MGT 301 Exam #2 UK Kirn UPDATED
Exam Questions and CORRECT Answers
Planning - CORRECT ANSWER - - Planning is defined as setting goals and deciding how
to achieve them
- Planning is coping with uncertainty by formulating future courses of action to achieve specified
results
Plan - CORRECT ANSWER - - a document that outlines how goals are going to be met
Strategy - CORRECT ANSWER - - a large-scale action plan that sets the direction for an
organization, what must be done in the long term
- it represents an "educated guess" about what long-term goals or direction to pursue for the
survival or prosperity of the organization
Business plan - CORRECT ANSWER - - a document that outlines a proposed firm's goals,
the strategy for achieving them, and the standards for measuring success
Strategic Management - CORRECT ANSWER - - a process that involves managers from
all parts of the organization in the formulation and the implementation of strategies and strategic
goals
- derived from an organization's mission and vision
Why is planning and strategic management important? - CORRECT ANSWER - 1.
Provide direction and momentum
2. Encourage new ideas
3. Develop a sustainable competitive advantage
Planning and Strategic Management Steps - CORRECT ANSWER - 1. Establish mission
and values
2. Assess the current reality
,3. Formulate the strategy and operational plans
4. Implement the strategy
5. Maintain strategic control
Competitive Advantage - CORRECT ANSWER - - the ability of an organization to
produce goods or services more effectively than competitors do, thereby outperforming them
Sustainable Competitive Advantage - CORRECT ANSWER - - Occurs when an
organization is able to get and stay ahead in four areas
Four Areas of Sustainable Advantage - CORRECT ANSWER - In being responsive to
customers
In innovating
In quality
In effectiveness
Mission Statement - CORRECT ANSWER - expresses the purpose of the organization
Vision Statement - CORRECT ANSWER - A clear sense of the future and the actions
needed to get there
Value Statement - CORRECT ANSWER - what the company stands for: its core priorities,
the values its employees embody, and what its products contribute to the world
Fundamentals of Planning - CORRECT ANSWER - -strategic planning: 1-5 years (top
management)
-tactical planning: 6-24 months (middle management)
-operational planning: 1-52 weeks (first-line management)
, Vision Statement Includes... - CORRECT ANSWER - people, portfolio, partners, planet,
profit, and productivity
Goals - CORRECT ANSWER - a specific commitment to achieve a measurable result
within a stated period of time
Short Term Goals - CORRECT ANSWER - - referred to as tactical or operational goals
- generally span 12 months and connect to strategic goals (means-end chain)
Long Term Goals - CORRECT ANSWER - - strategic goals
- tend to span 1 to 5 years and focus on achieving the strategies identified in a company's plan
Operating Plan - CORRECT ANSWER - - a plan that breaks long-term output into short-
term targets or goals
- turns strategic plans into actionable short-term goals and action plans
Action Plan - CORRECT ANSWER - - defines the course of action (the tactics) needed to
achieve the stated goal
- contains a project date for completing the desired activities for each tactic
SMART Goals - CORRECT ANSWER - Specific, Measurable, Attainable, Realistic,
Timely
Specific (SMART) - CORRECT ANSWER - goals should be stated in specific rather than
vague terms
Measurable (SMART) - CORRECT ANSWER - whenever possible, goals should be
measurable, or quantifiable
Exam Questions and CORRECT Answers
Planning - CORRECT ANSWER - - Planning is defined as setting goals and deciding how
to achieve them
- Planning is coping with uncertainty by formulating future courses of action to achieve specified
results
Plan - CORRECT ANSWER - - a document that outlines how goals are going to be met
Strategy - CORRECT ANSWER - - a large-scale action plan that sets the direction for an
organization, what must be done in the long term
- it represents an "educated guess" about what long-term goals or direction to pursue for the
survival or prosperity of the organization
Business plan - CORRECT ANSWER - - a document that outlines a proposed firm's goals,
the strategy for achieving them, and the standards for measuring success
Strategic Management - CORRECT ANSWER - - a process that involves managers from
all parts of the organization in the formulation and the implementation of strategies and strategic
goals
- derived from an organization's mission and vision
Why is planning and strategic management important? - CORRECT ANSWER - 1.
Provide direction and momentum
2. Encourage new ideas
3. Develop a sustainable competitive advantage
Planning and Strategic Management Steps - CORRECT ANSWER - 1. Establish mission
and values
2. Assess the current reality
,3. Formulate the strategy and operational plans
4. Implement the strategy
5. Maintain strategic control
Competitive Advantage - CORRECT ANSWER - - the ability of an organization to
produce goods or services more effectively than competitors do, thereby outperforming them
Sustainable Competitive Advantage - CORRECT ANSWER - - Occurs when an
organization is able to get and stay ahead in four areas
Four Areas of Sustainable Advantage - CORRECT ANSWER - In being responsive to
customers
In innovating
In quality
In effectiveness
Mission Statement - CORRECT ANSWER - expresses the purpose of the organization
Vision Statement - CORRECT ANSWER - A clear sense of the future and the actions
needed to get there
Value Statement - CORRECT ANSWER - what the company stands for: its core priorities,
the values its employees embody, and what its products contribute to the world
Fundamentals of Planning - CORRECT ANSWER - -strategic planning: 1-5 years (top
management)
-tactical planning: 6-24 months (middle management)
-operational planning: 1-52 weeks (first-line management)
, Vision Statement Includes... - CORRECT ANSWER - people, portfolio, partners, planet,
profit, and productivity
Goals - CORRECT ANSWER - a specific commitment to achieve a measurable result
within a stated period of time
Short Term Goals - CORRECT ANSWER - - referred to as tactical or operational goals
- generally span 12 months and connect to strategic goals (means-end chain)
Long Term Goals - CORRECT ANSWER - - strategic goals
- tend to span 1 to 5 years and focus on achieving the strategies identified in a company's plan
Operating Plan - CORRECT ANSWER - - a plan that breaks long-term output into short-
term targets or goals
- turns strategic plans into actionable short-term goals and action plans
Action Plan - CORRECT ANSWER - - defines the course of action (the tactics) needed to
achieve the stated goal
- contains a project date for completing the desired activities for each tactic
SMART Goals - CORRECT ANSWER - Specific, Measurable, Attainable, Realistic,
Timely
Specific (SMART) - CORRECT ANSWER - goals should be stated in specific rather than
vague terms
Measurable (SMART) - CORRECT ANSWER - whenever possible, goals should be
measurable, or quantifiable
