Deck 2: Company Mission

Question 1

In general terms,which of the following questions is addressed by the mission statement?

A) How should we price our products?
B) What are our economic goals?
C) Which employees should we hire?
D) What leverage structure should we follow?

Answer 1

B

Question 2

In deriving a mission statement,which of the following should be included?

A) Tax advantages
B) Secondary markets to be served
C) Concern for survival through growth
D) Employee rules and policies

Answer 2

C

Question 3

The mission statement is a message designed to be inclusive of the expectations of _______ stakeholders for the company's performance over the ______.

A) All; long run
B) Only key; short run
C) All; short run
D) Only key; long run

Answer 3

A

Question 4

Which of these is NOT true about the company mission?

A) It embodies the business philosophy of the firm's strategic decision makers
B) It implies the image the firm seeks to project
C) It provides specific strategies for front-line managers
D) It reflects the firm's self-concept

Question 5

When should a company redefine its mission?

A) When the competition have failed
B) When the board meets with top management annually
C) When the business is forced by competitive pressures to alter its products of market
D) When the government requires the business to redefine it

Question 6

In general terms,the mission statement addresses all of the following questions EXCEPT

A) What are our economic goals?
B) What is our operating philosophy in terms of quality, company image and self-concept?
C) What customers do and can we serve?
D) Who are our competitors and how can we collaborate with them?

Question 7

The mission reflects the:

A) Values of the decision makers
B) Goals of the decision makers
C) Experiences of the decision makers
D) Policies of firm

Question 8

Which external body requires that a company have a mission statement?

A) None
B) SEC
C) Justice Department
D) IRS

Question 9

Characteristically,the company mission is a statement of all of these EXCEPT

A) Attitudes
B) Outlooks
C) Measurable targets
D) Orientation

Question 10

The unique purpose that sets a company apart from others of its type and identifies the scope of its operations.In product,market and technology terms is defined as (the)

A) Adverse selection
B) Company mission
C) Moral hazard problem
D) Vision statement

Question 11

The mission:

A) Sets policy
B) Describes the firm's product
C) Identifies stakeholders
D) Creates the board of directors

Question 12

The company mission identifies the

A) Key competitors in the marketplace
B) Board of directors' responsibility towards the owners
C) Specific strategies for gaining market share
D) Scope of its operations in product and market terms

Question 13

_____ is a statement,not of measurable targets but of attitude,outlook,and orientation.

A) Company mission
B) Company vision
C) Company strategy
D) Company policy

Question 14

A revised mission will contain _____ components as the original.

A) the same
B) more
C) fewer
D) different

Question 15

As the business grows or is forced by competitive pressures to alter its product,market,or technology,______ the company mission may be necessary.

A) redefining
B) abandoning
C) writing
D) discarding

Question 16

The company mission reflects the firm's

A) Vision
B) Self-concept
C) Corporate governance
D) Agency costs

Question 17

The company mission is a broadly framed but enduring statement of

A) A firm's intent
B) Corporate structure
C) A firm's competitive positioning
D) Stakeholder analysis

Question 18

The process of defining the company mission for a specific business can be best understood by

A) Thinking about the business at its inception
B) Looking at the industry attributes
C) Analyzing the regulatory requirements of what to include in a mission
D) Analyzing the most successful competitors in the marketplace

Question 19

Which one of the following is NOT an outcome designed to be accomplished by a company mission?

A) To provide a unifying purpose for the organization
B) To provide a basis for strategic objective setting
C) To provide a basis for decision making
D) To reward stockholders

Question 20

A mission statement should include all of these components EXCEPT

A) Basic types of products or services to be offered
B) The firm's managerial philosophy
C) The public image the firm seeks
D) The government regulations the firm must meet

Question 21

______ is the mainstay goal of a business organization.

A) Profitability
B) Products
C) Service
D) Growth

Question 22

The statement which usually accompanies the mission statement and expresses the firm's basic beliefs,values and aspirations is known as:

A) Grand strategy
B) The company's statement of philosophy
C) The company profile
D) Long-term objectives

Question 23

In a dynamic business environment,______ is essential.

A) Status quo
B) Compromising ethics in decision making
C) Proactive change
D) Adverse selection

Question 24

Generally,_____ is accepted as the clearest indication of a firm's ability to satisfy the principal desires of employees and stockholders.

A) Profit over the long term
B) Profit over the short term
C) Return on assets
D) The number of lawsuits brought against the firm

Question 25

Three indispensable components of the mission statements are specifications of the:

A) Basic product or service, primary markets and principal technology
B) Self-concept, managerial philosophy and public image
C) Concern for survival through growth, self-concept and primary markets
D) Economic goals, core competencies and primary and secondary customers

Question 26

_____ vary little from one firm to another.

A) Philosophies
B) Mission statements
C) Goals
D) Vision statements

Question 27

Most _____ are so platitudinous that they read more like public relations handouts.

A) Philosophies
B) Mission statements
C) Goals
D) Vision statements

Question 28

When the survival goal is taken for granted,therefore neglected in strategic decision making,the firm's focus shifts to

A) Long run
B) Intermediate run
C) Direction-less activities
D) Short run

Question 29

A firm will be incapable of satisfying its stakeholders' claims,if it does NOT insure:

A) Growth
B) Survival
C) Profitability
D) Competitive dominance

Question 30

Given that managers implicitly accept a general,unwritten,yet pervasive code of behavior that govern business actions,the _____ vary little from one firm to another.

A) Philosophies
B) Visions
C) Missions
D) Self-concepts

Question 31

Basing decisions on a short-term concern for profitability would lead to

A) A reduced market share
B) A strategic myopia
C) A competitive warfare
D) A governmental lawsuit

Question 32

All of these are economic goals that guide the strategic direction of organizations EXCEPT

A) Survival
B) Market share
C) Profitability
D) Growth

Question 33

Growth means change,and _____ change is required in a _____ business environment.

A) proactive, dynamic
B) reactive, dynamic
C) proactive, stable
D) reactive, uncertain

Question 34

Which of these often reads more like public relations handouts than the commitment to values they are meant to be?

A) Firm's economic goals
B) Company's self-concept
C) Statement of company philosophy
D) Firm's core competencies and competitive advantage statement

Question 35

Which of the following goals are taken for granted to such an extent that it is neglected as a principal criterion in strategic decision making?

A) Maturity
B) Ethics
C) Survival
D) Competitiveness

Question 36

A firm's _____ is tied inextricably to its survival and profitability.

A) growth
B) prominence
C) fame
D) salability

Question 37

The combination of which of these factors describe the company's business activity?

A) Basic product or service, primary markets and principal technology
B) Self-concept, managerial philosophy and public image
C) Concern for survival through growth, self-concept and primary markets
D) Economic goals, core competencies and primary and secondary customers

Question 38

The company's philosophy is sometimes also called the:

A) Company creed
B) Corporate profile
C) Corporate motto
D) Corporate symbol

Question 39

Growth means:

A) Change
B) Stability
C) Effectiveness
D) Efficiency

Question 40

Profitability is the ______ goal of a business organization.

A) Mainstay
B) Least important
C) Non economic
D) Subjective

Question 41

Which of the following statements about public image is FALSE?

A) Negative public image often prompts firms to reemphasize the beneficial aspects of their mission
B) The image the company seeks to project should be reflected in its mission
C) Firms always address the question of their public image in an intermittent fashion
D) Concern for public image is an important components of a firm's mission

Question 42

Much behavior in firms is _______ based.

A) competitively
B) organizationally
C) individually
D) community

Question 43

Mission statement expresses an answer to which of these questions?

A) How do we compete in this industry?
B) What business are we in?
C) Who are our competitors?
D) How do we meet the regulatory requirements?

Question 44

Which of these is one of Demming's well-known points on quality?

A) Create dependence on mass inspections to achieve quality
B) Award business on the measure of price tag
C) Breakdown barriers between departments
D) Corporate transformation should be the responsibility of top management

Question 45

"The customer is our top priority" is a

A) Mission statement
B) Concern for quality
C) Slogan
D) Vision statement

Question 46

All of these are Demming's well-known points on quality EXCEPT:

A) Drive out fear
B) Create slogans, exhortations and numerical targets
C) Institute a vigorous program of education and self-improvement
D) Create constancy of purpose

Question 47

The essence of the company self-concept is the idea that

A) The firm's public image is positive
B) The firm must know itself
C) The firm must know the industry
D) The firm's economic goals must be aligned with the industry's top competitor

Question 48

The image the company seeks to project is reflected in the firm's:

A) Profile
B) Tactics
C) Mission
D) Strategic options

Question 49

The idea that the firm must know itself is the essence of the company

A) Self-concept
B) Objective
C) Goal
D) Strategy

Question 50

Which two U.S.management experts fostered a worldwide emphasis on quality in manufacturing?

A) Bill Gates and Steve Jobs
B) Bill Hewlett and Gary Packard
C) Bill Gates and Warren Buffet
D) W. Edwards Demming and J. M. Juran

Question 51

Whereas the ______ expresses an answer to the question "What business are we in?" a company ____ is sometimes developed to express the aspirations of the executive leadership.

A) Mission statement; vision statement
B) Economic goals; self-concept
C) Vision statement; mission statement
D) Self-concept; economic goals

Question 52

_______ represents a statement that presents a firm's strategic intent designed to focus the energies and resources of the company on achieving a desirable future.

A) Mission statement
B) Agency theory
C) Adverse selection
D) Vision statement

Question 53

Which of these is NOT a newest trend in mission components?

A) Concern for suppliers and distributors
B) Sensitivity to customer wants
C) Concern for quality
D) Statements of company vision

Question 54

A major determinant of a firm's success is the extent to which it can relate functionally to the external environment.To accomplish this,the firm must have:

A) Infinite sources of capital for expansion
B) A realistic self-concept
C) Specific objectives and job descriptions
D) Community involvement

Question 55

Mission statements should reflect the ____ expectations.

A) public's
B) managers'
C) stockholders'
D) Board of Directors'

Question 56

Firms ____ address the question of their public image in an intermittent fashion.

A) seldom
B) always
C) frequently
D) unanimously

Question 57

_______ represents a statement that is sometimes developed to express the aspirations of the executive leadership.

A) Mission statement
B) Agency theory
C) Adverse selection
D) Vision statement

Question 58

Which of these is the newest trend in mission components?

A) Sensitivity to customer wants
B) Concern for suppliers and distributors
C) Inclusion of both positive and negative aspects of public image
D) Aligning the firm's self-concept to that of competitor's

Question 59

Three issues have become prominent in the strategic planning for organizations and are increasingly becoming integral parts in the development and revisions of mission statements.These are:

A) Self-concept, customers and markets
B) Customers, quality and vision statement
C) Markets, quality and concern for employees
D) Concern for employees, suppliers and customers

Question 60

Ace Tools Company performs an extensive evaluation of its competitive strengths and weaknesses.This effort is directed towards determining its

A) Vision
B) Economic goals
C) Public image
D) Self-concept

Question 61

The strategic managers at the highest level of the organization:

A) Review employee complaints
B) Declare the firm's sense of values
C) Are appointed
D) Prepare budgets

Question 62

Which of these conditions is also called "shirking?"

A) Moral hazard problems
B) Adverse selection
C) Self-concept
D) Concern for quality

Question 63

Whenever there is a separation of the owners (principals)and the managers (agents)of a firm,the potential exists for the wishes of the ____ to be ignored.

A) owners
B) managers
C) employees
D) customers

Question 64

Which of these conditions is also called "self-interest combined with a smile?"

A) Moral hazard problems
B) Adverse selection
C) Self-concept
D) Concern for quality

Question 65

In general,____ seek stock value maximization.

A) Employees
B) Hired-hand managers
C) Owners
D) Suppliers and distributors

Question 66

The cost of agency problems and the cost of actions taken to minimize them are called

A) Moral hazard problems
B) Adverse selection
C) Company creed
D) Agency costs

Question 67

Which group of strategic managers is responsible for overseeing the creation and accomplishment of the company mission?

A) Front-line supervisors
B) Middle-managers
C) Board of directors
D) Employees

Question 68

_______ is often a single sentence,designed to be memorable.

A) Mission statement
B) Agency theory
C) Adverse selection
D) Vision statement

Question 69

When owners have limited access to company information making executives free to pursue their own interests,it could lead to

A) Moral hazard problems
B) Adverse selection
C) Self-concept
D) Concern for quality

Question 70

When executives unrealistically assess acquisition targets' outlooks in order to increase the probability of increasing organizational size through their acquisition,this is an example of

A) Moral hazard problem
B) Adverse selection
C) Self-concept
D) Concern for quality

Question 71

_______ presents the firm's strategic intent.

A) Mission statement
B) Agency theory
C) Adverse selection
D) Vision statement

Question 72

The board of director's greatest impact on the behavior of a firm results from its

A) Industry experience
B) Dependence on the CEO
C) Determination of company mission
D) Mandate of company compliance with legal and ethical dictates

Question 73

A company's Board of Directors is elected by its

A) managers
B) stockholders
C) customers
D) employees

Question 74

_______ delegate authority to ______

A) owners; managers
B) managers; owners
C) managers; suppliers
D) customers; managers

Question 75

In overseeing the management of a firm,the board of directors operates as representatives of the

A) Governmental agencies
B) Firms stockholders
C) Firms employees
D) Top management

Question 76

A set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored is known as

A) Agency theory
B) Adverse selection principle
C) Moral hazard problem
D) Self concept

Question 77

When executives presell products at year-end to trigger their annual bonuses even though the deep discounts that they must offer will threaten the price stability of their products for the upcoming year,this is an example of

A) Moral hazard problem
B) Adverse selection
C) Self-concept
D) Concern for quality

Question 78

Agency problems arise when the interests of owners and managers

A) diverge
B) converge
C) are compatible
D) are similar

Question 79

The strategic decision makers in the firm are responsible for:

A) The firm's mission
B) Rewards
C) Plant efficiency
D) Daily operations

Question 80

Which of these is NOT a responsibility of the board of directors?

A) To establish and update the company mission
B) To mandate company compliance with legal and ethical dictates
C) To determine the amount and timing of the dividends paid to stockholders
D) To work under the guidance of the CEO