CH 2

Question 1

All of the following are mentioned as places where vision and mission statements can often be found except:
A) SEC reports
B) annual reports
C) customer service agreements
D) Supplier agreements
E) Business plans

Answer 1

A

Question 2

According to recent studies, what percent of companies have used a mission statement sometime in the past five years?
A) 15%
B) 30%
C) 60%
D) 75%
E) 90%

Answer 2

E

Question 3

Which of these basic questions should a vision statement answer?
A) What is our business?
B) Who are our employees?
C) What are our challenges?
D) What do we want to become?
E) Who are our competitors?

Answer 3

D

Question 4

Which type of statement should be created first and foremost?
A) Strategic
B) Vision
C) Objectives
D) Mission
E) Competitive advantage

Answer 4

B

Question 5

The ideal length of a vision statement is?
A) one page
B) several paragraphs
C) one sentence
D) several sentences
E) as long as is necessary to convey the message

Answer 5

C

Question 6

What is the first step in the comprehensive strategic management model?
A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Measuring and evaluating performance
E) Establishing long term objectives

Answer 6

A

Question 7

According to the comprehensive strategic-management model, which step needs to be completed immediately following the establishment of long-term objectives?
A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Generating, evaluating, and selecting strategies
E) Measuring and evaluating performance

Answer 7

D

Question 8

The purpose of a mission statement is to declare all of these except?
A) a reason for being
B) an annual financial plan
C) a statement of purpose
D) a statement pf beliefs
E) whom it want to serve

Answer 8

B

Question 9

As indicated in the strategic management model, a clear _________ is needed before alternate strategies can be formulated and implemented.
A) Long term objective
B) Short term objective
C) Policy
D) mission statement
E) evaluation strategy

Answer 9

D

Question 10

A business’s mission is the foundation for all of the following except:
A) priorities
B) strategies
C) plans
D) employee wage rates
E) work assignment

Answer 10

D

Question 11

The mission statement answers which question?
A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
E) How can we increase profitability?

Answer 11

A

Question 12

The vision statement answers which question?
A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
E) How can we increase profitability?

Answer 12

C

Question 13

In the process of developing a mission statement, it is important to involve
A) as few managers as possible.
B) as many managers as possible.
C) upper-level management only.
D) lower-level management only.
E) the board of directors only.

Answer 13

B

Question 14

The process of developing a vision and mission statement often includes which of these as the first activity?
A) Requesting that managers modify the current document
B) Asking managers to read selected articles about mission statements
C) Asking managers to prepare a mission statement for the organization
D)Having a brainstorming session on weather the organization should have a mission statement
E) Merging several mission statements into one document

Answer 14

B

Question 15

What can be used to promote unbiased views and to manage the development of the mission statement more effectively?
A) An internal group
B) A committee of managers
C) Command-and-control
D) Surveys
E) An outside facilitator

Answer 15

E

Question 16

After a draft mission statement has been developed, it is important to
A) ask managers to read several articles about mission statements as background information.
B) vote on the mission statement.
C) ask managers to prepare a mission statement for the organization.
D) ask managers to seek support for the mission statement from their subordinates.
E) request modifications, additions and deletions to the mission statement.

Answer 16

E

Question 17

According to Campbell and Yeung, what is/are most likely associated with behavior and the present?
A) Mission
B) Values
C) Long-term objectives
D) Vision
E) Possibilities

Answer 17

A

Question 18

A study by Rarick and Vitton found that firms with a formalized mission statement have the average return on shareholders’ equity compared to those firms without a
formalized mission statement.
A) one-quarter
B) half
C) twice
D) three times
E) five times

Answer 18

C

Question 19

77) Business Week reports that firms using mission statements have a return on certain financial measures than those without such statements.
A) 10
B) 15
C) 30
D) 57
E) 54

Answer 19

C

Question 20

King and Cleland recommend that organizations carefully develop a written mission statement for all of the following reasons except
A) to provide a basis for allocating organizational resources.
B) to establish a general tone or organizational climate.
C) to ensure unanimity of purpose within the organization.
D) to ensure a command-and-control structure.
E) to facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization

Answer 20

D

Question 21

When developing a mission statement, what is needed before people can focus on specific strategy formulation activities?
A) Negotiation
B) Compromise
C) Eventual agreement
D) A and B only
E) All of the above

Answer 21

E

Question 22

What is the best time to develop a mission statement?
A) Before a business is opened
B) When the firm is successful
C) When the firm is in financial trouble
D) When the firm is in legal trouble
E) When the firm encounters competition

Answer 22

B

Question 23

A change in mission always leads to changes in
A) objectives.
B) strategies.
C) organization.
D) behavior.
E) all of the above.

Answer 23

E

Question 24

Which group would be classified as stakeholders?
A) Governments
B) Creditors
C) Suppliers
D) Employees
E) All of the above

Answer 24

E

Question 25

All stakeholders A) have claims and concerns about an organization, but these claims and concerns vary. B) have the same claims and concerns about an organization. C) have ownership rights in an organization. D) have the same voting rights in an organization. E) have environmental concerns as their top priority.

Answer 25

A

Question 26

A good mission statement has A) an employee orientation. B) a customer orientation. C) a shareholder orientation. D) an environmental orientation. E) a profit orientation.

Answer 26

B

Question 27

The potential for creative growth in an organization can be limited by A) an overemphasis on stakeholders. B) not enough emphasis on stakeholders. C) a mission statement that is too general. D) a mission statement that is too specific. E) a mission statement that is too dynamic.

Answer 27

D

Question 28

An overly general mission statement that _________ could be dysfunctional. A) does not exclude any strategy alternatives B) encourages management creativity C) excludes all diversification D) endorses the consideration of feasible potential strategies E) allows for the generation and consideration of a range of alternative objectives

Answer 28

A

Question 29

The general public is especially interested in_________ , whereas stockholders are more interested in A) environmental concerns; social responsibility B) social responsibility; the treatment of employees C) the treatment of employees; environmental concerns D) profitability; social responsibility E) social responsibility; profitability

Answer 29

E

Question 30

In order to appeal to its diverse stakeholders, an effective mission statement should be A) inflammatory. B) provocative. C) contentious. D) reconciliatory. E) dysfunctional.

Answer 30

D

Question 31

In developing a mission statement, arousing emotion A) is not a benefit. B) is futile. C) is important. D) should be avoided if possible. E) is counterproductive.

Answer 31

C

Question 32

According to McGinnis, a mission statement should be all of the following except: A) it should be specific enough to control creative growth. B) it should be stated in clear terms. C) it should distinguish an organization from all others. D) it should define what an organization is. E) it should serve as a framework for evaluating both current and prospective activities.

Answer 32

A

Question 33

Good mission statements identify the———- of products to its customers. A) utility B) price C) profit margin D) demand E) popularity

Answer 33

A

Question 34

Which of these examples of a mission statement's focus area does not identify the utility of the firm's products to its customers? A) AT&T focuses on communication rather than telephones. B) Exxon/Mobil focuses on oil and gas rather than energy. C) Union Pacific focuses on transportation rather than railroads. D) Universal Studios focuses on entertainment rather than movies. E) Starbucks focuses on the café experience rather than coffee.

Answer 34

B

Question 35

All of the following utility statements are relevant in developing a mission statement except: 1) Do not offer me sinis e. Orme me comfor my fe que the pleasury palking. C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things. D) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. E) Do not offer me clothes. Offer me attractive looks.

Answer 35

C

Question 36

Which of these examples of a mission statement's focus area does not identify the utility of the firm's products to its customers? A) AT&T focuses on communication rather than telephones. B) Exxon/Mobil focuses on oil and gas rather than energy. C) Union Pacific focuses on transportation rather than railroads. D) Universal Studios focuses on entertainment rather than movies. E) Starbucks focuses on the café experience rather than coffee.

Answer 36

B

Question 37

According to a classic description of the purpose of a business, it is the determines what a business is. A) marketing department B) middle-management C) СЕО D) customer E) strategist

Answer 37

D

Question 38

What a is decisive and determines what a business is, and what the customer buys and considers value is A) business thinks it produces; never a product B) business thinks it produces; what a product or service does for him or her C) customer thinks s/he is buying; always a product D) customer thinks s/he is buying; always utility E) business thinks a customer wants; never what a product or service does for him or her

Answer 38

C

Question 39

An effective mission statement should do all of the following except: A) include monetary amounts, numbers, percentages and ratios. B) be inspiring. C) reveal that the firm is environmentally responsible. D) identify the utility of a firm's products. E) be reconciliatory.

Answer 39

A

Question 40

The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services." A) Markets B) Customers C) Concern for Employees D) Concern for Public Image E) Technology

Answer 40

B

Question 41

Which of the following illustrates the self-concept component of a mission statement? A) To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes. B) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees. C) Our emphasis is on North American markets, although global opportunities will be explored. D) To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations. E) In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure our ultimate success.

Answer 41

B

Question 42

Effective mission statements can vary in A) length. B) content. C) format. D) specificity. E) all of the above

Answer 42

E

Question 43

Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage? A) Technology B) Philosophy C) Concern for public image D) Customers E) Self-concept

Answer 43

E

Question 44

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm? A) Technology B) Philosophy C) Concern for public image D) Customers E) Self-concept

Answer 44

B

Question 45

Which questions) are answered in an effective mission statement? A) What is the purpose of our organization? B) What is our company philosophy or self-concept? C) What technology will we employ to achieve our objectives? D) Who are the firm's customers? E) All of the above

Answer 45

E

Question 46

Which of the following is not one of the nine recommended components of a mission statement? A) Strategies B) Self-concept C) Concern for employees D) Markets E) Customers

Answer 46

A

Question 47

Effective and carefully planned mission statements A) require major changes every few months. B) require major changes every few years. C) never require revision. D) become ineffective in the first year. E) stand the test of time.

Answer 47

E