Robert Downs has just completed a Master of Science degree in computer science at Major State University. He now wants to begin a new Internet business selling his services as a Web site maker for companies in his home city, St. Louis. He estimates that, if his business idea is a success, within one year he will be employing at a minimum 10 programmers and two analysts.

1. To make his business successful, Robert will first have to develop what type of plan?
A. Tactical
B. Specific
C. Directional
D. Strategic

2. To clarify how the overall goals are to be achieved, Robert will have to develop a
A. Tactical plan
B. Specific plan
C. Directional plan
D. Strategic plan
3. To ensure that the organization’s objectives are clearly defined and do not leave room for interpretation, he will have to develop what type of plan?
A. Tactical
B. Specific
C. Directional
D. Strategic
4. To provide the programmers and analysts general guidelines about the efficiencies that are desired, he will have to develop what type of plan?
A. Tactical
B. Specific
C. Directional
D. Strategic

CASE 2—XYZ Planning
At organization XYZ, the plans are made at the top, and then those managers meet with their subordinates at the next level and mutually agreed-to goals are established with them. The mid-level managers then meet with their first-level managers and mutually agreed-to goals are established with them. Finally, the first-level managers meet with each of their employees and mutually agreed-to goals are established with them.

5. The planning approach used at the XYZ organization is ____________________.
A. Management by Objectives
B. Directional planning
C. Specific planning
D. Traditional planning
CASE 3—Dollars to Donuts
Ralph Friedgrin is the owner of a chain of five donut shops in Smalltown, MD. Smalltown is located along Interstate 95, about half-way between Lost and Nowhere.

6. Mr. Friedgrin demands that the five store managers during their weekly meeting discuss what the customers in their stores are requesting. Mr. Friedgrim always reads the monthly donut-industry magazine, Holey Mazole. He always attends the Annual National Conference of Donut Makers and updates his managers when he returns. These activities are examples of_________________.
A. Competitive intelligence
B. Benchmarking
C. Environmental scanning
D. Global scanning

7. On occasion, Mr. Friedgrin goes to nearby, larger towns such as Lost and Nowhere to visit big chain donut shops. Mr. Friedgrin purchases donuts and chats with these customers about their donut likes and dislikes. He also will “peek” into the kitchen to view the equipment, or when he can, he will watch through the customer observation window to see the whole process. Mr. Friedgrin is performing which planning technique?
A. Competitive intelligence
B. Environmental scanning
C. Benchmarking
D. Global scanning

8. Mr. Friedgrin recently went on a well-deserved vacation. While at the beachfront resort, Mr. Friedgrin took many notes regarding the excellent service he received. On the flight home, he reviewed his notes to see what lessons he could apply to his donut shops. When Mr. Friedgrin is out looking at the “best practices” of the other donut stores in these towns, he is performing which of the following?
A. Competitive intelligence
B. Benchmarking
C. Environmental scanning
D. Strategic planning

CASE 4—SWOT Analysis
As a process of self-examination during her senior year of college, Casey decided to develop a SWOT analysis of her prospects relative to getting a job.

9. Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers. She interprets this as a(n) _________is she is to get a job as a salesperson.
A. Alternative
B. Strength
C. Weakness
D. Opportunity
10. Casey majored in marketing and really enjoyed studies in market research. Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive external trends. She interprets this as a (n)______.
A. Alternative
B. Strength
C. Weakness
D. Opportunity

11. Casey has been involved in _____________at a personal level
A. Opportunity analysis
B. Risk avoidance
C. Strategic planning
D. Stage decision making

CASES 5—Un Taco Pequeno
Imagine that you are the president of Taco Rocket, a new and successful chain of 100 Mexican fast-food restaurants. The success you have experienced in the last 5 years has you thinking of what to do with the business next. Should you expand the business at the current rate? Open new and different restaurants? What?
2, You decide to concentrate on Taco Rocket’s primary business by only increasing the menu to include new items such as enchiladas and rice bowls. This is an example of what type of growt