MGT101 Tutorial 3 - Lecture 3: Planning & Fundamentals of Strategic Management (Qs)

I: MCQs Practice

1. “We seek to become the premier business school in the west" is an example of a statement you are
most likely to find in the organization's
a. tactical goals.
b. operational goals.
c. mission.
d. tactical plans.
e. operational plans.

2. ____ refers to a broadly stated definition of the organization's basic business scope and operations that
distinguishes it from similar types of organizations.
a. Mission statement
b. Goal statement
c. Management by objective
d. Goal setting
e. Corporate competitive-value statement

3. ____ are the broad statements of where the organization wants to be in the future.
a. Operational goals
b. Tactical goals
c. Strategic goals
d. Operational plans
e. Tactical plans

4. ____ goals lead to the attainment of ____ goals, which in turn lead to the attainment of ____ goals.
a. Operational, strategic, tactical
b. Tactical, operational, strategic
c. Strategic, tactical, operational
d. Operational (execute the plan), tactical, strategic
e. None of these.

5. Goals that define the outcomes that major divisions and departments must achieve in order for the
organization to reach its overall goals is called
a. strategic goals.
b. tactical goals.
c. operational goals.
d. a mission.
e. a plan.

6. Sarah is a middle manager at Stylin' Sneakers Corporation. She is most likely responsible for the
achievement of ____ goals.
a. operational
b. tactical
c. strategic
d. lower-level
e. top-level

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 7. Which of the following refer to specific results (goal) expected from individuals?
a. Operational goals
b. Tactical goals
c. Strategic goals *plan=strategy
d. Operational plans
e. Mission statements

8. Which of these is lacking in the goal "profits should be increased in the coming year?"
a. Specific and measurable
b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. None of these

9. Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the
current quarter. She is unhappy because she knows that the most any salesperson has sold in one
quarter in the past is $150,000. Her goal of $265,000 is probably
a. not specific and measurable.
b. not realistic.
c. irrelevant.
d. lacking a specific time period.
e. does not cover key result area.

10. You are violating which of these goal characteristics when you attempt to create goals for every
aspect of employee behavior?
a. Specific and measurable
b. Linked to rewards
c. Defined time period
d. Cover key result areas
e. Challenging but realistic

11. Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals.
This process violates which of the following criteria for effective goals?
a. Specific and measurable
b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. Linked to rewards

12. All of the following are characteristics of effective goal setting EXCEPT
a. goals should be challenging but not unreasonably difficult.
b. goals should be set for every aspect of employee behavior.
c. specific and measurable.
d. cover key results area.

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 e. linked to rewards.

13. Which of these is a method of management whereby managers and employees define goals for every
department, project, and person and use them to monitor subsequent performance?
a. Organizational planning
b. Management by objectives
c. Goal setting
d. Mission development
e. Vision development

14. Which of these is true about single-use plans?

a. They are developed to achieve a set of goals that are unlikely to be repeated in the future.
b. They are used to provide guidance for tasks performed repeatedly within the organization.
c. They define plans that define company responses to specific situations, such as
emergencies or setbacks.
d. They are most important in the organizations.
e. None of these.

15. Standing plans are

a. developed to achieve a set of goals that are unlikely to be repeated in the future.
b. used to provide guidance for tasks performed repeatedly within the organization.
c. define company responses to specific situations, such as emergencies or setbacks.
d. the most important in the organizations.
e. none of these.

16. ____ refers to the use of managerial tools to direct resources toward the achievement of strategic
goals.
a. Strategy formulation
b. Strategy coordination
c. Strategy execution (implementation)
d. Strategy control
e. Strategy planning

17. Which of the following refers to the planning and decision making that lead to the establishment of
the organization's goals and of a specific strategic plan?
a. Strategy formulation
b. Strategy implementation
c. Strategy coordination
d. Strategy control
e. SWOT

18. Fred has been assigned to conduct a SWOT analysis for his organization, Flintstones, Inc. As part of
this assignment, Fred will
a. conduct an external wage survey.
b. search for the strengths, weaknesses, opportunities, and threats that impact his firm.

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 c. choose a grand strategy for his firm.
d. do a cost/benefit analysis.
e. develop a mission.

19. Techniques used to monitor external environments include

a. hiring scanning organizations.
b. hiring the competitive intelligence professionals.
c. government reports.
d. professional journals.
e. all of these.

20. Where does the information about opportunities and threats comes from?
a. An analysis of the organization's internal environment
b. A department by department study of the organization
c. Scanning the external environments(national & global/industry analysis)
d. Employee grievances
e. Financial ratios of the organization

II: Short Answer/Essay Questions

1. Compare the four levels of goals and plans (Short Answer) [mission statement=purpose of the
organization’s existence and it’s differentiation from those in the same industry, influences the
other levels of planning in the organization; strategic goal &planning= entire organization and
blue-print plan, done by top management 2-5 years; tactical goal & planning= goals set by the
departments in the organisation, breal-down of the strategic goal and plan, middle management
6months-12 years; operational goal & plan= goals set for the individuals and teams in the
organization, further breakdown of the tactical goal and plan, first line management, 30 days-
6months]

Strategic goals and strategic planning look at the long-term issues of the organization as well as it
helps to develop a plan for growth or change of the business function. Hence, goals developed at
the strategic planning level are often increased. For example, strategic planning is when an
organization wants to expand its business globally.

Tactical goals and planning are used to reach the goals set out by strategic planning. Tactical
planning includes short-term objectives and tasks designed to create specific results within a
limited time span. For example, if a company wants to make a bid, it will have to use promotions,
lower prices, and customized offers as tactics to achieve its goal. It would be a single-time plan
and doesn’t harm the company if the company fails to secure the bid. 

2. Describe the Boston Consulting Group matrix, including its dimensions, quadrants, and strategic
recommendations. (Essay main points in content)

 Dimensions: business growth rate and market share

 Quadrants:
1. Star= growth rate is high, market share is high, profitable
2. Cash cow= growth rate is slow, market share high, profitable
3. Question mark= growth rate is high, market share is low, uncertainty profitability
4. Dog= growth rate is low, market share is low, unprofitable
 Strategic recommendation

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 - Star= invest
- Cash cow= milk
- Question mark= invest; divest
- Dog= divest

2. Briefly describe the tools for putting strategy into action (Short Answer)
[what will make a plan to work]

1. Visible leadership: leader which create values and use the values; they become role models
in the firm; inspire and motivate the workers
2. Clear role and accountability: managers must delegate (transfer authority and responsibility
to workers), define the roles, create teams
3. Human resource: invest in workers by hiring right people for the job; training
(KnowledgeSkillsAbilities)
4. Communication= open-line communication with workers, honest, debate; get workers
involved

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