MGMT LS 8

(T?F) a plan that is updated and amended every year to take account of changing conditions in the external environment is a one time plan

F ; rolling plan

one way to overcome the loss of control problems associated with exporting , licensing and franchising is to expand by means of

a strategic alliance

expanding a company's operations into an industry that produces inputs for its products is

backward vertical integration

why might managers decide to pursue unrelated diversification ?

because they believe they can purchase a failing company and use their skills to turn it around so it performs better and adds value

a plan to gain a competitive advantage in a particular market or industry is a

business level strategy

one reason that few risks are associated with exporting is

companies do not have to build manufacturing companies abroad

when a company reinvests its profits to strengthen its competitive position in its current industry , it is utilizing a(n)

concentration on a single industry strategy

level of management planning

corporate : CEO and top management team responsible for planning and strategy making for the organization as a whole business : the different divisions of the company that compete in distinct industries planning and strategy for their particular business division or unit functions : departments , such as manufacturing , marketing planning necessary to increase the efficiency and effectiveness of their particular department

top management is responsible for creating the _____ which takes into account decisions involving the corporation's overall structure , strategy , goals , and mission

corporate level plan

a plan that indicates in which industries and national markets an organization intends to compete is a

corporate level strategy

an advantage of a multi domestic strategy is

customization of product offerings and marketing approaches

when companies decide to expand into a new industry in order to provide a good and/org service that is different from and , in addition to , what they are already providing

diversification

a time horizon is the intended ____ of a plan

duration

a major advantage of scenario planning is its ability to

educate managers to think strategically anticipate the challenges of an uncertain future

the corporate level strategy of related diversification means companies enter an industry that creates a competitive advantage for an organization's

existing division or business

continuity in planning occurs when managers view planning as an ongoing process in which plans at all levels are refined and modified so all of the company's plans

fit together into one broad framework

entering into a new industry that uses , distributes , and sells company products

forward vertical integration

in licensing , a company allows foreign organizations to take charge of both manufacturing and distribution , but ____ sells rights to use brand names that are trademarked

franchising

the goals that the managers of each function will pursue to help their division attain its business level goals and allow the entire company to achieve its corporate goals are

functional level plans

a plan of action to improve the ability of each of an organization's functions to perform its task specific activities in ways that add value to an organization's goods and services is a

functional level strategy

companies concentrate on a single industry to

gain entry into an industry

the risks associated with licensing are that the company granting the license

has to give access to its technological know how risks losing control of its secrets

lack of a plan will result in

hesitations and false steps

time horizons of one to five years make up ____ term plans , and time horizons of one year or less make up ___ term plans

intermediate ; short

when two or more companies form a strategic alliance to jointly establish and share the ownership of a new business , it is a(n)

joint venture

the advantage of licensing associated with opening up in a foreign country is

licenser does not have to bear the development costs

when companies utilize a global strategy for international expansion , they will undertake ____ of their products to suit the specific needs of customers in different countries

little , if any , customization

typically , corporate and business level goals and strategies require ____ plans ; functional level goals and strategies require ____ plans

long and intermediate term ; intermediate and short term

the business level plan details both

long term divisional goals and division level strategy

disadvantages of diversification include

losing control of the core business reduction of value

when a company customizes its products and marketing to fit specific national conditions , it is following a

multi domestic strategy

one of the key managerial roles is to choose appropriate goals and courses of action that will help organizations achieve these goals , this is process is called

planning

example of a single use plan is a

project

what represents vertical integration along a company's value chain ?

raw materials , intermediate manufacturing , assembly , distribution

one characteristic of a joint venture is that risk is ____

reduced

using valuable skills among cooperating divisions to add value results from ____ diversification ; using current strengths to turn around poorly performing companies in other industries can result from ____ diversification

related ; unrelated

a major disadvantage of the vertical integration strategy is that it reduces the organization's flexibility to

respond to change

because the future is unpredictable , managers should engage in

scenario planning

the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions is

scenario planning

when the same situation occurs repeatedly , ____ plans are used

standing

fayol emphasized that managers must not be bound to a

static plan

an agreement in which managers share their organization's resources knowledge , and skills with a foreign company is a(n)

strategic alliance

to achieve organizational goals , managers use ____ to launch courses of actions that will move them towards their goals

strategies

the advantage to franchising is

the franchiser does not have to bear the development costs

managers of any organization that needs to sell its products abroad should ask

to what extent should the organization customize its products to different national conditions ?

synergy is created when

two divisions cooperate

in order to ensure that all information is accurate in the planning process , managers must recognize that

uncertainty exists

quality of an effective plan

unity : having only one guiding plan continuity : build and refine previous plans on an ongoing basis accuracy : collect and use all available information flexibility : alter or change plans when necessary

single use plans are designed to handle ____ situations

unusual and one of a kind

principal corporate level strategies include

vertical integration concentration on a single industry diversification international expansion

there are two important goals of a mission statement ; they are to describe their products for employees by pointing out ____ and ____

what is unique or important about it ; what differentiate its products

a manager of medical durable equipment company decides to establish an operation in a foreign company country independent of any local direct involvement . this manager is creating

wholly owned foreign subsidiary