Unit 4 Exam

Which statement reflects a common problem with plans?

Mid- and lower-level managers may feel that they must follow a plan even when their experience shows it is not working.

What does "death by planning" mean?

Planning can delay or prevent action.

Kelly has experience and knows there is only one way to run her business—full steam ahead! Dr. Kelly will struggle with the planning cycle that recommends

considering alternatives

Strategic management

considers the entire organization and how the pieces fit together

The Deepwater oil spill in the Gulf of Mexico in 2010 was made much worse because BP Oil did not have plans in place for surprises. Planning for unexpected events is called

contingency planning

Companies strive to provide a product or service that is distinct, or ________, in some way from their competitors.

differentiated

Domestic U.S. companies conducting a PESTEL analysis consider national growth, employment, inflation, and interest rates. These are aspects of which macro term?

economic

E-commerce includes online and smartphone sales. The younger the shopper, the more likely he or she is to conduct "business" using a smartphone. E-commerce refers to

exchanges or transactions that occur electronically

The planning cycle is represented with six steps in our text, but in practice, it has

innumerable steps, with many "steps" repeated and reviewed as events unfold, just as a driver checks the map or her GPS frequently

Michael Porter defined classified competitive strategies based on a grid of price strategy and target markets. What is Walmart's strategy in this grid?

overall low cost

Planning defines desired outcomes as well as mileposts to define progress. These provide a yardstick for assessing when things are progressing and when they need correction. Plans set ________.

performance standards

Many companies forbid smoking at work. This is an example of a

regulation

When talking about goals, the acronym SMART stands for

specific, measurable, achievable, realistic, and time-bound

Senior management has written some policies about hiring new employees. This allows middle management to make decisions without constantly going back and asking permission. These plans are

standing plans

Procedures are steps to be followed in established and repeated operations. An investment advisor should write procedures for

the proper method for wiring funds to JP Morgan bank

People are not motivated when they do not have clear goals and do not know what is expected of them. ________ reduces uncertainty and indicates what everyone is expected to accomplish.

Planning

Macy's online store differs from the in-store experience. The online store offers free delivery on larger purchases, free returns, extensive information about the products, and reviews from other customers. Why might Macy's do business this way?

Many of the strategies needed to succeed in e-commerce are very different from competing in a non-digital environment.

A company is crafting a value proposition for its flagship product. The goal is to communicate to customers the main reason the product

is best suited to their needs

Management by objectives is Peter Drucker's version of goal setting. His concept was to engage the employee's intrinsic motivation. A manager should discuss the corporate goals with his employees and then

jointly agree on goals, so that the employee commits to the goals

A competitive analysis of Google and Microsoft would look at their ________ . Both pay high salaries and offer great benefits. But their incentive structures are different. Google encourages collaboration and Microsoft encourages competition. Google's employees have been more innovative than Microsoft's.

personnel strategy

If a manager is listing resources that can be used for a competitive advantage, which item would NOT be on the list?

the economy

The advertisements for the Apple MacBook show an edge-on image of a MacBook with the caption "MacBook: Light. Years ahead." This refers to the lightweight design and the advanced tech inside. This is Apple's

value proposition

Johnson & Johnson manufactures medical devices, pharmaceuticals, and consumer health goods. Their code of ethics explicitly puts customers—doctors and patients—ahead of stockholders and profits. The code of ethics guides employees in their decisions to reflect the company's

values

Not all players in an industry will be in direct competition with your organization. The first step in competitor analysis is to decide who your competitor is. For example,

Ford and Porsche both make cars, but Ford does not compete with Porsche

Resources are always scarce in organizations, and managers need to make sure the resources they have are used effectively. ________ helps managers determine where resources are most needed so they can be allocated where they will provide the most benefit.

Planning

Planning activities provide an opportunity for input from the departments and people affected. Some organizations establish planning committees that intentionally include people from ________ backgrounds to bring ________ perspectives into the planning process.

diverse, new

Creating resources that meet the VRIO criteria are strategically important to a firm because:

Firms that possess these types of resources may be able to experience a sustained competitive advantage.

What are some of the things you would change about the class that would make it beneficial? (5 points)

Short answer

Which concepts had the biggest impact on your life this semester? (5 points)

Short answer

American Spoon is a small company in Petoskey, Michigan that uses fruit from local farmers to handcraft gourmet fruit preserves and condiments in small batches. Where would you first use this information in the strategic management process?

Strategic Objectives and Analysis

The threat of new entrants in Porter's Five Forces analysis is often the most important force affecting an industry. In the food truck industry, for example, it is easy for new firms to enter and compete. The food truck industry would benefit if there were ________, such as required and restricted licenses.

barriers to entry

Identifying the target customer and asking about customer demographics (age, income, location, gender, politics, etc.) is part of

customer analysis