Q2 – Flashcards
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The difference between the concept of a company mission statement and the concept of a strategic vision is that
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a mission statement typically concerns a company's present business scope and purpose ("who we are, what we do, and why we are here") whereas the principal concern of a strategic vision is with the company's long term direction and "where we are going".
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Which one of the following statements about the characteristics of well-stated objectives is false?
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Well-stated objectives should contain sufficient wiggle room to allow for the occurence of unexpected circumstances that block achievement of the objective.
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Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned?
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Supervising enforcement of high ethical standards and stepping in to take the lead role in promptly revising and improving the company's strategy whenever the company's financial performance is unsatisfactory
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A company's strategic vision
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delineates management's aspirations for the business, providing a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense for the company
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The task of effectively communicating the strategic vision to organization members is made easier by
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capturing the essence of the vision in a catchy or easily remembered slogan and then using the slogan repeatedly as a reminder of "where we are going and why."
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Business strategy, as distinct from corporate strategy, concerns
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the actions and approaches being employed to produce successful performance in one specific line of business.
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One of the critical components of the strategy-making, strategy-executing process is for company managers to
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monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to decide whether to continue or change the company's strategic vision and mission objectives, strategy and or strategy objectives
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A company's overall strategy
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is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.
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Which of the following are characteristics of an effectively-worded strategic vision statement?
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Feasible, memorable, makes good business sense, and has some wiggle room
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A company with strategic intent is one that
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concentrates the full force of its resources and competitive actions on achieving an ambitious strategic outcome.
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A company's strategic plan
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lays out its future direction, its performance targets, and its strategy to achieve them--in other words, a strategic vision + a set of objectives + a strategy = a strategic plan.
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Masterful strategies come from
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doing things differently from competitors where it counts--out-innovating them, being more efficient, adapting faster--rather than running with the herd.
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Which of the following is the best example of a well-stated financial objective?
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Increase total profits by 10% annually
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Which one of the following questions is not something company managers should consider in thinking strategically about their company's directional path and developing a strategic vision?
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What business approaches and operating practices should we consider in trying to implement and execute our business model?
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Managerial jobs with strategy-making responsibility
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typically extend throughout the managerial ranks and exist in every part of a company--its business units, operating divisions, functional departments, manufacturing plants, and sales districts); indeed, the more that a company's operations cut across different products, industries, and geographical areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular organizational units.
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Which of the following are key tasks in the strategy-making, strategy-executing process?
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Developing a strategic vision, mission, and core values; setting objectives; and crafting a strategy to achieve the objectives and the company vision
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The primary role of a functional strategy is to
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flesh out the details of a company's business strategy; a functional strategy adds power and support to the overall business strategy by specifying what actions, approaches, and practices will be employed in managing a particular functional department.
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Setting and achieving strategic objectives is critically important because
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stronger market standing and greater competitive vitality--especially when accompanied by competitive advantage--is what enables and empowers a company to improve its financial performance.
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Perhaps the most reliable way for a company to improve its financial performance over time is to
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recognize that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a company's competitiveness and strength in the marketplace puts it in better position to improve its future financial performance.
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A company's values, or core values, concern
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the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission.
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A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because
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financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas the best and most reliable leading indicators of a company's future financial performance and business prospects are strategic outcomes that indicate whether the company's market position and competitiveness are stronger or weaker.
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The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include
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overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making and strategy-executing skills.
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Developing a strategic vision for a company entails
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prescribing a strategic direction for the company to pursue in developing and strengthening its business--a strategic vision lays out the company's strategic course in preparing for the future.
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Operating strategies concern
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the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geographic units) and strategically significant operating tasks (quality control, advertising campaigns, the management of specific brands, supply chain-related activities, and Web site sales and operations).
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In a diversified or multi-business company, the strategy-making hierarchy (as shown in Figure 2-2) consists of
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corporate strategy, a business strategy for each business the company has diversified into, and functional and operating strategies within each business.
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Which of the following is the best example of a well-stated strategic objective?
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achieve market share higher than the industry average????
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A set of "stretch" financial and strategic objectives
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helps a company avoid ho-hum results.
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A company needs financial objectives
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because without adequate profitability and financial strength, a company's pursuit of its strategic vision, as well as its long-term health and ultimate survival is jeopardized.
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Effectively communicating the strategic vision to company personnel is important because
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if company personnel do not understand or accept the rationale for heading in the direction top management has charted, they are unlikely to mobilize behind managerial efforts to get the organization moving in the intended direction.
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A company's strategic vision concerns
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the things the company intends to do to please its customers and achieve a competitive advantage.
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The managerial purpose of setting objectives is to
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convert the strategic vision and mission into specific performance targets--the results and outcomes management wants to achieve; objectives function as yardsticks for measuring how well the company is doing.
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Strategy-making is
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more of a collaborative group effort that involves, to some degree, all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-ranking executives.
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A company's strategy is at full power
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only when its many pieces are united, cohesive, and mutually reinforcing, fitting together like a jigsaw puzzle.
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Which one of the following approaches to objective-setting should definitely be avoided?
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Setting unspecific targets like maximize profits, reduce costs, become more efficient or increase revenues
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Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another?
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Do we have a better business model than key rivals?
