Answer the following statements true (T) or false (F)

Question

1. In the planning/control cycle, managers take corrective action by correcting deviations in the plan being carried out or by improving future plans.
2. Mr. Smith, CEO of an auto dealership, has been working on the two planning steps of the planning/control cycle with his managers. To do this, Mr. Smith and his managers need to make their plan and then carry out the plan.
3. Donna's Restaurant is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegetarian dishes, (menu items that no other restaurant in the area offers). Donna's Restaurant is engaging in strategic positioning by offering the unique menu items of vegan and vegetarian dishes.
4. A and B Office Supply, a small family-owned company, sells high-priced desks, some as expensive as $10,000, to executives in its area. Very few companies have chosen to market this product, and A and B has enjoyed record profits over the last 25 years. A and B Office Supply is an example of a company that would typically not choose to utilize strategic planning.

Answer 1

1. TRUE
In the planning/control cycle, managers take corrective action by correcting deviations in the plan being carried out or by improving future plans.
2. TRUE
The two planning steps are (1) make the plan, and (2) carry out the plan.
3. TRUE
Strategic positioning means performing different activities from rivals, or performing similar activities in different ways. Donna's Restaurant is meeting the broad needs of relatively few customers (vegans and vegetarians).
4. TRUE
Research results indicate that for small companies strategic planning is probably not worth the effort unless the company is in a highly competitive industry where small differences in performance may affect the firm's survival potential.