Smartbook Ch 5

Which type of plan focuses on the specific actions a particular unit must take to fulfill its part of the strategic plan?

Tactical

Which tactics are generally NOT employed by fast-acting firms to meet time pressures without sacrificing quality?

Take a long-term view of conflict Focus on futuristic forecasts Rely on long-range planning

What are three requirements for effectively managing group decisions?

The constructive use of disagreement and conflict An appropriate leadership style Enhancement of creativity

The formal decision-making process has six steps. Which step involves implementing the decision?

fifth

What is the fifth step of the strategic management process?

strategy implementation

What is the second step in the strategic management process?

Analysis of the external environment

What is Step 1 of the basic planning process?

Analyzing the situation

In the decision-making process, which one of the following actions comes directly AFTER the act of generating alternative solutions?

Determining the respective suitability of each alternative

Which actions are NOT requirements for effectively managing group decisions?

Encouraging goal displacement Facilitating satisficing

Which are tactics employed by fast-acting firms to meet time pressures without sacrificing quality?

Focus on real-time information Rely on heavily trusted experts Take a realistic view of conflict

What are some psychological biases that act as barriers to effective decision making?

Framing effects Illusion of control Discounting the future

Which factor is NOT a barrier to effective decision making?

Full execution of the six stages of decision making

The goal and plan selection step of the formal planning process comes after which action?

Goal and plan evaluation

Implementation of the plan comes after which step in the planning process?

Goal and plan selection

What is the fourth step of the formal planning process?

Goal and plan selection

What are common potential problems associated with group decision making?

Goal displacement Groupthink Satisficing

Which action takes place during Step 3 of the planning process?

Goals and plans are evaluated.

Which statement is true about using a group to make a decision?

Groups generally make higher-quality decisions than individuals.

Why is Step 6 of the planning process so important?

It is needed to determine if the selected plan is working.

Which statement about the design thinking process is true?

It starts by developing an understanding of current and potential customers.

How do social realities affect decision making?

Many decisions are the result of intensive social interactions, bargaining, and politicking. A manager must consider the preferences and reactions of many people. Important managerial decisions are marked by conflict among interested parties.

What factors should managers compare current performance to in order to find sources of discrepancies in performance?

Future expected performance Current performance of other organizations Past performance

The type of plan that translates broad strategic goals into specific goals that are relevant to a particular organizational function is known as a(n) ______ plan.

Tactical

What name is given to the stage of decision making where information is collected and compared to goals and plans to determine success or failure?

evaluating the decision

Which management levels are involved in planning?

every level

Which stage in the formal decision making process involves making the choice among the alternatives?

fourth

When using groups to make decisions, what is one of the potential disadvantages?

goal displacement

What is the first step in the ideal decision-making process?

identifying and diagnosing the problem

As noted in Step 5 of the planning process, proper ______ is the key to achieving goals.

implementation

After a strategy is formulated, strategic managers must help make sure it is ______.

implemented efficiently

Once a choice is made in the decision-making process, managers must put their choice into action. What term is used to describe this process?

implementing

What are two generic business strategies?

low cost and differentiation

The ________ describes the organization as it currently operates, whereas the strategic vision points to the future.

mission

What drives the analysis of the external environment (opportunities and threats)?

mission and vision

The monitor and control step of the planning process comes after which step?

plan implementation

The process of making decisions about goals and activities that an organization will pursue in the future is referred to as

planning

What term describes the conscious, systematic process of making decisions about goals and activities that an individual, group, or organization will pursue in the future?

planning

Personal biases that interfere with objective rationality in decision making are called _______ biases.

psychological

What are inputs to a system that can enhance performance?

resources

_____ are inputs to production that can be accumulated over time to enhance the performance of a firm.

resources

Which stage of the formal decision making process involves generating alternative solutions?

second

In the ______ stage, planners assemble and study all information relevant to the planning issue in question.

situational analysis

What type of plan involves making decisions about the organization's long-term goals and how they intend to achieve the goals?

strategic

What process involves managers from all parts of the organization in the formulation and implementation of strategic goals?

strategic management

SWOT is an acronym that stands for ______, weaknesses, opportunities, and threats.

strengths

Which stage in the formal decision-making process involves determining the value or adequacy of the alternatives that were generated?

third

Which step of the formal planning process involves evaluating goals and plans?

third

Which managers are typically responsible for the development and execution of strategic plans?

top-level managers

The strategic ______ points to the future by providing a perspective on where the organization is headed and what it can become.

vision

Place the levels of management in order from highest to lowest.

1. Strategic 2. Tactical 3. Operational 4. Team Leaders

What actions should be taken during the sixth and final stage of the decision-making process?

Collect information on how well the decision is working. Use feedback to either continue the decision or go back to the first stage. Compare collected information with specified goals

What actions should be taken during the sixth and final stage of the decision-making process?

Collect information on how well the decision is working. Use feedback to either continue the decision or go back to the first stage. Compare collected information with specified goals.

What are potential advantages of using a group to make a decision?

More information is available. A greater number of perspectives on the issues or different approaches to solving the problem are available. Participants in the group discussions are more likely to understand why the decision was made. Group discussion provides intellectual stimulation.

Which factors may be barriers to effective decision making?

Psychological biases Social realities Time pressures

The process of assessing a company's internal strengths and weaknesses, as well as determining external threats and opportunities is known as a ___________ analysis.

SWOT

In the fourth step in decision making, the decision will differ according to the criteria and method used. What are the important ways of thinking managers can use when choosing among the alternatives they have evaluated?

Satisficing Optimizing Maximizing

Which factors should managers take into account when considering the social realities of a decision?

Social interactions, bargaining, and politicking.

Which statement is true about aligning tactical, operational, and strategic plans?

The plans must be consistent and mutually supportive.

To be effective, an organization's strategic, tactical, and operational plans must be ______.

aligned

Strategic management involves managers from ______ of the organization in the formulation and implementation of strategic goals and strategies.

all levels

The second step of the planning process should generate ______ goals and plans for the future.

alternative

The first step in the planning process, situational analysis, summarizes information relevant to the planning issue. In the second step, the planners should use the findings from the first step to produce ______.

alternative goals

What type of strategy defines the major actions by which a company builds or strengthens its competitive position in the marketplace?

business

The state that exists when decision makers have accurate and comprehensive information is known as

certainty

What name is given to the state that exists when decision makers have accurate and comprehensive information?

certainty

What is the name of the human-centered approach to innovation that integrates customer needs, the potential of technology, and the requirements for business success?

design thinking

What is involved in the second stage of decision making?

developing alternative solutions