Deck 2: The Business Vision and Mission

Question 1

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."

Answer 1

True

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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 7

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

Question 8

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

Question 9

The mission statement should be short-preferably one sentence.

Question 10

There is no need for a mission statement in small, nonprofit organizations.

Question 11

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

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

According to Vern McGinnis, to be effective, all a mission statement need to do is define what the organization is and what the organization aspired to be.

Question 22

When a company has been successful and/or unsuccessful, the question "What is our business?" should be asked.

Question 23

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

Question 24

The most important time for a company to develop a mission and vision statement is when the company is experiencing financial difficulty.

Question 25

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

Question 26

In most cases, several paragraphs are required to effectively state a mission statement.

Question 27

Individuals who own stock in a corporation are considered stakeholders.

Question 28

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

Question 29

A mission statement should be broad enough to reconcile differences among an organizations various stakeholders.

Question 30

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

Question 31

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

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 should be stated with high level of precision.

Question 35

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

Question 36

In multidivisional organizations, each division should develop a mission statement independent of the parent company.

Question 37

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

Question 38

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

Question 39

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

Question 40

Due to new emission standards, the production of big-rig trucks has decreased significantly.

Question 41

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

Question 42

Which of these basic questions should a vision statement answer?

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

Question 43

According to a survey completed in 2007, United Parcel Service UPS) scored very low in corporate responsibility.

Question 44

During the strategy-implementation process, social policy should be set and administered.

Question 45

Japan's national debt is difficult to reduce largely because the country does not view immigration as a good means to offset declines in the number of workers.

Question 46

A well-conceived mission statement is the cornerstone of effective strategic management.

Question 47

According to the Nobel Laureate Milton Friedman, organizations have tremendous social obligations.

Question 48

Social policy should be reaffirmed or changed during strategy implementation.

Question 49

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

Question 50

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 51

Environmental changes should not change a mission statement.

Question 52

The vision and mission statement can often be found

A) in the SEC report.
B) in annual reports.
C) on customer receipts.
D) on supplier invoices.
E) on community news bulletins

Question 53

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

Question 54

Social policy should be designed and articulated during the strategy-implementation stage.

Question 55

Corporate policies related to mandatory retirement are a growing concern in many counties.

Question 56

It is generally a good idea to use the mission statement as a guide when completing an external and internal analysis.

Question 57

The percentage of foreign workers to the total population is greater in the United Kingdom than in the United States

Question 58

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

Question 59

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

Question 60

From a social responsibility perspective, Toys "R" Us is one of the least admired companies.

Question 61

King and Cleland recommend 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 62

Which statement should be created first and foremost?

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

Question 63

The ideal length of a vision statement is:

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

Question 64

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 65

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 66

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

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

Question 67

What is needed before people can focus on specific strategy formulation activities when developing a mission statement?

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

Question 68

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 69

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) provide a request for modifications, additions and deletions to the mission statement

Question 70

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 71

Business Week reports that firms using mission statements have __________ percent higher return on certain financial measures than those without such statements.

A) 10
B) 15
C) 30
D) 57
E) 54

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) a facilitator

Question 73

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 74

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) Short-term objectives

Question 75

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

A) A request to modify the current document
B) Ask managers to read selected articles about mission statements.
C) Ask managers to prepare a mission statement for the organization.
D) Have a brainstorming session on whether the organization should have a mission statement.
E) A merging of several mission statements into one document

Question 76

A businesses mission is the foundation for all of the following except:

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

Question 77

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 78

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 79

What is likely to happen if a mission or vision statement is implemented during troubled times for a firm?

A) Employees will ignore the new mission or vision statement.
B) Profitability will decline.
C) The firm will experience a reverse in the decline of profitability.
D) No change
E) Managers will be unable to resolve divergent views

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