Question 1

Which of the following summarizes the difference between a firm's vision and mission?
A) A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision.
B) A vision states the ethical values of a firm; a mission states the monetary goals of a firm.
C) A vision states how much a firm wants to earn; a mission states how these earnings will be accomplished.
D) A vision states the management values of a firm; a mission states the values of the other workers.

Accepted Answer

A vision defines what an organization wants to accomplish ultimately. A mission describes how the vision is accomplished.

Question 2

Which of the following statements is true of customer-oriented visions?
A) Customer-oriented visions identify how a customer need will be met.
B) Customer-oriented vision statements are not the same as listening to your customer.
C) Customer-oriented visions reduce a company's ability to adapt to a changing environment.
D) Customer-oriented visions define a business in terms of goods or services provided.

Accepted Answer

It is important not to confuse customer-oriented vision statements with listening to the customer. They are not the same thing. Customer-oriented visions identify a critical need but leave open the means of how to meet that need.

Question 3

Strategic commitments are actions that are
A) inexpensive, long-term oriented, and difficult to reverse.
B) inexpensive, short-term oriented, and easy to reverse.
C) costly, long-term oriented, and difficult to reverse.
D) costly, short-term oriented, and easy to reverse.

Accepted Answer

Strategic commitments are actions that are costly, long-term oriented, and difficult to reverse.

Question 4

Upper management at Softstep Inc., a manufacturer of insoles for shoes, wants to work on improving the product lines it already has without taking on other challenges at this time. Which of the following vision statements reflects that goal?
A) Softstep Inc. wants to adapt their insoles to the changing demands of consumers.
B) Softstep Inc. wants to always satisfy the consumers who purchase insoles.
C) Softstep Inc. wants to provide the best benefits for employees in the insole industry.
D) Softstep Inc. wants to be the best manufacturer of insoles in the industry.

Accepted Answer

Because it of its goals, Softstep would choose a product-oriented vision statement, which focuses employees on improving existing products and services without consideration of underlying customer or employee problems to be solved.

Question 5

Which of the following statements about product-oriented visions is true?
A) They tend to force managers to take a myopic view of the competitive landscape.
B) They allow companies to effectively adapt to changing environments.
C) They define a business in terms of providing solutions to customers.
D) They allow firms to set goals that focus primarily on filling the organization's needs.

Accepted Answer

A product-oriented vision defines a business in terms of a good or service provided. Product-oriented visions tend to force managers to take a myopic view of the competitive landscape.

Question 6

Visionary companies are able to outperform their competitors because
A) their vision statements are more product-oriented.
B) they provide more aspirational visions.
C) their visions are primarily financial.
D) they isolate internal stakeholders in defining their visions.

Accepted Answer

An inspiring vision helps employees find meaning in their work, beyond monetary rewards. It allows employees to experience a greater sense of purpose and taps into people's intrinsic motivations to make the world a better place through their work activities. Visionary companies provide more aspirational ideas that are not exclusively financial.

Question 7

Fuentes Electronics is a major manufacturer of microwave ovens. Which of the following statements will best inspire the organization with a shared vision for Fuentes Electronics?
A) At Fuentes Electronics, employees know that they will make a competitive wage.
B) At Fuentes Electronics, employees at all levels are motivated to make the best microwave ovens on the market.
C) At Fuentes Electronics, employees want to create a cheaper microwave oven than our closest competitor does.
D) At Fuentes Electronics, employees can trust our managers to steer company.

Accepted Answer

A strong vision pervades the organization with a sense of winning and motivates employees at all levels to aim for the same target. Therefore, all employees at Fuentes Electronics being motivated to make the best microwaves ovens on the market reflects a strong vision. Also, a vision captures an organization's aspiration and spells out what it ultimately wants to accomplish. In addition, it helps employees find meaning in their work.

Question 8

Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds?
A) We make products that run on wind energy.
B) All nations around the globe should be able to provide energy produced by sustainable sources.
C) The company aims to make working fun and pleasurable for its employees.
D) We provide energy-efficient sources and services by investing in research and innovation.

Accepted Answer

"In the future, all nations around the globe should have access to a sustainable energy source." will make an appropriate vision statement for Free Winds Inc. An effective vision talks about what an organization ultimately wants to accomplish; it captures the company's aspiration.

Question 9

Which of the following is a customer-oriented vision?
A) to be the most progressive insurance company
B) to be the best automobile company in the world
C) to enable businesses to improve their employee communications
D) to manufacture innovative products through continuous learning

Accepted Answer

A customer-oriented vision defines a business in terms of providing solutions to customer needs. The statement "to enable businesses to improve their employee communications" is a customer-oriented vision.

Question 10

A customer-oriented vision statement focuses employees to think about how best to
A) make a product easier to use.
B) increase their efficiency to benefit consumers.
C) improve a popular product.
D) solve a problem for a consumer.

Accepted Answer

A customer-oriented vision statement focuses employees to think about how best to solve a problem for a consumer.

Question 11

The Founder of Teach for America, Wendy Kopp, wants to make teaching an attractive option for promising young professionals. Identify the phrase that represents the vision she developed for Teach for America.
A) to improve standardized test scores across the board
B) to cut wasteful spending from education budgets
C) to encourage parents to take a more active role in their children's education
D) to give all children in the United States the opportunity to attain an excellent education.

Accepted Answer

A vision is a statement about what an organization ultimately wants to accomplish; it captures the company's aspiration. Wendy Kopp, founder of Teach for America, declared the organization's vision to be "One day, all children in this nation will have the opportunity to attain an excellent education." By developing this vision, she helped to attract promising college graduates and get them interested in teaching. Klopp's vision attempts to inspire the best and brightest young professionals to contribute to society by becoming teachers.

Question 12

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?
A) Customer-oriented visions tend to have a more short-range view of changing environments.
B) Customer-oriented visions tend to have a more myopic view of changing environments.
C) Customer-oriented visions tend to be more flexible when adapting to changing environments.
D) Customer-oriented visions tend to be more stable when dealing with changing environments.

Accepted Answer

Customer-oriented visions tend to be more flexible when adapting to changing environments.

Question 13

Soil and Sod Gardening Supplies has a vision of helping every American learn how to grow their own food. Its management team recently unveiled the mission statement "A garden at every home." What is wrong with this mission statement?
A) It does not indicate how the company will accomplish its goals.
B) It does not include a stretch goal.
C) It is not inspirational and motivating for employees.
D) It is too specific.

Accepted Answer

A mission describes what an organization does; it defines how the vision is accomplished and is often introduced with the preposition by. Soil and Sod's mission statement does not indicate how the company will achieve its goal of helping to place a garden at every home, and is thus more suited as a vision statement.

Question 14

True Help is a nonprofit organization that works toward rehabilitating the homeless. The credo of the organization is "help us help you." For an organization like True Help, which of the following statements would make an appropriate mission?
A) Help us help you find a home.
B) One day, everyone in this nation will have a home to protect themselves.
C) We help the homeless gain and sustain financial independence by providing employment opportunities.
D) Our mission is to turn this not-for-profit organization into a for-profit organization so that the stakeholders benefit.

Accepted Answer

Building on the vision, organizations establish a mission, which describes what an organization actually does-that is, the products and services it plans to provide, and the markets in which it will compete. "We help the homeless gain and sustain financial independence by providing employment opportunities" would make an appropriate mission for True Help.

Question 15

The Founder of Teach for America, Wendy Kopp, established a mission by building on her vision, which is "One day, all children in this nation will have the opportunity to attain an excellent education." Considering this, how did Klopp implement the mission of Teach for America?
A) by enlisting talented young professionals as teachers
B) by offering funds to increase the salaries of low-income teachers
C) by starting her own line of private schools
D) by starting a fundraising campaign to improve school infrastructure

Accepted Answer

Building on the vision, organizations establish a mission, which describes what an organization actually does-that is, the products and services it plans to provide, and the markets in which it will compete. A mission defines the means "by" which vision is accomplished. Wendy Kopp, the founder of Teach for America, built on her vision by enlisting, developing, and mobilizing as many as possible of our nation's most promising future leaders to grow and strengthen the movement for educational equity and excellence.

Question 16

The first step to gain and sustain a competitive advantage is to
A) define a firm's vision, mission, and values.
B) understand the strategies of the competitors.
C) put the guiding policies of a firm into practice.
D) develop functional and business-level strategies.

Accepted Answer

The first step to gain and sustain a competitive advantage is to define a firm's vision, mission, and values. With these principles in place, strategic leaders consider how to formulate strategy across different levels: corporate, business, and functional.

Question 17

Bubble Buddy is a company that manufactures hot tubs. Which of the following best illustrates a product-oriented vision for Bubble Buddy?
A) to make people's lives simple and easy
B) to demonstrate to customers the health benefits of hot tubs
C) to help people improve the value of their homes
D) to be the pioneering manufacturer of hot tubs

Accepted Answer

"To be the pioneering manufacturer of hot tubs" best illustrates a product-oriented vision for Bubble Buddy. A product-oriented vision defines a business in terms of a good or service provided.

Question 18

Pioneer Pharma Inc. and GH Medicines Corp. are two competing firms in the pharmaceutical industry. While Pioneer Pharma Inc.'s vision is "to be a preeminent drug manufacturer in the industry," GH Medicines Corp.'s vision is "to make good health a reality for everyone around the world." Which of the following is an implication of these different visions?
A) GH Medicines' vision is more product-oriented than the vision of Pioneer Pharma.
B) Pioneer Pharma is more likely to have a positive relationship between its vision and firm performance than GH Medicines.
C) Pioneer Pharma's vision is more long-term and futuristic than GH Medicines' vision.
D) GH Medicines will be more flexible than Pioneer Pharma when adapting to changing environments.

Accepted Answer

Companies that have customer-oriented visions tend to be more flexible when adapting to changing environments. In contrast, companies that define themselves based on product-oriented statements tend to be less flexible and thus more likely to fail.

Question 19

Strategic commitments are actions that are
A) inexpensive.
B) long-term oriented.
C) easy to reverse.
D) easy to imitate.

Accepted Answer

To be effective, firms need to back up their visions and missions with strategic commitments, actions that are costly, long-term-oriented, and difficult to reverse. The company's vision needs to be backed up by a powerful strategic commitment. Without such commitments, a firm's vision and mission statements are just words.

Question 20

To be effective, firms need to
A) back up their visions with strategic commitments that are costly and difficult to reverse.
B) increase their strategic flexibility by developing product-oriented vision statements.
C) isolate top managers from the organizational values.
D) pursue visions that are exclusively financial and not aspirational.

Accepted Answer

To be effective, firms need to back up their visions and missions with strategic commitments, actions that are costly, long-term-oriented, and difficult to reverse.

Quiz 1: What Is Strategy

Which of the following summarizes the difference between a firm's vision and mission?

Which of the following statements is true of customer-oriented visions?

Strategic commitments are actions that are

Upper management at Softstep Inc., a manufacturer of insoles for shoes, wants to work on improving the product lines it already has without taking on other challenges at this time. Which of the following vision statements reflects that goal?

Which of the following statements about product-oriented visions is true?

Visionary companies are able to outperform their competitors because

Fuentes Electronics is a major manufacturer of microwave ovens. Which of the following statements will best inspire the organization with a shared vision for Fuentes Electronics?

Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds?

Which of the following is a customer-oriented vision?

A customer-oriented vision statement focuses employees to think about how best to

The Founder of Teach for America, Wendy Kopp, wants to make teaching an attractive option for promising young professionals. Identify the phrase that represents the vision she developed for Teach for America.

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Soil and Sod Gardening Supplies has a vision of helping every American learn how to grow their own food. Its management team recently unveiled the mission statement "A garden at every home." What is wrong with this mission statement?

True Help is a nonprofit organization that works toward rehabilitating the homeless. The credo of the organization is "help us help you." For an organization like True Help, which of the following statements would make an appropriate mission?

The Founder of Teach for America, Wendy Kopp, established a mission by building on her vision, which is "One day, all children in this nation will have the opportunity to attain an excellent education." Considering this, how did Klopp implement the mission of Teach for America?

The first step to gain and sustain a competitive advantage is to

Bubble Buddy is a company that manufactures hot tubs. Which of the following best illustrates a product-oriented vision for Bubble Buddy?

Strategic commitments are actions that are

To be effective, firms need to