MGMT 310 Exam 2 || with 100% Correct Answers.
first function of management; not an informal or haphazard response to a crisis; a purposeful
effort that is directed and controlled by managers and often draws on the knowledge and
experience of employees at all levels; conscious, systematic process correct answers planning
1. situational analysis
2. generate alternative goals and plans
3. evaluate goals and plans
4. select goals and plans
5. implement the goals and plans
6. monitor and control performance correct answers steps of planning
a process planners use, within time and resource constraints, to gather, interpret, and summarize
all information relevant to the planning issue under consideration; analyzing environments for
opportunities or threats/strengths and weaknesses correct answers step 1 of planning: analyze the
situation
stresses creativity and encourages managers and employees to think broadly; the goals are the
targets or ends that a manager wants to reach, and specific, measurable, attainable, relevant,
time-bound (SMART) correct answers step 2 of planning: generate alternative goals and plans
managers evaluate the advantages, disadvantages, and potential effects of each alternative goal
and plan; must prioritize the goals and even eliminate some; must consider carefully the
implications of alternative plans for meeting high-priority goals; evaluating how to make highest
profit while minimizing costs correct answers step 3 of planning: evaluate goals and plans
managers select the most appropriate and feasible alternative; the evaluation process identifies
the priorities and trade-offs among the goals and plans correct answers step 4 of planning: select
goals and plans
managers and employees must understand the plan, have the resources to implement it, and be
motivated to do so; successful implementation requires a plan to be linked to other systems in the
organization, particularly the budget and reward systems; typically involves the allocation of
resources, timing, and typically requires integration with existing systems correct answers step 5
of planning: implement the goals and plans
managers must continually monitor the actual performance of their work units against the units'
goals and plans; managers also need to develop control systems to measure that performance and
allow them to take corrective action when the plans are implemented improperly or when the
situation changes correct answers step 6 of planning: monitor and control performance
focuses on achieving non-repeating goals/short-term
example: after admitting to slowing older iPhones, Apple agreed to replace any iPhone battery
for a discounted price correct answers single-use plan
,designed to accomplish an enduring set of goals; long-term
example: noosa relies on a multi-pronged approach to grow its sales of its yogurt products
correct answers standing plan
specifies actions when initial plans fail or events in the external environment create sudden
change; plan B
example: home builders, in response to a new tariff on imported lumber, are trying to reduce the
amount of wood used to build new homes correct answers contingency plan
when goals are precise, employees know what they need to do to accomplish them; state what
you'll do; use action words
example: I will become a well-known expert on the topic of small business accounting correct
answers SMART goals (specific)
as much as possible, the goal should quantify the desired results, so that there is no doubt
whether it has been achieved; provide way to evaluate; use metric or data targets
example: I will be successful if I am asked to speak publicly on the topic at least once a month,
receive interview requests every week, and write one article per month for a top industry
publication correct answers SMART goals (measurable)
challenging; employees need to recognize that they can attain their goals, so they won't become
discouraged. however, they should also feel challenged to work hard and be creative
example: I will accomplish this by acquiring the services of a PR/publicity firm and launching a
publicity campaign correct answers SMART goals (attainable)
each goal should contribute to the organizations overall mission and be consistent with its values,
including ethical standards; makes sense within job function
example: establishing myself as a small business accounting expert will reinforce my 10+ years
of experience in the field and allow me to reach more small business owners who need
accounting advice correct answers SMART goals (relevant)
effective goals specify a target date for completion
example: I want to be considered a small business accounting expert in two years correct
answers SMART goals (time-bound)
used by managers at all four levels; done by top level managers; a set of procedures for making
decisions about the organization's long term goals and strategies; senior executives are
responsible for development and execution of strategic plan; focuses on "what" to make and not
"how" correct answers strategic planning
a set of procedures for translating broad strategic goals and plans into specific goals and plans
that are relevant to a distinct portion of the organization, such as a functional area like marketing
or financial department; focus on major actions a unit must take to fulfill its part of the strategic
plan; involves design, testing, and installation of the equipment needed to produce the new line
correct answers tactical planning
, process of identifying the specific procedures and processes required at lower levels of the
organization; frontline managers usually focus on routine tasks such as production runs, delivery
schedules, and human resource requirements correct answers operational planning
major targets or end results relating to the organization's long-term survival, value, and growth;
senior managers are assigned to this; goals are aimed at efficiency and effectiveness; goals
include increasing market share, improving profitability, boosting return on investment, etc.
correct answers strategic goals
pattern of actions and resource allocations designed to achieve the organization's goals correct
answers strategy
a process that involves managers from all parts of the organization in the formulation and the
implementation of strategies and strategic goals correct answers strategic management
strategic management process correct answers 1. missions, visions, and goals
2. analyze internal strengths and weaknesses
3. analyze external opportunities and threats
4. SWOT analysis and strategy formulation
5. strategy implementation
6. strategic control
long term direction and strategic intent of a company; provides perspective on where the
organization is headed and what it can become
"how do you see yourself achieving your mission" correct answers strategic vision
a statement of the organization's purpose - what it wants to accomplish in the larger environment
"what do you want to achieve" correct answers mission statement
groups and individuals who affect and are affected by the achievement of the organization's
mission, goals, and strategies; e.g. buyers, suppliers, competitors, government, owners and
regulatory agencies
example: McDonald's: cows are stakeholders because they're affected correct answers
stakeholders
things your company does well; qualities that separate you from your competitors; internal
resources such as skilled, knowledgeable staff; tangible assets such as intellectual property,
capital, proprietary technologies, etc.
example: positive cash flow, well known and highly regarded brands correct answers SWOT
analysis (strengths)
things your company lacks; things your competitors do better than you; resource limitations;
unclear unique selling proposition
example: lack of spare production capacity, absence of reliable suppliers correct answers SWOT
analysis (weaknesses)
