Questions and Answers
An organization's _____ is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business's operations in product and market terms.
Nutrimax Inc. identifies its purpose as 'to produce the finest cookies in the world while upholding our principles of promoting good health and maintaining environmental sustainability.' This purpose is most likely to be the _____ of Nutrimax.
Which of the following statements is true about strategic goals?
Strategic goals are set by
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Goals set for and by line-managers are called _____ goals.
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Samantha is responsible for building the day-to-day work schedules for her subordinates. She assigns specific tasks to her subordinates and designs activities according to the objectives that she receives from her seniors. Samantha works on _____ goals.
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Which of the following statements is true about tactical goals?
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The top managers at Redd Inc. are developing a plan to reduce the production costs of the company. By reducing costs, Redd wants to gain a competitive advantage of cost leadership. The plan being developed in this scenario is a(n) _____ plan.
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A(n) ____ goal for a waste management plant could be to 'identify barriers to recycling as well as means to overcome those barriers; determine recycling rates by neighborhood and find correlations, if any, between barriers and neighborhoods.' It would develop naturally out of a strategic goal 'to increase recycling by 10% everywhere.'
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The top managers of Dietizza, a large low-fat pizza chain, plan to increase the profitability of all its outlets by 15 percent in a period of two years. This is a(n) _____ goal.
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A(n) _____ plan is a general plan outlining decisions about resource allocation, priorities, and action steps necessary to reach the goals set by the top managers.
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Strategic plans
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Venus Corp. is a large corporation with several divisions. Venus has a goal to increase the profitability of the corporation by 15 percent over the next five years, with the understanding that this is an overall corporate goal, and that there will be variance in growth among the divisions. The top managers and board of directors are discussing resource allocation, priorities, and the action steps needed to meet this goal. The plan that these managers create would be a(n) _____ plan.
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Study Notes
Organizational Purpose and Goals
- An organization's mission defines its unique purpose and operational scope, distinguishing it from competitors.
- Nutrimax Inc.'s mission emphasizes producing high-quality cookies while promoting health and environmental sustainability.
Strategic Goals
- Strategic goals are set by top managers and focus on broad, long-term issues.
- They provide a framework to drive organizational direction and decision-making.
Tactical Goals
- Tactical goals are actionable steps to achieve strategic goals, typically set by middle managers.
- Example: Developing a cost leadership strategy to gain a competitive advantage.
Operational Goals
- Goals set for and by lower-level managers (line managers) are termed operational goals which focus on day-to-day operations.
- Samantha's role encompasses crafting daily schedules and assigning tasks according to higher-level objectives.
Plan Development
- Strategic plans outline resource allocation and priority-setting for organizational objectives, typically with a long-term focus.
- Tactical plans are narrower and bridge the gap between strategic plans and operational goals.
Time Horizon
- Strategic plans generally have an extended time horizon and address key aspects like resource deployment and competitive advantage.
- The top management of organizations like Dietizza set profitability goals over two years, exemplifying strategic objectives.
Functional Goals
- Functional goals emerge from strategic goals and can specify objectives for particular departments—such as increasing recycling rates within communities.
Variance in Divisional Goals
- Large corporations like Venus Corp. may set overarching corporate goals (e.g., profitability increase targets) while acknowledging differing growth rates across divisions.
Distinctions among Plan Types
- Tactical plans are more concrete and short-term compared to strategic plans, which offer a broader vision and longer temporal focus.
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Description
Test your knowledge on key concepts from Chapter 3 of MGT103. This quiz focuses on organizational mission statements and their significance in business operations. Use these flashcards to reinforce your understanding and prepare for assessments.
