Ch. 2: Charting A Company’s Direction – Flashcards
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The strategy-making, strategy-executing process
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embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities.
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Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to
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decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.
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A company needs financial objectives
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because without adequate profitability and financial strength, the company's ultimate survival is jeopardized.
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Which of the following are common shortcomings of company vision statements?
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Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives
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When companies adopt the strategy-making and strategy execution process it requires they start by
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developing a strategic vision, mission and values
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Why should long-run objectives take precedence over short-run objectives?
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Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results.
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In a single-business company, the strategy-making hierarchy consists of
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business strategy, functional strategies, and operating strategies.
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Which of the following are characteristics of an effectively worded strategic vision statement?
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Graphic, directional, and focused
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Corporate strategy
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ensures consistency in strategic approach among businesses of a diversified, multibusiness corporation.
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Which one of the following is not a characteristic of an effectively worded strategic vision statement?
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Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support)
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Functional strategies
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add detail to the company's business-level strategy and specify what resources are needed to put the strategy into action.
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The primary roles/obligations of a company's board of directors in the strategy-making, strategy-executing process include
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overseeing the company's financial accounting and reporting practices, evaluating the caliber of senior executives' strategy-making and strategy-executing skills, and instituting a compensation plan that rewards top executives for results that serve shareholder interests.
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A company's 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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The strategic management process is shaped by
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external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.
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A company's strategic vision concerns
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a company's directional path and future product-customer-market-technology focus.
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Management's strategic vision for an organization
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charts a strategic course for the organization ("where we are going") and outlines the company's future product-customer-market-technology focus.
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Which of the following is not among the principal managerial tasks associated with managing the strategy execution process?
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Surveying employees on how employee job satisfaction can be improved
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Well-conceived visions are a.) distinctive b.) specific to a particular organization c.) free of generic, feel-good statements d.) not innocuous one-sentence statements e.) All of these
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e.) All of these
