MGT301 EXAM 2 KIRN UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

MGT301 EXAM 2 KIRN UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS

Question:
1. Planning
Answer:
defined as setting goals and deciding how to achieve them

Question:
2. Planning
Answer:
coping with uncertainty by formulating future courses of action to achieve specified results

Question:
3. Plan
Answer:
a document that outlines how goals are going to be met.

Question:
4. Business Plan
Answer:
a document that outlines a proposed firms goals, the strategy for achieving them, and the standards for
measuring success

Question:
5. Business Model
Answer:
outlines the:
-need the firm will fill
-the operations of the business
-its components and functions
-the expected revenues and expenses

Question:
6. Strategy (Strategic Plan)
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

Question:
7. 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

Question:
8. Planning and Strategic Management Plan
Answer:
1. establish the mission and vision and values
2. Assess the current reality
3. Formulate the grand strategy-strategic, tactical, and operational plans
4. implement the strategy
5. maintain strategic control

Question:
9. Why planning and strategic management are important
- 3 componets-
Answer:
1. providing direction and momentum
2. encouraging new ideas
3. developing a sustainable competitive advantage

Question:
10. Why are direction and momentum important?
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

Question:
11. Strategy Innovation Strategic innovation
Answer:
the ability to reinvent the basis of competition within existing industries- "bold new business models that
put incumbents on the defensive"

Question:
12. Competitive Advantage
Answer:
the ability of an organization to produce goods or services more effectively than its competitors do, thereby
outperforming them

Question:
13. Sustainable competitive advantage

, 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

Question:
14. Mission Statement
Answer:
- expresses the purpose of the organization
- What is our reason for being?
- why are we here?

Question:
15. Values Statement
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

Question:
16. Vision Statement
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?

Question:
17. Strategic Planning (1-5 years)
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

Question:
18. Goals
Answer:
a specific commitment to achieve a measurable result within a stated period of time

Question:
19. Long-term goals
Answer:
- generally referred to as a strategic goals
- tend to span 1-5 years and focus on achieving the strategies identified in a company's strategic plan