BK Chapter 5 Definitions

Question 1

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

Answer 1

Situational Analysis

Question 2

Formal Planning Steps

Answer 2

1: Analyze the Situation
2: Generate alternative goals and plans
3: Evaluate goals and plans
4: Select goals and plans
5: Implement the goals and plans
6: Monitor and control performance

Question 3

A target or end that management desires to reach

Answer 3

Goal

Question 4

The actions or means managers intend to use to achieve organizational goals

Answer 4

Plans

Question 5

Focuses on achieving non-repeating goals

Answer 5

Single-use Plan

Question 6

Is designed to accomplish an enduring set of goals

Answer 6

Standing Plan

Question 7

Specifies actions when initial plans fail or events in the external environment create sudden change

Answer 7

Contingency Plan

Question 8

A narrative that describes a particular set of future conditions

Answer 8

Scenario

Question 9

A set of procedures for making decisions about the organization’s long-term goals and strategies

Answer 9

Strategic Planning

Question 10

Major targets or end results relating to the organization’s long-term survival, value, and growth

Answer 10

Strategic Goals

Question 11

A pattern of actions and resource allocations designed to achieve the organization’s goals

Answer 11

Strategy

Question 12

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a particular portion of the organization, such as a functional area like marketing

Answer 12

Tactical Planning

Question 13

The process of identifying the specific procedures and processes required at lower levels of the organization

Answer 13

Operational Planning

Question 14

A process that involves manager from all parts of the organization in the formulation and implementation of strategic goals and strategies

Answer 14

Strategic Management

Question 15

An organization’s basic purpose and scope or operations

Answer 15

Mission

Question 16

The long-term direction and strategic intent of a company

Answer 16

Strategic Vision

Question 17

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

Answer 17

Stakeholders

Question 18

Growth rates for the entire industry and key market segments, and projected changes in patterns and determinants of growth.

Answer 18

Industry Growth

Question 19

Threat of new industry entrants, threat of substitutes, economic power of buyers/customers, economic power of suppliers, and internal industry rivalry

Answer 19

Industry Forces

Question 20

Goals, strategies, strengths, and weaknesses of each major competitor

Answer 20

Competitor Analysist

Question 21

Legislation and regulatory activities and their effects on the industry

Answer 21

Legal Trends

Question 22

The level of political activity undertaken by organizations and associations within the industry

Answer 22

Political Activity

Question 23

Current and potential social issues and their effects on the industry

Answer 23

Social Issues

Question 24

Social interest groups: consumer environmental, and other activist groups that try to influence the industry

Answer 24

Social Interest Groups

Question 25

Key labor needs, shortages, opportunities, and problems confronting the industry

Answer 25

Labor Issues

Question 26

Economic factors that affect supply, demand, growth, competition, and profitability within the industry.

Answer 26

Macroeconomic Condiditons

Question 27

Scientific or technical methods that affect the industry, particularly recent and potential innovations

Answer 27

Technological Factors

Question 28

Inputs to a system that can enhance performance

Answer 28

Resources

Question 29

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

Answer 29

Core Capability

Question 30

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

Answer 30

SWOT Analysis

Question 31

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities

Answer 31

Corporate Strategy

Question 32

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Answer 32

Unrelated Diversification

Question 33

A strategy employed by an organization that operates a single business and competes in a single industry

Answer 33

Concentration

Question 34

The acquisition or development of new businesses that produce parts or components of the organization's product

Answer 34

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Question 35

The major actions by which an organization competes in a particular industry or market

Answer 35

Business Strategy

Question 36

A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

Answer 36

Low-cost Strategy

Question 37

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

Answer 37

Differentiation Strategy

Question 38

Strategies implemented by each functional area of the organization to support the organization's business strategy

Answer 38

Functional Strategies

Question 39

A system designed to support managers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action

Answer 39

Strategic Control System

Question 40

The state that exists when decision makers have insufficient information

Answer 40

Uncertainty

Question 41

The state that exists when decision makers have accurate and comprehensive information

Answer 41

Certainty

Question 42

The state that exists when the probability of success is less than 100 percent and losses may occur

Answer 42

Risk

Question 43

New, creative solutions designed specifically for the problem

Answer 43

Custom-made Solutions

Question 44

Ideas that have been seen or tried before

Answer 44

Ready-made Solutions

Question 45

A decision realizing the best possible outcome

Answer 45

Maximizing

Question 46

Choosing an option that is acceptable, although not necessarily the best or perfect

Answer 46

Satisficing

Question 47

Achieving the best possible balance among several goals

Answer 47

Optimizing

Question 48

People's belief that they can influence events, even when they have no control over what will happen

Answer 48

Illusion of Control

Question 49

A decision bias influenced by the way in which a problem or decision alternative is phrased or presented

Answer 49

Framing Effects

Question 50

A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits

Answer 50

Discounting the Future

Question 51

A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus

Answer 51

Groupthink

Question 52

A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges

Answer 52

Goal Displacement

Question 53

A structured debate comparing two conflicting courses of action

Answer 53

Dialectic

Question 54

A person who has the job of criticizing ideas to ensure that their downsides are fully explored

Answer 54

Devil's Advocate

Question 55

A process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed

Answer 55

Brainstorming

Question 56

A human-centered approach to innovation that integrates customers needs, the potential of technology, and the requirements for business success

Answer 56

Design Thinking