question

The duration over which a plan is intended to be applied or endured is called ______.

answer

A time horizon

question

A firm has a formal, written guide regarding its zero-tolerance attitude toward sexual harassment and the consequences of its violation. By definition, this is a ______ of the firm.

answer

Rule

question

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

answer

Standard operation procedure

question

______ are used in situations in which programmed decision making is appropriate.

answer

Standing plans

question

A standing plan that acts a general guide to action that applies to the employees of an organization is called a _______.

answer

Policy

question

Policies, rules, and standard operating procedures (SOPs) are all types of ______ plans.

answer

Standing

question

A _______ is a cluster of decisions about what goals to pursue, what actions to take, and how to use the resources to achieve goals.

answer

Strategy

question

A ______ broadly defines an organization's purpose - what it is seeking to achieve from its activities - identifies what is unique or important about its products to its employees and customers, and also distinguishes or differentiates the organization in some ways from its competitors.

answer

Mission statement

question

The first step in planning for an organization is:

answer

Determining the organization's missions and goals

question

The first step in implementing a strategy is:

answer

Allocating responsibility for implementation to the appropriate individuals or groups

question

_______ is the finals step in implementing strategy.

answer

Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals

question

A group of managers analyze 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 true?

answer

SWOT analysis

question

According to an organization's SWOT analysis, which of the following would be a potential strength?

answer

The organization has the highest profit margin its market.

question

In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as a ______.

answer

Weakness

question

Which of the following will most likely be an opportunity according to an organization's SWOT analysis?

answer

The company can probably takeover one of its bankrupt competitors.

question

In performing a SWOT analysis, a furniture company realized that the number of competing firms in its industry was increasing. The company would classify this as a _______.

answer

Threat

question

_______ is a plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's good and services.

answer

Functional-level strategy

question

An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a _______.

answer

Differentiation strategy

question

Most electronic goods have the option of changing the operating language. This is done by manufacturers so that the same electronic device can be supplied and marketed around the world. The manufacturers in this case are applying a _________.

answer

Global strategy

question

In order to cater to local states and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers customized versions of its menu to suit different countries. This is an example of _______.

answer

Multidomestic strategy

question

Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses is called _______.

answer

Related diversification strategy

question

Cameo Ltd., a record label company, subsequently entered the airline industry to expand business. This example of a record company entering the airline industry is an example of _______.

answer

Unrelated diversification

question

A toy manufacturing company which previously sold its products through a popular toy and juvenile-product retailer decides to enter the retail industry, quickly establishing several retail outlets exclusively for its products. The toy manufacturing company is engaging in _____.

answer

Forward vertical integration

question

________ is a corporate-level strategy in which a company expands its business operations into a new industry that produces inputs for the company's products.

answer

Backward vertical integration

question

The pharmaceutical industry is extremely dynamic. A company that releases a product to the general public with the intention of keeping prices may see quick competition arising from other products made from different compounds that perform the same functions as the company's product. According to the five forces model, this type of threat is called _______.

answer

The threat of substitute products

question

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.

answer

More; lower

question

Which of the following can be defined as a threat according to the five forces model?

answer

Only a few larger customers are available to buy an industry's output.

question

A _______ strategy indicates how a division intends to compete against its rival in an industry.

answer

Business-level

question

Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure is called an organization's _____ plan.

answer

Business-level

question

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

answer

Business-level; corporate

question

An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a ________.

answer

Differentiation strategy

question

Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true?

answer

Extremely well managed companies may be able to keep low costs and differentiate their products.

question

As part of its yearly planning activities, PDQ Financial Services generates a list of possible future scenarios and creates a plan to respond to each of those forecasts. PDQ financial Services is practicing ______.

answer

Contingency planning

question

Another name of contingency planning is ______.

answer

Scenario planning

question

The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifies all the departments associated with the division. The departmental managers must alter their ______ to accommodate the earlier release date.

answer

Functional-level plan

question

________ is a plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services.

answer

Departmental-level strategy

question

A furniture company is trying to keep the costs of the company low by switching its suppliers and ordering materials in larger quantities to reduce overall costs. The company is employing a ______.

answer

Low-cost strategy

question

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as:

answer

Licensing

question

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is referred to as:

answer

Franchising

question

Which method of international expansion poses the least amount of risk?

answer

Exporting

question

The method of international expansion which presents managers with many threats and is the most expensive due to the high level of foreign investment is the method of international expansion through ______.

answer

Wholly owned subsidiaries

question

Nokia has established production operations in foreign countries to sell its phone in those regions. The production operations perform as separate entities without any local direct involvement. These products are ______ of Nokia.

answer

Wholly owned subsidiaries

question

Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericcson combining a part of their resources to manufacture mobile phones is an example of a ________.

answer

Joint venture

question

Top management's decisions pertaining to the organization's mission, overall strategy, and structure constitute an organization's _______.

answer

Corporate-level plan

question

There has been a rapid increase in the percentage of the population of a third-world nation switching to cellular technology in recent years. A major multinational telecommunications services company decides to take advantage of this change and plans to setup an industry in the country with the intention of dominating the country's telecommunication market. This is an example _______.

answer

Corporate-level strategy

question

In a first of its kind, a multinational tire manufacturer introduces a new range of premium tires that can handle extreme temperatures better at a higher price. The tires are designed keeping in mind the climatic conditions in the Middle East and products are marketed only in the Middle East. The manufacturer is pursuing ______.

answer

Focused differentiation strategy

question

Selling the same standardized product and using the same basic marketing approach in each national market is called.

answer

Global strategy

question

A _______ 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?

answer

Rolling plan

question

Because of the hostile external environment, AKY 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.

answer

Rolling

question

Plans that are developed to handle nonprogrammed decision making in unusual or one-of-a-kind situations are called ______.

answer

Single-use plans

question

There is a constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customer tastes. This is called ________.

answer

Hypercompetition

question

______ is a corporate-level strategy that emphasized reinvesting a company's profits in strengthening its competitive position in its current industry.

answer

Concentration on a single industry

question

To determine an organization's missions and goals, manager must first ______.

answer

Define its business

question

Employees tend to be motivated to perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essential for top managers to develop a strong sense of ______.

answer

Strategic leadership

question

An agreement in which managers pool or share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture is called a ______.

answer

Strategic alliance

question

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

answer

Departmental level

question

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

answer

Functional

question

The managers of an organization develop a single, well-researched, and effective plan to complete a set of tasks. Which of the following qualities, according to Henri Fayol, does this plan have?

answer

Unity

question

According to Henri Fayol, an effective plan should have four qualities, namely, unity, continuity, accuracy, and ______.

answer

Flexibility

question

According to Henri Fayol, ____ means that managers need to make every attempt to collect and use all available information in the organization's planning process.

answer

Accuracy

question

Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and reduce fixed costs. This is an example of _____.

answer

Synergy

MNP Chapter 8 – Flashcards

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