Week 2

Question 1

A target or end that management desires to reach.

Answer 1

goal

Question 2

The actions or means managers intend to use to achieve organizational goals.

Answer 2

plans

Question 3

plans that focus on ongoing activities designed to achieve an enduring set of goals.

Answer 3

standing plans,

Question 4

Are plans that might be referred to as “what if” plans. They include sets of actions to be taken when a company’s initial plans have not worked well or if events in the external environment require a sudden change.

Answer 4

Contingency plans

Question 5

X are the targets or ends the manager wants to reach.

Answer 5

Goals

Question 6

Goals should be

Answer 6

specific, challenging, and realistic.

should be quantified and linked to a time frame.

They should be acceptable to the managers and employees charged with achieving them,

and they should be consistent both within and among work units.

Question 7

X are the actions or means the manager intends to use to achieve goals.

Answer 7

Plans

Question 8

X to a firm’s financials is a key element of success.

Answer 8

Tying plans

Question 9

A set of procedures for making decisions about the organization’s long-term goals and strategies.

Answer 9

strategic planning

Question 10

Major targets or end results relating to the organization’s long-term survival, value, and growth.

Answer 10

strategic goals

Question 11

A pattern of actions and resource allocations designed to achieve the organization’s goals.

Answer 11

strategy

Question 12

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.

Answer 12

tactical planning

Question 13

The process of identifying the specific procedures and processes required at lower levels of the organization.

Answer 13

operational planning

Question 14

X plans integrate all the bottom-line practices of the firm.

Answer 14

Ideally, strategic plans

Question 15

Starbucks’s emphasis on customer and service quality is a key element in its success.

Answer 15

Starbucks’s emphasis on customer and service quality is a key element in its success.

Question 16

This shows the relationship between a firm’s practices and its long-term success.

Answer 16

strategic map

Question 17

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

Answer 17

strategic management

Question 18

An organization’s basic purpose and scope of operations.

Answer 18

mission

Question 19

The long-term direction and strategic intent of a company.

Answer 19

strategic vision

Question 20

Note: “There is no more powerful engine driving an organization toward excellence and long-term success than an attractive, worthwhile, and achievable vision of the future.” Burt Nanus

Answer 20

“There is no more powerful engine driving an organization toward excellence and long-term success than an attractive, worthwhile, and achievable vision of the future.” Burt Nanus

Question 21

Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.

Answer 21

stakeholders

Question 22

Inputs to a system that can enhance performance.

Answer 22

resources

Question 23

Note: Amazon’s key customer benefits are speed and excellence of service.

Answer 23

Amazon’s key customer benefits are speed and excellence of service.

Question 24

The unique skills and/or knowledge an organization possesses that give it an edge over competitors.

Answer 24

core competencies

Question 25

Aligning a xxxxxxx with “best practices” can improve its competitiveness.

Answer 25

firm’s bottom line practices

Question 26

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.

Answer 26

SWOT analysis

Question 27

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities.

Answer 27

corporate strategy

Question 28

A strategy employed for an organization that operates a single business and competes in a single industry.

Answer 28

concentration

Question 29

The acquisition or development of new businesses that produce parts or components of the organization’s product.

Answer 29

vertical integration

Question 30

A strategy used to add new businesses that produce related products or are involved in related markets and activities.

Answer 30

concentric diversification

Question 31

Why do companies integrate vertically?

Answer 31

Companies that integrate vertically often do so to reduce their costs.

Question 32

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.

Answer 32

conglomerate diversification

Question 33

What do low price strategies require?

Answer 33

Low-price strategies usually require low production costs.

Question 34

The major actions by which a business competes in a particular industry or market.

Answer 34

business strategy

Question 35

A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.

Answer 35

low-cost strategy

Question 36

What is the advantage of a high cost strategy?

Answer 36

A high-quality strategy is often more difficult for competitors to imitate.

Question 37

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

Answer 37

differentiation strategy

Question 38

Strategies implemented by each functional area of the organization to support the organization’s business strategy.

Answer 38

functional strategies

Question 39

A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action.

Answer 39

strategic control system

Question 40

the six major components of the strategic management process:

Answer 40

(1) establishment of mission, vision, and goals; (2) analysis of external opportunities and threats; (3) analysis of internal strengths and weaknesses; (4) SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulations; (5) strategy implementation; and (6) strategic control. Because this process is a planning and decision process, it is similar to the planning framework discussed earlier.

Question 41

Name 5 Internal Resource Analysis

Answer 41

TABLE 4.2 Internal Resource Analysis

Financial Analysis

Examines financial strengths and weaknesses through financial statements such as a balance sheet and an income statement and compares trends to historical and industry figures (see Chapter 18).

Human Resources Assessment

Examines strengths and weaknesses of all levels of management and employees and focuses on key human resources activities, including recruitment, selection, placement, training, labor (union) relationships, compensation, promotion, appraisal, quality of work life, and human resources planning (see Chapters 10 and 11).

Marketing Audit

Examines strengths and weaknesses of major marketing activities and identifies markets, key market segments, and the competitive position (market share) of the organization within key markets.

Operations Analysis

Examines the strengths and weaknesses of the manufacturing, production, or service delivery activities of the organization (see Chapters 9, 16, and 17).

Other Internal Resource Analyses

Examine, as necessary and appropriate, the strengths and weaknesses of other organizational activities, such as research and development (product and process), management information systems, engineering, and purchasing.

Question 42

Name two types of resources

Answer 42

1) tangible assets such as real estate, production facilities, raw materials, and so on, and
(2) intangible assets such as company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.

Question 43

is the process of assessing how well one company’s basic functions and skills compare to those of some other company or set of companies.

Answer 43

Benchmarking

Question 44

What is the goal of benchmarking?

Answer 44

The goal of benchmarking is to thoroughly understand the “best practices” of other firms, and to undertake actions to achieve both better performance and lower costs.

Question 45

—that is, benchmarking their different internal operations and departments against one another to disseminate the company’s best practices throughout the organization and thereby gain a competitive advantage.

Answer 45

internal benchmarking

Question 46

What is the purpose of the swat analysis.

Answer 46

SWOT analysis to take advantage of available opportunities by capitalizing on the organization’s strengths, neutralizing its weakness, and countering potential threats.

Question 47

Note: individuals seeking a job or a career change can find a “self-SWOT analysis” helpful. What are you particularly good at? What weaknesses might you need to overcome to improve your employment chances? What firms offer the best opportunity to market your skills to full advantage? Will you have a lot of competition from other job seekers? As with companies, this kind of analysis can be the beginning of a plan of action and can improve the plan’s effectiveness.

Answer 47

individuals seeking a job or a career change can find a “self-SWOT analysis” helpful. What are you particularly good at? What weaknesses might you need to overcome to improve your employment chances? What firms offer the best opportunity to market your skills to full advantage? Will you have a lot of competition from other job seekers? As with companies, this kind of analysis can be the beginning of a plan of action and can improve the plan’s effectiveness.

Question 48

–identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.

Answer 48

Corporate Strategy

Question 49

most popular techniques for analyzing a corporation’s strategy for managing its portfolio is

Answer 49

the BCG matrix,

Question 50

How are companies categorized in a BCG matrix?

Answer 50

Each business in the corporation is plotted on the matrix on the basis of the growth rate of its market and the relative strength of its competitive position in that market (market share).

Question 51

High-growth, weak-competitive-position businesses are called question marks. They require substantial investment to improve their position; otherwise, divestiture is recommended. High-growth, strong-competitive-position businesses are called stars. These businesses require heavy investment, but their strong position allows them to generate the needed revenues. Low-growth, strong-competitive-position businesses are called cash cows. These businesses generate revenues in excess of their investment needs and therefore fund other businesses. Finally, low-growth, weak-competitive-position businesses are called dogs. The remaining revenues from these businesses are realized, and then the businesses are divested.

Answer 51

High-growth, weak-competitive-position businesses are called question marks. They require substantial investment to improve their position; otherwise, divestiture is recommended. High-growth, strong-competitive-position businesses are called stars. These businesses require heavy investment, but their strong position allows them to generate the needed revenues. Low-growth, strong-competitive-position businesses are called cash cows. These businesses generate revenues in excess of their investment needs and therefore fund other businesses. Finally, low-growth, weak-competitive-position businesses are called dogs. The remaining revenues from these businesses are realized, and then the businesses are divested.

Question 52

When is diversification needed?

Answer 52

the diversification efforts of an organization competing in a slow-growth, mature, or threatened industry often are applauded.

Question 53

How do you impliment corporate strategy?

Answer 53

Step 1: Define strategic tasks. Articulate in simple language what must be done in a particular business to create or sustain a competitive advantage. Define strategic tasks to help employees understand how they contribute to the organization. This also can redefine relationships among the parts of the organization.
Step 2: Assess organization capabilities. Evaluate the organization’s ability to implement the strategic tasks. A task force (typically) interviews employees and managers to identify specific issues that help or hinder effective implementation. Results are summarized for top management. In the course of your career you are likely to be asked to participate in a task force. We discuss working effectively in teams in Chapter 14.
Step 3: Develop an implementation agenda. Management decides how it will change its management pattern, how critical interdependencies will be managed, what skills and individuals are needed in key roles, and what structures, measures, information, and rewards might ultimately support specified behavior. A philosophy statement, communicated in value terms, is the natural outcome of this process.
Step 4: Create an implementation plan. The top management team, the employee task force, and others develop the implementation plan. The top management team monitors progress. The employee task force is charged with providing feedback about how others in the organization are responding to the changes.

Question 54

The ethical system stating that all people should uphold certain values that society needs to function.

Answer 54

universalism

Question 55

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States.

Answer 55

Caux Principles

Question 56

An ethical system defining acceptable behavior as that which maximizes consequences for the individual.

Answer 56

egoism

Question 57

An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

Answer 57

utilitarianism

Question 58

Bases ethical behavior on the opinions and behaviors of relevant other people.

Answer 58

relativism

Question 59

A perspective that what is moral comes from what a mature person with “good” moral character would deem right.

Answer 59

virtue ethics

Question 60

Classifies people based on their level of moral judgment.

Answer 60

Kohlberg’s model of cognitive moral development

Question 61

A perspective that what is moral comes from what a mature person with “good” moral character would deem right.

Answer 61

virtue ethics

Question 62

An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Answer 62

Sarbanes-Oxley Act

Question 63

In an organization it refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

Answer 63

ethical climate

Question 64

One who is both a moral person and a moral manager influencing others to behave ethically.

Answer 64

ethical leader

Question 65

Tip: Here’s a small but potentially powerful suggestion. 43 Change your vocabulary: The word “ethics” is too loaded, even trite. Substitute “responsibility” or “decency.” And act accordingly.

Answer 65

Tip: Here’s a small but potentially powerful suggestion. 43 Change your vocabulary: The word “ethics” is too loaded, even trite. Substitute “responsibility” or “decency.” And act accordingly.

Question 66

Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.

Answer 66

compliance-based ethics programs

Question 67

Company mechanisms designed to instill in people a personal responsibility for ethical behavior.

Answer 67

integrity-based ethics programs

Question 68

Obligation toward society assumed by business.

Answer 68

corporate social responsibility

Question 69

To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

Answer 69

economic responsibilities

Question 70

To obey local, state, federal, and relevant international laws.

Answer 70

legal responsibilities

Question 71

Meeting other social expectations, not written as law.

Answer 71

ethical responsibilities

Question 72

Additional behaviors and activities that society finds desirable and that the values of the business support.

Answer 72

philanthropic responsibilities

Question 73

An education with five higher goals that balance self-interest with responsibility to others.

Answer 73

transcendent education

Question 74

Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.

Answer 74

ecocentric management

Question 75

Economic growth and development that meets present needs without harming the needs of future generations.

Answer 75

sustainable growth

Question 76

A process of analyzing all inputs and outputs, though the entire “cradle-to-grave” life of a product, to determine total environmental impact.

Answer 76

Life-cycle analysis (LCA)

Question 77

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.

Answer 77

situational analysis