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c. benchmarking
d. big data
61. The ______ strategy calls for staying with the present product line and markets and
maintaining or increasing customers slowly in new markets.
a. analyzing
b. defending
c. focus
d. prospecting
62. MTV focuses on young people, and Rolex watches have a market niche of upper-
income people. Both are examples of what type of strategy?
a. cost leadership
b. focus
c. analyzing
d. differentiation
63. Which adaptive strategy is most closely related to the grand strategy of growth?
a. prospecting
b. defending
c. analyzing
d. focus
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64. Which of the following is NOT one of the three adaptive strategies?
a. analyzing
b. focus
c. prospecting
d. defending
65. What two competitive strategies typically cannot work in tandem?
a. cost leadership and focus strategy
b. differentiation and cost leadership
c. differentiation and focus
d. focus and analyzing
66. Which functional department would focus their strategy on the four P’s: product,
promotion, place, and price?
a. finance
b. human resources
c. marketing
d. operations
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67. What strategy is responsible for recruiting, selecting, training, evaluating, and
compensating employees?
a. finance
b. marketing
c. operations
d. human resources
68. The workshop where Randy works has a sign that says “Employees cannot have
weapons on company premises.” Which of the following types of plans is this
statement?
a. policy
b. procedure
c. rule
d. program
69. ______ are a sequence of actions to be followed in order to achieve an objective.
a. Procedures
b. Policies
c. Rules
d. Budgets
70. What provide general guidelines to be followed when making decisions?
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b. programs
b. policies
c. procedure
d. rules
71. Which of the following is NOT a key component of the time management system?
a. priorities
b. objectives
c. plans
d. budgets
72. Lately, Maya has had difficulty keeping up with the amount of work her new project
requires. To determine how much time she is spending on high-priority and low-priority
responsibilities, Maya should analyze how she spends her time using a ______.
a. calendar app
b. time log
c. to-do list
d. flowchart
73. Time management refers to techniques that ______.
a. help people become more punctual
b. enable people to get more done in less time
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c. improve the capability of handling more than one task
d. eliminate stressors on the job
74. Which of the following is NOT a standing plan?
a. policies
b. programs
c. procedures
d. rules
75. ______ are alternative plans to be implemented if uncontrollable events occur.
a. Secondary plans
b. Standing plans
c. Single-use plans
d. Contingency plans
76. The steps of the time management system, in order, are ______.
a. schedule each week, plan each week, plan each day
b. schedule each week, plan each week, schedule each day
c. plan each week, schedule each week, plan each day
d. plan each week, schedule each week, schedule each day
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77. What is multitasking?
a. the practice or capability of handling more than one task at a time
b. asking for more work than you can handle
c. keeping track of your actives
d. planning for a variety of nonrecurring tasks
78. A major reason we get distracted and lose our ability to pay attention is the
separation of the use of our ______.
a. heads and heart
b. eyes and mind
c. ears and mouth
d. hands and feet
79. Successful implementation of strategies requires efficient and effective ______
throughout the organization.
a. support systems
b. budgetary processes
c. data analysis
d. mission statements
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80. Controlling is the process of ______.
a. setting objectives for employees
b. determining which lines of business the corporation will be in and how it will allocate
resources among them
c. monitoring progress and taking corrective action when needed to achieve objectives
d. closely watching employees
81. When two competitors enter into a strategic alliance, the two companies are referred
to as ______.
a. frenemies
b. antagonists
c. star-crossed lovers
d. alter-egos
82. A current trend in management is to include ______ in the strategic planning
process.
a. competitors and customers
b. customers and suppliers
c. government and competitors
d. shareholders and suppliers
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83. Companies using ______ have greater quality and speed of executing their
strategies because it helps in developing specific action plans to meet objectives.
a. the Delphi technique
b. intuition
c. consensus mapping
d. big data
True/False
1. Compared to upper-level managers, lower-level managers tend to develop more
single-use plans.
2. Middle- and lower-management levels usually engage in operational planning.
3. Due to the vastly different environmental factors they must address, corporate,
business, and functional strategies are developed and executed independently.
4. The strategic planning process is not linear.
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5. After analyzing the environment, managers should reexamine the mission and values
to see if they need to be changed.
6. A mission is often based on or also creates a vision that defines where the company
is headed in inventing its future and why.
7. The company situation analysis has three steps.
8. In the assessment of competitive strength, one should compare the critical success
factors for the business to those of each major competitor.
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9. A company situation analysis is used to determine the strategic issues and problems
that need to be addressed.
10. Goals are more general and broad than objectives.
11. Objectives state both end results and how they will be achieved.
12. According to a survey of CEOs, the biggest challenge facing leaders today is setting
objectives.
13. A number of studies show that individuals perform better when given easier–to-reach
objectives, as they are less likely to become frustrated and give up.
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14. One of the must criteria in setting objectives is that they be participatively set.
15. Management by objectives has four steps.
16. Communication is the key factor in determining MBO’s success or failure.
17. The evaluations in management by objectives should be annually.
18. With a stability strategy, the company attempts to hold and maintain its present size
or to grow slowly.
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19. Diversification occurs when a corporation goes into related or unrelated lines of
products.
20. Ernesto’s family business has been manufacturing shoes for three generations. In
the past, the shoes have been sold to retailers around the world, but recently, Ernesto
opened three retail stores to sell the shoes directly to customers. This is an example of
backward integration.
21. Sun owns a chain of car washes and is thinking of also opening some restaurants. If
she does, this would be an example of unrelated diversification.
22. A company in a single line of business cannot conduct a business portfolio analysis.
23. Functional departments of a company must develop internal strategies for achieving
the mission and objectives.
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24. One of the main functions for the finance strategy is keeping records of transactions,
developing budgets, and reporting financial results.
25. A budget is the funds allocated to operate a unit for a fixed period.
26. Standing plans are developed for handling non-repetitive situations.
27. Contingency plans are alternative plans to be implemented if controllable events
occur.
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28. Procrastination generally leads to increased stress levels.
29. Research indicates that most people are fairly skilled multitaskers.
30. In terms of strategic planning, top and middle managers are more involved with
planning, whereas the lower-level functional managers and employees implement the
operational strategies on a day-to-day basis.
31. An important part of controlling is staying within the budget when appropriate or
changing it when necessary to meet changes in the dynamic environment.
32. One reason strategic plans fail is that no action is taken to implement the strategy.
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33. The current global trend is for companies to go it alone and compete head on.
34. While selecting strategies and planning, implementing, and controlling them, be sure
to be ethical at all stages.
Essay
1. Explain why lower-level and some middle-level managers spend time doing
operational planning.
2. What is the difference between corporate strategy and business strategy?
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3. What is operational planning?
4. You are starting your own business and must do an industry and competitive situation
analysis to determine where you stand with the competition. Describe the forces of the
competitive situation analysis and explain the importance of this analysis.
5. Explain the reasons for conducting a company situation analysis.
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6. Define SWOT analysis and explain in detail how the factors analyzed when doing a
SWOT analysis related to aspects of an organization’s internal and external
environment.
7. Explain why it is important to set a specific date for accomplishing an objective.
8. List and describe the four grand strategies.
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9. Describe the adaptive strategies.
10. Discuss the two functions of the finance department.
11. What is the difference between standing plans and single-use plans?
12. Explain what controlling strategies entails.
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