

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 13

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

Question 14

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 15

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 16

The final step in the formal planning process-monitoring and controlling-is overemphasized by many companies.

Question 17

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

Question 18

A thorough environmental analysis includes a macroeconomic analysis.

Question 19

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

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

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 22

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 23

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 24

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 25

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 26

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 27

During which step of strategy implementation would an executive evaluate his or her company's ability to implement strategic tasks?

A)defining the strategic tasks
B)assessing organization capabilities
C)evaluating the competition
D)developing an implementation agenda
E)creating an implementation plan

Question 28

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 29

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 30

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 31

Most strategic control systems include which of the following in order to monitor and control major financial expenditures?

A)a vision statement
B)a mission statement
C)a budget
D)a SWOT analysis
E)a handbook

Question 32

A ________ provides a tool that managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play.

A)situational analysis
B)concentric diversification
C)goal flowchart
D)SWOT analysis
E)strategy map

Question 33

The groups and individuals who affect and are affected by the achievement of an organization's mission,goals,and strategies are known as

A)managers.
B)shareholders.
C)customers.
D)stakeholders.
E)employees.

Question 34

Production,human resources,marketing,research and development,finance,and distribution are considered a company's ________ areas.

A)functional
B)strategic
C)tactical
D)business
E)service

Question 35

Which of the following describes an organization's basic purpose?

A)the vision statement
B)strategic goals
C)business strategy
D)tactical planning
E)the mission statement

Question 36

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 37

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 38

________ 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 39

Businesses using a low-cost strategy attempt to offer a

A)luxury product at a mid-range price.
B)luxury product at a low price.
C)unique product at a mid-range price.
D)unique product at a low price.
E)no-frills product at a low price.

Question 40

Marcela's Mini Pizzas tries to offer higher-quality food products,more product variety,and wider distribution than its competitors do.What business strategy is Marcela's Mini Pizzas pursuing?

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

Question 41

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 42

A method used for aligning an organization's operational and strategic goals is a

A)strategy map.
B)decision tree.
C)GANTT chart.
D)demand curve.
E)strategic graph.

Question 43

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 44

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 45

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 ________ plan.

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

Question 46

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 47

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 48

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 49

The level of planning that involves the least amount of details is

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

Question 50

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 51

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 52

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 53

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 54

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 55

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 56

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.

Question 57

The three levels of planning coordinate with the three levels of

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

Question 58

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 59

Operational planning is done by ________ managers.

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

Question 60

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 61

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 62

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 63

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 64

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 65

An example of a tangible asset is

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

Question 66

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 67

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 68

"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 69

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

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

Question 70

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 71

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

A)strategic maneuvering.
B)environmental analysis.
C)strategic management.
D)operational planning.
E)strategic planning.

Question 72

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 73

Which of the following does environmental analysis examine?

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

Question 74

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 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

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 77

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 78

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 79

An example of an intangible asset is

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

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