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1)The speed of change and rapid flow of information increasingly require business plans that are flexible and dynamic

Management

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1)The speed of change and rapid flow of information increasingly require business plans that are flexible and dynamic.

 

 

 

 

 

2) Effective planning at top organizational levels impacts a firm's performance more than planning at middle and lower levels.

 

 

 

 

3) The setting of organizational objectives must be preceded by the development of organizational plans.

 

 

 

4) Strategic plans often have longer time frames and are broader in scope than tactical plans.

 

 

 

 

5) Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the near term.

 

 

 

 

6) Operational plans are more complex than strategic and tactical plans and have a direct effect on other plans outside of the department or unit for which the plan was developed.

 

 

7) Managers at the functional level focus on how they can achieve the competitive plan of the business.

 

 

 

8) The planning activities of functional managers are focused on how they can support the business and corporate plans.

 

 

 

9) Business-level managers typically are not involved in developing operational plans.

 

 

 

10) Environmental analysis, actions, implementations, and outcomes are all elements of the planning process.

 

 

 

11) The greater the environmental uncertainty, the more important it is for managers to stick to their original plan.

 

 

 

12) Managers should assess the firm's internal resources immediately following the analysis of the external environment.

 

 

13) One of the first challenges for managers as they set objectives is to determine priorities.

 

 

 

14) A Gantt chart tells us when actions should be started without showing how long actions are expected to take for completion.

 

 

 

15) Knowing who is responsible for specific actions facilitates coordination, especially if multiple people are involved in the execution of a plan.

 

 

 

16) A capital expenditure budget typically includes all primary activities on which the unit or organization plans to spend money and the amount allocated for each item during the year.

 

 

 

17) The principal negative consequence of incremental budgeting is that money may be allocated to a unit in the future merely because the unit had been allocated money in the past.

 

 

 

18) Zero-based budgeting assumes that all funding allocations must be justified from zero each year.

 

 

19) One way to determine that a goal is specific enough is by checking whether its achievement can be measured.

 

 

 

20) Contrary to popular belief, research shows that allowing employees to participate in the development of the goals does not really improve their commitment to the goals.

 

 

 

21) Even goals that are easily achieved have a large effect on the overall results at the organizational, unit, subordinate, or personal level.

 

 

 

 

22) Goals that are measured, specific, and realistic, and to which people are committed, need to be free from time restraints in order to be effective.

 

 

 

 

23) ________ serve as the future "end states" targeted by its managers.

A) Tactics

B) Strategies

C) Objectives

D) Plans

 

 

24) ________ is a decision-making process that focuses on the future of an organization and how it will achieve its goals.

A) Planning

B) Programming

C) Implementation

D) Budgeting

 

 

 

25) Which of the following is NOT a feature of tactical plans?

A) specificity

B) high complexity and broad scope

C) shorter time frames

D) focus on a single business within an organization

 

 

 

26) Which of the following statements is true about strategic plans?

A) They focus on the immediate functional aspects of an organization.

B) They have moderate interdependence and cross-functional relevance.

C) They have a narrow scope, a departmental focus, and a short time frame.

D) They focus on the broad future of the organization.

 

 

 

 

27) Which of the following statements is true regarding tactical plans?

A) They translate strategic plans into specific goals that apply to the entire organization.

B) They have longer time frames than strategic and operational plans.

C) They typically affect a single business within an organization and its product lines.

D) They are broader in scope than strategic plans.

 

 

28) Which of the following is the purpose of operational plans?

A) They focus on the broad future of the organization.

B) They translate tactical plans into specific goals/actions for small organizational units.

C) They underscore the interdependence of tactical and strategic plans.

D) They align tactical planning with the overall strategic direction of the company.

 

 

 

29) Which of the following business plans has the broadest scope?

A) strategic plans

B) tactical plans

C) operational plans

D) functional plans

 

 

 

30) Which of the following types of plans is the least complex and rarely has a direct effect on other plans outside of the department or unit for which they were developed?

A) strategic plans

B) tactical plans

C) operational plans

D) directional plans

 

 

 

 

31) What are the primary organizational levels of a corporation?

A) production, marketing, and sales

B) corporate, business, and functional

C) finance, human resources, and operations

D) production, marketing, and administration

 

 

32) Which of the following organizational levels is also known as the strategic business unit?

A) corporate level

B) business level

C) operational level

D) functional level

 

 

33) Which of the following issues is unlikely to be addressed by a corporate-level executive?

A) the industries that the organization should get into or out of

B) the resources to be allocated to each of the businesses

C) the businesses in which the organization should invest money

D) the advantages held over the business' competitors

 

 

 

34) Identify the question that managers at the strategic business unit (SBU) level would attempt to address.

A) "Who are our direct competitors?"

B) "What resources should be allocated to each of the businesses?"

C) "What industries should we get into or out of?"

D) "What activities does my unit need to perform well in in order to meet customer expectations?"

 

 

 

35) A manager of a local flower franchise is investigating her own company's strengths and weaknesses and comparing them with those of her competitors. She is operating at the ________ level.

A) corporate

B) business

C) functional

D) operational

 

 

36) Ted is a manager at the strategic business unit level of his organization. Which of the following would be one of his responsibilities?

A) facilitating the achievement of the competitive plan of the business

B) determining the activities to be performed to meet customer expectations

C) deciding whether to expand operations in Brazil

D) ensuring coordination across different departments of business

 

 

 

37) Identify the organizational level where managers would focus on how to facilitate the achievement of the competitive plan of a business.

A) strategic level

B) corporate level

C) functional level

D) business level

 

 

 

38) At the functional level of an organization, a manager would attempt to address the issue of:

A) evaluating the unit's strengths and weaknesses.

B) determining the advantages over competitors.

C) identifying the business' direct competitors.

D) assessing a competitor's strengths and weaknesses.

 

 

39) Ned heads the finance department of a business. At which organizational level is Ned functioning?

A) corporate level

B) strategic level

C) functional level

D) business level

 

 

40) In large organizations, strategic plans are typically developed at the ________ level.

A) corporate

B) business

C) functional

D) operational

 

 

 

41) Developing tactical plans is typically the responsibility of ________.

A) functional-level managers

B) business-level managers

C) operational-level managers

D) corporate-level managers

 

 

 

 

42) The planning responsibilities of functional-level managers largely focus on the development of ________ plans.

A) tactical

B) strategic

C) operational

D) corporate

 

 

 

43) Which of the following statements is true about the interrelationship between plan types and levels?

A) Business-level managers may be involved in developing strategic plans for their business units.

B) Corporate managers are usually involved in developing tactical plans for their businesses.

C) Business-level managers are involved in developing operational plans.

D) Functional-level managers largely focus on the development of tactical plans.

 

 

44) The manager of a residential construction business plans to build more houses next year because interest rates are falling and more people will be able to afford new homes. This plan is an example of ________.

A) benchmarking

B) contingency planning

C) forecasting

D) simulation

 

 

 

 

45) Prior to entering the Eastern European markets, Procter & Gamble assessed the strengths and weaknesses of possible competitors and noncompetitors in those markets. Procter & Gamble's actions can be classified as ________.

A) setting objectives and strategies

B) analyzing the external environment

C) determining corporate resources

D) monitoring contingent outcomes

 

 

 

46) ________ typically identify key factors that could affect the desired results and specify what different actions will be taken if changes in key events occur.

A) Strategic plans

B) Operational plans

C) Contingency plans

D) Tactical plans

 

 

47) ________ involves investigating the best practices used by competitors and noncompetitors and imitating those that can be done in the firm.

A) Benchmarking

B) Competitive intelligence

C) Forecasting

D) Corporate espionage

 

 

 

48) A manager of a local bookstore is trying to increase his store's productivity without hiring additional employees. He has noticed that a competitor is flourishing with relatively few employees and decides to investigate. This is an example of ________.

A) forecasting

B) benchmarking

C) competitive intelligence

D) contingency planning

 

 

 

49) Which of the following is an issue managers address when assessing the firm's internal resources?

A) evaluation of the available human capital

B) study of best practices of competitors and noncompetitors

C) incorporation of environmental uncertainty into the firm's plans

D) assessment of value of the firm's products or services

 

 

 

50) A community college has to decide if more budget is to be allocated for hiring new instructors or for developing new laboratory facilities. This is an example of ________.

A) determining priorities

B) forecasting

C) benchmarking

D) contingency planning

 

 

 

 

51) Which of the following statements regarding objectives is true?

A) Managers need to assign equal importance to all of the objectives.

B) Determining priorities for objectives is usually the final stage associated with setting objectives.

C) The importance of some objectives varies with time.

D) A clear understanding of the sequence of priorities has no significant impact on employee performance.

 

 

52) A Gantt chart can help managers devise an action plan in all of the following ways EXCEPT ________.

A) showing the sequence in which the actions will be completed

B) showing when actions will start and how long they require for completion

C) showing any expected overlap in the timing of specific actions

D) showing the course of action to be taken if plans need to be changed during the course of their implementation

 

 

 

53) Which of the following is NOT a key element in developing an action plan?

A) accountability

B) sequence and timing

C) monitoring the implementation

D) making real-time adjustments

 

 

 

54) Implementing plans is an important stage in the planning process because ________.

A) the of the plan's implementation can affect the results achieved

B) this phase overlaps with the analysis of the firm's external environment

C) the prioritization of objectives is undertaken during this stage

D) the objectives to be achieved are determined during this phase

 

 

55) A manager at a local bookstore is about to allocate extra floor space to an espresso counter when a new coffee shop opens next door. He stops implementation of his plan and instead looks into opening a juice bar. This an example of which of the following?

A) successful budgeting

B) real-time adjustment

C) sequence and timing

D) management by objectives

 

 

56) The final element in the planning process involves ________.

A) monitoring outcomes

B) implementing plans

C) assessing the firm's external environment

D) measuring objectives and assigning priorities

 

 

 

57) It is easier to gauge the outcome of a plan if it was expected to ________.

A) achieve greater employee commitment levels

B) improve the firm's financial performance

C) reduce the firm's susceptibility to environmental uncertainty

D) enhance the company's public image

 

 

 

 

58) ________ is a term that refers to the tool used to quantify and allocate resources to specific activities.

A) Budget

B) Contingency plan

C) Benchmarking

D) Accounting

 

 

 

59) A(n) ________ specifies the amount of money a company plans to spend on specific items that have long-term use and require significant financial investments.

A) capital expense budget

B) mission statement

C) operating budget

D) white paper

 

 

60) Sespi is a manufacturer of aerated drinks such as colas and other beverages. The finance department is planning to table a capital expenditure budget for the upcoming year. Which of the following items might be accounted for under this budget?

A) stationery items for offices

B) a new bottling plant

C) employee payroll

D) dividend payments for shareholders

 

 

 

 

61) A(n) ________ typically includes all primary activities on which the unit or organization plans to spend money and the amount allocated for each item during the year.

A) mission statement

B) expense budget

C) vision statement

D) profit and loss statement

 

 

62) The ________ requires a manager to start with the previous year's budget and then present arguments for why the upcoming year's budget should be increased or decreased.

A) performance-based budgeting approach

B) zero-based budgeting approach

C) income-based budgeting approach

D) incremental budgeting approach

 

 

63) A(n) ________ budget outlines how much money an organization needs, and it is submitted to a superior or a budget review committee.

A) approved

B) pro forma

C) proposed

D) linked

 

 

 

64) A catering company manager is proposing the purchase of a new van to enable the company to handle more deliveries. She is working on ________.

A) a sales pitch

B) a capital expenditure budget

C) an operating budget

D) a contingency plan

 

 

 

65) A(n) ________ specifies the amount of money the manager is authorized to spend and what items can be purchased or what expenses are allowed.

A) proposed budget

B) approved budget

C) operational budget

D) capital budget

 

 

 

66) What is "budget momentum"?

A) allocation of money to a unit in the future because that unit is expected to grow in the future

B) allocation of money to a unit in the future to mirror the current performance of that unit

C) allocation of money to a unit in the future because the unit had been allocated money in the past

D) allocation of money to a unit in the future based on the forecasted performance of that unit

 

 

 

67) Which one of the following is a benefit of zero-based budgeting?

A) Items that cannot be justified on their current merits will not be allocated money.

B) It requires less time to create than an incremental budgeting approach.

C) Managers can rely on last year's budget to identify patterns.

D) Expensive items can be justified based on their historical merits.

 

 

68) Which of the following statements is true of budgeting?

A) Research suggests that the incremental budgeting approach is most suitable for small to medium-sized enterprises.

B) Managers typically use budgeting as a planning tool to measure objectives and monitor outcomes.

C) As a planning tool, budgeting invariably helps managers make good decisions about the integration of organizational levels.

D) Budgeting processes do not guarantee that managers will make good decisions about organizational priorities.

 

 

69) What is the major problem with the goal, "We will become the best in the business"?

A) It is not specific enough.

B) It is too constricting.

C) It is not relevant.

D) It is not achievable.

 

 

 

 

70) Which of the following is NOT one of the five characteristics of effective goals?

A) specificity

B) abstractness

C) commitment

D) measurability

 

 

71) A manager tells his sales staff that he wants sales to increase by 18 percent during this year. Even though they are skeptical about whether this goal can be reached, most of them agree to it. However, they were unable to meet the target at the end of the year. Which of the following would best explain the failure to meet this goal?

A) If employees are only superficially committed to the goal, it will probably not be achieved.

B) If employees do not believe it is possible to achieve a goal, it is probably because the goal is too vague.

C) If employees are skeptical that a goal can be reached, it is because they do not know how their performance will be measured.

D) If a goal is too specific, employees will be demotivated by the impersonal nature of the goal.

 

 

 

72) Which of the following is NOT necessarily true about the goal, "We will achieve a 12 percent return on assets in the next six months"?

A) It is specific.

B) It is time-bound.

C) It is measurable.

D) It is realistic.

 

 

73) Which of the following is a reason why goals that are too easy to achieve are usually ineffective?

A) Employees are too financially motivated to achieve the goals.

B) The goals do not deliver substantial results.

C) Employees are daunted by having to perform at a level much higher than their capabilities.

D) The goals are not specific enough.

 

 

74) Altering the time frame for a goal is most likely to affect ________.

A) the specificity of the goal

B) the scope of the goal

C) the realism of the goal

D) the measurability of the goal

 

 

75) A company's vice president says, "I think we should do away with the practice of using forecasts as a basis for our plans. The results are not fully accurate." Which of the following would be the best rebuttal to this statement?

A) The fact that forecasting has not yielded exact results in the past does not mean that it will not do so in the future.

B) Companies in some other industries have effectively used forecasting for analyzing the potential of the external business environment.

C) Forecasts are meant to provide a general idea of the direction of future business and cannot be expected to be fully accurate.

D) Supply and demand conditions in the marketplace this year are expected to deviate significantly from historical averages.

 

 

 

 

76) Based on the available forecasts, a business' sales are expected to drop 20 percent in the current year as compared to the previous year. Which of the following will be a cascading effect of this forecast?

A) The company will have to raise prices to maintain profit margins.

B) Hiring will be lower during the year.

C) Competition is likely to reduce during the year.

D) The company will stock more inventory compared to the previous year.

 

 

77) The sales forecasts for the summer season for LocoPoco, a beverage company, indicated increased demand for its colas. However, the actual sales were 30 percent lower than expected. Which of the following could explain the apparent discrepancy above?

A) Research reports revealed that there are harmful additives in colas.

B) Competitors launched a new brand of bottled water in the market.

C) Forecasts were based on information derived from external sources.

D) The firm's advertising budget was slashed by 2 percent.

 

 

 

78) The executive of a certain company states that the firm should adopt the benchmark practices only of other firms in the same industry, as business conditions in other industries are significantly different. Which of the following is the underlying assumption in his argument?

A) The argument assumes that business practices are nontransferable across industries.

B) The argument assumes that firms cannot find unique and significantly better ways of doing things by looking outside their competitor set.

C) The argument suggests that noncompetitors face different business conditions that make appropriate comparisons difficult.

D) The argument is based on the assumption that benchmarking is an ineffective tool for investigating best practices of other firms.

 

 

 

79) Write a short note on strategic plans.

 

80) Describe operational plans and their importance for an organization.

 

 

81) What are the key planning issues that managers at the corporate level focus on?

 

 

 

82) What is the focus of executives at the business level?

 

 

 

83) Describe the process of benchmarking.

 

 

 

84) What strategic plans are evident in this scenario?

 

 

85) What tactical plans are evident in this scenario?

 

 

 

86) What operational plans are evident in the scenario?

 

 

87) Explain the organizational objectives in this scenario.

 

88) How might a Gantt chart be useful to Metal Craft?

 

89) What critical factors will Mr. Colfax need to monitor during the implementation of his plan?

 

 

 

90) Why might real-time adjustments in Metal Craft's plans be necessary?

 

 

91) Are Metal Craft's goals effective?

 

92) Did Mr. Able encourage the sales staff to develop a feeling of ownership toward the goals?