Question 1

Which of the following is not an example of a financial strategic objective?
A) Increase sales growth 6 percent to 8 percent and accelerate core net earnings growth from 13 percent to15 percent per share in each of the next 5 years. (Procter & Gamble)
B) Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M)
C) Generate Internet-related revenue of $1.5 billion. (AutoNation)
D) Cut corporate overhead costs by $30 million per year. (Fortune Brands)

Accepted Answer

Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales (3M) is a nonfinancial strategic objective.

Question 2

Successful organizations are effective in motivating people.Employees work best when
A) they are asked to do their best.
B) work requirements are vague and unclear.
C) they are striving toward specific goals.
D) they are guided by an abstract mission statement.

Accepted Answer

Challenging objectives can help to motivate and inspire employees to higher levels of commitment and effort. Much research has supported the notion that people work harder when they are striving toward specific goals instead of being asked simply to do their best.

Question 3

In large organizations,conflicts can arise between functional areas.In order to resolve these conflicts,strategic objectives
A) put financial objectives above human considerations.
B) align departments toward departmental goals.
C) help resolve conflicts through their common purpose.
D) cause debate and increase conflict.

Accepted Answer

There is always the potential for different parts of an organization to pursue their own goals rather than overall company goals. Although well intentioned, these may work at cross-purposes to the organization as a whole. Meaningful objectives thus help to resolve conflicts when they arise.

Question 4

The vision and mission statements of a company set the overall direction of the organization.Strategic objectives serve what role?
A) operationalize the mission statement
B) modify the mission statement
C) are a shorter version of the mission statement
D) are only clarified by the board of directors

Accepted Answer

Strategic objectives are used to operationalize the mission statement. That is, they help to provide guidance on how the organization can fulfill or move toward the higher goals in the goal hierarchy, that of the mission and vision.

Question 5

WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future.This is an example of a
A) strategic objective.
B) vision statement.
C) vague statement of direction.
D) line manager's individual goal.

Accepted Answer

Effective visions provide a fundamental statement of the values, aspirations and goals of an organization. Such visions go well beyond narrow financial objectives, of course, and strive to capture both the minds and hearts of employees.

Question 6

We want to be the top-ranked supplier to our customers.(PPG)This is an example of a
A) nonfinancial strategic objective.
B) financial strategic objective.
C) vision statement.
D) mission statement.

Accepted Answer

Strategic objectives are used to operationalize the mission statement. This is an example of a nonfinancial strategic objective.

Question 7

Vision statements are used to create a better understanding of the overall purpose and direction of the organization.Vision statements
A) are very specific.
B) provide specific objectives.
C) set organizational structure.
D) evoke powerful and compelling mental images.

Accepted Answer

A vision is an organizational goal(s) that evoke(s) powerful and compelling mental images.

Question 8

Tim Brown,CEO of IDEO,believes that the ________ of a person should not dictate the level of influence their ideas should be accorded.
A) age
B) seniority
C) position
D) education

Accepted Answer

As noted by Tim Brown, CEO of the premier design consulting firm IDEO: The best can come from anywhere in an organization. So you had better do a good job of spotting and promoting them when they come, and not let their positions dictate how influential their ideas are.

Question 9

In large organizations,the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals.Proper _______ can help to resolve conflicts when they arise.
A) mission statements
B) vision statements
C) organization structure
D) objectives

Accepted Answer

As we noted earlier in the chapter, there is always the potential for different parts of an organization to pursue their own goals rather than overall company goals. Although well intentioned, these may work at cross-purposes to the organization as a whole. Meaningful objectives thus help to resolve conflicts when they arise.

Question 10

In contrast to the vision of an organization,its mission should
A) be shorter in length.
B) encompass both the purpose of the company as well as the basis of competition.
C) encompass all the major rules and regulations of the corporate work force.
D) be less detailed.

Accepted Answer

The mission statement of a company differs from its vision in that it encompasses both the purpose of the company as well as the basis of competition and competitive advantage.

Question 11

Effective vision statements include
A) all strategic directions of the organization.
B) a brief statement of the company's direction.
C) strategic posturing and future objectives.
D) financial objectives and projected figures.

Accepted Answer

A vision is a goal that is massively inspiring, overarching, and long-term. It represents a destination that is driven by and evokes passion. What visions may lack in specificity, they make up for in their ability to evoke powerful and compelling mental images.

Question 12

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved,they do provide a fundamental statement of the __________ of an organization.
A) values, aspirations, and goals
B) expected returns and limitations
C) outstanding debt
D) credibility

Accepted Answer

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of organization values, aspirations, and goals. Such visions go well beyond narrow financial objectives, of course, and strive to capture both the minds and hearts of employees.

Question 13

The hierarchy of organizational goals is in this order (least specific to most specific):
A) vision statements, strategic objectives, mission statements
B) mission statements, strategic objectives, vision statements
C) vision statements, mission statements, strategic objectives
D) mission statements, vision statements, strategic objectives

Accepted Answer

Organizations express priorities best through stated goals and objectives that form a hierarchy of goals, which includes its vision, mission, and strategic objectives. What visions may lack in specificity, they make up for in their ability to evoke powerful and compelling mental images. On the other hand, strategic objectives tend to be more specific and provide a more direct means of determining if the organization is moving toward broader, overall goals.

Question 14

Fortune Brands states they will cut corporate overhead costs by $30 million a year.This is an example of a
A) nonfinancial strategic objective.
B) financial strategic objective.
C) vision statement.
D) mission statement.

Accepted Answer

Strategic objectives are used to operationalize the mission statement. This is an example of a financial strategic objective.

Quiz 1: Strategic Management: Creating Competitive Advantages

Which of the following is not an example of a financial strategic objective?

Successful organizations are effective in motivating people.Employees work best when

In large organizations,conflicts can arise between functional areas.In order to resolve these conflicts,strategic objectives

The vision and mission statements of a company set the overall direction of the organization.Strategic objectives serve what role?

WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future.This is an example of a

We want to be the top-ranked supplier to our customers.(PPG) This is an example of a

Vision statements are used to create a better understanding of the overall purpose and direction of the organization.Vision statements

Tim Brown,CEO of IDEO,believes that the ________ of a person should not dictate the level of influence their ideas should be accorded.

In large organizations,the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals.Proper _______ can help to resolve conflicts when they arise.

In contrast to the vision of an organization,its mission should

Effective vision statements include

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved,they do provide a fundamental statement of the __________ of an organization.

The hierarchy of organizational goals is in this order (least specific to most specific) :

Fortune Brands states they will cut corporate overhead costs by $30 million a year.This is an example of a