Name: 
 

Chapter 5 Organizational Goal Setting and Planning



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

Which of the following is NOT a criterion for effective goals?
a.
specific and measurable
b.
cover key result areas
c.
challenging but not unreasonably difficult
d.
linked to rewards
e.
undefined time period
 

 2. 

Organizational policies, rules, and procedures are examples of _____ plans.
a.
standing
b.
strategic
c.
single-use
d.
contingency
e.
event-driven
 

 3. 

Which of the following is NOT one of the five forces affecting industry competition as defined by Michael E. Porter?
a.
potential new entrants into the market
b.
bargaining power of buyers
c.
threat of inferior products
d.
bargaining power of suppliers
e.
rivalry among competitors
 

 4. 

The four levels of goals and plans (from top to bottom) are:
a.
Mission Statement, Strategic Goals/Plans, Tactical Goals/Plans, Operational Goals/Plans
b.
Mission Statement, Tactical Goals/Plans, Strategic Goals/Plans, Operational Goals/Plans
c.
Mission Statement, Operational Goals/Plans, Tactical Goals/Plans, Strategic Goals/Plans
d.
Strategic Goals/Plans, Mission Statement, Tactical Goals/Plans, Operational Goals/Plans
e.
Tactical Goals/Plans, Mission Statement, Strategic Goals/Plans, Operational Goals/Plans
 

 5. 

A source of motivation and commitment is one purpose of a(n)
a.
new factory and new product
b.
new president and new policies
c.
managerial change and refocus
d.
new product and profit
e.
plan and goal
 

 6. 

Broad statements of where the organization wants to be in the future, pertaining to the organization as a whole rather than to specific divisions or departments are known as:
a.
Investment plans
b.
Target market analysis
c.
Analyst reports
d.
Strategic goals
e.
Shareholder reports
 

 7. 

Plans that help to execute major strategic plans and to accomplish a specific part of the company’s strategy are known as ___________.
a.
strategic goals
b.
organizational plans
c.
mission plans
d.
tactical goals
e.
tactical plans
 

 8. 

Plans that are developed at the organization’s lower levels that specify action steps toward achieving operational goals and that support tactical planning activities are known as ___________.
a.
strategic goals
b.
organizational plans
c.
operational plans
d.
operational goals
e.
tactical plans
 

 9. 

Effective goals should be:
a.
specific and measurable
b.
challenging but realistic
c.
linked to rewards
d.
all of the above
e.
none of the above
 

 10. 

Some problems associated with Management By Objectives (MBO) include:
a.
Constant change prevents MBO from taking hold
b.
Strategic goals may be displaced by operational goals
c.
Goals not linked to rewards
d.
A and B
e.
B and C
 

 11. 

Plans developed to achieve a set of goals unlikely to be repeated in the future are known as:
a.
Operational plans
b.
Single-use plans
c.
Annual plans
d.
Strategic plans
e.
Expansion plans
 

 12. 

The act of looking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed is known as:
a.
Alternative exploring
b.
Scenario building
c.
Annual planning
d.
Creating standing plans
e.
Resource planning
 

 13. 

Ambitious goals that are so clear, compelling and imaginative that they fire up employees and engender excellence are known as:
a.
Situational goals
b.
Preparation goals
c.
Stretch goals
d.
Prevention goals
e.
Organizational goals
 

 14. 

A group of managers and employees who develop a strategic plan is known as a:
a.
Planning task force
b.
Preparation task force
c.
Mission task force
d.
Divisional task force
e.
Organizational task force
 

 15. 

The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as:
a.
Planning
b.
Preparation
c.
Management
d.
Strategic management
e.
Strategic planning
 

 16. 

What sets the organization apart from others and provides it with a distinctive edge for meeting customer needs in the marketplace is known as:
a.
Strategic advantage
b.
Organizational advantage
c.
Competitive advantage
d.
Strategic management
e.
Strategic differentiation
 

 17. 

Organizational parts interacting to produce a joint effect that is greater than the sum of the parts acting alone is known as:
a.
Strategic advantage
b.
Synergy
c.
Strategy in action
d.
Core competence
e.
Strategic differentiation
 



 
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