Exam Prep | Planning:The Foundation Of Successful – Ch.5

Management, 9e (Kinicki)

Chapter 5 Planning:The Foundation of Successful Management

1) A business model outlines what customer needs the company will satisfy, the operations of the business, the company components and functions, and the projected revenue and expenses.

2) When using MBO, managers should meet with employees reasonably often—either informally as needed or formally every three months—to review progress.

3) Every five years, the upper-level managers of Zebra Technology meet to develop a new large-scale action plan that will set the direction for the company for the next five years. In that meeting the managers will work on developing a strategy.

4) The upper-level managers of Premium Java are meeting to discuss the company's long-range goals and vision. Like any organization, Premium Java should adopt planning and strategic management for just two reasons: (1) to provide direction and momentum and (2) to encourage retention of high-value employees.

5) When Amazon says, "we want to be Earth's most customer-centric company," it is stating its code of ethics.

6) Tricia, the director of marketing for a global company, is planning the contributions she and her department will make to the organization over the next 24 months. This type of planning is called operational planning.

7) Heather is the store manager for a national grocery retailer, and she received the yearly tactical plan from Sanjay, her district manager. Heather is meeting with her department managers to plan how to implement the specific tasks outlined in Sanjay's plan for the next year. Heather is engaged in operational planning.

8) "Increase profits by 15 percent a year for each of the next five years" is an example of a strategic goal.

9) The production plant for Ruby Manufacturing has been located in the same place for over 100 years. The company has just completed its new factory that includes its new corporate offices. The planning required for moving Ruby into a new facility is a single-use plan.

10) Candice, owner of Green Solar Panels, has found that some of her department managers were using management by objectives, but the accounting and sales managers were not. Candice can still expect that the MBO program she introduced will yield results.

11) Taking a ________ action is setting a very challenging goal for yourself. It might be "I will double the number of hours I study next semester so that I can increase my GPA by at least half a point," keeping you motivated and focused on achievement.

A) performance objective

B) learning objective

C) cascading goal

D) practical action

E) behavioral objective

12) Research suggests that when writing out a plan to achieve your biggest goals, it is important to

A) focus on broad rather than specific goals.

B) identify your options and track your progress.

C) make a general plan, which embeds your intentions firmly in your memory.

D) keep plans and goals private.

E) avoid specific goals because it increases stress.

13) During her lunch break one afternoon, Alison set a goal of completing all required trainings in the next 90 days by taking two trainings a week. What is she doing?

A) planning

B) controlling

C) delegating

D) diversifying

E) synergizing

14) With increasing competition in the auto-parts business, Harrison, owner of Discount Tires, is dealing with growing uncertainty. He decides to ________, or meet with his managers to develop a future course of action to meet company goals.

A) plan

B) lead

C) control

D) define

E) diversify

15) The profits of West Side Grocery have dropped significantly over the last several months. After investigating, the owner realizes that many of the store's departments are moving in the wrong direction. The owner recognizes that these departments need stronger and closer management, but she also knows she has not provided her managers with enough direction regarding her expectations for the store's goals and the employees' performance. This example shows how an organization can progress in the wrong direction as a result of

A) little company diversity.

B) no focus on JIT.

C) no code of ethics.

D) poor planning.

E) too much employee diversity.

16) Leo is starting a company that leases shared workspaces, and he has approached SCORE, an SBA organization that assists small-business owners in setting up their companies. The SCORE counselors would probably advise Leo, as a new business owner, to

A) learn from experience, the best teacher, rather than a mentor.

B) avoid developing a business plan the first year of business.

C) try new things regardless of the risk.

D) get a new perspective by asking people who have failed.

E) write a business plan.

17) An organization's ________ expresses the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.

A) mentoring plan

B) code of ethics

C) risk statement

D) business model

E) code of business

18) Prior to opening her new restaurant, Alice is deciding what items to offer on the menu, the anticipated profits and expenses, the tasks of various employees, and how those jobs will be handled. Alice is creating her

A) business model.

B) mentoring plan.

C) code of ethics.

D) risk statement.

E) code of business.

19) Which of the following is NOT a reason for an organization to adopt planning and strategic management?

A) developing MBO

B) encouraging new ideas

C) developing a sustainable competitive advantage

D) providing direction and momentum

E) setting long-term goals.

20) An entrepreneur would create a business plan to outline which of the following?

A) plans for financing and reducing competition

B) mentoring plans

C) important details and a code of ethics

D) goals and strategies with success measures

E) code of business

21) The first three steps in planning an organization are (in the correct order):

A) formulating strategic planning, creating a mission statement, and creating a vision statement.

B) formulating operational planning, creating a mission statement, and developing a hiring plan.

C) formulating strategic planning, implementing operational planning, and preparing a vision statement.

D) writing a mission statement, assessing the current reality, and formulating strategic planning.

E) formulating tactical planning, implementing operational planning, and writing a mission statement.

22) The planning process begins with two attributes: a mission statement and a vision statement. What questions are answered with each of these?

A) What do we want to become?; What is our reason for being?

B) What are the costs?; How much money can I make?

C) What are the risks?; What is our reason for being?

D) What do we want to become?; What products do we offer at a profit?

E) What is our reason for being?; What do we want to become?

23) A mission statement expresses the

A) expected profitability of an organization.

B) purpose of an organization.

C) code of ethics.

D) market for the product.

E) types of employees needed.

24) Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the world through inspiring product design, unique store experiences and competitive marketing." This is the company's

A) mission statement.

B) belief statement.

C) goals pact.

D) code of ethics.

E) management pledge.

25) Cozy Café is a restaurant chain that offers a relaxing environment to enjoy quality coffees, teas, soups, and other menu items. A poster in the front of each restaurant reads, "We will always provide a quality product to help our customers better meet the challenges of their day and will always take the time to offer caring service one person at a time." This statement is Cozy Café's

A) belief statement.

B) goals pact.

C) mission statement.

D) code of ethics.

E) management pledge.

26) During a management meeting, Lester, the CEO of Elite Office Equipment, reminded his management team of where the company wants to go as an organization: "Elite Office Equipment is the expert that customers should always call regarding all their office equipment needs because we strive to understand customer needs and provide the right answers for them." This statement is Top Office Equipment's

A) belief statement.

B) goals pact.

C) code of ethics.

D) management pledge.

E) vision statement.

27) One Fortune article states that "vision should describe what's happening to the world you compete in and what you want to do about it" and

A) "it should help reduce competition."

B) "it should guarantee organizational success."

C) "it should guide decisions."

D) "it should improve employee morale."

E) "it should reduce the glass ceiling."

28) The three levels of ________ are strategic, tactical, and operational.

A) planning

B) diversity

C) strategy

D) marketing

E) the environment

29) At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and

A) have more stability than at other levels.

B) have more control over employee issues.

C) have less competition.

D) deal with uncertain and competitive conditions.

E) be more likely to understand the competition.

30) How often should a company revise its strategic plan?

A) every five years rather than every two years

B) every five years rather than every ten years

C) every ten years

D) continuously

E) closer to every one or two years

31) The upper management of a large national insurance company has passed along the new goal of improving customer service to the district managers. The district managers will set goals to be achieved over the next 6 to 24 months as part of ________ planning.

A) working-level

B) tactical

C) middle-level

D) operational

E) strategic

32) Operational planning must be completed by first-line managers every ________, and tactical planning is done by middle management every

A) year; 2 to 10 years.

B) 6 to 24 months; 1 to 52 weeks.

C) 1 to 52 weeks; 6 to 24 months.

D) 1 to 12 weeks; year.

E) year, if necessary; 1 to 90 days.

33) The upper-level managers of One World Enterprises are meeting for the week to look at the long-term company goals and overall direction of the organization. The CEO has expressed his concern over the economy and has told his managers to look closely at the environment outside the organization before making decisions and to be future oriented. In this meeting, top managers of One World are

A) writing a belief statement.

B) developing their goals pact.

C) producing their code of ethics.

D) doing strategic planning.

E) doing management pledging.

34) What type of planning is completed by middle managers?

A) writing a belief statement

B) developing a goals pact

C) producing a code of ethics

D) tactical planning

E) management pledging

35) Those who manage the work on the front lines are most involved with what component of the planning process?

A) writing a belief statement

B) developing a goals pact

C) producing a code of ethics

D) management pledging

E) operational planning

36) If you are tasked with writing employee schedules and to-do lists for managers, what level of planning are you involved in?

A) strategic planning

B) operational planning

C) delegation planning

D) human resource planning

E) tactical planning

37) The three types of MBO objectives are

A) performance, behavioral, and motivational.

B) strategic, performance, and behavioral.

C) learning, motivational, and proactive.

D) performance, behavioral, and learning.

E) strategic, motivational, and performance.

38) The top management of Fresh, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Charles, a division manager for Fresh, has looked at his resources, and he has decided how his division can contribute to the two strategic goals set by upper management: (1) by partnering with another company and (2) by hiring a procurement manager to negotiate lower prices from vendors. Charles' next step is to roll out his ________ to his staff.

A) vision statements

B) management guidelines

C) codes of ethics

D) tactical goals

E) operational goals

39) Denise owns several computer repair shops across the Northeast, and she has set a goal for her company of cutting costs in all her locations over the next three years. Denise has set a(n)

A) tactical goal.

B) management guideline.

C) business plan.

D) strategic goal.

E) operational goal.

40) ________ are goals set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.

A) Lower-level objectives

B) Front-line goals

C) Tactical goals

D) Supervisory objectives

E) Operational goals

41) Setting a ________, Joy wants to sell 80 percent of her old merchandise prior to the new arrivals shipping.

A) goal

B) vision

C) business plan

D) mission statement

E) norm

42) ________ can be another term used for a goal.

A) Task

B) Vision

C) Business plan

D) Objective

E) Norm

43) Aliya is a front-line supervisor in a clothing store. She desires to decrease the time she spends working on doing her daily closing work by 45 minutes. Aliya has set herself a(n)

A) lower-level objective.

B) front-line goal.

C) tactical goal.

D) supervisory objective.

E) operational goal.

44) Luxottica, a manufacturer of fashionable prescription eyewear, notes on its website, "To see the beauty of life inspires its sustainable and ethical business approach and its corresponding pillars, including a commitment to excellence, visual well-being, social impact, and environmental protection." This excerpt from the company's website states Luxottica's

A) code of ethics.

B) business plan.

C) vision statement.

D) expense report.

E) marketing plan.

45) The management of Computer Rescues, Inc. finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) ________ plan.

A) dependent

B) strategic

C) operating

D) facilities

E) typical

46) This month, Susan, the branch manager of Intrepid Car Rentals, has heard several complaints from customers that Intrepid employees do not return calls. Today a good customer told Susan that "my phone calls and e-mails are returned after maybe a week or so." Hearing enough, Susan mandated that "all customer phone calls and e-mails must be returned within 24 hours." This new directive by Alice is an example of a(n)

A) office order.

B) policy.

C) norm.

D) value.

E) ethic.

47) We Deliver trains its truck loaders how to set the packages in the delivery vehicles, so that when delivery drivers are pulling packages off their trucks, they are organized in a specific order and with the label facing forward to reduce errors and save time. A(n) ________ is being implemented when directing that the trucks be loaded in this specific manner.

A) industry standard

B) norm

C) policy

D) rule

E) procedure

48) Which of the following would be used to outline a response to a particular circumstance?

A) procedure

B) industry standard

C) norm

D) program

E) certified procedure

49) If you want all your stores to only accept returns with receipts, this would be an example of a(n)

A) procedure.

B) industry standard.

C) rule.

D) policy.

E) certified procedure.

50) The head librarian issued a directive that "Absolutely no food or drink are allowed in the library." She issued this directive because several computers and keyboards in the computer labs, as well as several study cubes, were recently damaged by spilled drinks and food. This is a(n) ________ issued by the librarian.

A) procedure

B) industry standard

C) rule

D) level of certification

E) certified procedure

51) ________ are plans developed for activities that are not likely to be repeated in the future, such as plans for programs or projects.

A) Solo plans

B) Lone-use proposals

C) Individual arrangements

D) Single-use plans

E) Standing plans

52) Harriet, the store manager, asked Lou to organize the prize giveaways for the store's grand reopening. Lou is organizing a(n)

A) program.

B) agenda.

C) policy.

D) project.

E) development.

53) A ________ is a single-use plan encompassing a variety of projects or activities.

A) program

B) rule

C) policy

D) project

E) procedure

54) The Human Resources department of Superior Catering conducted a training workshop on setting and achieving organization goals. DeJohn, the store manager of the Miami location, has been working with his managers to set objectives that are clearly defined, focused on achieving specific results, and can be accomplished with a given amount of resources. Which aspect of SMART goals is missing?

A) Goals should be stated in specific rather than vague terms.

B) Whenever possible, goals should be measurable, or quantifiable.

C) Goals should be challenging, of course, but above all they should be realistic and attainable.

D) Goals should be results-oriented.

E) Goals should specify the target dates or deadline dates when they are to be attained.

55) Which of the following goals satisfies the SMART criteria?

A) "As a talented florist, I will sell $100,000 in flowers."

B) "This company will greatly improve its performance next year."

C) "Within the next six months, I will grow my sole proprietorship into a corporation that is larger than Google and Amazon combined."

D) "We will improve our customer-service ratings."

E) "In the next quarter, our Tucson sales rep will increase sales by 10 percent."

56) Jared told his boss, Maggie, that he is going to start training for the upcoming marathon to be healthier and to have more energy for work. When Maggie asked him about his running history, Jared said, "I really have never run before and don't exercise much. I just know I need to do something." Maggie replied, "You should start slowly, maybe setting smaller, realistic exercise goals that are achievable." Maggie is helping Jared set a

A) single-use plan.

B) SMART goal.

C) standing plan.

D) simplistic goal.

E) focal point.

57) With setting SMART goals, you should choose only a few goals on which to focus. These goals should be results-oriented and

A) support the company's diversity plan.

B) align with the beliefs of the local community.

C) keep employees happy.

D) support the organization's vision.

E) meet low-cost goals.

58) ________ is the process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the manager develops action plans, the manager and employee periodically review the employee's performance, and the manager makes a performance appraisal and rewards the employee according to the results achieved.

A) Observation theory

B) MBAO

C) MBO

D) Strategic planning

E) An employee-management agreement

59) Francis, the plant manager, is interested in increasing the facility's productivity by utilizing MBO so that his managers and their employees are more focused on objectives. This month Francis asked his managers to concentrate on the two first steps of MBO, which are

A) for managers to develop an action plan and to give employees a performance appraisal.

B) for employees to develop an action plan and to study the competition.

C) to periodically review performance and to develop an action plan.

D) to review each employee's performance and to set an action plan based on performance.

E) to jointly set objectives with their employees and to have managers develop action plans.

60) Nick, a hotel general manager, has had great success using MBO. Vivian, his district manager, has found that Nick's employees are highly motivated. Because Nick ________, Vivian is able to discern that he is using MBO.

A) has increased training

B) rewards his employees with compliments, raises, and other benefits as they meet their goals

C) is big on discipline

D) gives few compliments, but is very honest with his employees

E) uses the Outward Theory that proposes discussing issues in open meetings

61) The purpose of MBO is to

A) control subordinates.

B) control costs.

C) control lower-level management.

D) motivate subordinates.

E) increase market share and develop synergy.

62) Research on MBO shows that people are impelled to set more difficult goals when

A) the goals have a significant impact on profitability.

B) employees can avoid personal development.

C) both management and subordinates participate.

D) the goals emphasize corporate social responsibility.

E) ethics are not a consideration.

63) For MBO to be successful, top management must be committed to the program, MBO must be applied organizationwide, and

A) objectives must cascade.

B) employees need to provide continuous feedback to each other.

C) objectives must remain fixed and unchanging.

D) objectives must be generated from the bottom up.

E) there must be community support.

64) MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO working as objectives ________ through the organization.

A) move upward

B) move outward into the community

C) change significantly

D) cascade down

E) become less refined and more generalized

65) All the following are ways to increase your proactive learning skill except

A) focus on solutions rather than problems.

B) take the initiative and rely on yourself.

C) set realistic goals and don't overpromise.

D) compare yourself to others.

E) participate in and contribute to personal and professional conversations.

66) To ensure that plans are moving in the right direction, managers can use a(n)

A) means-ends chain.

B) synergy method.

C) efficiency plan.

D) planning/control cycle.

E) satisficing strategy.

67) The planning/control cycle has two planning steps. They are

A) (1) research planning, then (2) receive feedback.

B) (1) make the plan, then (2) set it aside for a period of time.

C) (1) make the plan, then (2) carry out the plan.

D) (1) review previous plans, then (2) evaluate plans.

E) (1) research planning, then (2) look for ways to cut costs.

68) Charmaine, a district manager for a global retailer, is traveling to different stores in her district to discuss with store managers how to increase profitability for the rest of the fiscal year. What is Charmaine doing?

A) eliminating the planning/control cycle

B) avoiding the planning/control cycle

C) controlling the direction of the planning/control cycle

D) researching the planning/control cycle

E) forecasting the planning/control cycle

69) Greg, the owner of a lawn care service, likes to meet with his employees six months after their yearly evaluation to discuss how they are progressing on suggestions and plans to improve their yearly job evaluation. At this point, by comparing the six-month results with the past evaluation, Greg is in the ________ step of the planning/control cycle.

A) control

B) planning

C) organizing

D) observation

E) termination

70) The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by taking corrective action in two ways—namely, by

A) receiving feedback, and, if needed, making new plans.

B) researching ways to plan better and increasing profits.

C) increasing organization synergy and diversity.

D) correcting deviations in the plan being carried out or improving future plans.

E) improving future plans, and, if needed, cutting costs.

71) At the end of the company retreat, Dashaun had a blueprint for how to move forward for the year. His primary objective had been met. What do you think his primary objective was?

A) to have an outline of how the goals were going to be met

B) to have an explanation of the company's new slogan

C) to understand the financials so that he could explain them to the shareholders

D) to have a guide for ethical decision making

E) to have a set of research and development priorities

72) You are reading a ________ that outlines your company's long-term goals and direction. These goals include "Reduce energy consumption in our offices by 20 percent," "Grow our market share in China from 3 percent to 10 percent," "Enter a strategic alliance with a partner in Australia to begin selling our products in Sydney and Brisbane," and "Equip all sales representatives with an app that allows them to provide an immediate quote when meeting with customers."

A) values statement

B) business plan

C) SMART goal

D) vision statement

E) strategic plan

73) Lauren wants to develop her proactive learning skills in order to increase her career readiness. What would you advise her to do?

A) Write a letter to the editor about potholes in her town's streets.

B) Contribute to a LinkedIn conversation about trends in her industry.

C) Listen to a podcast about the job market for college graduates.

D) Plan a trip abroad.

E) Read an article about different résumé formats.

74) You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: Am I being responsive to the customer? Is it innovative? Can I offer a quality product? After asking these questions, review and identify which question you forgot to ask that would give you a sustainable advantage.

A) Is the resource or capability valuable?

B) Is the resource or capability currently controlled by only a few firms or no other firms?

C) Is the firm organized to exploit the resource of capability?

D) What values should be emphasized?

E) What is its level of effectiveness?

75) Based on planning and strategic management principles, which of the following start-up companies has the LEAST potential to have a competitive advantage, to be profitable, and to grow?

A) a cat-sitting service, where you take care of people's cats when they are on vacation; you decide to advertise your services on Craigslist and the local newspaper

B) a "companionship" service for elderly people who live alone because their children are busy working full-time jobs; working adults say such a service would be extremely valuable

C) the only farm within a 100-mile radius that offers its customers organic beef and organic dairy products such as eggs and milk; no other local company offers these products

D) a portrait-painting service by a talented artist who is known for his ability to make all men look handsome and all women look beautiful; very few other artists in the local area have this talent

E) an enrichment program for children that hires talented people and sends each of them to a different school each day of the week; a web-based app helps the manager keep track of all the employees' schedules and locations

76) The Publix chain of supermarkets has stated, "We will not knowingly disappoint you. If for any reason your purchase does not give you satisfaction, the full purchase price will be cheerfully refunded immediately upon request." This proclamation is Publix's

A) vision statement.

B) values statement.

C) mission statement.

D) corporate slogan.

E) company tagline.

77) Which of the following is an example of a mission statement?

A) "to create a world where the family farm is valued over the large-scale production of agribusiness"

B) "to become a beacon of hope for those suffering from mental hardship"

C) "to make education accessible to everyone in the world"

D) "to engage in business practices that are not only legal but also ethical"

E) "to offer the lowest prices on new hardcover books, anywhere in the world"

78) A short-term goal usually spans ________ while a long-term goal typically spans ________.

A) 1 month; 3 months.

B) 3 months; 1 year.

C) 12 months; 1 to 5 years.

D) 2 weeks; 6 months.

E) 3 years; 10 years.

79) You receive a memo that reads as follows: "In recent months, our customer evaluations have dropped, and our sales have decreased by 10 percent. To restore our business, we will do the following: (1) We will contact all of our customers and offer a 10 percent discount on their next purchase. (2) For the customers who spend more than $1,000 per year, we will invite them to join our Insiders' Club, which gives them discounted tickets to concerts and sporting events. (3) Effective immediately, we will begin staffing our call center 24 hours a day, 7 days a week. (4) Customer-service personnel will be given more discretion in helping customers resolve problems, with minimal interference from supervisors." This memo is a(n)

A) mission statement.

B) VRIO analysis.

C) business model.

D) action plan.

E) a SMART goal.

80) Which of the following is intended for one-time use and is not likely to be repeated in the future?

A) Bed, Bath and Beyond accepts coupons after they expire.

B) DSW will only issue store credit for returns without a receipt.

C) SpaceX put a car in space.

D) Once you have opened a DVD, Target will not accept it as a return.

E) Nordstrom's will accept returns for up to one year.

81) Which of the following is an example of a rule?

A) "We believe that the customer comes first."

B) "We are committed to hiring a workforce whose diversity mirrors our customers."

C) "An employee who comes to work intoxicated will be terminated immediately."

D) "Sexual harassment will not be condoned in this organization."

E) "At their discretion, department managers can offer summer working hours to their employees."

82) While preparing a self-assessment of your job performance the previous year, you are required to list three goals for the coming year. You list the following as one of your goals: "I will triple sales in my territory by the end of the next fiscal year." Based on the SMART criteria, what is the problem with this goal?

A) It does not have a target date.

B) It is not specific.

C) It is not measurable.

D) It is not results-oriented.

E) It is not attainable.

83) Management by objectives (MBO) and goal cascading will NOT work without an effective

A) technology component.

B) contingency plan.

C) bonus-based compensation plan.

D) goal-setting process.

E) layer of middle management.

84) Which of the following is not a step in the process of management by objectives (MBO)?

A) Managers determine each employee's strengths and weaknesses.

B) Managers and employees jointly set objectives for the employee.

C) Managers develop action plans.

D) Managers and employees periodically review the employee's performance.

E) The manager makes a performance appraisal and rewards the employee according to results.

85) ________ is the overall goal of MBO.

A) Motivating employees

B) Controlling subordinates

C) Controlling costs

D) Increasing market share

E) Terminating low-performing employees

86) ________ are at the top of the organization and get more specific as they move toward ________.

A) Short-term goals; long-term goals.

B) Customer service goals; employees.

C) Financial goals; the shop floor.

D) Objectives and activities; upper-level management.

E) Cascading goals; individual employees.

87) Which sequence of goals is consistent with "cascading" goals that begin at the top of the organization?

A) strategic goals > divisional goals > department goals > individual goals

B) individual goals > department goals > divisional goals > strategic goals

C) divisional goals > strategic goals > individual goals > departmental goals

D) departmental goals > individual goals > strategic goals > divisional goals

E) customer goals > employee goals > manager goals > company goals

88) As a manager, you meet with each of your team members quarterly to review their progress toward their written and agreed-upon goals. One of your employees, Julie, had a goal of increasing sales in her territory by 10 percent in the first quarter of the year. However, when you review Julie's sales numbers, you see that her sales have actually gone down. You know Julie is a hard worker and has an excellent relationship with her customers. When you sit down to discuss her performance, she explains what is happening in her territory. A major automobile manufacturer, which once provided 25,000 jobs, has moved its operations to Mexico and laid off all 25,000 of its workers. As a result, the economy in Julie's region has become quite depressed, and the residents are living off their savings. Taking the steps of the planning/control cycle into account, what is your best course of action with Julie?

A) Terminate her employment with the company.

B) Arrange for her to take a refresher course on sales methods.

C) Transfer her to another territory and replace her with another sales rep who is new to the company and therefore "hungry."

D) Recognize the economic reality of her territory and change her goals to make them ambitious but realistic.

E) Put her on probation, explaining that she will be terminated if her performance does not improve in the next quarter.

89) Which of the following is a tactical goal?

A) By the end of this fiscal year, we will achieve a 10 percent cost reduction in our office expenses.

B) Within two years, we will enter into a strategic alliance with a company that is able to effectively market and sell our products in China, India, and other emerging economies.

C) This company has a policy of conducting a background and credit check on all job applicants.

D) Smoking on the factory floor is strictly prohibited; anyone caught smoking in company facilities will be disciplined immediately.

E) As a company, we are committed to increasing our online presence through social media.

90) How would you describe Amazon's commitment to continuous evolution?

A) It is one of their value statements.

B) It is their vision statement.

C) It is their mission statement.

D) It is their strategy or strategic plan.

E) It is their business model.

91) Kaleb is preparing for an interview. He has reviewed his résumé, prepared his questions, and thought through answers for the top questions most asked in interviews. He feels well prepared. At the interview, he is asked to respond to a scenario question in which a problem is presented. Why is the interviewer asking this type of question?

A) to see if Kaleb can analyze the situation and propose alternatives

B) to see if Kaleb can make quick decisions

C) to see if Kaleb is a planner

D) to see if Kaleb manages his time wisely

E) to see if Kaleb understands the inner workings of the company

92) Grayson wants to rethink the visitor experience to his theme parks. He meets with the customer service team who represents the parking attendants, the ticket sales agents, the information booth workers, the grounds keepers, and the ride attendants. Grayson wants them to change how they interact with the park patrons. He tells them all to, "Welcome each visitor to the park with a smile, a kind word, and an offer of assistance." How would you describe his change?

A) It is a learning objective.

B) It is a SMART goal.

C) It is a performance objective.

D) It is motivational objective.

E) It is a behavioral objective.

93) Mark Zuckerberg stated that Facebook's early idea was to "Move fast and break things." He set that as his strategy for the company. Was he using the concept of strategy correctly?

A) Yes, because mission statements are a part of strategic plans and this was a clear, concise mission.

B) Yes, because it provided a vision for this new endeavor for others to share.

C) Yes, because he involved managers from all parts of the organization.

D) No, because a strategy sets a long-term goal and direction for an organization.

E) No, because this was a short-term goal and provided the initial slogan for the company.

94) Jeanine, the operations manager of an auto dealership, has been redesigning operations. She feels there are many places where the dealership can cut costs to save money. One of these is all the "perks" for customers like free coffee, freshly popped popcorn, and a children's play area. Assume you are the general manager of the dealership (Jeanine's boss) and an advocate of the planning/control cycle, what would you do?

A) Have Jeanine create a plan on how the perks will stop being offered.

B) Have Jeanine make the change, compare sales and expenses after a period of time, and see if corrective action is necessary.

C) Demote Jeanine, as she does not understand the importance of customer service in selling cars.

D) Assign Jeanine to work with a salesperson on a Saturday and then report back.

E) Have Jeanine visit a competing dealership and see what they offer customers.

95) The textbook makes four key recommendations to help you become a proactive learner. Use these recommendations to set a goal of obtaining a job after graduation that is interesting and provides a good salary. Given that this is a long-term goal, be sure to explain how you will use the advice between now and the time you graduate.

96) Describe the components of a business model.

97) You plan to open a new business. Before you can approach the small-business loan center, you will have to have a strong plan. Write a one-paragraph business model description for a business of your choice.

98) This question contains two parts; be sure to answer each part. First, define strategic management, explaining how managers from all parts of the organization are involved and the three types of planning that are a part of strategic management. Next, imagine that you are planning to open a bagel shop. Give specific examples of each of the three types of planning with regard to your bagel shop.

99) Contrast strategic, tactical, and operational planning, explaining the time frame associated with each type.

100) This question has multiple parts; be sure to answer each one.

First, explain how a company's approach to planning and its mission become translated into action plans.

Second, imagine that you have just purchased a local pizza restaurant. There are three other similar restaurants in the city, and yours is the smallest. Write a mission statement and a vision statement, and create an action plan for achieving your vision.

101) Super Sandwiches trains its employees to always put the sandwich condiments on the sandwich in the same order. The company is also known for treating its employees well and enjoys some of the lowest employee turnover in the industry. As a result, it is one of three companies being featured in a 20-minute piece on a national newscast to discuss this honor. Identify the types of standing plans and single-use plans. Discuss how Super Sandwiches might apply a standing plan and a single-use plan. Include examples in your response. (That is, make all your examples relevant to a sandwich shop.)

102) This question contains two parts; be sure to answer both.

First, define a SMART goal by listing its five key qualities.

Next, imagine that you have been promoted to manage a hair salon and you want to set goals for your employees, who are the hairstylists, manicurists, and receptionists. Write three SMART goals for your employees that focus on revenue, customer satisfaction, and quality of services.

103) Describe the four types of objectives used in MBO and give examples of each type.

104) Imagine that you are a manager of a local clothing store with the responsibility for four employees. Outline a detailed plan for how you would implement MBO to increase overall store revenue by 10 percent by the end of the year.

105) Professor Adams, a business teacher, meets with her students' mid-quarter to give out midterm reports and discuss with students how to improve their grade for the remainder of term. Also, she likes to meet with her students each week after midterm to discuss how they are progressing on suggestions related to the midterm reports. Discuss how Professor Adams is using the planning control steps of the planning/control cycle with her students.

106) California's dairy farmers famous tagline "Got milk?" is an example of a slogan, not a business plan or a strategy. Briefly describe the differences among these key terms: planning, a business plan, and a strategy.

107) This question contains two parts; be sure to answer both.

First, describe how to develop the career readiness competency of proactive learning orientation.

What key recommendations should be put into practice to help you become more proactive?

108) You are the manager of your college's bookstore. Create a mission statement, a vision statement, and a values statement for the services you manage.

109) Cascading is essential to promoting consistency in goals. Which three criteria must be met for goal cascading to be successful? Describe and explain each criterion.