Chapter 7 and 8 Management 300
Management by Objectives (MBO)
(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
Question Marks (BCG Matrix)
- (upper right quadrant) appear in high-growth markets but have relatively low market shares -they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share. -Managers must decide whether to infuse question marks with resources generated by the cash cows, so that they can become stars, or withdraw resources and eventually phase out the products.
Limitations of planning
-can create a false sense of certainty -may cause rigidity in a turbulent environment -can get in the way of intuition and creativity
BCG Matrix classifications
-dogs: have small market value shares and no growth prospects--kill -cash cows: large shares of mature markets -question marks: small market shares in fast growing markets--divest, priorities -stars: large shares of rapidly growing markets--invest
Dog (BCG Matrix)
-easy to identify -underperforming business -small market share in a low-growth market -low and unstable earnings -neutral or negative cash flows -strategic recommendations: either divest the business or harvest it
Star (BCG Matrix)
-hold high market share in a fast growing market -earnings are higher and either stable or growing -recommendation: invest sufficient resources to hold the star's position or even increase investments for future growth
List the four major activities that must occur in order for MBO to succeed.
1. Set goals 2. develop action plans 3. review progress 4. appraise overall performance
List the five characteristics of effective goals.
1. specific and measurable 2. they should cover key result areas 3. they should be challenging but realistic 4. they should have a defined time period 5. they should be linked to rewards
Intelligence Teams
A c ross functional group of managers who work together to gain a deep understanding of a specific business issue
related diversification strategy
A corporate-level strategy through which a company expands its operations into areas that are similar to its existing operations
unrelated diversification strategy
A corporate-level strategy through which a company expands its operations into areas that have no relation to its existing operations
Coalitional Groups
A group that agrees with management goals and can influence other people
corporate level strategy'
A plan that indicates in which industries and national markets an organization intends to compete.
Single Used Plans
Achieve a set of goals that are not likely to be used in the future
Stretched Goals
Ambitious goals that are so clear and compelling and imaginative that they fire up employees to see a foreseeable and achievable goal
Turbulent Environment
An environment wherein customer or other stakeholder demands are continuously changing or the primary technology of the firm is constantly being improved and updated
_____ is the final step in the MBO process.
Appraise overall performance
What can Katelynn expect to be doing during the final step of the MBO process?
Appraising overall Performance
A slow down in Asia is an example if what kind of planning
Building Scenarios
Debt problems in Europe is an example of what kind of planning
Building Scenarios
Global Warming is what kind of Planning
Building Scenarios
Decisions regarding the proper amount of advertising for a particular good or service are related to
Business Level Strategy
Garmin's GPS business was affected because smartphones started carrying a GPS system that was not created by them. This would mean Garmin's company would have to focus on what kind of stratejgy
Business Level Strategy
Ford's decision to completely redesign its Ford Taurus can be classified as a
Business level Stategy
If Quick Trade's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a
Cash Cow
Contingency Planning
Company response to be taken in the case of emergencies of setbacks and unexpected conditions.
Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as _____.
Contingency Plan
Layoffs, Emergency budgets would be part of what kind of planning
Contingency Planning
Planning with the worst case scenario would be part of what kind of planning
Contingency Planning
What are the type of plans in management
Contingency Planning, Scenario Building , Crisis Planning
What kind of planning is needed in a turbulent enviroment?
Contingency Planning, building scenarios, crisis planning
New Sale Efforts or New Markets would be part of what kind of Planning
Contingency planning
A ______ is a business activity that an organization does especially well relative to its competition is known as
Core Competence
Superior Research, exceptional customer service , research and development are all examples of expertise a company has which is defined as
Core Competence
Garmin created the GPS that is used now in combination with multiple devices made from different companies such as UPS air, The marines, airplanes, foot pods, heart monitors, this is an example of what kind of strategy
Corporate Level Startegy
Sears' decision to sell off much of its financial services division is an example of a
Corporate Level Strategy
When AT&T decided to buy Media One, a cable company, it was pursuing a
Corporate Level Strategy
When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a
Corporate Level Strategy
Which of these are described by mission statements
Corporate values, Product quality, Location of facilities
Quick Trade is following which strategy, according to Porter, through the .com subsidiary
Cost Leadership
Cotton Creations is expecting to introduce new products that will experience rapid growth. Which of the following functional-level strategies should they ignore?
Cost Reduction
Which strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors?
Cost leadership
You are violating which of these goal characteristics when you attempt to create goals for ever& aspect of employee behavior?
Cover Key result Area
Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals?
Cover Key result areas
Hurricanes , tsunamis, earthquakes and nuclear disasters affect many organizations that is what it is it essential to have what kind of planning
Crisis Planning
Unexpected events that are so sudden and devastating that they have the potential to destroy the organization require what kind of planning
Crisis Planning
____enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response
Crisis Planning
Performance Dashboards
Dashboards that are used by executives to keep track of key performance metrics
An approach where top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans.
Decentralized Planning
Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function?
Decentralized planning staff
How to translate a plan
Define tactical plans and objective, develop a strategic plan, define contingency plans and scenarios , identify intelligence teams
Plan Operations consist of
Defining operational goals and plans, select measures and targets, set stretch goals, crisis planning
Management and Organization and management quality
Degree of Centralization, organization Charts, Planning information control Systems
Starbucks card gives you benefits when use the card to purchase in their coffee shop, is an example of what
Delivery value because a consumer is benefiting by getting rewards by purchasing coffee from them.
Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis?
Designating a crisis management team in the event of an environmental disaster
Tactical Plans
Designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy.
The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a crisis occurs
Detailed; written plan
List four reasons why planning generally positively affects a company's performance?
Explicit goals and plans can serve the following functions: resource allocation, source of motivation and commitment, guide to action, rationale for decisions, and set a standard of performance
Diversification is usually associated with the grand strategy of
External Growth
According to the strategy map described in chapter 7, which of the following is NOT a type of goal
External business Process Goals
A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Plan
False
A major difference between rules and policies is that rules are broad in scope whereas policies are narrow in scope.
False
A plan tells "why" to achieve the goal.
False
Goals must be set for every aspect of employee behavior or organizational performance to be effective
False
One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility
False
Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals
False
Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map
False
Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks.
False
Tactical goals and plans are the responsibility of frontline managers and supervisors
False
Tactical goals are specific, measurable results expected from departments, work groups, and individuals within the organization
False
The ABC Corporation should create a crisis management group that is not cross-functional, but does work together well under pressure.
False
The CEO of Andre's Autos, Inc. must do all of the planning for the company because that is the way to do things in today's workplace.
False
The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level.
False
Top managers make the broad strategic plan and identify specific tactical plans
False
n a complex and competitive business world, traditional planning done by a select few is the only planning that works
False
Operational plans that focus on specific tasks and processes that help to meet tactical and strategic goals are developed by ______ managers and supervisors
Front Line
Who develops Operational Plans?
Frontline managers develop operational plans (lower Management , individuals)
The assumption that a single global market exists would lead to a
Globalization strategy
refers to a desired future state that an organization attempts to realize.
Goal
___specify future ends and ____ specify today's means
Goals and Plans
Netflix provides more internet and movie rights so they can be able to provide services without having to use discs to watch movies or shows. What kind of structure is the company using to make this happen?
Goals and plans that guide into resource allocations
Goals Setting
Goals are socially constructed
Dobson Corporation is continually seeking out new markets and products, and is always on the lookout for acquisition candidates. Dobson is pursuing a grand strategy of
Growth
Monitor and Learn
Hold planning reviews Hold operational reviews
business level strategy
How do they compete? they are concerned about direct and extent of research and developments, product changes , new product development and equipment facilities.
Which of these questions is central to a functional-level strategy
How do we support our chosen strategy?
Operational Plans
Identify the specific procedure and processes needed at lower levels of the organization such as individual departments, these include specific tasks to help meet strategic and tactical goals.
Finance
In charge of Profit margin, depth, equity ratio, return on investments, credit rating
Human resource
In charge of experience, education, union status, turnover, absenteeism, work satisfaction and grievances
To encourage employees to find ways to cut costs, and thus achieve their strategic goal of overall cost leadership, Delta Dreamforce introduced a pay-for-performance system. This is an example of which of the dimensions used for implementing strategy?
Information and control systems
Toy Trains, Inc. just introduced a new line of trains. This action is consistent with the grand strategy of
Internal Growth
Which of the following is NOT involved in the stages of crisis planning?
Investigating all stake holders
Crisis Planning
Is planning for the unthinkable and its consequences. Is a proactive approach to crisis management. Must be an integral part of every organization's long- and short-term planning. Involves supervisors in anticipating what must be done to adjust when circumstances and priorities change rapidly. Allows supervisors to use their information-getting and information-giving skills to help employees prepare for and address crises.
Core Competence
Is something that a company does especially well in comparison to its competitors, it acquires expertise that the competitors do not have
Strategy
Is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage and attaining organizational goals
What are the benefits of goal planning ?
It includes a source of motivation, they determine resource allocation, providing action and setting a standard of performance measurement.
Plan
Its a blue print for goal achievement and specifies the necessary resource , allocations , schedules and tasks
When DuPont and Xerox cooperated to create a separate entity called DX Imaging, Inc., it implemented which of these cooperative strategies
Joint Ventures
Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy?
Leadership
In developing a strategy map for her interior design business, Carla has decided to promote employee development by providing online training tools. This involves goals in which strategy map category
Learning and growth Goals
_________means selling off a business unit for the cash value of the assets, thus terminating its existence
Liquidation
Building Scenarios
Looking at current trends and discontinuities , and visualizing future possibilities rather than looking at history, to see what the organization could be
is primarily responsible for operational goals/plans
Lower Management
Which of these is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance?
Management By Objective
_____ is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.
Management By Objective
Managers believe that they are better oriented toward goal achievement when _____ is used.
Management By Objectives
An approach that focuses people on the methods and processes used to attain results, rather than on the results themselves.
Management by Means
Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method?
Management by objective
Which of these is(are) primarily concerned with tactical goals/plans
Middle Management
Who are responsible for tactical goals
Middle managers , heads of major divisions
"We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's
Mission
"We seek to become the premier business school in the west" is an example of a statement you are most likely to find in the organization's
Mission
The organization's reason for existence is known as the organization's _____.
Mission
________describes the organization's reason for existence
Mission
A statement that identifies distinguishing characteristics of an organization is known as a
Mission Stament
A(n) _____ is a broadly stated definition of basic business scope and operations that distinguishes the organization from others of a similar type
Mission Statement
____ refers to a broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations
Mission Statement
What is the order of the organizational planning process
Mission Statement (strategic goals and plans from Upper Management), Tactical Goals( Middle Management, heads of major divisions), Operational Goals (lower management department, individuals)
The ____is the basis for the strategic level of goals and plans which in turn shapes the ____, and ____ level.
Mission; Tactical; Operational
Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which stage of the organizational planning process?
Monitoring and Learning
What do goals provide to employees
Motivation, Commitment
related diversification
Moving into a new business that is related to the corporation's existing business activities.
Which of these refers to the modification of product design and advertising strategies to suit the specific needs of individual countries?
Multidomestic Strategy
Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000.Her goal of $265,000is probably:
Not realistic
The specific results expected from departments, work groups, and individuals are the _____goals.
Operational
Which of the following represent plans developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities?
Operational Plans
Which of the following is NOT one of the benefits of MBO
Operational goals are able to displace strategic goals.
____goals lead to the attainment of ____ goals, which in turn lead to the attainment of _____ goals
Operational; tactical; Strategic
Which of the following is NOT a tool for executing a plan
Operations Map
The human resource department at Tyke's Tricycles is implementing a number of functional level strategies. These strategies include focusing on ways to retain and develop a stable work force and ways to improve efficiency in the organization. These functional-level strategies are consistent with which of the following strategies
Overall cost leadership
Target Customers
People most likely to buy a business's products and services.
A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a
Plan
Which of the following is not a step in the organizational planning process?
Plan marketing tactics
Of the strategic management functions, which is considered the most fundamental
Planning
The act of determining the organization's goals and the means for achieving them is referred to as ____.
Planning
What is the most efficient management function
Planning
_____ is the act of determining the organization's goals and the means for achieving them
Planning
Which of the following is a commonly-cited limitation of planning?
Plans can create a false sense of security
___ define boundaries within which to make a decision.
Policies
An example of a _____ is a statement supporting the organization's efforts in the area of sexual harassment
Policy
What are the three Corporate Level Strategies
Portfolio Strategy, BCG Matrix and Diversification
Barriers to entry are related to which competitive force
Potential new entrants
The two stages of crisis planning include:
Preparation and prevention
QT.com subsidiary for Quick Trade can be classified as a
Question Mark
Gillette operates numerous strategic business units. Most of its are in the personal care division
Question Marks
According to your text, which of the following is a particular strength of Kraft Foods?
R&D
production location
Resources, machinery, purchasing system, quality control, product efficiency
High Fence Corporation is currently implementing an MBO program. Managers and employees jointly set objectives and develop action plans, and goal achievement is evaluated on an annual basis. High Fence is missing which major activity that must occur in order for MBO to be successful
Reviewing progress
No food and/or drink in the classroom" is an example of a ____.
Rule
Threats from Government Reports, professional Journals, suppliers and bankers are part of what planning Tool
SWOT Analysis
____ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed
Scenario Building
As part of a liquidation strategy, Rose International would
Sell off parts of its business
____ is the first step in the MBO process.
Setting Goals
Building a New headquarters for an organization would be what type of plan
Single-use Plan
Renovating an Office Setting and adding internet service would be considered what type of plan
Single-use plan
Which of these is lacking in the goal "profits should be increased in the coming year?"
Specific and measurable
The management of Mugs, Inc. decided on growing slowly and in a controlled fashion. This is consistent with the grand strategy of
Stability
____ plans are used to provide guidance for work-related tasks that are performed repeatedly within the organization.
Standing
Employee Illness , absences, smoking, discipline, hiring, dismissal are all part of what kind of plan
Standing Plan
Organizational Policies are part of what plan
Standing Plan
Procedures are part of what plan
Standing Plan
Rules are part of what plan
Standing Plan
Social Media monitoring is now being implemented in more than 40% of companies , what kind plan is this
Standing Plan
Incorporating policies, such as sexual harassments or no eating in certain areas to avoid clients to see employees would fall under what type of plan
Standing Plans
Faced with rapidly growing business, Quick Trade, Inc., a global brokerage company with the largest market share, recently announced that they have established an on-line stock investment and trading subsidiary, QT.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates., it can be classified as
Star
The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as
Strategic Formulation
Trader joes achieving to become a nationwide chain of grocery stores trying to retain a cozy feel is an example of what kind of goal?
Strategic Goal
Broad statements describing where the organization wants to be in the future are called _____
Strategic Goals
The official goals of the organization are best represented b& the
Strategic Goals
are the broad statements of where the organization wants to be in the future.
Strategic Goals
A long-term time frame is most closely associated with
Strategic Plans
____ are called the action steps by which an organization intends to attain its strategic goals.
Strategic Plans
_____define the action steps by which an organization intends to attain its strategic goals
Strategic Plans
To take a long term view and to see the big picture including the organization and the competitive environment is called what
Strategic Thinking
The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n
Strategy
Assessing and identifying Internal issues is part of what step in a organization.
Strategy Formulation
Which of the following is a visual representation of the key drivers of an organization's success, showing the cause-and-effect relationships among goals and plans?
Strategy Map
Which of these refers to the use of managerial tools to direct resources toward the achievement of strategic goal
Strategy implementation
Amazon built their first kindle reader with built in cellular access so people do not have to connect to a PC. This would be considered what kind of goal
Stretch Goal
___are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence
Stretch Goals
As a way of implementing their differentiation strategy which emphasizes quality, 123 Corporation decided to switch from an assembly line manufacturing system to a system based on work teams. This is an example of which of the dimensions used for implementing strategy
Structural Design
A desired future state that the individual or organization attempts to realize is a goal.
TRUE
Managers must understand no plan is perfect, but should grow and change to meet new conditions.
TRUE
Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as ______ goals
Tactical
Which type of plan helps managers implement the overall strategic plan?
Tactical
Trader Joe's target market , is educated and adventurous consumers , this will help to decide in which area they would open a new location per their strategic plan. This is an example of what kind of plan
Tactical Plans
Coalitional Manager
Talks to customers and other managers, addresses conflicts , breaks down barriers and promote cross-silo cooperation.
Income graphic, preteen girls or online shoppers are considered what in a organizations strategy view
Target Customers
Strategic Plans
The actions or steps by which a company intends to attain strategic goals . This consists of activities, resource allocations ,in the terms of cash, facilities, personnel and space
The planning process begins with which of these?
The development of a mission statement
strategy formulation
The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals
Appraise overall performance
The final step in MBO is to evaluate whether annual goals have been achieved for both individuals and departments. Success or failure to achieve goals can be part of the performance appraisal system and the designation of salary increases and other rewards.
Which of these refers to the overall plan of action for the organization
The grand strategy
Which of these is true about single-use plans?
They are developed to achieve a set of goals that are unlikely to be repeated in the future.
Which of these are true about contingency plans?
They define company responses to specific situations, such as emergencies or setbacks.
A strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries is referred to as a
Transnational Strategy
A visual representation of the key drivers of an organization's success and shows how specific goals and plans in each area are linked is called a strategy map.
True
Goals and plans provide a sense of direction and focus on specific targets and direct employee efforts toward important outcomes
True
Management by objectives, single-use plans, and standing plans are all management planning approaches.
True
Operational planning specifies plans for department managers, supervisors, and individual employees
True
Prevention and preparation are the two stages of crisis management.
True
Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them.
True
The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level.
True
Three critical planning methods are contingency planning, building scenarios, and crisis planning
True
Execute the plan
Use: Management by objectives Performance dashboards Single use plans Decentralized responsibility
market share
Whether a business has a larger or smaller share than competitors
Goal
a desired future circumstance or condition that the organization attempts to realize
SBU (strategic business unit)
a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives
unrelated diversification
a growth strategy whereby a new business lacks any common elements with the present business
Single Use Plan
a one-time plan specifically designed to meet the needs of a unique situation
SWOT analysis
a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats that affect the organizations performance
BCG Matrix
a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds
Mission Statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment
Who sets up a strategic plan
a strategic plan is set up by top management (executives)
Strategic Goals
are broad statements describing where the organization wants to be in the future.
Standing plans
are developed to achieve a set of goals that are unlikely to be repeated in the future.
Standing Plans
are ongoing plans that are used to provide guidance for tasks that occur repeatedly in the organization
Who creates the mission statement?
board of directors
When Coca-Cola introduced Surge, a new citrus soft-drink, it was pursuing a
business level strategy
What are the three levels of strategy
corporate, business, functional
Traditionally, if Stephanie, CEO of Butterfly Pillows, needed to conduct corporate planning, it would be performed by all of the following except:
decentralized planning groups
What is the heart of strategy
deliver value to customers
Crisis Preparation
designate crisis management team and spokesperson, create detailed crisis management plan, set up effective communications system
Marketing and Distribution
determining what products or services customers want and need, advertising the products, and delivering them to customers
Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment. In the MBO process, after the first step of setting objectives is accomplished, the next step that Eatelynn should expect is:
developing action plans
The ________strategy involves an attempt to distinguish the firm's products or services from others in the industry.
differentiation
Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?
differentiation
The ________of implementing a strategy is _________when a company goes global
difficulty, increased
The acquisition of businesses that are related to current product lines or that takes the corporation into new areas is referred to as
diversification
apple began as a computer company, and now its selling cellphones , this is considered what kind of strategy
diversification strategy
Defining operational goals and plans occurs in the execution phase of the organizational planning process.
false
In centralized planning, managers at all levels work with planning experts to develop their own goals and plans
false
Sales in relation to targets is an example of a balanced scorecard metric.
false
Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a strategy
focus
With a _________ strategy, the organization concentrates on a specific regional market or buyer group.
focus
What does the BCG Matrix do?
focuses on determining the potential of a firm's existing successful SBUs to generate cash that the firm can then use to invest in other businesses
The planning process starts with
formal mission that defines the organization's purpose
A(n)____ is a desired future state that the organization attempts to realize.
goal
One major limitation of goals and plans is:
goals and plans may cause rigidity in a turbulent environment.
All of the following are characteristics of effective goal setting except:
goals should be set for every aspect of employee behavior
Roxanne is a manager at Geronimo Gaming. She recently attended a seminar on goal setting. She wishes to use goals to provide a sense of direction to her staff. She is using goals as
guide to action
The traditional approach to corporate planning was to
have a centralized planning department
Strategic Execution
how well managers and their employees understand and carry out the actions needed to achieve strategic goals
Katelynn can anticipate enjoying the advantages of MBO which include
increased orientation toward goal achievement , performance can improve at all company levels, employees are more motivated, increased orientation toward goal achievement and motivation. so all of these.
What does the BCG matrix measure?
industry growth rate vs. relative market share
A(n) ____ is a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue
intelligence team
At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and employees. The purpose of the group is to gain a deep understanding company's competitive environment and periodically present these findings to top management. Sophia is involved in what type of team?
intelligence team
Crisis Prevention
involves activities that managers undertake to try to prevent crises from occurring and to detect warning signs of potential crises
Separate entities created with two or more active firms as sponsors are called
joint ventures
differation strategy
keep your product *unique/different*; driving customers to buy your product
Cash Cows (BCG Matrix)
low growth, high market share
At the top of the goal hierarchy is:
mission
_____plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans.
operational
Which of the following refer to specific results expected from individuals?
operational Goals
The _____ is the department manager's tool for daily and weekly operations
operational Plan
Managers use a____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively
operational goals
Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals?
operational goals
Sam is in charge of strategy control at Lanser's, a large clothing retailer. He regularly tracks sales in relation to targets, number of products on back order, and percentage of customer service calls resolved within specified time periods. These metrics are known as
performance dashboards
Functional-level strategy
pertains to the major functional departments within each business unit, such as manufacturing, marketing, and research and development
Portfolio Strategy
pertains to the mix of SBUs and product lines that fit together in a logical way to provide synergy and competitive advantage
A(n) ____ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.
plan
decentralized planning
planning experts work with managers in major divisions or departments to develop their own goals and plans
What are the four management functions
planning, organizing, leading, controlling
How business units and product lines fit together in a logical way is the essence of
portfolio Strategy
What are the two stages of Crisis Planning
prevention and preparation
research and development
responsible for research in laboratory, research programs, new productive innovations, technology innovation
The ultimate impact of goals depended on the extent to which goal achievement is linked to:
rewards, salary increases, promotions, salary increases and promotion, so all of these
Contingency plans are also referred to as
scenarios
Tactical Goals
set by and for middle managers and focus on the actions needed to achieve strategic goals
A project is an example of a
single-use plan
Opportunities
situations that present possibilities for exceeding existing goals
Cheyenne Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a
standing plan
Some people argue that is the most difficult and most important part of strategic management.
strategic implementation
The planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan is known as
strategy formulation
diversification strategy
strategy of moving into new lines of business
In using MBO, objectives should be set by the:
supervisor and the employee jointly.
Sarah is a middle manager at Stylin' Snea5ers Corporation. She is most likely responsible for the achievement of
tactical
____ and plans are the responsibilities of middle managers
tactical Goals
_____ are designed to help execute major strategic plans and to accomplish a specific part of the company's strategy.
tactical Plans
Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called:
tactical goals
Vertical Integration
the combination in one company of two or more stages of production normally operated by separate companies.
Deliver Value
the combination of benefits received and costs paid
cost leadership strategy
the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors
focus strategy
the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment
Planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
Strategic Management
the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals
Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be:
to develop new objectives based on the review of last year's performance
is primarily responsible for strategic goals/plans
top management
A corporate-level strategy is concerned with the question
what business are we in?
competitive advantage
what sets the organization apart from others and provides it with a distinctive edge in the marketplace
Synergy
when two organizations interact and produce a joint effect . It creates greater value because the companies already attain a special advantage
