MGT 8803: Strategy UPDATED ACTUAL Questions and
CORRECT Answers
Planning Defines goals, establishes strategies to achieve goals, and
develops plans to integrate and coordinate activities
Types of plans strategic, tactical, operational
Organizing and Staffing Determine what tasks are to be done, who is to do them, how
the tasks are to be grouped, who reports whom, and where
decisions are to be made
Also recruits, selects, trains, and evaluates performance
Leading Motivates employees, directs the activities of others, selects
the most effective communication channel, and resolves
conflicts
Controlling Monitors performance, compares it with goals, and corrects
any significant deviations
Hierarchy of plans Planning flows in a top-down sequence from overall vision to
more specific detailed level of plans
Strategic plans Broadly guide and position the firm relative to the competition
(e.g. corporate, business unit, and functional plans)
Functional plans Align the goals and direct the strategic activities of the
operating units
Operational plans Specify the details of how the operational goals will be
achieved
(e.g. budgets and schedules)
, Internal environment The firm's organizational structure; the firm's vision, mission,
values, and culture; the firm's people (their knowledge and
abilities); processes; technology; and the other assets of the
firm - physical assets and intellectual property
External environment Larger general environment of macro forces like economic
cycles, technological changes, social and demographic
changes; and environmental
factors specific to the firm's industry and markets
Why Planning is Important Provides direction and a basis for coordination for everyone in
the organization. Helps minimize waste and redundancy
Reduces uncertainty by developing a better understanding of
the firm's external environment Establishes goals from broad
firm-wide objectives to individual productivity standards
Involves and engages all levels of the organization (results:
higher job satisfaction)
Residual uncertainty Uncertainty that remains after optimal analysis has been done
Hierarchical (tall) organizational structure Numerous layers of middle management in a tall (hierarchical)
organizational structure, and often inefficient bureaucracies.
Senior Managers make most operational decisions, and
authority must be gained from several layers up before taking
action.
Information flows are generally from the top down.
Works well in stable environment with little variability.
Flat (networked) organizational structure Front-line employees are empowered to make a range of
decisions.
Information flows from the top down and from the bottom up
in a flat structure.
Few levels of middle management.
Decentralized decision-making and planning critical in
dynamic environments.
Types of managers Senior or top managers, middle managers, supervisors, and
team leaders
Strategic plans Broadly impacts the firm
Determines New Markets to enter or Existing Markets to leave
Concerns the overall scope of the firm
Identifies initiative to create and sustain competitive
advantage
Driven by management's vision, mission, and values
Covers extended planning horizons
Functional structure An organizational structure composed of all the departments
that an organization requires to produce its goods or services
CORRECT Answers
Planning Defines goals, establishes strategies to achieve goals, and
develops plans to integrate and coordinate activities
Types of plans strategic, tactical, operational
Organizing and Staffing Determine what tasks are to be done, who is to do them, how
the tasks are to be grouped, who reports whom, and where
decisions are to be made
Also recruits, selects, trains, and evaluates performance
Leading Motivates employees, directs the activities of others, selects
the most effective communication channel, and resolves
conflicts
Controlling Monitors performance, compares it with goals, and corrects
any significant deviations
Hierarchy of plans Planning flows in a top-down sequence from overall vision to
more specific detailed level of plans
Strategic plans Broadly guide and position the firm relative to the competition
(e.g. corporate, business unit, and functional plans)
Functional plans Align the goals and direct the strategic activities of the
operating units
Operational plans Specify the details of how the operational goals will be
achieved
(e.g. budgets and schedules)
, Internal environment The firm's organizational structure; the firm's vision, mission,
values, and culture; the firm's people (their knowledge and
abilities); processes; technology; and the other assets of the
firm - physical assets and intellectual property
External environment Larger general environment of macro forces like economic
cycles, technological changes, social and demographic
changes; and environmental
factors specific to the firm's industry and markets
Why Planning is Important Provides direction and a basis for coordination for everyone in
the organization. Helps minimize waste and redundancy
Reduces uncertainty by developing a better understanding of
the firm's external environment Establishes goals from broad
firm-wide objectives to individual productivity standards
Involves and engages all levels of the organization (results:
higher job satisfaction)
Residual uncertainty Uncertainty that remains after optimal analysis has been done
Hierarchical (tall) organizational structure Numerous layers of middle management in a tall (hierarchical)
organizational structure, and often inefficient bureaucracies.
Senior Managers make most operational decisions, and
authority must be gained from several layers up before taking
action.
Information flows are generally from the top down.
Works well in stable environment with little variability.
Flat (networked) organizational structure Front-line employees are empowered to make a range of
decisions.
Information flows from the top down and from the bottom up
in a flat structure.
Few levels of middle management.
Decentralized decision-making and planning critical in
dynamic environments.
Types of managers Senior or top managers, middle managers, supervisors, and
team leaders
Strategic plans Broadly impacts the firm
Determines New Markets to enter or Existing Markets to leave
Concerns the overall scope of the firm
Identifies initiative to create and sustain competitive
advantage
Driven by management's vision, mission, and values
Covers extended planning horizons
Functional structure An organizational structure composed of all the departments
that an organization requires to produce its goods or services
