Chapter 5

sustainable competitive advantage occurs when an organization is able to get and stay ahead in four areas

(1) in being responsive to customers (2) in innovating (3) in quality and (4) in effectiveness

Strategic planning time period

1 year to 5 years

Operational planning time period

1-52 weeks

Sustainable competitive advantage occurs when an organization is able to get ahead and stay ahead of its competitors in which of the following areas

1. Effectiveness 2. Quality 3. Innovation 4. Customer responsiveness

Which of the three following would be included in a firm's business model?

1. a description of the industry the firm is entering 2. the firm's expected revenues and expenses 3. How the firm will market to customers

an organization should adopt planning and strategic management for three reasons

1. provide direction and momentum 2. encourage new ideas 3. develop a sustainable competitive advantage

Tactical planning time period

6 months to 24 months

a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success is known as a __________

Business plan

Corey is creating a business to sell neckties. As part of his planning, he wants to set up a business model. The business model should _________

Describe the basic operations of the business

Three types of objectives in MBO

Improvement objects Personal development objectives Maintenance objectives

During his review process, Ron's manager gave him a list of goals he wanted him to achieve over the next six months. Ron was surprised to see some of the goals because his manager had never even discussed them with him. Which part of MBO did Ron fail to receive?

Jointly set objectives

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

The purpose of MBO is to ______ rather than control subordinates.

Motivate

After he was told that the company expected a 12% sales increase by next year, the warehouse foreman had to plan for an increase in the amount of product on the warehouse floor and additional worker hours to support the increase in production. This is an example of __________ planning

Operational

planning/control cycle

Planning steps -make the plan -carry out the plan Control cycle -Control the direction by comparing results with the plan -control the direction by taking corrective action in two ways-namely (a) by correcting deviations in the plan being carried out or (b) by improving future plans

SMART goals

Specific, Measurable, Attainable, results-oriented, and target dates

Which type of planning determines what an organization's long-term goals should be for the next 1-5 years with the resources it expects to have available

Strategic

Which of the following positions would typically determine the mission statement

Top management

As a company undertakes strategic management, which three groups should be involved?

Top managers, middle managers, first-line managers

The vision statement answers which one of the following questions?

What do we want to become?

A mission statement addresses which of the following questions?

What is our reason for being?

business plan

a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success

Management by objectives (MBO)

a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results

Strategy

a large-scale action plan that sets the direction for an organization

Goal (AKA Objective):

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

Rule

a standing plan that designates specific required action

policy

a standing plan that outlines the general response to a designated problem or situation

procedure (or standard operating procedure)

a standing plan that outlines the response to particular problems or circumstances

operational goals

are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals

Example of personal development

attend time management training

means-end chain

because in the chain of management (operational, tactical, strategic) the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends

Planning process

begins with two attributes, mission statement and visual statement

In terms of SMART goals, an "attainable" goal is _________

challenging but achievable

Example of Maintenance objective

continue current production rates on custom-printed jobs

Example of improvement objective

decrease scrap materials by 10% within the next quarter

action plan

defines the course of action needed to achieve the stated goal

operating plan

designed for a 1-year period defines how you conduct your business based on the action plan identifies clear targets such as revenue, cash flow, and market share

Strategic planning

determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available

mission statement

expresses the purpose of the organization

Strategic Management

is a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

program

is a single-use plan encompassing a range of projects or activities

project

is a single-use plan of less scope and complexity than a program

vision

long-term goal describing "what" an organization wants to become. It is a clear sense of the future and the actions needed to get there

in the MBO process, cascading goals are structured from top to bottom management so that they become more specific at _________ levels of the organization

lower

_____________ is a four-step process in which managers and employees jointly set objectives, develop action plans, review performance, and appraise and reward employees

management by objectives

The "quantifiable" aspect of a SMART goal refers to its ability to be

measured

Tactical planning is performed by __________ management, who determines what contributions their department or work units can make toward the organization's strategic priorities during the next 6-24 months

middle management

operational planning by first-line management

middle managers then pass these plans along to first-line managers to do operational planning- that is, they determine how to accomplish specific tasks with available resources within the next 1-52 weeks

first-line management

operational planning

Business model

outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses

________ helps an organization prepare for situations that might occur

planning

single-use plans

plans developed for activities that are not likely to be repeated in the future

standing plans

plans developed for activities that occur repeatedly over a period of time

When Brendan was hired as a strategic manager by the wine distributor, he worked with all management levels to come up with the idea that the company start selling product in smaller bottles to reach a different price point. The company went with his suggestion and soon found itself as a market leader

provide direction for the company

a goal that establishes a desired outcome, rather than the activities or tactics to achieve it, specifically meets which characteristics of a SMART goal?

results-orientated

In the _________ step of the MBO process, managers prepare an action plan for attaining identified objectives

second

tactical goals

set by and for middle managers and focus on the actions needed to achieve strategic goals

Strategic goals

set by and for top management and focus on objectives for the organization as a whole

several managers a city messenger service wanted to improve the reliability of the service. Which of the following would correspond to creating a measurable goal?

stating that 85% of deliveries should be completed within 2 hours

top management

strategic planning

Ned started his company six years ago and has tried to grow his business by increasing sales from his customer base rather than trying to acquire new companies. Ned's thoughts for growing his business are an example of _______

strategy

middle management

tactical planning

During a meeting with the board of directors of charter bank, the president picked up a document and read the following statement: "we provide low-cost loans to help start-up businesses in our community" for which of the following documents would this statement be the most appropiate.

the company's mission statement

tactical planning by middle management

they determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months

Vision statement

which expresses what the organization should become, where it wants to go strategically