Chapter 06 Strategic Planning Answer Key
Multiple Choice Questions
1.
(p. 171)
Which of the following are common managerial decision-making biases?
2.
(p. 172,
176)
Which of the following is not an element of a business-level strategic plan?
3.
(p. 174)
Competitor analysis typically deals with:
4.
(p. 176)
Goal setting is a more effective tool for planning than SWOT analysis because:
5.
(p. 179)
Which of the following are key benchmarks for setting financial goals?
6.
(p. 179–
180)
Which of the following is not a general category for strategic initiatives?
7.
(p. 185)
The Marakon profitability matrix is appropriate for:
8.
(p. 184)
Which of the following should not be an element in the corporate strategic plan?
9.
(p. 176)
The typical time period for goal setting in a strategic plan is:
Blooms: Apply
Difficulty: 2 Medium
10.
(p. 174)
Which of the following is a useful question for competitor analysis?
True / False Questions
(p. 169)
Difficulty: 2 Medium
11.
Strategic planning is more a line activity than a staff activity.
12.
(p. 170)
Difficulty: 2 Medium
Strategic execution is the same as strategy planning.
13.
(p. 172)
Difficulty: 2 Medium
A mission statement describes the strategic initiatives necessary to achieve a firm’s goals.
14.
(p. 179)
The benefit of stretch goals lies in stimulating a level of innovation beyond what management
has already imagined.
15.
(p. 173)
A vision statement is typically medium long and describes the long term goals of the firm.
16.
(p. 176)
Managers shy away from setting long-term goals because they are unwilling to identify the
strategic consequences of their actions in a larger time frame.
(p. 180)
17.
Goals are the basic units though which strategy is executed.
18.
(p. 180)
Strategic initiatives are useful for assessing how well a plan is being executed.
19.
(p. 180)
Execution is compromised when programs lack a lead manager and a specific time frame for
completion.
20.
Program performance is tied to the business metrics included in a plan’s goals.
Short Answer Questions
21.
(p. 173)
What is the difference between a mission statement and a vision statement?
22.
(p. 170)
Why is problem solving a critical part of a firm’s strategic planning process?
23.
(p. 182–
184)
Two standard methods for evaluating the economic value of a project include DCF analysis
(and, in turn, NPV) and Real Options. When would it make sense to use a Real Options
analysis instead of a DCF based analysis?