MGMT 3013 Exam 2 Questions and
Answers 100% Pass
planning - ✔✔the first of the four functions in the management process. involves setting
goals and deciding how to achieve them
business plan - ✔✔document that outlines a proposed firm's goals, the strategy for
achieving them, and the standards for measuring success
business model - ✔✔outlines the need the firm will fill, the operations of the business,
its components and functions, as well as the expected revenues and expenses
strategy - ✔✔setting long-term direction
strategic plan - ✔✔a large-scale action plan that sets the long-term goals and direction
for an organization
strategy - ✔✔represents an "educated guess" about what must be done in the long term
for the survival or prosperity of the organization or its principal parts
strategic management - ✔✔a process that involves managers from all parts of the
organization in the formulation and the implementation of strategies and strategic
goals. derives from an organization's mission and vision
Brittie Donald, All Rights Reserved © 2025 1
,1. Provide direction and momentum
2. Encourage new ideas
3. Develop a sustainable competitive advantage - ✔✔whay are planning and strategic
management important?
strategy innovation - ✔✔the ability to reinvent the basis of competition within existing
industries - "bold new business models that put incumbents on the defensive"
competitive advantage - ✔✔the ability of an organization to produce goods or services
more effectively than its competitors do, thereby outperforming them
sustainable competitive advantage - ✔✔occurs when an organization is able to get and
stay ahead in four areas
responsive, innovating, quality, effectiveness - ✔✔what are the four areas to stay ahead
of in order to maintain competitive advantage?
First step of planning and strategic management - ✔✔Establish the mission and vision
and values
second step of planning and strategic management - ✔✔assess the current reality
third step of planning and strategic management - ✔✔formulate the grand strategy and
strategic, tactical, and operational plans
fourth step of planning and strategic management - ✔✔implement the strategy
Brittie Donald, All Rights Reserved © 2025 2
, fifth step of planning and strategic management - ✔✔maintain strategic control
mission statement - ✔✔express the purpose of the organization. what is our reason for
being? why are we here?
vision statement - ✔✔a clear sense of the future and the actions needed to get there.
what do we want to become? where do we want to go?
value statement - ✔✔what the company stands for: its core priorities, the values its
employees embody, and what its products contribute to the world. what values do we
want to emphasize?
fundamentals of planning - ✔✔mission statement > vision statement > values statement
> strategic planning > tactical planning > operational planning
strategic planning - ✔✔done by top managers for the next 1-5 years
tactical planning - ✔✔done by middle manager for the next 6-24 months
operational planning - ✔✔done by first-line managers for the next 1-52 weeks
operating plan - ✔✔a plan that breaks long-term output into short-term targets or goals.
turns strategic plans into actionable short-term goals and action plans
action plan - ✔✔defines the course of action (the tactics) needed to achieve a stated goal.
contains a projected date for completing the desired activities for each tactic
Brittie Donald, All Rights Reserved © 2025 3
Answers 100% Pass
planning - ✔✔the first of the four functions in the management process. involves setting
goals and deciding how to achieve them
business plan - ✔✔document that outlines a proposed firm's goals, the strategy for
achieving them, and the standards for measuring success
business model - ✔✔outlines the need the firm will fill, the operations of the business,
its components and functions, as well as the expected revenues and expenses
strategy - ✔✔setting long-term direction
strategic plan - ✔✔a large-scale action plan that sets the long-term goals and direction
for an organization
strategy - ✔✔represents an "educated guess" about what must be done in the long term
for the survival or prosperity of the organization or its principal parts
strategic management - ✔✔a process that involves managers from all parts of the
organization in the formulation and the implementation of strategies and strategic
goals. derives from an organization's mission and vision
Brittie Donald, All Rights Reserved © 2025 1
,1. Provide direction and momentum
2. Encourage new ideas
3. Develop a sustainable competitive advantage - ✔✔whay are planning and strategic
management important?
strategy innovation - ✔✔the ability to reinvent the basis of competition within existing
industries - "bold new business models that put incumbents on the defensive"
competitive advantage - ✔✔the ability of an organization to produce goods or services
more effectively than its competitors do, thereby outperforming them
sustainable competitive advantage - ✔✔occurs when an organization is able to get and
stay ahead in four areas
responsive, innovating, quality, effectiveness - ✔✔what are the four areas to stay ahead
of in order to maintain competitive advantage?
First step of planning and strategic management - ✔✔Establish the mission and vision
and values
second step of planning and strategic management - ✔✔assess the current reality
third step of planning and strategic management - ✔✔formulate the grand strategy and
strategic, tactical, and operational plans
fourth step of planning and strategic management - ✔✔implement the strategy
Brittie Donald, All Rights Reserved © 2025 2
, fifth step of planning and strategic management - ✔✔maintain strategic control
mission statement - ✔✔express the purpose of the organization. what is our reason for
being? why are we here?
vision statement - ✔✔a clear sense of the future and the actions needed to get there.
what do we want to become? where do we want to go?
value statement - ✔✔what the company stands for: its core priorities, the values its
employees embody, and what its products contribute to the world. what values do we
want to emphasize?
fundamentals of planning - ✔✔mission statement > vision statement > values statement
> strategic planning > tactical planning > operational planning
strategic planning - ✔✔done by top managers for the next 1-5 years
tactical planning - ✔✔done by middle manager for the next 6-24 months
operational planning - ✔✔done by first-line managers for the next 1-52 weeks
operating plan - ✔✔a plan that breaks long-term output into short-term targets or goals.
turns strategic plans into actionable short-term goals and action plans
action plan - ✔✔defines the course of action (the tactics) needed to achieve a stated goal.
contains a projected date for completing the desired activities for each tactic
Brittie Donald, All Rights Reserved © 2025 3
