Question 1

Richard Branson of the Virgin Group believes that the ________ of a person should not dictate the level of influence their ideas should be accorded.

Accepted Answer

Richard Branson, founder of the Virgin Group, whose core businesses include retail operations, hotels, communications, and an airline, is well known for creating a culture and an informal structure where anybody in the organization can be involved in generating and acting upon new business ideas. In an interview, he stated:"If someone has an idea, they can pick up the phone and talk to me. I can vote, 'Done, let us do it.' Or, better still, they can just go ahead and do it. They know that they are not going to get a mouthful from me if they make a mistake."

Question 2

Our goal is to help save 100,000 more lives each year.(Varian Medical Systems)This is an example of a

Accepted Answer

Strategic objectives are used to operationalize the mission statement. This is an example of a nonfinancial strategic objective.

Question 3

Vision statements are used to create a better understanding of the overall purpose and direction of the organization.Vision statements

Accepted Answer

A vision is a goal that is massively inspiring, overarching, and long term.

Question 4

Richard Branson,founder of the Virgin Group,empowers his companies through a(n)________ structure in which anyone can bring forth new ideas.

Accepted Answer

Richard Branson, founder of the Virgin Group, whose core businesses include retail operations, hotels, communications, and an airline, is well known for creating an informal structure and culture where anyone in the organization can be involved in generating and acting on new business ideas.

Question 5

To inculcate a strategic management perspective,managers must create management ________ to foster change.

Accepted Answer

To inculcate a strategic management perspective, managers must create management processes to foster change. This involves planning, leading, and holding people accountable.

Question 6

Successful organizations are effective in motivating people.Employees work best when

Accepted Answer

Challenging objectives can help to motivate and inspire employees to higher levels of commitment and effort. Much research has supported the notion that people work harder when they are striving toward specific goals instead of being asked simply to do their best.

Question 7

WellPoint Health Network states: WellPoint will redefine our industry through a new generation of consumer-friendly products that put individuals back in control of their future.This is an example of a

Accepted Answer

Effective visions provide a fundamental statement of the values, aspirations, and goals of an organization. Such visions go well beyond narrow financial objectives, of course, and strive to capture both the minds and hearts of employees.

Question 8

Local line leaders have ________ responsibility.

Accepted Answer

Local line leaders have significant profit-and-loss responsibility.

Question 9

Netflix inculcates a strategic management perspective by

Accepted Answer

To inculcate a strategic management perspective, managers must create management processes to foster change. This involves planning, leading, and holding people accountable. At Netflix, leading people is not based on a position in the hierarchy, nor an individual trait that is taught to people identified as high potentials. The expectation is that anyone can take initiative, make decisions, and influence others consistent with the firm's strategy. Everyone gets and receives feedback from team members, supervisors, managers, and customers. As part of the overall system that emphasizes transparency, there is the shared belief at Netflix that good results depend on people providing their insights and perspectives. Getting alignment, direction, and obtaining results the right way is essential. Those who fail to achieve this are asked to leave the firm.

Question 10

In contrast to the vision of an organization,its mission should

Accepted Answer

The mission statement of a company differs from its vision in that it encompasses both the purpose of the company as well as the basis of competition and competitive advantage.

Question 11

Fortune Brands states they will cut corporate overhead costs by $30 million a year.This is an example of a

Accepted Answer

Strategic objectives are used to operationalize the mission statement. This is an example of a financial strategic objective.

Question 12

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved,they do provide a fundamental statement of the ________ of an organization.

Accepted Answer

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of organization values, aspirations, and goals. Such visions go well beyond narrow financial objectives, of course, and strive to capture both the minds and hearts of employees.

Question 13

The vision and mission statements of a company set the overall direction of the organization.Strategic objectives serve what role?

Accepted Answer

Strategic objectives are used to operationalize the mission statement. That is, they help to provide guidance on how the organization can fulfill or move toward the higher goals in the goal hierarchy, that of the mission and vision.

Question 14

Which of the following is not an example of a financial strategic objective?

Accepted Answer

Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales (3M) is a nonfinancial strategic objective.

Question 15

In large organizations,conflicts can arise between functional areas.In order to resolve these conflicts,strategic objectives

Accepted Answer

There is always the potential for different parts of an organization to pursue their own goals rather than overall company goals. Although well intentioned, these may work at cross-purposes to the organization as a whole. Meaningful objectives thus help to resolve conflicts when they arise.

Question 16

The hierarchy of organizational goals is in the following order (least specific to most specific):

Accepted Answer

Organizations express priorities best through stated goals and objectives that form a hierarchy of goals, which includes its vision, mission, and strategic objectives. What visions may lack in specificity, they make up for in their ability to evoke powerful and compelling mental images. On the other hand, strategic objectives tend to be more specific and provide a more direct means of determining if the organization is moving toward broader, overall goals.

Question 17

Internal networks generate their power through the ________ of their ideas.

Accepted Answer

Internal networkers have little positional power and formal authority, but generate their power through the conviction and clarity of their ideas.

Question 18

For strategic management to be effective in achieving organizational goals,

Accepted Answer

Strategic management requires managers to take an integrative view of the organization and assess how all of the functional areas and activities fit together to help an organization achieve its goals and objectives. This cannot be accomplished if only the top managers in the organization take an integrative, strategic perspective of issues facing the firm and everyone else fends for themselves in their independent, isolated functional areas. Instead, people throughout the organization must strive toward overall goals.

Question 19

Effective vision statements include

Accepted Answer

A vision is a goal that is massively inspiring, overarching, and long-term. It represents a destination that is driven by and evokes passion. What visions may lack in specificity, they make up for in their ability to evoke powerful and compelling mental images.

Question 20

Executive leaders champion and guide ideas by

Accepted Answer

Executive leaders champion and guide ideas, create a learning infrastructure, and establish a domain for taking action.

Quiz 1: Strategic Management: Creating Competitive Advantages