Chapter 5

Question 1

Coping with uncertainty by formulating future courses of action to achieve specified results

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 proposed 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

Question 6

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

Why planning and strategic management are important?

Answer 7

(1) Provide direction and momentum
(2) Encourage new ideas
(3) Develop a sustainable competitive advantage

Question 8

Planning process begins with…..

Answer 8

(1) A mission statement
(2) A vision statement
(3) Values Statement

Question 9

What is our reason for being?

Answer 9

Mission statement

Question 10

What do we want to become?

Answer 10

Vision statement

Question 11

What values do we want to emphasize?

Answer 11

Values statement

Question 12

Purpose or reason for being

Answer 12

Mission

Question 13

Expresses the purpose of the organization

Answer 13

Mission Statement

Question 14

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 14

Vision

Question 15

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

Answer 15

Vision statement

Question 16

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 16

Values statement

Question 17

Strategic Planning for _______.

Answer 17

Top management

Question 18

Determine what the organization’s long term goals should be for the next one to five years with the resources they expect to have available

Answer 18

Strategic planning

Question 19

Tactical planning by __________.

Answer 19

Middle management

Question 20

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

Answer 20

Tactical planning

Question 21

Operational planning by ___________.

Answer 21

First line management

Question 22

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

Answer 22

Operational planning

Question 23

Specific commitment to achieve a measurable result within a stated period of time

Answer 23

Goal / Objective

Question 24

Long term goals are usually referred to as _________.

Answer 24

Strategic goals

Question 25

Tend to span 1-5 years and focus on achieving the strategies identified in a company's strategic plan

Answer 25

Strategic goals

Question 26

Short term goals are sometimes referred to as __________.

Answer 26

Tactical / Operational

Question 27

Shows how goals are connected or linked across an organization

Answer 27

Means end chain

Question 28

A plan that breaks long term output into short term targets or goals

Answer 28

Operating plans

Question 29

Defines the course of action needed to achieve a stated goal

Answer 29

Action plan

Question 30

Cover activities that are repeated or occur frequently over time

Answer 30

Standing plans

Question 31

Directs activity, that is unlikely to be repeated

Answer 31

Single use plan

Question 32

A goal that is specific, measurable, attainable, results oriented, and has target dates.

Answer 32

SMART goal

Question 33

Goals should be stated specific rather than vague terms.

Answer 33

Specific

Question 34

There should be someway to measure a goal

Answer 34

Measurable

Question 35

Goals should be challenging but realistic.

Answer 35

Attainable

Question 36

Goals should support the organization's vision

Answer 36

Result Oriented

Question 37

Goals should specify the deadline dates when they are able to be attained.

Answer 37

Target Dates

Question 38

A four step process in (1) which managers and employees jointly set objectives for the employees, (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 38

Management by objectives (MBO)

Question 39

For goal settings to be successful, the following three things have to happen:

Answer 39

(1) Top Management and Middle Management must be committed (2) The goals must be applied organization wide (3) Goals must cascade- be linked consistently down through the organization

Question 40

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 with an organization, including employees objectives and activities

Answer 40

Cascading goals

Question 41

Has two planning steps (1 & 2) and two control steps (3 & 4): (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 41

Planning / Control Cycle

Question 42

Corrective Action

Answer 42

(1) Correcting deviations in the plan being carried out | (2) Improving future plans