Professional Documents
Culture Documents
True/False Questions
3.2 The only purpose of a strategic plan is to guide employees’ daily activities.
(Suggested points: 2, [3.2])
3.3 The performance management criteria must be linked to the vision, mission,
goals, and strategies of the organization and unit.
(Suggested points: 2, [3.3])
3.11 Job descriptions should focus only on an individual’s tasks and responsibilities.
(Suggested points: 2, [3.13])
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3.13 Performance management systems allow all employees to understand where the
organization stands and where it needs to go and provide tools to employees so
that their behaviors will help the organization meet its goals.
(Suggested points: 2, [3.3])
Multiple-Choice Questions
3.16 The strategic planning process consists of all of the following EXCEPT:
A. An environmental analysis
B. Development of the marketing plan
C. Creation of a mission statement
D. Setting organizational goals
(Suggested points: 2, [3.4])
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3.22 ___________________ are the descriptions of game plans to reach the stated
objectives.
A. Mission statements
B. Strategies
C. Goals
D. Vision statements
(Suggested points: 2, [3.11])
3.23 Which of the following choices must be made when designing a performance
management system?
A. Behavioral criteria versus results criteria
B. Low employee participation versus high employee participation
C. Short-term criteria versus long-term criteria
D. All of the above
(Suggested points: 2, [3.15])
3.24 The process of describing the organization’s destination, assessing barriers that
stand in the way of that destination, and selecting approaches for moving forward
is called ____________________________.
A. organizational planning
B. strategic planning
C. business planning
D. successful planning
(Suggested points: 2, [3.1])
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3.27 In order to ensure that strategy cascades down the organization and leads to
concrete actions, which of the following must be done?
A. A conscious effort must be made to link the strategic plan with individual
performance.
B. Company executives must mandate that employees follow the plan.
C. Employees must be involved in making the plan.
D. Supervisors must be able to evaluate how well an employee is following the
plan.
(Suggested points: 5, .3[3.3], .4[3.12], .3[3.13])
3.28 Characteristics of the external environment that can help the organization succeed
are known as ______________________.
A. advantages
B. opportunities
C. good situations
D. expectant situations
(Suggested points: 2, [3.5])
3.29 Characteristics of the external environment that can prevent the organization from
being successful are known as ______________________.
A. disadvantages
B. weaknesses
C. global factors
D. threats
(Suggested points: 2, [3.5])
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3.33 A description of what the organization would like to become in the future is
called:
A. The mission statement
B. The organizational plan
C. The strategic plan
D. The vision statement
(Suggested points: 2, [3.8])
3.35 ________________ are what the organization intends to do in the short term, say,
one to three years.
A. Strategies
B. Strategic plans
C. Goals
D. Game plans
(Suggested points: 2, [3.11])
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3.37 In the early development of strategic management as a field, what was the
dominant approach to achieving strategic consensus?
A. Create strategic priorities and goals simultaneously.
B. Establish strategic priorities before setting goals.
C. Identify the strength and weaknesses of the firm, and then let firm-level
strategic priorities emerge naturally.
D. Focus on goals, and then create strategic priorities on how to compete.
(Suggested points: 2, [3.12])
3.39 Which of the following has been shown to be the best predictor of firm
performance?
A. Create strategic priorities and goals simultaneously.
B. Establish strategic priorities before setting goals.
C. Identify the strength and weaknesses of the firm, and then let firm-level
strategic priorities emerge naturally.
D. Focus on goals, and then create strategic priorities on how to compete.
(Suggested points: 2, [3.12])
Essay-Type Questions
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3.43 Using the mission statement that you wrote in the previous question, write a
vision statement, goals, and accompanying strategies for how to reach your goals.
Also, list how you will measure your performance.
(Suggested points: 10, [3.10])
3.44 What are the steps in the creation of a successful strategic plan?
(Suggested points: 2, [3.4])
3.51 A good mission statement answers four questions. What are they?
(Suggested points: 2, [3.7])
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3.54 What are the two main ways of achieving strategic consensus?
(Suggested points: 2, [3.12])
3.57 Which one of the two ways of achieving strategic consensus is better?
Why do you think so?
(Suggested points: 3, [3.12])
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Answers
3.1 T
3.2 F: Strategic planning serves several purposes, including defining an
organization’s identity, preparing for the future, providing focus, creating a
culture of cooperation, and serving as a guide for the daily activities of all
organizational members.
3.3 T
3.4 F: Environmental analysis considers internal as well as external trends.
3.5 T
3.6 T
3.7 F: A vulnerability is a situation where an external threat can be compensated for
by strengths in other areas.
3.8 T
3.9 F: A vision statement is a description of what the organization would like to
become in the future.
3.10 F: Goals provide more specific information on how the mission will be
implemented.
3.11 F: Job descriptions should include activities that contribute to the mission and
vision of the unit and organization.
3.12 T
3.13 T
3.14 F: HR, employee, and management buy-in are all necessary for successful
performance management systems.
3.15 B
3.16 B
3.17 C
3.18 D
3.19 B
3.20 D
3.21 B
3.22 B
3.23 D
3.24 B
3.25 D
3.26 D
3.27 A
3.28 B
3.29 D
3.30 C
3.31 C
3.32 A
3.33 D
3.34 D
3.35 C
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3.36 B
3.37 D
3.38 B
3.39 B
3.40 C
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strength in the shared values held by the nations in the UN, the UN resolves to
lessen the threat of deadly conflict at every stage:
“Prevention. Conflicts are most frequent in poor countries … and the best
way to prevent them is to promote healthy and balanced economic
development combined with human rights, minority rights, and political
arrangements in which all groups are fairly represented …”
“Protecting the vulnerable. We must find better ways to enforce
international and human rights law, and ensure that gross violations do not
go unpunished.”
“Addressing the dilemma of intervention. National sovereignty must not
be used as a shield for those who wantonly violate the rights and lives of
their fellow human beings …”
“Strengthening peace operations.” Operate more effective peace
operations.
“Targeting sanctions. Recent research has explored ways to make
sanctions ‘smarter’ by targeting them better. The Security Council should
draw on this research when designing and applying sanctions regimes in
future.”
“Pursuing arms reductions. The Secretary-General urges Member States to
control small arms transfers more rigorously; and to recommit themselves
to reducing the dangers both of existing nuclear weapons and of further
proliferation.”
D. Threat + Weakness = Problem. In the worst of the situations, there is an
external threat and an accompanying internal weakness. The global
environment is suffering because the UN has not committed to helping keep
the environment safe. The security and viability of future generations is at
stake. “We have been plundering our children’s heritage to pay for
unsustainable practices.” The UN must commit to helping the following areas:
“Coping with climate change. Reducing the threat of global warming
requires a 60 percent reduction in emissions of carbon and other
‘greenhouse gases.’ …”
“Confronting the water crisis. The report urges endorsement of the World
Water Forum Ministerial Conference’s target of cutting by half the
proportion of people without access to safe and affordable water before
2015 …”
“Defending the soil. The best hope of feeding a growing world population
from shrinking agricultural land may lie in biotechnology, but its safety
and environmental impact are hotly debated …”
“Preserving forests, fisheries, and biodiversity. In all these areas,
conservation is vital. Governments and the private sector must work
together to support it.”
“Building a new ethic of stewardship. The Secretary-General recommends
four priorities:” include more education for the public, “integrate the
environment into economic policy,” implement “regulations and
incentives,” and receive “more accurate scientific data.”
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3.42 Personal Mission Statement: (Answers will vary, but here is one example.)
Throughout each day in my life, I strive to be loyal to my friends and family, lead
a successful career that I will enjoy, stay healthy, and take on any challenges that
come my way. I value my family members, friends, spiritual fulfillment, sense of
accomplishment, and respect for others.
3.45 In the context of strategic planning, strengths are internal characteristics that the
organization can use to its advantage.
3.46 In the context of strategic planning, weaknesses are internal characteristics that are
likely to hinder the success of the organization.
3.47 In the context of strategic planning, leverage is an external opportunity paired with
an internal strength.
3.49 In the context of strategic planning, a vulnerability is an external threat paired with
an internal strength.
3.50 In the context of strategic planning, a problem is an external threat paired with an
internal weakness.
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3.53 Strategic consensus is the state in which various organizational units agree on a
common set of strategic priorities.
3.55 Sample answer of Strategic priorities Goals: Within three years, our company
will achieve a 20 percent increase in net revenue in the North American consumer
electronic goods market. To achieve this strategic priority, each creative design
team will create a new product within one year, where the top three products will
be chosen and launched into the targeted market. Each of the members in the top
three teams will be rewarded a 25 percent permanent salary increase, along with
an additional two-week paid vacation.
3.56 Sample answer of Goals Strategic priorities: Given each department’s current
capacity, we expect that each department will have decreased the amount of
public complaints by 10 percent within the next two years. Cumulatively, this 10
percent decrease from each department will amount to a 12 percent decrease in
public complaints to the entire organization within the next two years.
3.57 The Strategic priorities Goals sequence is superior in terms of predicting firm
performance. Why? Sample answer: One possible reason is that setting the
broader strategic priorities and then goals allows an organization to think more
freely rather than being tied down to the details of “reality.” As a consequence,
the organization makes more ambitious goals than usual. These ambitious goals
force an organization to challenge its perceived current capacities and perhaps, as
a result, more readily allow the organization to extend its capacities. In contrast,
setting goals first and then strategic priorities may induce an organization to
accept the details of “reality” rather than think more freely. As a consequence, the
organization makes goals that are not very ambitious. These not so ambitious
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