Chapter 5

Question 1

setting goals and deciding how to achieve them.

Answer 1

planning

Question 2

a document that outlines how goals are going to be met.

Answer 2

plan

Question 3

a document that outlines a firm’s goals, the strategy for achieving them, and the standards for measuring success.

Answer 3

business plan

Question 4

outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses.

Answer 4

business model

Question 5

sets the long-term goals and direction for an organization.

Answer 5

strategy/strategic plan

Question 6

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

Answer 6

strategic management

Question 7

“What is our reason for being?”

Answer 7

mission statement

Question 8

“What do we want to become?”

Answer 8

vision statement

Question 9

“What values do we want to emphasize?”

Answer 9

values statement

Question 10

Done by top managers for the next
1-5 years

Answer 10

strategic planning

Question 11

Done by middle managers for the next
6-24 months

Answer 11

tactical planning

Question 12

Done by first-line managers for the next
1-52 weeks

Answer 12

operational planning

Question 13

its purpose or reason for being.

Answer 13

mission

Question 14

expresses the purpose of the organization.

Answer 14

mission statement

Question 15

a long-
term goal describing “What” an organization wants to become. It is a clear sense of the future and the actions needed to get there.

Answer 15

vision

Question 16

expresses what the organization should become, where it wants to go strategically.

Answer 16

vision statement

Question 17

also called a core values statement, which expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world.

Answer 17

values statement

Question 18

they determine what the organization’s long-term goais should be for the next ons to five years with the resources they expect to have avallable.

Answer 18

strategic planning

Question 19

they determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months.

Answer 19

tactical planning

Question 20

they determine how to accomplish specific tasks with available resources within the next 1-52 weeks.

Answer 20

operational planning

Question 21

a specific commitment to achieve a measurable result within a stated period of time.

Answer 21

goal/objective

Question 22

They tend to span one to five years and focus on achieving the strategies identified in a company’s strategic plan.

Answer 22

long term/strategic goal

Question 23

They generally span 12 months and are connected to strategic goals in a hierarchy
known as a means-end chain.

Answer 23

short-term/tactical/operational/plain goals

Question 24

shows how goals are connected or linked across an organization.

Answer 24

means-end chain

Question 25

a plan that “breaks long-term output into short-term targets” or goals.

Answer 25

operating plan

Question 26

defines the course of action needed to achieve a stated goal.

Answer 26

action plan

Question 27

a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results.

Answer 27

management by objectives (MBO)

Question 28

the process of ensuring that the strategic goals set at the top level align, or “cascade,” downward with more specific short-term goals at lower levels within an organization, including employees’ objectives and activities.

Answer 28

cascading goals

Question 29

(1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action

Answer 29

planning/controlling cycle