Ch. 5

Question 1

_____ is the process of developing a mission and long-range objectives and determining in advance how they will be accomplished.

Answer 1

Strategic planning

Question 2

_______ is the process of setting short-range objectives and determining in advance how they will be accomplished.

Answer 2

Operational planning

Question 3

A ___ is a plan for pursuing a mission and achieving objectives.

Answer 3

strategy

Question 4

A ______ focuses on the features in a company’s environment that most directly affect its options and opportunities.

Answer 4

situation analysis

Question 5

Through a ________, the internal environmental strength and weaknesses and external opportunities and threats are determined.

Answer 5

SWOT analysis

Question 6

_______ specifies how an organization offers unique customer value

Answer 6

Competitive advantage

Question 7

___ is the process of comparing the organization’s products/services and processes with those of other companies

Answer 7

Benchmarking

Question 8

___ state what is to be accomplished in specific and measurable terms with a target date.

Answer 8

Objectives

Question 9

_______ is the process in which managers and employees jointly set objectives for the employees, periodically evaluate performance, and reward according to the results.

Answer 9

Management by objectives

Question 10

____ is the overall corporate strategy of growth, stability, turnaround and retrenchment, or, for some, a combination.

Answer 10

Grand strategy

Question 11

____ include concentration, forward and backward integration, and related and unrelated diversification.

Answer 11

Growth strategies

Question 12

A ___ occurs when two companies form one corporation.

Answer 12

merger

Question 13

An _____ occurs when one business buys all or part of another.

Answer 13

acquisition

Question 14

______ is an agreement to share resources that do not necessarily involve creating a new company

Answer 14

Strategic alliance

Question 15

A ___ is created when two or more firms share ownership of a new company.

Answer 15

joint venture

Question 16

_______ is the corporate process of determining which lines of business the corporation will be in and how it will allocate resources among them.

Answer 16

Business portfolio analysis

Question 17

_____ include prospecting, defending, and analyzing

Answer 17

Adaptive strategies

Question 18

___ are developed and implemented by managers in marketing, operations, HR, finance, etc.

Answer 18

Functional strategies

Question 19

___ are policies, procedures, and rules developed for handling repetitive situations.

Answer 19

Standing plans

Question 20

___ provide general guidelines to be followed when making decisions.

Answer 20

Policies

Question 21

A ___ is a sequence of actions to be followed in order to achieve an objective

Answer 21

procedure

Question 22

__ state exactly what should/shouldn’t be done

Answer 22

Rules

Question 23

_____ are programs and budgets developed for handling nonrepetitive situations.

Answer 23

Single-use plans

Question 24

_________ are alternative plans to be implemented if uncontrollable events occur.

Answer 24

Contingency plans

Question 25

____ is hiring others outside the firm to perform work worldwide.

Answer 25

Global sourcing

Question 26

In ____, a licensor agrees to give a licensee the right to make its products/services/use its intellectual property in exchange for a royalty.

Answer 26

licensing

Question 27

In ___ the franchisor licenses the entire business to the franchise for a fee and royalties.

Answer 27

franchising

Question 28

With global ________, a company has a foreign firm manufacture the products and sells it as its own

Answer 28

contract manufacturing

Question 29

_____ is the building/buying of operating facilities in a foreign country.

Answer 29

Direct investment

Question 30

What are the 5 planning dimensions?

Answer 30

1. managment level 2. type of plan 3. scope 4. time 5. repetitiveness

Question 31

What are the two types of plans?

Answer 31

1. strategic planning 2. operational planning

Question 32

Is there a difference between a plan and a strategy?

Answer 32

Yes

Question 33

Which planning levels and their strategies are part of strategic planning

Answer 33

a. corporate - growth, stability, turnaround and retrenchment, combo b. business - Adaptive, competitive c. functional - standing and single-use

Question 34

What are the 5 steps in the strategic planning process?

Answer 34

1. develop the mission 2. analyze the environment 3. set objectives 4. develop strategies 5. implement and control

Question 35

What is the relationship between the mission statement and developing strategies?

Answer 35

It keeps who we are at the forefront.

Question 36

Why is a company situation analysis part of the strategic planning process?

Answer 36

To keep up with changes that require a shift in strategy

Question 37

What is the "writing effective objectives model?

Answer 37

1. to 2. action verb 3. specific and measurable result 4. target date

Question 38

What criteria should the objective meet?

Answer 38

specific, measurable, target date

Question 39

What is the difference between a merger and an acquisition?

Answer 39

Mergers: Companies combine to form one corporation Acquisition: when a company buys part/all of another

Question 40

What are the adaptive strategies?

Answer 40

1. prospecting 2. defending 3. analyzing and imitation

Question 41

What is the relationship between grand and adaptive strategies?

Answer 41

I. Prospecting resembles the grand strategy of growth II. Defending resembles the grand strategy of stability III. Analyzing and imitation reflect the combination strategy of the grand strategy

Question 42

What are the competitive strategies?

Answer 42

I. Differentiation II. Cost leadership III. Focus

Question 43

What are the common functional strategy areas?

Answer 43

I. Marketing II. Operations III. Finance IV. HR

Question 44

What is the difference between standing and single-use plans?

Answer 44

Standing plans: used in repetitive situations Single-use plans: used only one time for a specific purpose

Question 45

Explain the use of a time log.

Answer 45

It is used to measure how we spend our time in short increments.

Question 46

List and briefly describe the 3 steps in the time management system.

Answer 46

1. plan each week 2. schedule each week 3. schedule each day.

Question 47

What are the 4 trade barriers?

Answer 47

1. embargos 2. Quotas 3. subsidies 4. tariffs

Question 48

What is the role of the World Trade Organization (WTO)?

Answer 48

To open trade for the benefit of all.

Question 49

What are the 6 trade agreements?

Answer 49

1. US-Mexico-Canada Agreement 2. Dominican Republic-Central America Free Trade Agreement 3. Union of South American Nations 4. European Union-Maastricht Treaty of Europe 5. Association of Southeast Asian Nations 6. Asia-Pacific Economic Cooperation

Question 50

What is the difference between a license and a franchise?

Answer 50

In licensing: a licensor agrees to give a licensee the right to make its products/use its intellectual property in exchange for royalty. In franchising: the franchisor licenses the entire business to the franchisee for a fee and royalties.

Question 51

What is the difference between a strategic alliance, joint venture, and direct investment?

Answer 51

Strategic alliance: an agreement to share resources, but not necessarily involve creating a new company. Joint Venture: when 2+ share ownership of a new company Direct investment: the building/buying of operating facilities.

Question 52

What do international and multinational companies have in common?

Answer 52

Creating alliances to compete on an international scale.