Chapter 5: Planning : Management

Place the steps of the planning/control cycle in the correct order, with step one listed first (at the top) and step four listed last (at the bottom)

1. make the plan 2. carry out the plan 3. control the direction by comparing results with the plan 4. control the direction deviations and/or improving future plans

What are three things that should be included in a firm's business model?

A description of the industry the firm is entering How the firm will market to customers The firm's expected revenues and expenses

What are two advantages for a company that establishes deadlines?

Deadlines aid in making quicker decisions Deadlines motivate employees to focus on the goal

Who is responsible for tactical planning?

Middle management

True or false: One reason a company might create a bad strategic plan is because they make incorrect assumptions about what will happen in the market going forward.

True

A business plan is a document that outlines

a proposed firm's goals, strategy for achieving them, and standards for measuring success.

Long-term goals (select all that apply)

are also referred to as strategic goals focus on achieving strategies in the company's strategic plan span one to five years

SMART goals (select all that apply).

are specific are results-oriented are measurable have target dates are attainable

A document that outlines a proposed firm's goals, its strategy for achieving those goals, and the standards for measuring success is known as a _______.

business plan

Which of the following verbs would be appropriate for a results-oriented goal? (select all that apply)

decrease acquire complete

A company's strategy can best be described as a(n) _______ about what long-term goals or direction to pursue for the survival or prosperity of the organization.

educated guess

Cascading goals is the process of

ensuring that strategic goals at the top align with the short-term goals set at lower levels in the organization

What are four steps anyone can take to become a more proactive learner?

focus on solutions rather than problems participate in professional conversations set realistic goals take initiative and rely on yourself

In business, a specific commitment to achieve a measurable result within a stated period of time is called a _____.

goal

A means-end chain is used in planning to show _____.

how goals are connected across an organization

Strategic planning can help encourage new ideas by stressing the importance of ______ in achieving long-range success.

innovation

What are the two types of goals in business?

long-term short-term

Short-term (tactical) goals are connected to long-term (strategic) goals in a hierarchy called the _______.

means-end chain

A company's _____ is the purpose of the organization.

mission

A firm's business _______ should include a description of the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.

model

The document that details how a company's goals are to be met is called a(n)

plan

The purpose of ______ is to set goals and decide on the courses of action that will be used to achieve them.

planning

Critical thinkers

remain open-minded when solving problems obtain and consider a wide range of information before passing judgment consider alternative solutions to problems don't make rash decisions during planning

Strategic planning

should communicate general goals and ways to achieve them requires visionary and directional thinking

A _____ plan directs activity, such as a project, that is unlikely to be repeated.

single-use

Top managers use _______ planning to determine what the organization's long-term goals should be for the next one to five years with the resources they expect to have available.

strategic

According to management scholar Gary Hamel, companies like Apple have succeeded because their spirit of _____ has allowed them to reinvent the basis of competition within an existing industry.

strategy innovation

Organizations use ________ planning to determine what contributions the departments or work units can make toward the organization's strategic priorities and policies during the next 6 -- 24 months.

tactical

The company's mission statement tells us

the company's reason for being.

Strategic planning is done by _____ managers.

top

Operating plans (select all that apply)

turn strategic plans into actionable short-term goals break long-term output into short-term targets or goals

A company's ______ statement should provide a clear sense of the future and the actions needed to get there.

vision

Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new opportunities.

whatever is in front of them

An organization's vision represents

where the organization wants to go.