Question 1

The strategic planning team for HomeTown Grocery was meeting to address the small but steady sales decline the store had experienced in the two years since Penny Pincher opened.The members began discussing possible changes to the company's current strategy when one of the managers suggested,"Let's cut back on some of the extra,more expensive services we offer and then we can lower prices to compete with Penny Pincher." By being more like their competitors HomeTown's competitive strategy could become ________.

Accepted Answer

By cutting back on services and focusing on price, HomeTown would be positioning itself in between a differentiated strategy (more expensive services) and a focused strategy (lower prices). This "stuck in the middle" strategy is generally considered ineffective and not a sustainable competitive advantage.

Question 2

List and describe the six steps in the strategic management process.

Accepted Answer

The answer of List and describe the six steps in...

Question 3

Penny Pincher demonstrates which competitive strategy?

Accepted Answer

Penny Pincher likely demonstrates a cost leadership strategy, which involves offering products or services at the lowest cost in the industry to attract price-sensitive customers.

Question 4

Each year your charitable organization hosts a gala dinner event.The theme and keynote speakers at the event change each year to reflect current community interests.This annual event yields large donations and creates extensive community awareness.Holding this event each year is an example of what kind of plan?

Accepted Answer

A standing plan is a long-term plan that is used repeatedly to address recurring situations, such as an annual event like the gala dinner. The theme and keynote speakers may change, but the overall structure and purpose of the event remain the same each year.

Question 5

Compare specific plans and directional plans.

Accepted Answer

The answer of Compare specific plans and directional plans....

Question 6

The New Delhi Market demonstrates which competitive strategy?

Accepted Answer

The fact that the market is located in New Delhi suggests that it may cater to a specific customer segment in that region, which indicates a focus strategy.

Question 7

Explain the cost leadership strategy according to Michael Porter.

Accepted Answer

The answer of Explain the cost leadership strategy according to...

Question 8

List and discuss two reasons for planning.

Accepted Answer

The answer of List and discuss two reasons for planning....

Question 9

Of the following tasks listed,which will be your first task in the strategic planning process for this charity?

Accepted Answer

Defining the charity's resources, capabilities, and core competencies is the first step in the strategic planning process. This will help determine what the charity can realistically achieve and what areas it needs to focus on during the planning process. Without this information, it would be difficult to formulate effective strategies or complete a SWOT analysis.

Question 10

You will need the participation and support of the members of the board in order to create and implement a formal strategic plan.Precious time and resources will be dedicated to the formal planning process,but you are certain that it is important.Which of the following would be one of the purposes of planning that you could explain to the board to gain their support?

Accepted Answer

By having a formal strategic plan, the charity will have a clear direction that can be communicated to all volunteers and staff members. This will ensure that everyone is working towards the same goals and objectives, which will help the organization to grow and be more effective in achieving its mission.

Question 11

Which of the following is an example of a well-designed goal for your charitable organization?

Accepted Answer

A well-designed goal should be specific, measurable, achievable, relevant, and time-bound (SMART). Option C is an example of a SMART goal because it specifies a 3% increase in donations each year for the next five years, which is measurable, achievable, and time-bound. Option A is not specific or measurable, and option D is not time-bound or measurable. Option B is specific and measurable, but it does not specify why the additional employees are needed or how it will contribute to the organization's mission.

Question 12

Define and discuss management by objectives (MBO).Compare it to traditional goal planning.

Accepted Answer

The answer of Define and discuss management by objectives (MBO).Compare...

Question 13

The board of directors expects your management efforts to increase the rate of growth for the charity.Consider the organizational strategies listed here.Which of the following would be a growth strategy for the charity?

Accepted Answer

Concentration strategy involves focusing on a specific market or product to increase growth. By concentrating on a particular cause or target population, the charity can increase its visibility and attract more donors, volunteers, and resources.

Question 14

In order to ensure that prices at Penny Pincher remain well below their competition,managers at Penny Pincher regularly review the best practices and pricing policies of other grocery stores.They then use this information to improve upon their current plans.Which planning tool are the Penny Pincher managers using?

Accepted Answer

The managers at Penny Pincher are using benchmarking as a planning tool by reviewing the pricing policies of other grocery stores and improving upon their current plans based on this information.

Question 15

You have been examining data from Statistics Canada regarding rates of charitable donation,the relationship between household income and charitable donation,and changing preferences regarding the sorts of charities Canadians prefer to support.With this information and historical donation data from the charity itself,you have constructed a model to predict donations for upcoming periods and create appropriate spending plans and budgets.Which planning tool have you been using?

Accepted Answer

The tool described involves examining data and constructing a model to predict future donations, which falls under the category of forecasting.

Question 16

Define planning and compare formal and informal planning as they are used in various organizations.

Accepted Answer

The answer of Define planning and compare formal and informal...

Question 17

Compare strategic plans and operational plans.

Accepted Answer

The answer of Compare strategic plans and operational plans....

Question 18

List and discuss criticisms of formal planning.

Accepted Answer

The answer of List and discuss criticisms of formal planning....

Question 19

The strategic planning team for HomeTown Grocery was meeting to address the small but steady sales decline the store had experienced in the two years since Penny Pincher opened.The members began discussing possible changes to the company's current strategy when one of the managers argued,"We have been successfully using service as a differentiation strategy for 20 years.This plan has served us well and we should continue with it as we intended." Which criticism of strategic planning is this team experiencing?

Accepted Answer

The answer of The strategic planning team for HomeTown Grocery...

Question 20

HomeTown Grocery has been experiencing a small but steady sales decline since Penny Pincher opened two years ago.It seems that for some items the people of Werdna prefer Penny Pincher's low prices to HomeTown's exceptional service.HomeTown's situation is concerning but is not desperate at this time.Which corporate strategy should HomeTown consider at this time?

Accepted Answer

The answer of HomeTown Grocery has been experiencing a small...

Quiz 3: Planning and Strategic Management