Question 1

Ideally,a company's mission statement should be sufficiently descriptive and include which of the following?
A) Identify the company's services and products to give the company its own identity.
B) Relate to the buyer's needs that the company seeks to satisfy.
C) Identify the customer or market that the company intends to serve.
D) Specify the approach taken by the company to satisfy its customer's needs.
E) All of these choices are correct.

Accepted Answer

Mission statements of most companies say much more about the enterprise's present business scope and purpose-"why we exist." A well-conceived mission statement should employ language specific enough to give the company its own identity.A mission statement that provides scant indication of "who we are and what we do" has no apparent value.

Question 2

Management's strategic vision for an organization
A) charts a strategic course for the organization ("where we are going") and outlines the company's future product-customer-market-technology focus.
B) describes in fairly specific terms the organization's business model,strategic objectives,and strategy.
C) spells out how the company will become a big moneymaker and boost shareholder value.
D) addresses the critical issue of "why our business model needs to change and how we plan to change it."
E) spells out the organization's strategic moves that will be undertaken to achieve competitive advantage.

Accepted Answer

Top management's views about the company's direction and future product-customer-market-technology focus constitute a strategic vision for the company.A clearly articulated strategic vision communicates management's aspirations to stakeholders about "where we are going" and helps steer the energies of company personnel in a common direction.

Question 3

Which of the following are characteristics of an effectively worded strategic vision statement?
A) graphic,directional,and focused
B) challenging,competitive,and "set in concrete"
C) balanced,responsible,and rational
D) realistic,customer-focused,and market-driven
E) achievable,profitable,and ethical

Accepted Answer

An effectively worded strategic vision statement should be graphic, directional and focused, as it should be clear and concise in communicating the organization's aspirations and goals. Challenging, competitive, set in concrete, balanced, responsible, rational, realistic, customer-focused, market-driven, achievable, profitable, and ethical are also characteristics that could be desirable but are not all necessary.

Question 4

When a company is confronted with significant industry change that mandates radical revision of its strategic course,the company is said to have encountered a(n)
A.
learning and growth perspective.
B.
strategic inflection point.
C.
strategic roadblock.
D.
new strategic opportunity.
E.
opportunity for corporate entrepreneurship.

Accepted Answer

A strategic inflection point occurs when a company is challenged by a significant change in its industry or market, requiring them to make major strategic changes to remain competitive. This often involves abandoning old strategies and adopting new ones to adapt to the changing landscape.

Question 5

A company's mission statement typically addresses which of the following questions?
A) Who are we? What do we do? and Why are we here?
B) What objectives and level of performance do we want to achieve?
C) Where are we going and what should our strategy be?
D) What approach should we take to achieve sustainable competitive advantage?
E) Why have we chosen a particular business model to achieve our objectives and our vision?

Accepted Answer

Mission statements of most companies say much more about the enterprise's present business scope and purpose-"why we exist."

Question 6

When companies adopt the strategy making,strategy execution process,it requires they start by
A.
developing a strategic vision,mission,and values.
B.
developing a proven business model,deciding on the company's top management team,and crafting a strategy.
C.
setting objectives,developing a business model,crafting a strategy,and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage.
D.
coming up with a statement of the company's mission and communicating it to all employees,setting objectives,selecting a business model,and monitoring developments and initiating corrective adjustments to the business model when necessary.
E.
deciding on the company's board of directors,setting financial objectives,crafting a strategy,and choosing what business approaches and operating practices to employ.

Accepted Answer

The answer of When companies adopt the strategy making,strategy execution...

Question 7

Which of the following is not a common shortcoming of company vision statements?
A) vague or incomplete-short on specifics
B) focused and narrow-exclusive to a specific direction
C) bland or uninspiring
D) not distinctive-could apply to most any company (or at least several others in the same industry)
E) too reliant on superlatives (best,most successful,recognized leader,global or worldwide leader,first choice of customers)

Accepted Answer

Focused and narrow vision statements are not considered to be a common shortcoming. In fact, a clear and specific vision can help a company to stay on track and achieve its goals. The common shortcomings are vague or incomplete statements, bland or uninspiring language, lack of distinctiveness, and overreliance on generic superlatives.

Question 8

A company's strategic vision concerns
A) a company's directional path and future product-customer-market-technology focus.
B) why the company does certain things in trying to please its customers.
C) management's story line of how it intends to make a profit with the chosen strategy.
D) "who we are and what we do."
E) what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

Accepted Answer

Top management's views about the company's direction and future product-customer-market-technology focus constitute a strategic vision for the company.A clearly articulated strategic vision communicates management's aspirations to stakeholders about "where we are going" and helps steer the energies of company personnel in a common direction.

Question 9

Well-conceived visions are
A) distinctive.
B) specific to a particular organization.
C) free of generic,feel-good statements.
D) not innocuous one-sentence statements.
E) All of these choices are correct.

Accepted Answer

The question is asking for attributes of well-conceived visions, and all of the given choices are correct. A well-conceived vision should be distinctive, specific to the organization, free of generic or feel-good statements, and not innocuous one-sentence statements.

Question 10

Which one of the following is not a characteristic of an effectively worded strategic vision statement?
A) directional (is forward-looking,describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future)
B) easy to communicate (is explainable in 10 to 15 minutes,can be reduced to a memorable slogan)
C) graphic (paints a picture of the kind of company management is trying to create and the market position or positions the company is striving to stake out)
D) consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support)
E) focused (is specific enough to provide guidance to managers in making decisions and allocating resources)

Accepted Answer

A consensus-driven strategic vision statement implies that the company's direction has been determined based on agreement from most stakeholders, rather than based on the company's own goals and ambitions. This could limit the company's potential and innovative capabilities, as it may not be pushing beyond the mainstream. Therefore, a consensus-driven approach may not be a desirable characteristic for an effectively worded strategic vision statement.

Question 11

Which one of the following is not an accurate attribute of an organization's strategic vision?
A) a clearly articulated view of "where we are going"
B) describing the company's future product-customer-market-technology focus
C) pointing an organization in a particular direction and charting a strategic path for it to follow
D) providing managers with a reference point for making strategic decisions
E) specifying how the company intends to implement and execute its business model

Accepted Answer

Top management's views about the company's direction and future product-customer-market-technology focus constitute a strategic vision for the company.A clearly articulated strategic vision communicates management's aspirations to stakeholders about "where we are going" and helps steer the energies of company personnel in a common direction.

Question 12

Which one of the following is not one of the five stages of an ongoing,continuous strategic management process?
A) forming a strategic vision of the company's future direction and focus
B) setting objectives to measure progress toward achieving the strategic vision
C) crafting a strategy to achieve the objectives and get the company where it wants to go
D) developing a profitable business model
E) implementing and executing the chosen strategy efficiently and effectively

Accepted Answer

Developing a profitable business model is not one of the five stages of an ongoing, continuous strategic management process. The five stages are forming a strategic vision, setting objectives, crafting a strategy, implementing the strategy, and evaluating and making adjustments as necessary.

Question 13

A company's strategic plan consists of
A) its balanced scorecard and its business model.
B) a vision of where it is headed,a set of performance targets,and a strategy to achieve them.
C) its strategy and management's specific,detailed plans for implementing it.
D) a company's plans for improving value-creating internal processes.
E) a strategic vision,a strategy,and a business model.

Accepted Answer

The first three stages of the strategic management process-(1) developing a strategic vision,(2) setting objectives,and (3) crafting strategy-comprise a strategic plan.A strategic plan maps out where a company is headed,establishes strategic and financial targets,and outlines the competitive moves and approaches to be used in achieving the desired business results.

Question 14

The benefit of a vivid,engaging,and convincing strategic vision is
A) its ability to crystallize top management's own view about the company's long-term direction.
B) it reduces the risk of rudderless decision making by managers at all levels of the organization.
C) it helps an organization prepare for the future.
D) its ability to unite company personnel behind managerial efforts to get the company moving in the intended direction.
E) All of these are important benefits of an effective strategic vision.

Accepted Answer

A well-thought-out,forcefully communicated strategic vision pays off in several respects: (1) It crystallizes senior executives' own views about the firm's long-term direction; (2) It reduces the risk of rudderless decision-making by management at all levels; (3) It is a tool for winning the support of employees to help make the vision a reality; (4) It provides a beacon for lower-level managers in forming departmental missions; and (5) It helps an organization prepare for the future.

Question 15

Which of the following is an integral part of the managerial process of crafting and executing strategy?
A) developing a proven business model
B) setting objectives and using them as yardsticks for measuring the company's performance and progress
C) deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
D) communicating the company's mission and purpose to all employees
E) deciding on the composition of the company's board of directors

Accepted Answer

Setting objectives and using them as yardsticks for measuring the company's performance and progress is an integral part of the managerial process of crafting and executing strategy. This helps in monitoring the effectiveness of the strategy and making necessary adjustments to achieve desired outcomes.

Answer: C 
 Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage is another crucial aspect of the managerial process of crafting and executing strategy. This involves allocating resources in a manner that maximizes the company's strengths, minimizes weaknesses, takes advantage of opportunities, and counters potential threats.

Answers A, D, and E are also important considerations in the strategic management process, but they are not directly related to the crafting and execution of strategy. Developing a proven business model is a critical success factor for firms, but it is more of a prerequisite for strategic management than a part of it. Communicating the company's mission and purpose to all employees and deciding on the composition of the company's board of directors are also important, but they are peripheral activities that support the strategic management process rather than integral parts of it.

Question 16

Top management's views about where the company is headed and what its future product-customer-market-technology will be
A) indicates what kind of business model the company is going to have in the future.
B) constitutes the strategic vision for the company.
C) signals what the firm's strategy will be.
D) serves to define the company's mission.
E) indicates what the company's long-term strategic plan is.

Accepted Answer

Top management's views about the company's direction and future product-customer-market-technology focus constitute a strategic vision for the company.A clearly articulated strategic vision communicates management's aspirations to stakeholders about "where we are going" and helps steer the energies of company personnel in a common direction.

Question 17

The strategy-making,strategy-executing process
A) is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives.
B) includes establishing a company's mission,developing a business model aimed at making the company an industry leader,and crafting a strategy to implement and execute the business model.
C) embraces the tasks of developing a strategic vision,setting objectives,crafting a strategy,implementing and executing the strategy,and then monitoring developments and initiating corrective adjustments in light of experience,changing conditions,and new opportunities.
D) is principally concerned with sizing up an organization's internal and external situation,so as to be prepared for the challenge of developing a sound business model.
E) is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved.

Accepted Answer

The process consists of the five steps outlined in Figure 2.1.Management's decisions that are made in the strategic management process are shaped by the prevailing economic conditions and competitive environment and the company's own internal resources and competitive capabilities,also shown in Figure 2.1 and described in detail in Table 2.1.

Question 18

The strategic management process is shaped by
A.
management's strategic vision,strategic and financial objectives,and strategy.
B.
the decisions made by the compensation and audit committees of the board of directors.
C.
external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.
D.
a company's customer value proposition and profit formula.
E.
actions to strengthen competitive capabilities and correct weaknesses,actions to strengthen market standing and competitiveness by acquiring or merging with other companies,and actions to enter new geographic or product markets.

Accepted Answer

The answer of The strategic management process is shaped by
A.
management's...

Question 19

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of
A) not only explaining "where we are going and why" but,more importantly,also inspiring and energizing company personnel to unite to get the company moving in the intended direction.
B) helping company personnel understand why "making a profit" is so important.
C) making it easier for top executives to set strategic objectives.
D) helping lower-level managers and employees better understand the company's business model.
E) All of these choices are correct.

Accepted Answer

The defining characteristic of a well-conceived strategic vision is what it says about the company's future strategic course-"where we are headed and what our future product-customer-market-technology focus will be." Vision statements galvanize action among company personnel.Alternatively,mission statements of most companies say much more about the enterprise's present business scope and purpose-"why we exist."

Question 20

Which of the following are common shortcomings of company vision statements?
A) too broad,vague or incomplete,bland/uninspiring,not distinctive,and too reliant on superlatives
B) unrealistic,unconventional,and unbusinesslike
C) too specific,too inflexible,and can't be achieved in five years
D) too broad,too narrow,and too risky
E) not customer-driven,out-of-step with emerging technological trends,and too ambitious

Accepted Answer

The common shortcomings of company vision statements include being too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives.

Quiz 2: Strategy Formulation, Execution, and Governance

Ideally,a company's mission statement should be sufficiently descriptive and include which of the following?

Management's strategic vision for an organization

Which of the following are characteristics of an effectively worded strategic vision statement?

A company's mission statement typically addresses which of the following questions?

Which of the following is not a common shortcoming of company vision statements?

A company's strategic vision concerns

Well-conceived visions are

Which one of the following is not a characteristic of an effectively worded strategic vision statement?

Which one of the following is not an accurate attribute of an organization's strategic vision?

Which one of the following is not one of the five stages of an ongoing,continuous strategic management process?

A company's strategic plan consists of

The benefit of a vivid,engaging,and convincing strategic vision is

Which of the following is an integral part of the managerial process of crafting and executing strategy?

Top management's views about where the company is headed and what its future product-customer-market-technology will be

The strategy-making,strategy-executing process

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of

Which of the following are common shortcomings of company vision statements?