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Chapter3–FoundationsofPlanning

1.Whichofthefollowingisnotincludedinthedefinitionofplanning?

a.Definetheorganization’sobjectivesorgoals.

b.Establishanoverallstrategyforachievingtheseobjectivesorgoals.c.Allocateresourcesanddevelopachainofcommunication.

d.Developahierarchyofplanstointegrateandcoordinateactivities.2.

3.

4.a.Planningfocusesonthefuture.b.Planningmaycreaterigidity.c.Planningreplacescreativity.d.Planningignorespriorsuccesses.Whichoffollowingisnotoneofthereasonswhymanagersshouldengageinplanningasthatwasstatedinthetext?a.Planningreducescost.b.Planningminimizeswasteandredundancy.c.Planningprovidesdirection.d.Planningfacilitatescontrol.Plansthatdeterminespecificdetailsaboutorganizationalobjectivesthatare

tobeachievedarecalled

a.strategicplans.

b.tacticalplans.

c.long-termplans.

d.detailedplans.

Successfulplansmayprovide

a.afalsesenseofsecurity.

b.onlysuccess.

c.increasedawarenessoftheenvironment.

d.increasedawarenessofchange.

WhichofthefollowingstatementsisMOSTaccurate?

a.Manystudiesconfirmthepositiverelationshipbetweenplanningand

performance.

b.Allorganizationsthatplanextensivelyoutperformthosethatplanless

formally.

c.Allorganizationsthatplanoutperformthosethatdonot.

d.Manystudiesconfirmthatplanningdoesnotleadtogreaterperformance

becauselaborunionsareweak.

_____plansaredifferentiatedbytheirbreadth.

a.Directionalandspecific

b.Singleuseandstanding

c.Strategicandtactical

d.Long-termandshort-term

a.breadth

b.timeframe

c.specificity

d.length

.9.1

PartII-Planning

10.

11.

12.

13.

14.

15.

16.

17.

18.

a.b.c.d.timeframe.scope.knownsetoforganizationalobjectives.environmentaleffects.Thegreatertheuncertainty,themoreplansshouldbeofthe_____ermediateinlengthd.rigidWhenuncertaintyishighandmanagementmustmaintainflexibility,whichofthefollowingtypesofplansarepreferable?a.long-termplansb.noplansc.directionalplansd.specificplansWhichtypeofplanisusedtomeetaparticularoruniquesituation?a.tacticalplanb.operationalplanc.single-usepland.standingplana.Specifydeadlines.b.Allowtheemployeetoactivelyparticipate.c.Linkrewardstoeffort.d.Prioritizegoals.EachMBOobjectivemusthavea.apercentagechangespecified.b.aconcisetimeperiod.c.areferencetoquality.d.aspecifieddollaramount.MBOadvocatesparticipativegoalsetting.Researchcomparingparticipativesetandassignedgoalsonperformancea.showsconsistentlyhigherperformancewithparticipativelysetgoals.b.showsconsistentlylowerperformancewithparticipativelysetgoals.c.hasnotshownanystrongorconsistentrelationships.d.hasbeenbiasedbytheresearchers.a.goalspecificityb.participativedecisionmakingc.performancefeedbackd.generaltimeperiodAccordingtothephilosophyofMBO,a.Feedbackoccursattheannualperformancereviewb.Goalsfollowatop-downapproachc.Goalstypicallyarebroad,generalstatementsofintentd.ConstantfeedbackisprovidedMBOassistsinansweringWhat'sinitformeasanemployeebya.Linkingrewardstogoalattainmentb.Identifyingemployees'keyjobtasksc.Allowingemployeestoparticipateactively

2

Chapter3–FoundationsofPlanning

19.

20.

21.

22.d.PrioritizinggoalsManagerscanovercomethecriticismsofmanagementbyobjectivesbya.ensuringthatemployeeshavemultiplegoals.b.treatingMBOasasingle-eventactivity.c.punishingemployeeswhofailtoachievegoals.d.rewardingemployeesforsettingeasygoals.WhichofthefollowingisnotacomponentoftheMBOprocess?a.Objectivesaredeterminedjointlybysubordinatesandsupervisorb.Progresstowardsobjectivesisreviewedeverythreemonths.c.Employeesaregivenratingsbasedonreachingspecifictargetsd.Rewardsarebasedonprogresstowardsachievingobjectives.Whichofthefollowingisanine-stepprocessthatinvolvesstrategicplanning,implementation,andevaluation?a.decision-makingprocessb.strategicmanagementprocessc.tacticalmanagementprocessd.long-rangeplanningprocessInenvironmentalSWOTanalysis,theexternalorganizationalpositionis

analyzedaccordingtoits

a.strengthsandweaknesses.

b.opportunitiesandweaknesses.

c.strengthsandthreats.

d.opportunitiesandthreats.

Thestartingpointinstrategicmanagementprocessisusually

a.analyzingcurrentmission,strategiesandobjectives.

b.identifyingopportunitiesandthreats.

c.conductinganenvironmentalscan.

d.identifyingopportunitiesandweaknesses.

Afteranalyzingandlearningabouttheenvironment,managementneedstoevaluateopportunitiesandthreats.Opportunitiesare

ernalresources.

b.unmetneeds.

c.positiveexternalenvironmentalfactors.

ernalcompetitivestrategies.

WhichofthefollowingisNOTagrandstrategythatanorganizationcanusefordefiningitsall-encompassingfocus?

a.Stabilitystrategy

b.Marketgainstrategy

c.Growthstrategy

d.Combinationstrategy

Tim'sCompanyisanalyzingthetechnologythatallowsittoproducewirelesscommunicationequipmentforlessmoney.ThistechnologicalbreakthroughforTim'sCompanyiswhichofthefollowing?

a.strength

b.weakness

c.opportunity

d.threat

SWOTanalysis

a.Matchestheorganization'scompetencieswithitsenvironmentalforces

b.Sometimesinvolvesindustrialespionagetactics6.27.

3

PartII-Planning

28.

29.

30.

31.

32.

33.

34.

35.

c.Occursduringthemissionstatementformulationd.IsmostusefulforhelpinganorganizationsustainitscompetitiveThetypeoforganizationalstrategythatemphasizedincreasingmarketshareorthelevelofanorganization'soperationsiscalleda.StabilityStrategyb.Combinationstrategyc.Marketgainstrategyd.NoneoftheaboveWhenNorthwestAirlinesbeganservingitsownin-flightmeals,whichofthefollowingstrategieswasitpursuing?binationLarry'sCompanyisintheprocessofbuyingasmallercompetitorandincorporatingthatcompany'sresourcesintohisbusiness.Thisisanexampleofwhichofthefollowingtypesofstrategies?a.mergerb.stabilityc.retrenchmentd.acquisitionStrategyformulationinvolves__________.pletingaSWOTanalysisSusan'sCeramicsisexpandingthesizeofitsunfinishedproductswhiledecreasingtheamountoffiringandfinishingofproductsitdoes.Thisisknownaswhichofthefollowingstrategies?binationAcompanystatesthatitsproductisreliable,eventotheextentofneverneedingaservicecall,suchasMaytag,ispracticingwhichofthefollowingcompetitivestrategies?a.cost-leadershipstrategyb.differentiationstrategyc.focusstrategyd.retrenchmentstrategyLila'sLusciousLipsproducesacherryflavoredlipstickandistargetingtheteengirlwhoisbetween12and14yearsold.Thestrategypursuedisa.costleadership.bdifferentiation.c.focus.d.segmentation.Thepremisebehind_____istodesigninqualityastheproductisbeingmade.a.sixsigmab.TQM

4

Chapter3–FoundationsofPlanning

c.reengineeringd.benchmarking

36.Alargediscountstore,likeWal-Mart,whoseprimarygoalistohavethelowest

pricesintheindustry,isusingwhichofthefollowingstrategiestomaintainacompetitiveadvantage?

a.cost-leadershipstrategy

b.differentiationstrategy

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