CHAPTER 2— STRATEGIC PLANNING
MULTIPLE CHOICE
1. _____ is a process that helps managers identify desired outcomes and formulate feasible plans to
achieve their objectives by using available resources and capabilities.
a. Strategic planning
b. Functional planning
c. Operational planning
d. Contingency planning
ANS: A
RATIONALE: Strategic planning is a process that helps managers identify desired outcomes and
formulate feasible plans to achieve their objectives by using available resources and capabilities. The
strategic plan must take into account that the organization and everything around it is changing.
2. Identify a benefit of strategic planning.
a. Provides steps to increase the effective capacity of the operation to meet the requirements
b. Provides developed steps to identify inefficiencies in the operation and production sector of an
organization
c. Provides control mechanisms to assure effective implementation of the actions at the middle or lower
level of management
d. Provides a framework and a clearly defined direction to guide decision making at all levels throughout
the organization
ANS: D
RATIONALE: Strategic planning is a process that helps managers identify desired outcomes and
formulate feasible plans to achieve their objectives by using available resources and capabilities. It
provides a framework and a clearly defined direction to guide decision making at all levels throughout the
organization.
3. _____ improves communication among management and the board of directors, shareholders, and
other interested parties in an organization.
a. Tactical planning
b. Strategic planning
c. Operational planning
d. Contingency planning
ANS: B
RATIONALE: Strategic planning is a process that helps managers identify desired outcomes and
formulate feasible plans to achieve their objectives by using available resources and capabilities. It
improves communication among management and the board of directors, shareholders, and other
interested parties in an organization.
4. Identify the type of planning used to develop multiple-year plans based on a situational analysis,
competitive assessments, and external factors of the organization.
a. Operational planning
b. Functional planning
c. Strategic planning
d. Contingency planning