Chap008 - Test bank PDF

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Chapter 08 - The Manager as a Planner and Strategist

Chapter 08 The Manager as a Planner and Strategist TEST PLANNING TABLE FOR CHAPTER 8 Learning Goal

Easy

Moderate

1. Identify the three main steps of the planning process and explain the relationships between planning and strategy.

1, 2, 4, 6, 7, 8, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 36, 37, 38, 39, 40, 43, 44, 45, 46, 48, 49, 51, 52, 53 54, 55, 56, 58, 59, 60, 61, 64

3, 5, 9, 10, 11, 41, 42, 47, 50, 57, 63, 65, 97, 98, 99, 101

62, 100

2. Describe some techniques managers can use to improve the planning process so that they can better predict the future and mobilize organizational resources to meet future contingencies.

23, 24, 68, 71, 73

66, 67, 69, 70, 72,74, 75

102

3. Differentiate between the main types of business-level strategies and explain how they give an organization a competitive advantage that may lead to superior performance.

26, 27, 76, 77

25, 103

104

4. Differentiate between the main types of corporate-level strategies and explain how they are used to strengthen a company’s business-level strategy and competitive advantage.

28, 84, 91

29, 30, 31, 32, 33, 82, 85, 86, 87, 88, 89, 90, 92, 93, 94, 96, 105

78, 79, 80, 81, 83, 95, 106, 107

5. Describe the vital role managers play in implementing strategies to achieve an organization’s mission and goals.

34

Total number of test items: 108 True/false questions are in plain text. Multiple choice questions are in bold text. Short answer questions are in bold underlined text.

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Hard

35, 108

Chapter 08 - The Manager as a Planner and Strategist

True / False Questions 1. The set of decisions that managers make to assist the organization in the attainment of its goals is called the strategy of the organization. True False

2. Planning is a goal-making but not a strategy-making process. True False

3. The last step in the planning process is to determine the organization's mission and goals. True False

4. A broad statement of the organization's purpose, its products, and its customers is called a mission statement. True False

5. Planning takes place at the corporate level and the business level of the organization, but not at the functional level of the organization. True False

6. The divisions of the organization exist at the business level of the organization. True False

7. Another name for a department of an organization is a function. True False

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Chapter 08 - The Manager as a Planner and Strategist

8. The corporate-level plan of an organization contains the decisions that are related to the organization's mission, goals, strategy, and structure. True False

9. In the typical organization, corporate-level planning is the primary responsibility of firstline supervisors. True False

10. In the typical organization, top managers are primarily responsible for planning that takes place at the business level of the organization. True False

11. Functional goals and strategies need not be consistent with divisional goals and strategies. True False

12. The number of months covered in the typical business plan is known as the time horizon of the plan. True False

13. A business plan that is updated every year depending on the changes in the organization and in the external environment that have taken place in the previous year is known as a rolling plan. True False

14. Standing plans are useful in situations that involve programmed decisions. True False

15. A general guide to action within an organization is called an SOP of the organization. True False

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Chapter 08 - The Manager as a Planner and Strategist

16. A written set of instructions that describes the series of actions that a manager should take in a specific situation is called an SOP of the organization. True False

17. A written procedure that requires any employee who receives a gift worth more than $10 from a customer to report that gift to his or her organization is called a rule. True False

18. Single-use plans are intended to be used primarily in programmed decision-making situations. True False

19. Both programs and projects are examples of single-use plans. True False

20. Another name for contingency planning is scenario planning. True False

21. The first step in defining an organization's mission is to define its business. True False

22. Managerial goals should be both challenging and realistic. True False

23. SWOT analysis is the last step in the strategy formulation process. True False

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Chapter 08 - The Manager as a Planner and Strategist

24. The last step in a SWOT analysis is to identify the organization's internal strengths and internal weaknesses. True False

25. Managers of XYZ Company attempt to give the organization a competitive advantage by driving production costs to as low a level as possible. We say that XYZ is pursuing a differentiation strategy. True False

26. According to Michael Porter's theory, it is possible for managers to pursue both a low-cost strategy and a differentiation strategy at the same time. True False

27. Differentiation raises costs. True False

28. With a multidomestic strategy, managers decide to sell the same product with the same marketing approach in all of the countries in which the product is sold. True False

29. Organizations that use a global strategy typically customize the product to meet the needs of customers in different countries. True False

30. With a global strategy, managers decide to customize a product and its marketing strategy to fit the different needs of the target market in each of the countries in which the product is sold. True False

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Chapter 08 - The Manager as a Planner and Strategist

31. The advantages and disadvantages of a global strategy are the same as those of a multidomestic strategy. True False

32. In licensing, the licenser bears the development costs of opening up in a foreign country. True False

33. In a wholly-owned subsidiary, there is no local direct involvement by the parent organization at the operations site. True False

34. The planning process includes plans that ensure strategies are implemented. True False

35. A plan to implement a new strategy normally includes structural redesign, new control systems, and culture change. True False

Multiple Choice Questions 36. The cluster of decisions that managers make to assist an organization to achieve its goals is known as: A. Strategy B. Scenario planning C. SWOT analysis D. Diversification E. Related diversification

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Chapter 08 - The Manager as a Planner and Strategist

37. A broad statement of an organization's purpose, products, and customer base that differentiate an organization from its competitors is known as a: A. A functional-level plan B. A mission statement C. A SWOT analysis D. A focused low-cost strategy E. A focused differentiation strategy

38. When Fayol said that an organization should have only one central plan that guides the organization towards its goals, he was saying that the plan should have: A. Accuracy B. Flexibility C. Unity D. Continuity E. Synergy

39. When Fayol pointed out that the planning process for an organization should be an ongoing process in which managers refine previous plans and modify these plans at all levels of the organization, he was saying that the plans should have: A. Continuity B. Flexibility C. Accuracy D. Unity E. Synergy

40. When Fayol stated that managers should attempt to collect and to use all available information in the organization's planning process, which aspect of planning was he emphasizing? A. Unity B. Flexibility C. Continuity D. Accuracy E. Synergy

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Chapter 08 - The Manager as a Planner and Strategist

41. Which level of management of a large organization contains the organization's marketing department, R&D department, and human resources department? A. Divisional B. First-line C. Vertical D. Scenario E. Multidomestic

42. GE Financial Services is an example of which level of management operations for General Electric Company? A. Functional B. Corporate C. Divisional D. Departmental E. None of the above

43. Which plan of the organization contains top management's decisions about the organization's mission, goals, strategy, and structure? A. Corporate-level plan B. Divisional-level plan C. Functional-level plan D. Business-level plan E. Departmental-level plan

44. Which type of organizational strategy states the industries and markets in which the organization intends to compete? A. Divisional-level strategy B. Departmental-level strategy C. Functional-level strategy D. Corporate-level strategy E. Business-level strategy

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Chapter 08 - The Manager as a Planner and Strategist

45. Another name for the business level of the organization is the __________ level of the organization. A. Functional B. Departmental C. Corporate D. Divisional E. First-line

46. Another name for the departmental level of the organization is the __________ level of the organization. A. Functional B. Divisional C. Business D. Corporate E. First-line

47. General Electric Company sets a goal that every product line of the company should be either first or second in its industry in market share. What type of goal does this represent? A. Corporate-level B. Divisional-level C. Functional-level D. Business-level E. Multidomestic-level

48. Which type of plan details the goals, strategy, and structure of a division within an organization? A. Functional-level plan B. Business-level plan C. Departmental-level plan D. Corporate-level plan E. None of the above

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Chapter 08 - The Manager as a Planner and Strategist

49. Which type of strategy states the methods that a division within an organization will use to compete against its rivals in the industry? A. Functional-level strategy B. Departmental-level strategy C. Corporate-level strategy D. Business-level strategy E. None of the above

50. A functional-level plan spells out the goals of the __________ that are intended to assist the organization to achieve its __________ goals. A. Division; corporate B. Business; department C. Business; divisional D. Department; business E. None of the above

51. What type of strategy specifies the activities of managers at the departmental level of the organization? A. Functional-level strategy B. Business-level strategy C. Corporate-level strategy D. Divisional-level strategy E. Top-level strategy

52. The length of the plan, in terms of the number of months or years that are included in the organization's plan, is known as the __________ of the plan. A. Rolling level B. Time horizon C. Mission D. Function E. Synergy

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Chapter 08 - The Manager as a Planner and Strategist

53. Organizational plans that cover a time span of five or more years are typically referred to as ______________ plans. A. Short-term plans B. Intermediate-term plans C. Long-term plans D. Division-term plans E. Corporate-term plans

54. Organizational plans that cover a time span of one to five years are typically referred to as _____________ plans. A. Division-term plans B. Short-term plans C. Long-term plans D. Corporate-term plans E. Intermediate-term plans

55. Organizational plans that cover a time-span of up to one year are referred to as __________ plans. A. Long-term plans B. Short-term plans C. Division-term plans D. Corporate-term plans E. Intermediate-term plans

56. A plan that is updated and changed every year to take into consideration how the external environment and the organization's internal environment have changed since the plan was prepared, is known as ________. A. An intermediate-term plan B. A long-term plan C. A rolling plan D. A divisional plan E. A corporate-level plan

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Chapter 08 - The Manager as a Planner and Strategist

57. Health-4-U Grocery Stores has a plan to introduce a new section into their stores in the next ten months in which customers can mix their own choices of flavors and additives into yogurt. For this, they should develop a _______________. A. Short-term plan B. Intermediate plan C. Long-term plan D. Scenario plan E. Rolling plan

58. When an organization updates its five-year plan annually in order to take into account changing conditions within the organization and in the organization's external environment, this is known as which type of plan? A. Inflexible B. Functional C. Rolling D. Scenario E. SWOT

59. A general guide to action for the managers of an organization is known as: A. A standing plan B. A rule C. A policy D. An SOP E. None of the above

60. A formal, written guide to action for managers in an organization is known as: A. A policy B. A rule C. A heuristic D. Synergy E. None of the above

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Chapter 08 - The Manager as a Planner and Strategist

61. A written set of instructions which describes the series of actions that a manager should take in a specific situation is known as: A. A policy B. A standard operating procedure C. A heuristic D. A standing plan E. None of the above

62. IBM has a written set of guidelines that describes behaviors that IBM considers to be either ethical or unethical. This is called a: A. Policy B. Set of rules C. Standard operating procedure D. Single-use plan E. Mission statement

63. A company has a requirement that any manager who receives a gift from any of the company's customers that is worth more than $25 must report this gift to the company's human resources department. This requirement is an example of a: A. A standing plan B. A mission statement C. A policy D. A rule E. A single-use plan

64. Another name for contingency planning is: A. Synergy planning B. Ad hoc planning C. Business-level planning D. Divisional-level planning E. Scenario planning

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Chapter 08 - The Manager as a Planner and Strategist

65. An organization creates a list of possible future forecasts of business situations and creates a plan to respond to each of these forecasts. This is known as: A. Synergy planning B. Ad hoc planning C. Divisional-level planning D. Scenario planning E. Functional planning

66. Managers at ABC, Inc. analyze the current situation of their organization and then develop plans to help their organization to accomplish its mission and achieve its goals. This is known as: A. Synergy planning B. Strategy formulation C. Functional planning D. SWOT analysis E. Diversification

67. A group of managers analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this? A. Mission analysis B. SWOT analysis C. Functional analysis D. Diversification E. Related Diversification

68. SWOT is a part of: A. Corporate-level strategy B. Business-level strategy C. Functional-level strategy D. All of the above E. None of the above

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Chapter 08 - The Manager as a Planner and Strategist

69. In which step of SWOT analysis would "obsolete, narrow product line" be most likely to arise? A. S B. W C. O D. T E. Both O and T

70. In which step of SWOT analysis would "slower market growth" be most likely to arise? A. S B. W C. O D. T E. Either S or W

71. In the Five Forces Model, the type of competitive activity that exists between organizations is known as the: A. Potential for entry into the industry B. Threat of substitute products C. Power of customers D. Level of rivalry E. Power of suppliers

72. In the Five Forces Model, the __________ that companies compete against one another for customers, the _________ the level of profits is likely to be for that industry. A. More; lower B. More; more C. Less; lower D. Less; less E. None of the above

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Chapter 08 - The Manager as a Planner and Strategist

73. In the Five Forces Model, the ease with which companies can enter into competition with other companies within the industry is known as which type of force? A. Power of customers B. Threat of substitute products C. Potential for entry D. Level of rivalry E. Power of suppliers

74. In the Five Forces Model, when the barriers to entry into the industry are _________, the more likely it is that industry profits will be _________. A. Low; high B. Low; low C. High; low D. High; high E. None of the above

75. A product that formerly used steel in its design now can use plastic instead. Which of the five forces is at work? A. The power of customers B. The power of suppliers C. The level of rivalry D. The threat of substitute products E. The potential for entry

76. An organization attempts to gain a competitive advantage by aiming its efforts at driving down its production costs per unit below those of its competitors. This is known as which type of strategy? A. Focused differentiation strategy B. Low-cost strategy C. Related diversification strategy D. Unrelated diversification strategy E. Concentration on a single business strategy

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Chapter 08 - The Manager as a Planner and Strategist

77. An organization attempts to succeed by distinguishing its products from those of the competition. What type of strategy is this? A. Focused differentiation strategy B. Low-cost strategy C. Related diversification strategy D. Unrelated diversification strategy E. Concentration on a single business strategy

78. All of the following are major corporate-level strategies that managers can use to help their organization increase its sales and profits EXCEPT: A. Concentration on a single business B. Diversification C. International expansion D. Vertical integration E. Focus

79. An organization purchases one of its suppliers in order to obtain access to the raw materials that it needs for its production. It also decides to sell its products through its own retail outlets. The former is known as __________ while the latter is known as _________. A. Forward vertical integration; backward vertical integration B. Backward vertical integration; forward vertical integration C. Forward vertical integration; forward vertical integration D. Backward vertical integration; backward vertical integration E. None of the above

80. Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron, Ohio. This is an example of: A. Forward vertical integration B. A global strategy C. A multidomestic strategy D. Backward vertical integration E. A focused-differentiation strategy

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Chapter 08 - The Manager as a Planner and Strategist

81. Firestone Tire and Rubber Company set up a chain of Firestone retail stores to sell its tires to American consumers. This is an example of: A. Forward vertical integration B. A global strategy C. A focused-differentiation strategy D. A multidomestic strategy E. Backward vertical integration

82. When Gallo purchased a company that makes wine bottles, it was i...