MANA3335 MindTap Assignment: Chapter 03: Planning and Strategic Management

Assess outcomes Monitor activities Distribute resources to responsible parties Communicate throughout process Obtain information needed

*Executing {Executing activities: Obtain information needed, Communicate throughout process, Assess outcomes, Monitor activities}

A plan to merge two companies

*Single-use plan {Once the two companies merge, they will not use that plan for merging again}

Which of the following factors should be classified as an opportunity for the team?

*A number of free-agent outfielders are available for signing by the Giants this year. Many of them have better statistics than the current team members {In a SWOT analysis, the number of good free-agent outfielders available would be regarded as an opportunity, because it is something that could work in the team's favor and is occurring outside the organization}

You are developing a plan for your department to use when replenishing supplies needed to accomplish ongoing activities. What type of plan should you create?

*Standard operating procedure {When a plan is developed for activities that recur regularly, the plan is a standing plan. Standing plans include policies, standard operating procedures, and rules. In this situation, you would use a standard operating procedure because you are outlining steps for replenishing supplies}

Instructions for completing timesheets

*Standing plan {Employees are expected to fill out timesheets according to the instructions every time they report their hours}

The Bose Corporation's _________ is based on the high technology of its products, which few other companies can match.

*distinctive competence {A distinctive competence is an organizational strength possessed by only a small number of competing firms. An effective strategy is one that promotes a superior alignment among the organization, its environment, and the achievement of strategic goals. Diversification refers to the number of different businesses in which an organization is engaged. Crisis management relates to the set of procedures an organization uses if a disaster or other unexpected event occurs}

In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. What must you do to ensure the party is implemented successfully?

*Be sure the people involved get the information they need when they need it {Tactical plans must be developed and executed. Developing the plans involves gathering information and making decisions. Executing the plans involves specifying activities, allocating resources, and taking action. The correct answer here is to get the necessary information to the people who need it. The other answers are activities that would not facilitate the actual execution of the party}

Managers for IBM's SPSS statistics software meet to determine how they will market the product in the upcoming year. Their decision is to show potential clients how effective SPSS is at analyzing extremely large data sets and how the "direct marketing" part of the program helps identify which customers will respond to advertisements.

*Business-Level Strategy {This is a business-level strategy because managers are concentrating on how to sell one item, SPSS. They are not looking at all of IBM's businesses in this example}

At Apple, managers ask, "Should our next iPad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an iPad?"

*Business-Level Strategy {This is a business-level strategy question because managers are concerned only with Apple's iPad product. If Apple were deciding to sell more affordable products by entering the cloud-based laptop market (to compete with the Chromebook, for example), then this would be a corporate strategy}

Procedures for responding to customer complaints

*Standing plan {Procedures tell employees what to do whenever a situation occurs. In this case, the employee is expected to respond a certain way to all customer complaints}

When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify:

*Company strengths and weaknesses

After a company has analyzed the environments in which it operates and develops a specific plan of action, it becomes time for ________ .

*strategy implementation {Strategy implementation refers to the methods by which strategies are operationalized or executed within the organization. It focuses on the processes through which strategies are achieved. Strategy formulation is completed before strategy implementation and includes developing a plan to follow. Overall cost leadership and a single-product strategy are both types of strategies a company may choose to adopt during the strategy formulation stage. A single-product strategy is one in which an organization manufactures just one product or service and sells it in a single geographic market}

In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. What must you do to ensure the party is implemented successfully?

*Allocate the necessary time for employees who will help set up the party {Tactical plans must be developed and executed. Developing the plans involves gathering information and making decisions. Executing the plans involves specifying activities, allocating resources, and taking action. The correct answer here is to allocate the time necessary for those employees involved in the party. Anticipating low attendance by a certain group of employees and notifying your supervisor that funds will be spent on a party are part of developing the tactical plan, not executing it. Thanking people for attending the party is done after the party's implementation, not before}

PepsiCo makes and sells large numbers of products, from Pepsi Cola to Lay's potato chips to Cap'n Crunch cereal. Last Tuesday, PepsiCo analyzed the sales of Near East Rice Pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money PepsiCo has in its coffers, managers decided to continue selling Near East Rice Pilaf and advertise it more heavily.

*Business-Level Strategy {This is a business-level strategy because managers are only looking at Near East Rice Pilaf and none of PepsiCo's other brands. They analyze the attractiveness of the industry structure and evaluate PepsiCo's resources to determine what to do with the business}

Type of Business Shipping Cargo inspection Railroad loading Freight forwarding Projected Market Growth Rate Low High Low High Current Market Share 1% 5% 75% 70% Which of the following divisions would you invest in cautiously?

*Cargo inspection {According to the Boston Consulting Group matrix, the four businesses would be classified as follows: Type of Business Shipping Cargo inspection Railroad loading Freight forwarding BCG Category Dog Question mark Cash cow Star Rationale This company has a low market growth rate and a low relative market share. This company has a high market growth rate and a low relative market share. This company has a low market growth rate and a high relative market share. This company has a high market growth rate and a high relative market share. You should invest cautiously in the cargo inspection division because it is a question mark}

A company is pursuing a ___________ strategy when it decides to offer only health insurance brokerage services in the Upper Midwest.

*single-product {This business is using a single-product strategy because it is offering one service in one market. A diversification strategy would involve offering different products or services. A focus strategy is a business-level strategy. For example, if this company decided to offer health insurance brokerage services primarily to Medicare recipients looking for supplemental insurance, it would be using a focus strategy}

A company's managers ask, "Should we increase the size of our Bluetooth wireless speaker and sell it at a higher cost?"

*Business-Level Strategy {This is a business-level strategy question because managers are discussing changes to only one product, the Bluetooth wireless speaker}

A big issue at a company's budget meeting relates to whether it should open new store locations or focus on updating the existing stores. This is a question of ____________ .

*resource deployment {Resource deployment refers to how an organization distributes its resources across the areas in which it competes. Scope specifies the range of markets in which an organization will compete. Contingency planning relates to determining alternative actions if the intended plan is unexpectedly disrupted or becomes inappropriate. Strategy is a comprehensive plan for achieving an organization's goals}

A company's executive team engages in ________ when it undertakes a comprehensive and ongoing effort to address business opportunities and challenges.

*strategic management {Strategic management is a comprehensive and ongoing management process aimed at formulating and implementing effective strategies. It is a way of approaching business opportunities and challenges. Crisis management relates to the set of procedures an organization uses if a disaster or other unexpected event occurs. Diversification refers to the number of different businesses in which an organization is engaged. An overall cost leadership strategy involves an organization's attempt to gain a competitive advantage by reducing its costs below those of other firms}

Google managers ask, "Should we acquire a telehealth company to complement our purchase of Fitbit?"

*Corporate-Level Strategy {This is a corporate-level strategy question because Google managers are trying to determine whether they should add another business (a telehealth company) to their existing portfolio of businesses}

A company's managers ask, "Does it make sense for our vacuum-cleaner company to buy a company that manufactures space heaters?"

*Corporate-Level Strategy {This is a corporate-level strategy question because the company is making a major decision about which industries it wants to be in. Selling space heaters will change the nature of the business}

What role does the mission statement play in the planning process?

*Sets purpose of business {In the planning process, the mission statement sets the overall purpose of the business. Strategic goals and plans set the company direction as it seeks to meet its purpose. The tactical goals and plans link the strategy with the operations. The operational plans and goals guide the daily activities}

Because Estée Lauder offers perfumes, general market and specialty cosmetics, and hair-care products, it is pursuing _______________ strategy.

*a related diversification {Estée Lauder is using a related diversification strategy because it sells different products that all relate to beauty. Companies that use this corporate-level strategy often seek to leverage a core competence across multiple products/services and markets. A couple of examples of unrelated diversification would be if Estée Lauder purchased a chain of restaurants or entered the commercial real estate market—industries unrelated to beauty. A differentiation strategy is a business-level strategy that promotes a higher-quality product at higher cost. For instance, Estée Lauder's Re-Nutriv skin-care brand includes products with names like Ultimate Diamond, and the packaging features a gold and crystal look. Estée Lauder claims the products use ancient techniques and rare ingredients to product their effects. All of these things support a differentiation strategy}

The manufacturer of Chobani Yogurt decided to open a flagship store in Soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing yogurt for seven years, the company had never tried to run a restaurant before.

*Corporate-Level Strategy {This is a corporate-level strategy because Chobani decided to enter a new type of business after looking at the business environment and the company's resources. The hope is that having stores that are dedicated to Chobani sales will increase the attractiveness of Chobani to a wide variety of consumers}

Tesco managers sold their Fresh & Easy U.S. grocery-store chain after looking at the returns from that division and comparing them with returns from Tesco's other divisions around the world. The analysis led managers to decide that the market couldn't deliver acceptable returns for the company, which is based in England.

*Corporate-Level Strategy {This is a corporate-level strategy because Tesco looked at all of the businesses it was in and decided that only one (Fresh & Easy) was not creating value for the company. Note that Tesco is also allocating resources among different businesses, essentially removing the money that was keeping Fresh & Easy afloat}

Understand strategic plans Specify the resources available Determine human resource needs Identify human resource constraints Identify the time constraints involved

*Developing {Developing activities: Understand strategic plans, Identify the time constraints involved, Determine human resource needs, Recognize resources required}

Considering all of the factors listed in the preceding SWOT analysis question, what strategy would make the most sense for the Giants in the upcoming season?

*Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts {The most effective strategy for the Giants is to sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts, because it takes advantage of the Giants' strengths and opportunities and minimizes the Giants' weaknesses}

A plan to reorganize all of the jobs in an office

*Single-use plan {After reorganizing the jobs in the office, you will not use the reorganization plan again}

When managers execute a tactical plan, what kinds of activities are involved? Check all that apply.

*Evaluating results *Evaluating effectiveness of possible actions *Distributing resources {Managers know that properly executing a tactical plan depends upon a number of factors. First, the manager needs to evaluate every possible course of action in light of the goal. He or she must make sure that each decision maker has the information and resources necessary to get the job done. The manager must monitor ongoing activities derived from the plan to make sure they are achieving the desired results. These are the relevant factors. Strategic planning occurs before tactical plans are developed because tactical plans are designed to meet strategic goals. Anticipating conflicts is part of tactical planning; actually, managing any conflicts that arise would be part of executing tactics}

Tactical goals link a company's strategy with its operations. Which of the following would be an appropriate tactical goal for Twitter?

*Expand premium ad products for advertisers to create, manage, and activate tailored audiences including mobile advertising IDs, mobile phone numbers, and look-alike audiences {Organizations have a mission and strategic, tactical, and operational goals and plans: •An organization's mission is its fundamental purpose for existing. It identifies the scope of operations. •Strategic goals are set by top management and set the company's direction so it can fulfill its purpose. The strategic plan outlines how resources will be allocated, priorities set, and action steps taken to reach strategic goals. •Tactical goals are set by middle managers and seek to operationalize actions to achieve the strategic goals. Tactical plans address the implementation of specific parts of the strategic plan. •Operational goals are set by lower-level managers and set specific, short-term objectives. Operational plans each set out a relatively small set of activities to achieve an operational goal. Growing "annual revenues by 18% or more to a range of $1.365M- $1.375M" would be a strategic goal, because by becoming larger and gaining more resources, Twitter would have greater ability to fulfill its mission—to help people share information. Managers would determine what tactical goals would most further the strategic goal. A possible tactical goal would be "expand premium ad products" because this could promote revenue growth. To execute a tactical plan at the operational level, managers might set the operational goal of coding and testing look-alike targeting functionality by the third quarter}

In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. What must you do to ensure the party is developed successfully?

*Include the party in the blueprint for the United Way initiative {Tactical plans must be developed and executed. Developing the plans involves gathering information and making decisions. Executing the plans involves specifying activities, allocating resources, and taking action. The correct answer here is to include this step in the blueprint, or planning document. Sending out invitations and reserving the room are part of executing the plan, not developing it}

UNIQLO has had strong demand for its products and it entered the growth stage quickly. Which of the following challenges is most common during this stage?

*Managing inventories {At this stage, inventory management will be important so that the company can ensure that it has supply to meet demand. Lowering prices will be more critical in the maturity stage, and conducting new product research and depleting old inventory will be most important in the decline stage}

If in addition to having a high market share in the freight-forwarding industry, your company has strong technical know-how and can produce high-quality products at low cost, what would be the most negative classification freight forwarding could receive?

*Profit producer {According to the GE Business Screen, the following factors determine competitive position: •Market growth •Technological know-how •Product quality •Service network •Price competitiveness •Operating costs If all of these are favorable for the company with respect to the freight-forwarding industry, then the company's competitive position would be good. Even if the industry attractiveness is low, the business would be classified as a profit producer}

If in addition to having a low market growth rate, the railroad-loading industry has small market size, high capital requirements, and high competitive intensity, what would be the most positive classification railroad loading could receive?

*Profit producer {According to the GE Business Screen, the following factors determine industry attractiveness: •Market growth •Market size •Capital requirements •Competitive intensity If these are all unfavorable for the railroad-loading industry, then its industry attractiveness would be low. Even if the company had a good competitive position, the best classification railroad loading could receive would be profit producer}

Type of Business Shipping Cargo inspection Railroad loading Freight forwarding Projected Market Growth Rate Low High Low High Current Market Share 1% 5% 75% 70% Which of the following divisions would you continue to operate so you could take profits from it?

*Railroad loading {According to the Boston Consulting Group matrix, the four businesses would be classified as follows: Type of Business Shipping Cargo inspection Railroad loading Freight forwarding BCG Category Dog Question mark Cash cow Star Rationale This company has a low market growth rate and a low relative market share. This company has a high market growth rate and a low relative market share. This company has a low market growth rate and a high relative market share. This company has a high market growth rate and a high relative market share. You should take profits from the railroad loading division (perhaps invest those profits in the freight forwarding or cargo inspection divisions), but continue to run the division because it is a cow}

Type of Business Shipping Cargo inspection Railroad loading Freight forwarding Projected Market Growth Rate Low High Low High Current Market Share 1% 5% 75% 70% Which of the following divisions would you sell immediately?

*Shipping {According to the Boston Consulting Group matrix, the four businesses would be classified as follows: Type of Business Shipping Cargo inspection Railroad loading Freight forwarding BCG Category Dog Question mark Cash cow Star Rationale This company has a low market growth rate and a low relative market share. This company has a high market growth rate and a low relative market share. This company has a low market growth rate and a high relative market share. This company has a high market growth rate and a high relative market share. You should sell the shipping division immediately because it is a dog}

A company's strategic goals specify a direction for accomplishing the company's mission. Which one of the following would be an appropriate strategic goal for Twitter?

*Strengthen the core user base usage by time spent on timeline, content generation, and mobile engagement {Organizations have a mission and strategic, tactical, and operational goals and plans. For Twitter, a strategic goal would be to "strengthen the core user base usage" because this would help it fulfill its mission of helping people exchange ideas. Managers would determine what tactical goals would most further the strategic goal. Candidates for tactical goals are to "update the profile experience on the iPhone" and "increase usage by professional and citizen journalists by 50%." To execute a tactical plan at the operational level, managers might set the operational goal of increasing capacity to meet certain client requests by the second quarter}

Which of the following factors are relevant for successfully executing tactical plans? Check all that apply.

*The manager needs to evaluate every possible course of action in light of the goal *Each decision maker must have the information and resources necessary for getting the job done *The manager must monitor ongoing activities derived from the plan to be sure the results are as expected {Managers know that properly executing a tactical plan depends upon a number of factors. First, the manager needs to evaluate every possible course of action in light of the goal. He or she must make sure that each decision maker has the information and resources necessary to get the job done. The manager must monitor ongoing activities derived from the plan to make sure they are achieving the desired results. These are the relevant factors. Other factors, like communicating upline or downline or congratulating those involved, are not determining factors in the execution of a plan}

What factors can help to ensure a successful execution of a tactical plan? Check all that apply.

*The manager needs to evaluate every possible course of action in light of the goal *The manager must monitor ongoing activities derived from the plan to be sure the results are as expected *Each decision maker must have the information and resources necessary for getting the job done {Managers know that properly executing a tactical plan depends upon a number of factors. First, the manager needs to evaluate every possible course of action in light of the goal. He or she must make sure that each decision maker has the information and resources necessary to get the job done. The manager must monitor ongoing activities derived from the plan to make sure they are achieving the desired results. These are the relevant factors. Although communicating vertically and horizontally is important to coordinate activities, top management does not need to be informed of every step of tactical plan implementation, which is a lower-level activity. Also, although it is nice to thank people, tactical plans are made up of many action steps, so congratulating team members upon completion of each step would be excessive}

If analysis using the BCG matrix suggests that a business should be sold immediately, what factors in the GE Business Screen would suggest that the business is actually worth keeping?

*The market is large and there are few competitors {Because analysis using the BCG matrix suggests this business should be sold, it is a "dog"—that is, its market share is low and market growth is expected to be low. The GE Business Screen, however, looks at additional factors to determine industry attractiveness and the company's competitive position. Using this model, if the market is large and there are few competitors, then even if the market is growing slowly, overall industry attractiveness might be medium or good, resulting in a reassessment of whether to keep the business}

Casual Male XL serves customers who wear large sizes. Its targeted customer base indicates that the chain is using __________ to gain a competitive advantage.

*a focus strategy {A focus strategy is one in which an organization concentrates on a specific regional market, product line, or group of buyers. An overall cost leadership strategy relates to an organization's desire to gain a competitive advantage by reducing its costs below those of competing firms. A differentiation strategy is one in which an organization seeks to distinguish itself from competitors through the quality of its products and services. The product life cycle is a model that portrays how sales volume for products changes over the life of products}

Virgin pursues ___________ strategy because it is in the airline, telecommunications, and music industries, among others.

*an unrelated diversification {Virgin uses an unrelated diversification strategy, entering various industries where it sees an opportunity to seize a competitive advantage. The company has leveraged its brand identity mostly successfully across its many enterprises. Related diversification involves entering different but closely related industries. For example, one could view Virgin's entry into the fledgling space flight industry as an example of diversification related to its travel businesses (airplanes today, space shuttles tomorrow?). Cost leadership is a business-level strategy that emphasizes efficient production so that products/services can be offered at lower cost than is offered by competitors}

UNIQLO offers clothing made with Heattech, a fabric that absorbs moisture and retains heat from the body. The clothing is very lightweight, while still keeping people warm. No other store carries Heattech fabric. Heattech clothes are associated with a __________ strategy for UNIQLO.

*differentiation {UNIQLO's differentiation strategy includes the company's unique Heattech fabric, which is not used by other retailers. This unique fabric makes customers highly value UNIQLO's Heattech products. By comparison, a focus strategy involves selling products to a very specific group of customers. An overall cost leadership strategy seeks to gain a competitive advantage by incurring lower costs than the competition, allowing a company to sell its goods or services at a lower price while still making a profit}

An operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as objectives). Although there are many specific types of operational plans, they can be broadly characterized as either single-use plans or standing plans. A program plan is an example of a ___________ , whereas a policy is an example of a ________ .

*single-use plan *standing plan {Single-use plans are used once, and then not used again. They include program plans and project plans. Think of a plan to implement a new compensation system (a program plan) or a plan to create a new software program (a project plan). Once the work is done—when the compensation system is active or the software is finalized—the plan will not be used again. Standing plans are ongoing. They include policies, standard operating procedures (SOPs), and rules and regulations. Think of them as guides for action. If your organization tells you that the company dress policy is business casual, then you are expected to wear business casual clothes today, tomorrow, and next week}

When referring to a SWOT analysis, the letter W stands for ________ , and it refers to factors that are _____ to the organization.

*weaknesses *internal {A SWOT analysis is a critical review of the organization and its environment that takes place during the strategy formulation process. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal to the organization, while opportunities and threats are external to the organization. Any information about finances or staff that comes from within the organization can be used to identify strengths and weaknesses}