Essentials of Planning Study Guide

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CHAPTER 4—ESSENTIALS OF PLANNING
MULTIPLE CHOICE 1. Planning is a. a complex and comprehensive process involving interrelated stages. b. organizing, implementing, and controlling. c. finding the best person for a job. d. communicating effectively with stakeholders. 2. Strategic plans are designed to a. implement operational plans. b. establish day-by-day procedures. c. shape the destiny of the firm. d. carrying out the functions of management. 3. The purpose of tactical planning is to a. establish a general purpose for the organization. b. translate strategic plans into specific goals and plans for organizational units. c. tell entry level workers what to do on a daily basis. d. compensate for past mistakes. 4. Branch manager Hector establishes recycling goals for his branch to support the company's strategic goal of being a good environmental partner. What is Hector doing? a. tactical planning b. strategic planning c. long-range planning d. vision formulation 5. A study of CEO failure indicated that 70 percent of the time their failures were attributed to a. poorly developed plans. b. poor execution, not poor planning. c. over-ambitious plans. d. lack of adequate cost controls. 6. A manager controls the plan when he or she a. creates a vision statement. b. creates a mission statement. c. establishes a budget to pay for the action plan. d. checks to see how well goals are being attained. 7. A contingency plan is implemented if the a. strategic plan is too modest. b. control processes do not work. c. original plan cannot be implemented. d. action plan succeeds. 8. Which one of the following is a component of true business strategy? a. a high level of operational effectiveness b. a set of activities common to other firms c. giving customers trade-offs d. having quite different activities to make similar products for different markets 9. A key difference between a vision and a mission is that

a. b. c. d.

the mission relates more to today's realities. a mission is set farther into the future. a vision does not deal with products or services. a vision deals more with operations.

10. A recommended procedure for formulating strategy is for top-level managers to a. form a small committee to do most of the work. b. gather inputs from large numbers of people. c. perform the task themselves during a retreat. d. base strategy on fixing customer complaints. 11. The purpose of the strategic inventory is to help the manager a. size up the environment accurately. b. determine how much inventory is on hand. c. involve workers at all levels in formulating strategy. d. develop operating plans. 12. Which one of the following strategies should be classified as a business-level strategy? a. strategic alliances b. diversification of goods and services c. product differentiation d. sticking to core competencies 13. The purpose of a SWOT analysis is to assess a. strengths, weaknesses, opportunities, and threats. b. strategy, weaknesses, options, and time. c. satisfactions, worst options, and trade-offs. d. successes, winners, and ominous threats. 14. Which one of the following is not one of the five competitive forces that business strategists are supposed to take into account? a. competition among business units within the firm b. the power of customers to affect pricing and reduce profit margins c. the threat of similar or substitute products d. the power of suppliers to influence the company's pricing 15. The firm's purpose and where it fits into the world is identified by the a. strategy. b. policy. c. mission. d. objective. 16. McDonald's states that it would like "to satisfy the world's appetite for good food, well-served, at a price people can afford." The preceding reflects McDonald's a. cost-leadership strategy. b. mission. c. annual goal statement. d. advertising campaign. 17. Krispy Kreme donuts, a well-known donut retailer (but much smaller than Dunkin Donuts), most likely emphasizes which one of the following business...
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