490 exam #1

118) The critiqued mission statements of PepsiCo and Royal Caribbean; both lacked the following component(s). A) Customer B) Public Image C) Employees D) Both Customer Component and Employees Component E) None of the above

A

74) Which of the following is often considered to be the first step in strategic planning? A) Developing a vision statement B) Establishing goals and objectives C) Making a profit D) Developing a mission statement E) Determining opportunities and threats

A) Developing a vision statement

18) What is the first step in the comprehensive strategic-management model? A) Developing vision and mission statements B) Performing external audits C) Performing internal audits D) Measuring and evaluating performance E) Establishing long-term objectives

A) Developing vision and mission statements

25) During what stage of strategic management are a firm's specific internal strengths and weaknesses determined? A) Formulation B) Implementation C) Evaluation D) Feedback E) Goal-setting

A) Formulation

33) In which phase of strategic management are long-term objectives especially important? A) Formulation B) Control C) Evaluation D) Implementation E) Management

A) Formulation

28) What types of skills are especially critical for successful strategy implementation? A) Interpersonal B) Marketing C) Technical D) Conceptual E) Visionary

A) Interpersonal

35) According to Campbell and Yeung, what is/are most likely associated with behavior and the present? A) Mission B) Values C) Long-term objectives D) Vision E) Possibilities

A) Mission

1) All of the following are mentioned as places where vision and mission statements can often be found EXCEPT A) SEC reports. B) annual reports. C) customer service agreements. D) supplier agreements. E) business plans.

A) SEC reports.

55) What are the means by which long-term objectives will be achieved? A) Strategies B) Strengths C) Weaknesses D) Policies E) Opportunities

A) Strategies

49) Which individuals are most responsible for the success and failure of an organization? A) Strategists B) Financial planners C) Personnel directors D) Stakeholders E) Human resource managers

A) Strategists

30) ________ is NOT a strategy-implementation activity. A) Taking corrective actions B) Establishing annual objectives C) Devising policies D) Allocating resources E) Motivating employees

A) Taking corrective actions

20) According to Drucker, which question is synonymous with asking "What is our mission?"? A) What is our business? B) How can we improve ourselves? C) What do we want to become? D) Who are our stakeholders? E) How can we increase profitability?

A) What is our business?

78) Strategic management enables an organization to ________, instead of just responding to threats in its business environment. A) be proactive B) be immune to threats C) avoid responsibility for shaping its future D) relinquish control over its destiny E) be reactive

A) be proactive

87) The Internet has transferred power from ________ to ________. A) businesses; individuals B) governments; businesses C) individuals; businesses D) businesses; governments E) individuals; governments

A) businesses; individuals

59) All stakeholders' claims on an organization ________ pursued with equal emphasis. A) cannot be B) should always be C) are required to be D) must ideally be E) can usually be

A) cannot be

84) Anything that a firm does especially well compared to rival firms is referred to as A) competitive advantage. B) comparative disadvantage. C) opportunity cost. D) unsustainable advantage. E) an external opportunity.

A) competitive advantage.

63) An overly general mission statement that ________ could be dysfunctional. A) does not exclude any strategy alternatives B) encourages management creativity C) excludes all diversification D) endorses the consideration of feasible potential strategies E) allows for the generation and consideration of a range of alternative objectives

A) does not exclude any strategy alternatives

60) All stakeholders A) have claims and concerns about an organization, but these claims and concerns vary. B) have the same claims and concerns about an organization. C) have ownership rights in an organization. D) have the same voting rights in an organization. E) have environmental concerns as their top priority.

A) have claims and concerns about an organization, but these claims and concerns vary.

74) An effective mission statement should do all of the following EXCEPT A) include monetary amounts, numbers, percentages and ratios. B) be inspiring. C) reveal that the firm is environmentally responsible. D) identify the utility of a firm's products. E) be reconciliatory.

A) include monetary amounts, numbers, percentages and ratios.

31) Strategy evaluation is necessary because A) internal and external factors are constantly changing. B) the SEC requires strategy evaluation. C) success today is a guarantee of success tomorrow. D) the IRS requires strategy evaluation. E) firms have limited resources

A) internal and external factors are constantly changing.

67) According to McGinnis, a mission statement should be all of the following EXCEPT A) it should be broad enough to include all ventures. B) it should be stated in clear terms. C) it should distinguish an organization from all others. D) it should define what an organization is. E) it should serve as a framework for evaluating both current and prospective activities.

A) it should be broad enough to include all ventures.

115) A strong ________ heritage underlies the study of strategic management. A) military B) government C) political D) social E) cultural

A) military

81) Organizations using strategic management are generally ________ than those that do not. A) more profitable B) more complex C) less profitable D) less successful E) less complex

A) more profitable

111) Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems A) on the battlefield. B) in the boardroom. C) on the trading floor. D) in the military hierarchy. E) in interpersonal relationships

A) on the battlefield.

26) An important activity in ________ is taking corrective action. A) strategy evaluation B) strategy implementation C) strategy formulation D) strategy leadership E) all of the above

A) strategy evaluation

52) Generally, external opportunities and threats are A) uncontrollable by a single organization. B) unable to have a significant impact on an organization. C) not worth monitoring and evaluating. D) key functions in strategy implementation. E) key functions in strategy exploitation.

A) uncontrollable by a single organization.

106) All of these are pitfalls an organization should avoid in strategic planning EXCEPT A) using plans as a standard for measuring performance. B) using strategic planning to gain control over decisions and resources. C) failing to involve key employees in all phases of planning. D) too hastily moving from mission development to strategy formulation. E) being so formal in planning that flexibility and creativity are stifled.

A) using plans as a standard for measuring performance.

69) Good mission statements identify the ________ of a firm's products to its customers. A) utility B) price C) profit margin D) demand E) popularity

A) utility

2) The process of performing an external audit needs to include A) only top level managers, as it is a planning function. B) as many managers and employees as possible. C) primarily front-line supervisors. D) between 15 to 20 managers for it to be valid. E) stockholders and external government agencies.

B

32) The process of developing a vision and mission statement often includes which of these as the first activity? A) Requesting that managers modify the current documents B) Asking managers to read selected articles about vision and mission statements C) Asking managers to prepare a vision statement for the organization D) A brainstorming session on whether the organization should have only a vision statement E) Merging several mission statements into one document

B) Asking managers to read selected articles about vision and mission statements

104) The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services." A) Markets B) Customers C) Concern for Employees D) Concern for Public Image E) Technology

B) Customers

70) Which of these examples of a mission statement focus area does NOT identify the utility of the firm's products to its customers? A) AT&T focuses on communication rather than telephones. B) ExxonMobil focuses on oil and gas rather than energy. C) Union Pacific focuses on transportation rather than railroads. D) Universal Studios focuses on entertainment rather than movies. E) A clothing retailer focuses on attractive looks rather than on clothes.

B) ExxonMobil focuses on oil and gas rather than energy.

07) Which of the following is NOT a pitfall an organization should avoid in strategic planning? A) Failing to communicate the plan to employees B) Involving all managers rather than delegating planning to a "planner" C) Top managers not actively supporting the strategic-planning process D) Doing strategic planning only to satisfy accreditation or regulatory requirements E) Failing to create a collaborative climate supportive of change

B) Involving all managers rather than delegating planning to a "planner"

50) What are enduring statements of purpose that distinguish one business from other similar firms? A) Policies B) Mission statements C) Objectives D) Rules E) Employee conduct guidelines

B) Mission statements

29) With which phase of strategic management is most strongly associated with "action"? A) Strategy formulation B) Strategy implementation C) Strategy evaluation D) Competing advantages E) Measuring performance

B) Strategy implementation

4) Which type of statement should be created first and foremost? A) Creed B) Vision C) Objectives D) Mission E) Competitive advantage

B) Vision

44) According to Drucker, what is the best time to ask "What do we want to become?" and "What is our business?"? A) When a firm is in decline B) When the firm is successful C) When the firm is in financial trouble D) When the firm is in legal trouble E) When the firm encounters competition

B) When the firm is successful

61) A good mission statement has A) an employee orientation. B) a customer orientation. C) a shareholder orientation. D) an environmental orientation. E) a profit orientation.

B) a customer orientation.

117) Both business and military organizations must ________ and ________ to be successful. A) be impervious to change; continually improve B) adapt to change; constantly improve C) shun change; stay the course D) be impervious to change; stay the course E) none of the above

B) adapt to change; constantly improve

19) The purpose of a mission statement is to declare all of these EXCEPT A) a reason for being. B) an annual financial plan. C) a statement of purpose. D) a statement of beliefs. E) whom an organization wants to serve.

B) an annual financial plan.

31) In the process of developing a mission statement, it is important to involve A) as few managers as possible. B) as many managers as possible. C) upper-level management only. D) lower-level management only. E) the board of directors only.

B) as many managers as possible.

116) Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________. A) conflict; cooperation B) conflict; competition C) cooperation; conflict D) competition; conflict E) cooperation; competition

B) conflict; competition

56) Long-term objectives should be all of the following EXCEPT A) measurable. B) continually changing. C) reasonable. D) challenging. E) consistent.

B) continually changing.

86) The fact that Apple has no manufacturing facilities of its own A) has caused it to build up massive debt on its balance sheet. B) has enabled it to remain financially lean. C) has been problematic for Apple in terms of debt. D) illustrates that having more fixed assets than rival firms can provide major competitive advantages in a global recession. E) means that it is in the same position as Sony.

B) has enabled it to remain financially lean

1) To perform an external audit, a company first must A) get an approval from the Securities and Exchange Commission. B) perform an internal audit. C) gather competitive intelligence and information about external trends. D) hire a consultant to develop a comprehensive strategic plan. E) all of the above

C

79) How do line managers become "owners" of the strategy? A) By attending top manager meetings B) By executing plans formulated by other people C) By involvement in the strategic-management process D) By becoming a shareholder of the firm E) By buying off top managers

C) By involvement in the strategic-management process

71) All of the following utility statements are relevant in developing a mission statement EXCEPT A) Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. B) Do not offer me furniture. Offer me comfort and the quietness of a cozy place. C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things. D) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. E) Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.

C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.

17) Who is referred to as "the father of modern management"? A) Cleland B) Campbell C) Drucker D) McGinnis E) Yeung

C) Drucker

32) In which phase of strategic management are annual objectives are especially important? A) Reduction B) Formulation C) Implementation D) Evaluation E) Policy

C) Implementation

42) Which statement best describes intuition? A) It alone should be used in decision-making. B) It represents a minor factor in decision-making integrated with analysis. C) It should be coupled with analysis in decision-making. D) It is better than analysis in decision-making. E) It is management by ignorance.

C) It should be coupled with analysis in decision-making.

57) What are guides to decision making that address repetitive or recurring situations called? A) Strategies B) Rules C) Policies D) Objectives E) Goals

C) Policies

27) What step in the strategic management process involves mobilizing employees and managers to put strategies into action? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic advantage E) Competitive advantage

C) Strategy implementation

73) What question is asked in conjunction with the philosophy component of a mission statement? A) What are the firm's major products or services? B) Is the firm committed to growth and financial soundness? C) What are the basic beliefs, values, aspirations, and ethical priorities of the firm? D) Is the firm responsive to social, community, and environmental concerns? E) Are employees a valuable asset of the firm?

C) What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

6) Which basic question should the vision statement answer? A) What is our business? B) How can we improve ourselves? C) What do we want to become? D) Who are our stakeholders? E) How can we increase profitability?

C) What do we want to become?

1) The goal of strategic management is to A) achieve competitive advantage. B) maintain competitive advantage. C) achieve and maintain competitive advantage. D) eliminate competitive advantage. E) eliminate and abolish competitive advantage.

C) achieve and maintain competitive advantage.

114) Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources. A) are irrelevant to B) are not enough to surmount C) can overcome D) can lead to E) unite

C) can overcome

4) In recent years, the speedy flow of information through technology has A) made it harder for people worldwide to see how others work and live. B) strengthened national boundaries and made countries more self-contained. C) created a borderless world with global competitors, customers, and citizens. D) ensured that the United States is unrivaled by other companies in all industries. E) made the real flow of financial activity align with political boundaries between countries.

C) created a borderless world with global competitors, customers, and citizens.

58) The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as A) authoritarianism. B) proaction. C) empowerment. D) transformation. E) delegation.

C) empowerment.

8) The strategic-management process A) occurs once a year. B) is a semiannual process. C) is a continuous process. D) applies mostly to companies with sales greater than $100 million. E) applies mostly to small businesses.

C) is a continuous process.

66) In developing a mission statement, arousing emotion A) is not a benefit. B) is futile. C) is important. D) should be avoided if possible. E) is counterproductive.

C) is important.

72) The recommended length of an effective mission statement is ________ words. A) approximately 25 B) no more than 100 C) less than 150 D) at least 300 E) more than 500

C) less than 150

7) The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction. A) logical; systematic; subjective B) intuitive; disorganized; subjective C) logical; systematic; objective D) intuitive; disorganized; objective E) inconsistent; systematic; subjective

C) logical; systematic; objective

53) Specific results an organization seeks to achieve in pursuing its basic mission are A) strategies. B) rules. C) objectives. D) policies. E) tenets.

C) objectives.

5) The ideal length of a vision statement is A) one page. B) several paragraphs. C) one sentence. D) several sentences. E) as long as is necessary to convey the message.

C) one sentence.

24) Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation. A) strategic planning; strategic management B) strategic planning; strategic processing C) strategic management; strategic planning D) strategic management; strategic processing E) strategic implementation; strategic focus

C) strategic management; strategic planning

112) According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy." A) competitive advantage B) war C) strategy D) formulation E) business

C) strategy

54) Internal ________ are controllable activities in an organization that are performed especially well. A) opportunities B) incompetencies C) strengths D) objectives E) factors

C) strengths

113) Business or military success is A) generally the happy result of accidental strategies. B) undermined by the element of surprise. C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions. D) unrelated to external conditions. E) none of the above

C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

36) According to the comprehensive strategic-management model, which step immediately follows the establishment of long-term objectives? A) Developing vision and mission statements B) Performing external audits C) Performing internal audits D) Generating, evaluating, and selecting strategies E) Measuring and evaluating performance

D) Generating, evaluating, and selecting strategies

46) Which best expresses former Colgate CEO Reuben Mark's thoughts on vision? A) It's becoming less important that a clear mission make sense internationally. B) It's essential to drive home different messages in different cultures. C) Keeping the vision simple will never rally everyone to the corporate banner. D) Pushing one vision globally is essential. E) Elevated missions or visions will alienate international markets.

D) Pushing one vision globally is essential.

3) What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic management E) Strategic leading

D) Strategic management

2) Which statement is TRUE? A) Companies must choose between having a mission statement or a vision statement. B) A company can't have a mission statement unless it has a vision statement. C) A vision statement cannot be established until a company has developed its mission statement. D) The vision statement should be established before the mission statement. E) Companies are required by law to have both mission and vision statements.

D) The vision statement should be established before the mission statement.

3) Which of these basic questions should a vision statement answer? A) What is our business? B) What is our core strength? C) What are our challenges? D) What do we want to become? E) Who are our competitors?

D) What do we want to become?

62) The potential for creative growth in an organization can be limited by A) an overemphasis on stakeholders. B) not enough emphasis on stakeholders. C) a mission statement that is too general. D) a mission statement that is too specific. E) a mission statement that is too dynamic.

D) a mission statement that is too specific.

51) An organization's vision statement A) is a constant reminder to its employees of why the organization exists. B) broadly charts the future direction of an organization. C) addresses the basic question: "What is our business?" D) answers the question: "What do we want to become?" E) none of the above

D) answers the question: "What do we want to become?"

21) According to Drucker, a business' mission is the foundation for all of the following EXCEPT A) priorities. B) strategies. C) plans. D) employee wage rates. E) work assignments.

D) employee wage rates.

85) In mass retailing, big-box companies like Walmart, Best Buy, and Sears are A) gaining competitive advantage over smaller stores. B) participating in a dramatic shift to becoming bigger. C) increasing the square-footage of their retail locations. D) finding that less brick and mortar is better. E) noticing a sharp decline in online purchases.

D) finding that less brick and mortar is better.

82) According to Greenley, strategic management offers all of the following benefits EXCEPT A) increased discipline. B) enhanced communication. C) increased synergy. D) increased resistance to change. E) more effective allocation of time and resources.

D) increased resistance to change.

68) An effective mission statement does all of the following EXCEPT A) it reflects judgments about future growth directions that are based upon forward-looking external and internal analyses. B) it provides useful criteria for selecting among alternative strategies. C) it provides a basis for generating and screening strategic options. D) it is static in orientation. E) it should be enduring.

D) it is static in orientation.

29) As indicated in the strategic-management model, a clear ________ is needed before alternative strategies can be formulated and implemented. A) short-term objective B) implementation plan C) audit policy D) mission statement E) evaluation strategy

D) mission statement

0) Annually, ________ businesses in the United States fail. A) exactly 100 B) less than 1,000 C) about 10,000 D) more than 100,000 E) almost 10 million

D) more than 100,000

83) There is a dramatic shift in mass retailing to A) "trading up" and taking customers from more exclusive stores. B) selling only the most expensive merchandise. C) opening dramatically larger supercenters. D) operating stores with less square footage. E) cutting back on their online presence.

D) operating stores with less square footage.

6) An organization should take a(n) ________ approach in its industry. A) adversarial rather than a collegial B) collegial rather than an adversarial C) reactive rather than a proactive D) proactive rather than a reactive E) cooperative rather than a competitive

D) proactive rather than a reactive

65) In order to appeal to diverse stakeholders, an effective mission statement should be A) inflammatory. B) provocative. C) contentious. D) reconciliatory. E) dysfunctional.

D) reconciliatory.

45) Which group would be classified as stakeholders? A) Governments B) Creditors C) Suppliers D) Employees E) All of the above

E) All of the above

47) When developing a mission statement, what is needed before people can focus on specific strategy formulation activities? A) Negotiation B) Compromise C) Eventual agreement D) A and B only E) All of the above

E) All of the above

75) Which of the following is part of the Strategic-Management Model? A) Measure and evaluate performance B) Develop mission and vision statements C) Establish long-term objectives D) Implement strategies E) All of the above

E) All of the above

102) Which of the following is NOT a reason given for poor or no strategic planning in an organization? A) Planning is viewed as a waste of time B) Content with current success C) Too busy "firefighting" to plan ahead D) No monetary rewards for planning E) Trust of management makes it unnecessary

E) Trust of management makes it unnecessary

2) Strategic management focuses on integrating management, ________, and information systems to achieve organizational success. A) marketing B) finance and accounting C) production and operations D) research and development E) all of the above

E) all of the above

5) The strategic-management process is becoming more widely used by A) small firms. B) nonprofit institutions. C) governmental organizations. D) multinational conglomerates. E) all of the above

E) all of the above

34) A(n) ________ with expertise in developing vision and mission statements and with unbiased views, can at times manage the process more effectively than an internal group or committee of managers. A) external group B) external auditor C) outside process analyst D) internal auditor E) outside facilitator

E) outside facilitator

33) After a draft mission statement has been developed, it is important to A) ask managers to read several articles about mission statements as background information. B) vote on the mission statement. C) ask managers to prepare a mission statement for the organization. D) ask managers to seek support for the mission statement from their subordinates. E) request modifications, additions, and deletions.

E) request modifications, additions, and deletions.

30) Effective and carefully planned mission statements A) require major changes every few months. B) require major changes every few quarters. C) require major revision every few years. D) do not require revision. E) require infrequent major changes, but are always subject to revision.

E) require infrequent major changes, but are always subject to revision.

64) The general public is especially interested in ________, whereas stockholders are more interested in ________. A) environmental concerns; social responsibility B) social responsibility; the treatment of employees C) the treatment of employees; environmental concerns D) profitability; social responsibility E) social responsibility; profitability

E) social responsibility; profitability

111) Which of the following is NOT one of the nine recommended components of a mission statement? A) Strategies B) Self-concept C) Employees D) Markets E) Customers

a

105) Which of the following illustrates the self-concept component of a mission statement? A) To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes. B) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees. C) Our emphasis is on North American markets, although global opportunities will be explored. D) To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations. E) In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure our ultimate success.

b

108) Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm? A) Technology B) Philosophy C) Concern for public image D) Customers E) Self-concept

b

106) Effective mission statements can vary in A) length. B) content. C) format. D) specificity. E) all of the above

e

109) Which question(s) is answered in an effective mission statement? A) Is the firm committed to growth and financial soundness? B) Are employees a valuable asset of the firm? C) Geographically, where does the firm compete? D) Who are the firm's customers? E) All of the above questions are answered in an effective mission statement.

e

110) Which question is NOT addressed in an effective mission statement? A) Is the firm committed to growth and financial soundness? B) Are employees a valuable asset of the firm? C) Geographically, where does the firm compete? D) Who are the firm's customers? E) What are the updated balances of leading accounts on the firm's balance sheet?

e