Deck 2: The Business Vision and Mission

Question 1

Which statement is TRUE?

A) Companies must choose between having a mission statement or a vision statement.
B) A company can't have a mission statement unless it has a vision statement.
C) A vision statement cannot be established until a company has developed its mission statement.
D) The vision statement should be established before the mission statement.
E) Companies are required by law to have both mission and vision statements.

Answer 1

D

Question 2

A vision statement should answer the question, "What do we want to become?"

Answer 2

True

Question 3

Which type of statement should be created first and foremost?

A) Creed
B) Vision
C) Objective
D) Mission
E) Competitive advantage

Answer 3

B

Question 4

According to Drucker, which question is synonymous with asking "What is our mission?"?

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 5

The ideal length of a vision statement is

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

Question 6

Compare and contrast vision statements with mission statements.

Question 7

Well conceived and properly executed mission and vision statements are not subject to revision.

Question 8

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 9

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

Question 10

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

Question 11

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

A) Cleland
B) Campbell
C) Drucker
D) McGinnis
E) Yeung

Question 12

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

Question 13

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

Question 14

Which best expresses former Colgate CEO Reuben Mark's thoughts on vision?

A) It's becoming less important that a clear mission make sense internationally.
B) It's essential to drive home different messages in different cultures.
C) Keeping the vision simple will never rally everyone to the corporate banner.
D) Pushing one vision globally is essential.
E) Elevated missions or visions will alienate international markets.

Question 15

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 an organization wants to serve.

Question 16

Which of the following is NOT true of vision statements?

A) A vision statement should reveal the type of business the firm engages.
B) Vision statements should be written from a customer perspective.
C) Vision statements should indicate the expected amounts of profits the firm wants to make.
D) A vision statement should describe a desired future state.
E) The vision statement needs to be doable, but challenging.

Question 17

A ________ statement specifies a firm's commitment to integrity, fairness, discipline, equal employment opportunity, teamwork, accountability, continuous improvement, and/or other such exemplary attributes.

A) strategy
B) business model
C) core values
D) stakeholder
E) planning

Question 18

While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises.

Question 19

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

Question 20

Which of these basic questions should a vision statement answer?

A) What is our business?
B) What is our core strength?
C) What are our challenges?
D) What do we want to become?
E) Who are our competitors?

Question 21

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

Question 22

According to Peter Drucker, answering the question "What is our business?" is the first responsibility of strategists.

Question 23

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

Question 24

In developing a mission statement, arousing emotion

A) is not a benefit.
B) is futile.
C) is important.
D) should be avoided if possible.
E) is counterproductive.

Question 25

A mission statement, is an enduring statement of purpose that distinguishes one organization from other similar enterprises.

Question 26

The general public is especially interested in ________, whereas stockholders are more interested in ________.

A) environmental concerns; social responsibility
B) social responsibility; the treatment of employees
C) the treatment of employees; environmental concerns
D) profitability; social responsibility
E) social responsibility; profitability

Question 27

The potential for creative growth in an organization can be limited by

A) an overemphasis on stakeholders.
B) not enough emphasis on stakeholders.
C) a mission statement that is too general.
D) a mission statement that is too specific.
E) a mission statement that is too dynamic.

Question 28

Which group would NOT be classified as stakeholders?

A) Governments
B) Creditors
C) Suppliers
D) Employees
E) Universities

Question 29

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

Question 30

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

Question 31

In order to appeal to diverse stakeholders, an effective mission statement should be

A) inflammatory.
B) provocative.
C) contentious.
D) reconciliatory.
E) dysfunctional.

Question 32

An overly general mission statement that ________ could be dysfunctional.

A) does not exclude any strategy alternatives
B) encourages management creativity
C) excludes all diversification
D) endorses the consideration of feasible potential strategies
E) allows for the generation and consideration of a range of alternative objectives

Question 33

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

Question 34

Describe why a mission statement is so important in the strategic-management process.

Question 35

All stakeholders' claims on an organization ________ pursued with equal emphasis.

A) cannot be
B) should always be
C) are required to be
D) must ideally be
E) can usually be

Question 36

The mission statement should reflect the anticipation of ________

A) customers.
B) government.
C) investors.
D) lenders.
E) suppliers.

Question 37

A good mission statement has

A) an employee orientation.
B) a customer orientation.
C) a shareholder orientation.
D) an environmental orientation.
E) a profit orientation.

Question 38

All stakeholders

A) have claims and concerns about an organization, but these claims and concerns vary.
B) have the same claims and concerns about an organization.
C) have ownership rights in an organization.
D) have the same voting rights in an organization.
E) have environmental concerns as their top priority.

Question 39

An effective mission statement does all of the following EXCEPT

A) it reflects judgments about future growth directions that are based upon forward-looking external and internal analyses.
B) it provides useful criteria for selecting among alternative strategies.
C) it provides a basis for generating and screening strategic options.
D) it is static in orientation.
E) it should be enduring.

Question 40

According to Drucker, a business' mission is the foundation for all of the following EXCEPT

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

Question 41

Which of these examples of a mission statement focus area does NOT identify the utility of the firm's products to its customers?

A) AT&T focuses on communication rather than telephones.
B) ExxonMobil focuses on oil and gas rather than energy.
C) Union Pacific focuses on transportation rather than railroads.
D) Universal Studios focuses on entertainment rather than movies.
E) A clothing retailer focuses on attractive looks rather than on clothes.

Question 42

All of the following utility statements are relevant in developing a mission statement EXCEPT

A) Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
B) Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.
D) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
E) Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.

Question 43

The recommended length of an effective mission statement is ________ words.

A) approximately 25
B) no more than 200
C) less than 100
D) at least 300
E) more than 500

Question 44

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

A) utility
B) price
C) profit margin
D) demand
E) popularity

Question 45

The mission statement should be short, preferably one sentence.

Question 46

What question is asked in conjunction with the philosophy component of a mission statement?

A) What are the firm's major products or services?
B) Is the firm committed to growth and financial soundness?
C) What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
D) Is the firm responsive to social, community, and environmental concerns?
E) Are employees a valuable asset of the firm?

Question 47

Mission statements cannot be stated with too high a level of specificity.

Question 48

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

Question 49

The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.

Question 50

One of the characteristics of a mission statement is that it should be inspiring.

Question 51

Excess specificity can stifle creativity in the formulation of an acceptable mission or purpose.

Question 52

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

Question 53

A mission statement is usually just a simple statement of specific details.

Question 54

An effective mission statement should do all of the following EXCEPT

A) include monetary amounts, numbers, percentages and ratios.
B) be inspiring.
C) reveal that the firm is environmentally responsible.
D) identify the utility of a firm's products.
E) be reconciliatory.

Question 55

In most cases, at least 500 words are required to effectively state a mission statement.

Question 56

A mission statement should include a clear summary of an organization's financial status.

Question 57

An effective mission statement generates the impression a firm is successful, has direction, and is worthy of time, support and investment.

Question 58

Individuals who own stock in a corporation are considered stakeholders.

Question 59

It is unusual for the claims and concerns of a company's stakeholders to vary or conflict.

Question 60

Customers and creditors are considered stockholders of an organization.

Question 61

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

Question 62

According to George Steiner, vagueness has no place in a good mission statement.

Question 63

Which component of a mission statement addresses the firm's major competitive advantage?

A) Technology
B) Philosophy
C) Concern for public image
D) Customers
E) Distinctive competence

Question 64

A mission statement should be narrow in scope.

Question 65

A mission statement that is limited enough to exclude some ventures is a poor mission statement.

Question 66

A mission statement should be broad enough to reconcile differences among an organization's various stakeholders.

Question 67

A good mission statement effectively reflects the anticipations of customers and reveals the utility that various products or services offer customers. Give three examples of this.

Question 68

The operating philosophy of organizations should be to develop a product and then try to find a market for it.

Question 69

Union Pacific's mission statement focuses on transportation rather than on railroads because good mission statements identify the utility of a firm's products to its customers.

Question 70

A mission statement is excessively broad if it represents an attempt to reconcile differences among an organization's various stakeholders.

Question 71

Which of the following illustrates the self-concept component of a mission statement?

A) To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes.
B) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees.
C) Our emphasis is on North American markets, although global opportunities will be explored.
D) To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations.
E) In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure our ultimate success.

Question 72

A good mission statement serves as a framework for evaluating both current and prospective activities.

Question 73

Union Pacific's mission statement focuses on environmental stewardship rather than on transportation or railroads because good mission statements identify the utility of a firm's products to its customers.

Question 74

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?

A) Technology
B) Philosophy
C) Concern for public image
D) Customers
E) Self-concept

Question 75

According to George Steiner, a mission statement should be broad in scope, since concrete specification could be the base for rallying opposition.

Question 76

Verizon's mission statement focuses on telephones rather than on communication.

Question 77

The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services."

A) Markets
B) Customers
C) Concern for Employees
D) Concern for Public Image
E) Technology

Question 78

Explain what it means for a mission statement to have a customer orientation.

Question 79

The question, "geographically, where does the firm compete?" is part of the ________ component of the mission statement.

A) customers
B) products or services
C) technology
D) philosophy
E) markets

Question 80

The utility statement, "Do not offer me attractive looks; offer me clothes," is relevant in developing a mission statement.