1. Importance of Objectives.

Ans:

1. State direction 2. Aid to evaluation

3. Create Synergy 4. Reveal prioritize

5. Focus coordination 6. Effect on Plan, Organizing, Motivating and Controlling.

2. Benefits of clear mission and vision statement.

Ans:

1. Achieving clear purpose among all managers

2. Provide direction

3. Provide focal point of stakeholders

4. Resolving divergent view among managers

5. Promote sense of expected share among managers

6. Project organization and motivating organizational worth

7. Achieving higher organizational performance

8. Achieving synergy among managers.

3. Characteristics of mission statement.

Ans:

1. Broaden in scope.

2. Less than 250 words in size

3. Inspiring

4. Identify utilities of firm products

5. Reveal firms social responsibility

6. Reveal firms environmental responsibility

7. Reconciliatory

8. Enduring.
4. Manager neglect planning.
Ans:

1. Lack of knowledge

2. Too Expensive

3. Laziness

4. Fair of failure

5. Over confidence

5. Benefits of outsourcing.
Ans:

1. Cost saving

2. Cost restructuring

3. Improve Quality

4. Knowledge

5. Contract

6. Risk management

7. Tax benefits.

6. Characteristics of Objectives: Crouch

Ans:

1. Challenging

2. Realistic

3. Obtainable

4. Understandability

5. Congruent

6. Hierarchical
7. Benefits of acquiring other firm.
Ans:

1. To reduce management staff

2. To reduce tax obligation

3. To gain measurement scale

4. To gain new technology

5. To gain access to new suppliers, customers and distributors etc.

6. To utilized the capacity.

8. Merger or acquisition failed.

Ans:

1. Integration difficulty

2. Inability to achieve synergy

3. Large debt

4. To large acquisition

5. To much diversification.

9. Diversification Pros and Cons.

Ans:

Pros:

1. Risk spread

2. Opportunity in diversify area

3. Seasonal target sale

Cons:

1. It is risky

2. It is costly

3. Its need managerial skill

10. Five labor cost saving activities.
Ans:

1. Salary freeze

2. Hiring freeze

3. Salary reduction

4. Layoffs

5. Early retirement

11. Four type of resources.

Ans:

1. Financial resources

2. Physical resources

3. Human resources

4. Technological resources

12. Altering techniques of organization’s culture.

Ans:

1. Recruit 2. Training

3. Transfer 4. Promotion

5. Reengineering 6. Restructuring

7. Monitoring

13. Limitation of EPS/EBIT.

Ans:

1. Can’t reveal firms higher leverage.

2. Dilution of owner

3. Interest rate or stock price

14. Scorecard evaluate strategies ways.
Ans:

1. Financial performance

2. Customer knowledge

3. Internal Business Process

4. Learning and Growth

15. Develop a balance scorecard.

Ans: