Question 1

The difference between the concept of a company mission statement and the concept of a strategic vision is that

Accepted Answer

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\".

Question 2

Which one of the following statements about the characteristics of well-stated objectives is false?

Accepted Answer

Well-stated objectives should contain sufficient wiggle room to allow for the occurence of unexpected circumstances that block achievement of the objective.

Question 3

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?

Accepted Answer

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

Question 4

A company\'s strategic vision

Accepted Answer

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

Question 5

The task of effectively communicating the strategic vision to organization members is made easier by

Accepted Answer

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.\"

Question 6

Business strategy, as distinct from corporate strategy, concerns

Accepted Answer

the actions and approaches being employed to produce successful performance in one specific line of business.

Question 7

One of the critical components of the strategy-making, strategy-executing process is for company managers to

Accepted Answer

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

Question 8

A company\'s overall strategy

Accepted Answer

is really a collection of strategic initiatives and actions devised by managers and key employees up and  down the whole organizational hierarchy.

Question 9

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

Accepted Answer

Feasible, memorable, makes good business sense, and has some wiggle room

Question 10

A company with strategic intent is one that

Accepted Answer

concentrates the full force of its resources and competitive actions on achieving an ambitious strategic outcome.

Question 11

A company\'s strategic plan

Accepted Answer

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.

Question 12

Masterful strategies come from

Accepted Answer

doing things differently from competitors where it counts--out-innovating them, being more efficient, adapting faster--rather than running with the herd.

Question 13

Which of the following is the best example of a well-stated financial objective?

Accepted Answer

Increase total profits by 10% annually

Question 14

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?

Accepted Answer

What business approaches and operating practices should we consider in trying to implement and execute our business model?

Question 15

Managerial jobs with strategy-making responsibility

Accepted Answer

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.

Question 16

Which of the following are key tasks in the strategy-making, strategy-executing process?

Accepted Answer

Developing a strategic vision, mission, and core values; setting objectives; and crafting a strategy to achieve the objectives and the company vision

Question 17

The primary role of a functional strategy is to

Accepted Answer

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.

Question 18

Setting and achieving strategic objectives is critically important because

Accepted Answer

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.

Question 19

Perhaps the most reliable way for a company to improve its financial performance over time is to

Accepted Answer

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.

Question 20

A company\'s values, or core values, concern

Accepted 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 21

A \"balanced scorecard\" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company\'s overall performance because

Accepted Answer

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.

Question 22

The obligations of an investor-owned company\'s board of directors in the strategy-making, strategy-executing process include

Accepted Answer

overseeing the company\'s financial accounting and financial reporting practices and evaluating the caliber of senior executives\' strategy-making and strategy-executing skills.

Question 23

Developing a strategic vision for a company entails

Accepted Answer

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.

Question 24

Operating strategies concern

Accepted Answer

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).

Question 25

In a diversified or multi-business company, the strategy-making hierarchy (as shown in Figure 2-2) consists of

Accepted Answer

corporate strategy, a business strategy for each business the company has diversified into, and functional and operating strategies within each business.

Question 26

Which of the following is the best example of a well-stated strategic objective?

Accepted Answer

achieve market share higher than the industry average????

Question 27

A set of \"stretch\" financial and strategic objectives

Accepted Answer

helps a company avoid ho-hum results.

Question 28

A company needs financial objectives

Accepted Answer

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.

Question 29

Effectively communicating the strategic vision to company personnel is important because

Accepted Answer

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.

Question 30

A company\'s strategic vision concerns

Accepted Answer

the things the company intends to do to please its customers and achieve a competitive advantage.

Question 31

The managerial purpose of setting objectives is to

Accepted Answer

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.

Question 32

Strategy-making is

Accepted Answer

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.

Question 33

A company\'s strategy is at full power

Accepted Answer

only when its many pieces are united, cohesive, and mutually reinforcing, fitting together like a jigsaw puzzle.

Question 34

Which one of the following approaches to objective-setting should definitely be avoided?

Accepted Answer

Setting unspecific targets like maximize profits, reduce costs, become more efficient or increase revenues

Question 35

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?

Accepted Answer

Do we have a better business model than key rivals?

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