1) Which of the following is NOT a function of planning?

A) defining goals
B) identifying a strategy for attaining goals
C) settling disputes between employees
D) coordinating organizational activities

2) In informal planning, goals are usually ________ shared with others in the
organization.
A) written, but little is
B) unwritten, and little is
C) written, and much is
D) unwritten, but much is

3) Informal planning is ________.

A) always performed at the lowest organizational level
B) general and usually lacks continuity
C) performed exclusively by middle managers
D) more specific than formal planning

4) In formal planning, ________.

A) specific goals covering a period of years are defined
B) to maximize flexibility, specific goals are never spelled out
C) very broad general goals are developed
D) goals may be written or unwritten

5) Planning gives organizations a way to deal with change that ________.

A) eliminates all uncertainty
B) reduces uncertainty
C) reduces certainty
D) increases ambiguity

6) One effect of planning on managers is that it forces them to ________.

A) fear change
B) anticipate and consider the effect of change
C) work to prevent change
D) ignore any change that doesn't directly affect them
7) One criticism of formal planning is that it focuses on how to beat the competition
rather than how to ________.
A) have cordial relationships with the competition
B) focus on new opportunities
C) balance the organization's budget
D) cooperate with the competition

8) Studies of performance in organizations that plan have reached ________ with

respect to the benefits of formal planning.
A) somewhat negative conclusions
B) no conclusion
C) extremely negative conclusions
D) generally positive conclusions

9) Studies of planning show that the key to successful planning is to make sure that
the plans ________.
A) cover every possible detail
B) are high in quality and insight
C) are exceedingly simple to follow
D) are not shared with employees

10) Formal planning typically leads to which of the following?

A) higher profits
B) lower productivity
C) higher sales, but lower profits
D) tension between different management levels

11) The first step in the six-step strategic management process is to ________.
A) analyze the organization's strengths and weaknesses
B) identify the organization's mission
C) identify strategies to reach the organization's goals
D) analyze the opportunities the organization has

12) The first three steps of the strategic management process involve ________
strategies.
A) planning
B) implementing
C) evaluating
D) identifying

13) A mission statement includes identification of an organization's ________.

A) strengths and weaknesses
B) purpose and basic philosophy
C) assets and resources
D) resources and strengths

14) An external analysis, the second step of the strategic management process, helps
identify ________.
A) the products that a company makes
B) the long-term goals of a company
C) a company's opportunities and threats
D) a company's concern for its employees

15) An internal analysis, the third step of the strategic management process helps
identify ________.
A) opportunities and threats
B) resources and capabilities
C) opportunities and possibilities
D) values and philosophy

16) Which term refers to an organization's capital, workers, and patents?

A) resources
B) capabilities
C) abilities
D) core competencies

17) An organization's capabilities identify ________.

A) what the organization knows
B) who the organization is
C) assets that the organization can rely on
D) what the organization can do

18) Together, an organization's resources and core competencies make up which of

the following?
A) core philosophy
B) competitive weapons
C) core assets
D) fundamental beliefs

19) SWOT analysis identifies and analyzes an organization's ________.

A) strengths, weaknesses, opportunities, and threats
B) strategy for competing in the market
C) human resource assets
D) long-term goals

20) SWOT analysis combines ________.

A) a company's mission with its goals
B) external and internal analyses
C) a company's philosophy with its ethics
D) profit with productivity

21) Once SWOT analysis is complete, managers ________ to address the issues that
came up during the analysis.
A) formulate strategies
B) implement strategies
C) evaluate strategies
D) eliminate strategies

22) The three different types of strategies that managers implement are ________.
A) corporate, private, functional
B) corporate, competitive, functional
C) long-term, short-term, public
D) competitive, noncompetitive, corporate

23) Which of the following makes up the three main types of corporate strategies?
A) growth, vertical integration, horizontal integration
B) growth, retrenchment, renewal
C) renewal, retrenchment, diversification
D) growth, stability, renewal

24) Growth strategies include ________.

A) diversification, concentration, integration, stabilization
B) vertical integration, horizontal integration, concentration, diversification
C) vertical integration, horizontal integration, lateral integration, horizontal
concentration
D) integration, allocation, horizontal diversification, vertical diversification

25) A salad dressing company that buys a large olive grove to produce olive oil is
practicing which of the following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) horizontal integration

26) A sneaker company creating its own stores where it sells only its own brand is an
example of which of the following?
A) forward vertical integration
B) backward horizontal integration
C) forward horizontal integration
D) reverse vertical integration

27) In forward vertical integration, a company becomes its own ________, while in
backward vertical integration, the company is its own ________.
A) supplier; distributor
B) supplier; customer
C) distributor; monitor
D) distributor; supplier

28) Two movie studios combining to form one larger studio is an example of which of
the following?
A) forward vertical integration
B) horizontal integration
C) backward vertical integration
D) diversification

29) When Google purchased YouTube, a company that featured different, but related
products, Google was engaging in which of the following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) diversification
30) A company whose goal is to retain its ideal size and market share is employing
which kind of strategy?
A) noncorporate
B) growth
C) renewal
D) stability

31) Troubled companies seek ________ to address serious problems.

A) competitive strategies
B) corporate strategies
C) vertical and horizontal strategies
D) renewal strategies

32) To address limited, short-term problems, a company is most likely to employ a

________ strategy.
A) retrenchment
B) turnaround
C) doomsday
D) self-critical

33) A company that is on the verge of collapse or bankruptcy might employ this
strategy.
A) retrenchment
B) incremental improvement
C) turnaround
D) hunker down

34) Remedies that all renewal strategies employ include which of the following?
A) hiring efficiency experts
B) new ad campaigns
C) emulating competitors
D) cutting costs

35) A diversified corporation is likely to have ________.

A) multiple competitive strategies
B) a single competitive strategy
C) no more than two competitive strategies
D) thousands of competitive strategies
36) The thing that makes your product special is known as your ________.
A) assets
B) destruction device
C) competitive advantage
D) competitive strength

37) Competitive advantages for a high-prestige, premium coffee franchise like

Starbucks are likely to include all of the following EXCEPT ________.
A) high quality
B) lowest prices
C) well-trained employees
D) pleasant venues

38) A cost leadership competitive strategy focuses on which of the following?

A) efficiency
B) innovation
C) elegant design
D) luxury

39) Which of the following would you expect to find in a clothing store that follows a
cost leadership strategy?
A) only the finest, most expensive materials
B) pampered, personalized service
C) state-of-the-art design
D) basic, no frills, practical items

40) A company with a differentiation strategy focuses on making its products or

services ________.
A) unique and special
B) similar to its competitors
C) familiar
D) affordable

41) A differentiation strategy ________.

A) usually focuses on price
B) must focus on price
C) can focus on a brand image
D) can focus on value, but not service
42) A company that looks for a niche in the market is following which strategy?
A) cost leadership
B) differentiation
C) focus
D) turnaround

43) Which of the following describes a company that is following a focus strategy?
A) a software company that makes a wide variety of games and financial products
B) a software company that makes games for a wide audience
C) a software company that makes financial products for accountants, consumers, and
businesses
D) a software company that makes financial products for accountants only

44) According to Michael Porter, a company with good products that has no clear
competitive advantage is said to be ________.
A) perfectly positioned
B) stuck in the middle
C) in the wheelhouse
D) outside of the box

45) Most successful companies find that ________ a competitive advantage is almost
as difficult as developing a competitive advantage.
A) assessing
B) sustaining
C) modifying
D) eliminating

46) All of the following are threats to a sustainable, long-term competitive advantage
EXCEPT ________.
A) market stability
B) market instabilities and disturbances
C) evolution of the industry
D) new technology in the industry

47) Which of the following best defines plans?

A) documents that identify company problems
B) documents that define goals
C) documents that describe how goals will be met
D) documents that identify how goals from the past were met

48) In reality, all organizations have ________.

A) a single goal
B) multiple goals
C) the same goals
D) the same single goal

49) An organization's real goals and priorities are best revealed by ________.
A) its official stated goals
B) its actions in the marketplace
C) its statements to the press
D) its mission statement

50) In traditional goal setting, as they work their way from top management to
employees, goals are likely to ________.
A) become more clear
B) be more rigorously followed
C) be unchanged
D) become less clear

51) In a means-ends chain, a goal at a lower level ________.

A) is the bridge to a goal at the next higher level
B) is attained only after higher level goals are fulfilled
C) is separate from the goal at the next higher level
D) is ignored if goals at higher levels are attained

52) In management by objectives (MBO), goals ________.

A) must be easily accomplished
B) are jointly determined by employees and managers
C) are determined by top management
D) are developed by employees

53) In addition to being made by both managers and employees, MBO goals must be
________.
A) nonspecific and open-ended with regard to time
B) specific and open-ended with regard to time
C) specific and include an explicit time limit
D) nonspecific and include no time limit

54) The breadth of a plan refers to ________ concerns.

A) long-term versus short-term
B) strategic versus tactical
C) specific versus directional
D) single use versus standing

55) The specificity of a plan refers to ________ concerns.

A) long-term versus short-term
B) strategic versus tactical
C) specific versus directional
D) single use versus standing

56) Strategic plans address ________.

A) overall organizational goals
B) goals for a single branch of the organization
C) how overall goals are to be achieved
D) how a single goal is to be achieved

57) Which of the following defines the time frame of a long-term plan?
A) over seven years
B) over three years
C) under three years
D) over one year

58) Directional plans ________.

A) leave no room for interpretation
B) are flexible general guidelines
C) are difficult to modify
D) must be short-term plans

59) Standing plans typically can be used ________.

A) only once
B) only in conjunction with specific, long-term plans
C) twice at most
D) repeatedly
60) Top managers, for the most part, focus on this type of planning.
A) operational
B) strategic
C) tactical
D) short term

61) The more uncertain a situation is, the more ________ plans must be.
A) unspecific
B) long term
C) flexible
D) short term