Management Chapter 05 1 C learning Objective Discuss The Four Corporate level

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Chapter 5: Strategic and Operational Planning

Test Bank

Multiple Choice

1. Which of the following is NOT one of the planning dimensions?

a. repetitiveness

b. scope

c. expense

d. management level

2. ______ is the process of setting short-range objectives and determining in advance

how they will be accomplished.

a. Long-range planning

b. Strategic planning

c. Single-use planning

d. Operational planning

3. By definition, a long-term plan generally takes longer than ______ to achieve.

a. 6 months

b. 1 year

c. 5 years

d. 10 years

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4. Shamar is an upper-level manager at Fortune 500 company. The company feels like

they are outdated and want to recreate their image and go in a different direction. What

kind of planning will Shamar use to develop their new mission and long-range

objectives?

a. long-range planning

b. strategic planning

c. single-use planning

d. operational planning

5. ______ is a step in the strategic planning process.

a. Analyzing the environment

b. Assessing the code of ethics

c. Assessing the competition

d. Creating conclusions concerning the competitive position

6. The ______ is the foundation of the other four steps in the strategic planning process.

a. criteria

b. vision

c. mission

d. objectives

7. Algemar is helping his Fortune 500 company write a statement describing his

company’s purpose. What is Algemar writing?

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a. motto

b. values

c. objectives

d. mission

8. Bennett has been so successful at his Fortune 500 company that he decides to start

his own business. What does Bennett need to do first for his strategic planning

process?

a. develop the mission

b. analyze the environment

c. set objectives

d. develop strategies

9. Strategic planning ______.

a. is the process of setting short-range objectives and determining in advance how they

will be accomplished

b. is a plan for pursuing a mission and achieving objectives

c. describes the company’s competitive advantage in the global village

d. is the process of developing a mission and long-range objectives and determining in

advance how they will be accomplished

10. The differences between strategic planning and operational planning are primarily

______.

a. time frame and management level involved

b. time frame and expense

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c. company type and management level involved

d. company type and expense

11. In the strategic planning process, what is the third stage in the process?

a. implementing and controlling strategies

b. developing the mission

c. developing strategies

d. setting objectives

12. In the strategic planning process, what is the fourth stage in the process?

a. implementing and controlling strategies

b. developing the mission

c. developing strategies

d. analyzing the environment

13. In the strategic planning process, what is the first stage in the process?

a. setting objectives

b. developing the mission

c. developing strategies

d. analyzing the environment

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14. Which of the following is NOT a part of the situation analysis?

a. industry and competitive situation analysis

b. company situation analysis

c. identification of a competitive advantage

d. portfolio analysis

15. Analyzing the environment is also known as ______.

a. planning strategy

b. situation analysis

c. competition analysis

d. developing the mission

16. A situation analysis ______.

a. is focused only on an organization’s internal strengths and weaknesses

b. focuses on those features in a company’s environment that most directly affect its

options and opportunities

c. describes how strategic planning is different from operational planning

d. is a plan for pursuing a mission and achieving objectives

17. Which of the following is the first step in performing a company situation analysis?

a. assessment of competitive strength and identification of competitive advantage

b. assessment of the present strategy based on performance

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c. conclusions concerning competitive position

d. SWOT analysis

18. The analysis of critical success factors occurs during which of the following steps in

performing a company situation analysis?

a. assessment of competitive strength and identification of competitive advantage

b. assessment of the present strategy based on performance

c. conclusions concerning competitive position

d. SWOT analysis

19. Within the company situation analysis, what step must be done right before the

conclusion concerning competitive position?

a. assessment of competitive strength and identification of competitive advantage

b. assessment of the present strategy based on performance

c. determination of the issues and problems that need to be addressed

d. SWOT analysis

20. Which of the following is NOT involved in a SWOT analysis?

a. internal environmental strengths

b. external environmental opponents

c. external environmental threats

d. internal environmental weaknesses

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Lussier, Management Fundamentals 8e

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21. ______ specifies how an organization offers unique customer value.

a. Core competency

b. Competitive advantage

c. Critical success factor

d. Resource opportunity

22. ______ are the few major things that a business must do well in order to be

successful.

a. Resource opportunities

b. Core competencies

c. Competitive advantages

d. Critical success factors

23. A ______ is what a firm does well.

a. critical success factor

b. resource opportunity

c. core competency

d. competitive advantage

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24. ______ is the process of comparing an organization’s products or services and

processes with those of other companies.

a. Comparative assessment

b. Critical comparison

c. Calibration

d. Benchmarking

25. Situation analysis is an ongoing process, referred to as ______.

a. benchmarking the field

b. monitoring the status

c. scanning the environment

d. reading the trends

26. Kim’s goal is to save more money by the end of the current year. Which of the

following is a must criteria for effective objectives that is not met in this statement?

a. single result

b. specific

c. realistic

d. target date

27. Which is NOT included in SMART goals?

a. specific

b. attainable

c. reliable

d. timely

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28. Which of the following is NOT a step in management by objectives?

a. Set individual objectives and plans.

b. Give feedback and evaluate performance.

c. Explain goals that are to be accomplished.

d. Reward according to performance.

29. ______ is the process in which managers and employees jointly set objectives for

the employees, periodically evaluate performance, and reward employees according to

results.

a. Performance appraisal

b. Management by objectives

c. Benchmarking

d. Consensus mapping

30. Janie, a consultant for Howard & Associates LP, was given an objective to triple the

client retention in her region by the end of the quarter. After her objective was met,

Janie’s boss evaluated her performance and provided feedback. What should Janie’s

boss do next when managing by objectives?

a. Give her more work to complete.

b. Reward her.

c. Have his assistant call her and congratulate her.

d. Move on to the next objective.

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31. Ford’s goal is to sell 15% more minivans. Which of the following is a must criteria

not met in this statement?

a. single result

b. realistic

c. measurable

d. target date

32. Which is the correct order of the Objective Writing model?

a. (1) action verb + (2) to + (3) specific and measurable result + (4) target date

b. (1) to + (2) action verb + (3) specific and measurable result + (4) target date

c. (1) to + (2) action verb + (3) target date + (4) specific and measurable result

d. (1) specific and measurable result + (2) to + (3) action verb + (4) target date

33. Which of the following is NOT a must criteria when setting objectives?

a. measurable

b. acceptance and commitment

c. specific

d. target date

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34. A ______ is a form of retrenchment in which a corporation decides to set up one or

more of its business units as a separate company rather than selling it.

a. merger

b. acquisition

c. spinoff

d. selloff

35. A key function of a ______ strategy is to allocate and coordinate resources among

different business units.

a. operational

b. functional

c. business

d. corporate

36. A ______ strategy is an overall corporate strategy for growth, stability, turnaround,

and/or retrenchment.

a. master

b. grand

c. combination

d. global

37. If a company decides to take its time and expand its business slowly, what type of

grand strategy is this company practicing?

a. growth

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b. stability

c. merger

d. acquisition

38. A large electronics chain has decided to close some of its stores across the country

to focus more on online sales. Which type of grand strategy is the store using?

a. retrenchment

b. stability

c. combination

d. spinoff

39. Which one of the following is NOT a grand strategy?

a. stability

b. turnaround and retrenchment

c. diversification

d. growth

40. Lennox’s company is planning on extending its existing business in Asia. In Europe,

the company is fairly dominant, so they plan to make only slow and gradual changes in

that market. However, their efforts to establish market share in North America have not

been successful, so they plan to liquidate those assets and redirect them elsewhere.

Which grand strategy is Lennox’s company using?

a. growth

b. stability

c. combination

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d. turnaround and retrenchment

41. H&M is looking to expand its business by opening more stores across the USA.

What type of grand strategy is H&M using?

a. turnaround and retrenchment

b. growth

c. stability

d. concentration

42. Carol’s Bakery has decided to hold and maintain its present size and not expand

into the global market. What type of grand strategy is Carol’s Bakery using?

a. turnaround

b. growth

c. concentration

d. stability

43. A ______ strategy is when a company decides to introduce new product lines.

a. concentration

b. diversification

c. integration

d. combination

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44. When a company decides to enter a line of business that is farther away from its

final customer, what type of growth strategy is this called?

a. backward integration

b. forward integration

c. related diversification

d. unrelated diversification

45. Concentration, backward and forward integration, and related and unrelated

diversification are which type of strategy?

a. growth

b. grand

c. combination

d. turnaround

46. A ______ strategy means an organization is growing aggressively in its existing

line(s) of business.

a. integration

b. diversification

c. concentration

d. stability

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47. Which of the following is considered a growth strategy?

a. concentration

b. adaptation

c. analysis

d. duplication

48. Mergers and acquisitions are associated with which grand strategy?

a. stability

b. combination

c. turnaround and retrenchment

d. growth

49. ______ occurs when two companies form one corporation.

a. A merger

b. Acquisition

c. Diversification

d. Integration

50. One of TRESemmé’s strategies is to extend their business by continuing to create

hair care products formulated for customers with different hair types. This type of

strategy is called______.

a. integration

b. turnaround and retrenchment

c. combination

d. concentration

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51. An example of a(n) ______ is when Exxon and Mobil decided to come together as

one to form the company Exxon-Mobil.

a. merger

b. acquisition

c. spinoff

d. diversification

52. A primary objective of ______ is to make strategic decisions about the allocation of

resources among strategic business units.

a. business unit servicing

b. inter-unit resourcing

c. strategic resource allocation

d. corporate portfolio management

53. Anna is using the BCG Growth-Share Matrix to perform a portfolio analysis for her

company, Craycol Incorporated, which has four divisions: Red, Orange, Yellow, and

Green. The Yellow division is new but doing quite well. Although it faces strong

competition in a market that is still growing and changing rapidly, it currently has a

narrow lead in market share. The Red division has long been the company’s top

performer and dominates market share in an industry that has been stable for the past

ten years. The Green division has been performing poorly for the past five years, and

there doesn’t seem to be much opportunity to gain market share from its competitors, as

customer demand has dropped significantly and is not likely to increase. The Orange

division is Craycol’s newest division. The market Orange produces products for is

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potentially large, but many other companies are pursuing the same customers and it

remains to be seen how Orange will perform, as it currently lags behind some of its

competitors while outperforming others. According to the BCG Matrix, the ______

division would likely be identified as a Star.

a. Red

b. Orange

c. Yellow

d. Green

54. Anna is using the BCG Growth-Share Matrix to perform a portfolio analysis for her