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mgmt09tif09
Chapter9PlanningToolsandTechniques
True/FalseQuestions
TECHNIQUESFORASSESSINGTHEENVIRONMENT
1.Benchmarkingisaformofenvironmentalscanning.
(False;easy;p.238)
2.Competitorintelligencechieflyinvolvescorporatespying.
(False;easy;p.239;AACSB:
Ethics)
3.Competitor’sadvertisements,want-adplacements,andcorporateWebsitescanallserveasgoodsourcesofcompetitiveintelligence.
(True;moderate;p.239)
4.Buyingacompetitor’sproductforevaluationisaformofenvironmentalscanning.
(True;easy;p.239)
5.Competitorintelligencebecomesillegalcorporatespyingwhenitinvolvesthetheftofproprietaryornonproprietarymaterials.
(False;easy;p.240;AACSB:
Ethics)
6.Timeseriesanalysis,substitutioneffect,andeconomicindicatorsareallexamplesofquantitativeforecastingtechniques.
(True;moderate;p.241)
7.Amanagerwhowantedtopredictnextquarter’ssalesonthebasisof4yearsofprevioussalesdatawouldprobablyusetimeseriesanalysis.
(True;moderate;p.241)
8.Themoredynamictheenvironment,themorelikelymanagersaretoforecasteffectively.
(False;difficult;p.242)
9.Benchmarkinginvolvesevaluatingcompanyeffectivenessagainstitsownstandards.
(False;moderate;p.243)
10.Tobemostuseful,benchmarkingshouldinvolvecompaniesinthesameindustry.
(False;moderate;p.243)
TECHNIQUESFORALLOCATINGRESOURCES
11.Beforemanagerscanorganizeandleadinordertoimplementthegoals,theymusthaveabudget.
(False;moderate;p.244)
12.Itisnotunusualforbudgetstobeusedforimprovingtime,space,anduseofmaterialresources.
(True;easy;p.244)
13.Acashbudgetlistsprimaryactivitiesandallocatesadollaramounttoeach.
(False;easy;p.244)
14.Profitbudgetscombinerevenueandexpensebudgetsintoone.
(True;moderate;p.244)
15.Weliveinaworldinwhichalmosteverythingisexpressedinmonetaryunits.
(True;moderate;p.245)
16.Schedulinginvolvesallocatingresourcesbydetailingwhatactivitieshavetobedone,theorderinwhichtheyaretobecompleted,whoistodoeach,andwhentheyaretobecompleted.
(True;easy;p.246)
17.ThebarsofaGanttchartshowinput,bothplannedandactual,overaperiodoftime.
(False;moderate;p.246)
18.TheGanttchartcanserveasacontroltoolbecausethemanagercanseedeviationsfromtheplan.
(True;moderate;p.246)
19.Events,activities,andcriticalpathsareallpartsofPERTnetworkanalysis.
(True;easy;p.247)
20.Resourceallocationproblemscanbesolvedwithbreakevenanalysis.
(False;difficult;p.249)
21.Fixedcostsareexpensesthatdonotchange,regardlessofvolume.
(True;easy;p.249)
22.Tocomputeabreakevenpoint,amanagerneedstoknowtheunitpriceoftheproductbeingsold,thefixedcostperunit,andthetotalvariablecost.
(False;moderate;p.249)
CONTEMPORARYPLANNINGTECHNIQUES
23.Twoplanningtechniquesthatareappropriateforadynamicandcomplexenvironmentareprojectmanagementandforecasting.
(False;easy;p.252)
24.Inatypicalproject,alloftheworkisdonebyaprojectmanagerwhoreportstotheprojectcoordinator.
(False;moderate;p.253)
25.Theprojectplanningprocessbeginsbyclearlydefiningtheproject’sgoals.
(True;easy;p.253)
26.Projectmanagementisamanagementtechniquethatemphasizesflexibilityandrapidresponsetomarketopportunities.
(True;easy;p.253)
27.Projectmanagementdiffersfrommanagingaproductionlinebasedmainlyonthetemporarynatureofmostprojectsandprojectteams.
(True;moderate;p.254)
28.Oneofthechallengesofbeingaprojectmanagerismanagingtheirfull-timeemployees.
(True;easy;p.254)
29.Scenarioplanningisusefulinforecastingeventssuchasterroristattacksandnaturaldisasters.
(False;moderate;p.255)
30.Onesuggestionthathasbeenidentifiedbyriskexpertsasparticularlyimportantforpreparingforunexpectedeventsistohaveanearlywarningsysteminplace.
(True;moderate;p.255)
Multiple-ChoiceQuestions
Foreachofthefollowingchoosetheanswerthatmostcompletelyanswersthequestion.
TECHNIQUESFORASSESSINGTHEENVIRONMENT
31.Whatarethreetoolsthatmanagerscanusetoanalyzetheirorganization’senvironment?
a.strategicplanning,environmentalscanning,andTQM
b.forecasting,budgeting,andtimemanagement
c.environmentalscanning,forecasting,andbenchmarking
d.benchmarking,planning,andevaluating
(c;moderate;p.238)
32.Environmentalscanningisthescreeningoflargeamountsofinformationtoanticipateand____________.
a.follownewlegislationthatisbeingpassedbyCongress
b.interpretchangesintheenvironment
c.correctfailureinpollutionequipment
d.forecastclimaticchangesthatwillaffectmaterialsused
(b;moderate;p.238)
33.
Researchhasshownthatcompanieswithadvancedenvironmentalscanningsystems_____________.
a.increasedtheirprofitsandrevenuegrowth
b.collectmoredata,butdonotseemuchdifferenceintheirprofitsandrevenuegrowth
c.improvedtheirabilitytocompeteinthemarketplace
d.decreasedtheirprofitsandrevenuegrowth
(a;moderate;p.238)
34.Oneofthefastestgrowingareasofenvironmentalscanningis_______________.
a.regressionanalysis
b.competitorintelligence
c.reengineering
d.forecasting
(b;moderate;p.239)
35.Competitorintelligenceallowsmanagersto_______________.
a.reacttocompetitoractions
b.cutcostbelowthecompetition
c.increasemarketdiversification
d.anticipatecompetitoractions
(d;difficult;p.239)
36.Competitorintelligenceexpertssuggestthat80percentofwhatamanagerneedstoknowaboutcompetitorscanbefoundoutfrom______________.
a.companiessuchasDun&Bradstreet
b.theircompetitors’employees,suppliers,andcustomers
c.theircompetitors’products,suppliers,andcustomers
d.theirownemployees,suppliers,andcustomers
(d;moderate;p.239)
37.Manyfirmsregularlybuycompetitors’productsandhavetheirownengineersstudythemtolearnaboutnewtechnicalinnovations.Thisprocessiscalled______________.
a.competitorengineering
b.competitionengineering
c.strategicengineering
d.reverseengineering
(d;moderate;p.239)
38.Whenseekingcompetitorintelligence,thereisoftenafinelinebetweenwhat’sconsideredlegalandethicalandwhat’sconsidered____________.
a.illegalandethical
b.illegalandunethical
c.legalandunethical
d.practicalandlegal
(c;moderate;p.240;AACSB:
Ethics)
39.Thevalueofglobalscanningislargelydependentonthe____________.
a.extentofforeigncompetitionactivitiesinthemarket
b.pricethatforeigncompetitionchargesinthemarket
c.extentofgovernmentregulationactivitiesintheforeignmarket
d.extentoftheorganization’sglobalactivities
(d;moderate;p.240;AACSB:
Globalizations)
40.Managersneedforecaststhatwillallowthemtopredictfutureeventseffectivelyand___________.
a.accurately
b.efficiently
c.specifically
d.inatimelymanner
(d;moderate;p.241)
41.Environmentalscanningcreatesthebasisfor____________.
a.projectmanagement
b.forecasts
c.benchmarking
d.budgeting
(b;difficult;p.241)
42.Whatisdefinedasapredictionofoutcomes?
a.aforecast
b.abenchmark
c.abudget
d.aresource
(a;easy;p.241)
43.Virtuallyanycomponentintheorganization’s__________environmentscanbeforecasted.
a.generalandspecific
b.internalandexternal
c.external
d.general
(c;difficult;p.241)
44.Forecastingtechniquesfallintowhattwocategories?
a.fixedassetandhumancapital
b.predictiveandconfirmatory
c.quantitativeandqualitative
d.empiricalandconceptual
(c;moderate;p.241)
45.
Quantitativeforecastingappliesasetofmathematicalrulesto____________.
a.developpredictionsofoutcomesfromcustomers’opinions
b.aseriesofpastdatatopredictoutcomes
c.analyzewhathashappenedinthepastanddeterminewhenitwilloccuragain
d.estimatethenumberofproductsthatshouldbeproducedatagiventime
(b;moderate;p.241)
46.Whattypeofforecastingtechniquereliesonthejudgmentandopinionofknowledgeableindividuals?
a.qualitative
b.shortterm
c.confirmatory
d.predictive
(a;moderate;p.241)
47.IfGeneralMotorsplansonchangingtheirtruckpaintcolorschemebecausetheybelievethatinthefuturemorewomenwillbeinterestedinpurchasingthesevehicles,thisisanexampleofwhatkindofenvironmentalscanning?
a.scenario
b.forecasting
c.benchmarking
d.anticipating
(b;moderate;p.241)
48.Whatforecastingtechniqueusesamathematicalformulatopredicthow,when,andunderwhatcircumstancesanewproductortechnologywillreplaceanexistingone?
a.econometricmodels
b.economicindicators
c.substitutioneffect
d.regressionmodels
(c;moderate;p.241;AACSB:
Technology)
49.Whatforecastingtechniquecombinesandaveragestheopinionsofexperts?
a.salesforcecomposition
b.customerevaluation
c.substitutioneffect
d.juryofopinion
(d;moderate;p.241)
50.
CPFR®,Internet-basedsoftware,offersastandardizedwayforretailersandmanufacturerstousetheInternetto____________.
a.collaborativelybenchmark
b.collaborativelyforecast
c.performenvironmentalscanning
d.performglobalscanning
(b;difficult;p.242;AACSB:
Technology)
51.Thegoalofforecastingistoprovidemanagerswith____________.
a.accuratepredictionsoftrendsandevents
b.decisionsastowhatcustomerswillbedemandingandwhen
c.informationaboutthedynamicsofenvironmentalchange
d.informationthatwillfacilitatedecisionmaking
(d;difficult;p.242)
52.Forecasting