Question 1

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker faced very long odds in getting a license from Bell Labs for using their transistor.The end result of the effort to get the license was what?

Accepted Answer

The TR-55 was introduced using the Bell Labs transistor in 1957. Sony sold 1.5 million units and became a leader in consumer electronics.

Question 2

A mission describes ____________.

Accepted Answer

A mission describes what the organization does and why it does it.

Question 3

Many of the early U.S.railroad companies defined themselves as being in the railroad business instead of being in the transportation needs business.These companies used ______________.

Accepted Answer

Product-oriented missions define a business in terms of a good or service provided.

Question 4

Better World Books (BWB)wanted to fight illiteracy by donating 50 percent of its revenues,as stated in its mission.The fact that it had to later reduce the donation amount to between 7-10 percent is a reflection of the fact that:

Accepted Answer

The original mission was implemented in such a way that it hurt the long-term viability of businesses, particularly of startup and relatively small firms.

Question 5

Staking out a desired leadership position that far exceeds a company's current resources and capabilities is called what?

Accepted Answer

This is the definition of strategic intent. It can be a small component of the strategy management process, but that term is too general for this more specific description.

Question 6

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker became the highly successful firm Sony.However,more recently Sony has not performed very well.To what can this be attributed?

Accepted Answer

Though several factors have affected Sony, such as the economic downturn, other competitors like Apple have thrived even through the downturn.

Question 7

Which one of the following best describes a product-oriented mission?

Accepted Answer

Product-oriented missions define a business in terms of a good or service provided.

Question 8

Visionary companies differ from their competition in that:

Accepted Answer

Teach For America is one example of an organization that attracts passionate workers with its mission and values.

Question 9

Customer-oriented missions are defined as __________________.

Accepted Answer

It defines the business in terms of providing solutions to customer needs.

Question 10

When Disney says its mission is "to make people happy," they translate that mission into which of the following actions as discussed in the text?

Accepted Answer

Disney embeds a metaphor of a "show" throughout their theme parks, thus all employees are expected to help the customers (or audience) have a good time.

Question 11

It is important to separate having a customer-oriented mission from listening to your customers.If Henry Ford had merely listened to his customers of 100 years ago what would he have done?

Accepted Answer

Current customers do not always know what the possibilities are for new products and services to meet their needs.

Question 12

Which of the following is NOT true concerning a customer-oriented mission?

Accepted Answer

A mission does not look at the methods to accomplish the customer need.

Question 13

A business statement defined in terms of a good or service provided is called a _______________.

Accepted Answer

Product-oriented missions define a business in terms of a good or service provided.

Question 14

Mission statements can also be used to help refocus a firm on its main line of business.One example of this given in the text is:

Accepted Answer

Shell Canada recognized its strength as a low-cost producer of oil and gas and shifted out of its other businesses to focus there.

Question 15

Strategic intent is considered to be forward-looking and future-oriented.It is most useful in situations where _______________.

Accepted Answer

Strategic intent is most widely used when there is a large gap between competitors, and the ones not doing well desire to surpass better-established firms.

Question 16

It has been found that visionary companies outperform other companies by more than 1,400 percent.One reason for this is:

Accepted Answer

For visionary companies, superior financial performance is a byproduct of living up to their missions.

Question 17

Mission statements have been shown to be associated with firm performance.In many cases,organizations with sound missions are more successful; however,what is far less clear is ________.

Accepted Answer

There is empirical research that missions can be associated with good or poor performance. However, it is not clear that a mission statement will lead to (or causes) the resulting performance.

Question 18

If the early U.S.railroad companies defined themselves as being in the transportation needs business,which is more customer-oriented,they might have successfully moved into what product/service before any other firm?

Accepted Answer

The railroads were in a great position to move into delivery of their cargo from the rail station to where the end customer needed it well before Federal Express existed.

Question 19

When an organization briefly describes what its business is about and why it does it,they have articulated a _______________.

Accepted Answer

A mission statement describes what the organization does and why it does it.

Question 20

Chinese companies such as BYD and Lenovo made global leadership their mission.One of the tools they used to accomplish this position is what?

Accepted Answer

Stretch goals are an important tool in motivating organizations to accomplish great things.

Quiz 2: The Strategic Management Process

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker faced very long odds in getting a license from Bell Labs for using their transistor.The end result of the effort to get the license was what?

A mission describes ____________.

Many of the early U.S.railroad companies defined themselves as being in the railroad business instead of being in the transportation needs business.These companies used ______________.

Better World Books (BWB) wanted to fight illiteracy by donating 50 percent of its revenues,as stated in its mission.The fact that it had to later reduce the donation amount to between 7-10 percent is a reflection of the fact that:

Staking out a desired leadership position that far exceeds a company's current resources and capabilities is called what?

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker became the highly successful firm Sony.However,more recently Sony has not performed very well.To what can this be attributed?

Which one of the following best describes a product-oriented mission?

Visionary companies differ from their competition in that:

Customer-oriented missions are defined as __________________.

When Disney says its mission is "to make people happy," they translate that mission into which of the following actions as discussed in the text?

It is important to separate having a customer-oriented mission from listening to your customers.If Henry Ford had merely listened to his customers of 100 years ago what would he have done?

Which of the following is NOT true concerning a customer-oriented mission?

A business statement defined in terms of a good or service provided is called a _______________.

Mission statements can also be used to help refocus a firm on its main line of business.One example of this given in the text is:

Strategic intent is considered to be forward-looking and future-oriented.It is most useful in situations where _______________.

It has been found that visionary companies outperform other companies by more than 1,400 percent.One reason for this is:

Mission statements have been shown to be associated with firm performance.In many cases,organizations with sound missions are more successful; however,what is far less clear is ________.

If the early U.S.railroad companies defined themselves as being in the transportation needs business,which is more customer-oriented,they might have successfully moved into what product/service before any other firm?

When an organization briefly describes what its business is about and why it does it,they have articulated a _______________.

Chinese companies such as BYD and Lenovo made global leadership their mission.One of the tools they used to accomplish this position is what?