Exam 1 Review

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Mid-Term Exam – Review Questions
1) All of these are pitfalls an organization should avoid in strategic planning EXCEPT (Ch. 1) Some pitfalls to watch for and avoid in strategic planning are these:  Using strategic planning to gain control over decisions and resources  Doing strategic planning only to satisfy accreditation or regulatory requeriments  Too hastily moving from mission development to strategy formulation  Failing to communicate the plan to employees, who continue working in the dark  Top managers making many intuitive decisions that conflict with the formal plan  Top managers not actively supporting the strategic-planning process  Failing to use plans as a standard for measuring performance  Delegating planning to a “planner” rather than involving all managers  Failing to involve key employees in all phases of planning  Failing to create a collaborative climate supportive of change  Viewing planning as unnecessary or unimportant

 Becoming so engrossed in current problems that insufficient or no planning is done  Being so formal in planning that flexibility and creativity are stifled 2) The strategic-management process represents a(n)

logical , systematic , and objective approach for determining an enterprise's future direction. 3) Strategic Management is used to refer to strategic formulation, implementation and evaluation, with strategic planing referring only to strategic formulation.

4) Which statement best describes intuition? Ch.1 Pag. 7 or 8 It should be coupled with analysis in decision-making.
5) The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as empowerment. 6) The first step in strategic planning is generally

developing a vision statement.
7) According to McGinnis, a mission statement should be all of the following EXCEPT Ch.2 Pag.51 According to Vern McGinnis, a mission statement should:
 Define what the organization is and what the organization aspires to be,  Be limited enough to exclude some ventures and broad enough to allow for creative growth,  Distinguish a given organization from all others,

 Serve as a framework for evaluating both current and prospective activities, and  Be stated in terms sufficiently clear to be widely understood throughout the organization.

8) Which group would be classified as stakeholders? Ch.2 Pag.50 Stakeholders include employees, managers, stockholders, boards of directors, customers, suppliers, distributors, creditors, governments (local, state, federal, and foreign), unions, competitors, environmental groups, and the general public. 9) What is the best time to develop a mission statement? Ch. 2 Pag.48 when the firm is successful

10) Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage? Ch. 2 Page 52 Self-concept—
11) A business' mission is the foundation for all of the following EXCEPT Ch.2 Pag. 46 a) Priorities,
b) Strategies,
c) Plans,
d) Employee wage rates.
e) And work assignments.
12) All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT Ch.3 Pag. 69 or 71 Federal, state, local, and foreign governments are major regulators, deregulators, subsidizers, employers, and customers of organizations. Political, governmental, and legal factors, therefore, can represent key opportunities or threats for both small and large organizations. Some Political, Governmental, and Legal Variables:

 Government regulations or deregulations
 Changes in tax laws
 Special tariffs
 Political action committees
 Voter participation rates
 Number, severity, and location of government
 Number of patents
 Changes in patent laws
 Environmental protection laws
 Level of defense expenditures
 Legislation on equal employment
 Level...
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