Management Test 2 Ch7 Part 12

_____ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed.

Scenario building

Which of these are true about contingency plans?

They define company responses to specific situations, such as emergencies or setbacks.

_____ enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response.

Crisis planning

Which of the following is NOT involved in the stages of crisis planning?

Investigating all stakeholders

Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as _____.

contingency planning

Traditionally, if Stephanie, CEO of Butterfly Pillows, needed to conduct corporate planning, it would be performed by all of the following except:

decentralized planning groups.

The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a crisis occurs.

detailed, written plan

One major limitation of goals and plans is:

goals and plans may cause rigidity in a turbulent environment.

The two stages of crisis planning include

prevention and preparation.

Contingency plans are also referred to as:

scenarios.