96. The act of determining the organization’s goals and the means for achieving them is referred to as .
97. and plans are the responsibilities of middle managers.
98. describes the organization’s reason for existence.
99. A(n) is a broadly stated definition of basic business scope and operations that distinguishes the organization
from others of a similar type.
100. Broad statements describing where the organization wants to be in the future are called .
101. define the action steps by which an organization intends to attain its strategic goals.
102. Goals that define the outcomes that major departments must achieve in order for the organization to reach its
overall goals are known as goals.
103. are designed to help execute major strategic plans and to accomplish a specific part of the company’s
strategy.
104. The specific results expected from departments, work groups, and individuals are the goals.
105. plans are developed at the lower levels of the organization to specify action steps toward achieving
operational goals and to support tactical plans.
106. is a method whereby managers and employees define goals for every department, project, and person and
use them to monitor subsequent performance.
107. Managers believe that they are better oriented toward goal achievement when is used.
108. plans are developed to achieve a set of goals that are not likely to be repeated in the future.
109. are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization.
110. Plans that define company responses to specific situations, such as emergencies, setbacks, or unexpected
conditions are called plans.
111. A special type of contingency plan that is used when events are sudden and devastating and require immediate
response is called .
112. A group of planning specialists assigned to major departments and divisions to help managers develop their own
strategic plans is called .
113. List the five characteristics of effective goals.
114. List the four major activities that must occur in order for MBO to succeed.
115. List four reasons why planning generally positively affects a company’s performance?
116. What are the two stages of crisis management?
117. Compare the four levels of goals and plans.
118. Briefly define the characteristics of an effective goal.
119. List and define the four major activities that must occur in order for management by objectives (MBO) to succeed.
120. In what ways do plans and goals benefit an organization?
121. Research has shown that strategic thinking and planning positively affect a firm’s performance and financial
success.
a. True
b. False
122. Strategic thinking is more important –profit businesses than for non–profit organizations.
a. True
b. False
123. Top managers and chief executives have the final responsibility for strategic planning.
a. True
b. False
124. Front-line managers have the final responsibility for strategic planning.
a. True
b. False
125. Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.
a. True
b. False
126. Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the
environment.
a. True
b. False
127. Strategic partnerships are the current trend, rather than mergers and acquisitions.
a. True
b. False
128. In a turbulent business climate, managers should focus on strategic stability rather than flexibility.
a. True
b. False
129. Some companies hire competitive intelligence professionals to scan the external environment and provide data and
research on relevant domestic and global trends.
a. True
b. False
130. The essence of formulating strategy is choosing how the organization will conform to become like its key
competitors in the industry.
a. True
b. False
131. Executives acquire information about external opportunities and strengths from a variety of reports, including
budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.
a. True
b. False
132. Threats are characteristics of the internal environment that may prevent the organization from achieving its
strategic goals.
a. True
b. False
133. The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors,
customers, suppliers, and the labor supply.
a. True
b. False
134. Opportunities are characteristics of the internal environment that have the potential to help the organization achieve
or exceed its strategic goals.
a. True
b. False
135. An SBU stands for Star Business Unit.
a. True
b. False
136. The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and
geographical location.
a. True
b. False
137. The question mark exists in a new, rapidly growing industry but has only a small market share, according to the
BCG Matrix.
a. True
b. False
138. According to the BCG Matrix, the cash cow has a large market share in a rapidly growing industry.
a. True
b. False
139. The dog, according to the BCG Matrix, is a poor performer.
a. True
b. False
140. Differentiation, cost leadership, and focus are three of Porter‘s competitive strategies.
a. True
b. False
141. Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or
services from that of competitors.
a. True
b. False
142. The set of decisions and actions used to formulate and implement strategies that will provide a competitively
superior fit between the organization and its environment so as to achieve organizational goals is known as:
a. strategy formulation.
b. strategic planning.
c. strategic management.
d. strategy implementation.
e. strategy evaluation.
143. The plan of action that prescribes resource allocation and other activities for dealing with the environment and
helping the organization attain its goals is known as a(n) .
a. goal
b. objective
c. mission
d. vision
e. strategy
144. Which of the following is a business activity that an organization does especially well relative to its competition?
a. Strategy
b. Synergy
c. Cash cow
d. Core competence
e. Multidomestic
145. refers to the use of managerial tools to direct resources toward the achievement of strategic goals.
a. Strategy formulation
b. Strategy coordination
c. Strategy execution
d. Strategy control
e. Strategy planning