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Principles of Management > Module 2: Planning and Strategy > Flashcards

Module 2: Planning and Strategy Flashcards

1
Q

Preparation of which of the following is the most logical first step in developing an annual operating plan?

(A) A sales forecast by product
(B) A production schedule by product
(C) A flow-of-funds statement by product
(D) A plant and equipment requirement forecast
(E) A pro forma income statement and balance sheet

A

(A) A sales forecast by product

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2
Q

The preparations that a small town might make for a visit by the President of the United States would be considered what type of plan?

(A) Strategic
(B) Directional
(C) Standing
(D) Long-term
(E) Single-use
A

(E) Single-use

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3
Q

Which of the following is the primary concern of employees responsible for strategic planning in a company?

(A) Monitoring daily cash flow
(B) Determining the contribution each sub-unit should make to the overall corporation
(C) Determining how to accomplish specific tasks with available resources
(D) Determining how to pursue long-term goals with available resources
(E) Preparing the annual statement

A

(D) Determining how to pursue long-term goals with available resources

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4
Q

The statement that describes an organization’s reason for being is best described as:

(A) Vision statement
(B) Statement of purpose
(C) Mission Statement
(D) Operating goal
(E) Strategic plan
A

(C) Mission Statement

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5
Q

Which of the following control techniques is most likely to emphasize the importance of time?

(A) Break-even charts
(B) Physical standards
(C) Quality circles
(D) Variable budgeting
(E) Program Evaluation and Review Technique (PERT)
A

(E) Program Evaluation and Review Technique (PERT)

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6
Q

Which of the following describes the critical path in a Program Evaluation and Review Technique (PERT) process?

(A) Parts that require the most costly materials
(B) The most time-consuming sequence of events and activities
(C) The shortest route to the project completion
(D) The central guideline for quality control
(E) The property insurance

A

(B) The most time-consuming sequence of events and activities

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7
Q

Which of these is a strategic planning tool that allows the assessment of an organization’s strengths and weaknesses in responding to possible external events?

(A) Strength assessment
(B) Event Analysis Technique (EAT)
(C) SWOT Analysis
(D) Capacity Review
(E) Strategic Assessment
A

(C) SWOT Analysis

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8
Q

A home builder dominates a market by offering attractive options, higher quality, and value-added services. Which of the following competitive strategies has the home-builder adopted?

(A) Cost leadership
(B) Differentiation
(C) Price leadership
(D) Generic
(E) Organizing
A

(B) Differentiation

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9
Q

In the Generic Competitive Model, which of these would describe a competitor who concentrates on a small market niche and attempts to offer products to that niche at the lowest price?

(A) Generic Cost Leader
(B) Generic Differentiated Competitor
(C) Focused Cost Leader
(D) Focused Differentiated Competitor
(E) Niche Price Competitor
A

(C) Focused Cost Leader

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10
Q

In Michael Porter’s five forces model of global environmental scanning, which of the following is one of the five forces?

(A) Sociocultural factors
(B) Inflation
(C) Technology transfer
(D) Material artifacts of culture
(E) Power of suppliers
A

(E) Power of suppliers

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11
Q

Which of the following models classifies products as stars, question marks, cash cows, or dogs?

(A) Porter’s five forces model
(B) Theory X
(C) The Boston Consulting Group Matrix
(D) Theory Y
(E) Kanban
A

(C) The Boston Consulting Group Matrix

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12
Q

What curve shows the progress of sales of a new product from initial launch to final decline?

(A) BCG Matrix
(B) Product Adoption Curve
(C) Product Life Cycle Curve
(D) Product sales forecast
(E) The Leaman Curve
A

(C) Product Life Cycle Curve

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13
Q

Which generic competitive strategy targets a very specific niche market and offers customers a unique set of product benefits?

(A) Cost leadership
(B) Focused cost leadership
(C) Focused differentiation
(D) Focused market strategy
(E) Product development
A

(C) Focused differentiation

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14
Q

What economic principle describes the reduction of unit costs that come when the number of units produced is increased?

(A) Economic return
(B) Econometric analysis
(C) Economic development
(D) Economies of scale
(E) Competitive advantage
A

(D) Economies of scale

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15
Q

Which competitive strategy from Porter’s generic model uses unique product aspects to convince customers to pay a higher price?

(A) Cost leadership
(B) Focused cost leadership
(C) Focused marketing
(D) Differentiated competition
(E) Advertising model
A

(D) Differentiated competition

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16
Q

Which of the following should be the first step in a decision-making process?

(A) Implementing a decision
(B) Assigning the problem to qualified personnel
(C) Considering all alternatives
(D) Knowing when to decide
(E) Defining the problem
A

(E) Defining the problem

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17
Q

The process of discovering relationships and patterns in large amounts of data is called data

(A) mining
(B) clustering
(C) encryption
(D) networking
(E) warehousing
A

(A) mining

18
Q

Which type of decision typically involves extensive data collection and detailed analysis?

(A) Programmed decision
(B) Critical decision
(C) Time-sensitive decision
(D) Non-programmed decision
(E) group decision
A

(D) Non-programmed decision

19
Q

Which of the following is a quantitative technique that can be used to predict employee performance based on such factors as education, seniority, job-related skills, and job satisfaction?

(A) Time-series analysis
(B) Econometric modeling
(C) Sales force composition
(D) Econometric indicators
(E) Regression modeling
A

(E) Regression modeling

20
Q

What forecasting technique involves soliciting best-guesses and opinions from a broad variety of experts and then summing or averaging their responses?

(A) Delphi technique
(B) Group summation analysis
(C) Oswald-Baker scenario assessment
(D) Strategic averaging
(E) Team thinking
A

(A) Delphi technique

21
Q

Function of management that involves setting objectives and determining a course of action for achieving those objectives. Requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers.

(A) Planning
(B) Organizing
(C) Leading
(D) Controlling

A

(A) Planning

22
Q

The act of analyzing the critical external contingencies facing an organization in terms of economic conditions, competitors, and customers.

(A) Operational planning
(B) Tactical planning
(C) Strategic planning
(D) Environmental scanning

A

(D) Environmental scanning

23
Q

Involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment.

(A) Operational planning
(B) Tactical planning
(C) Strategic planning
(D) Environmental scanning

A

(C) Strategic planning

24
Q

Is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in this type of planning.

(A) Operational planning
(B) Tactical planning
(C) Strategic planning
(D) Environmental scanning

A

(B) Tactical planning

25
Q

Assumes the existence of goals and objectives and specifies ways to achieve them.

(A) Operational planning
(B) Tactical planning
(C) Strategic planning
(D) Environmental scanning

A

(A) Operational planning

26
Q

Describes what the organization wants to become. How you see yourself in the future.

(A) Mission statement
(B) Vision statement
(C) Organizational statement
(D) CEO statement

A

(B) Vision statement

27
Q

Which of the following is NOT part of the SWOT Analysis strategic management tool?

(A) Strength
(B) Weaknesses
(C) Opportunities
(D) Trouble

A

(D) Trouble

“Threats” is the T in SWOT.

28
Q

The thing that makes your organization uniquely competitive; what your organization can do better than your competitors and which is very difficult for them to duplicate.

(A) Technological advantage
(B) Product advantage
(C) Competitive advantage
(D) Competitor advantage

A

(C) Competitive advantage

29
Q

Which of the following is NOT a part of Michael Porter’s 5 Forces Model?

(A) Supplier power
(B) New competitors
(C) Substitute goods (new tech)
(D) Rivalry among existing companies
(E) Seller power
A

(E) Seller power

The fifth force is Buyer Power.

30
Q

In the Boston Consulting Group Matrix chart, which symbol is associated with a low market growth rate but relatively high market share?

(A) Star
(B) Question Mark
(C) Cash Cow
(D) Dog
(E) Eagle
A

(C) Cash Cow

31
Q

In the Boston Consulting Group Matrix chart, which symbol is associated with a low market growth rate and relatively low market share?

(A) Star
(B) Question Mark
(C) Cash Cow
(D) Dog
(E) Snail
A

(D) Dog

32
Q

Competitors who say they are different (and better), or their products are different (and better) from the rest of the pack. Must aim at specific customers in target markets. They normally don’t mention price, because they are often not the cheapest in the market.

(A) Cost leader competitors
(B) Differentiated competitors
(C) Strategic competitors
(D) Product competitors

A

(B) Differentiated competitors

33
Q

Are people/companies who make a living by cutting out costs and offering products at the lowest possible price (big chain discounters). They usually sell products that are not unique or better than a similar product, so they advertise that their products are similar to others, but are cheaper than the rest. High volume is key here.

(A) Cost leader competitors
(B) Differentiated competitors
(C) Strategic competitors
(D) Product competitors

A

(A) Cost leader competitors

34
Q

In the Average Total Cost (ATC) Curve, this refers to the situations where, as the long-run average cost of producing each individual unit increases as total output increases (can be due to extra production equipment, repairs, overtaxing workers, etc.).

(A) Economies of scale
(B) Diseconomies of scale
(C) Break-even scale
(D) Over/under scale

A

(B) Diseconomies of scale

35
Q

In risk and decision-making, these are essentially known as facts.

(A) Subjective probabilities
(B) Logical probabilities
(C) Objective probabilities
(D) Technical probabilities

A

(C) Objective probabilities

36
Q

In risk and decision-making, these are things we are not sure about; we guess about.

(A) Subjective probabilities
(B) Logical probabilities
(C) Objective probabilities
(D) Technical probabilities

A

(A) Subjective probabilities

37
Q

This type of risk indicates how much better the outcome could be from the forecasted outcome.

(A) Upside risk
(B) Downside risk
(C) Seasonal risk
(D) Tempered risk

A

(A) Upside risk

38
Q

This type of risk indicates how much worse it could be from the forecasted outcome.

(A) Upside risk
(B) Downside risk
(C) Seasonal risk
(D) Tempered risk

A

(B) Downside risk

39
Q

This decision-making type is lower risk and always made in in the same way. These decisions are made when certainty exists, and can be made by very junior people with little experience, or by computers.

(A) Programmed
(B) Non-programmed
(C) Rational
(D) Bounded rational

A

(A) Programmed

40
Q

This decision-making type is higher risk and require deep analysis before making. These decisions are made under conditions of uncertainty, and are usually made by technical experts, or very senior managers in an organization. These decisions often affect your long-term success that defend your competitive advantage

(A) Programmed
(B) Non-programmed
(C) Rational
(D) Bounded rational

A

(B) Non-programmed

41
Q

This type of decision-making tries to optimize (select the very best outcome) based on all available data and analysis. This is complex and involves huge amounts of data and time. This is used by companies that have lots of time and lots of money to spend on getting the best outcome. This seldom happens in real life. The chart below is an example of the process.

(A) Programmed
(B) Non-programmed
(C) Rational
(D) Bounded rational

A

(C) Rational

Principles of Management (7 decks)

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