IBP3

Question 1

• A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals. The plans are set by and for top management.
• is a high-level overview of the entire business, its vision, objectives, and values. This plan is the foundational basis of the organization and will dictate decisions in the long term. Crucial components include the vision, mission, and values.

Answer 1

Strategic Plan

Question 2

• A plan aimed at achieving the tactical goals set by and for middle management.
• Describes the tactics the organization plans to use to achieve the ambitions outlined in the strategic plan. It usually has a scope of a year or less and breaks down the strategic plan into smaller more actionable chunks. Components include specific goals with fixed deadlines, budgets, and resources.

Answer 2

Tactical Plan

Question 3

• Have a short-term focus. These plans are set by and for lower-level managers.
• Describes the day to day running of the company. The operational plan charts out a roadmap to achieve the tactical goals within a realistic timeframe. This plan is highly specific with an emphasis on short-term objectives. These can include policy, rules, and procedure.

Answer 3

Operational Plan

Question 4

A comprehensive plan for accomplishing an organization’s goals.

Answer 4

Strategy

Question 5

A way of approaching business opportunities and challenges–a comprehensive and ongoing management process aimed at formulating and implementing effective strategies.

Answer 5

Strategic Management

Question 6

Strategies that promote a superior alignment between the organization and its environment and the achievement of its goals.

Answer 6

Effective Strategies

Question 7

Skills and abilities enabling an organization to conceive of and implement strategies.

Answer 7

Organizational strengths

Question 8

Useful for competitive advantage and superior performance.

Answer 8

Distinctive competencies

Question 9

Occurs when a distinctive competence cannot be easily duplicated and is what remains after all attempts at strategic imitations have ceased.

Answer 9

Sustained competitive advantage

Question 10

• Are skills and capabilities that do not enable an organization to choose and implement strategies that support its mission.
• Can be overcome by:
• investments to obtain the strengths needed.
• modification of the organization’s mission so it can be accomplished with the current workforce.

Answer 10

Evaluating Organizational Weaknesses

Question 11

are areas in the organization’s environment that may generate high performance.

Answer 11

Organizational opportunities

Question 12

An organization seeks to distinguish itself from competitors through the quality of its products or services.

Answer 12

Differentiation strategy

Question 13

are areas in the organization’s environment that make it difficult for the organizationto achieve high performance.

Answer 13

Organizational threats

Question 14

• refers to expanding a company’s operations into new or unrelated products, services, markets, or industries.
• The number of businesses an organization is engaged in and the extent to which these businesses are related to one another.
• The goal of __________ is often to reduce the overall risk of the business and to generate new sources of revenue.

Answer 14

Diversification

Question 15

An organization attempts to gain competitive advantage by reducing its costs below the costs of competing firms.

Answer 15

Overall cost leadership strategy

Question 15

An organization concentrates on a specific regional market, product line, or group of buyers.

Answer 15

Focus strategy

Question 15

Implies an independently managed division of a large company or a semi-autonomous corporate unit that focuses on a product offering and market segment.

Answer 15

Strategic Business Units

Question 16

• A strategy in which an organization manufactures one product or service and sells it in a single geographic market.
• The __________________ has one major strength and one major weakness. By concentrating its efforts so completely on one product and market, a firm is likely to be very successful in manufacturing and marketing the product.

Answer 16

Single Product Strategy

Question 17

• A strategy in which an organization operates multiple businesses that are not logically associated with one another.

Answer 17

Unrelated Diversification

Question 18

• A strategy in which an organization operates in several different businesses, industries, or markets that are somehow linked.

Answer 18

Related Diversification

Question 19

Developed to carry out a course of action not likely to be repeated in the future.

Answer 19

Single-use plan

Question 20

Single-use plan for a large set of activities.

Answer 20

Program

Question 21

Developed for activities that recur regularly over a period of time.

Answer 21

Standing Plan

Question 22

Plan of less scope and complexity

Answer 22

Project

Question 23

Specifying the organization’s general response to a designated problem or situation

Answer 23

Policy

Question 24

Outlining steps to be followed in particular circumstances.

Answer 24

standard operating procedures

Question 25

Describing exactly how specific activities are to be carried out.

Answer 25

Rules and regulation

Question 26

is the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. These plans help managers to cope with uncertainty and change

Answer 26

Contingency Planning