Question 1

You are thinking of buying a tortilla factory in a nearby city.This action would be an example of ________.

Accepted Answer

A)  forward vertical integration
B)  horizontal integration
C)  backward vertical integration
D)  forward diversification C

Question 2

The breadth of a plan refers to ________ concerns.

Accepted Answer

A)  long-term versus short-term
B)  strategic versus operational
C)  specific versus directional
D)  single use versus standing B

Question 3

A politician whose ultimate goal is to get elected is planning campaign ads for TV.In planning the ads,the politician is functioning at a ________ level.

Accepted Answer

A)  strategic
B)  long-term
C)  operational
D)  directional C

Question 4

There is a growing trend in your community.People are trying to reduce sodium and fat in their diets.You've also heard news reports about potential legislation to govern sodium and fat levels in fast food like tacos.With so much information you're uncertain what to do.Which analysis tool will be the best to help you consider these trends logically and develop strategies?

Accepted Answer

A)  Porter's five forces analysis
B)  internal analysis
C)  mission statement analysis
D)  SWOT analysis

Question 5

The sole proprietor of The Window Doctor realizes that should something unforeseen affect his health and prevent him from working actively in his business,his goals may not be realized.He begins to consider alternatives to ensure the business continues in his absence.This demonstrates ________.

Accepted Answer

A)  forecasting
B)  benchmarking
C)  contingency planning
D)  PESTEL planning

Question 6

In order to ensure that prices at Penny Pincher remain well below their competition,managers at Penny Pincher regularly review the best practices and pricing policies of other grocery stores.They then use this information to improve upon their current plans.Which planning tool are the Penny Pincher managers using?

Accepted Answer

A)  scenario planning
B)  MBO
C)  benchmarking
D)  specific planning

Question 7

Compared to goals,objectives are ________.

Accepted Answer

A)  of a longer time frame
B)  broader
C)  more specific
D)  more general

Question 8

Core competencies include an organization's major capabilities and its resources.

Accepted Answer

A) True 
 B)False

Question 9

List and discuss two reasons for planning.

Accepted Answer

The answer of List and discuss two reasons for planning....

Question 10

In reality,all organizations have ________.

Accepted Answer

A)  a single goal
B)  multiple goals
C)  the same goals
D)  the same single goal

Question 11

Formal planning typically leads to which of the following?

Accepted Answer

A)  higher profits
B)  lower productivity
C)  higher sales,but lower profits
D)  tension between different management levels

Question 12

One criticism of formal planning is that it focuses on how to beat the competition rather than how to ________.

Accepted Answer

A)  have cordial relationships with the competition
B)  focus on new opportunities
C)  balance the organization's budget
D)  cooperate with the competition

Question 13

A salad dressing company buys a large olive grove.The olive grove produces olive oil,a key ingredient in many salad dressings.The salad dressing company is practicing which of the following?

Accepted Answer

A)  concentration
B)  forward vertical integration
C)  backward vertical integration
D)  horizontal integration

Question 14

For a limited time,Taco Rocket is thinking of coming out with a new Fifth Degree Burrito that is so hot it "burns a hole in the plate." Catering to the small segment of the market that likes super-hot food is an example of a ________.

Accepted Answer

A)  focus strategy
B)  cost leader strategy
C)  long-term strategy
D)  differentiation strategy

Question 15

Explain the cost leadership strategy according to Michael Porter.

Accepted Answer

The answer of Explain the cost leadership strategy according to...

Question 16

An athletic shoe company creating its own stores where it sells only its own brand is an example of which of the following?

Accepted Answer

A)  forward vertical integration
B)  backward horizontal integration
C)  forward horizontal integration
D)  reverse vertical integration

Question 17

Two movie studios combining to form one larger studio is an example of which of the following?

Accepted Answer

A)  forward vertical integration
B)  horizontal integration
C)  backward vertical integration
D)  diversification

Question 18

Two companies that both sell fine time pieces combine.What are they doing?

Accepted Answer

A)  diversifying,because they both sell the same products
B)  integrating vertically,because they both sell the same products
C)  backward vertical integration,because they are sharing distribution
D)  integrating horizontally,because they both sell similar products

Question 19

SWOT analysis identifies and analyzes an organization's ________.

Accepted Answer

A)  strengths,weaknesses,opportunities,and threats
B)  strategy for competing in the market
C)  human resource assets
D)  long-term goals

Question 20

In forward vertical integration,a company becomes its own ________,while in backward integration the company is its own ________.

Accepted Answer

A)  supplier; distributor
B)  supplier; customer
C)  distributor; monitor
D)  distributor; supplier

Exam 3: Planning and Strategic Management