CHAPTER 5: PLANNING

1. Planning provides direction to managers and nonmanagers alike. T

2. A key function of planning is to create goals. T
3. The four reasons that organizations plan is to provide direction, set standards,
minimize waste, and reduce uncertainty and the impact of change. T
4. Planning rarely improves teamwork and cooperation among employees. F
HELP MOST
5. An organization that fails to plan will find it hard to assess progress. T
6. Strategic management is the act of figuring out how an organization will
compete in the marketplace and attract loyal customers. T
7. The first step in the strategic management process is analyzing the external
environment. F
DETERMINE STRATEGIC POSITION (xđ vị trí ch.l)
8. A mission statement for a kayak manufacturer might be: To make the highest-
quality kayaks and sell them at a competitive price. T
9. An external analysis will identify the threats to a company's well-being, but
not opportunities for success. F
10. Core competencies include an organization's major capabilities and its
resources. F
11. Capabilities are "what" an organization has; resources are "how" it uses what
it has. F
DO - HAS
12. SWOT analysis includes the identification of an organization's strengths,
weaknesses, opportunities, and threats. T
13. The final three steps in the strategic management process involve the
creation and implementation of strategies for realizing organizational goals. T
14.A company with a stability strategy will plan to dramatically increase market
share in a highly competitive market. F
CONCENTRATION STRATEGIES
15. Which of the following is NOT a function of planning? – Settling disputes
between employees
16. Planning is concerned with both ends and means.
17. Which of the following is NOT a reason for managers to plan? – To
establish responsibility for mistakes.
18. Planning gives organizations direction that primarily helps them improve
teamwork and coordinate activities.
19. Planning gives organizations a way to deal with change that reduces
uncertainty.
20. Organizations that don't formally plan may be more likely to have multiple
departments performing the same task.
21. One effect of planning on managers is that it forces them to anticipate and
consider the effect of change.
22. Managers who fail to plan may be adversely affected by change.
23. The first step in the six-step strategic management process is to identify the
organization's mission.
24. The first three steps of the strategic management process involve planning
strategies.
25. A mission statement does NOT include which of the following? – Strategy
for success.
26. An external analysis, the second step of the strategic management process,
helps identify a company's opportunities and threats.
27. An internal analysis, the third step of the strategic management process,
helps identify resources and capabilities.
28. Which term refers to an organization's capital, workers, and patents? –
Resources
29. An organization's resources identify what the organization has.
30. An organization's capabilities identify what the organization can do.
31. SWOT analysis combines external and internal analyses.
32. Once SWOT analysis is complete, managers formulate strategies to address
the issues that came up during the analysis.
33. The three different types of strategies that managers implement are
corporate, competitive, functional.
34. Which of the following makes up the three main types of corporate
strategies? – Growth, stability, renewal.
35. Growth strategies include vertical integration, horizontal integration,
concentration, diversification.
36. A salad dressing company that buys a large olive grove to produce olive oil
is practicing which of the following? – Forward vertical integration
 A sneaker company creating its own stores where it sells only its own
brand is an example of which of the following? – Forward vertical
integration
37. In forward vertical integration, a company becomes its own distributor,
while in backward vertical integration, the company is its own supplier.
38. Two movie studios combining to form one larger studio is an example of
which of the following? – Horizontal integration
39. When Google purchased YouTube, a company that featured different, but
related products, Google was engaging in which of the following? –
Diversification.
40. A cost leadership competitive strategy focuses on which of the following? –
Efficiency