Module 5

Question 1

What are the basic steps in any planning process.

Answer 1

-Situational analysis
-Alternative goals and plans
-Goal and plan evaluation
-Goal and plan selection

Question 2

Situational analysis

Answer 2

A process planners use to gather, interpret, and summarize all information relevant to the planning issue under consideration

Question 3

Alternative goals and plans

Answer 3

-Goals are the target or ends the manager wants to reach.
-Plans are the actions or means the manager intends to use to achieve goals.

Question 4

Goal and plan evaluation

Answer 4

-evaluate advantages, disadvantages, and potential effects of each goal and plan.
-Prioritize their goals.

Question 5

Goal and plan selection

Answer 5

-Scenarios are used for selection: a narrative that describes a particular set of suture conditions.

Question 6

Describe how to integrate strategic planning with tactical and operational planning.

Answer 6

-The plans must be aligned and ideally they will be consistent, mutually supportive, and focused on achieving common purpose and direction.
-One way to do this is a strategy map

Question 7

strategy map

Answer 7

It is a tool for communicating strategic goals and helping employees understand the part they play.

Question 8

Identify elements of the external environment resources of the firm to analyze before formulating a strategy.

Answer 8

-Industry and market analysis
-Competitor analysis
-Political and regulatory analysis
-Social analysis
-Human resource analysis
-Macroeconomic analysis
-Technological analysis

Question 9

Identify elements of the internal resources of the firm to analyze before formulating a strategy.

Answer 9

-Financial analysis
-Marketing audit
-Operations analysis
-Other internal resource analysis
-Human resource assessment

Question 10

Core capability

Answer 10

A unique skill and/or knowledge an organization possess that gives it an edge over competitors

Question 11

How do core capabilities provide the foundation for business strategy.

Answer 11

-Core capabilities are the essential strengths and competencies that underpin a company’s business strategy.
-They help businesses identify their competitive advantage,
-allocate resources efficiently,
-position themselves in the market,
-adapt to changing circumstances.

Question 12

Corporate strategy

Answer 12

identifies the set of businesses, markets, and industries in which the company competes and how to allocate resources among those businesses.

Question 13

Summarize the types of choices available for corporate strategy.

Answer 13

-Concentration
-Vertical integration
-Concentric diversification
-conglomerate diversification

Question 14

Concentration

Answer 14

A strategy an organization uses to operate a single business and complete in a single industry

Question 15

Vertical integration

Answer 15

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

Question 16

Concentric diversification

Answer 16

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

Question 17

conglomerate diversification

Answer 17

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

Question 18

Discuss how companies can achieve competitive advantage through business strategy.

Answer 18

-Low-cost strategy
-Differentiation strategy

Question 19

Low-cost strategy

Answer 19

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

Question 20

Differentiation strategy

Answer 20

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

Question 21

Describe the keys to effective strategy implementation.

Answer 21

-Define strategic tasks
-Assess organization capabilities
-Develop an implementation agenda
-Implement

Question 22

Define strategic tasks

Answer 22

Define tasks to help employees understand how they contribute

Question 23

Assess organization capabilities

Answer 23

A group might so a job and summarize results for the top management

Question 24

Develop an implementation agenda

Answer 24

management decides how it will change its own activities and procedures

Question 25

Implement

Answer 25

execute the plan

Question 26

What about planning is accurate?

Answer 26

Tactical plans may have a time horizon of a year or two, whereas operational plans may cover a period of less than a year.

Question 27

Strategic goals are

Answer 27

Major targets or results that relate to the long-term survival, value, and growth of an organization.

Question 28

Mindful Maids Incorporated, a housecleaning services firm, has completed a SWOT analysis as part of its ongoing strategic planning process. Management has uncovered the following information through extensive research: New regulations have been passed limiting the number of hours per week the company’s employees can work without receiving benefits. 1. Mindful Maids is a company that uses environmentally friendly products; its competitors do not. 2. More and more homeowners are concerned about the environment; it is expected that this trend will continue for decades. 3. Compared to its competitors, its management team is by far the best in the industry. 4. It has fallen behind in staff training over the last few years. 5. The company has adequate financial resources to invest in its operations. 6. The percentage of people hiring cleaning services has fallen off due to a difficult recession. A threat for Mindful Maids is:

Answer 28

New regulations have limited the hours empolyees can work without benefits

Question 29

Mindful Maids Incorporated, a housecleaning services firm, has completed a SWOT analysis as part of its ongoing strategic planning process. Management has uncovered the following information through extensive research: New regulations have been passed limiting the number of hours per week the company’s employees can work without receiving benefits. 1. Mindful Maids is a company that uses environmentally friendly products; its competitors do not. 2. More and more homeowners are concerned about the environment; it is expected that this trend will continue for decades. 3. Compared to its competitors, its management team is by far the best in the industry. 4. It has fallen behind in staff training over the last few years. 5. The company has adequate financial resources to invest in its operations. 6. The percentage of people hiring cleaning services has fallen off due to a difficult recession. A opportunity for Mindful Maids is

Answer 29

more and more homeowners are concerned about the environment

Question 30

Mindful Maids Incorporated, a housecleaning services firm, has completed a SWOT analysis as part of its ongoing strategic planning process. Management has uncovered the following information through extensive research: New regulations have been passed limiting the number of hours per week the company’s employees can work without receiving benefits. 1. Mindful Maids is a company that uses environmentally friendly products; its competitors do not. 2. More and more homeowners are concerned about the environment; it is expected that this trend will continue for decades. 3. Compared to its competitors, its management team is by far the best in the industry. 4. It has fallen behind in staff training over the last few years. 5. The company has adequate financial resources to invest in its operations. 6. The percentage of people hiring cleaning services has fallen off due to a difficult recession. A weakness for Mindful Maids:

Answer 30

Mindful maids has fallen behind in staff training over the last serval years.

Question 31

Mindful Maids Incorporated, a housecleaning services firm, has completed a SWOT analysis as part of its ongoing strategic planning process. Management has uncovered the following information through extensive research: New regulations have been passed limiting the number of hours per week the company’s employees can work without receiving benefits. 1. Mindful Maids is a company that uses environmentally friendly products; its competitors do not. 2. More and more homeowners are concerned about the environment; it is expected that this trend will continue for decades. 3. Compared to its competitors, its management team is by far the best in the industry. 4. It has fallen behind in staff training over the last few years. 5. The company has adequate financial resources to invest in its operations. 6. The percentage of people hiring cleaning services has fallen off due to a difficult recession. A Stength for Mindful Maids is:

Answer 31

The management team of Mindful Maids is the best in the industry.

Question 32

In planning, the goal is to com up with a clear and ____ map to allow for unique circumstances and changing conditions.

Answer 32

flexible

Question 33

The managers at Foolproof Fabricators believe that several of the product ideas being considered have the potential of becoming iconic brands that will distinguish Foolproof from its competitors, which is one of their high-priority goals. In which of the following stages of the formal planning processes is Foolproof involved?

Answer 33

Goal and plan evaluation

Question 34

“I was surprised to find our corporate strategic plan to be so broad and general,” said Carlos to his manager, who replied, “That’s because, compared to tactical planning, strategic planning

Answer 34

Tends to involve much less detail

Question 35

Love Your Home is a housewares manufacturing company. The company’s basic purpose is “to be the place you want to call home.” The management states that the company’s long-term strategic intent is “to build an empire in the housewares industry, setting the trend for people to have fashionable and affordable household goods, easily available, wherever they may be.” Love Your Home’s long-term intent: To build an empire in the housewares industry, setting the trend for people to have fashionable and affordable household goods, easily available, wherever they may be.

Answer 35

Strategic vision

Question 36

Love Your Home is a housewares manufacturing company. The company’s basic purpose is “to be the place you want to call home.” The management states that the company’s long-term strategic intent is “to build an empire in the housewares industry, setting the trend for people to have fashionable and affordable household goods, easily available, wherever they may be.” Love Your Home’s basic purpose: To be the place you want to call home.

Answer 36

Mission Statement

Question 37

Juanita, a manager of a glassware company, is in the process of deciding what items to add to next year’s line of merchandise. For research purposes, she analyzed the past and present conditions of the market and also forecasted future trends. Which of the following steps of the formal planning process has Juanita performed?

Answer 37

Situational analysis

Question 38

Which of the following steps in the formal planning process helps managers know if their plan is working?

Answer 38

Monitor and control