Deck 2: The Business Vision and Mission

Question 1

Small, nonprofit organizations never develop mission statements.

Answer 1

False

Question 2

Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?"

Answer 2

False

Question 3

The foundation for development of a comprehensive mission statement is provided by a clear vision.

Answer 3

True

Question 4

According to Campbell and Yeung, the process of developing a mission statement should create an "emotional bond" and "sense of mission" between the organization and its employees.

Question 5

An important question a mission statement should answer is, "What do we want to become?"

Question 6

Vision and mission statements can often be found in the front of annual reports.

Question 7

The mission statement should be short-preferably one sentence.

Question 8

A mission statement is a declaration of an organization's reason for being.

Question 9

If an organization chooses to have both a mission and a vision, the mission statement should be established first.

Question 10

Carefully prepared statements of vision and mission are widely recognized as the first step in strategic management.

Question 11

A mission statement, sometimes called a creed statement, can be defined as an enduring statement of purpose that distinguishes one organization from other similar enterprises.

Question 12

In order to motivate a workforce effectively, both profit and vision are needed.

Question 13

While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises.

Question 14

When developing a vision statement, input should be received from as many managers as possible.

Question 15

A mission statement is a declaration of an organization's financial status.

Question 16

The first step in the process of developing a mission statement is to ask all participants to prepare what they believe the organization's mission should be.

Question 17

According to Peter Drucker, asking the question "What is our business?" is synonymous with asking the question "What is our vision?"

Question 18

According to Campbell and Yeung, an organization's vision is associated with behavior and with the present.

Question 19

A mission statement can sometimes be called a statement of philosophy.

Question 20

When developing a mission statement, it is usually advisable to involve as few managers as possible.

Question 21

Excess specificity can stifle creativity in the formulation of an acceptable mission or purpose.

Question 22

It is unusual for the claims and concerns of a company's stakeholders to vary or conflict.

Question 23

Mission statements cannot be stated with too high a level of specificity.

Question 24

In multidivisional organizations, each division should develop a mission statement consistent with and supportive of the corporate mission.

Question 25

Stakeholders of an organization include stockholders, customers and creditors, but not competitors.

Question 26

Stakeholders both affect and are affected by an organization's strategic decisions.

Question 27

One benefit of having a clear mission and vision is that it projects a sense of worth and intent to all stakeholders.

Question 28

Individuals who own stock in a corporation are considered stakeholders.

Question 29

When a company has been successful the question "What is our business?" becomes unnecessary.

Question 30

A mission statement should be broad enough to reconcile differences among an organization's various stakeholders.

Question 31

Research has failed to find a positive relationship between mission statements and organizational performance.

Question 32

An effective mission statement generates the impression a firm is successful, has direction, and is worthy of time, support and investment.

Question 33

The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.

Question 34

Mission statements are sometimes difficult to derive because top management may disagree over company objectives.

Question 35

According to King and Cleland, carefully developed and written mission statements provide a basis for organizing work, departments, activities, and segments around a common purpose.

Question 36

According to Vern McGinnis, an effective mission statement should define what the organization is and what the organization aspires to be.

Question 37

According to Drucker, the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty.

Question 38

A mission statement is usually just a simple statement of specific details.

Question 39

A mission statement promotes a sense of shared expectations among all managers and employees.

Question 40

In most cases, at least 500 words are required to effectively state a mission statement.

Question 41

Well-conceived and properly executed mission and vision statements do not need to be subject to revision.

Question 42

Good mission statements identify the utility of a firm's products to its customers.

Question 43

Having a clear mission and vision can provide a basis for a company's internal and external assessment.

Question 44

The utility statement, "Do not offer me attractive looks; offer me clothes," is relevant in developing a mission statement.

Question 45

The operating philosophy of organizations should be to develop a product and then try to find a market for it.

Question 46

AT&T's mission statement focuses on telephones rather than on communication.

Question 47

According to George Steiner, vagueness has no place in a good mission statement.

Question 48

One of the benefits of having a clear mission and vision is promoting a sense of shared expectations among all managers and employees.

Question 49

A firm's philosophy in a mission statement addresses the question, "What is the firm's distinctive competence?"

Question 50

Which statement is TRUE?

A) Companies must choose between having a mission statement or a vision statement.
B) A company can't have a mission statement unless it has a vision statement.
C) A vision statement cannot be established until a company has developed its mission statement.
D) The vision statement should be established before the mission statement.
E) Companies are required by law to have both mission and vision statements.

Question 51

A good mission statement serves as a framework for evaluating both current and prospective activities.

Question 52

According to Peter Drucker, developing a clear business vision and mission is the first responsibility of strategists.

Question 53

A firm's concern for employees in a mission statement addresses the question, "Is the firm responsive to social, community, and environmental concerns?"

Question 54

A sense of self-concept is one of the nine components a good mission statement should include.

Question 55

Which of these basic questions should a vision statement answer?

A) What is our business?
B) Who are our employees?
C) What are our challenges?
D) What do we want to become?
E) Who are our competitors?

Question 56

Attracting customers is a major reason for developing a mission statement.

Question 57

Union Pacific's mission statement focuses on transportation rather than on railroads because good mission statements identify the utility of a firm's products to its customers.

Question 58

A mission statement that is limited enough to exclude some ventures is a poor mission statement.

Question 59

A mission statement should be broad in scope, since concrete specification could be the base for rallying opposition.

Question 60

All of the following are mentioned as places where vision and mission statements can often be found EXCEPT

A) SEC reports.
B) annual reports.
C) customer service agreements.
D) supplier agreements.
E) business plans.

Question 61

Businessweek reports that firms using mission statements have a ________ percent higher return on certain financial measures than those without such statements.

A) 10
B) 15
C) 30
D) 45
E) 50

Question 62

A business' mission is the foundation for all of the following EXCEPT

A) priorities.
B) strategies.
C) plans.
D) employee wage rates.
E) work assignments.

Question 63

What is the best time to develop a mission statement?

A) When a firm is in decline
B) When the firm is successful
C) When the firm is in financial trouble
D) When the firm is in legal trouble
E) When the firm encounters competition

Question 64

After a draft mission statement has been developed, it is important to

A) ask managers to read several articles about mission statements as background information.
B) vote on the mission statement.
C) ask managers to prepare a mission statement for the organization.
D) ask managers to seek support for the mission statement from their subordinates.
E) request modifications, additions, and deletions to the mission statement.

Question 65

Who is referred to as "the father of modern management"?

A) Cleland
B) Campbell
C) Drucker
D) McGinnis
E) Yeung

Question 66

Which basic question should the vision statement answer?

A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
E) How can we increase profitability?

Question 67

What can be used to promote unbiased views and to manage the development of the mission statement more effectively?

A) An internal group
B) A committee of managers
C) Command-and-control
D) Surveys
E) An outside facilitator

Question 68

The purpose of a mission statement is to declare all of these EXCEPT

A) a reason for being.
B) an annual financial plan.
C) a statement of purpose.
D) a statement of beliefs.
E) whom it wants to serve.

Question 69

In the process of developing a mission statement, it is important to involve

A) as few managers as possible.
B) as many managers as possible.
C) upper-level management only.
D) lower-level management only.
E) the board of directors only.

Question 70

The process of developing a vision and mission statement often includes which of these as the first activity?

A) Requesting that managers modify the current document
B) Asking managers to read selected articles about mission statements
C) Asking managers to prepare a mission statement for the organization
D) Having a brainstorming session on whether the organization should have a mission statement
E) Merging several mission statements into one document

Question 71

Which type of statement should be created first and foremost?

A) Creed
B) Vision
C) Objectives
D) Mission
E) Competitive advantage

Question 72

As indicated in the strategic-management model, a clear ________ is needed before long-term objectives can be established.

A) short-term objective
B) implementation plan
C) audit policy
D) mission statement
E) evaluation strategy

Question 73

According to Campbell and Yeung, what is/are most likely associated with behavior and the present?

A) Mission
B) Values
C) Long-term objectives
D) Vision
E) Possibilities

Question 74

According to the comprehensive strategic-management model, which step needs to be completed immediately following the establishment of long-term objectives?

A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Generating, evaluating, and selecting strategies
E) Measuring and evaluating performance

Question 75

The ideal length of a vision statement is

A) one page.
B) several paragraphs.
C) one sentence.
D) several sentences.
E) as long as is necessary to convey the message.

Question 76

What is the first step in the comprehensive strategic-management model?

A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Measuring and evaluating performance
E) Establishing long-term objectives

Question 77

Which best expresses former Colgate CEO Reuben Mark's thoughts on vision?

A) It's becoming less important that a clear mission make sense internationally.
B) It's essential to drive home different messages in different cultures.
C) Keeping the vision simple will never rally everyone to the corporate banner.
D) Pushing one vision globally is essential.
E) Elevated missions or visions will alienate international markets.

Question 78

When developing a mission statement, what is needed before people can focus on specific strategy formulation activities?

A) Negotiation
B) Compromise
C) Eventual agreement
D) A and B only
E) All of the above

Question 79

A study by Rarick and Vitton found that firms with a formalized mission statement have ________ the average return on shareholders' equity than those firms without a formalized mission statement.

A) one-quarter
B) half
C) twice
D) three times
E) five times

Question 80

According to Drucker, which question is synonymous with asking "What is our mission?"

A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
E) How can we increase profitability?