Deck 2: The Business Vision and Mission

Question 1

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

Answer 1

True

Question 2

Small,nonprofit organizations never develop mission statements.

Answer 2

False

Question 3

The mission statement should be short - preferably one sentence.

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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 10

Although it is important for companies to have a clearly defined mission statement,research has shown that less than 50% of all companies have used a mission statement in the previous five years.

Question 11

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

Question 12

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

Question 13

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

Question 14

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 15

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

According to King and Cleland,carefully developed and written mission statements ensure unanimity of purpose within the organization.

Question 29

Specificity might stifle creativity in the formulation of an acceptable mission or purpose.

Question 30

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

Question 31

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

Question 32

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

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

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

Question 35

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

Question 36

Individuals who own stock in a corporation are considered stakeholders.

Question 37

Mission statements should always be stated with a high level of specificity.

Question 38

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 39

Mission statements provide managers with a unity of direction that transcends individual,parochial and transitory needs by promoting a sense of shared expectations among all levels and generations of employees.

Question 40

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

Question 41

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 42

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

Question 43

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

Question 44

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 45

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

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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 55

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

Question 56

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

Question 57

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

Question 58

According to recent studies,what percent of companies have used a mission statement sometime in the past five years?

A) 15%
B) 30%
C) 60%
D) 75%
E) 90%

Question 59

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

Question 60

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

Question 61

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 62

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 63

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

A) Deming
B) Peters
C) Drucker
D) McGinnis
E) Smith

Question 64

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 65

The vision statement answers which question?

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 66

Which type of statement should be created first and foremost?

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

Question 67

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 68

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 69

The mission statement answers which question?

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 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

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 72

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 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

What is the best time to develop a mission statement?

A) Before a business is opened
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 75

Business Week 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) 57
E) 54

Question 76

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

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

Question 77

A business's mission is the foundation for all of the following except:

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

Question 78

King and Cleland recommend that organizations carefully develop a written mission statement for all of the following reasons except

A) to provide a basis for allocating organizational resources.
B) to establish a general tone or organizational climate.
C) to ensure unanimity of purpose within the organization.
D) to ensure a command-and-control structure.
E) to facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization.

Question 79

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 80

As indicated in the strategic-management model,a clear ________ is needed before alternate strategies can be formulated and implemented.

A) long-term objective
B) short-term objective
C) policy
D) mission statement
E) evaluation strategy