1. In? 2007, Newmarket Inc. set as its annual production goal the manufacture of? 125,000 units. By?June, the economy had declined so drastically that sales were less than half what they had been one year earlier.? Still, Newmarket management insisted that the firm produce all? 125,000 units. It nearly went bankrupt in the process. Which one of the following statements could have helped prevent this? disaster?

A. Managers should develop plans that are specific then communicate those plans to all who need to know.

B. Make the organizational hierarchy flatter to effectively plan in dynamic environments.

C. It is important to continue formal planning in order to see any effect on organizational performance.

D. Managers need to recognize that planning is an ongoing process.

E. Managers need to stay alert to environmental changes that may impact the implementation of a plan and respond as needed.

2. One purpose of a formal plan is to? _____________.

A. counter actions taken by competitors

B. meet the requirements of the SEC

C. satisfy shareholders

D. get the organization from where it is to where it wants to be

E. provide job security for upper management

3. In addition to offering connections with? customers, a social media strategy can? ________.

A. increase the number of hits by potential customers

B. let competitors know what a firm is planning

C. gather personal information about employees

D. foster stronger ties with the communities in which an organization operates

E. promote collaboration among coworkers and experts