CHAPTER 3ESSENTIALS OF PLANNING

MULTIPLE CHOICE

1. Planning is
a. a complex and comprehensive process involving interrelated stages.
b. organizing, implementing, and controlling.
c. finding the best person for a job.
d. communicating effectively with stakeholders.


2. Strategic plans are designed to
a. implement operational plans.
b. establish day-by-day procedures.
c. shape the destiny of the firm.
d. carrying out the functions of management.


3. The purpose of tactical planning is to
a. establish a general purpose for the organization.
b. translate strategic plans into specific goals and plans for organizational units.
c. tell entry level workers what to do on a daily basis.
d. compensate for past mistakes.


4. Branch manager Hector establishes recycling goals for his branch to support the
company's strategic goal of being a good environmental partner. What is Hector doing?
a. tactical planning
b. strategic planning
c. long-range planning
d. vision formulation


5. __________ identifies the specific procedures and actions required at lower levels in the
organization.
a. Tactical planning
b. Strategic planning
c. Long-range planning
d. Operational planning

6. __________ includes measuring success and examining internal capabilities and external
threats.
a. Defining the present situation
b. Implementing the plan
c. Controling the plan
d. Developing the buget

7. __________ consists of the specific steps necessary to achieve a goal or objective.
a. A strategic plan
b. An action plan
c. A long-range plan
d. A vision plan

8. A study of CEO failure indicated that 70 percent of the time their failures were attributed to
a. poorly developed plans.
b. poor execution, not poor planning.
c. over-ambitious plans.
d. lack of adequate cost controls.


9. A manager controls the plan when he or she
a. creates a vision statement.
b. creates a mission statement.
c. establishes a budget to pay for the action plan.
d. checks to see how well goals are being attained.


10. A contingency plan is implemented if the
a. strategic plan is too modest.
b. control processes do not work.
c. original plan cannot be implemented.
d. action plan succeeds.


11. Planning does not end with ________________, because plans may not always proceed as
conceived.
a. action plans
b. controlling
c. implementation
d. Budgets

12. Many planners develop a set of ______________ plans to be used in case things do not
proceed as hoped.
a. back-up
b. action
c. primary
d. budget

13. __________ is an alternative plan to be used if the original plan cannot be implemented
or a crisis develops.
a. An action plan
b. A contingency plan
c. A budget plan
d. A financial plan

14. Contingency plans are often developed from ______________ in earlier steps in planning
a. responsibilities
b. tasks
c. missions
d. objectives

15. _________ might be part of the contingency plan.
a. An action plan
b. A business plan
c. An exit strategy
d. A financial plan

16. The framework for planning can be used to develop and implement __________.
a. strategic plans
b. tactical plans
c. operational plans
d. all of these

17. A _________ is an integrated overall concept and plan of how the organization will
achieve its goals and objectives.
a. strategy
b. plan
c. mission
d. model

18. A Strategy involves __________.
a. downsizing
b. performing work more efficiently
c. outsourcing
d. more than operational effectiveness or being efficient through such means as
downsizing, performing work more efficiently, and outsourcing

19. ___________ means deliberately choosing a different set of activities to deliver a unique
value.
a. Comparative strategy
b. Competitive strategy
c. Business strategy
d. Political strategy

20. Which one of the following is a component of true business strategy?
a. a high level of operational effectiveness
b. a set of activities common to other firms
c. giving customers trade-offs
d. having quite different activities to make similar products for different markets

TRUE/FALSE

1.The first step in the planning process is defining the present situation.
2.In planning, measuring external threats is part of defining the present situation.
3.The major thrust of business strategy is to achieve a high level of operational effectiveness and
efficiency.
4.An exit strategy might be part of the contingency plan.
5.A firm's strategy is a master plan for achieving its goals and objectives.
6.A major aspect of the nature of business strategy is to choose a unique set of activities to deliver
a unique value.
7. Operational planning often focuses on the short term.
8. Before a firm finds a strategic position (or place in the market), it can best sustain it by
making trade-offs with other positions.
9. Strategic planning may help the firm move into emerging markets.
10. 10. Strategy includes efficiently combining activities related to making a product or service.