CHAPTER 5 SMARTBOOK

The vision statement should answer which of these questions?

What do we want to become?

A mission statement addresses which question?

What is our reason for being?

Which of the following verbs would be appropriate for a results-oriented goal?

- Acquire - Complete - Decrease

Which types of objectives used in management by objectives (MBO)?

- Behavioral - Learning - Performance

What are steps anyone can take to become a more proactive learner?

- Set realistic goals - Take initiative and rely on yourself - Focus on solutions rather than problems - Participate in professional conversations

What are the types of planning involved in the strategic management process?

- Strategic - Tactical - Operational

A company's values statement expresses which of the following things?

- The company's core priorities - The values its employees embody - What its products contribute to the world - What the company stands for

Which should be included in a firm's business model?

- The firm's expected revenues and expenses - How the firm will market to customers - A description of the industry the firm is entering

Which of the following are true about long-term goals?

- They focus on achieving strategies in the company's strategic plan - They span one to five years - They are also referred to as strategic goals

For goal setting to be successful, what must occur?

- Top management must be highly committed - Goals must cascade through the organization - Goals must be applied organization wide

What groups should be involved in the strategic management process?

- Top managers - Middle managers - First-line managers

Which of the following are career readiness competencies?

- Understanding a business - Networking

Goals that are challenging but are realistic and achievable within the scope of the resources available to a company satisfy which aspect of SMART goal criteria?

Attainable

When stating a goal, it is a good idea to start with the word "To" and follow with an action-oriented verb such as "increase" or "acquire." This describes the ___ aspect of SMART goals.

Results-oriented

Top managers use ___ planning to determine what the organization's long-term goals should be for the next one to five years with the resources they expect to have available.

Strategic

Without having a plan in place, managers may focus only on ___ instead of keeping a long-range view and anticipating new opportunities.

Whatever is in front of them

What are characteristics of effective vision statements?

- Clarity - Idealism - Future focus

What are the control steps in the planning/control cycle?

- Control the direction by comparing results with the plan - Control the direction by taking corrective actions

Which of these represent measurable goals?

- Customer service agents should improve customer relations by making 10 follow-up calls each week - No more than 50% of cars should be sold below MSRP

What are advantages for a company that establishes deadlines?

- Deadlines aid in making quicker decisions - Deadlines motivate employees to focus on the goal

Which goals meet the SMART goal characteristic of specifying a target date?

- Increase sales by the end of the first quarter - File tax return by April 15

Which of the following are reasons that employers value a proactive learning orientation?

- It helps employees refine and enhance their skills set throughout their careers - It helps drive employee creativity and innovation

What are specific reasons why organizations should adopt planning and strategic management?

- It helps the firm develop a sustainable competitive advantage - It provides direction and momentum - It encourages new ideas

Which of the following statements about strategic planning are true?

- It requires visionary and directional thinking - It should communicate general goals and ways to achieve them

What are the types of goals in business?

- Long-term - Short-term

What are the planning steps in the planning/control cycle?

- Making the plan - Carrying out the plan

The question "what is our reason for being?" should be answered by the organization's ___ statement.

Mission

Tactical goals are considered ___-term goals.

Short

Place the steps of the planning/control cycle in the correct order.

1. Make the plan 2. Carry out the plan 3. Control the direction by comparing results with the plan 4. Control the direction by correcting deviations and/or improving future plans

What is the usual span of time for a tactical goal?

12 months

A business plan is a document that outlines ____.

A proposed firm's goals, strategy for achieving them, and standards for measuring success

A(n) ___ plan defines the course of action a company should follow to achieve the stated goal.

Action

Operating plans accomplish which of the following?

Break long-term output into short-term targets or goals

A document that outlines a proposed firm's goals, its strategy for achieving those goals, and the standards for measuring success is known as a ___.

Business plan

The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as ___ goals.

Cascading

In terms of SMART goals, an "attainable" goal is ___.

Challenging by achievable

An organization's ability to produce goods or services more efficiently than its competitors is referred to as its ___.

Competitive advantage

___ help us to stay focused on the big picture, concentrate and make quicker decisions rather than putting them off, and ignore unimportant matters.

Deadlines

A company's strategy can best be described as a(n) ___ about what long-term goals or direction to pursue for the survival or prosperity of the organization.

Educated guess

Cascading goals is the process of ___.

Ensuring that strategic goals at the top align with the short-term goals set at lower levels in the organization

Performance Objective

Express the objective as an outcome or end-result

Behavioral Objective

Express the objective as the behaviors needed to achieve an outcome

Learning Objective

Express the objective in terms of acquiring knowledge or competencies

Managers and subordinates jointly setting subordinate objectives is the ___ step in management by objectives.

First

Managers and subordinates meeting to appraise performance, discuss results, and allocate rewards is the ___ step in management by objectives.

Fourth

In business, a specific commitment to achieve a measurable result within a stated period of time is called a ___.

Goal

A means-end chain is used in planning to show ___.

How goals are connected across an organization

Strategic planning can help encourage new ideas by stressing the importance of ___ in achieving long-range success.

Innovation

Strategic ___ is a process that involves managers from all levels of the organization in the formulation and the implementation of strategies and strategic goals.

Management

What is the first step in management by objectives?

Managers and employees jointly set objectives for the employee

In the strategic management process, the organization's strategies and strategic goals are formulated and implemented using ___.

Managers from all parts of the organization

Short-term (tactical) goals are connected to long-term (strategic) goals in a hierarchy called the ___.

Means-end chain

Who is responsible for tactical planning?

Middle management

A company's ___ is the purpose of the organization.

Mission

The ____ statement expresses the purpose of an organization.

Mission

A firm's business ____ should include a description of the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.

Model

The purpose of management by objectives (MBO) is to ___ subordinates.

Motivate

Management by ___ is a four-step process in which managers and employees jointly set objectives, develop action plans, review performance, and appraise and reward employees.

Objectives

It is the function of the ___ to take the strategic plan and develop actionable short-term goals that a business can achieve.

Operating plan

First-line managers are typically responsible for performing ___ planning within the organization.

Operational

___ planning is used to determine how to accomplish specific tasks with available resources within the next 1-52 weeks.

Operational

An action plan ___.

Outlines the tactics that will be used to achieve a goal

The document that details how a company's goals are to be met is called a(n) ____.

Plan

Making the plan and carrying out the plan represent the two ___ steps in the planning/control cycle.

Planning

The ___ process helps us to cope with uncertainty by formulating future courses of action designed to help achieve specified results.

Planning

Three benefits of ___ are that they can provide a company with direction and momentum, encourage new ideas, and help the company develop a sustainable competitive advantage.

Planning and strategic management

You can use the continuous feedback loop known as the ___ cycle to ensure you're headed in the right direction once you've made plans.

Planning/control

A(n) ___ learning orientation represents the desire to learn and improve one's knowledge, soft-skills, and other characteristics in pursuit of personal development.

Proactive

To be an effective planner, you should be a(n) ___ learner in areas beyond the technicalities of your profession.

Proactive

An organization has a sustainable competitive advantage when, for an extended period of time, it can ___.

Produce goods and services more effectively than its competitors do

The "measurable" aspect of a SMART goal refers to its ability to be ___.

Quantified

A ___ goal is one that is specific, measurable, attainable, results-oriented, and has target dates.

SMART

Employees preparing action plans represents the ___ step in management by objectives.

Second

The letter S in the acronym SMART goal stands for what aspect of a good goal?

Specific

In which phase of the planning/control cycle does a company have the opportunity to get a project back on track if it is failing to meet assigned objectives?

Step 4 - Control the direction by taking corrective action

A(n) ___ provides a guide for a company's long-term goals.

Strategic plan

A ___ sets the long-term goals and direction for an organization.

Strategy

According to management scholar Gary Hamel, companies like Apple have succeeded because their spirit of ___ has allowed them to reinvent the basis of competition within an existing industry.

Strategy innovation

Organizations use ___ planning to determine what contributions the departments or work units can make toward the organization's strategic priorities and policies during the next 6-24 months.

Tactical

What behavior would a proactive learner most likely exhibit?

Taking initiative

The management team gave the IT department until October 15 to complete the software installation. Which aspect of SMART goals does this deadline demonstrate?

Target dates

The company's mission statement tells us ___.

The company's reason for being

To be effective, a company's vision statement should describe which of the following?

The future as being highly desirable

A company's ___ statement should provide a clear sense of the future and the actions needed to get there.

Vision

The manager and employee periodically reviewing the employee's performance represents the ___ step in management by objectives.

Third

T/F: One reason a company might create a bad strategic plan is because they make incorrect assumptions about what will happen in the market going forward.

True

A ___ statement expresses what the company stands for, its core priorities and what its products contribute to the world.

Values

An organization's vision represents ___.

Where the organization wants to go