MGT 380
Match the type of objective used in MBO with its focus.
Performance objective - Express the objective as an outcome or end-result Behavioral objective - Express the objective as the behaviors needed to achieve an outcome Learning objective - Express the objective in terms of acquiring knowledge or competencies
The management team gave the IT department until October 15 to complete the software installation. Which aspect of SMART goals does this deadline demonstrate?
Target dates
Which three things should be included in a firm's business model? (Select all that apply.)
The firm's marketing strategy A description of the industry the firm is entering The firm's expected revenues and expenses
The vision statement should answer which of these questions?
What do we want to become?
Match the level of management with the type of planning for which it is typically responsible.
Top management - Strategic planning Middle management - Tactical planning First-line management - Operational planning
For goal setting to be successful, what must occur? (Check all that apply)
Top management must be highly committed Goals must be applied organization wide Goals must cascade through the organization
A mission statement addresses which question?
What is our reason for being?
What would occur in the third step of management by objectives?
You and your manager meet to review progress.
True or false: Many small business owners do not engage in strategic planning.
True
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
True or false: The prediction of a business cycle based upon historical data is an example of using trend analysis in business.
True
The second step of the strategic-management process involves assessing the organization's current reality. Which of these are tools for assessing the current reality?
VRIO analysis forecasting SWOT analysis benchmarking
One of the characteristics of SMART goals is that they are stated in specific rather than vague terms. Match each goal below to indicate whether it is vague or specific.
Vague - As many planes as possible should arrive on time. Specific - Ninety % of planes should arrive within 15 minutes of their scheduled arrival time.
The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as _____ goals.
cascading
In terms of SMART goals, an "attainable" goal is _____.
challenging but achievable
An organization's ability to produce goods or services more effectively than its competitors is referred to as its
competitive advantage.
The creation of alternative hypothetical but equally likely future conditions is known as _____ planning.
contingency
Strategic planning can help encourage new ideas by stressing the importance of ______ in achieving long-range success.
innovation
Corporate-level strategy:
involves senior executives in planning answers questions such as "what business are we in?" and "what products and services shall we offer?" focuses on the organization as a whole
To be successful, strategic planning requires a company to have a _____ orientation.
long-term
In which step of the strategic-management process does the organization monitor progress and take corrective action, such as rethinking policies, and revising budgets or personnel arrangements?
maintain strategic control
Strategic _____ is a process that involves managers from all levels of the organization in the formulation and the implementation of strategies and strategic goals.
management
In the strategic management process, the organization's strategies and strategic goals are formulated and implemented using
managers from all parts of the organization
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
The _____ statement expresses the purpose of an organization.
mission
The question "what is our reason for being?" should be answered by the organization's _______ statement.
mission
A firm's business _______ should include a description of the need the firm will fill, the operations of the firm, its components and functions, and the expected revenues and expenses.
model
Strategic control consists of
monitoring the execution of strategy and making adjustments, if necessary.
The purpose of management by objectives (MBO) is to ______ subordinates.
motivate
Management by ______ is a four-step process in which managers and employees jointly set objectives, develop action plans, review performance, and appraise and reward employees.
objectives
When considering SWOT analysis, what is an example of an organizational weakness?
obsolete technology
It is the function of the _____ to take the strategic plan and develop actionable short-term goals that a business can achieve.
operating plan
First-line managers are typically responsible for performing ______ planning within the organization.
operational
Select the three types of planning involved in the strategic management process.
operational strategic tactical
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
opportunities
After completing his competitor analysis, Justin realized his company was the only one with all-natural ingredients in their pizza crust and could use this to get the pizza into more health food grocery stores. What aspect of a SWOT analysis has Justin uncovered?
opportunity
Skate/24 had only one competitor in the local market and that competitor just went out of business. Within a SWOT analysis, this is an example of an organizational _________ for Skate/24.
opportunity
Sustainable competitive advantage exists when
other companies cannot duplicate the value that an organization delivers to customers.
An action plan
outlines the tactics that will be used to achieve a goal.
Within a SWOT analysis, an organizational threat will come from _____ the company.
outside
Which of these are types of objectives used in management by objectives (MBO)? (Select all that apply)
performance behavioral learning
A business strategy, also known as a strategic _____, sets the long-term goals and direction for an organization.
plan
Making the plan and carrying out the plan represent the two _____ steps in the planning/control cycle.
planning
Three benefits of ___________ are that they can provide a company with direction and momentum, encourage new ideas, and help the company develop a sustainable competitive advantage.
planning and strategic management
You can use the continuous feedback loop known as the _____ cycle to ensure you're headed in the right direction once you've made plans.
planning/control
A _____ plan outlines the general response to a designated problem or situation.
policy
Strategic positioning attempts to achieve sustainable competitive advantage by:
preserving what is distinctive about a company
A(n) _____ learning orientation represents the desire to learn and improve one's knowledge, soft-skills, and other characteristics in pursuit of personal development.
proactive
A _____ plan outlines responses to particular problems or circumstances.
procedure
An organization has a sustainable competitive advantage when it can, for an extended period of time,
produce goods and services more effectively than its competitors do.
Two characteristics of strategy formulation are that it is:
the basis for determining long-term goals. a time-consuming process.
The company's mission statement tells us
the company's reason for being
Functional-level strategy focuses on
the key functional departments or units within the business units.
The fourth and final step in management by objectives involves _____.
the manager making a performance appraisal and rewarding the employee according to the results
A company's values statement expresses which of the following things? (select all that apply)
the values its employees embody what its products contribute to the world the company's core priorities what the company stands for
The manager and employee periodically reviewing the employee's performance represents the _____ step in management by objectives.
third
Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis.
threat
In terms of a SWOT analysis, organizational _____ are environmental factors that hinder an organization from achieving a competitive advantage.
threats
Within a SWOT analysis, the letter "T" represents a company's _____.
threats
Which of the following verbs would be appropriate for a results-oriented goal?
Decrease Complete Acquire
Business-level strategy focuses on
individual business units or product/service lines.
What is the usual span of time for a tactical goal?
12 months
Which is the second step in the strategic-management process?
Assess the current reality.
Goals that are challenging but are realistic and achievable within the scope of the resources available to a company satisfy which aspect of SMART goal criteria?
Attainable
Select all the true statements regarding the trade-offs required in competing.
Companies must choose what strategy to follow. Some strategies are incompatible. Companies must choose what strategy not to follow.
What are the two control steps in the planning/control cycle?
Control the direction by taking corrective actions. Control the direction by comparing results with the plan.
__ involves using sound reasoning to analyze situations, make decisions, and solve problems.
Critical thinking
_____ help us to stay focused on the big picture, concentrate and make quicker decisions rather than putting them off, and ignore unimportant matters.
Deadlines
What are two advantages for a company that establishes deadlines?
Deadlines aid in making quicker decisions. Deadlines motivate employees to focus on the goal.
Value can be assessed by asking:
Does the resource or capability allow the firm to exploit an opportunity or neutralize a threat?
What is the second step in management by objectives?
Employees are encouraged to develop an action plan.
Which of the following are reasons that employers value a proactive learning orientation?
Employees need to refine and enhance their skill sets throughout their careers. It helps drive employee creativity and innovation.
Refer to Figure 6.2. Place the steps in the strategic-management process in the correct order, with the first step listed at the top.
Establish the mission, vision, and values statements Assess the current reality Formulate corporate, business, and functional strategies Execute the strategies Maintain strategic control
True or false: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strategy.
False
____-level strategy applies to the key functional departments or units within the business units.
Functional
Which two goals meet the SMART goal characteristic of specifying a target date?
Increase sales by the end of the first quarter File tax return by April 15
What is an example of an organizational weakness based on a SWOT analysis?
Inferior product quality
In terms of a VRIO analysis, organization can be assessed by asking:
Is the firm organized to exploit the resource or capability?
Imitability can be assessed by asking:
Is the resource or capability costly for other firms to imitate
Rarity can be assessed by asking:
Is the resource or capability currently controlled by only a few firms or no other firms?
What are three specific reasons why organizations should adopt planning and strategic management?
It provides direction and momentum. It helps the firm develop a sustainable competitive advantage. It encourages new ideas.
What are the two types of goals in business?
Long-term Short-term
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).
Make the plan. Carry out the plan. Control the direction by comparing results with the plan. Control the direction by correcting deviations and/or improving future plans.
What is the first step in management by objectives?
Managers and employees jointly set objectives for the employee.
Who is responsible for tactical planning?
Middle management
Which of these situations provides an external opportunity that the company may exploit to gain competitive advantage?
Monica's rare book company has weak competition.
Which of these represent measurable goals? (select all that apply)
No more than 50% of cars should be sold below MSRP. Customer service agents should improve customer relations by making 10 follow-up calls each week.
_________ planning is used to determine how to accomplish specific tasks with available resources within the next 1 -- 52 weeks.
Operational
A _____ goal is one that is specific, measurable, attainable, results-oriented, and has target dates.
SMART
When Johnson & Johnson promoted its baby shampoo as a gentle cleanser suitable for adults, it did this without changing the formulation of the product. Which type of corporate strategy does this exemplify?
Stability
In which phase of the planning/control cycle does a company have the opportunity to get a project back on track if it is failing to meet assigned objectives?
Step 4 - Control the direction by taking corrective action
In which step of the strategic-management process does an organization establish the mission and vision statements?
Step One
Match the type of planning with the time frame to which it applies.
Strategic planning - 1 year to 5 years Tactical planning - 6 months to 24 months Operational planning - 1 week to 52 weeks
Which of the following are true of long-term goals? (Select all that apply.)
They span one to five years. They are also referred to as strategic goals. They focus on achieving the strategies identified in the company's strategic plan.
Match the criteria for successful goal setting with their correct descriptions.
Top and middle management must be committed matches - Average gains in productivity are significantly higher when there is buy-in to the goal setting process from upper levels of management Goals must be applied organization-wide - The goal setting program cannot be applied in only some divisions or departments; it must be put in place throughout the whole company Goals must cascade - The strategic goals set at the top must align downward with more specific, short-term goals set at lower organizational levels
A forecast is defined as
a vision or projection of the future.
A(n) ______ plan defines the course of action a company should follow to achieve the stated goal.
action
Short-term goals (select all that apply)
are connected to strategic goals are also known as tactical goals are also known as operational goals
The second step of the strategic management process involves
assessing the current reality
The process by which a company compares its performance with that of other high-performing organizations is known as _______.
benchmarking
The three sources from which strategic position emerges are having:
broad needs and many customers broad needs and few customers few needs and many customers
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
The _____ strategy of a company is concerned with the individual business units or production and service lines of the business.
business-level
Which level of strategic management focuses on the organization as a whole?
corporate-level
Critical thinkers
don't make rash decisions during planning consider alternative solutions to problems obtain and consider a wide range of information before passing judgment remain open-minded when solving problems
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 the lower levels in the organization.
Managers and subordinates jointly setting subordinate objectives is the _____ step in management by objectives.
first
According to Michael Porter, the _____ of a company's strategy refers to the way a company's activities interact and reinforce one another.
fit
What are four steps anyone can take to become a more proactive learner?
focus on solutions rather than problems set realistic goals participate in professional conversations take initiative and rely on yourself
A _____ is a vision or projection of the future that is made following a SWOT analysis.
forecast
Strategy _______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
formulation
Managers and subordinates meeting to appraise performance, discuss results, and allocate rewards is the _____ step in management by objectives.
fourth
In business, a specific commitment to achieve a measurable result within a stated period of time is called a _____.
goal
SMART goals:
have target dates are measurable are attainable are results-oriented are specific
A means-end chain is used in planning to show _____.
how goals are connected across an organization
One question within a VRIO analysis is, "Is the resource or capability costly for other companies to produce in the same manner?" Which aspect of the VRIO analysis does this represent?
imitability
The "measurable" aspect of a SMART goal refers to its ability to be _____.
quantified
When conducting a VRIO analysis, one question that must be answered is, "Is the resource or capability currently controlled by only a few firms or no other firms? This would determine the _____ associated with the resource.
rarity
What four characteristics are being addressed in a VRIO analysis?
rarity value organization imitability
Michael Porter promoted the idea that a company's strategy must also create a "fit" with the ways a company's activities _____ one another towards a common goal.
reinforce
When stating a goal, it is a good idea to start with the word "To" and follow with an action-oriented verb such as "increase" or "acquire." This describes the _____ aspect of SMART goals.
results-oriented
Employees preparing action plans represents the _____ step in management by objectives.
second
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
The letter S in the acronym SMART goal stands for what aspect of a good goal?
specific
A _____ plan is developed for activities that occur repeatedly over time.
standing
The first step in the strategic-management process is to establish the mission, vision, and values statements. The firm's vision statement:
states what the organization wants to become and where it wants to go strategically
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
A(n) ________ provides a guide for a company's long-term goals.
strategic plan
Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which _____ emerges.
strategic position
Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
strategic positioning
Putting strategic plans into effect is referred to as _____.
strategy implementation
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
The BMW car company has a superior reputation within the industry and among car buyers for its product quality. When applying SWOT analysis, the company's product quality is an example of a(n) _____.
strength
Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.
strengths
The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______.
strengths
Within a SWOT analysis, the letter "S" represents a company's _____.
strengths
When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) _____ competitive advantage.
sustainable
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
What behavior would a proactive learner most likely exhibit?
taking initiative
Sasha has run a small diner near the train station for the past ten years. Six months ago, a chain restaurant serving gourmet burgers and sandwiches opened up near him and he has had to re-think his menu. He added some specialty sandwiches and free fries with every burger in order to retain his customers. Which of Porter's five competitive forces has affected Sasha's business?
threats of new entrants
Strategic planning is done by _____ managers.
top
What three groups should be involved in the strategic management process?
top managers middle managers first-line managers
Which of the following are accurate regarding Step 4 (Execute the Strategy) in the strategic-management process?
top managers must check on possible roadblocks and see if it will be possible to execute the plans this step poses the greatest challenge for managers
Operating plans:
turn strategic plans into actionable short-term goals. break long-term output into short-term targets or goals.
When you ask "does this resource or capability allow our firm to exploit an opportunity or neutralize a threat?" you are assessing the resource or capability's _________.
value
A _____ statement expresses what the company stands for, its core priorities and what its products contribute to the world.
values
Which strategy is a company pursuing when it expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products?
vertical integration
A company's _____ statement should provide a clear sense of the future and the actions needed to get there.
vision
Peterson Electric Inc. has outdated manufacturing facilities. Within a SWOT analysis, this would be an example of an organizational ______ of the company.
weakness
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
When would a company use a VRIO analysis?
when deciding whether or not a new product might work in the marketplace
An organization's vision represents
where the organization wants to go.
