test 2 part 2

Chapter 8 Review:  Planning

MULTIPLE CHOICE QUESTIONS

23) ________ involves defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.

C) Planning

24) Which of the following is one of the reasons why managers should plan?

A) When work activities are coordinated around plans, inefficiencies become obvious.

27) When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure?

D) Constraints of the external environment.

28) Goals are different from plans because ________.

D) goals are desired outcomes, and plans describe how those outcomes will be accomplished

30) Which of the following statements is true regarding an organization's goals?

C) Using a single goal such as profit may result in unethical behaviors by employees.

39) ________ plans apply to the entire organization and establish the organization's overall goals.

B) Strategic

40) Plans that encompass only the production process of a company are termed _____ plans.

A) operational

44) ________ plans are plans that are clearly defined and leave no room for interpretation.

D) Specific 

46) A standing plan is ________.

A) an ongoing plan that provides guidance for activities performed repeatedly

49) In ________, all goals are set by top managers flow down through the organization and become subgoals for each organizational area.

C) traditional goal setting

52) A problem associated with traditional goal setting is that ________.

C) clarity is lost as the goals make their way down from the top of the organization to lower levels

55) ________ is a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance.

A) Management by objectives

56) Which of the following is one of the elements of a management by objectives (MBO) program?

B) performance feedback

57) Which of the following is one of the elements of a management by objectives (MBO) program?

B) participative decision-making

58) Which of the following reflects the way goals are used in an MBO program?

C) Goals are used as a motivating tool for employees.

60) Which of the following is the last step in MBO?

C) Successful achievement of objectives is reinforced by performance-based rewards.

61) Well-written goals are ________.

D) measurable and clear as to time frame.

62) Which is the first step managers should follow in goal setting?

A) evaluating available resources

63) A ________ is a broad statement of an organization's purpose that provides an overall guide to what an organization thinks are important.

A) mission

65) Which of the following is the last step in goal setting?

D) Review results and whether goals are being met.

66) When uncertainty is high, plans should be ________.

A) flexible

67) ________ planning dominates managers' planning efforts at lower levels of the organization.

C) Operational

68) The commitment concept says that plans should ________.

A) extend far enough to meet those commitments made when the plans were developed

69) Top executives are mainly involved in ________ planning.

C) strategic

73) Which of the following statements is true of planning in dynamic environments?

D) Flatter organizational hierarchies are advantageous when planning in uncertain environments.

74) A manager's analysis of the external environment can be improved by ________, which involves screening information to detect emerging trends. 

A) environmental scanning

75) ________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.

B) Competitor intelligence

76) Which of the following is true of competitor intelligence as a means of environmental scanning?

C) Competitor intelligence is ethical if competitor-related information is collected from sources accessible and available to the public.

77) ________ involves the theft of proprietary materials or trade secrets by any means.

A) Corporate espionage

85) A manager wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation. Which of the following types of plans would best suit his requirement?

C) directional

Chapter 9 & Chapter 18B Review: Managing Strategy/Planning & Control Techniques

MULTIPLE CHOICE QUESTIONS

23) Defining the organizational mission forces managers to identify ________

B) what the organization is in business to do

24) Managers do an external analysis so that they know about ________.

B) what the competition is doing

25) When an organization is analyzing its labor supply in certain locations, it is studying its ___.

C) external environment

28) A study of the external environment allows a manager to understand the ________ and ________ for the organization.

D) opportunities; threats

34) The major value-creating capabilities of the organization are known as its ________.

C) core competencies

35) The combined external and internal analyses are called a ________.

D) SWOT analysis

36) The final step in the strategic management process allows an organization to understand the ____.

A) effectiveness of the strategies used

40) What are the three main types of corporate strategies?

B) growth, stability, and renewal

41) A _____ strategy is when an organization expands the number of markets served or the products offered.

A) growth

50) An organization that is diversifying its product line is exhibiting what type of corporate strategy?

C) growth strategy

54) ________ strategies address declining performance.

A) Renewal

55) A ______ strategy is used to deal with minor performance problems. It helps stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

D) retrenchment

57) In the Boston Consulting Group (BCG) matrix, a business unit that has a low anticipated growth rate but a high market share is known as a ________.

A) cash cow

58) In the BCG matrix, a business unit that has a high anticipated growth rate but a low market share is a ____.                                                                                                                                        D) question mark

59) In the BCG matrix, a ________ has a low anticipated growth rate and a low market share.

C) dog

60) In the BCG matrix, a ________ enjoys a high anticipated growth rate and a high market share.

B) star

61) ________ should be sold off or liquidated as they have low market share and low growth potential.

D) Dogs

62) Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in ________ and ________.

C) stars; question marks

63) Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.

B) stars

66) A cost leadership strategy requires a firm to ________.

A) maintain the lowest cost structure

67) A company that competes by offering unique products that are widely valued by customers is following a ________.

B) differentiation strategy

69) A firm that is "stuck in the middle" cannot develop ________.

A) a cost or differentiation advantage

71) ________ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.

A) Strategic leadership

73) How can an organization develop strategic flexibility?

D) It should have multiple alternatives when making strategic decisions.

79) Which of the following is an advantage of being a first mover?

D) opportunity to begin building customer relationships