Deck 2: Strategic Objectives

Question 1

Studies have consistently shown that significant differences of opinion exist among senior-level executives about both strategic goals and the means to accomplish them.

Answer 1

True

Question 2

Strategic objectives,rather than the challenges of an organization's vision,can motivate managers in their day-to-day activities.

Answer 2

False

Question 3

Emergent strategies tend to have measureable objectives attached to them.

Answer 3

False

Question 4

Each division and business unit must have goals consistent with the overarching corporate objectives.

Question 5

An objective is a short-term target or milestone with defined measureable achievements.

Question 6

When pursuing an incremental strategy approach objectives may change from those established and made explicit sometime in the past.

Question 7

Senior managers can devolve responsibility for communicating strategic objectives.

Question 8

Strategic decisions are different from other types of decisions because they are easily made using past history and experience; strategic decisions become routinized over a period of time.

Question 9

Strategic decisions typically involve the commitment of significant resources and are not easily reversed.

Question 10

An objective can be a desired state or hoped-for level of success.

Question 11

Organizations can set whatever objectives they please,unconstrained by the pressures external stakeholders may exert.

Question 12

Consistency of organizational objectives,strategies and goals is not always necessary.

Question 13

Western firms tend to focus on relatively short-term profits and shorter planning horizons.

Question 14

Many organizations begin with a very broad business definition and then cut it back as the years progress.

Question 15

In emergent strategies objectives may exist but may be implicit rather than explicit.

Question 16

It has been suggested that the business definition question should include not only "What is our business?" but also "What was our business?"

Question 17

Judgment is the capability of making successful decisions when no obviously correct model or rule is available or when relevant data are unreliable or incomplete.

Question 18

It is not necessary for strategic objectives to be understood by all managers.

Question 19

The labels a firm uses for its written statements of strategic direction are just as important as the elements they contain.

Question 20

Objectives make the general direction of the organization concrete and achievable.

Question 21

The balanced scorecard (Kaplan and Norton)is an approach that:

A) Focuses solely on financial objectives
B) Is associated with marketing
C) Seeks to integrate financial and strategic objectives
D) Examines non-critical activity

Question 22

Objectives establish direction but never include specific end points.

Question 23

In Kaplan and Norton's terms a lagged measure is:

A) An obsolete measure
B) A measure of past progress
C) A measure that focuses on future activity
D) A measure of the performance of competitors

Question 24

In Kaplan and Norton's terms a lead measure is:

A) leading the race to be measured
B) A measure of past progress
C) A measure that focuses on future activity
D) A measure of supplier performance

Question 25

Critical success factors (CSFs)are a function of:

A) The structure of a particular industry
B) Competitive strategy, industry position and geography
C) Environmental factors and temporal factors
D) All of the above

Question 26

Critical success factors (CSFs):

A) Identify which suppliers will be worked with
B) Are the factors that primarily account for an organization's success in achieving its strategic purpose
C) Relate to functional performance
D) Are continuously changing

Question 27

An organization's business model is irrelevant when it is considering its strategy.

Question 28

A change in objectives is likely to result in changes of strategy.

Question 29

Objective setting in the public and not-for-profit sectors will be different because:

A) Quantitative measures could obscure more appropriate qualitative indicators
B) These organizations do not achieve objectives
C) They are not in competitive environments
D) Managers resist any attempt to work towards objectives

Question 30

Strategic direction is reflected by:

A) The organization's purpose
B) The business model
C) The organization's vision
D) All of the above

Question 31

Strategic intent is:

A) What the organization has historically achieved
B) How the organization will achieve its mission
C) How customers and suppliers will be partnered
D) A very ambitious and seemingly unrealistic long-term organizational goal used by Japanese firms

Question 32

Strategic objectives are a characteristic of:

A) Emergent strategy
B) Planned strategy
C) Realised strategy
D) Competitive strategy

Question 33

Within the balanced scorecard approach each objective has its associated:

A) Set of measures
B) Own reporting protocol
C) Advantages and disadvantages
D) Improvement indices

Question 34

Which of the following is not a characteristic that distinguishes strategic decisions from other kinds of decisions?

A) Strategic decisions are ill-structured and non-routine
B) Strategic decisions may not be linked with the success or failure of an organization
C) Strategic decisions involve a significant commitment of resources
D) Strategic decisions are difficult to reverse both economically and politically

Question 35

An organization's purpose must be translated into a set of primary objectives,called 'strategic objectives'.

Question 36

Key performance indicators (KPIs)are:

A) The same as CSFs
B) Unrelated to CSFs
C) Lower level incremental targets
D) Determined by competitor activity

Question 37

Factors that influence strategic direction include all of the following except:

A) Social trends
B) Economic influences
C) Competitors
D) All of the above

Question 38

At an operational level objectives are often referred to as ________ and corporate objectives are sometimes called ________:

A) Carrots and sticks
B) Imposed and optional
C) Targets and goals
D) Milestones and markers

Question 39

It is important that objectives avoid:

A) Being meaningless to those they are intended to influence
B) Being inconsistent with other existing objectives
C) Being the pet objectives of powerful figures in the organization
D) All of the above

Question 40

The business model provides an explanation of an organization's 'recipe for success'.

Question 41

What must a full consideration of objectives incorporate?

Question 42

What are the four basic approaches related to the positioning element of the business model?

Question 43

What four fundamental questions does the balanced scorecard encourage organizations to address?

Question 44

For strategic thinking the strategy map can:

A) Clarify immediate goals
B) Help generate creativity and innovation
C) Provide a broader canvas for senior managers to construct CSFs
D) Identify customers and suppliers

Question 45

The four perspectives of the balanced scorecard include a financial perspective,a customer perspective,an internal business processes perspective,and:

A) A marketing and brand perspective
B) A communications perspective
C) A learning and growth perspective
D) None of the above

Question 46

Explain the distinction Kaplan and Norton make between strategic objectives and measures,and diagnostic objectives and measures.

Question 47

What is the most common problem organizations encounter when using the balanced scorecard?

A) Its perspectives and measures are ignored by middle managers
B) Its purpose is communicated poorly leading to confusion
C) It misrepresents what is important to the organization
D) A proliferation of objectives and measures become too numerous to manage

Question 48

A strategy map is used to:

A) Document the CSFs in terms of the possible cause-and-effect linkages between the perspectives and the objectives
B) Identify which suppliers are key and need to be partnered
C) Demonstrate the linkages between resources and capabilities
D) Reduce CSFs down to a manageable number

Question 49

Long-term objectives relate to:

A) The desired performance over five years into the future
B) The desired performance at some undefined period into the future
C) The desired performance and results on an on-going basis
D) The desired performance over the next two to three years

Question 50

Give an example of an objective for each of the four perspectives of the balanced scorecard.

Question 51

What is the four-part process Kaplan and Norton advise managers use to ensure the balanced scorecard is utilised effectively?

Question 52

A strategy map:

A) Tells you where the organization is headed
B) Explores possible cause-and-effect relationships and the associated CSFs
C) Is an industry analysis
D) Explores the location of strategic groups

Question 53

Short-term objectives relate to:

A) Near-term performance targets.
B) Performance over the next twelve months.
C) Financial targets only
D) Aspects of performance unrelated to long-term objectives

Question 54

Which of the following would typically be measurement indices for an objective that identified motivating people and developing competencies?

A) Recruitment and retention rate
B) Skills and training index
C) Employee conditions and satisfaction index
D) All of the above

Question 55

How could the Balanced Scorecard be interpreted to serve not-for-profit or public sector organizations,what would be the perspectives and objectives?

Question 56

What considerations must organizations in the public or not-for-profit sectors make when deciding upon strategic objectives?

Question 57

How should organizations overcome the problem of having too many objectives and measures to manage when using the balanced scorecard?

Question 58

A strategy map helps organizations to:

A) Locate possible external partners
B) Evaluate the basic assumptions for choosing certain objectives and measures
C) Link the far and near external analyses
D) Identify resources and capabilities

Question 59

Give three examples of the kind of new business models emerging as a result of the opportunities new economies hold?

Question 60

How many objectives and measures are recommended for strategic scorecards to be effective?

A) 24 objectives and 8 measures
B) 8 objectives and 24 measures
C) 2 objectives and 6 measures
D) 6 objectives and 6 measures

Question 61

What are the ten deadly sins of objective management?

Question 62

For each of Kaplan and Norton's four perspectives what measurement indices could be applied?