Question 1

To lower costs, the divisional head of an organization decides to set up the division's technical support center in another country. This is an example of a business-level strategy.

Accepted Answer

True

Question 2

Eastern Region Vice President Goodall works with her team of sales managers to develop a ________ plan, which defines the strategies, goals, and structure associated with achieving the company's objectives in the Eastern region of the United States.

Accepted Answer

A business-level plan defines the strategies, goals, and structure associated with achieving the company's objectives in a specific region or market.

Question 3

According to Henri Fayol, a plan has ________ when the management team develops a single, well-researched, and effective plan.

Accepted Answer

Unity in planning refers to the development of a single, cohesive plan that aligns with the organization's objectives, ensuring all efforts are directed towards the same goals.

Question 4

The first step in planning for an organization is

Accepted Answer

Determining the organization's missions and goals is the first step in planning, as it sets the direction and purpose for all subsequent planning activities.

Question 5

It is important that managers consider previous plans and make ongoing modifications that ensure plans at all levels fit together into one framework to achieve

Accepted Answer

Continuity ensures that plans are consistent and integrated over time, allowing for ongoing modifications and alignment across all levels.

Question 6

As CEO of his company, Bill works with a team of executives to make decisions pertaining to the organization's mission, overall strategy, and structure. These decisions are part of the organization's ________ plan.

Accepted Answer

Corporate-level plans involve decisions about the overall direction of the organization, including its mission, strategy, and structure, which are typically made by top executives like the CEO.

Question 7

A winery decides to manufacture its own bottles rather than purchase them from a bottle manufacturing company in order to reduce costs. The winery is employing a forward vertical integration strategy.

Accepted Answer

The answer of A winery decides to manufacture its own...

Question 8

In 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.

Accepted Answer

This is a corporate-level strategy as it involves a major decision by the company to enter a new market and expand its operations on a large scale.

Question 9

HiTech decides to begin distributing products in other countries, but it will not invest in customizations for any specific national market. HiTech is following a multidomestic strategy.

Accepted Answer

A multidomestic strategy involves customizing products and marketing strategies to fit the needs of specific national markets, which HiTech is not doing.

Question 10

A mission statement is the set of decisions that managers make to assist the organization in attaining its goals.

Accepted Answer

A mission statement is a formal summary of the aims and values of a company, organization, or individual, not the set of decisions made by managers.

Question 11

ACME is known for offering exclusive features that are not available by its competitors and charging a higher price for its appliances. ACME is following a differentiation strategy.

Accepted Answer

A differentiation strategy involves offering unique features that set a company's products apart from competitors, often allowing the company to charge higher prices.

Question 12

A brand of cereal attracts customers by offering the lowest prices among other brands of cereals. The company is using a differentiation strategy.

Accepted Answer

A differentiation strategy involves offering unique features or qualities that set a product apart from competitors, not just lower prices. Offering the lowest prices is a cost leadership strategy.

Question 13

The planning process is complete when appropriate business and corporate strategies are selected that allow an organization to attain its mission and goals.

Accepted Answer

The answer of The planning process is complete when appropriate...

Question 14

Sweet Style sells baby clothes in sizes for infants and children. They offer the lowest prices of any baby clothing retailer in the major cities along the East Coast. Sweet Style is following a focused low-cost strategy.

Accepted Answer

Sweet Style targets a specific market segment (infants and children) and competes by offering the lowest prices, which aligns with a focused low-cost strategy.

Question 15

According to Henri Fayol, an effective plan should have the qualities of unity, continuity, accuracy, and

Accepted Answer

Flexibility is one of the key qualities of an effective plan according to Henri Fayol, allowing it to adapt to changing circumstances.

Question 16

A computer operating system software manufacturer invests its profits to create newer versions of its operating system software to best leverage the ongoing advances in computer hardware. The company is following a diversification strategy.

Accepted Answer

The company is not diversifying; it is reinvesting in its core product, which is an operating system, to improve and update it, aligning with a product development strategy rather than diversification.

Question 17

The home page for a pet daycare says it strives to "provide an affordable and safe home away from home where your pets are treated like family and our employees love them like their own." This excerpt is part of the business's

Accepted Answer

A mission statement outlines the purpose and core values of a business, describing what it aims to achieve and how it intends to serve its customers, which aligns with the excerpt provided.

Question 18

A company creates a document in which it identifies internal and external conditions that affect planning. This is known as a competitive analysis.

Accepted Answer

This is known as a SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, and it assesses internal and external factors affecting planning.

Question 19

Celia is part of the team responsible for providing human resource planning and services for the rest of the company. Her team would be considered ________ managers.

Accepted Answer

Celia's team is responsible for a specific function within the company, which is human resource planning and services, making them functional-level managers.

Question 20

A(n)________ is a group of related managerial decisions and actions to help an organization achieve its goals.

Accepted Answer

A strategy is a comprehensive plan of action designed to achieve long-term goals and objectives, guiding managerial decisions and actions within an organization.

Quiz 8: The Manager As a Planner and Strategist