MGT301 Exam 2 Kirn UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Planning 1. - CORRECT ANSWER - defined as setting goals and deciding how to achieve
them
Planning 2. - CORRECT ANSWER - coping with uncertainty found by formulating future
courses of actions to achieve specified results
Plan - CORRECT ANSWER - a document that outlines how goals are going to be met.
Business Plan - CORRECT ANSWER - a document that outlines a proposed firms goals, the
strategy for achieving them, and the standards for measuring success
Business Model - CORRECT ANSWER - 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 (Strategic Plan) - CORRECT ANSWER - a large scale action plan that sets the long-
term goals and direction for an organization
represents an "educated guess" about what must be done in the long term for the survival or the
prosperity of the organization or its principal parts
generally reconsidered every year due to ever-changing business conditions
Strategic Management - CORRECT ANSWER - a process that involves managers from all
parts of the organization in the formulation and the implementation of strategies and strategic
goals
,Planning and Strategic Management Plan - CORRECT ANSWER - 1. establish the mission
and vision and values
2. Assess the current reality
3. Formulate the grand strategy and strategic tactical, and operational plans
4. implement the strategy
5. maintain strategic control
Why planning and strategic management are important - CORRECT ANSWER - 1. providing
direction and momentum
2. encouraging new ideas
3. developing a sustainable competitive advantage
Why are direction and momentum important? - CORRECT ANSWER - - unless the plan is in
place, managers may well focus on just whatever is in front of them just "putting out fires"
- managers might be so preoccupied with day-to-day pressures that their organizations can lose
momentum
Strategy Innovation - CORRECT ANSWER - the ability to reinvent the basis of competition
within existing industries- "bold new business models that put incumbents on the defensive"
Competitive Advantage - CORRECT ANSWER - the ability of an organization to produce
goods or services more effectively than its competitors do, thereby outperforming them
Sustainable competitive advantage - CORRECT ANSWER - occurs when an organization is
able to get and stay ahead in 4 areas
1. in being responsive to customers
2. in innovating
3. in quality
4. in effectiveness
, VRIO - CORRECT ANSWER - a framework for analyzing a resource or capability to
determine its competitive strategic potential by answering 4 questions about its Value, Rarity,
Imitability, and Organization
Mission Statement - CORRECT ANSWER - - expresses the purpose of the organization
- What is our reason for being?
- why are we here?
Values Statement - CORRECT ANSWER - - 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 emphasize
Vision Statement - CORRECT ANSWER - - it is 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?
Strategic Planning (1-5 years) - CORRECT ANSWER - make long-term decisions about
overall direction of the organization. Managers need to pay attention to environment outside the
organization, be future oriented, deal with uncertain and highly competitive conditions
Tactical Planning (6-24 Months) - CORRECT ANSWER - Implement policies and plans of
top management, supervise and coordinate activities of first-line managers below, make
decisions often without base of clearly defined information procedures
Operational Planning (1-52 weeks) - CORRECT ANSWER - Direct daily tasks of non-
managerial personnel; decisions often predictable; following well-defined set of routine
procedures
Goals - CORRECT ANSWER - a specific commitment to achieve a measurable result within
a stated period of time
ACTUAL Exam Questions and CORRECT
Answers
Planning 1. - CORRECT ANSWER - defined as setting goals and deciding how to achieve
them
Planning 2. - CORRECT ANSWER - coping with uncertainty found by formulating future
courses of actions to achieve specified results
Plan - CORRECT ANSWER - a document that outlines how goals are going to be met.
Business Plan - CORRECT ANSWER - a document that outlines a proposed firms goals, the
strategy for achieving them, and the standards for measuring success
Business Model - CORRECT ANSWER - 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 (Strategic Plan) - CORRECT ANSWER - a large scale action plan that sets the long-
term goals and direction for an organization
represents an "educated guess" about what must be done in the long term for the survival or the
prosperity of the organization or its principal parts
generally reconsidered every year due to ever-changing business conditions
Strategic Management - CORRECT ANSWER - a process that involves managers from all
parts of the organization in the formulation and the implementation of strategies and strategic
goals
,Planning and Strategic Management Plan - CORRECT ANSWER - 1. establish the mission
and vision and values
2. Assess the current reality
3. Formulate the grand strategy and strategic tactical, and operational plans
4. implement the strategy
5. maintain strategic control
Why planning and strategic management are important - CORRECT ANSWER - 1. providing
direction and momentum
2. encouraging new ideas
3. developing a sustainable competitive advantage
Why are direction and momentum important? - CORRECT ANSWER - - unless the plan is in
place, managers may well focus on just whatever is in front of them just "putting out fires"
- managers might be so preoccupied with day-to-day pressures that their organizations can lose
momentum
Strategy Innovation - CORRECT ANSWER - the ability to reinvent the basis of competition
within existing industries- "bold new business models that put incumbents on the defensive"
Competitive Advantage - CORRECT ANSWER - the ability of an organization to produce
goods or services more effectively than its competitors do, thereby outperforming them
Sustainable competitive advantage - CORRECT ANSWER - occurs when an organization is
able to get and stay ahead in 4 areas
1. in being responsive to customers
2. in innovating
3. in quality
4. in effectiveness
, VRIO - CORRECT ANSWER - a framework for analyzing a resource or capability to
determine its competitive strategic potential by answering 4 questions about its Value, Rarity,
Imitability, and Organization
Mission Statement - CORRECT ANSWER - - expresses the purpose of the organization
- What is our reason for being?
- why are we here?
Values Statement - CORRECT ANSWER - - 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 emphasize
Vision Statement - CORRECT ANSWER - - it is 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?
Strategic Planning (1-5 years) - CORRECT ANSWER - make long-term decisions about
overall direction of the organization. Managers need to pay attention to environment outside the
organization, be future oriented, deal with uncertain and highly competitive conditions
Tactical Planning (6-24 Months) - CORRECT ANSWER - Implement policies and plans of
top management, supervise and coordinate activities of first-line managers below, make
decisions often without base of clearly defined information procedures
Operational Planning (1-52 weeks) - CORRECT ANSWER - Direct daily tasks of non-
managerial personnel; decisions often predictable; following well-defined set of routine
procedures
Goals - CORRECT ANSWER - a specific commitment to achieve a measurable result within
a stated period of time
