Ch. 2: Charting A Company’s Direction

question

The strategy-making, strategy-executing process
answer

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.
question

Management is obligated to monitor new external developments, evaluate the company’s progress, and make corrective adjustments in order to
answer

decide whether to continue or change the company’s strategic vision, objectives, strategy and/or strategy execution methods.
question

A company needs financial objectives
answer

because without adequate profitability and financial strength, the company’s ultimate survival is jeopardized.
question

Which of the following are common shortcomings of company vision statements?
answer

Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives
question

When companies adopt the strategy-making and strategy execution process it requires they start by
answer

developing a strategic vision, mission and values
question

Why should long-run objectives take precedence over short-run objectives?
answer

Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results.
question

In a single-business company, the strategy-making hierarchy consists of
answer

business strategy, functional strategies, and operating strategies.
question

Which of the following are characteristics of an effectively worded strategic vision statement?
answer

Graphic, directional, and focused
question

Corporate strategy
answer

ensures consistency in strategic approach among businesses of a diversified, multibusiness corporation.
question

Which one of the following is not a characteristic of an effectively worded strategic vision statement?
answer

Consensus-driven (commits the company to a “mainstream” directional path that most all stakeholders will enthusiastically support)
question

Functional strategies
answer

add detail to the company’s business-level strategy and specify what resources are needed to put the strategy into action.
question

The primary roles/obligations of a company’s board of directors in the strategy-making, strategy-executing process include
answer

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.
question

A company’s values concern
answer

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.
question

The strategic management process is shaped by
answer

external factors such as the industry’s economic and competitive conditions and internal factors such as the company’s collection of resources and capabilities.
question

A company’s strategic vision concerns
answer

a company’s directional path and future product-customer-market-technology focus.
question

Management’s strategic vision for an organization
answer

charts a strategic course for the organization (“where we are going”) and outlines the company’s future product-customer-market-technology focus.
question

Which of the following is not among the principal managerial tasks associated with managing the strategy execution process?
answer

Surveying employees on how employee job satisfaction can be improved
question

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
answer

e.) All of these

Get instant access to
all materials

Become a Member