Question 1

For Google, what is organizing the world's information and making it universally accessible and useful?

Accepted Answer

Organizing the world's information and making it universally accessible and useful is Google's mission statement.

Question 2

What is an overall explanation of why an organization exists and where it is trying to head?

Accepted Answer

The overall explanation of why an organization exists and where it is trying to head is called the vision. This encompasses the organization's purpose, values, and aspirations for the future. The other choices (tactical plan, prime directive, and corporate charter) are more specific documents or strategies within an organization, but do not address the overarching purpose and direction of the organization as a whole.

Question 3

What is a vision for a company?

Accepted Answer

A vision for a company is an explanation of why the company exists and where it wants to go. It outlines the company's purpose, values, and aspirations for the future. It is often used as a guiding principle for decision-making and strategy development.

Question 4

Which of the following is NOT one of five stages of industry evolution?

Accepted Answer

The five stages of industry evolution are introduction, growth, maturity, decline, and death. Peak is not included as a separate stage.

Question 5

"To enrich the lives of everyone in WestJet's world by providing safe, friendly, affordable air travel" is best described as which of the following?

Accepted Answer

This statement outlines the purpose and values of WestJet and its commitment to safe, friendly, and affordable air travel. It is a mission statement that defines the company's overall goal and purpose. A vision statement would focus on aspirational long-term goals, while a goal is a specific target that the company aims to achieve. An objective is a measurable step towards reaching a goal.

Question 6

"Make the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis." This statement by Yvon Chouinard, founder of Patagonia, can be best described as which of the following?

Accepted Answer

This statement is a clear and concise representation of Patagonia's purpose and values, making it a mission statement. It outlines their commitment to creating high-quality products, being environmentally conscious, and using their business to make a positive impact on the world.

Question 7

When a company makes use of SWOT analysis, what is one of its objectives?

Accepted Answer

The main objective of SWOT analysis is to identify the organization's strengths and weaknesses (internal factors) and opportunities and threats (external factors). This helps the company to focus on improving its weaknesses, leveraging its strengths, and addressing potential threats and opportunities in the market. Option A is incorrect as identifying best employees is not the objective of SWOT analysis. Option B is incorrect as setting short-term performance standards is a separate task that may be informed by SWOT analysis. Option C is incorrect as financial decisions such as issuing stocks or bonds are not directly related to SWOT analysis.

Question 8

Gina Raiter, the president and CEO of AutoMotion Auto Service Centres, has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company. What will they create?

Accepted Answer

A mission statement outlines the fundamental purposes and goals of a company, which is exactly what Gina Raiter is asking her managers and employees to create. A payoff matrix is a tool used in decision-making, a tactical plan is a detailed plan of an organization's strategies and actions to achieve a goal, and an organization chart shows the structure of a company's hierarchy. None of these options fit the context of Gina Raiter's request.

Question 9

Monica has just been hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide which of the following for Misty Mount?

Accepted Answer

A vision provides a clear sense of direction and purpose for the organization, which seems to be lacking in Misty Mount Corporation. This will help to align the employees and ensure they are working toward a common goal. Contingency plans are important but not the most pressing issue mentioned in the scenario. An objective function is a mathematical concept and not relevant in this context. A corporate logo is important for branding but it does not address the issue of providing a sense of purpose or values for the employees.

Question 10

What is Starbucks' sustainable competitive advantage?

Accepted Answer

Starbucks' sustainable competitive advantage is the experience the company creates for its customers. They have built a loyal following of customers who are willing to pay a premium for the Starbucks experience, which includes high-quality coffee, inviting atmosphere, friendly customer service, and a sense of community. This experience cannot be replicated by competitors easily. While the other choices (A, C, and D) are also important for the success of Starbucks, they do not provide the same level of sustainable competitive advantage as the customer experience.

Question 11

Which of the following defines the organization's purpose, values, and core goals, providing the framework for all other plans?

Accepted Answer

The organization's purpose, values, and core goals are typically outlined in its mission statement, which provides a guiding framework for all other plans and decisions. A position statement is a public declaration of the organization's stance on a particular issue, while a strategic plan is a broader document that outlines the organization's long-term goals and objectives. A tactical plan is a more detailed, short-term plan that outlines specific actions and challenges to achieve those goals.

Question 12

AlumiPlate's SWOT analysis revealed that potential competitors would find it difficult to begin operations in this specialized metal-coating industry. Using the terminology of SWOT, this is an example of which of the following?

Accepted Answer

This is an example of a strength because it highlights an internal capability or advantage that AlumiPlate has, making it difficult for competitors to enter the market.

Question 13

Customers who visit any Good As New Appliance Repair Centre see a framed statement prominently displayed near the front door. The plaque describes the company's fundamental purposes. In part, it states that "All Good As New Centres operate under the belief that every customer deserves good quality parts, fast and dependable service, and a fair price." The words on this plaque probably reflect which of the following of Good As New?

Accepted Answer

The statement on the plaque describes the fundamental purposes of the company, which aligns with the definition of a mission statement. A strategic plan involves specific steps and goals for achieving business objectives, while a corporate agenda refers to the specific issues and topics that a company aims to address. A corporate charter outlines the legal structure and purpose of a company, which is not reflected in the statement on the plaque.

Question 14

What is Starbucks' distinctive competence?

Accepted Answer

Starbucks' distinctive competence is making great coffee into an experience by providing a cozy atmosphere, personalized service, and high-quality products.

Question 15

What is conducted to understand whether the entrepreneur's or CEO's vision is logical and feasible and whether the strategies used to pursue the vision will lead to success?

Accepted Answer

The answer of What is conducted to understand whether the...

Question 16

What is Starbucks' core competency?

Accepted Answer

The answer of What is Starbucks' core competency?
...

Question 17

In a company in which an effective vision has been provided, which of the following is the most likely result?

Accepted Answer

An effective vision provides employees with a clear sense of purpose and a common set of values. It does not eliminate the need for tactical planning or render economic and competitive environments predictable. Goals and objectives are still needed to achieve the vision.

Question 18

Employees often work with managers to develop which of the following that outlines the fundamental purposes of their organization?

Accepted Answer

Mission statements outline the fundamental purposes of an organization and guide decision making. employees often work with managers to develop mission statements. Option A (organization chart) illustrates the hierarchy of positions within an organization, Option B (value statement) defines an organization's guiding principles and beliefs, and Option D (PERT diagram) is a project management tool used to schedule and coordinate tasks within a project.

Question 19

Which topics about an organization should a meaningful mission statement address?

Accepted Answer

A meaningful mission statement should address the self-concept and company philosophy of the organization, which includes its values, beliefs, and purpose. The other options listed are not relevant to the content of a mission statement.

Question 20

Which of the following is NOT one of Porter's five forces?

Accepted Answer

The answer of Which of the following is NOT one...

Quiz 7: Understanding the Business