MGMT Exam 2

Difference between a single use plan and a standing plan

A single-use plan is designed to be used once, while a standing plan is designed to be used repeatedly.

Which of the following factors should be classified as an opportunity for the team?

A number of free-agent outfielders are available for signing by the Giants this year. Many of them have better statistics than the current team members.

Bethany's _______ lies in the atmosphere she creates at Books Galore.

Core Capability

Diversification is useful because:

It prevents companies from becoming too dependent on any one business unit

Differentiation strategies increase competition because they reduce customer loyalty.

False

Universal Music Group has plans to acquire EMI, another large record company.

Growth Strategy

To acquire a car by October 31

Not Specific

Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring another coffee shop one town over. This is an example of

Related Diversification

Verizon develops and deploys low-altitude telecommunications systems. This is an example of

Related Diversification

The Human Resource Division will reduce the overall cost of fulfilling employment requisitions by eliminating the use of outside recruiting agencies.

Tactical Plan

A company that actively tries to become more efficient is likely to be pursuing a cost leadership strategy.

True

A company that creates a distinctive product is likely to use a differentiation strategy.

True

When a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of

Unrelated Diversification

When referring to a SWOT analysis, the letter W stands for _______ and it refers to ____________factors that are to the organization.

Weaknesses, Internal

Bethany is likely to see new methods of selling books as

an opportunity

A manager who allocates $1 million to one product while reserving $250,000 for another project is using a _______ to prioritize the projects.

budget

Goal: To be the best restaurant in Atlanta by September 2014

not measurable

The biggest challenge that Bethany faces in assessing the need for strategic change is

strategic dissonance

We are known for our operating efficiency and for reducing insurance costs for our customers.

Mission Statement Plan

Directions on how to handle employee-relations issues

Standing Plan

Which of the following strategies is Bethany more likely to adopt for her business?

Breaking away from the bookstore as soon as possible to work on establishing her coffee shop

Which of the following are drawbacks to using a portfolio strategy such as the Boston Consulting Group matrix? Check all that apply.

Classifying an organization as a cash cow can weaken a strong performer. Managers rarely get accurate information on a company's market share or market growth.

When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:

Company strengths and weaknesses

when evaluating alternatives, you should be careful:

Not to use satisficing, rather than maximizing, as a decision-making approach

Each human resource employee will use advertisements and personal networking to attract at least 10 qualified applicants per open position.

Operational Plan

Using your knowledge of SMART goals, select the best goal.

Our division will increase profits by 10% by the end of 2013.

An action plan contains which of the following elements needed to meet a goal? Check all that apply.

Philosophy (why) People (who) Specific steps (how)

Considering all of the factors listed in the preceding SWOT analysis question, what strategy would make the most sense for the Giants in the upcoming season?

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

An annual budget

Single use Plan

A plan to reorganize all of the jobs in an office

Single use plan

the acronym SMART

Specific Measurable Attainable Result -oriented Time - bound

A policy that states that all returns will be accepted, regardless of where they were purchased

Standing Plan

We will eliminate redundancies throughout the corporation to decrease our overall expenses by 20%.Strategic

Strategic Plan