CH 2 Flashcards
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
A
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%
E
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?
D
Which type of statement should be created first and foremost?
A) Strategic
B) Vision
C) Objectives
D) Mission
E) Competitive advantage
B
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
C
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
A
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
D
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
B
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
D
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
D
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?
A
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?
C
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.
B
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
B
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
E
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.
E
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
A
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
C
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
C
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
D
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
E
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
B
A change in mission always leads to changes in
A) objectives.
B) strategies.
C) organization.
D) behavior.
E) all of the above.
E
Which group would be classified as stakeholders?
A) Governments
B) Creditors
C) Suppliers
D) Employees
E) All of the above
E
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.
A
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.
B
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.
D
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
A
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
E
In order to appeal to its diverse stakeholders, an effective mission statement should be
A) inflammatory.
B) provocative.
C) contentious.
D) reconciliatory.
E) dysfunctional.
D
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.
C
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.
A
Good mission statements identify the———- of products to its customers.
A) utility
B) price
C) profit margin
D) demand
E) popularity
A
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.
B
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.
C
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.
B
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
D
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
C
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.
A
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
B
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.
B
Effective mission statements can vary in
A) length.
B) content.
C) format.
D) specificity.
E) all of the above
E
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
E
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
B
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
E
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
A
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.
E
