Question 1

Mission statements should not be viewed merely as a 'wordsmithing' exercise

Accepted Answer

Mission statements are developed to affect action

Question 2

Deviant behaviour is more likely when objectives are negotiated and agreed upon

Accepted Answer

No, much less likely since people have agreed to them

Question 3

Managers should pro-actively manage their firm's mission statements

Accepted Answer

Definitely, too often they are reviewed too late

Question 4

A sense of the future of the firm is important in the strategic management process

Accepted Answer

It is inconceivable that a firm can be managed into the future without such a sense

Question 5

Imagining the future is a crucial first step in creating it

Accepted Answer

Imagining is the creative first step in creating a future. The future is not a continuation of the present

Question 6

Visions can only be developed by the CEOs and their cohorts

Accepted Answer

Visions can be developed for components of the firm, not just the firm as a whole

Question 7

Vision statements may be counter-productive

Accepted Answer

Particularly if they are not widely shared and endorsed

Question 8

Diversity of ideas impedes development of a vision

Accepted Answer

On the contrary, exploring a diversity of ideas is likely to improve the final result

Question 9

Values diversity may pose business problems

Accepted Answer

Particularly an issue when working cross-culturally

Question 10

Objectives should vary across the different businesses in a corporate portfolio

Accepted Answer

The competitive circumstances of a firm's various businesses are likely to vary considerably and therefore so should their objectives

Question 11

Adjusting objectives is always wrong

Accepted Answer

As circumstances change, objectives should be reviewed, especially if the changed circumstances were unforeseen

Question 12

Few companies set social responsibility objectives

Accepted Answer

Over the past few years, more and more firms have set such objectives

Question 13

Major operating drivers of shareholder value are revenue growth and operating margin

Accepted Answer

These are the main drivers of economic profit, which over the longer term should create value for shareholders

Question 14

Setting objectives requires a delicate compromise

Accepted Answer

A business cannot simultaneously maximize all performance objectives, and appropriate trade-offs (compromises) are essential

Question 15

Measurement redundancy is wasteful

Accepted Answer

No, it helps avoid management manipulation

Question 16

Vision, values, mission and objectives are inherently in conflict

Accepted Answer

The strategic management challenge is to ensure that they are mutually supportive

Question 17

A mission definition necessarily reveals an organization's culture

Accepted Answer

It may reveal something of the culture, but does not necessarily do so

Question 18

Accomplishing a significant change in mission is difficult for most companies

Accepted Answer

The experience of most firms who have attempted a change in mission suggests that this is true

Question 19

Vision and values should guide and constrain the firm's growth

Accepted Answer

That is their purpose

Question 20

Mission definitions should not be too complex

Accepted Answer

If they are too complex, mission statements are too difficult to communicate which means they cannot be effective

Quiz 6: Creating Future Direction