Deck 4: Foundations of Planning

Question 1

Studies of planning show that the key to successful planning is to make sure that the plans ________.

A)are high in quality and appropriately implemented
B)are only shared with top level managers
C)cover every possible detail
D)are easily achievable

Answer 1

A

Question 2

A major argument for formal plans is that they can replace intuition and creativity.

Answer 2

False

Question 3

In informal planning,goals are usually ________ shared with others in the organisation.

A)written,but little is
B)written and much is
C)unwritten,but much is
D)unwritten and little is

Answer 3

D

Question 4

Failing to discard successful plans from the past is likely to lead to ________.

A)failure because of the low quality of the plans
B)more success because conditions are unlikely to change in the future
C)success because of the high quality of the plans
D)failure because conditions are likely to change in the future

Question 5

All managers plan in some way,either formally or informally.

Question 6

Organisations that don't formally plan may be more likely to have ________.

A)multiple departments performing the same task
B)a single department carrying out all company functions
C)a strong sense of direction
D)legal problems

Question 7

One criticism of formal planning is that it focuses on how to beat the competition rather than how to ________.

A)create a win-win situation with the competition
B)replicate the competitor's success
C)have cordial relationships with the competition
D)focus on new opportunities

Question 8

The four reasons that organisations plan is to provide direction,set standards,reduce threat,and reduce uncertainty and the impact of change.

Question 9

Planning gives organisations a way to deal with change that ________.

A)reduces certainty
B)increases ambiguity
C)reduces uncertainty
D)eliminates all uncertainty

Question 10

Which of the following is a reason for managers to plan?

A)To deal with change.
B)To minimise waste.
C)To give direction to an organisation.
D)All of the above.

Question 11

Contemporary research shows that planning and performance ________.

A)have a generally bidirectional relationship
B)are not generally related
C)have a generally positive relationship
D)have a generally negative relationship

Question 12

An organisation's creative ability is independent of its formal planning process.

Question 13

One effect of planning on managers is that it forces them to ________.

A)ignore any change that doesn't directly affect them
B)work to prevent change
C)anticipate and consider the effect of change
D)fear change

Question 14

A key function of planning is to create the SWOT analysis.

Question 15

Studies of performance in organisations that plan have reached ________ with respect to the benefits of formal planning.

A)no conclusion
B)extremely negative conclusions
C)generally positive conclusions
D)somewhat negative conclusions

Question 16

Which of the following is NOT a function of planning?

A)Formulating strategies.
B)Settling disputes between employees.
C)Coordinating organisational activities.
D)Identifying a strategy for attaining goals.

Question 17

Planning is concerned with ________.

A)ends only
B)means only
C)neither ends nor means
D)both ends and means

Question 18

An organisation's ability to assess its progress is not affected by its planning abilities.

Question 19

Managers who fail to plan may ________.

A)stimulate change
B)take advantage of change
C)be positively affected by change
D)be adversely affected by change

Question 20

Planning gives organisations direction that primarily helps them ________.

A)improve morale of all employees
B)improve teamwork and coordinate activities
C)improve morale of middle managers
D)improve their image in the business community

Question 21

A major strength of formal planning is that it reinforces past successes and incorporates them into the future.

Question 22

An external analysis,the second step of the strategic management process,helps identify ________.

A)a company's opportunities and threats
B)the financial ratios the company should use
C)a company's strengths and weaknesses
D)the short-term goals for a company

Question 23

In a short essay,define planning and compare formal and informal planning as they are used in various organisations.

Question 24

A mission statement does NOT include which of the following?

A)Strategy for success.
B)The company's basic beliefs.
C)The company's responsiveness to societal and environmental concerns .
D)The customers of a company.

Question 25

Managers who make formal plans are more likely to help an organisation 'break the mould' and carry out truly groundbreaking work that redefines an entire industry.

Question 26

Managers can often point to environmental factors when explaining how their formal plan did not lead to better organisational performance.

Question 27

The three different types of strategies that managers implement are ________.

A)corporate,competitive,functional
B)public,private,functional
C)long-term,short-term,functional
D)competitive,non-competitive,long-term

Question 28

Successful planning depends more on what managers plan than the quality of their planning.

Question 29

A mission statement includes identification of an organisation's ________.

A)strengths and weaknesses
B)directional and specific plans
C)products and philosophy
D)short-term and long-term plans

Question 30

Once SWOT analysis is complete,managers ________ to address the issues that came up during the analysis.

A)eliminate strategies
B)implement strategies
C)formulate strategies
D)evaluate strategies

Question 31

Which term refers to an organisation's capital,workers and patents?

A)Core competencies.
B)Competitive advantage.
C)Internal strengths.
D)Resources.

Question 32

The first step in the six-step strategic management process is to ________.

A)analyse the organisation's strengths and weaknesses
B)identify the organisation's mission,goals,and strategies
C)identify strategies to reach the organisation's goals
D)implement strategies

Question 33

When a company has competitive capabilities that assist in creating market value,these are known as ________.

A)core competencies
B)internal strengths
C)market capabilities
D)sustainable capabilities

Question 34

SWOT analysis identifies and analyses an organisation's ________.

A)human resource assets
B)opportunities,threats,weaknesses and strengths
C)long-term goals
D)strategy for competing in the market

Question 35

A major strength of formal planning is that it generally correlates with higher profits.

Question 36

Together,an organisation's resources and core competencies make up which of the following?

A)Core assets.
B)Fundamental beliefs.
C)Core philosophy.
D)Competitive weapons.

Question 37

In a short essay,explain the paradox of formal planning;how can it reinforce success,yet still lead to failure?

Question 38

A corporate strategy focuses primarily on ________.

A)an organisation's key competitors
B)an organisation's core competencies
C)an organisation's mission
D)an organisation's strengths

Question 39

In a short essay,list and discuss two reasons for planning.

Question 40

An internal analysis,the third step of the strategic management process,helps identify ________.

A)values and philosophy
B)resources and capabilities
C)opportunities and threats
D)the financial ratios the company should use

Question 41

A company that looks for a niche in the market is following which strategy?

A)Retrenchment.
B)Focus.
C)Differentiation.
D)Corporate.

Question 42

Virgin Blue acquiring Tiger Air is an example of which of the following?

A)Diversification.
B)Horizontal integration.
C)Vertical integration.
D)Concentration.

Question 43

Competitive advantages for a high-prestige,premium coffee franchise like Gloria Jean's are likely to include all of the following EXCEPT ________.

A)high quality
B)pleasant venues
C)lowest prices
D)well-trained employees

Question 44

Up to now your success has been based on selling high-quality tacos and burritos at a price that others can't match.Your business is pursuing which of Porter's strategies?

A)Cost leadership strategy.
B)Differentiation strategy.
C)Competitive advantage strategy.
D)Focus strategy.

Question 45

Metcash (owner of the IGA supermarket group)increasing its supermarket holdings is an example of which of the following?

A)Vertical integration.
B)Concentration.
C)Horizontal integration.
D)Diversification.

Question 46

You are thinking of buying a tortilla factory in a nearby state.This action would be an example of ________.

A)vertical integration
B)diversification
C)horizontal integration
D)concentration

Question 47

This term describes an electric shaver company that carefully observes its competitor's production line to look for ways to improve its own manufacturing process.

A)Reverse marketing.
B)Trademarking.
C)Benchmarking.
D)Quality engineering.

Question 48

The ________ strategy occupies the level below the corporate strategy.

A)functional
B)performance
C)competitive
D)business unit

Question 49

Two companies that both sell surfing gear combine.What are they doing?

A)Backward vertical integration,because they are sharing distribution.
B)Diversifying,because they both sell the same products.
C)Integrating vertically,because they both sell the same products.
D)Integrating horizontally,because they both sell similar products.

Question 50

An egg-producing company decided to expand and open its own retail outlets.This is an example of ________.

A)horizontal integration
B)sideway integration
C)concentration
D)vertical integration

Question 51

When Google purchased YouTube,a company that featured different but related products,Google was engaging in which of the following?

A)Backward vertical integration.
B)Concentration.
C)Diversification.
D)Forward vertical integration.

Question 52

Which of the following would you expect to find in a clothing store that follows a cost leadership strategy?

A)Pampered,personalised service.
B)Only finest,most expensive materials.
C)Basic,no frills,practical items.
D)State-of-the-art design.

Question 53

Which of the following is NOT a competitive strategy?

A)Cost leadership.
B)Focus.
C)Differentiation.
D)Quality focus.

Question 54

Growth strategies include ________.

A)integration,allocation,horizontal diversification,vertical diversification
B)diversification,concentration,integration,stabilisation
C)vertical integration,horizontal integration,lateral integration,horizontal concentration
D)vertical integration,horizontal integration,concentration,diversification

Question 55

A company with a differentiation strategy focuses on making its products or services ________.

A)affordable
B)familiar
C)similar to its competitors
D)unique and special

Question 56

A cost leadership competitive strategy focuses on which of the following?

A)Innovation.
B)Luxury.
C)Elegant design.
D)Lowest prices.

Question 57

Two movie studios combining to form one larger studio is an example of which of the following?

A)Forward vertical integration.
B)Backward vertical integration.
C)Diversification.
D)Horizontal integration.

Question 58

To address limited,short-term problems,a company is most likely to employ a ________ strategy.

A)retrenchment
B)turnaround
C)doomsday
D)self-critical

Question 59

Troubled companies seek ________ to address serious problems.

A)corporate strategies
B)competitive strategies
C)vertical and horizontal strategies
D)renewal strategies

Question 60

A company that is on the verge of collapse or bankruptcy might employ which strategy?

A)Retrenchment.
B)Hunker down.
C)Incremental improvement.
D)Turnaround.

Question 61

Capabilities are 'what' an organisation has;resources are 'how' it uses what it has.

Question 62

In a short essay,describe the final four steps in the strategic management process.

Question 63

Which of the following best defines goals?

A)Desired outcomes for the future.
B)Unlikely outcomes for the future.
C)Likely outcomes for the future.
D)Short-term targets.

Question 64

Recently,Taco Rocket has considered buying a local competitor and the two would combine under the Taco Rocket name.This is an example of which of the following?

A)Diversification.
B)Horizontal integration.
C)Vertical integration.
D)Stability.

Question 65

Core competencies include an organisation's major capabilities and its resources.

Question 66

The first step in the strategic management process is analysing the external environment.

Question 67

'Build a better mousetrap' is a way of describing a competitive advantage.

Question 68

Strategic management is the act of figuring out how an organisation will compete in the marketplace and attract loyal customers.

Question 69

A focus strategy seeks to appeal to a narrow segment of a market.

Question 70

For a limited time,Taco Rocket is thinking of coming out with a new Fifth Degree Burrito that is so hot it 'burns a hole in the plate'.Catering to the small segment of the market that likes super-hot food is an example of a ________.

A)long-term strategy
B)focus strategy
C)differentiation strategy
D)cost leadership strategy

Question 71

SWOT analysis includes the identification of an organisation's strengths,weaknesses,opportunities and threats.

Question 72

If a company wants to employ a competitive strategy,what are their three strategic options?

Question 73

The final three steps in the strategic management process involve the creation,implementation and evaluation of strategies for realising organisational goals.

Question 74

When going through the strategic management process,a company first formulates the strategy,and then undertakes a SWOT analysis.

Question 75

Strategic management aims to enable the organisation's departments to work independently to achieve structural goals.

Question 76

A company with a stability strategy will plan to dramatically increase market share in a highly competitive market.

Question 77

If a company wants to adopt a corporate strategy,what are their three strategic options?

Question 78

An external analysis will identify the threats to a company's well-being,but not opportunities for success.

Question 79

The most drastic renewal strategy an organisation can carry out is a retrenchment strategy.

Question 80

What are the six steps of the strategic management process?