Q&A Hero

Q: Which of the following functional areas has become an important strategic element for companies such as Prada? A) customer servicer B) cost control and accounting C) human resources D) information technology

Q: Two movie studios combining to form one larger studio is an example of which of the following? A) forward vertical integration B) horizontal integration C) backward vertical integration D) diversification

Q: In forward vertical integration, a company becomes its own ________, while in backward vertical integration, the company is its own ________. A) supplier; distributor B) supplier; customer C) distributor; monitor D) distributor; supplier

Q: A sneaker company creating its own stores where it sells only its own brand is an example of which of the following? A) forward vertical integration B) backward horizontal integration C) forward horizontal integration D) reverse vertical integration

Q: A salad dressing company that buys a large olive grove to produce olive oil is practicing which of the following? A) concentration B) forward vertical integration C) backward vertical integration D) horizontal integration

Q: General Mills expanding its line so that it sells several different types of Cheerios is an example of which of the following? A) concentration B) horizontal integration C) vertical integration D) diversification

Q: Growth strategies include ________. A) diversification, concentration, integration, stabilization B) vertical integration, horizontal integration, concentration, diversification C) vertical integration, horizontal integration, lateral integration, horizontal concentration D) integration, renewal, horizontal diversification, vertical diversification

Q: Which of the following makes up the three main types of corporate strategies? A) growth, vertical integration, horizontal integration B) growth, retrenchment, renewal C) renewal, retrenchment, diversification D) growth, stability, renewal

Q: A corporate strategy focuses primarily on ________. A) an organization's mission B) an organization's strengths C) an organization's weaknesses D) an organization's people

Q: The three different types of strategies that managers implement are ________. A) corporate, private, functional B) corporate, competitive, functional C) long-term, short-term, public D) competitive, noncompetitive, corporate

Q: Which of the following do managers NOT typically use to formulate strategies? A) finding ways to exploit the organization's strengths B) finding ways to protect the organization from external threats C) finding ways to rule out existing organizational opportunities D) finding ways to correct organizational weaknesses

Q: Once SWOT analysis is complete, managers ________ to address the issues that came up during the analysis. A) formulate strategies B) implement strategies C) evaluate strategies D) eliminate strategies

Q: SWOT analysis combines ________. A) a company's mission with its goals B) external and internal analyses C) a company's philosophy with its ethics D) profit with productivity

Q: SWOT analysis identifies and analyzes an organization's ________. A) strengths, weaknesses, opportunities, and threats B) strategy for competing in the market C) human resource assets D) long-term goals

Q: Together, an organization's resources and core competencies make up which of the following? A) core philosophy B) competitive weapons C) core assets D) fundamental beliefs

Q: An organization's capabilities identify ________. A) what the organization knows B) who the organization is C) assets that the organization can rely on D) what the organization can do

Q: An organization's resources identify ________. A) how the organization gets things done B) where the organization operates C) when the organization operates D) what the organization has

Q: Which term refers to an organization's capital, workers, and patents? A) resources B) capabilities C) abilities D) core competencies

Q: An internal analysis, the third step of the strategic management process helps identify ________. A) opportunities and threats B) resources and capabilities C) opportunities and possibilities D) values and philosophy

Q: An external analysis, the second step of the strategic management process, helps identify ________. A) the products that a company makes B) the long-term goals of a company C) a company's opportunities and threats D) a company's concern for its employees

Q: A mission statement does NOT include which of the following? A) the customers of a company B) major competitors C) why the company is in business and what it hopes to accomplish D) the company's basic beliefs

Q: A mission statement includes identification of an organization's ________. A) strengths and weaknesses B) purpose and basic philosophy C) assets and resources D) resources and strengths

Q: The first three steps of the strategic management process involve ________ strategies. A) planning B) implementing C) evaluating D) identifying

Q: The first step in the six-step strategic management process is to ________. A) analyze the organization's strengths and weaknesses B) identify the organization's mission C) identify feasible strategies D) analyze the opportunities the organization has

Q: Research indicates that organizations that don't use formal planning always outperform organizations that do use formal planning.

Q: Successful planning depends more on whether managers plan than on the quality of their planning.

Q: A major strength of formal planning is that it generally correlates with higher profits.

Q: A major strength of formal planning is that it gives an organization rigidity.

Q: A major strength of formal planning is that it reinforces past successes and incorporates them into the future.

Q: A criticism of formal planning is that it focuses too much on groundbreaking visions and deals with ideas that are too innovative to work.

Q: Formal planning can enhance creativity in an organization.

Q: A major argument against formal plans is that they can't replace intuition and creativity.

Q: An organization that fails to plan will find it hard to assess progress.

Q: Planning rarely improves teamwork and cooperation among employees.

Q: The four reasons that organizations plan are to establish coordinated effort, set standards, minimize waste, and reduce uncertainty and the impact of change.

Q: Informal planning typically works better in large organizations.

Q: A key function of planning is to create goals.

Q: Planning provides direction to managers and nonmanagers alike.

Q: At some point, all managers create formal plans.

Q: Informal plans are not recognized as true organizational plans and are rarely carried out by managers.

Q: All managers plan in some way, either formally or informally.

Q: Formal planning typically leads to which of the following? A) higher profits B) lower productivity C) higher sales, but lower profits D) tension between different management levels

Q: In studies in which formal planning did not lead to higher performance, ________ usually the culprit. A) unforeseen events in the environment were B) demanding employees were C) stubborn ownership was D) lack of communication was

Q: Studies of planning show that the key to successful planning is to make sure that the plans ________. A) cover every possible detail B) are high in quality and insight C) are exceedingly simple to follow D) are not shared with employees

Q: Studies of performance in organizations that plan have reached ________ with respect to the benefits of formal planning. A) somewhat negative conclusions B) no conclusion C) extremely negative conclusions D) generally positive conclusions

Q: Failing to discard successful plans from the past is likely to lead to ________. A) more success because conditions are unlikely to change in the future B) failure because conditions are likely to change in the future C) success because of the high quality of the plans D) failure because of the low quality of the plans

Q: One criticism of formal planning is that it focuses on how to beat the competition rather than how to ________. A) have cordial relationships with the competition B) focus on new opportunities C) balance the organization's budget D) cooperate with the competition

Q: Which of the following is a frequently cited criticism of formal planning? A) Plans lock organizations into rigid goals and timetables. B) Plans take too long to create. C) Plans create resentment within different levels of the organization. D) Formal planning works well only for smaller companies.

Q: Managers who fail to plan may ________. A) take advantage of change B) stimulate change C) be positively affected by change D) be adversely affected by change

Q: One effect of planning on managers is that it forces them to ________. A) fear change B) anticipate and consider the effect of change C) work to prevent change D) ignore any change that doesn't directly affect them

Q: Organizations that don't formally plan may be more likely to have ________. A) corrupt managers B) legal problems C) multiple departments performing the same task D) a single department carrying out all company functions

Q: Planning gives organizations a way to deal with change that ________. A) eliminates all uncertainty B) reduces uncertainty C) reduces certainty D) increases ambiguity

Q: Planning gives organizations direction that primarily helps them ________. A) improve teamwork and coordinate activities B) improve their image in the business community C) improve morale of middle managers D) improve morale of all employees

Q: Which of the following is NOT a reason for managers to plan? A) to give direction to an organization B) to deal with change C) to establish goals D) to establish responsibility for mistakes

Q: In formal planning, ________. A) specific goals covering a period of years are defined B) to maximize flexibility, specific goals are never spelled out C) very broad general goals are developed D) goals may be written or unwritten

Q: Informal planning is ________. A) always performed at the lowest organizational level B) general and usually lacks continuity C) performed exclusively by middle managers D) more specific than formal planning

Q: In informal planning, goals are usually ________ shared with others in the organization. A) written, but little is B) unwritten, and little is C) written, and much is D) unwritten, but much is

Q: Planning is concerned with ________. A) both ends and means B) ends only C) means only D) neither ends nor means

Q: Which of the following is NOT a function of planning? A) defining goals B) identifying a strategy for attaining goals C) settling disputes between employees D) coordinating organizational activities

Q:

Q:

Q:

Q:

Q:

Q:

Q:

Q:

Q: In general, upper-level managers focus on tactical or operational planning

Q: Directional plans leave no room for interpretation.

Q: A six-month plan qualifies as a short-term plan.

Q: Long-term plans used to refer to plans that covered a period of over three years, but now it refers to any time period over one year.

Q: Goals typically should be reserved for managers only. Goals should not be shared with subordinates.

Q: The key to MBO, or management by objectives, is that managers and subordinates mutually agree on goals.

Q: Traditional goal setting requires top managers to set goals that are carried out by the organizational levels below.

Q: Goals are documents that outline how plans are to be carried out.

Q:

Q: The commitment concept states that plans should ________.A) always stake out a longer time period than is estimatedB) always stake out a shorter time period than is estimatedC) stake out a time period that is neither too long nor too shortD) not include time periods because they are too confining

Q:

Q:

Q: