425 Ch.2

C) is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries.

100) Corporate strategy for a diversified or multibusiness enterprise A) is orchestrated by midlevel managers and focuses on how to create a competitive advantage in each specific line of business the total enterprise is in. B) concerns how best to allocate resources across the departments of each line of business the company is in. C) is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries. D) deals chiefly with what the strategic intent of each of its business units should be. E) involves how functional strategies should be aligned with business strategies in each of the various lines of business the company is in.

C) is vague, fairly uninformative, and blurs the essence of this company's business activities.

31) You have been asked to evaluate Kampus Kombucha's mission statement, "To heal and refresh everyone we touch." You would most likely observe that Kampus Kombucha's mission statement A) specifies the buyer needs that it seeks to satisfy and the customer groups or markets it serves. B) specifically informs customers and employees "who we are, what we do, and why we are here." C) is vague, fairly uninformative, and blurs the essence of this company's business activities. D) describes more of an objective and a result of what this company does instead of its purpose. E) portrays this company's aspirations for the future

B) links the company's financial targets to control mechanisms.

32) A company's strategic plan A) maps out the company's history. B) links the company's financial targets to control mechanisms. C) outlines the competitive moves and approaches to be used in achieving the desired business results. D) focuses on offering a more appealing product than rivals. E) lists methods of making money in its chosen business

C) developing a strategic vision.

33) An integral part of the managerial process of crafting and executing strategy includes A) developing a proven business model. B) deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage. C) developing a strategic vision. D) communicating the company's values and code of conduct to all employees. E) deciding on the company's strategic intent.

A) developing a strategic vision, strategic management, and crafting a strategy.

34) Integral parts of the managerial process of crafting and executing strategy include A) developing a strategic vision, strategic management, and crafting a strategy. B) developing a proven business model, deciding on the company's strategic intent, and crafting a strategy. C) strategic management, crafting a strategy, implementing and executing the chosen strategy, and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage. D) coming up with a statement of the company's mission and purpose, strategic management, choosing what business approaches to employ, selecting a business model, and monitoring developments. E) deciding on the company's strategic intent, setting financial objectives, crafting a strategy, and choosing what business approaches and operating practices to employ.

C) external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities

35) The strategy-making, strategy-executing process is shaped by A) management's strategic vision, strategic and financial objectives, and strategy. B) the decisions made by the compensation and audit committees of the board of directors. C) external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities. D) the challenges of developing a sound business model. E) top executives and the board of directors; very few managers below this level are involved in the process.

A) developing a strategic vision and mission, and values

36) When companies adopt the strategy-making and strategy-execution process, it requires they start by A) developing a strategic vision and mission, and values. B) developing a proven business model, deciding on the company's top management team, and crafting a strategy. C) strategic management, developing a business model, crafting a strategy, and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage. D) coming up with a statement of the company's mission and communicating it to all employees, strategic management, selecting a business model, and monitoring developments and initiating corrective adjustments to the business model when necessary. E) deciding on the company's board of directors, setting financial objectives, crafting a strategy, and choosing what business approaches and operating practices to employ.

D) a company's directional path and future product-customer-market-technology focus

37) A company's strategic vision concerns A) management's storyline of how it intends to make a profit with the chosen strategy "who we are and what we do." B) what future actions the enterprise will likely undertake to outmaneuver rivals and achieve sustainable competitive advantage. C) "who we are and what we do." D) a company's directional path and future product-customer-market-technology focus. E) why the company does certain things in trying to please its customers.

C) serves as management's tool for giving the organization a sense of direction.

38) The real purpose of the company's strategic vision A) lays out how management plans to implement and execute a profitable business model. B) describes what business the company is presently in and why it has chosen certain operating practices to meet the needs of customers. C) serves as management's tool for giving the organization a sense of direction. D) defines "who we are and what we do." E) spells out a company's strategic intent, its strategic and financial objectives, and the business approaches and operating practices that will underpin its efforts to achieve sustainable competitive advantage

A) long-term direction and what product-market-customer mix seems optimal.

39) A strategic vision constitutes management's view and conclusions about the company's A) long-term direction and what product-market-customer mix seems optimal. B) business model and the kind of value that it is trying to deliver to customers. C) justification of why the business will be a moneymaker. D) past and present scope of work. E) long-term plan for outcompeting rivals and achieving a competitive advantage.

D) involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense.

40) The managerial task of developing a strategic vision for a company A) concerns deciding what approach the company should take to implement and execute its business model. B) entails coming up with a fairly specific answer to "who are we, what do we do, and why are we here?" C) is chiefly concerned with addressing what a company needs to do to successfully outcompete rivals in the marketplace. D) involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense. E) entails coming up with a concrete plan for how the company intends to make money

B) outlining how the company intends to implement and execute its business model.

41) An unlikely, inaccurate feature of an organization's strategic vision is A) providing a panoramic view of "where we are going." B) outlining how the company intends to implement and execute its business model. C) pointing an organization in a particular direction and charting a strategic path for it to follow. D) helping mold an organization's character and identity. E) describing the company's future product-market-customer focus.

A) charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense.

42) Management's strategic vision for an organization A) charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense. B) describes in fairly specific terms the organization's strategic objectives and strategy. C) spells out how the company will become a big moneymaker and boost shareholder value. D) addresses the critical issue of "why our business model needs to change and how we plan to change it." E) spells out the organization's strategic intent and the actions and moves that will be undertaken to achieve it.

C) an integral part of this company's DNA, but only if executives decide to ingrain designated core values into corporate culture.

43) TOMS Shoes' company values are A) directly linked to this company's strategic vision, whereas its mission is tied to other valuable underlying assets. B) marginally distinguishable among those of other rivals in the footwear industry. C) an integral part of this company's DNA, but only if executives decide to ingrain designated core values into corporate culture. D) strictly limited in number (not more than two per company). E) focused on the wealth maximization of shareholders.

B) constitutes the strategic vision for the company.

44) What a company's top executives are saying about where the company is headed long term with respect to its future product-market-customer-technology mix A) indicates what kind of business model the company is going to have in the future. B) constitutes the strategic vision for the company. C) signals what the firm's emergent strategy will be. D) serves to define the company's business plan. E) indicates what kind of products and services the company plans to offer in the future.

B) clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction.

45) One of the important benefits of a well-conceived and well-stated strategic vision is to A) clearly delineate how the company's business model will be implemented and executed. B) clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction. C) set forth the firm budgetary objectives in clear and fairly precise terms. D) help create a balanced scorecard approach to objective setting and not stretch the company's resources too thin across different products, technologies, and geographic markets. E) indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the industry leader.

A) what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer focus will be."

46) The defining characteristic of a well-conceived strategic vision is A) what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer focus will be." B) that it not stretch the company's resources too thin across different products, technologies, and geographic markets. C) clarity and specificity about "who we are, what we do, and why we are here." D) that it be flexible and operate in the mainstream. E) that it be within the realm of what the company can reasonably expect to achieve within four years.

C) What business approaches and operating practices should we consider in trying to implement and execute our business model?

47) When company managers are in the process of thinking strategically about what directional path should be taken by the company, they are not likely to ask which question? A) Is the outlook for the company promising if it continues with its present product offerings? B) Are changing market and competitive conditions acting to enhance or weaken the company's prospects? C) What business approaches and operating practices should we consider in trying to implement and execute our business model? D) What strategic course offers attractive opportunity for growth and profitability? E) What, if any, new customer groups and/or geographic markets should the company get in position to serve?

E) Do we have a better business model than key rivals

48) Company managers are unlikely to consider this question when choosing to pursue one strategic course or directional path versus another 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

C) graphic, directional, and focused.

49) Characteristics of an effectively worded strategic vision statement are most likely to include A) balanced, responsible, and rational. B) challenging, competitive, and "set in concrete." C) graphic, directional, and focused. D) realistic, customer-focused, and market-driven. E) achievable, profitable, and ethical

D) consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support).

50) An effectively worded strategic vision statement is not likely to be A) directional (is forward-looking, describes the strategic course that management has charted that will help the company prepare for the future). B) easy to communicate (is explainable in 5 to 10 minutes, and can be reduced to a memorable slogan). C) graphic (paints a picture of the kind of company management is trying to create and the market position(s) the company is striving to stake out). D) consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support). E) focused (provides guidance to managers in making decisions and allocating resources).

B) flexible—adjustable according to changing circumstances.

51) The wording of a company's vision statement should commonly be A) vague or incomplete—short on specifics. B) flexible—adjustable according to changing circumstances. C) bland or uninspiring—short on inspiration. D) generic—could apply to almost 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).

C) too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives.

52) Common shortcomings of company vision statements include A) too specific and too flexible. B) unrealistic, unconventional, and unbusinesslike. C) too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives. D) too graphic, too narrow, and too risky. E) not customer-driven, out of step with emerging technological trends, and too ambitious.

C) reiterate the company's need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold.

53) Breaking down resistance to a new strategic vision typically requires that management, on an as-needed basis, A) institute a balance scorecard to measuring company performance, with the balance including a mixture of both old and new performance measures. B) inform company personnel about forthcoming changes in the company's strategy. C) reiterate the company's need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold. D) explain all updates and merits of the company's business model to align strategy with employee concerns. E) raise wages and salaries to win the support of company personnel for the company's new direction

B) should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction.

54) An engaging and convincing strategic vision A) ought to put "who we are and what we are doing" in writing rather than orally so as to leave no room for company personnel to misinterpret what the strategic vision really is. B) should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction. C) tends to be more effective when top management avoids trying to capture the essence of the strategic vision in a catchy slogan. D) is most efficiently and effectively done by posting the strategic vision prominently on the company's website and encouraging employees to read it. E) should be explained after the company's strategic intent, strategy, and business model have been conveyed to company personnel

C) adopting a catchy slogan and then using it repeatedly to illuminate the direction and purpose of "where we are headed and why."

55) The managerial task of effectively conveying the essence of the strategic vision is made easier by A) having operating strategies that are easy for company personnel to understand and execute. B) combining the strategic vision and the company's values statement into a single document. C) adopting a catchy slogan and then using it repeatedly to illuminate the direction and purpose of "where we are headed and why." D) waiting until the company realizes its mission and ensures the existing corporate culture is compatible with the new vision and direction. E) distributing written statements that explain "where we are going and why."

A) explaining "where we are going and why" and, more importantly, inspiring and energizing company personnel to unite to get the company moving in the intended direction.

56) Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of A) explaining "where we are going and why" and, more importantly, inspiring and energizing company personnel to unite to get the company moving in the intended direction. B) helping company personnel understand why making a profit and having a business plan are so important. C) making it easier for top executives to set and communicate the company's stretch objectives. D) helping lower-level managers and employees better understand the company's business model. E) aiding lower-level managers and employees in formulating and achieving a balanced scorecard

B) uniting company personnel behind managerial efforts to get the company moving in the intended direction.

57) Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is 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.

E) help company personnel understand the logic of the company's business model.

58) The benefit of a vivid, engaging, and convincing strategic vision is not its ability to A) crystallize top management's own view about the company's long-term direction. B) reduce the risk of rudderless decision making by managers at all levels of the organization. C) help an organization prepare for the future. D) unite company personnel behind managerial efforts to get the company moving in the intended direction. E) help company personnel understand the logic of the company's business model.

C) avoiding strategic inflection points and management's reaction in aligning decision choices.

59) The payoffs of having a strategic vision that describes management's aspirations for the company's future and the course and direction charted to achieve those aspirations are not typically connected with A) reducing the risks of rudderless decision making. B) helping the organization prepare for the future. C) avoiding strategic inflection points and management's reaction in aligning decision choices. D) helping to crystallize top management's own view about the firm's long-term direction. E) providing a tool for winning the support of organizational members for internal changes that will help make the vision a reality

E) protests from stakeholders that the business is rudderless.

60) A well-conceived and communicated strategic vision ordinarily does not result in A) solidifying senior executives' view of the firm's long-term direction. B) minimizing the risk of rudderless decision making. C) galvanizing organizational members in support of internal changes that will help make the vision a reality. D) assisting the organization in preparing for the future. E) protests from stakeholders that the business is rudderless.

A) Who are we and what do we do?

61) A company's mission statement typically addresses which question? A) Who are we and what do we do? B) What objectives and level of performance do we want to achieve? C) Where are we going and what should our strategy be? D) What approach should we take to achieve sustainable competitive advantage? E) What business model should we employ to achieve our objectives and our vision?

D) mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future.

62) The difference between the concept of a company mission statement and the concept of a strategic vision is that a A) mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets. B) mission statement focuses on the methods needed to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit. C) mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers. D) mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future. E) mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"

B) mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why."

63) The primary difference between a company's mission statement and the company's strategic vision is that a A) mission statement explains why it is essential to make a profit, whereas the strategic vision explains how the company will be a moneymaker. B) mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why." C) mission statement deals with how to please customers, whereas a strategic vision deals with how to please shareholders. D) mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?" E) mission statement addresses "how we are trying to make a profit today," while a strategic vision concerns "how will we make money in the markets of tomorrow?"

E) explain "where we are headed."

64) A company's mission statement does not A) identify the company's services and products. B) specify the buyer's needs that the company seeks to satisfy. C) identify the customer or market that the company intends to serve. D) give the company its own identity. E) explain "where we are headed."

B) objective and a result of what a company does.

65) A company should not couch its mission statement in terms of making a profit because a profit is more correctly an A) obligation and a reason for what a company does. B) objective and a result of what a company does. C) outlay and a rationale for what a company does. D) obligation and a responsibility for what a company does. E) outflow and a right of what a company does.

D) the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission.

66) A company's values or core values concern A) whether and to what extent it intends to operate in an ethical and socially responsible manner. B) how aggressively it will seek to maximize profits and enforce high ethical standards. C) the beliefs and operating principles built into the company's balanced scorecard for measuring performance. D) the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. E) the beliefs, principles, and ethical standards that are incorporated into the company's strategic intent and business model.

E) Google's vision "to organize the world's information and make it universally accessible and useful."

68) A superior example of a company vision that is short, specific, memorable, clearly articulated, and forward-looking is A) Hilton Hotel's vision "to fill the earth with light and the warmth of hospitality." B) Whole Foods' vision "to be a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market." C) Keurig's vision "to become the world's leading personal beverage systems company." D) Nike's vision "to create products, services and experiences for today's athlete while solving problems for the next generation." E) Google's vision "to organize the world's information and make it universally accessible and useful."

A) quantifiable or measurable, and contain deadlines for achievement.

69) Well-stated objectives are A) quantifiable or measurable, and contain deadlines for achievement. B) succinct and concise so as to identify the company's risk and return options. C) broad and take into account views of all the stakeholders. D) directly related to the dividend payout ratio for stockholder returns. E) representative of customers' aspirations for company performance.

A) receiving a bond rating of AA or higher.

92) Financial objectives generally encompass A) receiving a bond rating of AA or higher. B) having broader or deeper technological capabilities than rivals. C) having a wider product line than rivals. D) overtaking key competitors on product performance, quality, or customer service. E) achieving a market share of 9 percent.

B) because without adequate profitability and financial strength, the company's ultimate survival is jeopardized

70) A company needs financial objectives A) to overtake key competitors on such important measures as net profit margins and return on investment. B) because without adequate profitability and financial strength, the company's ultimate survival is jeopardized. C) to convince shareholders that top management is acting in their interests. D) to translate the company's business model into action items. E) to indicate to employees that financial objectives always take precedence over strategic objectives

C) strategic intent

71) What does a company specifically exhibit when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective? A) competitive edge B) sustainable advantage C) strategic intent D) financial strength E) strategic vision

B) it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

72) A company exhibits strategic intent when A) management crafts and adopts a strategic plan. B) it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. C) it aggressively pursues financial objectives, establishing a priority on meeting the performance metrics and instilling a sense of urgency throughout the company. D) management establishes a comprehensive set of financial objectives that meet stockholder expectations. E) it capitalizes on its primary competitive advantage and ensures resources are allocated to maintain its strategy

A) stretch objectives that challenge the organization to deliver stretch gains in performance.

73) Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing A) stretch objectives that challenge the organization to deliver stretch gains in performance. B) mainstay objectives that although are easily attainable, and the company is obligated to meet, they are designed to spur motivation in the workforce. C) financial objectives that drive standardization of cost-efficiency and unify stringent operating specifications. D) a specifically detailed and integrated model of operating policies, practices, and procedures. E) why the company does certain things in trying to please its customers.

B) communicate management's targets for financial performance and achieve strategic objectives.

74) A company needs financial objectives to A) spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment. B) communicate management's targets for financial performance and achieve strategic objectives. C) indicate to employees whether the emphasis should be on earnings per share, return on investment, return on assets, or positive cash flow. D) convince shareholders that top management is acting in their interests. E) counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance.

A) increase earnings per share by 15 percent annually.

75) The best example of a well-stated, specific financial objective is to A) increase earnings per share by 15 percent annually. B) gradually boost market share from 10 percent to 15 percent over the next several years. C) achieve lower costs than any other industry competitor. D) boost revenues by a percentage margin greater than the industry average. E) maximize total company profits and return on investment.

C) overtake key competitors on product performance or quality within three years.

76) A superior example of a well-stated strategic objective is to A) increase revenues by more than the industry average. B) be among the top five companies in the industry in customer service. C) overtake key competitors on product performance or quality within three years. D) improve manufacturing performance by 5 percent within 12 months. E) obtain 150 new customers during the current fiscal year.

B) relate to strengthening a company's overall market standing and competitive position

77) Strategic objectives A) are more essential in achieving a company's strategic vision than are financial objectives. B) relate to strengthening a company's overall market standing and competitive position. C) are more difficult to achieve and harder to measure than financial objectives. D) are generally less important than financial objectives. E) help managers track an organization's true progress better than financial objectives.

C) helping clarify the company's strategic vision and strategic intent.

79) Setting stretch objectives does not provide an organization with the advantage of A) helping to avoid mediocre results. B) pushing company personnel to be more inventive and innovative. C) helping clarify the company's strategic vision and strategic intent. D) helping a company be more focused and intentional in its actions. E) spurring exceptional performance and helping build a firewall against contentment with modest performance gains

C) relentlessly pursues an ambitious strategic objective

80) Strategic intent refers to a situation where a company 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. D) commits to pursuing balanced-scorecard objectives. E) changes its long-term direction and decides to pursue a newly adopted strategic vision.

E) strikes a balance between financial and strategic objectives.

81) A "balanced scorecard" for measuring company performance A) entails putting equal emphasis on financial and strategic objectives. B) entails putting balanced emphasis on profit and nonprofit objectives. C) prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives. D) prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives. E) strikes a balance between financial and strategic objectives.

A) The focus is placed on improving performance in the long term

91) Why should long-run objectives take precedence over short-run objectives? A) The focus is placed on improving performance in the long term. B) Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results. C) Long-run objectives will satisfy shareholder expectations for progress. D) Long-run objectives will force the company to deliver performance improvement in the current period. E) Long-run objectives will keep the company in line with its balanced scorecard.

D) financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company's future financial performance and business prospects

82) A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because A) it assists managers in putting roughly equal emphasis on short-term and long-term performance targets. B) it entails putting equal emphasis on good strategy execution and good business model execution. C) a balanced-scorecard approach pushes managers to avoid strategic management that reflects the results of past decisions and organizational activities. D) financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company's future financial performance and business prospects. E) it forces managers to put equal emphasis on financial and strategic objectives.

B) recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance.

83) Perhaps the most reliable way for a company to improve its financial performance over time is to 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.

D) is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives.

84) A company that pursues and achieves strategic objectives A) is likely to weaken the achievement of its short-term and long-term financial objectives. B) believes that the company's financial performance is not as important as it really is. C) is generally not strongly focused on its true mission of making a profit. D) is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives. E) is likely to be a weak financial performer because diverting resources to the pursuit of strategic objectives takes away from the achievement of financial performance targets.

D) for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units.

85) A company needs performance targets or objectives 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.

A) long-term objectives should take precedence unless the short-term performance targets have unique importance.

87) When trade-offs have to be made between achieving long-term and achieving short-term objectives 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) long-term objectives should never take precedence until the short-term objective is achieved.

A) entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.

88) The task of stitching together a strategy A) entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives. B) is primarily an exercise in deciding which of several freshly emerging market opportunities to pursue. C) is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements. D) requires trying to copy the strategies of industry leaders as closely as possible. E) is mainly an exercise in good planning.

A) Work with business unit heads to strengthen the EO Products' market position by improving the performance of a single line of business unit.

89) You have been hired as a consultant to Brad Black and Susan Griffin-Black, cofounders and top managers of one of the last remaining large independently owned organic beauty companies, EO Products. What business strategy could the partners use to strengthen EO Products' market position and build a competitive advantage over its rivals? A) Work with business unit heads to strengthen the EO Products' market position by improving the performance of a single line of business unit. B) Improve the combined performance of the set of businesses EO Products' has diversified into by capturing cross-business synergies. C) Address the questions of what businesses EO Products' should hold or divest. D) Grow EO Products by acquisition, creation of a strategic alliance, or through internal development. E) Provide guidance to EO Products towards which new markets to enter and how to best enter these new markets.

A) pay attention to early warnings of future change and be willing to experiment to establish a market position in the future.

90) The faster a company's business environment is changing, the more critical it becomes for its managers to A) pay attention to early warnings of future change and be willing to experiment to establish a market position in the future. B) determine whether the company has a balanced scorecard for judging its performance. C) establish controls to monitor the impact of external changes appropriately and ensure the internal environment is maintained. D) replicate and implement only those strategies that have worked for rivals. E) determine what changes should be made to its customer value proposition

D) boosting internal cash flows by 7 percent to fund new brewing research and development activities.

93) Financial objectives for the Henhouse Brewing Company, a craft brewery, include A) introducing five new products over the next 10 years. B) reducing product development time by one-third to half the current rate of 24 months. C) developing stronger national and global distribution capabilities than competitors. D) boosting internal cash flows by 7 percent to fund new brewing research and development activities. E) improving security and stability of information technology capabilities to prevent breaches and outages

B) more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives.

94) Strategy-making is A) primarily the responsibility of key executives rather than a task for a company's entire management team. B) more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives. C) first and foremost the function and responsibility of a company's strategic planning staff. D) first and foremost the function and responsibility of a company's board of directors. E) first and foremost the function of a company's chief executive officer, who formulates strategic initiatives and submits them to the board of directors for approval.

D) CrossFit's board of directors should oversee the response to approve or disapprove of the strategy formulated and proposed by the company's management.

95) CrossFit operates on an affiliate model in which individual gyms—referred to as boxes— pay to affiliate with CrossFit HQ, which, in turn, provides certain benefits such as training, certification, resources, and qualifications for the sports elite events. During late spring 2020, CrossFit HQ and its founder-CEO, Greg Glassman, came under pressure from some of its sponsors and affiliates for not speaking out about important social issues related to civil rights and racial equality, with questions about where the company and its leader stood on the issue of protests that were at the time under way across the United States and in other parts of the world. As a result, many sponsors and affiliates cut ties with CrossFit. Who should oversee CrossFit's response strategy? A) The response should be a team effort, involving managers and often key employees at many levels of the organization. B) Greg Glassman, Cross-Fit's chief executive officer, should oversee the strategy. C) CrossFit's chief strategic planning officer, who should report directly to the company's CEO and board of directors. should oversee the response. D) CrossFit's board of directors should oversee the response to approve or disapprove of the strategy formulated and proposed by the company's management. E) Because each CrossFit manager has a strategy-making role (ranging from major to minor) for his or her area of responsibility, each should oversee the response strategy.

A) extend throughout the managerial ranks and exist in every part of a company— business units, operating divisions, functional departments, manufacturing plants, and sales districts.

96) Managerial jobs with strategy-making responsibility A) extend throughout the managerial ranks and exist in every part of a company— business units, operating divisions, functional departments, manufacturing plants, and sales districts. B) are primarily located in the strategic planning departments of large corporations. C) are relatively rare because most strategy-making is done by the members of a company's board of directors. D) seldom exist within a functional department (e.g., marketing and sales) or in an operating unit (a plant or a district office) because these levels of the organization structure are well below the level where strategic decisions are typically made. E) are found only at the vice-president level and above in most companies.

B) delegation of considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants in companies that are diversified geographically or by product/market.

97) Crafting a company's strategy is best described as A) the exclusive province of top management—owner-entrepreneurs, CEOs, and other very senior executives. B) delegation of considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants in companies that are diversified geographically or by product/market. C) involving the board of directors in the lead role in crafting a company's strategy. D) being assumed by an elite group of corporate entrepreneurs. E) always the product of brilliant corporate entrepreneurs.

98) In a diversified company like Disney Inc., the process of crafting a strategy involves A) determining whether its strategic intent is proactive or reactive. B) a flexible strategic vision and strategic intent. C) changing the base of its strategy-making pyramid as conditions warrant. D) review and approval at every level by the company's board of directors. E) a bundle of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.

98) In a diversified company like Disney Inc., the process of crafting a strategy involves A) determining whether its strategic intent is proactive or reactive. B) a flexible strategic vision and strategic intent. C) changing the base of its strategy-making pyramid as conditions warrant. D) review and approval at every level by the company's board of directors. E) a bundle of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.

A) corporate strategy, business strategies, functional strategies, and operating strategies.

99) The strategy-making hierarchy in a diversified company like Alibaba Group, an e-commerce giant based in China, consists of A) corporate strategy, business strategies, functional strategies, and operating strategies. B) business strategies, functional strategies, and operating strategies. C) its diversification strategy, its line of business strategies, and its operating strategies. D) corporate strategy and a group of business strategies (one for each line of business the corporation has diversified into). E) corporate or managerial strategy, a set of business strategies, and divisional strategies within each business.