MGT ch 8

Which of the following are steps in the planning process of an organization? (Check all that apply.)

Determining the organization's mission and goals Formulating strategies to achieve the goals Selecting the most effective way to implement organizational strategy

Mission statements accomplish which of the following tasks? (Choose all that apply.)

Differentiate the company from its competitors Identify a company's products and customers State the broad purpose of the organization

True or false: Managers only need to identify their customers when defining a business.

False

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

Forward vertical integration

Single-use plans are designed to handle which of the following situations? (Choose all that apply.)

One-of-a-kind Unusual

With a differentiation strategy, companies can distinguish their products using: (Choose all that apply.)

after-sales service. quality. product design.

Henri Fayol believed that, if the situation changes, plans can be ______.

altered and changed

Planning and strategy for their particular business division or unit

business

A plan to gain a competitive advantage in a particular market or industry is a ______ strategy.

business-level

The third step in the planning process is ______.

choosing the most effective way to put strategies into action

One reason that few risks are associated with exporting is that ______.

companies do not have to build manufacturing companies abroad

People would come from all over the greater city lines for Sami's Sushi until the owner of Sami's decided to expand to some of the well-populated suburbs. This decision was a corporate-level strategy referred to as ______.

concentration on a single industry

When a company reinvests its profits to strengthen its competitive position in its current industry, it is utilizing a(n) ______ strategy.

concentration on a single industry

build and refine previous plans on an ongoing basis

continuity

Responsible for planning and strategy making for the organization as a whole

corporate

The purpose of strategy formulation is to ______.

develop a set of strategies that will allow an organization to accomplish its mission

The mission statement ______ its competitors. (Choose all that apply.)

differentiates an organization from distinguishes an organization from

The ability to charge a premium price to distinguish its product is one outcome of a(n) ______ strategy.

differentiation

alter or change plans when necessary

flexibility

When an organization markets its product in one or a few markets, where the product is sure to stand out from its competitors, the organization is using a ______ strategy.

focused differentiation

Licensing allows a foreign organization to take charge of both manufacturing and distribution, whereas ______ sells rights to foreign organizations to use a brand name.

franchising

Planning necessary to increase the efficiency and effectiveness of their particular department

functional

In large organizations, planning usually takes place at three levels of management. They are _____, ______, and ______. (Choose all appropriate responses.)

functional business corporate

While defining a business and answering questions about their company's products, managers can identify: (Choose all that apply.)

future customer needs. present customer needs. who their true competitors are.

Michael Porter suggests that when managers choose a business-level strategy, their organization should ______ in a particular market.

gain a competitive advantage

Companies concentrate on a single industry to ______.

gain entry into an industry

Managers need to decide to what extent the organization should customize its products for different national conditions. The product can be standardized in all markets in which the organization competes; this is called a ______ strategy. If the company customizes its products and marketing tactics to different national conditions, it is called a ______ strategy.

global; multidomestic

A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its: (Choose all that apply.)

goals. mission.

With the continuing threat of Internet hacking, cybersecurity has become an enormous industry, with companies vying to convince the large, global companies that they can provide the best strategies for protection. This industry is characterized by permanent ongoing intense rivalry that has resulted from advanced technology. These conditions indicate ______________ in this industry.

hypercompetition

Successful business-level strategies are designed to result in: (Choose all that apply.)

increased profits. increased brand loyalty.

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

One major difference between the SWOT analysis and Porter's Five Forces model is that the SWOT analysis examines the ______, and the Five Forces examines ______.

internal and external environment; only the external environment

Principal corporate-level strategies include: (Choose all that apply.)

international expansion. concentration on a single industry. vertical integration. diversification.

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

joint venture

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

A broad declaration of an organization's purpose and the company's products and customers is identified in the company's ______.

mission statement

The term hypercompetition applies to industries that are characterized by ______ competition. (Choose all that apply.)

permanent intense ongoing

Examples of a single-use plan include: (Choose all that apply.)

programs. projects.

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

When an organization enters into a strategic alliance with a foreign company, they share ______.

risks and rewards

Because the future is unpredictable, managers should engage in ______ planning.

scenario

When the same situation occurs repeatedly, ______ plans are used.

standing

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

strategic alliance

The CEO and top managers use ______ to communicate to their managers and other employees a compelling vision of what they want the organization to accomplish.

strategic leadership

When the CEO and other top managers communicate their vision for the company to the rest of the managerial staff, this is referred to as ______.

strategic leadership

To achieve organizational goals, managers use ______ to launch courses of action that will move them towards their goals.

strategies

A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals is a(n) ______.

strategy

Strategy formulation begins with managers' systematically analyzing: (Choose all that apply.)

the factors or forces inside an organization. the factors or forces outside in the global environment.

Managers pursuing a focused differentiation strategy aim to make their company ______.

the most diversified company serving its market segment

The SWOT analysis components that are used to anticipate potential problems or opportunities for business growth outside an organization are ______, and for internal problems or assets of an organization are ______.

threats and opportunities; weaknesses and strengths

Goals that are effective should be: (Choose all that apply.)

time-limited. realistic. challenging.

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?

have only one guiding plan

unity

Challenging goals give managers at all levels an incentive to look for ______.

ways to improve organizational performance

Entering into a new industry that produces raw materials for the company's products.

Backward vertical integration

What should be the first critical component that the manager must define when determining an organization's mission?

Business

Planning takes place at three distinct levels.

Business-level plan Corporate-level plan Functional-level plan

What type of strategy allows a company to sell a product for less than their competitors and still make a profit?

Low-cost

Which of the following factors does Michael Porter's Five Forces model address?

Threats

collect and use all available information

accuracy

The overriding purpose of an organization is specified by its ______.

Mission

Strengths, weaknesses, opportunities, and threats are components of a ______.

SWOT

True or false: Scenario planning helps managers cope with the inherent unpredictability of the future.

True

Types of standing plans include: (Choose all that apply.)

policies. standard operating procedures (SOPs). rules.

The strategy of entering of entering a new industry to create competitive advantage in one or more of the company's existing divisions is known as ______________ diversification

related

Henri Fayol emphasized that managers must not be bound to a ______ plan.

static

In large organizations, planning usually takes place at ______ level(s) of management.

three

Fayol stated that effective plans should have four essential qualities, including ______.

unity, continuity, accuracy, and flexibility