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Management, 9e (Kinicki)
Chapter 5 Planning: The Foundation of Successful Management
1) A business model outlines what customer needs the company will satisfy, the operations of the
business, the company components and functions, and the projected revenue and expenses.
2) When using MBO, managers should meet with employees reasonably often—either informally
as needed or formally every three months—to review progress.
3) Every five years, the upper-level managers of Zebra Technology meet to develop a new
large-scale action plan that will set the direction for the company for the next five years. In that
meeting the managers will work on developing a strategy.
4) The upper-level managers of Premium Java are meeting to discuss the company's long-range
goals and vision. Like any organization, Premium Java should adopt planning and strategic
management for just two reasons: (1) to provide direction and momentum and (2) to encourage
retention of high-value employees.
5) When Amazon says, "we want to be Earth's most customer-centric company," it is stating its
code of ethics.
6) Tricia, the director of marketing for a global company, is planning the contributions she and her
department will make to the organization over the next 24 months. This type of planning is called
operational planning.
7) Heather is the store manager for a national grocery retailer, and she received the yearly tactical
plan from Sanjay, her district manager. Heather is meeting with her department managers to plan
how to implement the specific tasks outlined in Sanjay's plan for the next year. Heather is engaged
in operational planning.
8) "Increase profits by 15 percent a year for each of the next five years" is an example of a strategic
goal.
9) The production plant for Ruby Manufacturing has been located in the same place for over 100
years. The company has just completed its new factory that includes its new corporate offices. The
planning required for moving Ruby into a new facility is a single-use plan.
10) Candice, owner of Green Solar Panels, has found that some of her department managers were
using management by objectives, but the accounting and sales managers were not. Candice can
still expect that the MBO program she introduced will yield results.
11) Taking a ________ action is setting a very challenging goal for yourself. It might be "I will
double the number of hours I study next semester so that I can increase my GPA by at least half a
point," keeping you motivated and focused on achievement.
A) performance objective
B) learning objective
C) cascading goal
D) practical action
E) behavioral objective
12) Research suggests that when writing out a plan to achieve your biggest goals, it is important to
A) focus on broad rather than specific goals.
B) identify your options and track your progress.
C) make a general plan, which embeds your intentions firmly in your memory.
D) keep plans and goals private.
E) avoid specific goals because it increases stress.
13) During her lunch break one afternoon, Alison set a goal of completing all required trainings in
the next 90 days by taking two trainings a week. What is she doing?
A) planning
B) controlling
C) delegating
D) diversifying
E) synergizing
14) With increasing competition in the auto-parts business, Harrison, owner of Discount Tires, is
dealing with growing uncertainty. He decides to ________, or meet with his managers to develop a
future course of action to meet company goals.
A) plan
B) lead
C) control
D) define
E) diversify
15) The profits of West Side Grocery have dropped significantly over the last several months.
After investigating, the owner realizes that many of the store's departments are moving in the
wrong direction. The owner recognizes that these departments need stronger and closer
management, but she also knows she has not provided her managers with enough direction
regarding her expectations for the store's goals and the employees' performance. This example
shows how an organization can progress in the wrong direction as a result of
A) little company diversity.
B) no focus on JIT.
C) no code of ethics.
D) poor planning.
E) too much employee diversity.
16) Leo is starting a company that leases shared workspaces, and he has approached SCORE, an
SBA organization that assists small-business owners in setting up their companies. The SCORE
counselors would probably advise Leo, as a new business owner, to
A) learn from experience, the best teacher, rather than a mentor.
B) avoid developing a business plan the first year of business.
C) try new things regardless of the risk.
D) get a new perspective by asking people who have failed.
E) write a business plan.
17) An organization's ________ expresses the need the firm will fill, the operations of the
business, its components and functions, and the expected revenues and expenses.
A) mentoring plan
B) code of ethics
C) risk statement
D) business model
E) code of business
18) Prior to opening her new restaurant, Alice is deciding what items to offer on the menu, the
anticipated profits and expenses, the tasks of various employees, and how those jobs will be
handled. Alice is creating her
A) business model.
B) mentoring plan.
C) code of ethics.
D) risk statement.
E) code of business.
19) Which of the following is NOT a reason for an organization to adopt planning and strategic
management?
A) developing MBO
B) encouraging new ideas
C) developing a sustainable competitive advantage
D) providing direction and momentum
E) setting long-term goals.
20) An entrepreneur would create a business plan to outline which of the following?
A) plans for financing and reducing competition
B) mentoring plans
C) important details and a code of ethics
D) goals and strategies with success measures
E) code of business
21) The first three steps in planning an organization are (in the correct order):
A) formulating strategic planning, creating a mission statement, and creating a vision statement.
B) formulating operational planning, creating a mission statement, and developing a hiring plan.
C) formulating strategic planning, implementing operational planning, and preparing a vision
statement.
D) writing a mission statement, assessing the current reality, and formulating strategic planning.
E) formulating tactical planning, implementing operational planning, and writing a mission
statement.
22) The planning process begins with two attributes: a mission statement and a vision statement.
What questions are answered with each of these?
A) What do we want to become?; What is our reason for being?
B) What are the costs?; How much money can I make?
C) What are the risks?; What is our reason for being?
D) What do we want to become?; What products do we offer at a profit?
E) What is our reason for being?; What do we want to become?
23) A mission statement expresses the
A) expected profitability of an organization.
B) purpose of an organization.
C) code of ethics.
D) market for the product.
E) types of employees needed.
24) Clothing maker The Gap states that its purpose as an organization is to "create emotional
connections with customers around the world through inspiring product design, unique store
experiences and competitive marketing." This is the company's
A) mission statement.
B) belief statement.
C) goals pact.
D) code of ethics.
E) management pledge.
25) Cozy Café is a restaurant chain that offers a relaxing environment to enjoy quality coffees,
teas, soups, and other menu items. A poster in the front of each restaurant reads, "We will always
provide a quality product to help our customers better meet the challenges of their day and will
always take the time to offer caring service one person at a time." This statement is Cozy Café's
A) belief statement.
B) goals pact.
C) mission statement.
D) code of ethics.
E) management pledge.
26) During a management meeting, Lester, the CEO of Elite Office Equipment, reminded his
management team of where the company wants to go as an organization: "Elite Office Equipment
is the expert that customers should always call regarding all their office equipment needs because
we strive to understand customer needs and provide the right answers for them." This statement is
Top Office Equipment's
A) belief statement.
B) goals pact.
C) code of ethics.
D) management pledge.
E) vision statement.
27) One Fortune article states that "vision should describe what's happening to the world you
compete in and what you want to do about it" and
A) "it should help reduce competition."
B) "it should guarantee organizational success."
C) "it should guide decisions."
D) "it should improve employee morale."
E) "it should reduce the glass ceiling."
28) The three levels of ________ are strategic, tactical, and operational.
A) planning
B) diversity
C) strategy
D) marketing
E) the environment
29) At the strategic level of planning, managers must pay attention to the environment outside the
organization, be future oriented, and
A) have more stability than at other levels.
B) have more control over employee issues.
C) have less competition.
D) deal with uncertain and competitive conditions.
E) be more likely to understand the competition.
30) How often should a company revise its strategic plan?
A) every five years rather than every two years
B) every five years rather than every ten years
C) every ten years
D) continuously
E) closer to every one or two years
31) The upper management of a large national insurance company has passed along the new goal
of improving customer service to the district managers. The district managers will set goals to be
achieved over the next 6 to 24 months as part of ________ planning.
A) working-level
B) tactical
C) middle-level
D) operational
E) strategic
32) Operational planning must be completed by first-line managers every ________, and tactical
planning is done by middle management every
A) year; 2 to 10 years.
B) 6 to 24 months; 1 to 52 weeks.
C) 1 to 52 weeks; 6 to 24 months.
D) 1 to 12 weeks; year.
E) year, if necessary; 1 to 90 days.
33) The upper-level managers of One World Enterprises are meeting for the week to look at the
long-term company goals and overall direction of the organization. The CEO has expressed his
concern over the economy and has told his managers to look closely at the environment outside the
organization before making decisions and to be future oriented. In this meeting, top managers of
One World are
A) writing a belief statement.
B) developing their goals pact.
C) producing their code of ethics.
D) doing strategic planning.
E) doing management pledging.
34) What type of planning is completed by middle managers?
A) writing a belief statement
B) developing a goals pact
C) producing a code of ethics
D) tactical planning
E) management pledging
35) Those who manage the work on the front lines are most involved with what component of the
planning process?
A) writing a belief statement
B) developing a goals pact
C) producing a code of ethics
D) management pledging
E) operational planning
36) If you are tasked with writing employee schedules and to-do lists for managers, what level of
planning are you involved in?
A) strategic planning
B) operational planning
C) delegation planning
D) human resource planning
E) tactical planning
37) The three types of MBO objectives are
A) performance, behavioral, and motivational.
B) strategic, performance, and behavioral.
C) learning, motivational, and proactive.
D) performance, behavioral, and learning.
E) strategic, motivational, and performance.
38) The top management of Fresh, a food distribution company, has set strategic goals of
increasing organizational market share and also decreasing corporate costs over the next three
years. Charles, a division manager for Fresh, has looked at his resources, and he has decided how
his division can contribute to the two strategic goals set by upper management: (1) by partnering
with another company and (2) by hiring a procurement manager to negotiate lower prices from
vendors. Charles' next step is to roll out his ________ to his staff.
A) vision statements
B) management guidelines
C) codes of ethics
D) tactical goals
E) operational goals
39) Denise owns several computer repair shops across the Northeast, and she has set a goal for her
company of cutting costs in all her locations over the next three years. Denise has set a(n)
A) tactical goal.
B) management guideline.
C) business plan.
D) strategic goal.
E) operational goal.
40) ________ are goals set by and for first-line managers and are concerned with short-term
matters associated with realizing tactical goals.
A) Lower-level objectives
B) Front-line goals
C) Tactical goals
D) Supervisory objectives
E) Operational goals
41) Setting a ________, Joy wants to sell 80 percent of her old merchandise prior to the new
arrivals shipping.
A) goal
B) vision
C) business plan
D) mission statement
E) norm
42) ________ can be another term used for a goal.
A) Task
B) Vision
C) Business plan
D) Objective
E) Norm
