BAS 283 Chp 5

A business plan is a tool used by the federal government to determine how to strengthen the business sector through macroeconomics and microeconomics.

False A business plan is a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times.

False In the planning/control cycle, managers take corrective action by correcting deviations in the plan being carried out or by improving future plans (see Figure 5.5).

There is little proof that writing out goals helps an individual feel more confident and energetic when entering a new group.

False Research suggests that writing about two paragraphs outlining your goals will help you feel more confident and energetic when entering a new group.

________ is setting goals and deciding how to achieve them.

Planning

Frank, the fire chief, told his employees to "Think big and endeavor to be more detailed and caring while at work and in setting goals. Therefore, when you give me your goals, I want them to be specific, measurable, attainable, results-oriented, and have target dates." Frank was asking for his workers'

SMART goals.

Alexia, a district manager for a retail hardware store, asked her store managers for their store goals next year. Denise, one of the store managers, said, "I am going to increase my market share significantly next year by visiting businesses." Alexia then responded to Denise with "Precisely how much are you going to increase your market share and by what date?" Alexia is asking Denise to formulate a SMART goal.

True A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates.

A goal is a specific commitment to achieve a measurable result within a stated period of time.

True A goal, also known as an objective, is a specific commitment to achieve a measurable result within a stated period of time.

Prior to opening his business, Sal, the owner of The Italian Kitchen, is writing a document that explains the reason for his business. This statement would be a part of his mission statement.

True An organization's reason for being is expressed in a mission statement.

To start work every day, David sits down and sets his goals for the day and then he decides how to achieve them, formulating future courses of action to achieve the specified results. This is the definition of planning.

True Planning is defined as setting goals and deciding how to achieve them. Another definition is that planning is coping with uncertainty by formulating future courses of action to achieve specified results.

Neal, a middle manager for a large restaurant chain, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal.

True Strategic goals are set by and for top management and focus on objectives for the organization as a whole.

Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization.

True Strategic management is a process that involves managers from all parts of the organization—top managers, middle managers, and first-line managers—in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization.

In the office of every general manager of Relaxing Hotel there is a small poster that reads, "We want to become the only place our customers want to stay for the night while traveling." This is the vision statement for Relaxing Hotels.

True Vision statements answer the question, "What do we want to become?" or "Where do we want to go?"

A goal is

a specific commitment to achieve a measurable result within a stated period of time.

Mr. Jones, the department manager, told his employees that he wanted them to write down their work goals for the year. To help his workers achieve their stated goals, the next thing that he should ask for are each worker's

action plan.

Quality Vacuum has been manufacturing excellent vacuum cleaners for over 50 years. In the employee break room is a banner that reads, "We will always provide the highest-quality vacuums at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders." This statement is Quality Vacuum's

mission statement.

Donna is the service desk coordinator in a department store, and she has set a goal this month of finishing her daily office work quicker so she can assist at the Service Desk earlier in the morning. She knows this will also help decrease theft, which will assist the company in achieving its goal of decreasing costs. Donna's goal of finishing her office work quicker is a(n)

operational goal.

A(n) ________ is a standing plan that outlines the general response to a designated problem or situation.

policy

An organization should adopt planning and strategic management to

provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage.

A music teacher asked her students to set a really hard goal, such as increasing their practice time by 10 hours per week, which would cause her students to reach beyond what they think is possible. This is known as a(n)

stretch goal.

A(n) ________ is the declaration that expresses what the organization should become and where it wants to go strategically.

vision statement