MGMT Exam 2 - 2nd
Strategy formulation focuses on how the strategy is achieved, while strategy implementation focuses on what the strategy is T/F
False
T/F strategy formulation focuses on how the strategy is achieved, while strategy implementation focuses on what the strategy is
False
T/F most managers agree that a formal goal setting program must begin from the top of the organization if it is to be effective
True
Tactical plans are to battle what strategy is to a war
an organized sequence of steps designed to execute strategic plans.
Decision-Making Conditions
certainty, risk, uncertainty
Even while establishing the organization's basic goals and plans is crucial, the core of formal goal setting is
collaborative goal setting and planning
when conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify
company strengths and weaknesses
Most managers agree that a formal goal-setting program must begin from the top of the organization if it is to be
effective
Planning starts with understanding the
environment.
when harry addresses decisions about where products and services are created, stored, and distributed, he is addressing the _______ aspect of operations systems design
facilities
Failure to anticipate the decline stage in the earlier life cycle stages will result in
firms going out of business.
When discussing strategic goals "intermediate term" is sometimes defined as
five to ten years,
interacting groups and teams
form of group and team decisions making where a designated group makes a decision after the different members interact
nominal groups
form of group and team decisions making where a group of ecperts generate alternatives, state them in turn, and vote on rank-order
delphi groups
form of group and team decisions making where a group of experts give opinions individually which are then combined or averaged
The SWOT analysis is to
formulate strategies that support the mission
A company's mission statement outlines its
fundamental purpose and distinguishes itself from other businesses.
cash cows
generating high profits and needing little investment on the BCG matrix
When executing tactical plans evaluate each course of action in light of its
goal
When executing tactical plans monitor ongoing activities for
goal achievement
BCG Matrix is used for evaluating businesses through their
growth rate in the market and relative market share
question mark
having a small share of a rapidly growing market on the BCG matrix
Dogs
having a small share of a shrinking market on the BCG matrix
At the introduction stage, the demand for the product may be
high and even sometimes outpace the firm's ability to supply it.
Finished goods
high-level production scheduling systems in conjunction with marketing
When executing tactical plans monitor
horizontal and vertical communication and integration of activities
Goals should be consistent across the organization
horizontally, from one department to the next.
The product Life Cycle is a model that shows
how sales volume changes over the life of products.
When developing tactical plans recognize and identify
human resource commitments
(3) steps in the decision making process?
identifying alternative courses of action, developing a plan to put the decision into effect, choosing the alternative that is likely to be the most effective
The major barrier managers face in goal setting and planning are
inappropriate behavior, improper reward system, dynamic complex environment, reluctance to establish goals, resistance to change and constraints
Manager's focus during the introduction stage must be to
increase production without sacrificing the product's quality.
When executing tactical plans obtain and distribute
information and resources
determining the _____________ mix is a place to start naturally when designing operations systems
managers have to decide how many and what kinds to offer: product-service
organizations set a wide variety of goals, and occasionally these goals conflict with one another or contradict one another. what should managers do in such situations?
managers should optimize, which means balancing and reconciling possible conflicts among goals
Other strategies for managing growth in the introduction stage include
managing inventory and cash flow as well as hiring new employees.
Robotics powered by computers is another development in
manufacturing technology.
Good strategies are those that support the
mission
When developing tactical plans you must recognize and understand
overarching strategic plans and tactical goals
SWOT stands for
strengths, weaknesses, opportunities, and threats
the goals that are directly based on the strategic goals and plans are the _________
tactical goals
managers make decisions under different types of conditions, what describes a state of risk?
the manager understands the availability of each alternative and the probability that each will have the desired outcome
the four basic levels of goals
the mission as well as strategic, tactical, and operational goals
which of the following describes operational goals?
these goals are set by lower-level managers, are specific in scope, and have short time frames
what are common disadvantages of group or team decision making? (3)
to avoid conflict group members pretend to agree with each other, decision making takes more time, dominant group members exercise more influence than they should
what are reasons that organizations set goals?
to give people in the organization a unifying direction, to prompt managers to make adjustments to improve performance, to aid in measuring results
Strategy formulation focuses on
what the strategy is
Growth
which stage of product life cycle, sales of a product or service grow, but competitors begin to enter the market.
Introduction
which stage of product life cycle: managers hire more employees and manage inventory and cash flow as demand increases
Goals have four main purposes
direction, planning, motivation, evaluation and control
T/F a well-conceived strategy has three components
distinctive competence, scope, and resource deployment: True
The BCG matrix also prescribes the preferred
distribution of cash and other resources among these businesses
etrade facilitates stock transactions for its customers, because etrade is a service organization, its operations process transforms resources into
intangible outputs
BCG matrix is considered
relatively narrow and overly simplistic
When developing tactical plans specify
relevant resource and time issues
how much a decision maker is willing to gamble or take a chance
risk propensity
Any artificial technology that is capable of doing tasks typically considered to be suitable for humans is referred to as a
robot.
Contingency planning
determines alternate courses of action to be performed if an anticipated course of action is suddenly disrupted or deemed inappropriate
Strategy formulation is the set of processes involved in
developing the organization's strategies
Third
"consider each alternative in terms of how feasible and satisfactory it is and what its likely consequences will be" is the ______ step of the decision making process
First
"define the decision that needs to be made" is the ________ step in the decision making process
Sixth
"determine whether the decision was correct and well executed" is the ______ step in the decision making process
Second
"identify some alternatives" is the ________ step of the decision making process
Fifth
"make an operational plan to put the decision into effect" is the ______ step of the decision making process
Fourth
"select the most effective alternative" is the ________ step of the decision making process
When discussing strategic goals, "long term" is sometimes defined as
10 years or more,
If the company has decided to use Miles and Snow's prospector strategy, which of the following actions would best support this strategy?
Adopt a flat, decentralized organization design
"At Apple, managers ask, 'Should our next iPad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an iPad?'" is a _______ level strategy
Business
"Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers" is a ________ level strategy
Business
SWOT analysis identifies two categories of organizational strengths
Common Strength and Distinctive Competencies.
"Never previously known as a computer hardware company, Microsoft decides to enter the tablet manufacturing business, producing the Microsoft Surface" is a ________ level strategy
Corporate
"The manufacturer of Chobani Yogurt decided to open a flagship store in Soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing yogurt for 7 years, the company never tried to run a restaurant before" is a _______ level strategy
Corporate
understanding the organization's tactical goals leads to _________ the plan
Developing
In 2020, FB announced plans to introduce a mobile gaming app designed for live gameplay; the app took several years to develop and was tested with users for 18 months before its release. the decision FB made to develop a mobile gaming app is a _______ decision
Nonprogrammed
your company typically increases each department's budget by a certain percentage over the prior year's budget; however, this year managers were asked to consider whether each budget item is still necessary and whether new budget items are needed to meet the department's needs. as a result, this year's budget process is a __________ decision
Nonprogrammed
_________ goals are set for and by lower-level management
Operational
you are the CEO of a large scanner manufacturer. you just caught a department manager embezzling money from your company; the decision you make about whether to fire the department manager is a ________ decision
Programmed
the four basic kinds of inventories are
Raw materials, work-in-process, finished-goods, and in-transit inventories
if an organization uses an artificial device to perform functions customarily performed by humans, the organization is using a
Robot
The starting point in formulating strategy is usually with
SWOT analysis
Mikaela started attending a Zumba class on Tuesday and Thursday afternoons and found that it gave her a good workout, so that has been her exercise routine every since. The __________ involved in this decision-making process ensures Mikaela exercises on a regular schedule
Satisficing
________ goals are set by and for top management
Strategic
the goals that are determined directly from the mission are the _______ goals
Strategic
__________ goals are set by and for middle management
Tactical
set by middle managers, focused on how to achieve broad goals and have medium time frames
Tactical
every morning when you walk into starbucks, you order the same thing
a venti green tea frappuccino with extra whipped cream; you can't drink anything else at starbucks because you don't like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. your decision about what to order at starbucks today is a __________ decision: Programmed
What are some reasons that organizations set goals? (3)
aid in measuring results, prompt managers to make adjustments to improve performance, give people in the organization a unifying direction
decline
at which stage of the product life cycle, managers look to increase the company's market share or raise prices, because otherwise revenue will fall.
a manager is asked to optimize a set of goals. What is the manager being asked to do?
balance and reconcile competing goals
a manager is asked to optimize a set of goals; what is the manager being asked to do?
balance and reconcile competing goals
businesses commonly rely upon groups to make decisions because of the many advantages to group decision making, what are some advantages of group decision making? (2)
better decisions usually result, acceptance of the final decision is more likely
The corporate mission and strategy are established by the
board of directors.
The maturity stage is
crucial for the survival of the firm.
what is most accurate about decision making under risk?
decision making under risk is when the decision maker knows the alternatives and their associated risk probability estimates
At the maturity stage, there is less demand for the product and a
decline in the number of new firms producing the product; there is also a decline in the number of established firms producing the product.
At the declining stage, there is a
decrease in the demand and total sales for the product or technology as well as a reduction in the number of firms producing the product.
Strategy formulation and implementation can be
deliberate or emergent
as a member of a team of subject matter experts in the management of engineering projects, you need to organize discussions in a way that facilitates participation by all the experts. Which team decision-making approach will be best in ensuring input from the team experts?
delphi group technique
SWOT enables an organization to evaluate its
internal strengths and weaknesses, and identify the opportunities and threats in its environment.
Effective operations management requires controlling
inventories, often known as materials control.
which of the following best describes the administrative model of decision making?
it assumes that managers use incomplete and imperfect information
what describes the classical model of decision making?
it assumes the managers are rational, and it assumes that managers act in the best interests of the organization
A task force of this nature frequently consists of
line managers with a special interest in the pertinent planning topic.
strategic plans typically have a
long-term focus
advantages of group and team decision making (3)
more information and knowledge are available in the process, the final decision will generally be better accepted, the resulting decision is often better communicated
When discussing strategic goals "short term" is sometimes defined as
one year or less.
The quality of products and services can be increased through improved processes. During the actual transformation process, methods are the
operating systems that the company uses.
Operational Plans focus on executing tactical plans in order to meet
operational goals
The competitiveness, quality, productivity, and effectiveness of an organization are directly impacted by
operations management.
Within the SWOT Analysis, External Analysis are made up of
opportunities and threats
when referring to a SWOT analysis, the letter O stands for _________ , and it refers to factors that are ________ to the organization
opportunities; external
Organizational strategy and operations management influence one another in
opposite ways.
what term is used to refer to the reconciliation of competing goals?
optimizing
Contingency planning is another important type of
planning
Goal-setting practices strongly affect other aspects of
planning
Formal goal-setting is typically used to involve subordinates in
planning and goal-setting processes and to make clear to them what they are expected to accomplish in a specific time frame
Formal goal setting frequently involves
planning and setting goals for specific managers, their units, or work groups.
Strategic planning
planning at the highest level of management e.g. CEOs CFOs
Four functions of management
planning, organizing, leading and controlling
An organization may appoint a task force for planning to assist in the creation of
plans.
A state of certainty exists when the decision maker knows the
possible alternative choices and the conditions associated with each. Rarely, if ever, will a decision be made in a state of true certainty.
A company's mission statement also defines the
scope of the business's operations in terms of products and markets.
an organization that transforms resources into an intangible output that is available when and where customers want it is a
service organization
_______ goals
set by top management, broad in scope, and have a long time frame: Strategic
Work in process
shop floor control systems
set by top management, broad in scope, and have a long time frame
strategic
Managers must understand that tactical planning must take into account tactical goals that are derived from a broader
strategic goal.
tactical plans are directly based on the _____________ (2)
strategic plans and tactical goals
At the growth stage, it is crucial to implement
strategies to slow the entry of competitors into the market so the firm can maintain competitive advantage.
In transit pipeline
transportation and distribution control systems
There are many different types of inappropriate goals, like
unattainable goals, and too much focus on success metrics that are either quantitative or qualitative.
Depending on the sort of goods or services provided by the company, operations management creates
value and utility of one type or another
Strategic, tactical, and operational goals must all be consistent with one another in order for an organization to be considered
vertically consistent.
service organizations transform resources into outputs just as manufacturing does; as manager of a beauty salon, you have to decide how many clients can be seen by each stylist in a given day. what kind of decision is this?
capacity decision
Stars
deserving of large investment to support continued growth on the BCG matrix
operations management are helpful and important to managers because (3)
good operations ensure competitiveness and overall organizational performance, operations management can create value and utility of one type or another, operations management enhance quality and productivity
barriers to goal setting and planning
inappropriate goals, improper reward system, dynamic and complex environment, reluctance to establish goals, resistance to change, and constraints are all
the organization's mission include
premises, values, directions, purpose
At growth stage more firms begin
producing the product, and sales continue to grow
In the maturity stage strategies to be adopted include
product differentiation, maintaining low costs, and identifying new products and services that the firm can produce.
Raw materials
purchasing models and systems
sam owns a small cafe that faces competition from a new restaurant across the street. Sam may want to perform a SWOT analysis, or a systematic evaluation of the internal and external environments, to inform his ___________
strategy formulation
what are managers focusing on when they determine the organization's strategy?
strategy formulation:
Within the SWOT Analysis, Internal Analysis are made of
strengths, which are distinctive competencies, and weaknesses
Tactical plans are created to carry out some aspects of a strategic plan and are aimed at accomplishing
tactical goals.
operational plans are directly based on the ____________ (2)
tactical plans and operational goals
when designing facilities, decisions must be made about their ________ , which concerns their physical positioning or geographic site.
location
Strategies to survive the decline stage include
maintaining low costs, differentiating products, and identifying new products or services.
Management by objectives (MBO) is a formal goal-setting process involving collaboration between
managers and subordinates; the extent to which goals are accomplished is a major factor in evaluating and rewarding subordinates' performance
Valerie has been asked to analyze the introduction, growth, maturity, and decline stages projected for a new product at her company. By doing so, she is analyzing the _________
product life cycle
The CEO is in charge of
putting the strategy into action and plays a significant part in the whole planning process.
During the growth stage managers must guarantee their products
quality and delivery and identify differences between their product and that of their competitors.
Operations management enhance
quality and productivity
The JIT system lowers the organization's investment in
raw material storage space and in the materials themselves. It was first made popular by the Japanese.
