Strategic Planning quiz Managerial Accounting Quiz On Aug 18, 2024 Share /10 12345678910 Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 10 A company has a compensation system for its managers based on a management-by-objectives (MBO) approach. The essential premise of MBO is that : Employees should be concerned with routine matters, and managers should attend to exceptions Employees should participate in setting objectives Compensation should be based on qualitative factors Managers should establish objectives for their employees The hallmark of MBO is the mutual setting of objectives by the superior and the subordinate as a basis for performance evaluation 2 / 10 Which one of the following management considerations is usually addressed first in strategic planning ? Overall objectives of the firm Outsourcing Organizational structure Recent annual budgets Strategic planning is the process of setting overall organizational objectives and drafting strategic plans. 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 . 3 / 10 Which of the following is an example of an outcome of strategic planning ? A set of general guides for action that channel thinking and allow a certain amount of discretion in execution A document specifying a sequence of steps detailing the exact manner in which a certain activity must be accomplished A broad statement of concepts that emphasizes the implementation of organizational objectives over the long term A formal statement of the organization’s definition of the fundamental truths that guide its actions The strategic plan states the means by which an entity expects to achieve its stated mission. Achieving the mission is predicated on implementing long-term objectives 4 / 10 Strategic planning, as practiced by most modern organizations, includes all of the following except : Analysis of the current month’s actual variances from budget A long-term focus Strategies that will help in achieving long-range goals Top-level management participation Strategic planning is the process of setting overall organizational objectives. It is a long-term process aimed at determining the future course of the organization. Analysis of the current month’s budget variances is a short-term activity 5 / 10 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 organizational planning that is being demonstrated by management’s action. A strategy A policy An objective A mission statement 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. They channel thinking in a certain direction but allow for some managerial discretion 6 / 10 What is strategic planning ? It consists of decisions to use parts of the organization’s resources in specified ways It establishes the resources that the plan will require It establishes the budget for the organization It establishes the general direction of the organization Strategic planning establishes the general direction of an organization. It embodies the concerns of senior management and is based specifically on (1) identifying and specifying organizational objectives; (2) evaluating the organization’s strengths and weaknesses; (3) assessing risk levels; (4) identifying and forecasting the effect of external (environmental) factors relevant to the organization; (5) deriving the best strategy for reaching the objectives, given the organization’s strengths and weaknesses and the relevant future trends; and (6) analyzing and reviewing the capital budgeting process and capacity planning. 7 / 10 Formal written policies are normally recommended. However, the presence of certain conditions in an organization minimizes the need for written policies. One condition that minimizes the need for written policies is a Large span of control Strong organizational culture Strict unity of command High division of labor If the culture is strong, the organization’s key values are intensely held and widely shared. Substantial training has been expended to achieve this high degree of acceptance, minimizing the need for formal, written policies 8 / 10 MBO managers are most likely to believe that employees : Dislike their work Are self-motivated Work best when threatened with punishment Avoid responsibility whenever possible MBO managers believe that employees are committed to achieving objectives, working hard to receive the rewards of achievement, and striving for self-actualization. The MBO view is that employees enjoy work, need little supervision, seek responsibility, and are imaginative problem solvers 9 / 10 An organization’s policies and procedures are part of its overall system of internal controls. The control function performed by policies and procedures is : Application control Feedback control Implementation control Feedforward control Feedforward control anticipates and prevents problems. Policies and procedures serve as feedforward controls because they provide guidance on how an activity should be performed to best ensure that an objective is achieved 10 / 10 Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarily excludes the : Target product mix and production schedule to be maintained during the year Forms of organizational structure that would best serve the entity Best ways to invest in research, design, production, distribution, marketing, and administrative activities Trends that will affect the entity’s markets Strategic analysis is the process of long-range planning. Such tasks as setting the target product mix and production schedule for the current year are short-term activities Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback business strategic planningit strategic planningsteps in strategic planning
