Question 1

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker faced very long odds in getting a license from Bell Labs for using their transistor.The end result of the effort to get the license was what?
A) The Japanese firm got the license but was not able to produce the desired radio.
B) The Japanese firm got the license and used it successfully in their rice cooker.
C) The Japanese firm introduced the first pocket-sized radio, but the market was not ready for it and sales were weak.
D) The Japanese firm introduced the world's first pocket-sized radio to great market success.

Accepted Answer

The TR-55 was introduced using the Bell Labs transistor in 1957. Sony sold 1.5 million units and became a leader in consumer electronics.

Question 2

A mission describes ____________.
A) what a business will do in the future
B) what a business actually does and why it does it
C) what the norms are of the business
D) what the business has done historically

Accepted Answer

A mission describes what the organization does and why it does it.

Question 3

Many of the early U.S.railroad companies defined themselves as being in the railroad business instead of being in the transportation needs business.These companies used ______________.
A) resource-based missions
B) customer-oriented missions
C) product-oriented missions
D) responsive missions

Accepted Answer

Product-oriented missions define a business in terms of a good or service provided.

Question 4

Better World Books (BWB)wanted to fight illiteracy by donating 50 percent of its revenues,as stated in its mission.The fact that it had to later reduce the donation amount to between 7-10 percent is a reflection of the fact that:
A) The declared mission of an organization can sometimes negatively impact its financial performance.
B) The declared mission of an organization is often too complicated to execute.
C) The declared mission of an organization needs to be product-oriented.
D) The declared mission of an organization should not include financial measurements.

Accepted Answer

The original mission was implemented in such a way that it hurt the long-term viability of businesses, particularly of startup and relatively small firms.

Question 5

Staking out a desired leadership position that far exceeds a company's current resources and capabilities is called what?
A) Strategic planning
B) Strategic management
C) Strategic intent
D) Strategic process

Accepted Answer

This is the definition of strategic intent. It can be a small component of the strategy management process, but that term is too general for this more specific description.

Question 6

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker became the highly successful firm Sony.However,more recently Sony has not performed very well.To what can this be attributed?
A) Large competitive pressures in their strategic group has cost Sony much market share and thus revenue opportunity.
B) A failure to set new stretch goals after accomplishing many of their older ones.
C) The strategic planning process was highly flawed.
D) The recent economic downturn was too much for the firm to adjust to.

Accepted Answer

Though several factors have affected Sony, such as the economic downturn, other competitors like Apple have thrived even through the downturn.

Question 7

Which one of the following best describes a product-oriented mission?
A) It defines the means of how a customer need will be met.
B) It is the best type of mission for most firms to have.
C) It has a higher likelihood of remaining relevant in the long-term.
D) It defines a business in terms of a good or service provided.

Accepted Answer

Product-oriented missions define a business in terms of a good or service provided.

Question 8

Visionary companies differ from their competition in that:
A) Employees in visionary organizations find meaning in their work and are motivated.
B) A visionary company focuses on scenario planning and future competitive threats.
C) In a visionary company it is the CEO's managerial style that gives the company its emergent strategy.
D) Visionary companies typically emphasize measuring financial performance.

Accepted Answer

Teach For America is one example of an organization that attracts passionate workers with its mission and values.

Question 9

Customer-oriented missions are defined as __________________.
A) providing solutions to employee needs
B) providing solutions to customer needs
C) providing solutions to executive needs
D) providing solutions to stockholder needs

Accepted Answer

It defines the business in terms of providing solutions to customer needs.

Question 10

When Disney says its mission is "to make people happy," they translate that mission into which of the following actions as discussed in the text?
A) Employees are screened for their acting ability at all levels of the organization.
B) They bought Pixar to make more movies that audiences would enjoy.
C) They adjust their ticket prices seasonally to meet customer demand.
D) Employees are cast members to help the customers enjoy the "show" throughout the park.

Accepted Answer

Disney embeds a metaphor of a "show" throughout their theme parks, thus all employees are expected to help the customers (or audience) have a good time.

Question 11

It is important to separate having a customer-oriented mission from listening to your customers.If Henry Ford had merely listened to his customers of 100 years ago what would he have done?
A) He would have teamed up with the Wright brothers in making bicycles.
B) He would have built more comfortable passenger cars for trains.
C) He would have built a better horse and buggy.
D) He would have invested in steam ships for riding the Ohio and Mississippi rivers.

Accepted Answer

Current customers do not always know what the possibilities are for new products and services to meet their needs.

Question 12

Which of the following is NOT true concerning a customer-oriented mission?
A) It defines the means of how a customer need will be met.
B) It has more flexibility than a product-oriented mission.
C) It has a higher likelihood of remaining relevant in the long-term.
D) Organizations that have customer-oriented missions are more likely to be successful.

Accepted Answer

A mission does not look at the methods to accomplish the customer need.

Question 13

A business statement defined in terms of a good or service provided is called a _______________.
A) customized mission
B) service-centered mission
C) product-oriented mission
D) customer-centered mission

Accepted Answer

Product-oriented missions define a business in terms of a good or service provided.

Question 14

Mission statements can also be used to help refocus a firm on its main line of business.One example of this given in the text is:
A) Ben & Jerry's expanding beyond ice cream into other food categories.
B) Disney selling off its theme parks to focus on movies.
C) Shell Canada selling off its chemicals and forestry businesses.
D) Ford Motors moving into hybrid cars and SUVs.

Accepted Answer

Shell Canada recognized its strength as a low-cost producer of oil and gas and shifted out of its other businesses to focus there.

Question 15

Strategic intent is considered to be forward-looking and future-oriented.It is most useful in situations where _______________.
A) large firms are close competitors with others
B) all the firms competing in a market are very similar
C) small firms are wanting to compete against bigger, more established firms
D) the dominant plan from a scenario planning process is identified

Accepted Answer

Strategic intent is most widely used when there is a large gap between competitors, and the ones not doing well desire to surpass better-established firms.

Question 16

It has been found that visionary companies outperform other companies by more than 1,400 percent.One reason for this is:
A) Their stated missions encapsulate their aspirations.
B) Their employees are better trained.
C) They are focused on profits.
D) They are typically start-ups and are thus more highly motivated.

Accepted Answer

For visionary companies, superior financial performance is a byproduct of living up to their missions.

Question 17

Mission statements have been shown to be associated with firm performance.In many cases,organizations with sound missions are more successful; however,what is far less clear is ________.
A) that customer-oriented missions provide more flexibility than product-oriented ones
B) whether this mission actually causes a firm to have a competitive advantage
C) whether missions can be inspirational for both employees and customers
D) whether the mission should describe what the firm actually does

Accepted Answer

There is empirical research that missions can be associated with good or poor performance. However, it is not clear that a mission statement will lead to (or causes) the resulting performance.

Question 18

If the early U.S.railroad companies defined themselves as being in the transportation needs business,which is more customer-oriented,they might have successfully moved into what product/service before any other firm?
A) Commercial aviation (such as Delta and United)
B) Modern shipping and logistics (such as FedEx and UPS)
C) International cargo containers on large ocean ships
D) Fuel efficient automobiles (such as Toyota and Ford)

Accepted Answer

The railroads were in a great position to move into delivery of their cargo from the rail station to where the end customer needed it well before Federal Express existed.

Question 19

When an organization briefly describes what its business is about and why it does it,they have articulated a _______________.
A) Values statement
B) Mission statement
C) Strategic plan
D) Competitive advantage

Accepted Answer

A mission statement describes what the organization does and why it does it.

Question 20

Chinese companies such as BYD and Lenovo made global leadership their mission.One of the tools they used to accomplish this position is what?
A) Stretch goals
B) Efficient goals
C) Reach goals
D) Enhanced goals

Accepted Answer

Stretch goals are an important tool in motivating organizations to accomplish great things.

Quiz 2: The Strategic Management Process

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker faced very long odds in getting a license from Bell Labs for using their transistor.The end result of the effort to get the license was what?

A mission describes ____________.

Many of the early U.S.railroad companies defined themselves as being in the railroad business instead of being in the transportation needs business.These companies used ______________.

Better World Books (BWB) wanted to fight illiteracy by donating 50 percent of its revenues,as stated in its mission.The fact that it had to later reduce the donation amount to between 7-10 percent is a reflection of the fact that:

Staking out a desired leadership position that far exceeds a company's current resources and capabilities is called what?

As noted in Strategy Highlight 2.1,the small Japanese company with the electric rice cooker became the highly successful firm Sony.However,more recently Sony has not performed very well.To what can this be attributed?

Which one of the following best describes a product-oriented mission?

Visionary companies differ from their competition in that:

Customer-oriented missions are defined as __________________.

When Disney says its mission is "to make people happy," they translate that mission into which of the following actions as discussed in the text?

It is important to separate having a customer-oriented mission from listening to your customers.If Henry Ford had merely listened to his customers of 100 years ago what would he have done?

Which of the following is NOT true concerning a customer-oriented mission?

A business statement defined in terms of a good or service provided is called a _______________.

Mission statements can also be used to help refocus a firm on its main line of business.One example of this given in the text is:

Strategic intent is considered to be forward-looking and future-oriented.It is most useful in situations where _______________.

It has been found that visionary companies outperform other companies by more than 1,400 percent.One reason for this is:

Mission statements have been shown to be associated with firm performance.In many cases,organizations with sound missions are more successful; however,what is far less clear is ________.

If the early U.S.railroad companies defined themselves as being in the transportation needs business,which is more customer-oriented,they might have successfully moved into what product/service before any other firm?

When an organization briefly describes what its business is about and why it does it,they have articulated a _______________.

Chinese companies such as BYD and Lenovo made global leadership their mission.One of the tools they used to accomplish this position is what?