chapter 5 mgmt

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

-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.

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

-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).

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

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

10. Thomas, 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." Thomas was asking for his workers' _____. -focused heart -statements -policies -strategic goals -synergy objectives -SMART goals

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

19. Alex, a district manager for a retail hardware store, asked his 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." Alex then responded to Denise with "Precisely how much are you going to increase your market share and by what date?" Alex is asking Denise to formulate a SMART goal. -True -False

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

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

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

15. 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 -False

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

12. 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 -False

-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.

18. Don, 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 -False

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

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

-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.

16. 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 -False

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

7. A goal is _____. a type of mission statement -a type of plan -a norm that can result in organization synergy -a specific commitment to achieve a measurable result within a stated period of time -the purpose of the organization

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

8. 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 ____. -code of ethics -business plan -personal vision -values -action plan

-action plan The goal should be followed by an action plan, which defines the course of action needed to achieve the stated goal, such as a marketing plan or sales plan.

4. 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 ____. -heart pact -objective statement -vision statement -code of ethics -mission statement

-mission statement A mission statement expresses the purpose of the organization. Whether the organization is for-profit or nonprofit, the mission statement identifies the goods or services the organization provides and will provide. Sometimes it also gives the reasons for providing them (to make a profit or to achieve humanitarian goals, for example).

6. 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) _____. -strategic plan -strategic goal -operational goal -tactical plan -operating plan

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

2. Setting goals and deciding how to achieve them is the definition of ____. -focusing -organizing -regulating -controlling -planning

-planning Planning is defined as setting goals and deciding how to achieve them.

9. A standing plan that outlines the general response to a designated problem or situation is a(n) _____. -order -norm statement -policy -ethical value -standing rule

-policy A policy is a standing plan that outlines the general response to a designated problem or situation

3. An organization should adopt planning and strategic management to ____. -decrease costs and increase synergy -keep employees happy, encourage new ideas, and decrease costs -provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage -develop MBO, encourage new ideas, and increase profits provide encourage new ideas, and increase organization diversity

-provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage An organization should adopt planning and strategic management for three reasons: They can (1) provide direction and momentum, (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage.

A music teacher asked her students to set a really hard goal, such as increasing your practice time by 10 hours per week, which would cause her students to stretch beyond what they think is possible, this is known as a(n) ____. -mission statement -stretch goal -strategic goal -MBO plan -growing goal

-stretch goal If you have outsize ambitions, you might set yourself a really hard goal (e.g., increase study time 50%)—what's known as a stretch goal, or "stretching yourself beyond what your mind might think is safe," according to one definition from Richard Branson, founder of Virgin Atlantic airlines.

5.A declaration that expresses what the organization should become and where it wants to go strategically is its ____. -vision statement -objectives statement -code of ethics -management code -mission statement

-vision statement A vision statement expresses what the organization should become, where it wants to go strategically.

Danny is participating with other managers in a discussion about what his organization's goals should be for the next decade. He is participating in: -Strategic planning -Operational planning -Tactical planning -Controlling

Strategic planning Page: 138 LO: 2 Difficulty: Hard Rationale: He is participating in long-term planning, a part of strategic planning.

Apple has fired employees who have leaked news about unannounced products. Which step of the Planning/Control is this? -Make the plan -Carry out the plan -Take corrective action -Document the plan

The correct answer is "C" - take corrective action.

Melissa wants her employee, Ralph, to turn in his monthly sales report by the 5th of every month. This meets the ____________ requirement of SMART goals. -Specific -Measurable -Attainable -Target dates

The correct answer is "D" - Target dates.