Question 1

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

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 2

_____ are best described as the ethical standards and norms that govern the behavior of individuals within a firm.

Accepted Answer

Organizational values are the ethical standards and norms that govern the behavior of individuals within a firm or organization.

Question 3

Which of the following is a customer-oriented vision?

Accepted Answer

A customer-oriented vision defines a business in terms of providing solutions to customer needs. The statement "to enable people throughout the globe to identify their capabilities" is a customer-oriented vision.

Question 4

The first step in the strategic management process is to:

Accepted Answer

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

Question 5

Organizational values help individuals make choices that are:

Accepted Answer

Organizational values help individuals make choices that are both ethical and effective in advancing the company's goals.

Question 6

True Help is a non-profit 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?

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 7

When do employees fail to adopt the organizational values of a firm?

Accepted Answer

Without commitment and involvement from top managers, any statement of values remains merely a public relations exercise. Employees tend to follow values practiced by strategic leaders. They observe the day-to-day decisions of top managers and quickly decide whether managers are merely paying lip service to the company's stated values.

Question 8

Strategic leadership pertains to the use of power and influence by _____ to direct the activities of others when pursuing an organization's goals.

Accepted Answer

Strategic leadership pertains to executives' use of power and influence to direct the activities of others when pursuing an organization's goals.

Question 9

Orange Synergy Inc.is a company that manufactures a variety of products that run on solar power.The company wants to ensure that solar technology replaces all forms of exhaustible energy sources in the near future.Which of the following statements will make an accurate vision for Orange Synergy?

Accepted Answer

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

Question 10

Visionary companies are able to outperform their competitors because:

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 11

As the CEO of a conglomerate, Juana Mark exhibited her strong commitment toward the company's core value that customer's well-being is more important than profit when she decided to liquidate the company's tobacco subsidiary.The tobacco brand sold by her company was a major revenue earner in lesser-developed nations.However, Juana believed that her company had to be responsible toward the society.In this scenario, Juana has demonstrated _____.

Accepted Answer

In this scenario, Juana has demonstrated strategic leadership. Executives whose vision and actions enable their organizations to achieve competitive advantage demonstrate strategic leadership-the behaviors and styles of executives that influence others to achieve the organization's vision and mission.

Question 12

Organizational values are the _____ that govern the behavior of individuals within a firm or organization.

Accepted Answer

Organizational values are the ethical standards and norms that govern the behavior of individuals within a firm or organization.

Question 13

A positive relationship between vision statements and firm performance is more likely to exist when:

Accepted Answer

A positive relationship between vision statements and firm performance is more likely to exist under certain circumstances: if the visions are customer-oriented; if internal stakeholders are invested in defining and revising the visions; and if organizational structures such as compensation systems are aligned with the firm's vision statement.

Question 14

Cuisine Pro Inc.is a company that manufactures consumer electronics like refrigerators, washing machines, and dishwashers.Which of the following best illustrates a product-oriented vision for Cuisine Pro?

Accepted Answer

"To be the pioneering manufacturer of home and kitchen appliances" best illustrates a product-oriented vision for Cuisine Pro Inc. A product-oriented vision defines a business in terms of a good or service provided.

Question 15

The Chief Executive Officer (CEO)of PepsiCo, Indra Nooyi, subscribes to a triple-bottom-line approach to competitive advantage-considering not only economic, but also social and environmental performance.Identify the phrase that represents the vision of PepsiCo as described by Ms.Nooyi.

Accepted Answer

Vision is a statement about what an organization ultimately wants to accomplish; it captures the company's aspiration. Chapter Case 2 describes Indra Nooyi, the CEO of PepsiCo, declaring PepsiCo's vision to be "Performance with a Purpose," as defined by three dimensions: human sustainability, environmental sustainability, and the whole person at work.

Question 16

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?

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 17

To be effective, firms need to:

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.

Question 18

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

Accepted Answer

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 landscape.

Question 19

Strategic commitments are actions that are:

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 is backed up by a powerful strategic commitment. Without such commitments, a firm's vision and mission statements are just words.

Question 20

The Chief Executive Officer (CEO)of PepsiCo, Indra Nooyi, subscribes to a triple-bottom-line approach to competitive advantage-considering not only economic, but also social and environmental performance.Based on this, which of the following is a mission of PepsiCo?

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. Mission describes what an organization does; it defines the means "by" which vision is accomplished. Chapter Case 2 described Indra Nooyi, the CEO of PepsiCo, declaring PepsiCo's vision to be "Performance with a Purpose." It intends do so by reducing the salt and fat in its "fun foods" such as Frito-Lay and Doritos and by including healthy choices such as Quaker Oats products and Tropicana fruit juices in its lineup.

Quiz 2: Strategic Leadership: Managing the Strategy Process