Mgt 8803 - Module 4 QUESTIONS WITH COMPLETE SOLUTIONS

What is planning? correct answer: Identifying goals and strategies to get to those goals. What was the focus of classical management? correct answer: Productivity, making workers and organizations more efficient. What are Fayol's four functions of management? correct answer: 1. Planning (deciding business goals and how to achieve them) 2. Organizing - (determining the best allocation of people and resources) 3. Leading - coordination the directing the activities of the employees 4. Controlling - observing and analyzing metrics What are the 4 reasons managers should plan? correct answer: 1. Gives direction to managers and non-managerial employees 2. Reduces uncertainty 3. Establishes goals or standards that facilitate control 4. Engages all levels of the organization What factors affect planning? correct answer: Organizational level Degree of environmental uncertainty Length of future commitments What are the 4 types of plans? correct answer: 1. Strategic 2. Functional 3. Operational/Tactical 4. Contingency What is business strategy? correct answer: The goal directed actions a firm intends to take in its quest to gain and sustain competitive advantage. What is competitive advantage? correct answer: Superior performance relative to other competitors in the same industry. What is competitive parity? correct answer: When two or more firms in the same industry perform at the same level. What is competitive disadvantage? correct answer: A firm underperforming relative to competitors in the same industry. What are three approaches to creating competitive advantage? correct answer: 1. Cost leadership 2. Differentiation 3. Focus What is a business model? correct answer: How the variou