Chapter 5 - SB

What are typical strategic goals? (Choose every correct answer.) Multiple select question. Reducing human resource requirements Improving profitability Increasing market share Enhancing customer service Boosting return on investment

Improving profitability Increasing market share Enhancing customer service Boosting return on investment

Which statement is true about aligning tactical, operational, and strategic plans?

The plans must be consistent and mutually supportive.

In Step 2, the process of generating several alternative goals, managers and other decision makers are encouraged to be ______.

creative

The _____ describes the organization as it currently operates, whereas the strategic vision points to the future.

mission statement

In the selection step of the planning process, managers will select the plan that they believe to be ______.

the most feasible

What is an example of a process considered by operational planning?

Production runs

Which is NOT an example of intangible resources?

Real estate

What are inputs to a system that can enhance performance?

Resources

Which process has six steps, the first of which is the creation of a mission, vision, and goals?

Strategic management

Strategic goals are the major targets related to the long-term ______ of the organization. (Choose every correct answer.) Multiple select question. survival growth value employees

survival growth value

In Step 6, managers need to develop control systems to: (Choose every correct answer.) Multiple select question. analyze the situation take corrective action when necessary set performance standards measure performance

take corrective action when necessary measure performance

The two types of resources are ______ resources that are things you can touch, such as buildings or machinery, and ______ resources that are things you cannot touch, such as reputation or knowledge.

tangible; intangible

Stakeholders are groups and individuals who impact and are impacted by ______.

the achievement of the organization's mission

In companies such as McDonald's, whose mission and vision statements have successfully guided change, the support of ______ was essential to strategy implementation.

top management

A strategic plan involves management at the ______ level creating a plan with a _____ level of detail.

top; low

The strategic ______ points to the future by providing a perspective on where the organization is headed and what it can become.

vision

Which is NOT a tangible asset?

A brand image

Which is the best description of strategy in business planning?

A pattern of actions and resource allocations designed to achieve goals.

Which are components of the internal resource analysis? (Choose every correct answer.) Multiple select question. HR assessment Financial analysis Marketing audit Competitor analysis

HR assessment Financial analysis Marketing audit

When the resources of a firm create value for the customer, are rare, are difficult to imitate, and are well organized, they become a source of ______.

competitive advantage

A(n) ______ plan is an alternative plan that can be implemented when circumstances change, and the original plan is no longer effective.

contingency

When creating scenarios of possible future states, it is helpful to have ______ plans associated with each scenario.

contingency

In Step 6, managers need to develop ______ systems to measure performance and take corrective action when the situation changes.

control

The sixth step of the formal planning process is to monitor and ________.

control

One of the outcomes of environmental analysis is to predict future trends, also known as ______.

forecasting

In terms of the planning process, the targets or ends that managers want to reach are known as ___________.

goals

As noted in Step 5 of the planning process, proper ______ is the key to achieving goals.

implementation

In general, managers in the selection step of the planning process will select the plan that __.

is the most appropriate and feasible

Zappos.com offers customer service that is practically unheard of in business. Customer service representatives are allowed to take whatever measures they feel are appropriate to make sure their customers are happy. This feature gives Zappos a competitive advantage because ______.

it is difficult to imitate

A strategic plan differs from an operational plan in which a strategic plan requires a _______ level of detail while an operational plan requires a ________ level of detail.

low; high

A tactical level plan requires a moderate amount of detail and involves the ______ level of management.

middle

When an employee is involved in the development of a goal or plan, the employee is usually: (Choose every correct answer.) Multiple select question. more motivated more controlled better informed more committed

more motivated better informed more committed

The primary difference between tactical and operational plans is that tactical plans have a time horizon of ______ while operational plans only cover a few months.

one to two years

The process of making decisions about goals and activities that an organization will pursue in the future is referred to as __________.

planning

Generally, it is important for goal achievement to be linked to the organization's ______ to encourage employees to work hard to attain the plan's goals.

reward system

In the ______ stage, planners assemble and study all information relevant to the planning issue in question.

situational analysis

Buyers, suppliers, competitors, government, and regulatory agencies are all ______.

stakeholders

What is the fourth step of the formal planning process?

Goal and plan selection

In the planning process, what term describes the targets that managers want to achieve?

Goals

Which action takes place during Step 3 of the planning process?

Goals and plans are evaluated.

To whom should businesses communicate their mission, vision, and goals statements?

All stakeholders

What is the second step in the strategic management process?

Analysis of the external environment

Place the steps of the planning process in the correct order:

Analyze the situation Generate alternative goals and plans Evaluate goals and plans Select goals and plans Implement goals and plans Monitor and control performance

What is Step 1 of the basic planning process?

Analyzing the situation

Which elements are part of an environmental analysis? (Choose every correct answer.) Multiple select question. Competitor analysis Labor issues Internal weaknesses Legal trends Industry journals

Competitor analysis Labor issues Legal trends

What is a characteristic of the situational analysis?

Consistent with the open-system approach

Which are examples of intangible assets? (Choose every correct answer.) Multiple select question. Computer equipment Corporate reputation correct Technological knowledge correct Corporate culture correct Corporate headquarters building Raw materials

Corporate reputation Technological knowledge Corporate culture

______ occurs when the customer gains an increase in benefit from a good or service relative to its cost.

Customer value

Which term best describes the planning process?

Cyclical

Which factors are part of an environmental analysis? Multiple select question. Economic conditions Stakeholder influence Technological factors Company rulemaking

Economic conditions Stakeholder influence Technological factors

Which are necessary conditions for successful implementation of a plan? (Choose every correct answer.) Multiple select question. Employees must be motivated to perform the plan. Employees must understand the plan. Employees must have the proper resources. Employees must be engaged in goal displacement.

Employees must be motivated to perform the plan. Employees must understand the plan. Employees must have the proper resources.

Implementation of the plan comes after which step in the planning process?

Goal and plan selection

Which tasks are typically conducted by managers in the goal and plan evaluation step of the formal planning process? (Choose every correct answer.) Multiple select question. Create a schedule for plan implementation. Estimate the costs of each plan. Evaluate advantages of each goal and plan. Select the best goal and plan. Prioritize and, if necessary, eliminate goals.

Estimate the costs of each plan. Evaluate advantages of each goal and plan. Prioritize and, if necessary, eliminate goals.

What is a typical task in Step 3 of the planning process (goal and plan evaluation)?

Estimating the return on investment for each plan.

Which management levels are involved in planning?

Every level

With whom should mission, vision, and goals statements be shared?

Everyone who comes in contact with the organization.

True or False A strategic vision helps a company understand its past so it can succeed in the present.

False

True or False The two types of resources are tangible and quantifiable.

False

Which step in the strategic management process involves creating a mission, vision, and goals?

First

The goal and plan selection step of the formal planning process comes after which action?

Goal and plan evaluation

Which elements are included in an environmental analysis? (Choose every correct answer.) Multiple select question. Industry forces Internal strengths Technological factors Industry growth Social issues

Industry forces Technological factors Industry growth Social issues

Which analysis is made up of components such as a financial analyses and marketing audits?

Internal resouce

What does it mean for an organization to be "mission driven"? (Choose every correct answer.) Multiple select question. It gives employees a "reason to believe." It is religion-based. It works only for its own profits. It is focused on a greater purpose.

It gives employees a "reason to believe." It is focused on a greater purpose.

Merriwether Farms supplies ferns to Flowers Unlimited, Incorporated. In this example, how is Merriwether Farms related to Flowers Unlimited?

It is a stakeholder

What are characteristics of the situational analysis? (Choose every correct answer.) Multiple select question. It is consistent with the open-system approach. It looks at influences from the external environment. It relies on the closed-system approach. It studies internal forces within an organization.

It is consistent with the open-system approach. It looks at influences from the external environment. It studies internal forces within an organization.

Which statement best explains what takes place during the process of setting a strategy?

Managers try to match the organization's skills and resources to opportunities in the external environment.

What term describes a clear and concise expression of the basic purpose of an organization?

Mission

What drives the analysis of the external environment (opportunities and threats)?

Mission and vision

Which type of planning identifies the procedures and processes, such as delivery schedules, that are required from the lower levels of the organization?

Operational

The monitor and control step of the planning process comes after which step?

Plan implementation

What term describes the conscious, systematic process of making decisions about goals and activities that an individual, group, or organization will pursue in the future?

Planning

Cosmetics company Skinnit offers a unique eye cream formula that is touted by the industry as the best. Consumers are willing to pay a lot of money for the eye cream, and many consider the cream's benefits to be superior to all other eye creams. What is the term for the resource Skinnit is offering?

Rare

Which are examples of tangible assets? (Choose every correct answer.) Multiple select question. A corporation's reputation Patents Real estate A manufacturing plant Raw materials

Real estate A manufacturing plant Raw materials

_____ are inputs to production that can be accumulated over time to enhance the performance of a firm.

Resources

Who has been responsible for the development and execution of the strategic plan in the past?

Senior executives

A city planner preparing for an upcoming bicentennial celebration would likely use which of the following type of plan?

Single-use plan

Which type of plans are designed to achieve a set of goals that are not likely to be repeated in the future?

Single-use plans

What term describes a member of a group that affects or is affected by the achievement of the organization's mission, goals, and strategies?

Stakeholder

What type of goals typically include fostering quantity and quality of outputs and/or improving profitability?

Strategic

What type of plan involves making decisions about the organization's long-term goals and how they intend to achieve the goals?

Strategic

Which type of planning has traditionally been the responsibility of senior executives in an organization?

Strategic

Place the levels of management in order from highest to lowest:

Strategic Tactical Operational Team leaders

What flows from the mission and vision of the organization?

Strategic goals

What term is used to describe the major targets or end results that relate to the long-term survival, value, and growth of an organization?

Strategic goals

What process involves managers from all parts of the organization in the formulation and implementation of strategic goals?

Strategic management

What is the name given to the long-term direction and strategic intent of a company?

Strategic vision

Which are steps in the strategic management process? (Choose every correct answer.) Multiple select question. Stakeholder analysis Strategy implementation Strategic control Stockholder reporting SWOT analysis

Strategy implementation Strategic control SWOT analysis

What is most essential for mission and vision statements to actually guide the behavior of organizational employees?

Strong leadership support

The type of plan that translates broad strategic goals into specific goals that are relevant to a particular organizational function is known as a(n) ______ plan.

Tactical

Which type of planning translates broad strategic goals and plans into specific goals and plans relevant to particular organizational units?

Tactical

Which type of plans typically cover a time horizon of a year or two?

Tactical

Kandy's Koffee is engaging in the strategic management process. The company is deciding whether or not to make its mission to provide the most environmentally friendly and locally sourced coffee at the best price to customers. Which step of the strategic management process is Kandy's Koffee working on?

The final

Which step of the formal planning process involves evaluating goals and plans?

Third

Which managers are typically responsible for the development and execution of strategic plans?

Top-level managers

True or False Strategic goals evolve from the mission and vision of the organization.

True

To be effective, an organization's strategic, tactical, and operational plans must be ______.

aligned

Strategic management involves managers from ______ of the organization in the formulation and implementation of strategic goals and strategies.

all levels

The second step of the planning process should generate ______ goals and plans for the future.

alternative

In order for a plan to be implemented successfully, managers and employees must understand the plan, ______, and have the resources to implement it.

be motivated to carry out the plan

For a plan to be successfully implemented, the organization has to link the plan to a ________ to ensure adequate financial resources.

budget