Ch 3
1 .Planning encompasses which of the following?
- Defining the organization's objectives or goals.
- Establishing an overall strategy for achieving the organization's goals.
- Developing a comprehensive hierarchy of plans to integrate and coordinate activities.
- Planning encompasses all of the above.
2 .In _____, specific objectives are written down and management clearly defines the
path it wants to take to get from where it is to where it wants to be.
- strategic planning
- formal planning
- long-term planning
- specific planning
3 .Studies exploring the relationship between planning and performance have found that
_____.
- formal planning in an organization rarely corresponds with positive financial results
- the extent of planning contributes more to high performance than does the quality of
the planning process itself or the appropriate implementation of the plan
- in those organizations in which formal planning does not lead to higher performance,
the environment is typically the culprit
-none of the above are true
4 .Strategic plans differ from tactical plans in their _____.
- breadth
- time frame
- frequency of use
- specificity
5 .The greater the uncertainty in the environment, the more plans should be of the _____
variety.
- standing
- short-term
- competitive
- specific
6 ._____ have clearly defined objectives and require a clarity and predictability that
often does not exist, while _____ identify general guidelines and provide focus but do not
lock managers into set objectives or courses of action.
- Long-term plans; short-term plans
- Strategic plans; tactical plans
- Standing plans; single-use plans
- Specific plans; directional plans
7 .Which of the following would be an appropriate objective for MBO?
- Raise customer satisfaction levels by 25%.
- Maintain positive consumer perceptions of the brand.
- Reduce turnaround time between order placement and product shipment.
- Cut manufacturing costs from the current level of $27 per unit.
8 .Which of the following is NOT a recommended guideline when setting employee
objectives?
- identify what you want the employee to accomplish
- identify some easy goals to build confidence
- prioritize goals
- encourage employee participation
9 .The first step in the strategic management process is _____.
- identifying organizational opportunities and threats
- evaluating the organization's internal resources
- identifying the organization's current mission, objectives, and strategies
- to look outside the company to ensure that the company's strategy aligns well with the
environment
10 .Screening large amounts of information to detect emerging trends and create a set of
scenarios is known as _____.
- competitive intelligence
- environmental scanning
- formal planning
- management by objectives
11 .From which of the following sources can organizations gain competitive intelligence?
- press releases
- trade shows
- annual reports
- all of the above
12 .Internal organizational strengths that represent unique skills or resources that can
determine the organization's competitive edge are its _____.
- core competencies
- opportunities
- acquisitions
- competitive strategies
13 ._____ brings together external and internal assessments of the organization and its
environment to identify a strategic niche that the organization can exploit.
- Acquisition
- Management by objectives
- Retrenchment
- SWOT analysis
14 .FedEx acquired Kinko's in order to create a more direct link to individual
customers. FedEx is pursuing a _____ strategy.
- growth
- retrenchment
- stability
- combination
15 .When an organization deliberately continues to serve its same market and customers
while maintaining its market share, it is pursuing a _____.
- stability strategy
- retrenchment strategy
- growth strategy
- combination strategy
16 .A _____ is characteristic of an organization that is reducing its size or selling off less
profitable product lines.
- stability strategy
- retrenchment strategy
- growth strategy
- combination strategy
17 .Who developed the competitive strategies framework that includes the three generic
competitive strategies of cost-leadership, differentiation, and focus?
- Edward Deming
- Michael Porter
- Peter Drucker
- Edwin Locke
18 .The firm that seeks to be unique in its industry in ways that are widely valued by
buyers is following a _____.
- cost-leadership strategy
- differentiation strategy
- focus strategy
- retrenchment strategy
19 .The basic idea underlying _____ is that management can improve quality by
analyzing and then copying the methods of the leaders in various fields.
- competitive intelligence
- core competency
- the strategic planning process
- benchmarking
20 .Companies who obtain _____ certification can assure customers that independent
auditors have ensured that their facilities meet quality management requirements.
- TQM
- six sigma
- ISO 9000
- EMT
21 .All small businesses use informal planning in defining their goals and strategies.
True
False
22 .By establishing coordinated effort, planning is able to reduce overlapping and
wasteful activities.
True
False
23 .Formal planning has a tendency to focus on how to create or reinvent the industry,
rather than on how to best capitalize on existing business opportunities within that
industry.
True
False
24 .Successful plans have the potential to provide a false sense of security and breed
failure in an uncertain environment.
True
False
25 .Organizations that formally plan always outperform those that don't.
True
False
26 .Single-use plans provide guidance for repeatedly performed actions in the
organization.
True
False
27 .MBO programs do not specify time requirements when setting objectives.
True
False
28 .When conducting a SWOT analysis, strengths and weaknesses refer to internal
resources while opportunities and threats are external.
True
False
29 .A strong culture is always a strength for an organization because almost all
employees have a clear understanding of what the organization is about.
True
False
30 .The four grand strategies available to most organizations are cost leadership,
growth, differentiation, and retrenchment.
True
False
31 .Firms typically pursue growth strategies by direct expansion, new product
development, quality improvement, and merging with or acquiring other firms.
True
False
32 .A retrenchment strategy is most appropriate when the environment is stable, the
organization is performing in a satisfactory manner, and there are few critical
weaknesses, opportunities, or threats.
True
False
33 .A focus strategy could include a cost advantage or a differentiation advantage in a
narrow segment.
True
False
34 .Benchmarking is a very specific form of corporate espionage.
True
False
35 .Six Sigma applications only apply to manufacturing processes.
True
False