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Structured Questions

1 Briefly explain any TWO (2) importance of planning to an organization.

2 Summarize the THREE (3) basic steps in planning process.

3 List down FOUR (4) major corporate-level strategies manager can use in order to help
their organization to increase its sales and profits.

True/False Questions

1. The set of decisions that managers make to assist the organization in the attainment of its
goals is called the strategy of the organization.

2. Planning is a goal-making but not a strategy-making process.

3. The last step in the planning process is to determine the organization's mission and goals.

4. A broad statement of the organization's purpose, its products, and its customers is called a
mission statement.

5. Planning takes place at the corporate level and the business level of the organization, but
not at the functional level of the organization.

6. The divisions of the organization exist at the business level of the organization.

7. The corporate-level plan of an organization contains the decisions that are related to the
organization's mission, goals, strategy, and structure.

8. Another name for a department of an organization is a function.

9. Functional goals and strategies need not be consistent with divisional goals and strategies.

10. In the typical organization, corporate-level planning is the primary responsibility of first-
line supervisors.

11. In the typical organization, top managers are primarily responsible for planning that takes
place at the business level of the organization.

12. Standing plans are useful in situations that involve programmed decisions.

13. A general guide to action within an organization is called an SOP of the organization.

14. A written set of instructions that describes the series of actions that a manager should take
in a specific situation is called an SOP of the organization.

15. A written procedure that requires any employee who receives a gift worth more than $25
from a customer to report that gift to his or her organization is called a rule.

16. Single-use plans are intended to be used primarily in programmed decision-making


17. According to Fayol, managers should stay committed to a static plan instead of to a
flexible plan.

18. Another name for contingency planning is scenario planning.

19. The first step in defining an organization's mission is to define its business.

20. Managerial goals should be both challenging and realistic.

21. SWOT analysis is the last step in the strategy formulation process.

22. The last step in a SWOT analysis is to identify the organization's internal strengths and
internal weaknesses.

23. With a multidomestic strategy, managers decide to sell the same product with the same
marketing approach in all of the countries in which the product is sold.

24. With a global strategy, managers decide to customize a product and its marketing strategy
to fit the different needs of the target market in each of the countries in which the product
is sold.

25. The advantages and disadvantages of a global strategy are the same as those of a
multidomestic strategy.

26 Managers of XYZ Company attempt to give the organization a competitive advantage by

driving production costs to as low a level as possible. We say that the organization is
pursuing a differentiation strategy.

27. According to Michael Porter's theory, it is very possible for managers to pursue both a
low-cost strategy and a differentiation strategy at the same time.