1.
A company's mission statement is, above all, intended to define:
[Link] company's profit objectives.
[Link] weaknesses of the firm.
[Link] specific actions that the company should take.
[Link] the company exists, or its "reason to be."
2. What type of plan is formulated at the highest levels of management, takes the broadest view
of the company and its environment, is the least quantifiable, and determines the future nature
of the firm, its products, and its customers?
A. Strategic plan.
[Link] plan.
[Link]-range plan.
[Link]-range plan.
3. Which of the following is not a significant reason for planning in an organization?
A. Promoting coordination among operation units.
[Link] selection of personnel for open positions.
[Link] a basis for controlling operations.
[Link] managers to consider expected future trends and conditions.
4. Which of the following is not a characteristic of a tactical plan?
[Link] relates to production, materials requirements, inventory, cash flows and income
statements.
[Link] covers a period of time of from one year to three years.
[Link] is quantitative in focus.
[Link] management is responsible for development and overall implementation.
5. Which of the following would not be an example of a strategic decision?
A. The board decides to build a new plant costing $12.5 million to expand production of an
existing product.
[Link] decides to cut administrative personnel by 5%.
[Link] company decides to enter a new geographical market.
[Link] decides to reorganize its manufacturing process to implement lean production.
6. By finalizing a statement describing the company's purpose, the scope of its products, and
the markets that it serves, management is providing a foundation to establish
A. a strategy that sets out the criteria for attaining a competitive advantage.
B. long-term objectives that when achieved will result in the fulfillment of the company's
mission.
C.a marketing program.
[Link]-term goals that when accomplished will lead to operational excellence.
7. Certain phases of the planning process should be formalized for all of the following reasons
except:
A. Formal plans can act as a constraint on the decision-making freedom of managers and
supervisors.
B. Formalization requires establishment and observance of deadlines for decision making and
planning,
[Link] plans and goals lack the necessary precision, understanding, and consistency.
[Link] provides a logical basis for rational flexibility and planning.
8. Which of the following would not be true when describing a successful strategy?
[Link] strategy addresses changes to the external environment.
[Link] strategy provides golden parachutes for senior managers.
[Link] strategy provides the means for the organization to survive and grow.
[Link] strategy provides a means for the organization to regain its competitive advantage.
9. Competitive advantage is an advantage that a company has over its competitors. Competitive
advantage is gained by o ering customers greater value than they can get from competitors.
Which of the following gives a company competitive advantage ?
I. Improved cost structure of its manufacturing process.
[Link] quality.
[Link] levels of R&D spending.
[Link] cash dividends to shareholders.
A. I and Il only.
B.I and Ill only.
[Link] and IV only.
[Link] and Ill only.
10. An organization that has a competitive advantage over its industry rivals will
[Link] more money on advertising than its competitors do.
[Link] distribution channels that are wider than others in its industry.
[Link] more profitable than the average company in its industry.
[Link] able to distribute its product more quickly than other industry competitors.
11. Which one of the following management considerations does the company usually address
first in strategic planning?
[Link] objectives of the company.
[Link] of the organization.
[Link].
[Link] annual budgets.
12. All of the following are characteristics of the strategic planning process except the
A. Emphasis on the long run.
[Link] of the attributes and behavior of the organization's competition.
[Link] and review of departmental budgets.
D. Analysis of external economic factors.
13. The method(s) that managers employ to attain one or more of the organization's goals can
be defined as:
[Link].
[Link] investments.
[Link] the company's business model.
[Link] the company's organizational structure.
14. Strategy is a broad term that usually includes the selection of overall objectives.
Strategic analysis ordinarily excludes the
[Link] of organizational structure that would best serve the entity.
[Link] product mix and production schedule to be maintained during the year.
[Link] ways to invest in research, design, production, distribution, marketing, and
administrative activities.
D. Trends that will a ect the entity's markets.
[Link] developing a budget, an external factor to consider in the planning process is
A.A change to a decentralized management system.
[Link] merger of two competitors.
[Link] product development.
[Link] implementation of a new bonus program.
