1. Managers typically face ill-structured problems that have no previously proven
answers.
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2. Bill Simmons is the manager of a small restaurant and must decide how much money he owes his suppliers. This is an example of a non-programmed decision.
3. The risk involved with decision-making can never be accurately predicted.
4. In the fourth stage of decision-making, problem diagnosis is linked to the development of alternatives.
5. Total and consistent agreement among group members helps avoid groupthink.
6. Incremental decision-making occurs when people don’t know how to achieve a goal or solve a problem.
7. The garbage can model of decision-making arises when people disagree on goals or compete with one another for resources.
8. The six steps in the formal planning process are comparable to the six decision-making steps.
9. Situational Analysis, as part of the Formal Planning Process, focuses on internal forces at work within the organization and examines influences from the external environment.
10. The final step in the formal planning process, monitor and control, is often overemphasized.
11. An organization’s strategic and tactical plans must be based upon the original operational plans.
12. An organization’s mission statement is long-term oriented while a strategic vision is short-term oriented.
13. An internal analysis provides an inventory of an organization’s resources, skills, and potential competitive threats.
14. If resources are difficult to imitate they provide a source of competitive advantage.
15. SWOT analysis refers to the situation, weaknesses, options, and technology.
16. A concentration strategy involves expanding the domain of the organization into supply channels and to distributors.
17. Businesses using a low-cost strategy attempt to be efficient and offer a standard, no-frills product.
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