Q&A Hero

Q: According to Kast and Rosenzweig, which of the following is NOT one of the major dimensions of a plan? A) time B) scope C) level D) people E) repetitiveness

Q: A specific action proposed to help the organization achieve its objectives is known as a(n) ________. A) objective B) goal C) plan D) stepping stone E) activity

Q: The first step in designing a PERT network is to identify the critical path.

Q: The PERT network contains two primary elements: time and activities.

Q: The Gantt chart is a scheduling device composed of a bar chart with time on the horizontal axis and the resource to be scheduled on the vertical axis.

Q: Scheduling is an integral part of every organizational plan.

Q: The sales forecasting method is the most complex method available to managers.

Q: A product life cycle refers to the five stages through which most products and services pass, including introduction, growth, maturity, progress, and decline.

Q: The Delphi method of forecasting is more formal than the jury of executive opinion method and it also gathers, evaluates, and summarizes expert opinions as the basis for a forecast.

Q: The jury of executive opinion of forecasting predicts future sales levels primarily by asking appropriate salespeople to give their opinions on what will happen to sales in the future.

Q: They key forecast for organizations is the sales forecast because it serves as the fundamental guideline for planning.

Q: Forecasting is the development of proposed action to furnish sufficient and appropriate organizational resources for reaching established organizational objectives.

Q: The next step in the human resource planning process, after taking a human resource inventory, is determining net human resource requirements.

Q: Determining at what rate employees are being lost to other organizations is part of human resource planning.

Q: Human resource planning is another area of concern for output planners.

Q: Site selection is part of input planning.

Q: A plan is likely to fail if managers at different levels in the organization are not properly engaged in or contributing to planning activities.

Q: A budget is a single-use financial plan that covers a specified length of time.

Q: A rule is a standing plan that designates specific required action.

Q: A policy is a single-use plan that furnishes broad operating guidelines.

Q: Single-use plans can be subdivided into policies, procedures, and rules.

Q: Standing plans are plans used over and over again because they focus on organizational situations that occur frequently.

Q: The scope dimension of a plan is the level of the organization at which the plan is aimed.

Q: The repetitiveness dimension of a plan is the extent to which the plan is used over and over again.

Q: Repetitiveness, time, scope, and length are the four dimensions of plans.

Q: A plan is an unspecific action proposed to help the organization achieve its objectives.

Q: Strategic management is the process of ensuring an organization possesses and benefits from the use of an appropriate organizational strategy.

Q: Strategy is the end result of strategic planning.

Q: The commitment principle is a management guideline that advises managers to totally commit themselves to strategic planning.

Q: What is competitive dynamics? Briefly describe the factors that influence a firm's action or reaction?

Q: Compare and contrast strategic and tactical planning.

Q: What is tactical planning?

Q: What is strategic control?

Q: What skills are required for the successful implementation of strategy?

Q: Understanding the forces that determine competitiveness within an industry should help managers develop strategies to make their companies more competitive within the industry. Explain the three generic strategies developed by Porter to illustrate the kind of strategies managers might develop to make their organizations more competitive.

Q: What is the BCG Growth-Share Matrix? Explain what stars, question marks, cash cows, and dogs are. According to the BCG Growth-Share Matrix, what should managers do with each of these?

Q: What are the main strategy formulation tools of strategic management?

Q: Briefly discuss the strategic management process.

Q: Define strategic planning. Explain the commitment principle in strategic planning.

Q: A firm's ability to undertake an action is referred to as ________. A) differentiation B) competitor motivation C) competitor capability D) competitor awareness E) strategic ability

Q: ________ refers to the incentives that an organization has to take action. A) Cost leadership B) Tactical planning C) Competitor capability D) Competitor motivation E) Competitor awareness

Q: ________ refers to how mindful a company is of its competitor's actions. A) Strategic control B) Competitor motivation C) Competitor awareness D) Competitor capability E) Strategic implementation

Q: ________ refers to the process by which firms undertake strategic and tactical actions and how competitors respond to these actions. A) Strategic control B) Environmental analysis C) Competitive dynamics D) Strategy implementation E) SWOT analysis

Q: Which of the following sentences about the differences between strategic planning and tactical planning is true? A) Tactical plans cover a relatively long period of time whereas strategic plans cover a relatively short period of time. B) Strategic planning emphasizes analyzing the future and tactical planning emphasizes analyzing the everyday functioning of the organization. C) Tactical plans are generally less detailed than strategic plans. D) Facts on which to base tactical plans are usually more difficult to gather than are facts on which to base strategic plans. E) Tactical plans are usually developed by upper-level management and strategic plans by lower-level management.

Q: Mary has just formulated the annual budget for her department. She has outlined how the funds must be allocated and spent over the next one year. This would most likely be categorized as ________. A) strategic planning B) intrinsic planning C) intermediate planning D) tactical planning E) strategic control

Q: Which of the following is true about tactical planning? A) Tactical planning is long-range planning that emphasizes the current operations of various parts of the organization. B) In doing tactical planning, managers consider the organization as a total unit and ask themselves what must be done in the long term to attain organizational goals. C) The most successful managers tend to be those who take a comprehensive approach to strategic planning and are careful not to cut corners during the process. D) Tactical plans are usually developed in the areas of production, marketing, personnel, finance, and plant facilities. E) Tactical plans are usually developed by upper-level management.

Q: ________ is short-range planning that emphasizes the current operations of various parts of the organization. A) Operational planning B) Intermediate planning C) Strategic planning D) Strategic control E) Tactical planning

Q: The last step of the strategic management process, consisting of monitoring and evaluating the strategic management process as a whole, is ________. A) strategy implementation B) strategy formulation C) strategic control D) environmental analysis E) strategic action

Q: ________ is the ability to create throughout the organization a network of people who can help solve implementation problems as they occur. A) Organizing skill B) Interacting skill C) Monitoring skill D) Allocating skill E) Tactical skill

Q: Which of the following is the ability to use information to determine whether a problem has arisen that is blocking implementation? A) allocating skill B) interacting skill C) monitoring skill D) organizing skill E) tactical skill

Q: ________ is the ability to provide the organizational resources necessary to implement a strategy. A) Organizing skill B) Interacting skill C) Monitoring skill D) Allocating skill E) Tactical skill

Q: Which of the following is the ability to manage people during implementation? A) allocating skill B) interacting skill C) monitoring skill D) organizing skill E) tactical skill

Q: ________, the fourth step of the strategic management process, is putting formulated strategies into action. A) Strategy implementation B) Environmental analysis C) Strategic control D) Strategy formulation E) Strategic feedback

Q: One of the SBUs under the Retro Group of companies is not generating a satisfactory amount of business. Extensive analysis shows that the company is losing its market share because its competitors have more sustainable processes. Analysts also feel that the growth prospects in this industry are extremely limited. Which of the following organizational strategies should the company adopt? A) focus B) stability C) retrenchment D) growth E) divestiture

Q: ________ is usually applied to SBUs that are dogs or question marks that have failed to increase market share but still require significant amounts of cash. A) Focus B) Divestiture C) Growth D) Stability E) Retrenchment

Q: ________ is a strategy adopted to eliminate an SBU that is not generating a satisfactory amount of business and that has little hope of doing so in the near future. A) Growth B) Divestiture C) Retrenchment D) Stability E) Focus

Q: In a retrenchment strategy, managers attempt to ________. A) eliminate an SBU B) increase the amount of business of a "star" C) maintain or slightly improve the amount of business an SBU is generating D) develop new products that are perceived by customers as different E) strengthen or protect the amount of business an SBU is generating

Q: This strategy of ________ is generally applied to cash cows or stars that are beginning to lose market share. A) focus B) retrenchment C) stability D) divestiture E) growth

Q: ________ is the strategy through which management attempts to strengthen or protect the amount of business an SBU is generating. A) Differentiation B) Divestiture C) Retrenchment D) Growth E) Focus

Q: Which business strategy is generally applied to cash cows? A) divestiture B) stability C) growth D) retrenchment E) focus

Q: ________ is a strategy adopted by management to maintain or slightly improve the amount of business that an SBU is generating. A) Focus B) Stability C) Retrenchment D) Growth E) Divestiture

Q: The Forrester Group of companies has many products, including a fertilizer manufacturing unit. While this unit has never been a source of high revenues in the past, the SBU has increasingly become an area of concern. For the last few years, this SBU has not generated enough business for the Forrester Group and the parent company does not see things changing in the future without substantial investment. In a market with low growth potential, its already low market share has declined further. Which of the following strategies is the Forrester Group likely to choose for this SBU? A) stability B) focus C) retrenchment D) growth E) divestiture

Q: A business strategy that is generally applied to star or question mark SBUs is ________. A) stability B) focus C) retrenchment D) growth E) divestiture

Q: ________ is a strategy adopted by management to increase the amount of business that an SBU is currently generating. A) Differentiation B) Divestiture C) Retrenchment D) Growth E) Focus

Q: ________ is a strategy that emphasizes making an organization more competitive by targeting a particular customer. A) Differentiation B) Cost leadership C) Stability D) Focus E) Divestiture

Q: Chelsea Inc., is a sportswear company that is planning to introduce a line of jerseys. The company has been the top-selling company in Europe for a decade and has a large market base in the US. With this new line of jerseys, the company hopes to expand its sales in Asia where it already has a base.Which of the following, if true, would support the argument that Chelsea is following a cost leadership strategy?A) The company has a reputation of producing high quality products.B) The company discontinues some of its less successful ventures.C) The company launches the product in a country where it enjoys a larger market share.D) The company encourages economies of scale by focusing on standardization of the product.E) The company acquires one of its smaller competitors.

Q: Dun's Burgers has decided to open takeaway counters across the city that will be open until 11 p.m. to cater to people who return late from work. This turns out to be an excellent strategy as Dun's becomes a hot favorite with the people who work late shifts. This is an example of ________ strategy. A) differentiation B) technology enhancement C) cost leadership D) divestiture E) focus

Q: In an attempt to offer better deals to customers and thereby increase its market share, Dun's Burgers integrates backward to buy out its main supplier of beef. Dun's Burgers is using which of the following strategies to attract customers? A) focus B) technology enhancement C) differentiation D) cost leadership E) focused differentiation

Q: When an organization focuses on making itself more competitive by producing products more cheaply than competitors can, it is following a ________ strategy. A) stability B) differentiation C) focus D) cost leadership E) divestiture

Q: The Razzmatazz Group of companies plans to launch a new flavor of crackers that is distinct and unusual. Which of the following strategies is the company following to become more competitive? A) stability B) cost leadership C) divestiture D) focus E) differentiation

Q: An organization is following a ________ strategy when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors. A) cost leadership B) differentiation C) focus D) stability E) divestiture

Q: With the GE Multifactor Portfolio Matrix, the businesses falling in the cells that form a diagonal from lower left to upper right are ________. A) the strongest and the ones the company should invest in and help grow B) the strongest and the ones the company should sell C) medium-strength and should be invested in only selectively D) the lowest in strength and serious candidates for divestiture E) the lowest in strength and serious candidates for retrenchment

Q: Which of the following is true about The GE Multifactor Portfolio Matrix? A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly. B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively. C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development. D) In the matrix, businesses above and to the left of the diagonal are the weakest and serious candidates for divesture. E) This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Q: RX Corporation has four strategic business units (A, B, C, D). During a review meeting, a member of the company's board of directors suggests that SBU A, which is in the textile industry, should be sold off. Which of the following, if true, would strengthen the argument to eliminate SBU A from the company's portfolio? A) SBU A requires very little financial investment. B) The textile industry is in the maturity stage of the market. C) SBU A was a first mover in its market. D) The textile industry has very high barriers to exit. E) SBU A recently underwent a rebranding exercise.

Q: Which of the following strategy formulation tools outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related? A) Porter's Model for Industry Analysis B) the BCG Growth-Share Matrix C) SWOT analysis D) the GE Multifactor Portfolio Matrix E) the Delphi technique

Q: Which of the following strategy formulation tools was specifically developed to expand on the BCG Growth-Share Matrix? A) Porter's Model for Industry Analysis B) the critical questions analysis C) SWOT analysis D) the GE Multifactor Portfolio Matrix E) environmental analysis

Q: Kreme Industries has an SBU Kreme Makeups, Inc., that offers a wide variety of makeup products and accessories for women. Although market growth rate is high, the SBU's current market share is low and it needs substantial investment. The parent company is trying to decide if Kreme Makeups has long-term sustainability before investing any more cash in it. In the context of the BCG matrix, this SBU of Kreme Industries would be classified as a ________. A) question mark B) cash cow C) dog D) star E) low-cost leader

Q: An SBU with a relatively small market share of a low-growth market is a ________. A) star B) dog C) cash cow D) question mark E) low-cost leader

Q: An SBU with a small market share of a high-growth market is a ________. A) star B) dog C) cash cow D) question mark E) low-cost leader

Q: ProBot Software recently launched DX 11a computer operating system that offers superior features compared to all the other competing products available in the market. Though ProBot operates in a high growth market, DX 11 failed to make any significant profits. Which of the following would best explain this disconnect? A) ProBot's competitors recently reduced their advertising budgets. B) DX 11 is in the growth stage of the product life cycle. C) ProBot has adopted a low cost strategy and has economies of scale. D) The operating system offered by ProBot's main competitor is the industry standard. E) The revenue generated by ProBot is used to finance the operations of one of its subsidiaries.