Question 1

Knowing how the process should work and the expected results allows managers to evaluate the process and correct any deviations. This is an example of which benefit of planning?

Accepted Answer

This statement exemplifies the benefit of more effective control systems in planning. By understanding the expected process and outcomes, managers can monitor performance and make adjustments as needed, thereby exercising control over the process to ensure it aligns with planned objectives.

Question 2

John Thomas, a manager for Outback Steakhouse, Inc., has trouble finding time to plan. There are just too many other things to do. This consumption of time is referred to as a __________ of planning.

Accepted Answer

The time consumed in planning is considered a cost of planning. This is because it represents a resource that must be allocated towards planning activities, taking away from other potential uses of that time.

Question 3

Unisys Corporation operates in fast-paced environments. As a result, one of the disadvantages of planning that Unisys needs to guard against is that planning can

Accepted Answer

Planning, especially in fast-paced environments, can sometimes slow down the decision-making process because it involves taking time to set objectives, develop strategies, and outline tasks and schedules. This can be a disadvantage for companies like Unisys Corporation that need to make quick decisions to respond to rapidly changing market conditions.

Question 4

Traditionally, there have been two basic approaches to planning, depending on where in the organizational hierarchy the planning function was initiated. These two basic approaches to planning are referred to as

Accepted Answer

Top-down planning is initiated at the upper levels of the organizational hierarchy and is characterized by its directive nature, whereas bottom-up planning involves planning initiatives starting from lower levels of the organization, allowing for more employee input and engagement.

Question 5

Jim is a computer repair worker. He noticed that several of the firm's customers were asking him questions about networking computers. He suggested to his boss that Repair, Inc. expand into networking of computers - setting up networks for customers; advising customers how to maintain the networks; and, perhaps setting up a help desk for small companies that want networking. Jim's boss like the idea and thought his boss would also. He suggested that Jim give him a formal plan for a new network department to give to the company executives. This is an example of

Accepted Answer

Jim's suggestion to expand into networking services, based on customer inquiries and his own observations, is an example of bottom-up planning. This approach involves ideas and initiatives starting at the lower levels of the organization and moving upward for approval and implementation.

Question 6

At Mutual of Omaha, planning efforts begin with the board of directors and the top management team. This type of the planning by Mutual of Omaha is called __________ planning.

Accepted Answer

Top-down planning starts with the highest level of the organization, such as the board of directors and top management, and then flows down to the rest of the organization.

Question 7

Planning that is initiated at the lowest level in the organization is referred to as __________ planning.

Accepted Answer

Bottom-up planning is a strategy where planning starts at the lowest level of the organization and moves upward, allowing input from lower-level staff to influence the goals and strategies of the organization.

Question 8

In very large corporations, planning for the corporation as a whole, needs to be done __________ as the __________ have a better conceptual picture of the whole organization.

Accepted Answer

Top-down planning is typically done by the CEO and board of directors because they have the broadest perspective and can ensure that the planning aligns with the overall goals and vision of the organization.

Question 9

Before the NFL draft, certain players on the New Orleans Saints team suggested a particular player to their scouting department. The scouting department forwarded the name on to a position assistant coach. The position assistant coach forwarded the name to the assistant head coach, who in turn forwarded the name along to head coach, Jim Haslett. Jim Haslett then forwarded the name of the player to the general manager, Randy Mueller, who selected the player in the draft. In this scenario, the Saints organization is using __________ planning.

Accepted Answer

The scenario describes a process where suggestions originate from lower levels (players) and move up through the hierarchy to the general manager, indicating a bottom-up planning approach.

Question 10

Which of the following is the primary advantage of top-down planning?

Accepted Answer

The primary advantage of top-down planning is that it is driven by top managers who have the most comprehensive view of the organization, allowing for a unified direction and strategy.

Question 11

Which of the following is the primary advantage of bottom-up planning?

Accepted Answer

Bottom-up planning allows employees who are directly involved with customers, suppliers, and daily operations to contribute significantly to the planning process, leveraging their detailed knowledge and frontline insights.

Question 12

A primary purpose of the strategic planning process is to develop and maintain a/an

Accepted Answer

A primary purpose of the strategic planning process is to develop and maintain a competitive advantage, which helps an organization outperform its competitors.

Question 13

Strategic planning occurs at the following three primary levels within an organization:

Accepted Answer

Strategic planning typically occurs at three primary levels within an organization: corporate, business, and functional. Corporate level focuses on the overall direction of the entire organization, business level targets strategic decisions for individual business units, and functional level involves strategies for specific departments or functions.

Question 14

"What business should we be in? is the question asked at the __________ level.

Accepted Answer

The question "What business should we be in?" is typically asked at the corporate level, where decisions about the overall scope and direction of the company are made, including considerations about entering new markets or industries.

Question 15

At BellSouth's headquarters, decision-makers focus on developing a mix of business units that will meet the company's long-term growth and profitability goals. This is an example of __________ level strategic planning.

Accepted Answer

The focus on developing a mix of business units for long-term growth and profitability goals is characteristic of corporate-level strategic planning. This level of planning involves decisions that concern the entire organization rather than specific departments or business units.

Question 16

When the board of directors decided to expand Walmart Corporation by adding a new division called Neighborhood Market, it was an example of

Accepted Answer

Expanding Walmart Corporation by adding a new division falls under corporate planning, as it involves making high-level strategic decisions that affect the entire organization, such as launching new divisions or entering new markets.

Question 17

Which of the following statements is not true regarding corporate strategic planning?

Accepted Answer

Corporate strategy is not limited to a short-term perspective of six months to two years; it typically involves long-term planning and vision for the future of the organization, often extending several years into the future.

Question 18

When Darden Restaurants added Smokey Bones restaurants to their prior mix of Red Lobster and Olive Garden restaurants, it was an example of

Accepted Answer

Darden Restaurants' addition of Smokey Bones to their existing portfolio of Red Lobster and Olive Garden is an example of related diversification because all these restaurants operate within the food and dining industry, sharing similar markets and operational synergies.

Question 19

When Fisher-Price Toys was acquired by Quaker Oats, it was an example of __________. In 1993 when Fisher-Price joined the Mattel Family of Toys, it was an example of __________.

Accepted Answer

Quaker Oats acquiring Fisher-Price is an example of unrelated diversification because Quaker Oats primarily operates in the food industry, which is unrelated to Fisher-Price's toy business. When Fisher-Price joined Mattel, it was an example of related diversification because both companies operate in the toy industry.

Question 20

The managers of the Dairy Division of a company that also has a Fruit Juice Division and a Snack Foods Division should be focusing on what level of strategy?

Accepted Answer

Business level strategy is correct because it focuses on how to compete in a particular industry or market segment, which in this case is the dairy industry, a specific segment of the company's overall operations.

Quiz 5: Planning in the Contemporary Organization