Management 3000 Ch 4

89. (p. 151) A strategy that operates a single business and competes in a single industry is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. None of the above

A. Concentration

106. (p. 155) When a company attempts to establish itself as uniquely able to offer a product or service, it is using ______________ strategy. A. Differentiation B. Diversification C. Dimensional issue D. Demand/supply E. Dimensional studies

A. Differentiation

45. (p. 135) BR Associates often uses groups to consider the advantages, disadvantages and potential effects of goals and plans. BR Associates is involved in which basic planning stage? A. Goal and plan evaluation B. Goal and selection C. Implementation D. Monitor and control E. Alternate goals and plans

A. Goal and plan evaluation

33. (p. 133) The targets or ends the manager wants to reach are called: A. Goals B. Plans C. Mission statement D. Vision E. None of the above

A. Goals

60. (p. 138) Typical operational planning might focus on: A. Production scheduling, training of personnel, accounting procedures, updating equipment used B. Profit levels, share value, growth, return on investment, societal impact C. Advertising expenditures, sales levels, product use innovations, customer feedback levels D. Absenteeism levels, benefit usage and value, human resource utilization, compliance with civil rights laws E. All of the above

A. Production scheduling, training of personnel, accounting procedures, updating equipment used

31. (p. 132) Which of the steps in the formal planning process involves studying past events, examining current conditions and forecasting future trends? A. Situational analysis B. Alternative goals and plans C. Goal and plan evaluation D. Goal and plan selection E. Monitor and control

A. Situational analysis

38. (p. 134) A plan which focuses on ongoing activities and may become a more permanent policy or rule is called a(n): A. Standing plan B. Single-use plan C. Strategy D. Mission statement E. None of the above

A. Standing plan

41. (p. 134) A policy developed for the yearly graduation ceremony at Easy Town High School can de described as a(n): A. Standing plan B. Single-use plan C. Contingency plan D. "What-if" plan E. Unprofessional plan

A. Standing plan

77. (p. 146) The internal analysis component of the strategic management process assesses A. The organization's performance levels B. The organization's competitors C. The organization's industry growth rate D. The organization's product substitutions in the market E. All of the above

A. The organization's performance levels

35. (p. 133) Goals established during the planning process must be based upon A. The situational analysis B. The probability of success C. The needs of management personnel D. All of the above E. None of the above

A. The situational analysis

99. (p. 151) The Boston Consulting Group Matrix is intended for: A. Generating profits for the Boston Consulting Group B. A business' growth rate and relative strength in the market C. A business' financial success and strength of reputation in the market D. Long-term corporate planning E. Evaluating competitiveness and resource allocation

B. A business' growth rate and relative strength in the market

104. (p. 154) The major actions by which a business competes in a particular industry to market is called: A. Corporate strategy B. Business strategy C. Functional strategy D. BCG matrix plan E. Situation analysis

B. Business strategy

46. (p. 135) Once alternative goals and plans have been identified, the next step in the formal planning process is: A. Situational analysis B. Goal and plan evaluation C. Implementation D. Monitor and control E. None of the above

B. Goal and plan evaluation

44. (p. 135) The _______________ stage should identify the priorities and trade-offs among goals and plans. A. Goal and plan evaluation B. Goal and plan selection C. Implementation D. Monitor and control E. Alternate goals and plans

B. Goal and plan selection

51. (p. 136) Essential to developing a system that will monitor and control the implementation of plans developed in the formal planning process is the establishment of: A. Sanctions for improper performance B. Measurable performance indicators C. A "control leader" D. Contingency plans for various scenarios E. Strategic planning motives

B. Measurable performance indicators

70. (p. 142) "To be the world's best quick-service restaurant experience" is an example of a(n): A. Vision statement B. Mission statement C. Tactical goal D. Operational goal E. Idea

B. Mission statement

59. (p. 138) The process of identifying the specific procedures and processes required at lower levels of the organization is called: A. Strategic planning B. Operational planning C. Tactical planning D. Contingency planning E. Synergy

B. Operational planning

47. (p. 135) Goal and plan selection: A. Relies exclusively on experienced judgment B. Relies on experienced judgment to assume an important role C. Relies on experienced judgment to play a minor role D. Will suffer if experienced judgment is relied upon E. Cannot consider experienced judgment but facts to play a role

B. Relies on experienced judgment to assume an important role

87. (p. 149) A technique for assessing the organization's internal and external environments is called a ________. A. BCG matrix B. SWOT analysis C. Benchmarking D. Diversification E. Functional strategy

B. SWOT analysis

65. (p. 139) Strategy map might include all of the following information except: A. Financial goals B. Short term value C. Customer goals D. Internal goals E. Learning and growth goals

B. Short term value

30. (p. 132) Which is the first step in the formal planning process? A. Goal and plan evaluation B. Situational analysis C. Monitor and control D. Implementation E. Alternative goals and plans

B. Situational analysis

67. (p. 142) A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies is called: A. Management B. Strategic management C. Environmental analysis D. Operational planning E. Strategic planning

B. Strategic management

90. (p. 151) The acquisition or development of new businesses that produce parts or components of the organization's product is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. None of the above

B. Vertical integration

74. (p. 143) A ____________ statement clarifies the long-term direction of the company and its __________. A. Mission; strategic intent B. Vision; strategic intent C. Vision; operational goals D. Mission; tactical goals E. None of the above

B. Vision; strategic intent

58. (p. 137) A pattern of actions and use of resources which is developed with the intention to achieve the goals of an organization is referred to as: A. Strategic goals B. Tactical plans C. A strategy D. Strategic operationalizing E. Mission development

C. A strategy

91. (p. 151) A strategy used to add new businesses that produce related products or are involved in related markets and activities is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. One of the above

C. Concentric diversification

50. (p. 136) Which step in the formal planning process is sometimes ignored? A. Goal and plan evaluation B. Situational analysis C. Monitor and control D. Implementation E. Alternative goals and plans

C. Monitor and control

40. (p. 134) The different types of effective plans include: A. Inconsistent B. Complex C. Standing D. Artificial E. All of the above

C. Standing

53. (p. 137) A set of procedures for making decisions about the organization's long-term goals and strategies is called _____________. A. Mission statement B. Vision statement C. Strategic planning D. Tactical planning E. Operational planning

C. Strategic planning

32. (p. 132) The outcome of situational analysis is: A. The identification of alternative plans of action B. The identification of contingency plans to be followed under various scenarios C. The identification of planning assumptions, issues and problems D. The identification of the consequences of those alternatives under consideration E. None of the above

C. The identification of planning assumptions, issues and problems

49. (p. 136) When a goal and accompanying plans are selected, the other plans which were previously under consideration may be: A. Discarded B. Retained as "back-up" plans since selected plans often fail C. Used as contingency plans for various scenarios that may develop D. Developed thoroughly for feasibility studies of failed scenarios E. None of the above

C. Used as contingency plans for various scenarios that may develop

96. (p. 151) McDonald's would appear to be following which type of corporate strategy? A. Conglomerate strategy B. Market focus strategy C. Concentric diversification D. Concentration strategy E. Vertical strategy

D. Concentration strategy

92. (p. 151) A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities is called: A. Concentration B. Vertical integration C. Concentric diversification D. Conglomerate diversification E. None of the above

D. Conglomerate diversification

81. (p. 147-148) Developing a competitive advantage depends upon: A. Strong financial backing of stakeholders B. Securing exclusive rights to technological applications C. Acceptance of constant change D. Identifying core competencies E. All of the above

D. Identifying core competencies

29. (p. 132) Which of the following does NOT describe good plans in organizations? A. They are flexible B. They provide a clear road map C. They are purposeful D. They may be formal or informal E. They are directed and controlled by managers

D. They may be formal or informal

72. (p. 142) Strategic goals evolve from an organization's: A. Vision B. Customers C. Tactical plans D. Mission E. Both A and D are correct

E. Both A and D are correct

88. (p. 150) Identification of the industry (or industries) in which an organization is to compete is referred to as _______________ strategy. A. Business B. Industry C. Portfolio D. Functional E. Corporate

E. Corporate