MGMT Exam 2 - 2nd

Strategy formulation focuses on how the strategy is achieved, while strategy implementation focuses on what the strategy is T/F

False

T/F strategy formulation focuses on how the strategy is achieved, while strategy implementation focuses on what the strategy is

False

T/F most managers agree that a formal goal setting program must begin from the top of the organization if it is to be effective

True

Tactical plans are to battle what strategy is to a war

an organized sequence of steps designed to execute strategic plans.

Decision-Making Conditions

certainty, risk, uncertainty

Even while establishing the organization's basic goals and plans is crucial, the core of formal goal setting is

collaborative goal setting and planning

when conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify

company strengths and weaknesses

Most managers agree that a formal goal-setting program must begin from the top of the organization if it is to be

effective

Planning starts with understanding the

environment.

when harry addresses decisions about where products and services are created, stored, and distributed, he is addressing the _______ aspect of operations systems design

facilities

Failure to anticipate the decline stage in the earlier life cycle stages will result in

firms going out of business.

When discussing strategic goals "intermediate term" is sometimes defined as

five to ten years,

interacting groups and teams

form of group and team decisions making where a designated group makes a decision after the different members interact

nominal groups

form of group and team decisions making where a group of ecperts generate alternatives, state them in turn, and vote on rank-order

delphi groups

form of group and team decisions making where a group of experts give opinions individually which are then combined or averaged

The SWOT analysis is to

formulate strategies that support the mission

A company's mission statement outlines its

fundamental purpose and distinguishes itself from other businesses.

cash cows

generating high profits and needing little investment on the BCG matrix

When executing tactical plans evaluate each course of action in light of its

goal

When executing tactical plans monitor ongoing activities for

goal achievement

BCG Matrix is used for evaluating businesses through their

growth rate in the market and relative market share

question mark

having a small share of a rapidly growing market on the BCG matrix

Dogs

having a small share of a shrinking market on the BCG matrix

At the introduction stage, the demand for the product may be

high and even sometimes outpace the firm's ability to supply it.

Finished goods

high-level production scheduling systems in conjunction with marketing

When executing tactical plans monitor

horizontal and vertical communication and integration of activities

Goals should be consistent across the organization

horizontally, from one department to the next.

The product Life Cycle is a model that shows

how sales volume changes over the life of products.

When developing tactical plans recognize and identify

human resource commitments

(3) steps in the decision making process?

identifying alternative courses of action, developing a plan to put the decision into effect, choosing the alternative that is likely to be the most effective

The major barrier managers face in goal setting and planning are

inappropriate behavior, improper reward system, dynamic complex environment, reluctance to establish goals, resistance to change and constraints

Manager's focus during the introduction stage must be to

increase production without sacrificing the product's quality.

When executing tactical plans obtain and distribute

information and resources

determining the _____________ mix is a place to start naturally when designing operations systems

managers have to decide how many and what kinds to offer: product-service

organizations set a wide variety of goals, and occasionally these goals conflict with one another or contradict one another. what should managers do in such situations?

managers should optimize, which means balancing and reconciling possible conflicts among goals

Other strategies for managing growth in the introduction stage include

managing inventory and cash flow as well as hiring new employees.

Robotics powered by computers is another development in

manufacturing technology.

Good strategies are those that support the

mission

When developing tactical plans you must recognize and understand

overarching strategic plans and tactical goals

SWOT stands for

strengths, weaknesses, opportunities, and threats

the goals that are directly based on the strategic goals and plans are the _________

tactical goals

managers make decisions under different types of conditions, what describes a state of risk?

the manager understands the availability of each alternative and the probability that each will have the desired outcome

the four basic levels of goals

the mission as well as strategic, tactical, and operational goals

which of the following describes operational goals?

these goals are set by lower-level managers, are specific in scope, and have short time frames

what are common disadvantages of group or team decision making? (3)

to avoid conflict group members pretend to agree with each other, decision making takes more time, dominant group members exercise more influence than they should

what are reasons that organizations set goals?

to give people in the organization a unifying direction, to prompt managers to make adjustments to improve performance, to aid in measuring results

Strategy formulation focuses on

what the strategy is

Growth

which stage of product life cycle, sales of a product or service grow, but competitors begin to enter the market.

Introduction

which stage of product life cycle: managers hire more employees and manage inventory and cash flow as demand increases

etrade facilitates stock transactions for its customers, because etrade is a service organization, its operations process transforms resources into

intangible outputs

Strategies to survive the decline stage include

maintaining low costs, differentiating products, and identifying new products or services.

Management by objectives (MBO) is a formal goal-setting process involving collaboration between

managers and subordinates; the extent to which goals are accomplished is a major factor in evaluating and rewarding subordinates' performance

Contingency planning

determines alternate courses of action to be performed if an anticipated course of action is suddenly disrupted or deemed inappropriate

Strategy formulation is the set of processes involved in

developing the organization's strategies

Third

"consider each alternative in terms of how feasible and satisfactory it is and what its likely consequences will be" is the ______ step of the decision making process

First

"define the decision that needs to be made" is the ________ step in the decision making process

Sixth

"determine whether the decision was correct and well executed" is the ______ step in the decision making process

Second

"identify some alternatives" is the ________ step of the decision making process

Fifth

"make an operational plan to put the decision into effect" is the ______ step of the decision making process

Fourth

"select the most effective alternative" is the ________ step of the decision making process

When discussing strategic goals, "long term" is sometimes defined as

10 years or more,

If the company has decided to use Miles and Snow's prospector strategy, which of the following actions would best support this strategy?

Adopt a flat, decentralized organization design

"At Apple, managers ask, 'Should our next iPad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an iPad?'" is a _______ level strategy

Business

"Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers" is a ________ level strategy

Business

SWOT analysis identifies two categories of organizational strengths

Common Strength and Distinctive Competencies.

"Never previously known as a computer hardware company, Microsoft decides to enter the tablet manufacturing business, producing the Microsoft Surface" is a ________ level strategy

Corporate

"The manufacturer of Chobani Yogurt decided to open a flagship store in Soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing yogurt for 7 years, the company never tried to run a restaurant before" is a _______ level strategy

Corporate

understanding the organization's tactical goals leads to _________ the plan

Developing

In 2020, FB announced plans to introduce a mobile gaming app designed for live gameplay; the app took several years to develop and was tested with users for 18 months before its release. the decision FB made to develop a mobile gaming app is a _______ decision

Nonprogrammed

your company typically increases each department's budget by a certain percentage over the prior year's budget; however, this year managers were asked to consider whether each budget item is still necessary and whether new budget items are needed to meet the department's needs. as a result, this year's budget process is a __________ decision

Nonprogrammed

_________ goals are set for and by lower-level management

Operational

you are the CEO of a large scanner manufacturer. you just caught a department manager embezzling money from your company; the decision you make about whether to fire the department manager is a ________ decision

Programmed

the four basic kinds of inventories are

Raw materials, work-in-process, finished-goods, and in-transit inventories

if an organization uses an artificial device to perform functions customarily performed by humans, the organization is using a

Robot

The starting point in formulating strategy is usually with

SWOT analysis

Mikaela started attending a Zumba class on Tuesday and Thursday afternoons and found that it gave her a good workout, so that has been her exercise routine every since. The __________ involved in this decision-making process ensures Mikaela exercises on a regular schedule

Satisficing

________ goals are set by and for top management

Strategic

the goals that are determined directly from the mission are the _______ goals

Strategic

__________ goals are set by and for middle management

Tactical

set by middle managers, focused on how to achieve broad goals and have medium time frames

Tactical

every morning when you walk into starbucks, you order the same thing

a venti green tea frappuccino with extra whipped cream; you can't drink anything else at starbucks because you don't like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. your decision about what to order at starbucks today is a __________ decision: Programmed

What are some reasons that organizations set goals? (3)

aid in measuring results, prompt managers to make adjustments to improve performance, give people in the organization a unifying direction

decline

at which stage of the product life cycle, managers look to increase the company's market share or raise prices, because otherwise revenue will fall.

a manager is asked to optimize a set of goals. What is the manager being asked to do?

balance and reconcile competing goals

a manager is asked to optimize a set of goals; what is the manager being asked to do?

balance and reconcile competing goals

businesses commonly rely upon groups to make decisions because of the many advantages to group decision making, what are some advantages of group decision making? (2)

better decisions usually result, acceptance of the final decision is more likely

The corporate mission and strategy are established by the

board of directors.

The maturity stage is

crucial for the survival of the firm.

what is most accurate about decision making under risk?

decision making under risk is when the decision maker knows the alternatives and their associated risk probability estimates

At the maturity stage, there is less demand for the product and a

decline in the number of new firms producing the product; there is also a decline in the number of established firms producing the product.

At the declining stage, there is a

decrease in the demand and total sales for the product or technology as well as a reduction in the number of firms producing the product.

Strategy formulation and implementation can be

deliberate or emergent

as a member of a team of subject matter experts in the management of engineering projects, you need to organize discussions in a way that facilitates participation by all the experts. Which team decision-making approach will be best in ensuring input from the team experts?

delphi group technique

SWOT enables an organization to evaluate its

internal strengths and weaknesses, and identify the opportunities and threats in its environment.

Effective operations management requires controlling

inventories, often known as materials control.

which of the following best describes the administrative model of decision making?

it assumes that managers use incomplete and imperfect information

what describes the classical model of decision making?

it assumes the managers are rational, and it assumes that managers act in the best interests of the organization

A task force of this nature frequently consists of

line managers with a special interest in the pertinent planning topic.

when designing facilities, decisions must be made about their ________ , which concerns their physical positioning or geographic site.

location

strategic plans typically have a

long-term focus

advantages of group and team decision making (3)

more information and knowledge are available in the process, the final decision will generally be better accepted, the resulting decision is often better communicated

When discussing strategic goals "short term" is sometimes defined as

one year or less.

The quality of products and services can be increased through improved processes. During the actual transformation process, methods are the

operating systems that the company uses.

Operational Plans focus on executing tactical plans in order to meet

operational goals

The competitiveness, quality, productivity, and effectiveness of an organization are directly impacted by

operations management.

Within the SWOT Analysis, External Analysis are made up of

opportunities and threats

when referring to a SWOT analysis, the letter O stands for _________ , and it refers to factors that are ________ to the organization

opportunities; external

Organizational strategy and operations management influence one another in

opposite ways.

what term is used to refer to the reconciliation of competing goals?

optimizing

Contingency planning is another important type of

planning

Goal-setting practices strongly affect other aspects of

planning

Formal goal-setting is typically used to involve subordinates in

planning and goal-setting processes and to make clear to them what they are expected to accomplish in a specific time frame

Formal goal setting frequently involves

planning and setting goals for specific managers, their units, or work groups.

Strategic planning

planning at the highest level of management e.g. CEOs CFOs

Four functions of management

planning, organizing, leading and controlling

An organization may appoint a task force for planning to assist in the creation of

plans.

A state of certainty exists when the decision maker knows the

possible alternative choices and the conditions associated with each. Rarely, if ever, will a decision be made in a state of true certainty.

A company's mission statement also defines the

scope of the business's operations in terms of products and markets.

an organization that transforms resources into an intangible output that is available when and where customers want it is a

service organization

_______ goals

set by top management, broad in scope, and have a long time frame: Strategic

Work in process

shop floor control systems

set by top management, broad in scope, and have a long time frame

strategic

Managers must understand that tactical planning must take into account tactical goals that are derived from a broader

strategic goal.

tactical plans are directly based on the _____________ (2)

strategic plans and tactical goals

At the growth stage, it is crucial to implement

strategies to slow the entry of competitors into the market so the firm can maintain competitive advantage.

In transit pipeline

transportation and distribution control systems

There are many different types of inappropriate goals, like

unattainable goals, and too much focus on success metrics that are either quantitative or qualitative.

Depending on the sort of goods or services provided by the company, operations management creates

value and utility of one type or another

Strategic, tactical, and operational goals must all be consistent with one another in order for an organization to be considered

vertically consistent.

service organizations transform resources into outputs just as manufacturing does; as manager of a beauty salon, you have to decide how many clients can be seen by each stylist in a given day. what kind of decision is this?

capacity decision

Stars

deserving of large investment to support continued growth on the BCG matrix

Goals have four main purposes

direction, planning, motivation, evaluation and control

T/F a well-conceived strategy has three components

distinctive competence, scope, and resource deployment: True

The BCG matrix also prescribes the preferred

distribution of cash and other resources among these businesses

operations management are helpful and important to managers because (3)

good operations ensure competitiveness and overall organizational performance, operations management can create value and utility of one type or another, operations management enhance quality and productivity

barriers to goal setting and planning

inappropriate goals, improper reward system, dynamic and complex environment, reluctance to establish goals, resistance to change, and constraints are all

the organization's mission include

premises, values, directions, purpose

At growth stage more firms begin

producing the product, and sales continue to grow

In the maturity stage strategies to be adopted include

product differentiation, maintaining low costs, and identifying new products and services that the firm can produce.

Valerie has been asked to analyze the introduction, growth, maturity, and decline stages projected for a new product at her company. By doing so, she is analyzing the _________

product life cycle

Raw materials

purchasing models and systems

The CEO is in charge of

putting the strategy into action and plays a significant part in the whole planning process.

During the growth stage managers must guarantee their products

quality and delivery and identify differences between their product and that of their competitors.

Operations management enhance

quality and productivity

The JIT system lowers the organization's investment in

raw material storage space and in the materials themselves. It was first made popular by the Japanese.

BCG matrix is considered

relatively narrow and overly simplistic

When developing tactical plans specify

relevant resource and time issues

how much a decision maker is willing to gamble or take a chance

risk propensity

Any artificial technology that is capable of doing tasks typically considered to be suitable for humans is referred to as a

robot.

sam owns a small cafe that faces competition from a new restaurant across the street. Sam may want to perform a SWOT analysis, or a systematic evaluation of the internal and external environments, to inform his ___________

strategy formulation

what are managers focusing on when they determine the organization's strategy?

strategy formulation:

Within the SWOT Analysis, Internal Analysis are made of

strengths, which are distinctive competencies, and weaknesses

Tactical plans are created to carry out some aspects of a strategic plan and are aimed at accomplishing

tactical goals.

operational plans are directly based on the ____________ (2)

tactical plans and operational goals