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Multiple Choice Quiz (See related pages)
Results Reporter Out of 21 questions, you answered 3 correctly with a final grade of 14% 3 correct (14%) 18 incorrect (86%) 0 unanswered (0%)
Your Results: The correct answer for each question question is indicated by a
1 INCORRECT
.
Which one of the following is not an integral part of the managerial process of crafting and executing strategy? A) Developing a strategic vision B) Developing a proven business model C)
Settin g objectives objectives and crafting a strategy to achieve them
D)
Monitoring developments, evaluating performance, and initiating corrective adjustment s in the company's longterm direction, objectives, strategy, or execution
E) I mplement ing and executin g the chosen strategy efficiently and effectively Feedback:
2 INCORRECT
A strategic vision for a company A) involves how fast to pursue th e chosen strategy and reach the target ed levels of performance. B) consists of thinking through what it will take to make th e chosen strategy work as planned. planned. C)
is a road map that delineates man agement' s view of the company's future-" where we are going and why." why."
D) spells out how the company is going to get from where it is now to where it want to go and when it is expected to arrive. business model from from where it is now to where it E) concerns management's view of how to transition the company's business needs to be. Feedback:
3 INCORRECT
Which of the following is not an important consideration in deciding to commit to one directional path versus another? landscape acting to enhance or weaken the A) Are changes presently under way in the market and competitive landscape company's business outlook? B) Where sh ould we head in order to prove that our business m odel is viable viable and that ou r strategy is working? C)
Will the company's present business generate su fficient growth and profitability in the years ahead to please shareholders?
D)
What, if any, new geographic markets and/or customer groups should the company get in position to serve?
E) What are our ambitions for the company-what company-what industry standing do we want the company company to have? Feedback:
4 INCORRECT
The difference between a company's mission statement and the concept of a strategic vision is that profit, whereas the strate gic vision vision addresses what strategy A) the mission stat ement lays out t he desire to make a profit, the company will employ in trying to make a profit. B) a mission statemen t deals with "whe re we are headed " whereas a strategic vision provides the critical answer to "how will we get there?" C)
a mission deals with what a company is tryin g to do and a vision concerns wh at a company ought t o do.
D) a mission statemen t typically identifies what the company's products or services are (what we do) and the customers and markets it serves (why we are here), whereas the focus of a strategic vision is on "where we are going and why." about wh at to accomplish for shareholders whereas a strategic vision concerns what t o accomplish for E) a mission is about customers. Feedback:
5 INCORRECT
Which one of the following is not a characteristic of an effectively-worded strategic vision statement? A) Directional (says something about the company's journ ey and destination and the kin ds of business and strategic changes that will be forthcoming) B) Inspirational (is worded in a motivational and stirring way that will garner enthu siastic and energetic support from company personnel and shareholders) C)
Graphic (paints (paints a clear picture) picture)
D)
Easy to commun icate (ideally, (ideally, explainable in 10 minutes)
(has specifics but but stops short of a once-and-for-all-time once-and-for-all-time pronouncem ent because th e strategic E) Focused and flexible (has path may need to be changed as events unfold) Feedback:
6 INCORRECT
Which of the following is a common shortcoming of company vision statements? A) Incomplete or vague-short on specifics reliant on superlatives (best, most su ccessful, recognized leader, leader, global or worldwide worldwide leader, leader, first choice of B) Too reliant buyers) C)
So broad broad that it really doesn't rule out pursuing most any opportunity managem ent spots
D)
Not distinctive-could apply to most any company (or at least several others in the same indust ry)
E) All of the above are common shortcomin gs Feedback:
7 INCORRECT
A company's values can relate to A) how it will treat employees and customers and the importance t he company places of teamwork. B) expectations th at company personnel will exhibit integrity and fairness in conducting the company's business. C)
the em phasis the company will place on innovativen ess or quality or customer service.
D)
the company 's beliefs in high ethical standards, socially responsible behavior, and giving back to the comm unit y.
E) All of the above. Feedback:
8 CORRECT
When there 's an order of magnitu de change in a company's environment that dramatically alters its prospects and mandates radical revision of its strategic course, the company is said to have encountered A) a strategic inflection point. B) a directional crossroads. C) a new strategic intent opportun ity. D)
a strategic roadblock that requ ires a new strategic vision and business model.
E) a quantum conflict between its strategy and its strategic vision (that usually requires changing both the vision and the strategy). Feedback:
9 CORRECT
A company's objectives or performance targets A) represent a managerial commitmen t to achieving quantifiable or measurable outcomes and results by a certain time and are needed for each all areas of the business that managers deem important to organizational success. B) are typically established after a company decides on a strategic vision and strategy so that t hey will ent ail performance targets that truly signal business success. C) are best stated in general terms (maximize profits, reduce costs, increase sales) rather th an quantifiable terms (increase after-tax profits by 10% in 2 years, grow sales revenues by 20% annually) so that managers will have the latitude to adjust target outcomes to levels that can be achieved. D)
should place far more emphasis on financial performance targets than st rategic performance targets.
E) All of these. Feedback:
10 INCORRECT
Which of the following represents the best example of a strategic objective (as opposed to a financial objective)? A) Achieve revenue growth of 10% annually B) Increase market share from 17% to 22% within 3 years and achieve the lowest overall costs of any producer in the industry C)
Boost earnings per share by 15% ann ually by offering customers the widest selection of products in the indust ry
D)
Achieve a AA bond rating within 2 years and an annu al cash flow of $50 0 million
E) Increase the company's return on invested capital from 13.5% to 15 .0% within 2 years by paying more attention to reducing costs Feedback:
11 INCORRECT
Establishing and achieving strategic objectives merits very high priority on management's agenda because A) trading off better financial performance for building a stronger competitive position provides better benefits t o shareholders in both the short-run and the long-run. B) a company can't have a shrewd strategic vision without havin g aggressive and competitively astute strate gic objectives. C) the su rest path to sustained futu re profitability is successfully pursuing actions that strengthen a company's competitiveness and market position. D)
well-chosen strategic objectives are essential to a well-crafted strategy
E) a company cannot achieve its strategic inten t and strategic vision or gain a competitive advantage over rivals without having and achieving strategic objectives. Feedback:
12 CORRECT
Which of the following statements about objectives is false? A) A company's managers are well-advised to give the achieveme nt of financial objectives a much higher priority than the achievement of strategic objectives. B) Companywide objectives need to be broken down into performance targets for each separate business, product line, functional department, and individual work unit because company performance can't reach full potential without each area of the organization doing its part and contributing directly to the desired companywide outcomes and results. C) A "balanced scorecard" for measurin g company performance views financial performance measures as lagging indicators that reflect the results of past decisions and organizational activities and views strategic performance measures as leading indicators of a company's future financial performance. D)
Objectives should be set at high enough levels to stretch an organization to reach its full potent ial.
E) A company's objectives funct ion as yardsticks for tracking an organization's performance and progress and should be quantifiable or measurable and contain a deadline for achievement. Feedback:
13 INCORRECT
A balanced scorecard for measuring company performance A) entails balancing the pursuit of good bottom-line profit against th e pursuit of non-profit objectives (although achieving profitability targets is nearly always given greater emphasis). B) involves putting equal emphasis on the achievement of financial objectives, strategic objectives, and social responsibility objectives. C)
entails settin g both financial and strategic objectives and putting balanced emphasis on their achievemen t.
D)
helps prevent the pursuit of strategic objectives from dominating the pursuit of financial objectives.
E) is necessary in order to prevent th e drive for achieving financial objectives from weakening th e attent ion paid to social responsibility, community citizenship, and other worthy goals. Feedback:
14
A company exhibits strategic intent when
INCORRECT A) it pursues its strategic vision. B) it relentlessly pursues an ambitious strategic objective and concentrate s its full resources and competitive actions on achieving that objective. C)
it adopts a strategic plan and tries to execute it.
D)
it sets objectives and pursues their achievement.
E) All of the above. Feedback:
15 INCORRECT
The task of crafting a strategy is A) the fun ction and responsibility of a few high-level executives. B) more of a collaborative group effort that in volves all managers and sometimes key employees striving to arrive at a consensus on what the overall best strategy should be. C)
the fu nction and responsibility of a company's strategic planning staff.
D)
a job for a company's whole management te am-senior executives plus th e managers of business units, operating divisions, functional departments, manufacturing plants, and sales districts (as per the strategy-making pyramid shown in Figure 2.2).
E) first and foremost th e funct ion and responsibility of a company's board of directors. Feedback:
16 INCORRECT
A company's overall strategy A) is really a collection strate gic initiatives and actions devised by managers and key employees up and down th e whole organization. B) consists of its strategic vision, mission statement, finan cial and strategic objectives, and strategic initiatives undertaken from the top to the bottom of its strategy-making pyramid (see Figure 2.2). C) consists of corporate strategy, business-level strategies, functional strategies, and operating strategies when the company has diversified and operates a group of businesses. D)
consists of its diversification strategy, line of business strategies, and operating strategies.
E) Both A and C are correct. Feedback:
17 INCORRECT
Business strategy, as distinct from corporate strategy, is chiefly concerned with A) e stablishing business positions in different indust ries. B) forging a series of actions and approaches that h old promise for producing successful performance in one specific line of business. C)
boosting the combined performance of the set of businesses a company may have diversified into.
D)
striving to capture cross-business synergies and turn th em into competitive advantage.
E) adapting a company's business model to changing market conditions. Feedback:
18 INCORRECT
Functional strategies A) describe the mission and strategic intent of each key funct ional piece of the busin ess. B) concern wh at to do about resolving the specific strategic issues and operating problems a business confron ts in each key part of its business-R&D, production, sales and marketing, finance, information technology, human resources, and so on. C) are normally crafted by the execut ive in charge of the overall business and approved by the company' s board of directors. D) add relevant detail to the overall business strategy by settin g forth th e actions, approaches, and practices to be employed in managing a particular functional activity or business process or key department within a business. E) are concerned with wh at competitive capabilities to build in support of the overall company strategy and what to do to unify the firm's skills, competencies, and resource strengths across all the various key pieces of a company's business. Feedback:
19 INCORRECT
Operating strategies concern A) what a company's various operating departmen ts plan to do to help execute th e company's overall strategy. B) the strategic intent of each operating unit. the game plans for managing key operating unit s within a business (plants, sales districts, distribution cente rs) and for performing strategically significant operating tasks (maintenance, shipping, inventory control, purchasing, advertising) so as to support functional strategies and the overall business strategy. D) the specific actions a company's various operating department s plan to take to unify efforts to achieve a sustainable competitive. C)
E) All of these. Feedback:
20 INCORRECT
A company's strategic plan consists of A) its objectives and its strategy for achieving them . B) managemen t's vision of where the company is headed, the established financial and strategic objectives, and management's strategy to achieve the objectives and move the company along the chosen strategic path. C)
a company's strategic vision, strategic objectives, strategic intent, and strategy.
D)
an organization's strategy and managemen t's specific, detailed plans for implement ing it.
E) the specific actions management int ends to take in detourin g strategic inflection points and achieving a sustainable competitive advantage. Feedback:
21 INCORRECT
The role of a company's board of directors in the strategy-making, strategy-executing process is to A) direct senior executives as to what th e company's long-term direction, objectives, business model, and strategy should be and, further, closely supervise senior executives in their efforts to implement and execute the strategy. B) exercise strong oversight over the company's strategic direction and the major element s of its strategy. C)
evaluate the caliber of senior executives' strategy-making and strategy-implementin g skills.
D)
work closely with the CEO, senior executives, and the st rategic plannin g staff to develop a strategic plan for the company; rubber stamp the proposals and recommendations of the CEO as to how to execute the business model and achieve the strategic intent; and ensuring that the strategy-making/strategy-executing process is carried out in a manner that benefits shareholders.
E) Both B and C. Feedback:
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