Module 2

Question 1

What is the function of a tactical plan?

Answer 1

A tactical plan identifies the steps required to achieve the strategic goals of the organization. The plan is specific and is adjusted as the strategic goals are changed based on organizational and environmental conditions.

Question 2

What is the function of operations management in achieving strategic goals?

Answer 2

Transforming resources into profits

Question 3

A fast-food chain restaurant seeks to open three more locations in a geographic territory within a one-year time frame.
Which type of goal is being used for this expansion?

Answer 3

Short-term goals are operational issues a firm seeks to address within a one-year period.

Question 4

Over the course of the next three to five years, a firm looks to grow revenue by 10%, expand into two new geographic markets, and launch two new projects that are currently in the research and development stage.
Which business component is being addressed by this firm?

Answer 4

Long-term goals are mission-supporting activities that a firm seeks to accomplish within a three-to-five-year time frame.

Question 5

A marketing team sets a goal to increase its product market share by 10%.
Which other component of a SMART goal should this team include?

Answer 5

Time-bound -

The goal needs a defined deadline for it to be achieved.

Question 6

To ensure a productivity goal is met, a manager provides new computers and software updates for all employees in the company.
Which aspect of a SMART goal is reflected by this manager’s action?

Answer 6

Attainable -
When setting attainable SMART goals, it is important to make sure that the resources needed to accomplish a task are available to the employees.

Question 7

Which descriptor matches the component of the SMART goal Measurable?

Answer 7

Quantifiable -
A goal needs to be measurable in a very defined quantitative manner for it to be SMART. A SMART goal must be measurable or quantifiable in some manner.

Question 8

Which descriptor matches the component of the SMART goal Attainable?

Answer 8

Attainable -
A goal is best attainable when the team or employees who are working on the goal have an input in setting it. A SMART goal must be achievable with stakeholders providing input in the decision process.

Question 9

Which descriptor matches the component of the SMART goal Realistic?

Answer 9

Resource availability -
It is important that resources are available for the employees to meet the set goal. A SMART goal has to have appropriate resources for it to be realistic.

Question 10

Which descriptor matches the component of the SMART goal Time-constrained?

Answer 10

Deadline -
Deadlines help motivate work to meet a target date or dates. A SMART goal must have a well-defined deadline such a target date.

Question 11

Internal business processes matches with what KPI?

Answer 11

Infrastructure and technology - Internal business processes KPIs measure how the company is meeting its mission.

Question 12

Learning and growth matches with what KPI

Answer 12

Human capital - Learning and growth KPIs measure effective utilization of nonfinancial resources.

Question 13

Financial perspective matches with what KPI

Answer 13

Resource use - Financial perspective KPIs measure the company’s return on investment.

Question 14

objectives

Answer 14

A specific measurable action that must be taken to reach a goal

Question 15

strategy

Answer 15

A plan of action or policy that will be followed to achieve your goal

Question 16

portfolio

Answer 16

A range of investments of businesses held by an organization or person

Question 17

return on investment

Answer 17

The profit you receive for investing, which is calculated by dividing the amount of money gained by the cost of investment, expressed as a percentage

Question 18

market position

Answer 18

The customer’s preception of a brand or product in relation to its competition

Question 19

differentiated

Answer 19

A specialized product that is created to attain a competitive advantage in a specific segment of the market

Question 20

market segmentation

Answer 20

The process of dividing a market of potential customers into groups or segments

Question 21

economies of scale

Answer 21

A savings in cost to product a product due to the ability to produce it in large amounts of numbers

Question 22

strategic goals

Answer 22

The specific financial and nonfinancial objectives and results a company aims to achieve over a specific period of time, usually the next three to five years

Question 23

tactical plans

Answer 23

Tactical plans outline actions to achieve short-term goals, generally within a year or less. They are much narrower in focus and can be broken down into the departmental or unit level. Tactical plans outline what each department needs to achieve, how it must do so, and who has the responsibility for implementation

Question 24

quality assurance

Answer 24

Maintaining the desired level of quality in a product or services, using data or feedback to check each step in the process

Question 25

vendors

Answer 25

A person or company offering something for sale

Question 26

performance metric

Answer 26

The data and figures that are obtained to measure how well an organization and its employees are performing

Question 27

What are the 4 steps of strategic management process?

Answer 27

1. Strategic objectives and analysis
2. Strategic formulation
3. Strategic implementation
4. Strategic evaluation and control

Question 28

Name and explain the first step to the strategic management process.

Answer 28

1. Strategic objectives and analysis

An evaluation called a SWOT analysis is commonly used to perform both a thorough internal investigation of an organization to assess its strengths (S) and weaknesses (W) and an appraisal of the external competitive environment looking for any opportunities (O) or threats (T). A useful acronym, PESTLE, can be used to evaluate political, economic, social, technological, environmental, and legal factors that may affect an organization’s strategy.

Question 29

Name and explain the second step to the strategic management process.

Answer 29

2. Strategic formulation

Goals and objectives are written based on the information obtained from the PESTLE and SWOT analyses. Goals are broad, primary outcomes the organization is hoping to achieve. Objectives are measurable, quantitative statements a manager can use to evaluate an organization’s, department’s, or employees’ progress toward meeting their goals. Having a defined set of goals and objectives can help identify whether the organization needs to obtain additional resources, watch for a specific threat, or change a set of internal processes.

Question 30

Name and explain the third step to the strategic management process.

Answer 30

3. Strategic implementation

Sometimes referred to as strategic execution, this stage is when the planning stops, and the action begins. The best plans will not make up for poor implementation. Employees in the organization should be aware of their assignments, responsibilities, and authority. Management should provide any additional employee training necessary to meet the plan objectives during this stage, as well as allocate any necessary additional resources. Offering employees the tools required to implement the strategic plan, combined with personal motivation, leads to the best chance for successful implementation.

Question 31

Name and explain the fourth step to the strategic management process.

Answer 31

4. Strategic evaluation and control

Because internal and external conditions are always changing, this stage is crucial. Performance measurements (determined by the nature of the goal) will help determine if critical milestones are being met. Corrective actions are taken if the actual result varies from the strategic plan. Reexamining the goals or the measurement criteria to determine success may be necessary. If it becomes apparent that the strategy is not working according to plan, then new plans need to be formulated (see step 2) or organizational structures adjusted. Personnel may need to be retrained or shifted to other duties. The strategic management process may need to be reexamined or even redeveloped.2

Question 32

Define and discuss Porter’s three most effective strategies, cost leadership, differentiation, and market segmentation.

Answer 32

1. Cost leadership pertains to a firm’s ability to create econimies of scale through extremely efficient operations that produce a large volume. Cost leaders include organizations such as Procter & Gamble, Walmart, McDonald’s, and other large firms generating a high volume of goofs that are distributed at a relatively low cost (compared to competition.
2. Differentiation is less tangibles and easily defined, yet it still represents an extremely effective strategy when properly executed. Differentiation refers to a firm’s ability to create a good that is difficult to replicate, thereby fufulling niche needs. This strategy can include creating a powerful brand image, which allows the organization to sell its products or servies at a premium. Coach handbages are an excellent example of cost differentiation; the company’s margins are high due to the markup on each bag (which mostly covers marketing costs, not production).
3. Market segmentation is narrow in scope (both cost leadership and differentiation are relatively broad in scope) and is a cross between the two strategies. Segmentation targets finding specific segments of the market, which are not otherwise tapped by larger firms.

Question 33

What are the 5 aspects of S.M.A.R.T. goals?

Answer 33

1. Specific
2. Measurable
3. Attainable
4. Realistic
5. Timebound

Question 34

Describe the SMART goal aspect: Specific

Answer 34

Focused, well-defined, clear

Question 35

Describe the SMART goal aspect: Measurable

Answer 35

Quantifiable, verifiable, results-orientated, tangible

Question 36

Describe the SMART goal aspect: Attainable

Answer 36

Motivating, meaningful, rewarding

Question 37

Describe the SMART goal aspect: Realistic

Answer 37

Acceptable, agreed upon, stretching

Question 38

Describe the SMART goal aspect: Timebound

Answer 38

Deadline, schedule

Question 39

Discuss the importance of alignment between mission, vision, and objectives of an organization.

Answer 39

There should be traceable progression from the mission, through the tactical plans to the operational goals for each department in an organization. A broad mission statement makes it easier to remember and provides latitude in case the company is presented with an unexpected opportunity. However, the lack of definition makes it difficult for managers to use it to give direction to employees, THere should be clear alignment between everyday tasks, objectives, the mission, and the vision of an organization.

Question 40

“Bruce is developing quantitative statements to evaluate an organization’s department and employees progress toward meeting their goals. This is an example of:

a. Strategic objectives & analysis
b. Strategic formulation
c. Strategic implementation
d. Strategic evaluation”

Answer 40

b. Strategic formulation

Question 41

“Developing a well-integrated company using corporate strategies, producing products and services with a focus on customer satisfaction, maximizing the organization’s core competencies, and creating a system to measure competitive priorities are known as?

a. Operational strategies
b. Corporate strategies
c. Business strategies
d. Competitive strategies”

Answer 41

a. operational strategies

Question 42

“What type of plan or goal focuses on long-term goals, performance measures and major projects for the organizational to accomplish within a certain period of time?

a. Operational plan
b. Tactical plan
c. Strategic plan
d. SMART goal”

Answer 42

c. Strategic plan

Question 43

“A budget a company uses to make sure its expenses fall within financial parameters. It can also be used to evaluate an organization’s success and operationalize its strategy is called______?

a. Operating Budget
b. Financial Budget
c. Sales Budget
d. Master Budget”

Answer 43

d. Master budget