MGMT Test 2

A goal contains

- the attribute sought - the target to be achieved, - an index to measure progress (unit to measure the target) - a time frame

Steps of the planning process

1. create mission statement 2. assess current situation 3. state goals 4. evaluate the gap between the current position and goals 5. specify assumptions about the future 6. create the plan 7. implement the plan 8. evaluate the results

Plan

a set of activities intended to achieve goals, whether for an entire organization, department or an individual.

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price? a. Differentiation b. Distinctive competence c. Diversification d. Divestment

a. Differentiation

What term describes what a firm does well relative to its competitors? a. Distinctive competence b. Cost leadership c. Related diversification d. Unrelated diversification

a. Distinctive competence

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share? a. Growth b. Focus c. Maturity d. Cash Cow

a. Growth

Which of the following characteristics relates to a business-level strategy? a. The area of responsibility usually assigned to the divisional-level managers b. Short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services c. The scope and resource deployment components of strategy for the enterprise as a whole d. Plans that are intended to achieve operational goals

a. The area of responsibility usually assigned to the divisional-level managers

The first step in strategic planning is a. determining the mission and strategic goals. b. doing a comprehensive environmental analysis. c. carrying out a careful SWOT analysis. d. identifying the firm's distinctive competencies.

a. determining the mission and strategic goals.

Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a a. distinctive competence. b. virtual monopoly. c. rare synergy. d. strategic goal

a. distinctive competence.

The purpose of a strategy is to a. take advantage of what the organization does well, or hopes to do well. b. get the organization moving on a path to achieve its tactical goals. c. boost market share. d. control organizational resources in a rational and efficient manner.

a. take advantage of what the organization does well, or hopes to do well.

Strategic Management

all the processes an organization undertakes to develop and implement its strategic plan

Which of the following characteristics relates to global business (globalization)? a. The buying, selling, and trading of goods and services across national boundaries b. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business c. Allows selected American firms desiring international trade to form monopolies in order to compete with foreign cartels d. Acquires goods in one country and sells them to buyers in another country

b. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

You are the international marketing manager for Checker Burger, Inc., producer of a popular soy burger. There is an excellent market for your burgers in the republic of East Slabovia, a producer of high-quality brandy. The only problem is that East Slaboviar currency is not accepted on the international currency exchange. What can you do to help your trade? a. Appeal to the International Monetary Fund for help. b. Barter burgers for brandy. c. Hire an export agent. d. Trade in a mutually acceptable currency.

b. Barter burgers for brandy

Which of the following refers to the initial stage of the product life cycle when the product is introduced? a. Growth b. Birth c. Maturity d. Focus

b. Birth

Which of the following characteristics relates to the World Bank? a. Basic mission is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world b. Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries c. A global association of member countries that promotes free trade d. A partnership formed to create competitive advantage on a worldwide basis

b. Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

What term describes restrictions on the amount of a particular currency that may be bought or sold? a. Cartel b. Exchange controls. c. Embargo. d. Exchange rate.

b. Exchange controls

When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in? a. Decline b. Maturity c. Growth d. Stagnation

b. Maturity

Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy? a. Strategy b. Mission c. Plan d. Focus

b. Mission

What name is given to the maximum number of units of a particular product that may be imported into a country? a. Dumping b. Quota c. Exchange controls d. Cartel

b. Quota

Which of the following refers to a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment? a. SWOT analysis b. Strategy c. Diversification d. Operational plans

b. Strategy

Which of the following characteristics relates to the product life cycle? a. A business-level strategy aimed at achieving the overall lowest cost structure in an industry b. The cycle of birth, growth, maturity, and decline of a product c. A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price d. A definition of an organization's fundamental purpose and its basic philosophy

b. The cycle of birth, growth, maturity, and decline of a product

What is meant by decline? a. The product life cycle stage when the product's market share either slows or has no growth b. The product life cycle stage marked by decreases in the product's market share c. The product life cycle stage characterized by dramatic increases in the product's market share d. The initial stage of the product life cycle when the product is introduced

b. The product life cycle stage marked by decreases in the product's market share

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of garments being imported from China and Vietnam by imposing a. a trade deficit. b. a quota. c. an embargo. d. an exchange control.

b. a quota

n SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called a. a weakness. b. a strength. c. an opportunity. d. a threat.

b. a strength.

What are strategic goals? a. A set of activities intended to achieve goals, whether for an entire organization, department, or an individual b. A business-level strategy aimed at achieving the overall lowest cost structure in an industry c. Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services d. Alternate courses of action to be undertaken if certain organizational or environmental conditions change

c. Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of a. an operational goal. b. an operational plan. c. a mission statement. d. a strategic goal.

c. a mission statement.

By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit a. embargoes. b. quotas. c. dumping. d. surpluses.

c. dumping

What is meant by focus? a. A course of action for implementing strategic plans and achieving strategic goals b. A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price c. The product life cycle stage marked by decreases in the product's market share d. A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

d. A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

What name is given to the final result that a firm wishes to achieve? a. Focus b. Mission c. Plan d. Goal

d. Goal

Which of the following refers to the buying, selling, and trading of goods and services across national boundaries? a. Importing b. Global business (globalization) c. North American Free Trade Agreement (NAFTA) d. International business

d. International business

What name is given to the product life cycle stage when the product's market share either slows or has no growth? a. Dog b. Decline c. Focus d. Maturity

d. Maturity

When a nation pays for imports with its own goods, it is using a. an embargo. b. a quota. c. an ad valorem tariff . d. a countertrade agreement.

d. a countertrade agreement

In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called a. a strength. b. a threat. c. a weakness. d. an opportunity.

d. an opportunity

When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of a. market penetration. b. cost leadership. c. premium branding. d. differentiation.

d. differentiation.

Most businesspeople engaged in international trade underestimate the importance of a. trade barriers. b. import quotas. c. language barriers. d. social and cultural differences.

d. social and cultural differences

Strategic planning differs from general planning in that it focuses on a. creating a distinctive corporate mission. b. the rational allocation of resources. c. internal problems affecting long-term problems. d. the external environment and long-term goals.

d. the external environment and long-term goals.

Benefits of planning

focus, coordination, motivation

Strategic Goals

goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

Operational Goals

short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services

Goal

the final result that a firm wishes to achieve

Tactical Goals

the intermediate goals of the firm, which are designed to stimulate actions necessary for achieving the strategic goals