Deck 5: Business Mission and Strategy

Question 1

A product mix uses the resources of a company to do things better than its competitors.

Answer 1

False

Question 2

The mission statement and strategies can be developed after identifying potential customers.

Answer 2

False

Question 3

A business owner should never change its mission statement or strategy.

Answer 3

False

Question 4

An overall strategy assists the business by focusing its efforts in specific areas.

Question 5

Metrics, once they are identified, are never altered.

Question 6

The greatest source of a sustainable advantage is to know the potential customers.

Question 7

An owner should establish the mission statement and strategies _________.

A) prior to its inception
B) at the first day of business
C) at the 30-day review
D) at the 90-day review

Question 8

When developing a mission statement, a new business founder needs to ensure this characteristic is used to make it effective.

A) universal
B) specific
C) measurable
D) all of these

Question 9

Emotional intelligence of a company is listed as _________.

A) system assets
B) critical assets
C) tangible assets
D) intangible assets

Question 10

A focus differentiation strategy revolves around:

A) knowing all your potential customers
B) a consistent set of activities
C) establishing measurable goals
D) making the capability valuable

Question 11

A company should develop its strategy based on:

A) mission statement
B) resource-based analysis
C) elasticity of demand
D) resource-based view

Question 12

All of the following are characteristics of a simple mission statement EXCEPT:

A) It is understandable.
B) It can be communicated easily.
C) It is not appropriate.
D) It is direct.

Question 13

In the Zane's Cycles case study, Chris Zane chose a strategy that included all of the following EXCEPT:

A) build business on relationships in the community
B) deal with people he had relationships with
C) provide exceptional service
D) believe that customers would not change businesses if they found cheaper prices elsewhere

Question 14

In the Friend's Home Health case study, what decision is impacted by the mission of the organization?

A) advertising and location
B) location and staffing
C) both of these
D) none of these

Question 15

In the Friend's Home Health case study, one of the key issues their mission statement reflected was?

A) product mix
B) security
C) staffing
D) all of these

Question 16

An example of tangible assets includes all of the following, EXCEPT:

A) industry experience
B) contacts
C) education
D) none of these

Question 17

An example of intangible assets includes all of the following, EXCEPT:

A) previous start-up experience
B) unique knowledge of the industry
C) skill set of founders
D) all of these

Question 18

In the Flow Right Brewery & Bar: A Family Affair case study, what decision did Chris make with regard to crafting his mission statement?

A) He put profits first.
B) He stayed true to himself.
C) Both of these.
D) None of these.

Question 19

An example of extraordinary resources or capabilities include all of the following, EXCEPT:

A) having the last corner location at an intersection
B) supplying original auto parts
C) having something customers value enough to pay more for
D) all of these

Question 20

Describe the four logical steps in developing a firm's strategy.

Question 21

The resource-based perspective is an effective method to analyze a firm's resources that could lead to a sustainable competitive advantage. List and describe its four components.