Business Planning Levels and Strategies

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What is the primary purpose of a business-level plan?

To ensure the organization achieves its functional-level goals
To outline specific methods for a division to compete against rivals in an industry (correct)
To propose corporate-level goals for the entire organization
To develop a single-use plan for a specific project

What is the primary focus of a functional-level plan?

To develop a single-use plan for a specific project
To propose corporate-level goals for the entire organization
To improve the ability of each function to perform task-specific activities (correct)
To ensure the organization achieves its business-level goals

What is the primary difference between a short-term plan and a long-term plan?

The complexity of the issue being addressed
The level of the organization the plan is for
The type of goal being pursued
The time horizon of the plan (correct)

What type of plan is used in programmed decision situations?

Standing plan (C) Signup and view all the answers

What is the relationship among corporate-, business-, and functional-level strategies?

They are hierarchical and interconnected (C) Signup and view all the answers

What is the duration of an intermediate-term plan?

1 to 5 years (D) Signup and view all the answers

What characteristic should goals possess in an organization?

Being challenging but realistic (A) Signup and view all the answers

What is the main role of the CEO and top managers in strategic leadership?

Conveying a compelling vision to subordinates (A) Signup and view all the answers

What does the SWOT analysis identify in an organization?

Internal strengths and weaknesses, and external opportunities and threats (C) Signup and view all the answers

What is the result of increased competition in the five forces model?

Lower prices and profits (B) Signup and view all the answers

What is the consequence of having only a few suppliers of important items?

Supply costs rise (C) Signup and view all the answers

What is hypercompetition characterized by?

Permanent and ongoing intense competition (A) Signup and view all the answers

What is the primary goal of a low-cost strategy?

To minimize the organization's total costs (C) Signup and view all the answers

What is the main challenge with pursuing a 'stuck in the middle' strategy?

It is hard to reduce costs and add unique features simultaneously (C) Signup and view all the answers

What is the key difference between a focused low-cost strategy and a low-cost strategy?

The size of the target market (C) Signup and view all the answers

What is the primary goal of a focused differentiation strategy?

To be the most differentiated organization in a specific segment (B) Signup and view all the answers

What is the main purpose of a corporate-level strategy?

To strengthen the company's competitive position in its current industry (B) Signup and view all the answers

What is an example of a discussion topic based on business-level strategies?

Analyzing four companies in an industry that pursue different business-level strategies (C) Signup and view all the answers

What type of plan specifies an exact series of actions to follow?

Standard Operating Procedures (A) Signup and view all the answers

What is the primary purpose of setting goals in an organization?

To provide a sense of direction (A) Signup and view all the answers

What do mission statements typically aim to achieve?

To connect people and make them more productive (B) Signup and view all the answers

What is the main difference between standing plans and single-use plans?

The scope of application (C) Signup and view all the answers

What is the main purpose of determining an organization's mission and goals?

To define the organization's sense of direction (B) Signup and view all the answers

What question helps define the organization's business in determining its mission and goals?

Who are our customers? (C) Signup and view all the answers

Which international expansion strategy involves customizing products and marketing strategies to specific national conditions?

Multi-Domestic Strategy (A) Signup and view all the answers

What type of international expansion involves selling at home products that are made abroad?

Importing (B) Signup and view all the answers

What is the term for allowing a foreign organization to take charge of manufacturing and distributing a product in its country in return for a negotiated fee?

Licensing (D) Signup and view all the answers

What type of international expansion involves a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business?

Joint Venture (B) Signup and view all the answers

What is the term for when managers invest in establishing production operations in a foreign country independent of any local direct involvement?

Wholly Owned Foreign Subsidiary (D) Signup and view all the answers

What is the term for selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits?

Franchising (D) Signup and view all the answers