MGMT EXAM 2
Those who manage the work on the front lines are most involved with what component of the planning process? strategic management operational planning producing a code of ethics writing a mission statement
operational planning
Rodrigo's Rodízio is a Brazilian-style steakhouse that serves traditional beef, pork, and chicken dishes cooked on rotating skewers. In a recent SWOT analysis, Rodrigo identified the recently trending Keto diet, which recommends increased protein intake, as an example of a(n) ________ for Rodrigo's Rodízio. weakness strength threat opportunity
opportunity
Which aspect of the VRIO framework examines whether a firm has the control systems, policies, and financing needed to compete? organization imitability value advantage
organization
The managerial tools for ________ include a SWOT analysis, forecasting, and VRIO analysis. corrective actions organizational assessment grand strategies creating shared value
organizational assessment
To assess imitability, managers must consider whether the firm has the structure and culture to go forward. several competing firms already exist. the resource puts the firm in a competitive position. other firms can get into the market without much expense.
other firms can get into the market without much expense.
Jacinta is a supervisor at a customer service call center. She set a ________ objective for her subordinates to decrease their average call times by 12%. behavioral performance tactical learning
performance
A forecast is a plan for implementing strategic processes. projection of the future. glimpse of what just happened. strategic execution and implementation.
projection of the future.
According to Porter, the cost-focus and focused-differentiation strategies have what in common? Both focus on cutting costs. Both focus on narrow markets. Both focus on wide markets. Both focus on corporate-level strategy.
Both focus on narrow markets.
The planning steps of the planning/control cycle are (1) make the plan and (2) carry out the plan. (1) make the plan and (2) set it aside for a period of time. (1) research planning and (2) receive feedback. (1) review previous plans and (2) evaluate plans.
(1) make the plan and (2) carry out the plan.
________ is another term for a defensive strategy. A fixed plan A retrenchment strategy A growth strategy The aggressive approach
A retrenchment strategy
Kumail initiated MBO in his company 12 months ago. Now, Kumail about to conduct his first-ever performance appraisals with his employees. Which of the following statements would you offer to Kumail as advice? Try to address results, as well as emotional issues. Be sure to reward employees who meet their objectives. Remind the employees what the company stands for. Review whether the objectives had set deadlines.
Be sure to reward employees who meet their objectives.
________ is the process by which a company compares its performance with that of high-performing organizations. Forecasting Contingency planning Benchmarking Trend analysis
Benchmarking
Which of the following is a tactical goal? This company has a policy of conducting a background and credit check on all job applicants. Within two years, we will enter into a strategic alliance with a company that is able to effectively market and sell our products in China, India, and other emerging economies. By the end of this fiscal year, we will achieve a 10 percent cost reduction in our office expenses. Smoking on the factory floor is strictly prohibited; anyone caught smoking in company facilities will be disciplined immediately.
By the end of this fiscal year, we will achieve a 10 percent cost reduction in our office expenses.
Keiko wants to develop her proactive learning skills in order to increase her career readiness. What would you advise her to do? Plan a trip abroad. Write a letter to the editor about potholes in her town's streets. Contribute to a LinkedIn conversation about trends in her industry. Listen to a podcast about the job market for college graduates.
Contribute to a LinkedIn conversation about trends in her industry.
In the Management in Action case, assume Amtrak's CEO makes changes to the company's operations and then reviews the resulting revenue. What step in the planning/control cycle would this represent? Make the plan. Control the direction by taking corrective action. Control the direction by comparing results with the plan. Carry out the plan.
Control the direction by comparing results with the plan.
Omar runs a popular sports bar and grill that is soon to implement a new point-of-sale software. Which of these represents a learning objective that Omar might set? Ensure all employees complete a virtual training on the new software. Decrease food waste by 15%. Provide all customers with a follow-up survey. Increase the number of tables who order appetizers.
Ensure all employees complete a virtual training on the new software.
You were recently hired as the CEO of a major corporation. You understand that the previous CEO and much of his senior leadership were fired. After doing some research, however, you see that the previous CEO focused on how the company's strategy will happen and developed a robust operating plan. Based on what you know about the three core processes of business, what could have been a reason he was ousted? He didn't outline the major activities, such as marketing, production, etc., that the company needed to be engaged in. He didn't link the right people to the strategy. He didn't develop a strategic plan. He didn't properly evaluate the company's technological capabilities and resources.
He didn't link the right people to the strategy.
Which core business process outlines what needs to be done and who is going to do it? product people corporate strategy operations
corporate strategy
Which of these is an example of a means-end chain? Implementing a cleaning schedule to ensure all parts of the restaurant are deep cleaned each month is a means to earning the highest cleanliness rating during the next health inspection. Focusing on new product development is a means to ignoring customer satisfaction concerns. Frequently missing deadlines is a means to accountable leadership. Monthly changes in the strategic plan are a means to employee frustration and confusion.
Implementing a cleaning schedule to ensure all parts of the restaurant are deep cleaned each month is a means to earning the highest cleanliness rating during the next health inspection.
Which of the following satisfies the SMART goals criteria? This company will greatly improve its performance next year. Within the next six months, I will grow my sole proprietorship into a corporation that is larger than Google and Amazon combined. As a talented florist, I will sell $100,000 in flowers. In the next quarter, our Tucson sales agent will increase sales by 10 percent.
In the next quarter, our Tucson sales agent will increase sales by 10 percent.
Which of these represents the company's mission statement? LinkedIn: To connect the world's professionals to make the more productive and successful. Ferrari: To make the world dream. Amazon: To be Earth's most customer-centric company. Airbnb: To tap into the universal human yearning to belong.
LinkedIn: To connect the world's professionals to make the more productive and successful.
In which of these examples is the competency of networking supporting planning? Peyton is adopting a strategy of making social media posts in advance and then scheduling them to appear at high-engagement times. Daniella is completing extra workshops to make her a better customer service manager. Mohammed intends to decrease labor costs at his firm by 15% over the next six months. Naheem's company is establishing a new contract with a vendor that Naheem met during a trade show.
Naheem's company is establishing a new contract with a vendor that Naheem met during a trade show.
Emma, a nurse at a long-term care facility, recently submitted her goals to the director of nursing. One of Emma's goals is "to improve resident satisfaction by responding to every resident's call, page, or request within 3 minutes." Is this a SMART goal? No, SMART goals must be attainable. Yes, SMART goals should be specific. Yes, SMART goals should have a deadline. No, SMART goals must be measurable.
No, SMART goals must be attainable.
Tomio has been working as an assistant database analyst for three months. During a recent conversation with his supervisor, Tomio explained his goal "to improve his computing skills by the end of the year." Is this a SMART goal? No, SMART goals must be specific and measurable. No, SMART goals must have a target date. Yes, SMART goals should be results-oriented. Yes, SMART goals should set a timeline for being achieved.
No, SMART goals must be specific and measurable.
Mark Zuckerberg stated that Facebook's early idea was to "Move fast and break things." He set that as his strategy for the company. Was he using the concept of strategy correctly? Yes, because mission statements are a part of strategic plans and this was a clear, concise mission. Yes, because he involved managers from all parts of the organization. Yes, because it provided a vision for this new endeavor for others to share. No, because a strategy sets a long-term goal and direction for an organization.
No, because a strategy sets a long-term goal and direction for an organization.
Breyona keeps a close eye on her company's internal and external environments to identify better ways of doing business and to discover possible opportunities for new products. In which activity is Breyona engaged? VRIO framework SWOT analysis strategic control management by observation
SWOT analysis
________ is the process wherein alternative possible plans are created and then the one that best fits the situation is applied. Scenario analysis Organizational assessment Trend analysis Goal-setting
Scenario analysis
________ requires a manager to visit an earlier step in the strategic-management process in order to revise actions if necessary. The organizational mission The feedback loop The current reality assessment Strategy formulation
The feedback loop
Jack Welch recommends analyzing competitors' strengths and weaknesses to answer the question: What's around the corner? What does the playing field look like now? What have you been up to? What has the competition been up to?
What does the playing field look like now?
For the Management in Action case, which of the following would be a SMART goal for Amtrak? To better the quality of service in the next three years. To grow revenue by 5% in the next year. To become profitable. To change revenue in the next year.
To grow revenue by 5% in the next year.
Based on the Management in Action case and what you know about VRIO, which of the following does La Croix have? an organization that is prepared to leverage its resourcesIncorrect a valuable product a product that is only controlled by a few firms a product that is difficult to imitate
a product that is difficult to imitate
Managers can use the VRIO framework to analyze a firm's competitive potential. achieve organizational goals. provide corrective feedback. conduct strategic planning.
analyze a firm's competitive potential.
Zene is a chef and owner of a popular restaurant. Zene frequently visits competing restaurants to observe how they are doing things. He told one of his managers, "I eat dinner at a lot of restaurants because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item, like ours but better." In which activity is Zene engaging? TQM environmental planning assessing current reality management by observation
assessing current reality
Kade ensures the success of his hair salon by frequently purchasing services at other popular or new salons in his city. Kade uses the information he gains through ________ to ensure his salon is up-to-date and profitable. contingency planning scenario analysis forecasting benchmarking
benchmarking
This year's sales at Yours Truly Consignment have been strong, and next year's sales are also projected to be good. Even so, Yours Truly managers should conduct ________ so they are prepared in the case that sales drop unexpectedly. contingency planning vision planning trend analysis background planning
contingency planning
Prior to opening his new salon, Symon is deciding what types of services to offer, the anticipated profits and expenses, the tasks of various employees, and how those jobs will be handled. Symon is creating a business model. risk statement. operating plan. strategic map.
business model.
To prepare for an upcoming interview, Loic has reviewed his résumé, prepared his questions, and thought through answers for the most common interview questions. He feels well prepared. At the interview, Loic is asked to respond to a scenario question in which a problem is presented. If the interviewer prioritizes critical thinking, she is probably trying to determine if Loic can consider alternative solutions and remain open-minded. can make quick decisions. demonstrate strategic planning experience. understands the inner workings of the company.
can consider alternative solutions and remain open-minded.
MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO ________ through the organization. changing significantly cascading down becoming more generalized moving upward
cascading down
In the BCG matrix, Kroger would be in the category of ________ due to being the largest retailer in the relatively stable grocery market. question marks cash cows dogs stars
cash cows
Snow Assist sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its competitors, which offer a larger line of more expensive products and focus on broader markets. Snow Assist is pursuing a ________ strategy. differentiation cost-leadership narrow cost-focus
cost-focus
Based on what you read in the Management in Action case, assume that La Croix tries to reduce its prices below competitors like PepsiCo and Coca-Cola, but targets a narrow market. What type of strategy would this be? differentiation focused-differentiation cost-focused cost-leadership
cost-focused
When organizations endeavor (1) to keep their costs (and hence the prices of their products or services) below those of competitors and (2) to target a wide market, they are utilizing a ________ strategy. differentiation cost-leadership cost-focus focused-differentiation
cost-leadership
To maximize profitability and competitiveness, firms must sacrifice functional-level strategy for the sake of corporate-level. diversify their investment portfolios. create alignment across all levels of strategy. create shared value via greenwashing.
create alignment across all levels of strategy.
A local gymnastics studio offers dance, tumbling, trampolines, and competitive cheer training for kids of all ages. To recruit students for these lessons, the studio also hosts birthday parties, afterschool care, and swim lessons. These offerings interact to diversify the corporate-level strategy. mount an effective defensive strategy. choose which strategy not to follow. create fit among the activities.
create fit among the activities.
The second step in the strategic-management process is a(n) ________, where managers look at where the organization stands, and then determine what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission. company synergy assessment grand strategy current reality assessment organizational vision statement
current reality assessment
Which important aspect of goal setting helps you keep an eye on the big picture and is useful for giving yourself feedback? deadlines tactical planning learning objectives behavioral objectives
deadlines
When the university's provost sets a major student retention goal, the cascading-goals process would occur if the professors change textbooks. food court in the student union extended its hours. student government association elected a new president. deans set retention objectives for their colleges and schools
deans set retention objectives for their colleges and schools
A company that gradually phases out product lines or liquidates its inventory is pursuing a ________ strategy. defensive growth diversification stability
defensive
Over the course of 40 years, Bradley grew his company to six package shipping stores. With his retirement approaching and increased competition from national brands, he decided to reduce the number of locations to two. Bradley's closing of four locations represents a defensive strategy. merger approach. fixed plan. growth strategy.
defensive strategy.
Terin, the chief human resources officer for a major financial services company, has met with each of her employees to set their objectives. Now, Terin expects the employees to develop action plans. be less motivated. adopt new media literacy skills. set deadlines that emphasize immediate results.
develop action plans.
In the Management in Action case, if Congress forces Amtrak to become a nonprofit, the organization will have to go back to which step in planning process? operational planning strategic planning execution developing a mission statement
developing a mission statement
The top managers of One World Enterprises are meeting for the week to look at the long-term company goals and overall direction of the organization. The CEO has expressed his concern over the economy and has told his managers to look closely at the environment outside the organization before making decisions and to be future oriented. In this meeting, top managers of One World are producing their code of ethics. developing their action plan. doing strategic planning. writing a mission statement.
doing strategic planning.
How often should a company revise its strategic plan? every 2 to 5 years every 100 days every 1 to 2 years every 1 to 52 weeks
every 1 to 2 years
In one survey, CEOs from around the world reported that their number one challenge was finding qualified employees. organizational diversity. stimulating innovation. excellence in execution.
excellence in execution.
Farrah's Furniture sells modern desks, chairs, and other office furniture mainly to businesses and institutions. An example of Farrah's pursuing a growth strategy would be offering their desks in additional colors. expanding to sell home furnishings. replacing the sales manager after she retires. selling the business to a larger competitor.
expanding to sell home furnishings.
Duracell, a company well-known for manufacturing alkaline batteries, derives its strategic position from which source? broad needs, many customers broad needs, few customers few needs, many customers few competitors, broad market
few needs, many customers
Bahir's ________ is to sell 80% of his old merchandise prior to ordering more inventory from the wholesaler. vision mission statement business plan goal
goal
Growth, stability, and defensive strategies are common ________ strategies. grand stabilization cost-leadership leadership
grand
In 2003, Myspace launched a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music, and videos. Myspace was the largest social networking site in the world, from 2005 to 2009. Recently, it was purchased by Specific Media, an online platform where music fans can interact with their favorite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. Which of the following describes Specific Media's strategy? growth stability diversification defensive
growth
Which option below would be a winning move for Rolle's Bakery? analyzing the strengths and weaknesses of the three competing bakeries in town benchmarking its rolls against those sold by the fanciest restaurant in town cutting costs by only opening the bakery three days each week hiring a classically trained pastry chef to expand the business into desserts and custom cakes
hiring a classically trained pastry chef to expand the business into desserts and custom cakes
Usually managers determine ________ by choosing from a growth strategy, stability strategy, or defensive strategy. whether their customers have few or broad needs the organization's core values when the organization's functional-level strategy will be enacted how the organization's mission will be achieved
how the organization's mission will be achieved
Fine Line is a popular tattoo shop that provides custom artwork and permanent tattoos. Recently, Fine Line pursued a(n) ________ strategy when it developed a smartphone app that uses AR technology to let customers preview what their tattoo will look like before getting it. retrenchment innovation stability defensive
innovation
Research on MBO shows that participative goal setting is just as effective as when managers set the goals. the most effective way to increase profitability. to be avoided because employees don't want to participate. unable to be carried out ethically.
just as effective as when managers set the goals.
When managers apply the continuous feedback loop known as the planning/control cycle, which management functions are implied? triple bottom line and learning leading and organizing learning and motivating organizing and goal setting
leading and organizing
A(n) ________ links low-level goals, such as providing free estimates within 24 hours, to higher-level goals, such as decreasing the cost of customer acquisition. value chain business model means-end chain chain of command
means-end chain
Cyril, who manages an ATV dealership, is determined to implement management by objectives to help decrease costs. control his workers. motivate his employees. increase customer satisfaction.
motivate his employees.
The managers of Kai's Catering want to increase the number of events booked by 20%. To accomplish this, a(n) ________ was established to include clear weekly targets for number of deposits received. means-end chain operating plan scenario analysis strategic plan
operating plan
Aliya is a line supervisor in a denim apparel factory. Aliya has set a(n) ________ to reduce the time she spends training new workers. front-line goal vision statement operational goal supervisory objective
operational goal
Goals that generally span 12 months and are connected to long-term goals are known as ________ or ________. operational goals; tactical goals action goals; short-term priorities short-term goals; action goals first-line priorities; tactical plans
operational goals; tactical goals
After closing town hall for several weeks due to the COVID-19 pandemic, the mayor of a small town created a ________ to outline how the city employees would meet their job performance goals while limiting risk of spreading the virus. business plan strategy plan business model
plan
As factory supervisor, Miguel wants all 150 workers to complete a required training before the end of the fiscal year which is one month away. He sets a goal of training 15 workers each day. What is Miguel doing? planning controlling delegating synergizing
planning
CorrectTalk is a company that provides security and communications technology to jails and prisons. Over the last several months, CorrectTalk's profits have dropped and the company seems to be moving in the wrong direction. The owner recognizes that he wrongly assumed that his clients would need more technology and that his installation teams frequently have internal conflict. These issues are a result of poor planning. no focus on JIT. little company diversity. no code of ethics.
poor planning.
If Philips, a company well-known for LED lights, debuted a smart tablet it would likely fall in which quadrant of the BCG matrix? question marks cash cows dogs stars
question marks
Food Well Inc. is an organization that operates several companies that market bulk food products, restaurant equipment, and disposable dishes. Recently, Food Well acquired a restaurant consulting division. Food Well is pursuing a(n) ________ strategy. unrelated diversification related diversification cash cow focused-differentiation
related diversification
Managers can use an operating plan to show how goals are connected across an organization. determine the organization's goals over the next five years. segment strategic goals into short-term targets. describe what an organization wants to become.
segment strategic goals into short-term targets.
In a SWOT analysis, organizational strengths are MBO skills that should be emphasized. skills and capabilities that give a company advantages in executing its strategies. external opportunities that a company can take advantage of. environmental factors that the organization may exploit for competitive advantage.
skills and capabilities that give a company advantages in executing its strategies.
Managers can use an action plan to develop a sustainable competitive advantage. combine low-level goals into a higher-level goal. show how goals are connected across an organization. specify the steps that will be used to reach a goal.
specify the steps that will be used to reach a goal.
In the Management in Action case, La Croix seems to be stagnant as competitors outperform it. What type of corporate strategy does this represent? innovation stability defensive growth
stability
Aanu owns several computer repair shops across northeastern Wisconsin, and she has set a goal for her company of increasing market share in all locations over the next three years. Aanu has set a tactical goal. strategic goal. vision statement. business plan.
strategic goal.
Which sequence of goals is consistent with "cascading" goals that begin at the top of the organization? departmental goals > individual goals > strategic goals > divisional goals divisional goals > strategic goals > individual goals > departmental goals individual goals > department goals > divisional goals > strategic goals strategic goals > divisional goals > department goals > individual goals
strategic goals > divisional goals > department goals > individual goals
You are the sales manager for a multinational solar energy company. Recently, your company distributed its ________ that outlines its long-term goals and directions, including "Reduce energy consumption in our offices by 20 percent," "Grow our market share in China from 3 percent to 10 percent," "Enter a strategic alliance with a partner in New Zealand," and "Equip all sales representatives with an app that allows them to provide an immediate quote when meeting with customers." values statement vision statement action plan strategic plan
strategic plan
After establishing values statement, what is the next step in planning? strategic planning stating the vision tactical planning operational planning
strategic planning
The move by Philip Morris International (PMI), the industry-leading tobacco company, to invest billions in creating a smoke-free future is an example of current reality assessment. strategy innovation. vision. operational goals.
strategy innovation.
Many businesses use Find-a-Hand, a professional staffing agency because of the employees' expertise in recruiting and selecting workers that match the needs of their business clients. In a SWOT analysis, the employees' high levels of knowledge are an example of the Find-a-Hand's threats. opportunities. strengths. weaknesses.
strengths.
Executives of a national insurance underwriting firm has informed its district managers of a new goal to improve customer retention. The district managers will set goals to be achieved over the next 6 to 24 months as part of ________ planning. middle-level working-level tactical operational
tactical
Picnix, a meal-kit company, has set a strategic goal of decreasing corporate costs by 12% over the next 4 years. Joseph manages one of Picnix's distribution centers. Installing a just-in-time inventory system and partnering with a new produce wholesaler are ________ that Joseph can implement over the next 12 months to contribute to the strategic goal. long-term goals action plans vision statements tactical goals
tactical goals
In the second core process, managers should address questions such as "Who is the competition?" and "Are the short term and long term balanced?" to better understand the "how" of execution. who is going to get it done. the jobs of the future. the path for people to follow.
the "how" of execution.
Strategic implementation is thought to be the first step in organizational assessment. the greatest managerial challenge in strategic management. about developing a strong diversity plan. the most important step in the strategic management process.
the greatest managerial challenge in strategic management.
Based on the Management in Action case and what you know about SWOT analysis, the entrance of PepsiCo and Coca-Cola into the sparkling water market presents La Croix with an organizational weakness. threat. strength. opportunity.
threat
The owners of Blazing Pitchforks, a family-owned farm supply outlet in a rural community, are concerned over the news that a large retailer specializing in farm and garden products is building a new store on the other side of town. According to a SWOT analysis, this new retailer is an organizational ________ to Blazing Pitchforks. opportunity weakness threat strength
threat
The owners of Blazing Pitchforks, a family-owned farm supply outlet in a rural community, are concerned over the news that a large retailer specializing in farm and garden products is building a new store on the other side of town. According to a SWOT analysis, this new retailer is an organizational ________ to Blazing Pitchforks. strength threat weakness opportunity
threat
With the holiday season approaching, Denelle reviews holiday sales from the last five years to determine how much inventory to purchase and how many employees to schedule during peak sales times. Denelle is conducting a vision statement. trend analysis. business plan. strategic goal.
trend analysis.
ProFast Technologies makes and sells only one product, a high-quality server for secure cloud storage. ProFast was recently approached by Digital Territory, a large data warehouse that rents server space to commercial customers, about purchasing their company. Digital Territory is engaging in vertical integration. related diversification. differentiation. unrelated diversification.
vertical integration.
In its ________, Caterpillar, a Fortune 100 construction equipment manufacturer, specifies that it wants "a world in which all people's basic needs—such as shelter, clean water, sanitation, food, and reliable power—are fulfilled in an environmentally sustainable way and a company that improves the quality of the environment and the communities where we live and work." values statement strategic plan vision statement action plan
vision statement
Before moving forward with its strategic management, organizations should develop vision statements that describe the organization's purpose or reason for being and its strategic intent. what the company will market and its business plan. what the company wants to become and where it wants to go strategically. the organization's purpose or reason for being.
what the company wants to become and where it wants to go strategically.
A mission statement expresses ________, and a vision statement expresses ________. what the organization wants to become; what the organization stands for what the organization stands for; how employees will be served by the organization why the organization exists; what the organization wants to become which goods and services the organization will produce; which charitable organizations it will support
why the organization exists; what the organization wants to become