Management Lesson 5 (Ch. 4): Planning & Strategic Management – Flashcards
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T
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(T/F) When using scenario planning, a different contingency plan is attached to each scenario.
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F
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(T/F) The final step in the formal planning process, monitor and control is often overemphasized.
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F
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(T/F) Making decisions about the organization's short-term goals and strategies is called strategic planning.
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F
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(T/F) An organization's strategic and tactical plans must be based upon the original operational plans.
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(T/F) A strategic map provides managers with a tool to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play in helping to achieve them.
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F
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(T/F) Traditionally, strategic planning has emphasized a bottom-up approach.
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(T/F) Strategic management involves managers from all parts of the organization in the formulations and implementation of strategic goals and strategies.
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F
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(T/F) The strategic management process includes four major components.
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(T/F) An organization's mission statement describes the company's basic purpose.
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(T/F) An organization's mission statement is long-term oriented while a strategic vision is short-term oriented.
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(T/F) The mission and vision of an organization evolve from its strategic goals.
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F
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(T/F) Stakeholders are groups and individuals who affect and are affected only by the cost analysis of the company.
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(T/F) An environmental analysis should include buyers, suppliers, government and regulatory agencies and trade associations.
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(T/F) It is more complex and time consuming to conduct an environmental analysis of diversified companies.
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(T/F) One critical task in environment analysis is forecasting future trends.
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(T/F) Resources are inputs to production that can be accumulated over time to enhance performance.
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(T/F) A core competence is something a company does poorly in, compared to its competitors.
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(T/F) When resources are valuable, difficult to imitate and organized, they can be viewed as a company's core competencies.
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F
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(T/F) When a manager tries to understand "best practices" in his/her industry, he/she is practicing "bootlegging".
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F
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(T/F) A concentration strategy involves expanding the domain of the organization into supply channels and to distributors.
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T
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(T/F) The Boston Consulting Group Matrix helps managers of individual businesses develop strategies to improve their competitiveness.
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(T/F) Businesses using a low-cost strategy attempt to be efficient and offer a standard, no-frills product.
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F
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(T/F) Functional strategies are implemented at the top levels of management.
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T
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(T/F) A strategic control system must simultaneously pursue both efficiency and effectiveness.
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D
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Which of the following does NOT describe good plans in organizations? A. They are flexible B. They provide a clear road map C. They are purposeful D. They may be formal or informal E. They are directed and controlled by managers
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B
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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
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A
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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
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C
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The outcome of situational analysis is: A. The identification of alternative plans of action B. The identification of contingency plans to be followed under various scenarios C. The identification of planning assumptions, issues and problems D. The identification of the consequences of those alternatives under consideration E. None of the above
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A
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The targets or ends the manager wants to reach are called: A. Goals B. Plans C. Mission statement D. Vision E. None of the above
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E
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To be effective, goals should be all of the following EXCEPT: A. Specific B. Measurable C. Attainable D. Relevant E. All of the above are correct
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A
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Goals established during the planning process must be based upon A. The situational analysis B. The probability of success C. The needs of management personnel D. All of the above E. None of the above
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A
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Plans are: A. Actions taken to achieve goals B. Targets a manager wants to reach C. Specific to differing industries D. Inappropriate when resources are scarce E. All of the above
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B
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A plan designed to achieve a set of goals that are not likely to be repeated in the future is called a(n): A. Standing plan B. Single-use plan C. Strategy D. Mission statement E. None of the above
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A
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A plan which focuses on ongoing activities and may become a more permanent policy or rule is called a(n): A. Standing plan B. Single-use plan C. Strategy D. Mission statement E. None of the above
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B
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A plan to integrate new employees into a new system of payroll is an example of which type of plan? Assume that you anticipate making this change only once. A. Standing plan B. Single-use plan C. Implementation plan D. On-site plan E. None of the above
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C
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The different types of effective plans include: A. Inconsistent B. Complex C. Standing D. Artificial E. All of the above
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A
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A policy developed for the yearly graduation ceremony at Easy Town High School can de described as a(n): A. Standing plan B. Single-use plan C. Contingency plan D. "What-if" plan E. Unprofessional plan
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C
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If expansion to Australia does not materialize, Widget, Inc.'s backup plan is to expand to Asia. This backup plan is an example of: A. Strategic plan B. Single-use plan C. Contingency plan D. Standing plan E. Trial-and-error plan
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C
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_____________ plans might be referred to as "what-if" plans. A. Single-use B. Strategic C. Contingency D. Standing E. None of the above
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B
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The _______________ stage should identify the priorities and trade-offs among goals and plans. A. Goal and plan evaluation B. Goal and plan selection C. Implementation D. Monitor and control E. Alternate goals and plans
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A
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BR Associates often uses groups to consider the advantages, disadvantages and potential effects of goals and plans. BR Associates is involved in which basic planning stage? A. Goal and plan evaluation B. Goal and selection C. Implementation D. Monitor and control E. Alternate goals and plans
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B
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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. None of the above
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B
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Goal and plan selection: A. Relies exclusively on experienced judgment B. Relies on experienced judgment to assume an important role C. Relies on experienced judgment to play a minor role D. Will suffer if experienced judgment is relied upon E. Cannot consider experienced judgment but facts to play a role
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C
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Implementation of selected goals and plans will be most successful when: A. Only managers participate in the planning process 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. All of the above
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C
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When a goal and accompanying plans are selected, the other plans which were previously under consideration may be: A. Discarded B. Retained as "back-up" plans since selected plans often fail C. Used as contingency plans for various scenarios that may develop D. Developed thoroughly for feasibility studies of failed scenarios E. None of the above
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C
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Which step in the formal planning process is sometimes ignored? A. Goal and plan evaluation B. Situational analysis C. Monitor and control D. Implementation E. Alternative goals and plans
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B
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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. Measurable performance indicators C. A "control leader" D. Contingency plans for various scenarios E. Strategic planning motives
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C
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The three levels of planning are: A. Strategic, business and operational B. Strategic, synergistic and operational C. Strategic, tactical and operational D. Visionary, strategy and operational E. None of the above
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C
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A set of procedures for making decisions about the organization's long-term goals and strategies is called _____________. A. Mission statement B. Vision statement C. Strategic planning D. Tactical planning E. Operational planning
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E
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The level of planning involving the longest time frames: A. Operational planning B. Missionary planning C. Tactical planning D. Departmental planning E. Strategic planning
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E
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Who is responsible for strategic planning? A. The chief executive officer B. Middle management C. First-line supervisors D. Tactical managers E. Top level managers
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D
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Strategic goals are: A. Major targets that relate to the organization in the long-term B. Focused on effectiveness C. Focused on efficiency D. All of the above E. None of the above
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B
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Examples of strategic goals are: A. Production scheduling, training of personnel, accounting procedures, updating equipment used B. Profit levels, share value, growth, return on investment, societal impact C. Advertising expenditures, sales levels, product use innovations, customer feedback levels D. Absenteeism levels, benefit usage and value, human resource utilization, compliance with civil rights laws E. All of the above
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C
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A pattern of actions and use of resources which is developed with the intention to achieve the goals of an organization is referred to as: A. Strategic goals B. Tactical plans C. A strategy D. Strategic operationalizing E. Mission development
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B
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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. Synergy
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A
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Typical operational planning might focus on: A. Production scheduling, training of personnel, accounting procedures, updating equipment used B. Profit levels, share value, growth, return on investment, societal impact C. Advertising expenditures, sales levels, product use innovations, customer feedback levels D. Absenteeism levels, benefit usage and value, human resource utilization, compliance with civil rights laws E. All of the above
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E
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An organization's strategic, operational and tactical goals must be: A. Aligned B. Consistent C. Mutually supportive D. Focused on company purpose E. All of the above
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B
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Typical tactical planning might include all but one of the following. Which one? A. Production scheduling, training of personnel, accounting procedures, updating equipment used B. Profit levels, share value, growth, return on investment, societal impact C. Advertising expenditures, sales levels, product use innovations, customer feedback levels D. Absenteeism levels, benefit usage and value, human resource utilization, compliance with civil rights laws E. All of the above are examples of tactical planning
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B
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_______ planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization. A. Operational B. Tactical C. Traditional D. Bottom-up E. Objective
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A
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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
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B
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Strategy map might include all of the following information except: A. Financial goals B. Short term value C. Customer goals D. Internal goals E. Learning and growth goals
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B
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Traditionally, strategic planning has emphasized a _______ approach. A. Trial-and-error B. Top-down C. Bottom-up D. Consultative E. None of above
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B
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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 B. Strategic management C. Environmental analysis D. Operational planning E. Strategic planning
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E
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Which of the following is NOT a component of strategic management? A. Establishment of mission, vision and goals B. SWOT analysis C. Strategy formulation D. Strategy implementation E. Daily operational guidelines
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B
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A business's basic statement of purpose refers to: A. A vision B. A mission C. A strategy D. A policy E. An objective
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B
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"To be the world's best quick-service restaurant experience" is an example of a(n): A. Vision statement B. Mission statement C. Tactical goal D. Operational goal E. Idea
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B
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The ________ states an organizations basic purpose. A. Vision B. Mission C. Revenue D. Strategy E. Policy
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D
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Strategic goals evolve from an organization's: A. Vision B. Customers C. Tactical plans D. Mission E. Both A and D are correct
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C
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The long-term direction and strategic intent of a company refers to its: A. Purpose B. Mission C. Vision D. Goals E. Objectives
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B
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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. None of the above
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E
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Environmental analysis examines all of these except: A. The industry B. Stakeholders C. Stockholders D. Organizational culture E. Environmental analysis examined all of these
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E
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Stakeholders are: A. Those who are affected by an organization B. Those who might affect an organization C. Those who own an organization D. Those who work in an organization E. All of the above
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A
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The internal analysis component of the strategic management process assesses A. The organization's performance levels B. The organization's competitors C. The organization's industry growth rate D. The organization's product substitutions in the market E. All of the above
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C
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Inputs to a system that can enhance performance are called: A. Strategies B. Core competencies C. Resources D. Benchmarks E. None of the above
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B
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Tangible assets include: A. Patents B. Real estate C. Goodwill D. Technical knowledge E. None of the above
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A
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Intangible assets include: A. Patents B. Real estate C. Production facility D. Raw materials E. None of the above
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D
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Developing a competitive advantage depends upon: A. Strong financial backing of stakeholders B. Securing exclusive rights to technological applications C. Acceptance of constant change D. Identifying core competencies E. All of the above
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C
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A set of skills or expertise that company utilizes better than the competition is referred to as: A. Strategic advantage alliances B. Better business benefits C. Core competencies D. Dated benchmarks E. None of the above
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E
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Resources are a source of competitive advantage when: A. They are difficulty to imitate B. They are well organized C. They are rare D. They create customer value E. All of the above are correct
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A
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The process of assessing how well one company's basic functions and skills compare to those of some other company is called: A. Benchmarking B. Comparative analysis C. Strategic planning D. Operational planning E. None of the above
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C
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Rock Bottom Pizza, a chain of full-service pizzerias, periodically compares its quality and service levels to other restaurants in order to continually improve their own performance. This practice is known as: A. Anti-trust promotion B. Investigative competition C. Benchmarking D. Trade studying E. Corporate spying
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A
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SWOT analysis includes: A. Opportunities B. Websites C. Situations D. Time E. All of the above
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B
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A technique for assessing the organization's internal and external environments is called a ________. A. BCG matrix B. SWOT analysis C. Benchmarking D. Diversification E. Functional strategy
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E
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Identification of the industry (or industries) in which an organization is to compete is referred to as _______________ strategy. A. Business B. Industry C. Portfolio D. Functional E. Corporate
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A
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A strategy that operates a single business and competes in a single industry is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. None of the above
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B
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The acquisition or development of new businesses that produce parts or components of the organization's product is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. None of the above
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C
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A strategy used to add new businesses that produce related products or are involved in related markets and activities is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. One of the above
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D
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A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. None of the above
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B
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In order to reduce production costs, Everlasting Tire decided to buy out a rubber plant and begin manufacturing their own rubber for their tires. This strategy is an example of A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. Differentiation
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B
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Although Party Beverage Company had focused only on alcohol products for the past two decades, the company is now considering entering the soft drink arena as well. Such a strategy would illustrate: A. Vertical integration B. Concentric diversification C. Conglomerate diversification D. Concentration E. Differentiation
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C
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GR Real Estate, Inc. recently decided to diversify from its original base in real estate to several wide-ranging industries such as trucking, lawn mower manufacturing and catering. This strategy is an illustration of: A. Vertical integration B. Concentric diversification C. Conglomerate diversification D. Concentration E. Differentiation
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D
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McDonald's would appear to be following which type of corporate strategy? A. Conglomerate strategy B. Market focus strategy C. Concentric diversification D. Concentration strategy E. Vertical strategy
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C
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When large grocery stores build regional distribution warehouses for exclusive distribution of their product mix, which type of corporate strategy is being employed? A. Concentration strategy B. Conglomerate diversification C. Vertical integration D. Concentric diversification E. None of the above
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B
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If Estee Lauder (the cosmetics company) added a tire store to its businesses, it would describe which type of corporate strategy? A. Concentration strategy B. Conglomerate diversification C. Vertical integration D. Concentric diversification E. None of the above
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E
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The Boston Consulting Group Matrix is intended for: A. Generating profits for the Boston Consulting Group B. A business' growth rate and relative strength in the market C. A business' financial success and strength of reputation in the market D. Long-term corporate planning E. Evaluating competitiveness and resource allocation
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D
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The O'Brien Corporation is evaluating the purchase of a small firm which manufactures doodads. Doodads are expected to revolutionize the home construction industry. The firm which may be purchased has only a minor share of this growing market but the market is expected to grow rapidly. What would this firm be considered according to the Boston Consulting Group Matrix? A. A cash cow B. A star C. A satellite D. A question mark E. A dog
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D
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Given that Kleenex Facial Tissue has the largest market share but is in a declining growth industry, it is probably safe to assume that Kleenex Facial Tissue would be located where on the Boston Consulting Group Matrix for its parent corporation? A. As a dog B. As a question mark C. As a star D. As a cash cow E. As a resource burner
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A
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A "star" on the Boston Consulting Group Matrix represents a company: A. With strong market share in a high growth industry B. With weak market share in a high growth industry C. With strong market share in a low growth industry D. With weak market share in a low growth industry E. That would be divested as soon as possible
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B
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If a business gains market share while the industry market growth remains high, it would move from being classified as a _______________ to a _______________ according to the BCG matrix. A. Start, question mark B. Question mark, star C. Cash cow, dog D. Dog, cash cow E. Star, cash cow
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B
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The major actions by which a business competes in a particular industry to market is called: A. Corporate strategy B. Business strategy C. Functional strategy D. BCG matrix plan E. Situation analysis
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A
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Southwest Airlines and Wal-Mart use which business strategy? A. Low-cost B. Differentiation C. Dog D. Question mark E. Benchmarking
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A
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When a company attempts to establish itself as uniquely able to offer a product or service, it is using ______________ strategy. A. Differentiation B. Diversification C. Dimensional issue D. Demand/supply E. Dimensional studies
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A
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Functional strategies refer to: A. Those utilized by specific functional areas of a business to support the business strategy chosen by that business B. Those utilized by top management in developing the corporate structure and resource allocation C. Those strategies voted on by the Board of Directors D. Those strategies that function as corporate benchmarks for evaluating corporate performance E. None of the above
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C
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The most effective strategy is: A. One that most firms in the industry are following B. To always diversify C. One that competitors are unwilling or unable to imitate D. To be the "first mover", regardless of other factors E. To be a follower
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B
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Which of the following is NOT a step in the strategy implementation process? A. Define strategic tasks B. Assess industry capabilities C. Develop an implementation agenda D. Create an implementation plan E. All of the above are correct
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A
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The first step in strategy implementation is: A. Define strategic tasks B. Develop an implementation agenda C. Create an implementation plan D. Assess organizational capabilities E. Develop a mission statement
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D
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The final component of the strategic management process is strategic: A. Implementation B. Visioning C. Formulation D. Control E. Cultural balancing
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