Basic Planning Process

Question 1

What is a situational analysis

Answer 1

A process planners use to gather, interpret, and summarize all information relevant to the planning issue under consideration.

Question 2

What are the steps followed for the specific formal decision-making process?

Answer 2

Situation analysis
Alternative goals and plans
Goal and plan selection
Implementation
Monitor and control

Question 3

What are the steps followed for the General decision-making stages?

Answer 3

Identifying and diagnosing the problem
Generating alternative solutions
Evaluating alternatives
Making the choice
Implementing
Evaluating

Question 4

What is a mission

Answer 4

An organization’s basic purpose and scope of operations

Question 5

What is a strategic vision

Answer 5

The long-term direction and strategic intent of a company.

Question 6

A strategic vision defines what?

Answer 6

The strategic vision points to the future—where the organization is headed and what it can become.

Question 7

What are stakeholders

Answer 7

Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.

Question 8

What is included in the macroenvironment

Answer 8

Includes legal, political, economic, technological, demographic, social, and natural factors that generally affect all organization

Question 9

What is competitive environment

Answer 9

The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.

Question 10

What is the purpose of an SWOT

Answer 10

Helps managers summarize the relevant, essential facts from their external and internal analyses.

It can identify the primary and secondary strategic issues the organization faces.

Used to formulate a strategy to pursue opportunities by capitalizing on the organization’s strengths, neutralizing its weaknesses, and countering potential threats.

Question 11

What is a core capability

Answer 11

A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.

Question 12

What is a competence?

Answer 12

A core competence typically refers to a set of skills or expertise in some activity rather than physical or financial assets.

Question 13

Describe what Porter’s Five Forces Model

Answer 13

Help managers analyze the competitive environment and adapt to or influence the nature of their competition.

Question 14

What are the elements of Porter’s Five Forces Model

Answer 14

Competitors
New Entrants
Substitutes and Complements
Suppliers
Customer

Question 15

How is Porter’s Five Forces Model used in the strategic planning process

Answer 15

Helps managers analyze the competitive environment and adapt to or influence the nature of their competition.

Question 16

What is Forward integration

Answer 16

A strategy where a firm gains ownership or increased control over its previous customers (distributors or retailers).

Question 17

What is Backward Integration

Answer 17

A strategy where a firm gains ownership or increased control over its previous suppliers.

Question 18

What a horizontal integration

Answer 18

Where a corporate usually acquires or mergers with a competitor in the same industry.

Question 19

When Forward integration strategy is effective

Answer 19

When few quality distributors are available in the industry.
When distributors or retailers have high profit margins.
When distributors are very expensive, unreliable or unable to meet firm’s distribution needs.
The industry is expected to grow significantly.
There are benefits of stable production and distribution.
The company has enough resources and capabilities to manage the new business.

Question 20

When is Backward integration strategy is most beneficial

Answer 20

The firm’s current suppliers are unreliable, expensive or cannot supply the required inputs.

There are only a few small suppliers but many competitors in the industry.

The industry is expanding rapidly.
The prices of inputs are unstable.
Suppliers earn high-profit margins.
A company has the necessary resources and capabilities to manage the new business.