mgmt chp 5 test answers

Sarah is a middle manager at Stylin' Sneakers Corporation. She is most likely responsible for the achievement of _____ goals. a.operational b.tactical c.strategic d.lower-level e.top-level

tactical

the planning process begins with which of the following a.The development of operational goals b.The development of a mission statement c.Communication of goals to the rest of the organization d.A company-wide meeting e.Brainstorming

the development of a mission statement

one of the limitations of setting goals and making plans is that they can get in the way of creativity

true

the Boston Consulting Group (BCG) matrix organizes businesses along two dimensions: their business growth rate and their geographical location

false

about half of executives whose companies have no formal strategic planning process say they are dissatisfied with the company's development strategy

true

stretch goals are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence

true

the two stages of crisis planning are crisis prevention and crisis preparation

true

In the BCG matrix, a dog is a poor performer

true

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success

true

when possible, operational goals should be expressed in quantitative terms

true

Goals that are so big, inspiring, and outside the prevailing paradigm that they hit people in the gut and shift their thinking are called ____ goals a. aspirational b. big hairy audacious c. visionary d. stretch e. motivational

b. big hairy audacious

The set of decisions and actions used to formulate and implement strategies are referred to as competitive advantage

false

Trend management is looking at trends and discontinuities and imagining possible alternative futures.

false

a business plan is a broad definition of the organization's values, aspirations, and reason for being, along with a recognition of the scope and operations that distinguishes the organization

false

comparative advantage refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customers or client needs in the workplace

false

during the strategy execution phase, operational goals are defined

false

senior mgmt is most likely to be responsible for a.operational plans b.tactical plans c.strategic plans d.mission plans e.tactical goals

strategic plans

the task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply

true

when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone

true

"we respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's a.mission b.strategic goals c.tactical goals d.strategic plans e.tactical plans

mission

A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n) _____. a. goal b. plan c. mission d. vision e. objective

plan

of the management functions, which is considered the most fundemental a. Executing b. Analyzing c. Controlling d. Planning e. Leading

planning

Goals are most effective when they are specific, measurable, challenging and linked to rewards.

true

If Rence, manager at Leak-Free Roofing, wanted to develop a contingency plan for Leak-Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases

true

a big hairy audacious goal is any goal that is so big, inspiring, and outside the prevailing paradigm that it hits people in the guy and shifts their thinking

true

a core competence is something that the organization does especially well in comparison to its competitors

true

some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends

true

strategy execution is the stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes

true

A goal is a desired future circumstance or condition that the organization attempts to realize.

True

Consider Porter's competitive strategies. Which strategy is most likely to be effective for a business that can avail itself of easy- to-use manufacturing technologies? a.Cost leadership b.Differentiation c.Focused differentiation d.Internal growth e.Focused cost leadership

a. cost leadership

Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____ strategy. a.focus b.differentiation c.cost leadership d.multidomestic e.universal

a. focus

measures that reflect how well lower-level goals help the organization progress toward attaining its strategic goal are called____ a. key performance indicators b. objective indicators c. outcomes d. critical assessments e. behavioral indicators

a. key performance indicators

the ultimate impact of goals depends on___. a. the extent to which goal achievement is tied to meaningful rewards b. whether employees regard them as reasonable c. the extent to which they inspire employees d. the degree of management buy-in e. whether or not employees had a voice in the formulation of the goals

a. the extent to which goal achievement is tied to meaningful rewards

united products groups holds a diverse portfolio of business interests including several question marks. What does having question marks mean for United's strategies a. United should monitor the question marks and divest itself of those that do not perform well. b. United is likely to experience cash shortfalls in the near future. c. United needs to divest itself of all of the question marks and sell off their assets. d. United can afford to invest in riskier businesses. e. United is likely to grow rapidly as markets expand, regardless of the question marks' performance.

a. united should monitor the question marks and divest itself of those that do not perform well.

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified by the BCG matrix as a.a dog b.a star c.a question mark d.a cash cow e.stuck in the middle

b. Star

Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function? a.Centralized planning department b.Decentralized planning staff c.Planning task force d. centralplanning committee e.TQM

b. decentralized planning staff

consider porter's competitive strategies. What strategy is most likely to include rewarding employee innovation a.Cost leadership b.Differentiation c.Focused differentiation d.Internal growth e.Focused cost leadership

b. differentiation

fred has been asked to conduct a SWOT analysis for his organization, Acme, In. As part of this assignment, Fred will be most likely to a.conduct an external wage survey b.identify his firm's strengths and weaknesses c.choose a grand strategy for his firm d.do a cost-benefit analysis e.develop a mission

b. identify his firm's strengths and weaknesses

Consider Porter's competitive strategies. Which strategy is most likely to push empowerment to employees with customer contact a.Cost leadership b.Differentiation c.Focused differentiation d.Internal growth e.Focused cost leadership

c. Focused diferentiation

strategy ____ refers to the use of managerial and organizational tools to direct resources toward achieving strategic outcomes a.formulation b.coordination c.execution d.control e.planning

c. execution

Federated Corporation holds a diverse portfolio of business interests including several dogs. What does having dogs mean for Federated's strategies . a. Federated is using outdated business strategies and needs to update its plans. b. Federated does not need to be concerned about its investments c. Federated needs to divest itself of the dogs if they are not profitable. d. Federated can afford to invest in riskier businesses. e. Federated is likely to grow rapidly as the dogs' markets expand.

c. federated needs to divest itself of the dogs if they are not profitable

meadow branch corporation leadership believes that when managers pursue their activities is the right way, positive outcomes will result. their approach is best described as management by__. a. indicator b. objectives c. means d. outcome e. goal

c. means

how do planners get information about opportunities and threats . a. Analyzing the organization's internal environment b.Conducing a department-by-department study of the organization c.Scanning the external environments d.Reviewing employee grievances e.Analyzing the financial ratios of the organization

c. scanning the external environments

in building ___, managers look at current trends and discontinuities and visualize future possibiliites a. emergency plans b. risk abatements c. scenarios d. contingencies e. vision plans

c. scenarios

Darren set goals for each of his employees. Each employee was assigned goals for virtually every aspect of their behavior at work. This is inconsistent with the idea that goals should a.be specific and measurable b.be challenging but realistic c.cover key result areas d.have a defined time period e.be linked to rewards

cover key result areas

Consolidated Business Group holds a diverse portfolio of business interests including several cash cows. what does having cash cows mean for Consolidated's strategies a. Consolidated will likely be harmed should there be unstable financial conditions. b. Consolidated is likely to experience cash shortfalls in the near future. c. Consolidated needs to divest itself of the cows and sell off their assets. d. Consolidated can afford to invest in riskier businesses. e. Consolidated is likely to grow rapidly as the cows' markets expand.

d. consolidated can afford to invest in riskier businesses

to develop___ plans, managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents a. emergency b. risk c. scenario d. contingency e. obsolescence

d. contingency

When top executives work with managers in major divisions or departments to develop their own goals and plans, it is known as _____ planning. a.interdepartmental b.crisis c.focus d.decentralized e. competitive

d. decentralized

Jeff is a top manager at a textile factory. He is developing a crisis plan to be implemented in the event that the company has a toxic spill or a similar industrial accident. Which issue should be addressed in the crisis preparation stage . a.Educating employees about industrial accidents b.Building open, trusting relationships with key stakeholders c.Ensuring employees have appropriate personal protective equipment d.Designating a cross-functional group of people who will swing into action if a crisis occurs e.Inspections to ensure equipment is functioning appropriately and effectively

d. designating a cross-functional group of people who will swing into action if a crisis occurs

which of the following is true about the BCG matrix cash cow a.It generates tremendous profits in a rapidly growing industry. b.It has a small market share in a rapidly growing industry. c.It has a small market share in a slow-growth industry d.It has a large market share in a slow-growth industry e.It is generally a dead business that should be divested

d. it has a large market share in a slow-growth industry

which management method focuses manager and employee efforts on activities that will lead to goal attainment a.Tactical planning b.Contingency planning c.Single-use planning d.Management by objectives e.Management by walking around

d. management by objectives

which of the following is NOT one of the benefits of management by objectives(MBO) a.Performance can be improved at all company levels. b.Employees are motivated. c.Efforts are focused on activities that will lead to goal attainment. d.Operational goals are able to displace strategic goals. e. ndividual and department goals are aligned with company goals.

d. operational goals are able to displace strategic goals

reasonable yet highly ambitious and compelling goals that energize people and inspire excellence are called___ goals a. aspirational b. acceptable c. visionary d. stretch e. motivational

d. stretch

Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis? a.Designating a crisis management team b.Building open, trusting relationships with key stakeholders c.Designating a crisis management spokesperson d.Setting up an effective communications system e.All of the above

e. all of the above (jeff)

the strategy of moving into a new lines of business is called a.individuation b.differentiation c.acquisition d.expansion e.diversification

e. diversification

consider Porter's competitive strategies. Which strategy is most likely to include measuring the cost of providing a product or service and the cost of maintaining customer loyalty a.Cost leadership b.Differentiation c.Focused differentiation d.Internal growth e.Focused cost leadership

e. focused cost leadership

innovative Holdings Groups holds a diverse portfolio of business interests including several stars. What does having stars mean for Innovative's strategies a. Innovative should monitor the stars and divest itself of those that do not perform well. b. Innovative is likely to experience cash shortfalls in the near future. c. Innovative needs to divest itself of all of the stars before they explode. d. Innovative can afford to invest in riskier businesses. e. Innovative should plow profits into the stars to take advantage of their expanding markets.

e. innovative should plow profits into the stars to take advantage of their expanding markets

plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals is known as a a.goal b.objective c.mission d.vision e.strategy

e. strategy

which of the following is a commonly cited limitation of planning a.Plans limit employee motivation and commitment. b.Plans make resource allocation more difficult. c.Plans make it more difficult to measure standards of performance. d.Plans boost intuition and creativity. e.Plans can create a false sense of security.

e.plans can create a false sense of security

Front-line managers have the final responsibility for strategic planning.

false

One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility.

false

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry.

false

cost leadership is a type of competitive strategy though which an organization seeks to distinguish itself from competitors based on products and services

false

crowdsourcing generally results in fewer meaningful opportunities for participation by employees in strategy formulation and executionn

false

executive acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction

false

goals should be easy for employees to achieve in order to keep morale and motivation high

false

in decentralized planning, planning experts work with line managers and even line staff to develop plans

false

in today's business environment, it is expected that CEO's will do the large majority of their corporation's strategic planning

false

operational plans and goals focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goal

false