Management Chapter 8 Learn Smart

managers must establish a set of primary goals to which the organization is committed, which gave the organization ______

-a sense of purpose -a sense of direction

a major advantage of scenario planning is its ability to?

-anticipate the challenges of an uncertain future -educated managers to think strategically

an organization's mission statement is a?

-broad declaration of their overriding purpose -broad declaration of what it is seeking to achieve from its activities -statement of what is unique or important about its products

mission statements accomplish which of the following tasks?

-differentiate the company from its competitors -state the broad purpose of the organization -identify a company's products and customers

principal corporate-level strategies include?

-diversification -international expansion -concentration on a single industry -vertical integration

which of the following are steps in the planning process?

-formulation strategies to achieve the goals -implementing organizational strategy -determining the firm's mission and goals

successful business-level strategies are designed to result in ______

-higher prices -increased profits

disadvantages of diversification include what?

-losing control of the core business -reduction of value

the term hyper competition applies to industries that are characterized by ________ competition

-permanent -intense -ongoing

porter's 5 forces model is important as it focuses on major ______ an organization will encounter

-potential threats -competitive forces -threats -challenges

almost all managers participate in some form of planning in order to?

-predict future threats -predict future opportunities

while defining a business and answering questions about their company's products, managers can identify _______

-present customer needs -who their true competitors are -future customer needs

effective goals are?

-realistic -time-limited -challenging

the risks associated with licensing are that the company granting the license _______

-risks losing control of its secrets -has to give access to its technological know-how

types of standing plans include:

-rules -standard operating procedures (SOPs) -policies

the factors that michael proper identified include?

-the potential for entry into an industry -the level of rivalry among organizations in an industry -the power of large customers

which of the following is an advantage of a wholly owned foreign subsidiary?

-they allow companies to retain control of their technology -firms do not have to share profits -there is a potential for high returns

accuracy means that, in the planning process, managers need to make every attempt to?

-use all available information -collect all available information

in large organizations, planning usually takes place at 3 levels of management

1. business 2. corporate 3. functional

examples of corporate

CEO and top management team

strengths, weaknesses, opportunities, threats are components are?

a SWOT analysis

fayol believed that, if the situation changes, plans can be?

altered and changed

continuity (effective plan)

an ongoing process of building and refining previous plans

if a brewery decides to expand by buying the farms that produce the ingredients, this is an example of _________ integration

backward vertical

if a brewery decides to expand by buying the farms that produce the ingredients, this is an example of ______ integration

backward-vertical

flexibility (effective plan)

be able to alter or change plans

a differentiation strategy makes entry efficient for new competitors because the competitors have no identifiable ________ to attract current customers

brand name

a plan to gain a competitive advantage in a particular market or industry is a _______ strategy

business-level

organizations that successfully pursue a differentiation strategy may be able to?

charge a higher price

accuracy (effective plan)

collect and use all available information

reinvesting a company's profits to strengthen its competitive position in its current industry

concentration on a single industry

when a company reinvests its profits to strengthen its competitive position in its current industry, it is utilizing a ______ strategy

concentration on a single industry

more than one plan to achieve a goal will cause ______

confusion and disorder

fayol states that planning needs to be an ongoing process that builds and refines previous plans. This defines the quality of?

continuity

the downside of using the franchise strategy is that franchisers risk losing ________ over the way the franchise operates the franchise

control

a plan that indicated in which industries and national markets an organization intends to compete is a _________ strategy

corporate-level

the type of plan that defines an organization's mission and goals, overall strategy, and structure in the _________

corporate-level plan

when managers plan, they must forecast what may happen in the future to?

decide what to do in the present

when managers ask 1) who are our customers, 2) what customer needs do we satisfy, and 3) how do we satisfy customer needs, the manager is ______

defining the business

examples of functions

departments, such as manufacturing, marketing

distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service is an example of a ________ strategy

differentiation

________ refers to the strategy of expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services

diversification

expanding a company's business operation into a new industry

diversification

a time horizon is the intended ______ of a plan

duration

with exporting, there are ________ risks involved compared to opening a manufacturing plan abroad

few

continuity is modifying plans at all levels, so they?

fit together into one broad framework

companies that try to specialize in one segment of the market and undercut the prices of the other sellers in the market are using a _______ strategy

focused low-cost

in licensing, a company allows foreign organizations to take charge of both manufacturing and distribution, but _______ sells rights to use brand names that are trademarked

franchising

selling to foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is called?

franchising

the first step of the planning process is determining the organization's _______

goals and mission

unity (effective plan)

have only one guiding plan

the five forces model identified in the factors as major threats because they affect _________

how much profit competitors can expect to earn

selling products abroad

international expansion

a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business is a?

joint-venture

allowing a foreign organization to take charge of manufacturing and disturbing a product in its country or world region in return for a negotiated fee is?

licensing

when companies utilize a global strategy for international expansion, they will undertake ________ of their products to suit the specific needs of customers in different countries

little, if any, customization

typically corporate- and business-level goals and strategies require _________ plans, and functional-level goals and strategies require ________ plans

long- and intermediate-term; intermediate- and short term

the business-level plan details both _____

long-term divisional goal and division-level strategy

driving down the organization's costs below the costs of its rivals defines a _______ strategy

low-cost

when R&D managers focus on developing new products that can be manufactured less expensively, they are using a _______ strategy

low-cost

when manufacturing managers seek new ways to reduce production costs, managers are following a _______ strategy

low-cost

according to porter's theory, managers cannot simultaneously purse a _____ strategy

low-cost and differentiation

compared to organizations that pursue a low-cost or a differentiation strategy, organizations stick in the middle tend to have?

lower levels of performance

a broad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organization from its competitors is a?

mission-statement

when a company customizes its products and marketing to fit specific national conditions, it is following a ________ strategy

multidomestic

Managers pursue unrelated diversification when they establish divisions or buy companies in new industries that are _______ linked in any way to their current business or industries

not

single-use plans are designed to handle nonprogrammer decision-making in _________ situations

one-of-a-king and unusual

the means of identifying and selecting appropriate goals and courses of action and is one of the 4 principal tasks of management is _________

planning

business (level of management)

planning and strategy for their particular business division or unit

functional (level of management)

planning necessary to increase the efficiency and effectiveness of their particular department

one characteristic of a joint venture is that risk is?

reduced

entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses is _______

related diversification

corporate (level of management)

responsible for planning and strategy making for the organization as a whole

because the future is unpredictable, managers should engage in ______ planning

scenario

the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions is ________

scenario planning

managers may be better prepared for unexpected future events when they perform?

scenario-planning

henri fayol emphasized that managers must not be bound to a _________ plan

static

an agreement in which managers pool or share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture is a _______

strategic alliance

when a company agrees to enter into an agreement with a foreign company to share your organization's resources and know-how and also share the rewards and risks of starting a new venture, they are engaged in a _______

strategic alliance

the ability of the CEO and top managers to convert to their subordinates a compelling vision of what they want the organization to achieve is?

strategic-leadership

a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals is what?

strategy

the development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals is _______

strategy formulation

planning is a _______ process

strategy-making and goal-making

which of the following are identified when analyzing a company's internal environment as part of a SWOT analysis?

strengths and weaknesses

examples of business

the different divisions of the company that compete in distinct industries

when well executed by all functional areas, a functional-level plan allows _______ to achieve its corporate goals

the entire company

managers pursuing a focused differentiation strategy aim to make their company?

the most diversified company serving its market segment

synergy is created when?

two divisions cooperate

expanding a company's operations either backward or forward into an industry

vertical integration

the corporate-level strategy that is used when a company enters an industry that either supplies products to the company or purchases the company's products is?

vertical integration

when a soda pop company decides to expand by buying a bottling company, this is an example of forward ________

vertical integration

when expanding internationally, the highest level of foreign involvement, foreign investment, and degree of risk occurs with?

wholly owned foreign subsidiaries

production operations established in a foreign country independent of any local direct involvement is a?

wholly owned foreign subsidiary