Business Management Exam 2 Questions With Correct Answers

Strategy - Answer a large scale action plan that sets the direction for the organization Strategic Management - Answer a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals Vision - Answer a long-term goal describing what an organization wants to become; a clears sense of the future and the actions needed to get there Strategic Planning - Answer when top managers determine what the organization's long term goals should be for the next 1-5 years with the resources they expect to have available Tactical Planning - Answer middle managers determine what contributions their departments or similar work units can make w/ their given resources in the next 6-24 months Operational Planning - Answer the first line managers determine how to accomplish specific tasks w/ available resources in the next 1-52 weeks Means-End Chain - Answer the accomplishment of low level goals having affect on the goals of the higher levels of management Standing Plans - Answer plans developed for activities that occur repeatedly overtime SMART - Answer Specific Measurable Attainable Results-Oriented Target Dates Peter Drucker's Management by Objectives (MBO) - Answer 1. Managers and employees set objectives for the employee 2. Managers develop action plans 3. Managers and employees periodically review employee performance 4. Managers makes a performance appraisal and rewards the employee according to results Planning/Control Cycle - Answer 1. Make a plan 2. Carry out the plan 3. Control the direction by comparing results w/ the plan 4. Control the direction by taking corrective action in two ways: --correcting deviations --improving future plans Advantages of Establishing Deadlines - Answer Provides a mechanism for giving ourselves feedback; Helps concentrate the mind to make quick decisions; Provides motivation Business Model - Answer the operations of the business, its components and functions, and its expected revenues and expenses