BA206 Ch.5 Planning and Goal Setting

Goal or Plan? A. One month from today, I will have lost 20 pounds B. I can lose weight by eating more fruits and vegetables C. Walking might be a good way to lose some weight

A. Goal B. Plan C. Plan

To envision the full range of emergencies or setbacks their organization could experience, managers engage in ___ , envisioning possible future events that might be disruptive.

Scenario Building

As a manager, you have been asked to work with your employees to develop goals. What can you expect from this progress? (Check all that apply) A. A benefit of plans is that they lock the organization into a course of action it can stick to, even if the environment changes. B. The advantages of setting goals and making plans always outweigh the disadvantages for every organization in any environment. C. When deciding whether goals and plans will be beneficial, managers should consider whether the environment is more stable or more dynamic. D. One of the drawbacks of plans is that they can create a false sense of security.

B & C

Typically set by frontline managers, ___ are the precise, measurable outcomes expected from departments, work groups, and individuals

Operational Goals

When referring to a SWOT analysis, the letter O stands for ___ , and it refers to factors that are ___ to the organization.

Oportunities ; External

As the Board of Governors of the American Red Cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. Another option is to have planning specialists help managers across the organization make their own plans. Why might this organization's executives opt for the latter approach? Check all that apply.

The environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. When managers come up with their own plans, they are likely to be more committed to following through on them

Managers at a manufacturer of lasers know that the supply of rare earth metals, available only from certain parts of the world, could be interrupted. They conduct ___ to determine what alternative actions they can take in case a shortage occurs.

Contingency Planning

In some years, weather patterns have caused there to be few fish in local lakes, and anglers have gone elsewhere. Also, invasive carp are threatening the lakes and may someday cause fish stocks to drop indefinitely. How should these facts impact Dave and Betsy's planning?

They should develop a contingency plan in case few anglers book rooms

A. After studying for a month, Liam takes a practice test and scores 40 points higher than he did on his first practice test B. Liam will spend one hour each weeknight and three hours every Saturday and Sunday studying GMAT practice questions. C. Liam takes the test in October and scores a 720. He goes out to his favorite restaurant to celebrate. D. Based on the average test scores of students at his target schools, Liam decides he wants to earn a 710 on the GMAT.

A. Reviewing Process B. Developing an Action Plan C. Appraising Performance D. Setting a Goal

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

Company strengths and weaknesses

At a company located in California, the management team engages in ___ to develop detailed plans in case of a devastating earthquake

Crisis Planning

Helena discusses how she might arrive at a budget for her website. If she decides to hire a consultant to make the website more mobile-friendly and integrate better across social media platforms, which of the following would be true?

This would be an Operational Plan

When formulating strategy, Mi Ola's managers scan the business environment for factors that will or could impact the company's competitive advantage. Which of the following would pose a threat to Mi Ola? Check all that apply.

Unlike most clothing brands, Mi Ola contracts with U.S. factories to supply its fabric and manufacture the garments, incurring greater costs than competitors who source from overseas factories Helena Fogarty hires a designer who produces a line of bikinis that customers hate and a prominent fashion blogger features as "Ugliest Swimsuits Ever."

At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites with ___ , using planning experts to help store managers develop their own plans.

Decentralized Planning

Last winter, a guest at a nearby motel fell through the ice and was not rescued in time. The motel's name was included in news coverage of the death, resulting in negative publicity. Also, since the incident, the motel has not been able to rent out the room where the dead guest stayed. What should Dave and Betsy do with this information?

Develop a crisis plan that includes a notification system, so anyone using the lake can notify Kozy Korner of an emergency, and a supply of rescue equipment like ropes.

In the video, Helena mentions that "your plans are always going to change from day to day" because the business environment changes. She should consider ___ to gain more stability in her planning process.

Developing Contingency Plans

Dave and Betsy have run Kozy Korner for many years, and from that experience they feel knowledgeable about the most likely threats to the business. However, experience has also taught them that completely unexpected events can happen. How can they prepare for the unexpected?

Engage in Scenario Building to Brainstorm all Possible Disruptive Events

Considering all of the factors listed in the preceding SWOT analysis question, which of the following strategies would make the most sense for the Cubs in the upcoming season?

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

Investors are looking for a "hockey stick" curve in revenues, meaning that they will increase dramatically. ___ would be one way to drive such spectacular growth.

Stretch Goals

To energize employees and inspire excellence, an organization may set ___ , which are reasonable yet highly ambitious.

Stretch Goals

Typically set by midlevel managers, ___ are the desired future outcomes of the major subunits of the organization

Tactical Goals

After he finishes celebrating with his team, Jed Hoyer, the general manager of the 2016 World Series Champion Chicago Cubs, is going to do a SWOT analysis to determine his strategy for the upcoming baseball season. Help him figure out how he should classify the following information. Which of the following factors should be classified as an opportunity for the team?

There are a number of free-agent outfielders who are available for signing by the Cubs this year, many of whom have better statistics than the current team members.

As a manager, you have been asked to work with your employees to develop goals. What can you expect from this progress? (Check all that apply) A. Planning can harm an organization because it distracts employees from important outcomes. B. A benefit of goals is that they help motivate employees. C. One of the drawbacks of plans is that they can create a false sense of security. D. A benefit of plans is that they lock the organization into a course of action it can stick to, even if the environment changes.

A & B

A. On September 30, the manager reports that call center hold times for the summer construction season averaged 42 seconds, with 30 percent of all calls not being put on hold at all but 2 percent of calls exceeding 90 seconds of hold time. The plan is rated mostly successful. B. On April 1, the manager sees that nine contingent call center workers have been hired and completed training. On June 30, call center data show 5 percent of calls are on hold for more than 90 seconds. C. Based on data on how long people wait before hanging up, the manager decides the maximum time on hold should be 90 seconds. D. A pool of twelve contingent call center workers who work at home will be hired and trained before April 15. These employees can be activated anytime hold times threaten to exceed 90 seconds.

A. Appraising Performance B. Reviewing Progress C. Setting a Goal D. Developing an Action Plan

True or False? A. A company that strictly controls expenses is likely to use a low-cost leadership strategy. B. Differentiation strategies can reduce the bargaining power of large customers. C. When using a focus strategy, a company tries to create a product that will appeal to the broadest possible customer base.

A. True B. True C. False

During ___ , managers determine the organization's goals and develop a specific strategic plan.

Strategy Formulation

Managers who are analyzing how best to compete within a given industry are concerned with ___ strategy.

Business-Level

To get his employees on board with his goal of becoming the number car dealership in the Dallas-Ft. Worth area, Tex used ___. He talked to his customers and other managers, addressed conflicts between managers, and broke down barriers between departments.

Coalition Management

In discussing inventory, Helena mentions that bikinis for sale on the website are not always in stock. Say customer feedback indicates that when a customer's bikini won't arrive within two weeks, that customer usually cancels their order. Furthermore, retail stores ordering restocks of items usually find another supplier if Mi Ola cannot ship within two weeks. What would be the best action for Helena to take first?

Decide that when online customers and retail stores order bikinis, they will never have to wait more than two weeks for the order to arrive.

A ___ is a desired future circumstance or condition that the organization wants to realize

Goal

To develop effective lower-level goals, Michelle works with her management team to establish ___, which measure how well the organization is achieving its strategic goals.

Key Performance Indicators (KPIs)

Mi Ola's managers meet to develop the company's strategy. One of the first things they do is a SWOT analysis. Which of the following would be an opportunity for Mi Ola? Check all that apply.

Mi Ola's new line is featured in the magazines Seventeen, Elle, and Monthly Fashion. Mi Ola partners with an environmental organization to protect the coral reefs and other ocean life off Australia's Gold Coast, a popular surfing destination.

Helena Fogarty was involved in online business development in the early days of the Internet when she worked for other companies, and now online retail plays a significant role in how Mi Ola sells to its customers and receives their feedback. In fact, Helena says "it's really the most important channel for us."

Next 2 problems refer to paragraph

Imagine that the American Red Cross Board of Governors sets a goal of increasing online donations by 15 percent year over year for the next three years. They view this goal as very challenging but achievable. Why might the organization's leaders set such an ambitious goal? Check all that apply.

Setting a goal that seems impossible to many will cause less motivated employees to quit the organization, raising the average level of performance. Highly ambitious goals can inspire employees and volunteers. Stretch goals are a way to maintain results while making incremental improvements, ensuring that stakeholders feel comfortable with the organization's direction.