Exam 2: Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

A) vague or incomplete-short on specifics.
B) flexible-allowing for adjustments to reflect changing circumstances.
C) bland or uninspiring-short on inspiration.
D) generic-could apply to most any company (or at least several others in the same industry) .
E) reliant on superlatives (best,most successful,recognized leader,global or worldwide leader,first choice of customers) .

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A) commits to using a particular business model to make money.
B) decides to adopt a particular strategy.
C) relentlessly pursues an ambitious strategic objective,concentrating the full force of its resources and competitive actions on achieving that objective.
D) commits to pursuing stretch strategic objectives.
E) changes its long-term direction and decides to pursue a newly adopted strategic vision.

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A) Are changing market and competitive conditions acting to enhance or weaken the company's business outlook?
B) Is the company stretching its resources too thinly by trying to compete in too many markets or segments,some of which are unprofitable?
C) Will our present business generate sufficient growth and profitability in the years ahead to please shareholders?
D) What market opportunities should the company pursue and which ones should not be pursued?
E) Do we have a better business model than key rivals?

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A) to help guide managers in deciding what strategic path to take in the event that a strategic inflection point is encountered.
B) because they give the company clear-cut strategic intent.
C) in order to unify the company's strategic vision and business model.
D) for its operations as a whole and also for each of its separate businesses,product lines,functional departments,and individual work units.
E) in order to prevent lower-level organizational units from establishing their own objectives.

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A) helping gain managerial consensus on what resources must be developed to successfully achieve strategic objectives.
B) uniting company personnel behind managerial efforts to get the company moving in the intended direction.
C) helping justify the company's mission of making a profit.
D) helping company personnel understand the logic of the company's business model.
E) keeping company personnel well-informed.

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B

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A) Competitive edge.
B) Sustainable advantage.
C) Strategic intent.
D) Financial strength.
E) All of these.

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A) determine whether the company has a balanced scorecard for judging its performance.
B) stay on track in achieving the company's mission and strategic vision.
C) keep the company's board of directors well-informed about the company's future outlook.
D) determine whether the company's business model is well-matched to changing market and competitive circumstances.
E) decide whether to continue or change the company's strategic vision,objectives,strategy and/or strategy execution methods.

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E

A) put 100 percent emphasis on the achievement of its short-term and long-term financial objectives.
B) recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance.
C) substitute financial intent for strategic intent and judiciously concentrate on the mission of making a profit.
D) not allocate any resources to the achievement of strategic objectives until it is very clear that the company can meet or beat its stretch financial performance targets.
E) avoid use of the "balanced scorecard" philosophy since achievement of financial performance targets is obviously more important than the achievement of strategic performance targets.

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A) business strategy,divisional strategies,and departmental strategies.
B) business strategy,functional strategies,and operating strategies.
C) business strategy and operating strategy.
D) managerial strategy,business strategy,and divisional strategies.
E) corporate strategy,divisional strategies,and departmental strategies.

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B

A) Ensuring that policies and procedures facilitate rather than impede effective execution.
B) Creating a company culture and work climate conducive to successful strategy implementation and execution.
C) Surveying employee's opinions on how costs can be reduced and how employee morale and job satisfaction can be improved.
D) Exerting the internal leadership needed to drive implementation forward and keep improving on how the strategy is being executed.
E) Motivating people and tying rewards and incentives directly to the achievement of performance objectives and good strategy execution.

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A) explain the vision and its rationale to company personnel and outsiders easily in several hours.
B) present their vision and its rationale in a bland and uninspiring manner to ensure stakeholders of its seriousness.
C) paint a convincing and inspiring picture of the company's journey and destination effectively.
D) communicate and distribute the vision to interested parties and to top executives only.
E) None of these.

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A) In most companies,crafting strategy is a team effort,involving managers and often key employees at many organization levels.
B) Ultimate responsibility for leading the strategy-making task rests with the chief executive officer.
C) The task of crafting strategy is best done by a company's chief strategic planning officer,who should report directly to the company's CEO and board of directors.
D) It is the responsibility and duty of a company's board of directors to ensure that new strategy proposals can be defended as superior to alternatives and,ultimately,to approve or disapprove of the strategy formulated and proposed by the company's management.
E) In most of today's companies,every company manager has a strategy-making role,ranging from major to minor,for his/her area of responsibility.

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A) is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives.
B) includes establishing a company's mission,developing a business model aimed at making the company an industry leader,and crafting a strategy to implement and execute the business model.
C) embraces the tasks of developing a strategic vision,setting objectives,crafting a strategy,implementing and executing the strategy,and then monitoring developments and initiating corrective adjustments in light of experience,changing conditions,and new opportunities.
D) is principally concerned with sizing up an organization's internal and external situation,so as to be prepared for the challenges of developing a sound business model.
E) is primarily the responsibility of top executives and the board of directors;very few managers below this level are involved in the process.

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A) an obligation and a reason for what a company does.
B) an objective and a result of what a company does.
C) an outlay and a rationale for what a company does.
D) an obligation and a responsibility for what a company does.
E) an outflow and a right of what a company does.

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A) long-term objectives should take precedence unless the short-term performance targets have unique importance.
B) long-term objectives should take precedence because of the need for future survival.
C) short-term objectives should take precedence because they focus attention on delivering performance improvement.
D) short-term objectives should take precedence unless the long-term performance targets are not achievable.
E) All of these.

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