Mgnted32 Exam Chapter 6

Question 1

means a many-sided figure with no obvious dominant side

Answer 1

Polygon

Question 2

involving not only profi t and survival but also the motivations of the people involved and the relationship of the organisation with society and the community.

Answer 2

complex and multi-faceted

Question 3

will also be defined by any specific desire to grow the organisation and by an exploration
of the demands of the environment in which the organisation exists.

Answer 3

Purpose

Question 4

is a challenging and imaginative picture of the future role and objectives of an organisation,
signifi cantly going beyond its current environment and competitive position. I

Answer 4

Vision

Question 5

is a phrase that focuses on only the essence of the purpose of the organisation. It
is sometimes phrased in a competitive context.

Answer 5

Strategic intent

Question 6

is useful as one way of summarising the nature of purpose. But it is not
conclusive and other factors not covered in the list may be more important for some organisations

Answer 6

Polygon of Purpose

Question 7

are the individuals and groups who have an interest in the organisation and, therefore, may wish to infl uence aspects of its mission, objectives and strategies.

Answer 7

Stakeholders

Question 8

this can
be positive as well as negative – many organisations will welcome the contributions of and discussions with those who have power.

study covers six stages: identification of stakeholders; establishment of their
interests and claims; estimation of their degree of power; prioritised mission development;
negotiation with key groups; sanctions application where relevant.

Answer 8

Stakeholder power

Question 9

is the world’s largest financial institution, dealing every day in billions of dollars of banking instruments
such as currencies, shares and bonds.

Answer 9

Citigroup

Question 10

became the world’s largest bank by a series of
acquisitions and mergers that eventually led the company
itself to redefine its ethics and corporate governance.

Answer 10

Citibank

Question 11

refers to the influence and power of the stakeholders to control the strategic
direction of the organisation in general, especially the authority of the chief executive and other
senior officers of the organisation.

Answer 11

Corporate governance

Question 12

is meant the standards and conduct that an organisation sets itself in its dealings within the
organisation and outside with its environment.

Answer 12

By ethics and corporate social responsibility CSR

Question 13

the process by which managers within an organisation think about and discuss their relationships with stakeholders as well as their roles in relation
to the common good, along with the behavioural disposition with respect to the fulfi lment and and
achievement of these roles and relationships.

Answer 13

CSR Corporate social responsibility

Question 14

According to this approach, CSR is largely seen as a response to pressures from
stakeholders that are external to the organisation – for example, consumer lobby groups or government organisations putting pressure to adopt policies with regard to global warming or reduce
the cost of AIDS drugs.

Answer 14

Stakeholder driven

Question 15

Research in this area has focused on measuring the eff ectiveness of CSR actions
in terms of their purpose by the organisation and their impact on the outside world. For example,
research has explored the impact on profi tability.

Answer 15

Performance driven

Question 16

This approach explores the reasons why organisations undertake CSR. For
example, business may see this as enhancing the corporate reputation, lowering risk and generating customer loyalty. There may also be reasons that are more fundamental relating to the duties
that businesses may have in relation to society at a theoretical and ethical level.

Answer 16

Motivation driven

Question 17

outlines the broad directions that it should and will follow and
briefly summarises the reasoning and values that lie behind it.

Answer 17

mission of an organisation

Question 18

are then a more specific commitment
consistent with the mission over a specified time period. They may be quantified, but this may be
inappropriate in some circumstances.

take the generalities of the mission statement and turn them into more specifi c commitments

Answer 18

objectives

Question 19

is imprecise and difficult to defi ne by its very
nature.

are usually made by senior managers in the company

Answer 19

Business judgement

Question 20

emphasise the need to set out a mission and objectives for the
organisation for the next few years.

Answer 20

Prescriptive approaches

Question 21

earnings per share, return on shareholders’ funds, cash flow;

Answer 21

Financial objectives

Question 22

e.g. market share increase (quantifi ed); higher product quality (quantifi ed);
greater customer satisfaction (partially quantified); employee job satisfaction (supported by
research survey but not necessarily quantified).

Answer 22

strategic objectives

Question 23

it is particularly important to
recognise that any funds distributed now make it much more difficult to maintain performance
against competitors in the future.

Answer 23

competitive environment

Question 24

companies need to maintain their dividend record or face the
threat of being acquired

Answer 24

short-termism

Question 25

are multidimensional and unlikely to have a single purpose.

Answer 25

Organization