MGT 8803 - Business Strategy UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Planning is the _ form of management - CORRECT ANSWER - primary
business model - CORRECT ANSWER - how the firm is configured to create profitable
revenue streams
The business model is the end result of... - CORRECT ANSWER - strategic decisions and
trade-offs made by senior managers over time
Analysis can _ uncertainty - CORRECT ANSWER - reduce
Planning - CORRECT ANSWER - the process of anticipating future events and determining
strategies to achieve organizational objectives in the future; includes defining goals, establishing
strategies, and developing plans to coordinate activities
Organizing (and Staffing) - CORRECT ANSWER - Process of ensuring that the necessary
human and physical resources are available to achieve the planning goals; Includes determining
what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom,
and where decisions are to be made. Also includes recruiting, selecting, training, and
performance evaluation
Leading - CORRECT ANSWER - inspiring and motivating workers to work hard to achieve
organizational goals; includes motivating employees, directing the activities of others, selecting
the most effective communication channel and resolving conflicts
Controlling - CORRECT ANSWER - monitoring performance, comparing it with goals, and
taking corrective action as needed
,Management Process - CORRECT ANSWER - planning, organizing, leading, and controlling
the use of resources to accomplish performance goals
Hierarchy of Plans - CORRECT ANSWER - planning flows in a top-down sequence from
overall vision, mission, and objectives to more specific detailed level of plans (strategic goals ->
strategic plans -> tactical goals -> tactical plans -> operational goals -> operational plans)
context for planning - CORRECT ANSWER - general environmental factors, suppliers,
competitors, regulators, partners and shareholders, customers, communities
Why is planning important? - CORRECT ANSWER - 1. Planning is necessary to give the
organization a sense of direction and purpose
2. Planning is a useful way of getting managers to participate in decision making about the
appropriate goals and strategies for an organization
3. A plan helps coordinate managers of the different functions and divisions of an organization to
ensure that they all pull in the same direction and work to achieve its desired future state
4. A plan can be used as a device for controlling managers within an organization
Types of Plans - CORRECT ANSWER - strategic, tactical, operational
Types of organizational structures - CORRECT ANSWER - hierarchical (tall), flat
(networked)
Hierarchical Organizational Structure - CORRECT ANSWER - an organization form or
structure based on the concepts of division of labor, specialization, spans of control and unity of
command
Flat Organizational Structure - CORRECT ANSWER - An organizational structure that has
only a few levels of management and emphasizes decentralization
, Levels of Management - CORRECT ANSWER - top managers, middle managers, first-line
managers, team leaders
Most common plans - CORRECT ANSWER - strategic planning (corporate, business unit,
and functional)
functional planning
tactical/operational planning (work plans, schedules, etc.; responsible typically for budgeting and
scheduling)
Strategic Plans - CORRECT ANSWER - plans that apply to the entire organization and
establish the organization's overall goals; aim for competitive advantage
Strategic Business Unit (SBU) - CORRECT ANSWER - a subgroup of a single business or
collection of related businesses within the larger organization
Functional Plans - CORRECT ANSWER - indicate how different operations within the
organization will help advance the overall strategy; aligned to Business Unit Level Planning
functional structure - CORRECT ANSWER - An organizational structure composed of all the
departments (i.e. marketing, finance, etc.) that an organization requires to produce its goods or
services.
divisional structure - CORRECT ANSWER - An organizational structure composed of
separate business units within which are the functions that work together to produce a specific
product for a specific customer
Tactical/Operational Plans - CORRECT ANSWER - Stated actions and goals that support
achieving the divisional strategy; narrow and specific
SMART Goal Setting - CORRECT ANSWER - S. specific
M. measurable
ACTUAL Exam Questions and CORRECT
Answers
Planning is the _ form of management - CORRECT ANSWER - primary
business model - CORRECT ANSWER - how the firm is configured to create profitable
revenue streams
The business model is the end result of... - CORRECT ANSWER - strategic decisions and
trade-offs made by senior managers over time
Analysis can _ uncertainty - CORRECT ANSWER - reduce
Planning - CORRECT ANSWER - the process of anticipating future events and determining
strategies to achieve organizational objectives in the future; includes defining goals, establishing
strategies, and developing plans to coordinate activities
Organizing (and Staffing) - CORRECT ANSWER - Process of ensuring that the necessary
human and physical resources are available to achieve the planning goals; Includes determining
what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom,
and where decisions are to be made. Also includes recruiting, selecting, training, and
performance evaluation
Leading - CORRECT ANSWER - inspiring and motivating workers to work hard to achieve
organizational goals; includes motivating employees, directing the activities of others, selecting
the most effective communication channel and resolving conflicts
Controlling - CORRECT ANSWER - monitoring performance, comparing it with goals, and
taking corrective action as needed
,Management Process - CORRECT ANSWER - planning, organizing, leading, and controlling
the use of resources to accomplish performance goals
Hierarchy of Plans - CORRECT ANSWER - planning flows in a top-down sequence from
overall vision, mission, and objectives to more specific detailed level of plans (strategic goals ->
strategic plans -> tactical goals -> tactical plans -> operational goals -> operational plans)
context for planning - CORRECT ANSWER - general environmental factors, suppliers,
competitors, regulators, partners and shareholders, customers, communities
Why is planning important? - CORRECT ANSWER - 1. Planning is necessary to give the
organization a sense of direction and purpose
2. Planning is a useful way of getting managers to participate in decision making about the
appropriate goals and strategies for an organization
3. A plan helps coordinate managers of the different functions and divisions of an organization to
ensure that they all pull in the same direction and work to achieve its desired future state
4. A plan can be used as a device for controlling managers within an organization
Types of Plans - CORRECT ANSWER - strategic, tactical, operational
Types of organizational structures - CORRECT ANSWER - hierarchical (tall), flat
(networked)
Hierarchical Organizational Structure - CORRECT ANSWER - an organization form or
structure based on the concepts of division of labor, specialization, spans of control and unity of
command
Flat Organizational Structure - CORRECT ANSWER - An organizational structure that has
only a few levels of management and emphasizes decentralization
, Levels of Management - CORRECT ANSWER - top managers, middle managers, first-line
managers, team leaders
Most common plans - CORRECT ANSWER - strategic planning (corporate, business unit,
and functional)
functional planning
tactical/operational planning (work plans, schedules, etc.; responsible typically for budgeting and
scheduling)
Strategic Plans - CORRECT ANSWER - plans that apply to the entire organization and
establish the organization's overall goals; aim for competitive advantage
Strategic Business Unit (SBU) - CORRECT ANSWER - a subgroup of a single business or
collection of related businesses within the larger organization
Functional Plans - CORRECT ANSWER - indicate how different operations within the
organization will help advance the overall strategy; aligned to Business Unit Level Planning
functional structure - CORRECT ANSWER - An organizational structure composed of all the
departments (i.e. marketing, finance, etc.) that an organization requires to produce its goods or
services.
divisional structure - CORRECT ANSWER - An organizational structure composed of
separate business units within which are the functions that work together to produce a specific
product for a specific customer
Tactical/Operational Plans - CORRECT ANSWER - Stated actions and goals that support
achieving the divisional strategy; narrow and specific
SMART Goal Setting - CORRECT ANSWER - S. specific
M. measurable
