C483 Principles of Management Exam Questions
and Correct Answers
Planning
Conscious, systematic process of making decisions about goals and activities that an individual,
group, work unit, or organizatiion will pursue in the future
Planning Process
Situational Analysis; Alternative Goals and Plans; Goal and Plan Evaluation; Goal and Plan
Selection; Implementation; Monitor and Control
Strategic Planning
Making decisions about the organization's long-term goals and strategies.
Strategic Goals
Major targets or results that relate to the long-term survival, value, and growth of the
organization.
Strategy
A pattern of actions and resource allocations designed to achieve the goals of the orgnization
Tactical Planning
Translates broad strategic goals and plans into specific goals and plans that are relevant to a
definite portion of the organization.
Operational Planning
,Identifies the specific procedures and processes required at lower levels of the organization.
Strategic Management Process
Establishment of mission, vision, and goals; Analysis of external opportunities and threats;
Analysis of internal strengths and weaknesses; SWOT analysis and strategy formulation;
Strategy implementation; Strategic control
Core Capability (Competency)
Something a company does especially well relative to its competitors
Benchmarking
Process of assessing how well one company's basic functions and skills compare with those of
another company or set of companies.
Corporate Strategy
Identifies the set of businesses, markets, or industries in which the organization competes and the
distribution of resources among those businesses.
Concentration Strategy
Focuses on a single business competing in a single industry.
Vertical Integration Strategy
Involves expanding the domain of the organization into supply channels or to distributors.
Concentric Diversification
Involves moving into new businesses that are related to the company's original core business.
,Conglomerate Diversification
A Corporate Strategy that involves expansion into unrelated businesses.
Stars, Question Marks, Cash Cows, Dogs
Categories on a BCG (Boston Consulting Group) matrix.
Business Strategy
Defines the major actions by which an organization builds and strengthens its competitive
position in the marketplace.
Low-Cost Strategies
Attempt to be efficient and offer a standard, no-frills product.
Differentiation Strategy
A company attempts to be unique in its industry or market segment along some dimensions that
customers value.
Functional Strategies
Implemented by each functional area of the organization to support the business strategy.
Strategy Implementaton
Define strategic tasks; Assess organization capabilities; Develop an implementation agenda;
Create an implementation plan.
Strategic Control System
, Designed to support managers in evaluating the organization's progress with its strategy and,
when discrepancies exist, take corrective action.
Organic Structure
An organizational form that emphasizes flexibility.
Mechanistic Organization
A form of organization that seeks to maximize internal efficiency.
Strategic Alliance
A formal relationship created with the purpose of joint pursuit of mutual goals.
Learning Organization
An organization skilled at creating, acquiring, and transferring knowledge and at modifying its
behavior to reflect new knowledge and insights.
High-Involvement Organization
Top management ensures there is a consensus about the direction in which the business is
heading in this type of organization.
Scale Economies
Lower costs per unit of production.
Economies of Scope
Materials and processes employed in one product can be used to make related products.
Downsizing
and Correct Answers
Planning
Conscious, systematic process of making decisions about goals and activities that an individual,
group, work unit, or organizatiion will pursue in the future
Planning Process
Situational Analysis; Alternative Goals and Plans; Goal and Plan Evaluation; Goal and Plan
Selection; Implementation; Monitor and Control
Strategic Planning
Making decisions about the organization's long-term goals and strategies.
Strategic Goals
Major targets or results that relate to the long-term survival, value, and growth of the
organization.
Strategy
A pattern of actions and resource allocations designed to achieve the goals of the orgnization
Tactical Planning
Translates broad strategic goals and plans into specific goals and plans that are relevant to a
definite portion of the organization.
Operational Planning
,Identifies the specific procedures and processes required at lower levels of the organization.
Strategic Management Process
Establishment of mission, vision, and goals; Analysis of external opportunities and threats;
Analysis of internal strengths and weaknesses; SWOT analysis and strategy formulation;
Strategy implementation; Strategic control
Core Capability (Competency)
Something a company does especially well relative to its competitors
Benchmarking
Process of assessing how well one company's basic functions and skills compare with those of
another company or set of companies.
Corporate Strategy
Identifies the set of businesses, markets, or industries in which the organization competes and the
distribution of resources among those businesses.
Concentration Strategy
Focuses on a single business competing in a single industry.
Vertical Integration Strategy
Involves expanding the domain of the organization into supply channels or to distributors.
Concentric Diversification
Involves moving into new businesses that are related to the company's original core business.
,Conglomerate Diversification
A Corporate Strategy that involves expansion into unrelated businesses.
Stars, Question Marks, Cash Cows, Dogs
Categories on a BCG (Boston Consulting Group) matrix.
Business Strategy
Defines the major actions by which an organization builds and strengthens its competitive
position in the marketplace.
Low-Cost Strategies
Attempt to be efficient and offer a standard, no-frills product.
Differentiation Strategy
A company attempts to be unique in its industry or market segment along some dimensions that
customers value.
Functional Strategies
Implemented by each functional area of the organization to support the business strategy.
Strategy Implementaton
Define strategic tasks; Assess organization capabilities; Develop an implementation agenda;
Create an implementation plan.
Strategic Control System
, Designed to support managers in evaluating the organization's progress with its strategy and,
when discrepancies exist, take corrective action.
Organic Structure
An organizational form that emphasizes flexibility.
Mechanistic Organization
A form of organization that seeks to maximize internal efficiency.
Strategic Alliance
A formal relationship created with the purpose of joint pursuit of mutual goals.
Learning Organization
An organization skilled at creating, acquiring, and transferring knowledge and at modifying its
behavior to reflect new knowledge and insights.
High-Involvement Organization
Top management ensures there is a consensus about the direction in which the business is
heading in this type of organization.
Scale Economies
Lower costs per unit of production.
Economies of Scope
Materials and processes employed in one product can be used to make related products.
Downsizing
