Chapter 5

Question 1

the managerial function that involves setting goals and deciding how to achieve them

Answer 1

planning

Question 2

reasons for planning

Answer 2

1. helps you check your progress
2. helps you coordinate activities
3. helps you be forward-thinking
4. helps you deal with uncertainty

Question 3

advantages of planning

Answer 3

1. provides direction and momentum
2. inspires new ideas
3. cultivates a sustainable competitive advantage

Question 4

disadvantages of planning

Answer 4

1. it’s time consuming

2. plans go obsolete quickly

Question 5

a blueprint for action that details how an organization is going to realize its goals

Answer 5

business plan

Question 6

describes the firm’s position, operations, competitive advantage, marketing strategy, method of financing, and expected revenues and expenses:

essentially, an outline of how an organization will deliver its value proposition

Answer 6

business model

Question 7

fundamentals of planning

Answer 7

1. mission statement
2. vision statement
3. strategic planning
4. tactical planning
5. operational planning

Question 8

explains an organization’s reason for operating

Answer 8

mission statement

Question 9

explains what an organization envisions itself becoming

Answer 9

vision statement

Question 10

planning by top managers for periods of 1 to 5 yrs; managers determine what the organization’s long-term goals should be

Answer 10

strategic planning

Question 11

planning by middle managers for periods of 6 to 24 mos; managers determine what contributions their department or similar work units can make with their given resources

Answer 11

tactical planning

Question 12

planning by first line managers for periods of 1 to 52 wks; managers determine how to accomplish specific tasks with available resources

Answer 12

operational planning

Question 13

what is included in a mission statement?

Answer 13

1. purpose (why organization exists)
2. business (what the organization is doing)
3. values (principles or beliefs that guide organization)

Question 14

specific commitments to achieve a measurable result within a stated period of time

Answer 14

goal

Question 15

focuses on objectives for the organization as a whole

Answer 15

strategic goals

Question 16

focuses on the actions needed to achieve strategic goals

Answer 16

tactical goals

Question 17

concerned with short-term matters associated with realizing tactical goals

Answer 17

operational goals

Question 18

plans developed for activities that occur repeatedly over a period of time; includes rules, procedures and policies

Answer 18

standing plans

Question 19

a standing plan that outlines the general response to a designated problem or situation

Answer 19

policy

Question 20

a standing plan that outlines the response to a particular problem or circumstance

Answer 20

procedure

Question 21

a standing plan that designates specific required action

Answer 21

rule

Question 22

plans developed for activities that are not likely to be repeated in the future

Answer 22

single-use plans

Question 23

a single-use plan encompassing a range of projects or activities

Answer 23

program

Question 24

a single-use plan that encompasses a smaller range of tasks or activities than a program

Answer 24

project

Question 25

a continuous feedback loop for each level of planning; includes two planning steps and two control steps

Answer 25

planning/control cycle

Question 26

planning steps of planning/control cycle

Answer 26

1. make the plan

2. carry it out

Question 27

control steps of the planning/control cycle

Answer 27

1. control the direction by comparing results with the plan

2. control the direction by taking corrective action in two ways: correcting deviations and improving future plans