Ch 1 - Test 1

Question 1

Mission Statement

Answer 1

focuses on current business activities: how are customers being served now

Question 2

Strategic Mission

Answer 2

focuses on firm’s future: what the company is trying to become, future customer needs

Question 3

Strategic Vision

Answer 3

Road map to company’s future: direction headed, niche market, capabilities to develop

Question 4

Characteristics of Strategic Vision

Answer 4

5-10 years, creates the company’s own special identity, answers “What will we do to make a profit?”, management foresight

Question 5

3 Factors of a Business

Answer 5

Customer’s Needs; Customer Groups, Technologies utilized & functions performed

Question 6

Broad vs. Narrow Mission Statements

Answer 6

Narrow enough to find niche; Boundary for what to do an not to do, beacon for top management

Question 7

Purpose of Objectives

Answer 7

Substitutes results-oriented decision-making for aimlessness over what to accomplish; provides benchmarks for judging performance

Question 8

Establishing Objectives

Answer 8

Specific performance targets; stated in quantifiable terms and contain deadlines; spell out how much and what kind by when

Question 9

Types of Objectives

Answer 9

Financial (outcomes that improve financial performance); Strategic (outcomes that improve the firm’s competitiveness and long-term market position)

Question 10

Short-Range Objectives

Answer 10

Targets to achieved soon; Serve as stair steps for reaching LT performance

Question 11

Long-Range Objectives

Answer 11

Target to be achieved 3-5 years; prompt actions now that will permit reaching LT performance later

Question 12

Actual Strategy is…

Answer 12

Planned (or indented) and Adaptive

Question 13

What is strategy?

Answer 13

How to grow; how to please; How to Outcompete; How to respond to changing conditions; How to manage each piece of the business; How to develop needed organizational capabilities; how to achieve strategic and financial objectives

Question 14

What is a Strategic Plan?

Answer 14

Where is the firm headed = Strategic Vision & Mission Statement

Short & LT Objects = Strategic and Financial Objectives

Action Approaches to achieve = A comprehensive strategy

Question 15

Strategy Implementation

Answer 15

is an internal, operations-driven activity involving organizing, budgeting, motivating, culture-building, supervising, and leading to “make the strategy work” as intended

Question 16

Evaluating Performance

Answer 16

5th Task of Strategic Management; task of strategy not a one-time exercise

Question 17

Evaluating Performance: Corrective Adjustments

Answer 17

Alter LT direction, redefine the business, raise or lower performance objectives, Modify the strategy, improve strategy

Question 18

Who performs the Five Strategic Mgmt Tasks?

Answer 18

Senior Corporate Execs, Subsidiary Business Unit Managers, Functional Area Managers, Operating Managers

Question 19

Levels of Strategy Making

Answer 19

Corporate Strategy
Business Strategy
Functional Strategy
Operating Strategy

Question 20

Networking of Missions, Objectives and Strategies

Answer 20

Scope&raquo_space; Corp Lvl Obj&raquo_space; Corp Lvl Strategy
Strat Vision&raquo_space; Bus Lvl Obj&raquo_space; Bus Lvl Strat
Func Miss&raquo_space; Func Obj&raquo_space; Func Strat
Op Miss&raquo_space; Op Obj&raquo_space; Op Strat

Question 21

Performance Objectives

Answer 21

Organization’s targets for achievement; both short and long range objectives are needed