Vasil, Inc. conducted a strategy self-assessment of factors contributing to market attractiveness and business strengths as follows:The factor ratings range from 1 (the lowest) to 5 (the highest). Which one of the following strategies would be the most beneficial for Vasil?
Answer(s): A
Vasil can quantify the results of its strategic self-assessment by weighting and summing each rating.
Which one of the following managements consideration is usually addressed first in strategic planning?
Answer(s): B
Strategic planning is the process of setting overall organizational objectives and drafting strategic plans. It is a process of long-term planning. Setting ultimate objectives for the firm is a necessary prelude to developing strategies for achieving those objectives. Plans and budgets are then needed to implement those strategies.
A firm's statement of broad objectives or mission statement should accomplish all of the following except?
The determination of organizational objectives is the first step in the planning process. A mission statement is a formal, written document that defines the organization's purpose in society, for example, to produce and distribute certain goods of high quality in a manner beneficial to the public, employees, shareholders, and other constituencies. Thus, a mission statement does not announce specific operating plans. It does not describe strategies for technological development, market expansion, or product differentiation because these are tasks for operating management.
Policies and procedures provide guidance to management and employees. Would policies and procedures normally be found for the senior management of a multinational organization?
Answer(s): C
Research has shown that policies and procedures are referred to by all levels of management on an as-needed basis.
The management of an organization has stated that two members of the same family may not be employed in the same department. Identify the component of organization planning that is being demonstrated by management's action.
Top management establishes policies as guides to middle- and lower-management decision making. Policies are relatively broad guidelines for making routine decisions consistent with overall objectives or goals. They channel thinking in a certain direction but allow for some managerial discretion.
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