Mgt Chap 8
b
SWOT analysis is a planning exercise in which managers identify external environmental strengths and weaknesses. True False
a
Scenario planning is also known as contingency planning. True False
c
A _____ enables managers to make midcourse corrections if environmental changes warrant or to change the thrust of the plan altogether if it no longer seems appropriate? standing plan long-term plan rolling plan contingency plan general plan
a
A beverage manufacturer enters the snack food business with the purchase of a popular potato chip company. This is an example of diversification. True False
b
A brand of cereal attracts customers by offering the lowest prices among other brands of cereals. The company uses a differentiation strategy in this situation. True False
a
A business plan that is updated every year depending on the changes in the organization and in the external environment that have taken place in the previous year is known as a rolling plan. True False
b
A business-level plan details the short-term divisional goals that will allow the division to meet corporate goals. True False
d
A functional-level plan states the goals that the managers of each function will pursue to help their division attain its ______ goals, which, in turn, will allow the entire company to achieve its ______ goals. departmental-level; functional business-level; department divisional-level; divisional business-level; corporate functional-level; corporate
a
A specific action plan created to complete various aspects of a program is called a project. True False
b
A winery decides to manufacture its own packaging bottles instead of purchasing them from a bottle manufacturing company to reduces costs. The winery is employing a forward vertical integration strategy. True False
a
A written set of instructions that describes the series of actions that a manager should take in a specific situation is called the standing operation procedure (SOP) of an organization. True False
b
A written set of instructions which describes the series of actions that a manager should take in a specific situation is known as a: policy. standard operating procedure. heuristic. rolling plan. rule.
b
A(n) _____ broadly defines an organization's purpose, what it is seeking to achieve from its activities, identifies what is unique or important about its products to its employees and customers, and also distinguishes or differentiates the organization in some ways from its competitors. business plan mission statement SWOT analysis general advertisement strategic plan
a
A(n) _____ is a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. strategy objective motto allocation accomplishment
b
A(n) _____ strategy indicates how a division intends to compete against its rivals in an industry. corporate-level business-level functional-level departmental-level international-level
b
According to Henry Fayol an effective plan should have four qualities, namely unity, continuity, accuracy, and _____. sustainability flexibility accountability consistency synergy
d
According to Henry Fayol, _____ means that managers need to make every attempt to collect and use all available information in the organization's planning process. unity flexibility continuity accuracy synergy
b
According to an organization's SWOT analysis, which of the following would be a potential strength? The organization has the potential to break the barriers of entry to a new market. The organization has the highest profit margin in its market. The organization's research and development sector is on the decline. The organization's customer preferences are rapidly changing. There is a lack of co-operation between the organization's various divisions.
d
An agreement in which managers pool or share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture is called a(n) _____. takeover agreement franchise sharing license lending strategic alliance foreign subsidiary
e
Another name for contingency planning is _____. single-use planning ad-hoc planning business planning divisional-level planning scenario planning
d
Policies, rules, and standard operating procedures (SOPs) are all types of _____ plans. single-use functional rolling standing scenario
d
As a part of its yearly planning activities, PDQ Financial Services, generates a list of possible future scenarios and creates a plan to respond to each of these forecasts. PDQ Financial Services is practicing _____. single-use planning ad-hoc planning divisional-level planning contingency planning functional planning
d
Because of the hostile external environment, AKY Consulting, treats its multiyear corporate-level plan as a _____ plan in order to maintain flexibility without losing sight of the need to plan for the long term. fixed general standing rolling business
b
Cameo Ltd., a record label company, subsequently entered the airline industry to expand business. This example of a record label company entering the airline industry is an example of _____. vertical integration unrelated diversification related diversification horizontal integration concentration
b
Corporate, business, and functional-level plans can all be applied over the same time horizon. True False
b
Focused low-cost strategy serves a major segment of the overall market and tries to be the lowest-cost organization in the entire market. True False
b
Functional goals and strategies should be independent of divisional and corporate goals and strategies. True False
a
Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals is the last step in implementing strategy. True False
b
Implementing is a process managers use to identify and select appropriate goals and courses of action for an organization. True False
a
In a first of its kind, a multinational tire manufacturer, introduces a new range of premium tires that can handle extreme temperatures better at a higher price. The tires are designed keeping in mind the climatic conditions in the Middle East and products are marketed only in the Middle East. The manufacturer is pursuing ____. a focused differentiation strategy a focused low-cost strategy a general differentiation strategy a general low-cost strategy both, a low-cost as well as a differentiation strategy
d
In large organizations the functional level of management is also known as the _____ of management. business level corporate level divisional level departmental level top level
b
In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as a(n) _____. strength weakness opportunity threat advantage
a
Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson combining a part of their resources to manufacture mobile phones is an example of a(n) _____. joint venture acquisition wholly owned subsidiary merger hostile takeover
b
Most electronic goods have the option of changing the operating language. This done by manufacturers so that the same electronic device can be supplied and marketed around the world. The manufacturers in this case are applying a(n) _____. focused-differentiation strategy global strategy related diversification strategy multidomestic strategy unrelated diversification strategy
e
Selling the same standardized product and using the same basic marketing approach in each national market is called _____. unrelated diversification strategy multidomestic strategy national strategy focused-differentiation strategy global strategy
b
Standing plans are useful in situations that are unusual or situations that are one-of-a-kind. True False
b
Synergy is obtained when the value created by two divisions operated separately and independently is greater than the value that would be created by two divisions cooperating. True False
a
The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifies the decision to all the departments associated with the division. The departmental managers must alter their _____ to accommodate the earlier release date. functional-level plan business-level plan divisional-level plan corporate-level plan strategic-level plan
a
The ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates is called strategic leadership. True False
a
The first step in defining an organization's mission is to define its business. True False
b
The level of foreign involvement and investment and degree of risk is least in wholly owned foreign subsidiaries. True False
e
The method of international expansion which presents managers with many threats and is the most expensive due to the high level of foreign investment is the method of international expansion through _____. joint ventures exporting and importing licensing franchising wholly owned subsidaries
e
The pharmaceutical industry is extremely dynamic. A company that releases a product to the general public with the intention of keeping prices high may see quick competition arising from other products made from different compounds that perform the same functions as the company's product. According to the five forces model, this type of threat is called _____. the level of rivalry among organizations in an industry the potential for entry into an industry the power of large suppliers the power of large customers the threat of substitute products
a
The second and intermediate step in an organization's planning process is to analyze the current situation and develop a strategy which is also called strategy formulation. True False
a
Typically ______-level goals and strategies require intermediate- and short-term plans. functional business divisional corporate global
d
There has been a rapid increase in the percentage of population of a third-world nation switching to cellular technology in recent years. A major multinational telecommunication services company decides to take advantage of this change and plans to setup industry in the country with the intention of dominating the country's telecommunication market. This is an example of a _____. divisional-level strategy departmental-level strategy functional-level strategy corporate-level strategy business-level strategy
a
Though a company's netbook prices are higher than other netbooks with the same configuration, the company offers features that are exclusive only to its netbooks. The company is following a differentiation strategy. True False
c
To determine an organization's missions and goals, managers must first _____. perform a SWOT analysis apply the Five Forces Model define its business develop a long-term plan develop a short-term plan
a
Which method of international expansion poses the least amount of risk? Exporting Franchising Licensing Wholly owned subsidiary Joint venture
c
Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true? Organizations stuck in the middle tend to have high levels of performance than those that pursue a low-cost or a differentiation strategy. Focusing on differentiation of a product will result in reduced costs for a company. Extremely well managed companies may be able to keep low costs and differentiate their products. Managers try to gain a competitive advantage by focusing only on driving the company's costs down below the costs of industry rivals. Managers try to gain a competitive advantage by focusing only on distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.
e
_____ are used in situations in which programmed decision making is appropriate. Single-use plans Functional plans Rolling plans Scenario plans Standing plans
a
_____ is a corporate-level strategy that emphasizes on reinvesting a company's profits in strengthening its competitive position in its current industry. Concentration on a single industry Forward vertical integration Diversification Backward vertical integration International expansion
d
_____ is 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. Business-level strategy Divisional-level strategy Corporate-level strategy Departmental-level strategy Top-level strategy
