Concept Check – Chapters 5 and 6
Chapter 5 – Required (Graded).
1. What are the benefits and costs of planning?
i. Intensifies effort: Managers and employees put forth greater effort when following a plan.
ii. Bolsters Persistence: Employees will work hard for long periods.
iii. Imparts direction: plans encourage managers and employees to direct their persistent efforts toward activities that help accomplish their goals and away from activities that don’t.
iv. Furthers development of task strategies: Planning encourages employees to think of better ways to do their jobs.
v. Boasts a proven track record: ...view middle of the document...
x. create the organizational vision and mission and long-term strategic plans.
h. Middle managers
xi. develop tactical plans and use management by objectives to motivate employee efforts toward the overall vision and mission.
i. Bottom managers
xii. use single-use, standing plans, and budgets to manage the production and delivery of the organization’s products and services.
5. Identify the methods of group decision making and give a brief description of each.
j. Nominal Group Technique
xiii. A decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group.
k. Delphi Technique
xiv. A decision-making method in which a panel of experts responds to questions and to each other until reaching agreement on an issue.
l. Stepladder Technique
xv. A decision-making method in which two group members make a joint decision and then add one additional member, discuss new ideas, and modify the decision.
m. Electronic Brainstorming
xvi. A decision-making method in which group members use computers to build on each other’s ideas and generate many alternative solutions.
Chapter 6 – Required (Graded).
1. Identify the components of a sustainable competitive advantage.
a. Valuable resource: a resource that allows companies to improve efficiency and effectiveness.
b. Rare resource: a resource that is not controlled or possessed by many competing firms.
c. Imperfectly imitable resource: a resource that is impossible or extremely costly or difficult for other firms to duplicate.
d. Non-substitutable resource: a resource, without equivalent substitutes or replacements that produce value or a competitive advantage
2. What is a corporate-level strategy? Describe the major approaches to corporate-level strategy.
e. Corporate-level strategy: the overall organizational strategy that addresses the question “What business or businesses are we in or should we be in?”
i. Portfolio Strategy
1. A corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
ii. Grand strategy
2. A broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.
3. Identify three...