Strategic Management & Planning Flashcards
The purpose of _____ is to set goals and decide on the courses of action that will be used to achieve them.
planning
A business plan is a document that outlines
a proposed firm’s goals, strategy for achieving them, and standards for measuring success.
A firm’s business _______ should include a description of the need the firm will fill, the operations of the firm, its components and functions, and the expected revenues and expenses.
model
A business strategy, also known as a strategic _____, sets the long-term goals and direction for an organization.
plan
In the strategic management process, the organization’s strategies and strategic goals are formulated and implemented using
managers from all parts of the organization
The document that details how a company’s goals are to be met is called a(n)_____.
plan
A document that outlines a proposed firm’s goals, its strategy for achieving those goals, and the standards for measuring success is known as a _______.
business plan
True or false
One reason a company might create a bad strategic plan is because it might make incorrect assumptions about what will happen in the market going forward.
True
Select all that apply
Which three things should be included in a firm’s business model?
The firm’s marketing strategy, a description of the industry the firm is entering and expected revenues and expenses.
A company’s strategy can best be described as a(n) _______ about what long-term goals or direction to pursue for the survival or prosperity of the organization.
educated guess
Strategic _____ is a process that involves managers from all levels of the organization in the formulation and the implementation of strategies and strategic goals.
management
According to management scholar Gary Hamel, companies like Apple have succeeded because their spirit of _____ has allowed them to reinvent the basis of competition within an existing industry.
strategy innovation
The _______ process helps us to cope with uncertainty by formulating future courses of action designed to help achieve specified results.
planning
An organization has a sustainable competitive advantage when it can, for an extended period of time,
produce goods and services more effectively than its competitors do.
Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new opportunities.
whatever is in front of them.
An organization’s _____ is the purpose of the organization.
mission
The company’s mission statement tells us
the company’s reason for being.
Strategic planning can help encourage new ideas by stressing the importance of ______ in achieving long-range success.
innovation
The vision statement should answer which of these questions?
What do we want to become?
An organization’s ability to produce goods or services more effectively than its competitors is referred to as its
competitive advantage
Select all that apply
A company’s values statement expresses which of the following things?
what its products contribute to the world
the values its employees embody
what the company stands for
the company’s core priorities
An organization’s vision represents
where the organization wants to go.
Strategic planning is done by _____ managers.
top
The _____ statement expresses the purpose of an organization.
mission
A company’s _____ statement should provide a clear sense of the future and the actions needed to get there.
vision
Organizations use _____ planning to determine what contributions the departments or work units can make toward the organization’s strategic priorities and policies during the next 6 – 24 months.
tactical
A _____ statement expresses what the company stands for, its core priorities and what its products contribute to the world.
values
_________ planning is used to determine how to accomplish specific tasks with available resources within the next 1 – 52 weeks.
operational
Select all that apply
Strategic planning:
requires visionary and directional thinking
should communicate general goals and ways to achieve them
Match the level of management with the type of planning for which it is typically responsible.
a. top management
b. middle management
c. first-line management
top management - strategic planning
middle management - tactical planning
first-line management - operational planning
In business, a specific commitment to achieve a measurable result within a stated period of time is called a _____.
goal
Who is responsible for tactical planning?
middle management
A means-end chain is used in planning to show _____.
how goals are connected across an organization.
A(n) ________ provides a guide for a company’s long-term goals.
strategic plan
First-line managers are typically responsible for performing ______ planning within the organization.
operational
Select all that apply
Short-term goals
are connected to strategic goals
are also known as tactical or operational goals
Drag and drop the time frames of different types of planning against the corresponding types of planning.
a. strategic planning
b. tactical planning
c. operational planning
strategic planning - 1 to 5 years
tactical planning - 6 to 24 months
operational planning - 1 to 52 weeks
Select all that apply
Operating plans:
turn strategic plans into actionable short-term goals
break long-term output into short-term targets or goals
What are the two types of goals in business?
long-term and short-term
A(n) ______ plan defines the course of action a company should follow to achieve the stated goal.
action
Short-term (tactical) goals are connected to long-term (strategic) goals in a hierarchy called the _______.
means-end chain
Select all that apply
Which of the following are true of long-term goals?
Span 1 to 5 years, focus on achieving the strategies identified in the company’s strategic plan, and are also referred to as strategic goals.
A _____ plan is developed for activities that occur repeatedly over time.
standing
Tactical goals are considered ___-term goals.
short
It is the function of the _____ to take the strategic plan and develop actionable short-term goals that a business can achieve.
operating plan
An action plan
outlines the tactics that will be used to achieve a goal.
Drag and drop the descriptions of each type of plan against the corresponding types of plans.
a. standing
b. policy
c. procedure
d. rule
e. single-use
f. program
g. project
a. standing: for activities that occur repeatedly over time
b. policy: outlines general response to a designated problem
c. procedure: outlines response to particular circumstances
d. rule: designates specific required action
e. single-use: for activities not likely to be repeated in the future
f. program: encompasses a range of projects or activities
g. project: has less scope and complexity than a program
A means-end chain is used in planning to show ___.
how goals are connected across an organization.
A _____ goal is one that is specific, measurable, attainable, results-oriented, and has target dates.
SMART
A _____ plan directs activity, such as a project, that is unlikely to be repeated.
single-use
One of the characteristics of SMART goals is that they are stated in specific rather than vague terms. Match each goal below to indicate whether it is vague or specific.
a. vague
b. specific
Vague - As many planes as possible should arrive on time.
Specific - 90% of plans should arrive within 15 minutes of their scheduled arrival time.
The “measurable” aspect of a SMART goal refers to its ability to be _____.
quantified
A _____ plan outlines the general response to a designated problem or situation.
policy
Goals that are challenging but are realistic and achievable within the scope of the resources available to a company satisfy which aspect of SMART goal criteria?
attainable
SMART goals are
specific, measurable, attainable, results-oriented, and target dates
When stating a goal, it is a good idea to start with the word “To” and follow with an action-oriented verb such as “increase” or “acquire.” This describes the _____ aspect of SMART goals.
results-oriented
A _____ plan is developed for activities that occur repeatedly over time.
standing
Select all that apply
Which two goals meet the SMART goal characteristic of specifying a target date?
File tax return by April 15
Increase sales by the end of the 1st qtr
The letter S in the acronym SMART goal stands for what aspect of a good goal?
specific
Management by ______ is a four-step process in which managers and employees jointly set objectives, develop action plans, review performance, and appraise and reward employees.
objectives
Select all that apply
Which of these represent measurable goals?
No more than 50% of cars should be sold below MSRP.
Customer service agents should improve customer relations by making 10 follow-up calls each week.
What is the first step in management by objectives?
managers and employees jointly set objectives for the employee
In the terms of SMART goals an “attainable” goal is ___.
challenging but achievable
Match the type of objective used in MBO with its focus.
a. performance objective
b. behavioral objective
c. learning objective
a. performance objective - express the objective as an outcome or end-result
b. behavioral objective - express the objective as the behaviors needed to achieve an outcome
c. learning objective - express the objective in terms of acquiring knowledge or competencies
Select all that apply
Which of the following verbs would be appropriate for a results-oriented goal?
complete, acquire, or decrease
Select all that apply
Which of the following are reasons that employers value a proactive learning orientation?
It helps drive employee creativity and innovation.
Employees need to refine and enhance their skill sets throughout their careers.
The management team gave the IT department until October 15 to complete the software installation. Which aspect of SMART goals does this deadline demonstrate?
Target dates
The purpose of management by objectives (MBO) is to ______ subordinates.
motivate
What is the second step in management by objectives?
Employees are encouraged to develop an action plan.
Managers and subordinates jointly setting subordinate objectives is the _____ step in management by objectives.
first
The manager and employee periodically reviewing the employee’s performance represents the _____ step in management by objectives.
third
Select all that apply
Which of these are types of objectives used in management by objectives (MBO)?
performance, learning, and behavioral
Managers and subordinates meeting to appraise performance, discuss results, and allocate rewards is the _____ step in management by objectives.
fourth
A(n) _____ learning orientation represents the desire to learn and improve one’s knowledge, soft-skills, and other characteristics in pursuit of personal development.
proactive
Match the criteria for successful goal setting with their correct descriptions.
a. Top and middle management must be committed
b. Goals must be applied organization-wide
c. Goals must cascade
a. Top and middle management must be committed
Average gains in productivity are significantly higher when there is buy-in to the goal-setting process from upper levels of management
b. Goals must be applied organization-wide
The goal-setting program cannot be applied in only some divisions or departments; it must be in place throughout the whole company
c. Goals must cascade
The strategic goals set at the top must align downward with more specific, short-term goals set at lower organizational levels
Employees preparing action plans represents the _____ step in management by objectives.
second
What would occur in the third step of management by objectives?
You and your manager meet to review progress
Cascading goals is the process of _____.
ensuring that strategic goals at the top align with the short-term goals set at the lower levels in the organization
The fourth and final step in management by objectives involves _____.
the manager making a performance appraisal and rewarding the employee according to the results
Select all that apply
What are two advantages for a company that establishes deadlines?
Deadlines aid in making quicker decisions and motivate employees to focus on the goal.
Select all that apply
You can use the continuous feedback loop known as the _____ cycle to ensure you’re headed in the right direction once you’ve made plans.
planning/control
Select all that apply
For goal setting to be successful, what must occur?
Goals must cascade through the organization.
Top management must be highly committed.
Goals must be applied organization wide.
Making the plan and carrying out the plan represent the two _____ steps in the planning/control cycle.
planning
In which phase of the planning/control cycle does a company have the opportunity to get a project back on track if it is failing to meet assigned objectives?
Step 4 - Control the direction by taking corrective action
The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as _____ goals.
cascading
_____ help us to stay focused on the big picture, concentrate and make quicker decisions rather than putting them off, and ignore unimportant matters.
deadlines
Place the steps of the planning/control cycle in the correct order, with step one listed first (at the top) and step four listed last (at the bottom).
- Make the plan
- Carry out the plan
- Control the direction by comparing results with the plan
- Control the direction by correcting deviations and/or improving future plans
Select all that apply
The two planning steps in the planning/control cycle involve _____.
Making the plan
Carrying out the plan
Select all that apply
What are the two control steps in the planning/control cycle?
Control the direction by comparing results with the plan.
Control the direction by taking corrective actions.
