Chapter 2 The Business Vision Vision and Mission
58) All of the following are mentioned as places where vision and mission statements can often be found EXCEPT A) SEC reports ) annual reports C) customer service agreements !) supplier agreements E) business plans 5") According to recent studies# what percent of companies have used a mission statement sometime in the past five $ears% A) &5' ) (' C) *' !) +5' E) "' *) ,hich of these basic -uestions should a vision statement answer% A) ,hat is our business% ) ,ho are our emplo$ees% C) ,hat are our challenges% !) ,hat do we want to become% E) ,ho are our competitors% *&) ,hich t$pe of statement should be created first and foremost% A) Strategic ) .ision C) /b0ectives !) 1ission E) Competitive advantage *2) The ideal length of a vision statement is A) one page3 ) several paragraphs3 C) one sentence3 !) several sentences3 E) as long as is necessar$ to conve$ conve $ the message3 *() ,ho is referred to as the father of modern management% A) !eming ) Peters C) !ruc4er !) 1cinnis E) Smith
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*9) ,hat is the first step in the comprehensive strategic:management model% A) !eveloping vision and mission statements ) Performing e;ternal audits C) Performing internal audits !) 1easuring and evaluating performance E) Establishing long:term ob0ectives *5) According to the comprehensive strategic:management model# which step needs to b e completed immediatel$ following the establishment of long:term ob0ectives% A) !eveloping vision and mission statements ) Performing e;ternal audits C) Performing internal audits !) enerating# evaluating# and selecting strategies E) 1easuring and evaluating performance **) The purpose of a mission statement is to declare all of these EXCEPT A) a reason for being ) an annual financial plan C) a statement of purpose !) a statement of beliefs E) whom it wants to serve Answer< *+) As indicated in the strategic:management model# a clear ======== is ne eded before long: term ob0ectives can be established3 A) short:term ob0ective ) implementation plan C) audit polic$ !) mission statement E) evaluation strateg$ *8) A business> mission is the foundation for all of the following EXCEPT A) priorities ) strategies C) plans !) emplo$ee wage rates E) wor4 assignments *") The mission statement answers which -uestion% A) ,hat is our business% ) ow can we improve ourselves% C) ,hat do we want to become% !) ,ho are our sta4eholders% E) ow can we increase profitabilit
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+) The vision statement answers which -uestion% A) ,hat is our business% ) ow can we improve ourselves% C) ,hat do we want to become% !) ,ho are our sta4eholders% E) ow can we increase profitabilit$% +&) 7n the process of developing a mission statement# it is important to involve A) as few managers as possible3 ) as man$ managers as possible3 C) upper:level management onl$3 !) lower:level management onl$3 E) the board of directors onl$3 +2) The process of developing a vision and mission statement often includes which of these as the first activit$% A) ?e-uesting that managers modif$ the current document ) As4ing managers to read selected articles about mission statements C) As4ing managers to prepare a mission statement for the organi@ation !) aving a brainstorming session on whether the organi@ation should have a mission statement E) 1erging several mission statements into one document +() After a draft mission statement has been developed# it is important to A) as4 managers to read several articles about mission statements as bac4ground information3 ) vote on the mission statement3 C) as4 managers to prepare a mission statement for the organi@ation3 !) as4 managers to see4 support for the mission statement from their subordinates3 E) re-uest modifications# additions# and deletions to the mission statement3 +9) ,hat can be used to promote unbiased views and to manage the development of the mission statement more effectivel$% A) An internal group ) A committee of managers C) Command:and:control !) Surve$s E) An outside facilitator +5) According to Campbell and eung# what isBare most li4el$ associated with behavior and the present% A) 1ission ) .alues C) ong:term ob0ectives !) .ision E) Possibilities
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+*) A stud$ b$ ?aric4 and .itton found that firms with a formali@ed mission statement have ======== the average return on shareholders> e-uit$ than those firms without a formali@ed mission statement3 A) one:-uarter ) half C) twice !) three times E) five times ++) Business Week reports that firms using mission statements have a ======== percent higher return on certain financial measures than those without such statements3 A) & ) &5 C) ( !) 95 E) 5 +8) Ding and Cleland recommend that organi@ations carefull$ develop a written mission statement for all of the following reasons EXCEPT A) to provide a basis for allocating organi@ational resources ) to establish a general tone or organi@ational climate C) to ensure unanimit$ of purpose within the organi@ation !) to ensure a command:and:control structure E) to facilitate the translation of ob0ectives into a wor4 structure involving the assignment of tas4s to responsible elements within the organi@ation +") ,hen developing a mission statement# what is needed before people can focus on specific strateg$ formulation activities% A) egotiation ) Compromise C) Eventual agreement !) A and onl$ E) All of the above 8) ,hat is the best time to develop a mission statement% A) efore a business is opened ) ,hen the firm is successful C) ,hen the firm is in financial trouble !) ,hen the firm is in legal trouble E) ,hen the firm encounters competition 8&) All sta4eholders> claims on an organi@ation ======== pursued with e-ual emphasis3 A) cannot be ) should alwa$s be C) are re-uired to be !) must ideall$ be E) can usuall$ be 9 Cop$right 6 2&( Pearson Education# 7nc3 publishing as Prentice all
82) ,hich group would be classified as sta4eholders% A) overnments ) Creditors C) Suppliers !) Emplo$ees E) All of the above 8() All sta4eholders A) have claims and concerns about an organi@ation# but these claims and concerns var$3 ) have the same claims and concerns about an organi@ation3 C) have ownership rights in an organi@ation3 !) have the same voting rights in an organi@ation3 E) have environmental concerns as their top priorit$3 89) A good mission statement has A) an emplo$ee orientation3 ) a customer orientation3 C) a shareholder orientation3 !) an environmental orientation3 E) a profit orientation3 85) The potential for creative growth in an o rgani@ation can be limited b$ A) an overemphasis on sta4eholders3 ) not enough emphasis on sta4eholders3 C) a mission statement that is too general3 !) a mission statement that is too specific3 E) a mission statement that is too d$namic3 8*) An overl$ general mission statement that ======== could be d$sfunctional3 A) does not e;clude an$ strateg$ alternatives ) encourages management creativit$ C) e;cludes all diversification !) endorses the consideration of feasible potential strategies E) allows for the generation and consideration of a range of alternative ob0ectives 8+) The general public is especiall$ interested in ====== ==# whereas stoc4holders are more interested in ========3 A) environmental concernsF social responsibilit$ ) social responsibilit$F the treatment of emplo$ees C) the treatment of emplo$eesF environmental concerns !) profitabilit$F social responsibilit$ E) social responsibilit$F profitabilit$
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88) 7n order to appeal to its diverse sta4eholders# an effective mission statement should be A) inflammator$3 ) provocative3 C) contentious3 !) reconciliator$3 E) d$sfunctional3 8") 7n developing a mission statement# arousing emotion A) is not a benefit3 ) is futile3 C) is important3 !) should be avoided if possible3 E) is counterproductive3 ") According to 1cinnis# a mission statement should be all of the following EXCEPT A) it should be specific enough to control creative growth ) it should be stated in clear terms C) it should distinguish an organi@ation from all others !) it should define what an organi@ation is E) it should serve as a framewor4 for evaluating both current and prospective activities "&) An effective mission statement does all of the following EXCEPT A) it reflects 0udgments about future growth directions that are based u pon forward:loo4ing e;ternal and internal anal$ses ) it provides useful criteria for selecting among alternative strategies C) it provides a basis for generating and screening strategic options !) it is static in orientation E) it should be enduring "2) ood mission statements identif$ the ======== of a firm>s products to its customers3 A) utilit$ ) price C) profit margin !) demand E) popularit$ "() ,hich of these e;amples of a mission statement>s focus area does /T identif$ the utilit$ of the firm>s products to its customers% A) ATGT focuses on communication rather than telephones3 ) E;;on1obil focuses on oil and gas rather than energ$3 C) Hnion Pacific focuses on transportation rather than railroads3 !) Hniversal Studios focuses on entertainment rather than movies3 E) Starbuc4s focuses on the cafI e;perience rather than coffee3
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"9) All of the following utilit$ statements are relevant in developing a mission statement EXCEPT A) !o not offer me shoes3 /ffer me comfort for m$ feet and the pleasure of wal4ing3 ) !o not offer me furniture3 /ffer me comfort and the -uietness of a co@$ place3 C) !o not offer me ideas# emotions# ambience# feelings# and benefits3 /ffer me things3 !) !o not offer me boo4s3 /ffer me hours of pleasure and the benefit of 4nowledge3 E) !o not offer me clothes3 /ffer me attractive loo4s3 "5) The recommended length of an effective mission statement is ======== words3 A) appro;imatel$ 25 ) no more than & C) less than 25 !) at least ( E) more than 5 "*) ,hat -uestion is as4ed in con0unction with the ph ilosoph$ component of a mission statement% A) ,hat are the firm>s ma0or products or services% ) 7s the firm committed to growth and financial soundness% C) ,hat are the basic beliefs# values# aspirations# and ethical priorities of the firm% !) 7s the firm responsive to social# communit$# and environmental concerns% E) Are emplo$ees a valuable asset of the firm% "+) An effective mission statement should do all of the following EXCEPT A) include monetar$ amounts# numbers# percentages and ratios ) be inspiring C) reveal that the firm is environmentall$ responsible !) identif$ the utilit$ of a firm>s products E) be reconciliator$ "8) The following e;cerpt from a mission statement illustrates which of the nine essential components of a mission statement% J,e believe our first responsibilit$ is to the doctors# nurses# patients# mothers# and all others who use our products and services3J A) 1ar4ets ) Customers C) Concern for Emplo$ees !) Concern for Public 7mage E) Technolog$ "") ,hich of the following illustrates the self:concept component of a mission statement% A) To earn our customer>s lo$alt$# we listen to them# anticipate their needs# and act to create value in their e$es3 ) ,e are committed to leapfrogging ongoing competition within &# da$s b$ unleashing the constructive and creative abilities and energies of each of our emplo$ees3 C) /ur emphasis is on orth American mar4ets# although global opportunities will be e;plored3 !) To compensate its emplo$ees with remuneration and fringe benefits competitive with other + Cop$right 6 2&( Pearson Education# 7nc3 publishing as Prentice all
emplo$ment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations3 E) 7n this respect# the compan$ will conduct its operations prudentl$ and will provide the profits and growth which will assure our ultimate success3 &) Effective mission statements can var$ in A) length3 ) content3 C) format3 !) specificit$3 E) all of the above &&) ,hich component of a mission statement addresses the firm>s distinctive competence or ma0or competitive advantage% A) Technolog$ ) Philosoph$ C) Concern for public image !) Customers E) Self:concept &2) ,hich component of a mission statement addresses the basic beliefs# values# aspirations# and ethical priorities of the firm% A) Technolog$ ) Philosoph$ C) Concern for public image !) Customers E) Self:concept &() ,hich -uestionKs) are answered in an effective mission statement% A) 7s the firm committed to growth and financial soundness% ) Are emplo$ees a valuable asset of the firm% C) eographicall$# where does the firm compete% !) ,ho are the firm>s customers% E) All of the above &9) ,hich of the following is /T one of the nine recommended components of a mission statement% A) Strategies ) Self:concept C) Concern for emplo$ees !) 1ar4ets E) Customers
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&5) Effective and carefull$ planned mission statements A) re-uire ma0or changes ever$ few months3 ) re-uire ma0or changes ever$ few -uarters3 C) re-uire ma0or revision ever$ few $ears3 !) become ineffective in the first $ear3 E) stand the test of time3
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