MGT 526 Week 2

The third step in the planning process is ______.
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Terms in this set (54)
The third step in the planning process is ______.
choosing the most effective way to put strategies into action
A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals is a(n) ______.
strategy
Fayol stated that effective plans should have four essential qualities, including ______.
unity, continuity, accuracy, and flexibility
In large organizations, planning usually takes place at ______ level(s) of management.
three
What is it called when top management decides the industries and national markets in which their organization plans to compete?
A corporate-level strategy
Select all that apply

Which of the following are steps in the planning process of an organization? (Check all that apply.)

Determining the organization's mission and goals

Selecting the most effective way to implement organizational strategy

Improving the quality of products

Establishing organizational controls

Formulating strategies to achieve the goals
Determining the organization's mission and goals

Selecting the most effective way to implement organizational strategy

Formulating strategies to achieve the goals
How do managers typically distinguish time horizons?
Long-term plans, intermediate-term plans, and short-term plans
To achieve organizational goals, managers use ______ to launch courses of action that will move them towards their goals.
strategies
When the same situation occurs repeatedly, ______ plans are used.
standing
Drag and drop the qualities of an effective plan on the left with their corresponding definitions on the right.
Unity
Continuity
Accuracy
Flexibility
Unity: have only one guiding plan

Continuity: build and refine previous plans on an ongoing basis

Accuracy: collect and use all available information

Flexibility: alter or change plans when necessary
The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions is ______.scenario planningSelect all that apply In large organizations, planning usually takes place at three levels of management. They are _____, _____, and _____. (Check all that apply.) corporate business functional regional executivecorporate business functionalWhat should be the first critical component that the manager must define when determining an organization's mission?BusinessA plan that indicates in which industries and national markets an organization intends to compete is a ______ strategy.corporate-levelA time horizon is the intended ______ of a plan.durationWhen the CEO and other top managers communicate their vision for the company to the rest of the managerial staff, this is referred to as ______.strategic leadershipSelect all that apply Types of standing plans include: (Choose all that apply.) rolling plans. programs. policies. standard operating procedures (SOPs). rules.policies. standard operating procedures (SOPs). rules.From a managerial perspective, what is the purpose of formulating a set of corporate strategies?To help them achieve the corporation's missionJeremy forecasts what might happen if his company were to launch their new product into the market according to different schedules, prices, and features. He's thinking of making decisions to customize based on what he knows of his competitors' schedules and features. Jeremy is engaging in ______ planning.scenarioThe SWOT analysis components that are used to anticipate potential problems or opportunities for business growth outside an organization are ______, and for internal problems or assets of an organization are ______.threats and opportunities; weaknesses and strengthsThe overriding purpose of an organization is specified by its ______.missionThe five forces model identifies the factors as major threats because they affect ______.how much profit competitors within the same industry can expect to earnThe CEO and top managers use ______ to communicate to their managers and other employees a compelling vision of what they want the organization to accomplish.strategic leadershipSelect all that apply Which of the following are features of successful business-level strategies? (Check all that apply.) They increase profits. They strengthen the power of suppliers. They reduce rivalry. They increase rivalry.They increase profits. They reduce rivalry.The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals is known as ______.strategy formulationWhen managers make the decision to price their products below that of their competitors, they are using a ______ strategy.low-costStrengths, weaknesses, opportunities, and threats are components of a ______.SWOT analysisManagers use a ______ strategy to distinguish their products from those of their competitors by focusing on characteristics such as design, quality, and after-sale service.differentiationThe model that helps managers focus on the most important competitive forces in the external environment is the ______.five forces modelCompanies that try to specialize in one segment of the market and undercut the prices of the other sellers in the market are using a ______ strategy.focused low-costSelect all that apply A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its: (Choose all that apply.) goals. mission. synergy plan. diversity plan.mission goalsMichael Porter suggests that when managers choose a business-level strategy, their organization should ______ in a particular market.gain a competitive advantagePeople would come from all over the greater city lines for Sami's Sushi until the owner of Sami's decided to expand to some of the well-populated suburbs. This decision was a corporate-level strategy referred to as ______.concentration on a single industryTrue or false: The low-cost strategy drives down an organization's costs below those of its competitors. This strategy is aimed at serving a broad market.trueExpanding a company's operations into an industry that produces inputs for its products is ______ vertical integration.backwardDistinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service is an example of a ______ strategy.differentiationWhen a company decides to enter a new industry to gain a competitive advantage within one or more of the company's existing divisions, this is called ______.related diversificationMichael Porter identified two business-level strategies that only target one or two market segments. Match each strategy on the left with its description on the right.Focused low-cost strategy: Serves one or a few market segments and tries to offer the lowest prices serving that reduced segment ---- Focused differentiation strategy: Serves one or a few market segments and strives to differentiate their organization the most from the other competitors serving that segmentSelect all that apply Which of the following are principal corporate-level strategies? (Check all that apply.) Vertical integration Increased efficiency in one department of the factory Concentration on a single industry Improved employee morale in one of the locations International expansion DiversificationVertical integration Concentration on a single industry International expansion DiversificationA strategy that is customized and marketed to accommodate particular national conditions is a ________ strategy.multidomesticWhen a company reinvests its profits to strengthen its competitive position in its current industry, it is utilizing a(n) ______ strategy.concentration on a single industryIf a brewery decides to expand by buying the farms that produce the ingredients, this is an example of ______ integration.backward verticalThe corporate-level strategy of related diversification means companies enter an industry that creates a competitive advantage for an organization's ______.existing division or businessWhen a company customizes its products and marketing to fit specific national conditions, it is following a ______ strategy.multidomestic_______ increases costs and forces companies to raise the prices of their products.differentiationIn a small developing country, the percentage of the population switching to cellular technology in recent years has been rapidly increasing. A multinational telecommunication services company decides to take advantage of this change by installing network infrastructure and establishing a sales presence in that country. This is an example of a _______ strategy.corporate levelTo maintain profits while offering the best industry pricing to customers, a furniture company decides to order materials in larger quantities to realize larger discounts on materials. The company is employing a _______ strategy.low-costA _______ plan is generally reviewed and amended in conjunction with a company's annual financial budget cycles to take into account changing conditions in the external business environment.rollingAccording to the five forces model, _______ levels of competition for customers translate to _______ levels of profit in the industry.greater; lowerCustomers' changing demand for more healthful, low-salt soups was a(n) _______ Campbell.threat toThe growing markets for health and sports drinks, quality bread and cookies, and chocolate _______ Campbell.presented opportunities for growth forWhich elements were parts of Conant's examination of the external environment facing Campbell?analysis of opportunities and threatsThe most important part of the SWOT analysis at Campbell was thestrategy Conant put in place as a result of the analysis.When situations occur repeatedly, organizations can develop _______ plans to outline policies, rules, and standard operating procedures (SOPs) on how to handle those situations.standing