Chapter 2

Question 1

Developing a strategic vision

Answer 1

charts the company’s long-term direction a mission statement that describes the company’s business, and a set or core values to guide the pursuit of the strategic vision and mission

Question 2

Mission statement

Answer 2

a well-conceived mission statement conveys a company’s purpose in language specific enough to give the company its own identify. Typically describes its present business and purpose (who we are, what we do and why we are here)

Question 3

values

Answer 3

the belief, 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 4

Setting objectives

Answer 4

for measuring the company’s performance and tracking its progress in moving in the intended long-term direction

Question 5

Crafting a strategy

Answer 5

for advancing the company along the path to management’s envisioned future and achieving its performance objectives

Question 6

Implementing and executing the chosen strategy

Answer 6

efficiently and effectively

Question 7

Evaluating and analyzing the external environment and the company’s internal situation and performance

Answer 7

to identify corrective adjustments that are needed in the company’s long term direction, objective, strategy, or approach to strategy execution

Question 8

Strategic inflection points

Answer 8

the evaluation stage of the strategic management process also allows for change in the company’s vision, but this should be necessary only when it becomes evident to management that the industry has changed in a significant way that renders the vision obsolete. An event that changes the way we think and act

Question 9

Strategic Plan

Answer 9

lays out its future direction, performance targets and strategy

Question 10

Strategic Vision

Answer 10

describes “where we are going” the course and direction management has charted and the company’s future product-customer-market-technology focus.

Question 11

Graphic

Answer 11

paints a picture of the kind of company that management is trying to create and the market position(s) the company is striving to stake out

Question 12

Directional

Answer 12

is forward- looking; describes the strategic course that management has charged and the kinds of product-market-customer-technology changes that will help the company prepare for the future

Question 13

Focused

Answer 13

is specific enough to provide managers with guidance in making decisions and allocating resources

Question 14

Flexible

Answer 14

is not so focused that it makes it difficult for management to adjust to changing circumstances in markets, customers, preference or technology

Question 15

Desirable

Answer 15

indicates why the directional path makes good business sense

Question 16

Easy to communicate

Answer 16

is explainable in 5 -10 minutes and ideally can be reduced to a simple, memorable, slogan

Question 17

Vague or Incomplete

Answer 17

short on specifics about where the company is headed of what the company is doing to prepare for the future

Question 18

Not forward looking

Answer 18

does not indicate whether or how management intends to alter the company’s current product-market-customer-technology focus

Question 19

Too broad

Answer 19

so all inclusive that the company could head in most any direction, pursue most any opportunity, or enter most any business

Question 20

Bland or uninspiring

Answer 20

lacks the power to motivate company personnel to inspire shareholder confidence about the company’s direction

Question 21

Not distinctive

Answer 21

Provides no unique company identify; could apply to companies in any several industries including rivals operating in the same market arena

Question 22

Too reliant on superlative

Answer 22

does not say anything specific about the company’s strategic course beyond the pursuit of such distinction as begin recognized leader, a global or worldwide leader or the first choice of customers.

Question 23

Objectives

Answer 23

are an organization’s performance targets- the result management wants to achieve. They are quantifiable or measurable and contain a deadline for achievements.

Question 24

Strategic objectives

Answer 24

set performance targets high enough to stretch an organization to perform at its full potential and deliver the best possible results. Relates to target outcomes that indicate a company is strengthening its marketing standing, competitive vitality and future business prospects.

Question 25

Strategic intent:

Answer 25

when it is relentlessly pursue an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objectives

Question 26

Financial objectives

Answer 26

relate to the financial performance target management has established for the organization

Question 27

Balance scorecard

Answer 27

a widely used method for combing the use of both strategic and financial objectives tracking their achievement and giving management a more complete and balance view of how well an organization is performing

Question 28

Corporate strategy

Answer 28

establishes an overall game plan for managing asset of businesses in a diversified multi-business company

Question 29

Business Strategy

Answer 29

primarily concerns with strengthening the company’s market position and building competitive advantage in a single-business company or a single business unit of a diversified multi-business corporation

Question 30

Functional area strategies

Answer 30

concern the actions related to a particular functions or processes within a business

Question 31

Operating strategies

Answer 31

concern the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geographic units) and specific operating activities such as material purchasing or internet sales.