Topic 7a: Foundations of planning

Goals are different from plans because ________.

• A) goals identify specific steps that the organization needs to achieve, and plans identify the overall mission of the organization

• B) goals describe financial objectives, and plans describe objectives related to social responsibility

• C) goals are important only for small companies, and plans are important only for large companies

• D) goals are desired outcomes, and plans describe how those outcomes will be accomplished

Mr. Slabaugh wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation. Which one of the following types of plans would best suit his requirement?

Which one of the following is an example of a standing plan?

• A) A retail chain's plan to counter the entry of a new competitor.

• B) A plan developed to address a sudden, unanticipated surge in demand.

• C) A fire escape policy establishing practices to be followed in an emergency.

• D) A plan to cope with radical changes in the political environment.

Sam is the owner of a small company that sells corporate gifts through an online store. Business has slowed down in recent months and he realizes that the organization must move in a different direction if it is to survive. He has reset some of the company's overall goals and wants to develop a plan to achieve those goals. He is anticipating the business environment to be volatile for the next few years. Considering the above information, it can be determined that his plan must be ________, ________, and ________.

• A) operational; directional; rigid

• B) informal; unwritten; flexible

• C) strategic; general; rigid

• D) strategic; directional; flexible

Most companies' plans can be classified as either ________ or ________.

• A) strategic; financial

• B) operational; tactical

• C) social; economic

• D) strategic; operational

Strategic plans are usually ________.

• A) short term, directional, and standing

• B) short term, specific, and standing

• C) long term, directional, and single use

• D) long term, specific, and standing

Operational plans are usually ________.

• A) short term, directional, and standing

• B) short term, specific, and standing

• C) long term, directional, and single use

• D) long term, specific, and standing

Plans that encompass only the production or the sales goals of a company are termed ________ plans.

The effect of planning on managers is that it forces them to ________.

• A) generate higher profits

• B) anticipate and respond to change

• C) eliminate uncertainty

• D) work at cross purposes

________ involves defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.

• A) Execution

• B) Logistics

• C) Planning

• D) Operations