CH 2

Strategic commitments are actions that are A) inexpensive. B) long-term-oriented. C) easy to reverse. D) easy to imitate.

B

Visionary companies are able to outperform their competitors because A) their vision statements are more product-oriented. B) they provide more aspirational visions. C) their visions are primarily financial. D) they isolate internal stakeholders in defining their visions.

B

Deep Earth Gardening has a vision of helping every American learn how to grow their own food. Its management team recently unveiled the mission statement "A garden at every home." What is wrong with this mission statement? A) It does not indicate how the company will accomplish its goals. B) It does not include a stretch goal. C) It is not inspirational and motivating for employees. D) It is too specific.

A

Do vision statements help firms gain and sustain competitive advantage? A) It depends, because the effectiveness of vision statements differ by type. B) Yes, but only if the vision statements are short, concise and are well written. C) No, vision statements do not, but mission statements do. D) Only if the vision statement follows the strategic management process.

A

To be effective, firms need to A) back up their visions with strategic commitments that are costly and difficult to reverse. B) increase their strategic flexibility by developing product-oriented vision statements. C) isolate top managers from the organizational values. D) pursue visions that are exclusively financial and not aspirational.

A

Which of the following best represents a customer-oriented vision statement? A) "We provide solutions to professional communication needs." B) "We are in the typewriter business." C) "To be the safest, most progressive North American railroad." D) "We aim to build the fastest computing devices in the World."

A

Which of the following is an example of a business acting upon an organizational core value? A) Emerald Autos reduces engine emissions below federal guidelines to reduce pollution. B) Emerald Autos lowers its retail prices to gain an advantage over its closest competitor. C) Emerald Autos finances research for developing more powerful engines. D) Emerald Autos launches an ad campaign that promotes the company as being environmentally friendly.

A

Which of the following statements about product-oriented visions is true? A) They tend to force managers to take a myopic view of the competitive landscape. B) They allow companies to effectively adapt to changing environments. C) They define a business in terms of providing solutions to customers. D) They allow firms to set goals that focus primarily on filling the organization's needs.

A

Which of the following strategy plans might work best in an industry that is considered a fast-changing environment with new laws going into effect regularly? A) scenario planning B) top-down planning C) bottom-up planning D) dominant planning

A

Which of the following summarizes the difference between a firm's vision and mission? A) A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision. B) A vision states the ethical values of a firm; a mission states the monetary goals of a firm. C) A vision states how much a firm wants to earn; a mission states how these earnings will be accomplished. D) A vision states the management values of a firm; a mission states the values of the other workers.

A

________ are considered the ethical standards and norms that govern the behavior of individuals within a firm. A) Organizational core values B) Mission statements C) Vision statements D) Strategic leadership

A

Which of the following statements is true of customer-oriented visions? A) Customer-oriented visions identify how a customer need will be met. B) Customer-oriented vision statements are not the same as listening to your customer. C) Customer-oriented visions reduce a company's ability to adapt to a changing environment. D) Customer-oriented visions define a business in terms of goods or services provided.

B

Strategic commitments are actions that are A) inexpensive, long-term-oriented, and difficult to reverse. B) inexpensive, short-term-oriented, and easy to reverse. C) costly, long-term-oriented, and difficult to reverse. D) costly, short-term-oriented, and easy to reverse.

C

The CEO of EveryCar was the child of parents who had difficulty making enough money to support their family. As a result, he and his siblings did not have access to many advantages that children from wealthier families had. This CEO, therefore, emphasized making affordable, low-maintenance vehicles that could be bought by low-income households. Which of the following does this example demonstrate? A) dominant strategic planning B) Level-5 leadership pyramid C) upper-echelons theory D) scenario planning

C

The process that describes the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage is called A) strategic process. B) strategic technology. C) strategic management. D) strategic planning.

C

Which of the following is a customer-oriented vision? A) to be the most progressive insurance company B) to be the best automobile company in the world C) to enable businesses to improve their employee communications D) to manufacture innovative products through continuous learning

C

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented? A) Customer-oriented visions tend to have a more short-range view of changing environments. B) Customer-oriented visions tend to have a more myopic view of changing environments. C) Customer-oriented visions tend to be more flexible when adapting to changing environments. D) Customer-oriented visions tend to be more stable when dealing with changing environments.

C

A customer-oriented vision statement focuses employees to think about how best to A) make a product easier to use. B) increase their efficiency to benefit consumers. C) improve a popular product. D) solve a problem for a consumer.

D

Brandon is part of a sales team. He effectively coordinates his tasks with others in the team and willingly contributes to their efforts in achieving the team's objectives. Thus, Brandon is in ________ of the Level-5 leadership pyramid. A) Level 5 B) Level 4 C) Level 3 D) Level 2

D

Rub A Dub is a company that manufactures hot tubs. Which of the following best illustrates a product-oriented vision for Rub A Dub? A) to make people's lives simple and easy B) to demonstrate to customers the health benefits of hot tubs C) to help people improve the value of their homes D) to be the pioneering manufacturer of hot tubs

D