Chapter 1-6 exam Leadership and stratigic management

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

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

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

- What are the updated balances of leading accounts on the firm's balance sheet?

Which of these basic questions should a vision statement answer? - What is our business? - What is our core strength? - What are our challenges? - What do we want to become? - Who are our competitors?

- What do we want to become?

More than ________ businesses in the United States fail annually.

100,000

To gain ________ firms need to provide unique products and services.

A sustainable competitive advantage

External audits attempt to identify key variables that offer ________ responses.

Actionable

Strategic management enables an organization to ________, instead of just responding to threats in its business environment.

Be proactive

All stakeholders' claims on an organization ________ pursued with equal emphasis.

Cannot be

Anything that a firm does especially well compared to rival firms is referred to as

Competitive advantage

Uber has fewer fixed assets than the typical taxi fleet company. This type of benefit that a company such as Uber has is called a(n)

Competitive advantage

A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called

Competitive intelligence

Long-term objectives should be all of the following EXCEPT - Measurable - Continually changing - Reasonable - Challenging - Consistent

Countinually changing

A mission statement should motivate stakeholders to action, as well as be ________-oriented, informative, inspiring, and enduring.

Customer

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."

Customers

In the U.S. food industry, demand for processed packaged foods is ________.

Declining

Which of the following is often considered to be the first step in strategic planning?

Developing a vision statement

The shift to a service economy is an example of a(n) ________ force.

Economic

According to Albert Einstein, "Knowledge is far more important than intuition." - T/F?

False

According to Drucker, the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty. - T/F?

False

An important question a mission statement should answer is, "What do we want to become?" - T/F?

False

Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives. - T/F?

False

By 2030, the Census Bureau projects that the number of Americans age 65 and older will dramatically decrease. - T/F?

False

By the nature of what they do, strategists tend to have similar attitudes, values, ethics, and concerns for social responsibility. - T/F?

False

Despite its great popularity in the 1980s, strategic planning by corporate America is now a valuable though rare activity. - T/F?

False

Enhanced awareness of external threats is a financial benefit of strategic management. - T/F?

False

Identifying an organization's existing vision, mission, objectives, and strategies is the final step for the strategic-management process. - T/F?

False

In the widely used approach discussed in the text book, the first step in the process of developing a mission statement is to ask managers to state what they believe the organization's mission should be. - T/F?

False

Intelligence gathering is an unethical business practice. - T/F?

False

Internal crises give an organization's managers extra time needed to plan ahead. - T/F?

False

Making many intuitive decisions that conflict with the formal plan is a pitfall in strategic planning. - T/F?

False

Mission statements cannot be stated with too high a level of specificity. - T/F?

False

Once an effective strategy is designed, modifications are rarely required. - T/F?

False

One of the criticisms of the Hershey mission statement was that it was too long. - T/F?

False

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0. - T/F?

False

Remaining solely domestic is an increasingly safe strategy for U.S. companies. - T/F?

False

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business. - T/F?

False

The best approach for strategists is to carefully develop strategic plans themselves and then present them to operating managers to execute. - T/F?

False

The critiqued mission statement of Hershey included the distinctive competence component. - T/F?

False

The final stage in strategic management is strategy implementation. - T/F?

False

The most effective strategic management is ritualistic, predictable, and formal. -T/F?

False

The operating philosophy of organizations should be to develop a product and then try to find a market for it. - T/F?

False

While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises. - T/F?

False

Wisconsin was the first state to legalize marijuana. - T/F?

False

According to the comprehensive strategic-management model, which step immediately follows the establishment of long-term objectives?

Generating, evaluating, and selecting strategies

The fact that Apple has no manufacturing facilities of its own

Has enabled it to remain financially lean.

________ is NOT a basic mission of a competitive intelligence program. - Providing a general understanding of an industry - Providing a general understanding of a company's competitors - Identifying industry executives who could be hired by the firm - Identifying areas in which competitors are vulnerable and assessing the impact strategic actions would have on competitors - Identifying potential moves a competitor might make that would endanger a firm's position in the market

Identifying industry executives who could be hired by the firm

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

Include monetary amounts, numbers, percentages and ratios.

Intensity of competition ________ in lower-return industries.

Is highest

What are enduring statements of purpose that distinguish one business from other similar firms?

Mission statements

Organizations using strategic management are generally ________ than those that do not.

More profitable

Annually, ________ businesses in the United States fail.

More than 100,000

Specific results an organization seeks to achieve in pursuing its basic mission are

Objectives

An ________ 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.

Outside facilitator

An organization should take a(n) ________ approach in its industry.

Proactive rather than a reactive

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?

Strategic management

Which of the following is NOT one of the nine recommended components of a mission statement? - Strategies - Distinctive competence - Employees - Markets - Customers

Strategies

Which individuals are most responsible for the success and failure of an organization?

Strategists

Which phase of strategic management is most strongly associated with "action"?

Strategy implementation

_____________ is NOT a strategy-implementation activity.

Taking corrective actions

A clear mission statement describes the values and priorities of an organization. - T/F?

True

A mission statement can sometimes be called a statement of philosophy. -T/F?

True

A mission statement should be broad enough to reconcile differences among an organization's various stakeholders. - T/F?

True

According to George Steiner, a mission statement should be broad in scope, since concrete specification could be the base for rallying opposition. - T/F?

True

All firms have a strategy, even if it is informal, unstructured, and sporadic. - T/F?

True

An effective mission statement generates the impression a firm is successful, has direction, and is worthy of time, support and investment. - T/F?

True

Anything a firm does especially well, compared to rival firms, could be considered a competitive advantage. - T/F?

True

As many managers and employees as possible should be involved in the process of performing an external audit. - T/F?

True

Attracting customers is a major reason for developing a mission statement. - T/F?

True

Competitive intelligence is not corporate espionage. - T/F?

True

Firms can be more proactive with strategic management. - T/F?

True

Firms can be more proactive with strategic management. -T/F?

True

Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industries. - T/F?

True

Good mission statements identify the utility of a firm's products. - T/F?

True

Having a clear mission and vision can provide a basis for a company's internal and external assessments. - T/F/

True

Hiring top executives from rival firms is a way companies obtain competitive intelligence. - T/F?

True

In order to motivate a workforce effectively, both profit and vision are needed. - T/F?

True

Individuals who own stock in a corporation are considered stakeholders. - T/F?

True

Major competitors' strengths may represent key threats. - T/F?

True

One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based. - T/F?

True

Stakeholders both affect and are affected by an organization's strategic decisions. - T/F?

True

The foundation for development of a comprehensive mission statement is provided by a clear vision. - T/F?

True

The lack of monetary rewards is one cause of managers not engaging in strategic planning. - T/F?

True

The weights and total weighted scores in both a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix have the same meaning. - T/F?

True

There are benefits to the U.S. economy resulting from a low value of the U.S. dollar. - T/F?

True

To perform an external audit, a company first must gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends. - T/F?

True

U.S. households are making more and more purchases online. - T/F?

True

Vision and mission statements can often be found in the front of annual reports. - T/F?

True

Too often, strategists develop ________ only when the organization is in trouble.

Vision and mission statements

In the process of developing a mission statement, it is important to involve

as many managers as possible.

The critical success factors in a Competitive Profile Matrix and EFE Matrix include

both internal and external issues.

All stakeholders

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

After a draft mission statement has been developed, it is important to

request modifications, additions, and deletions.

Generally, external opportunities and threats are

uncontrollable by a singe organization.

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

using strategic planning to gain control over decisions and resources.

Good mission statements identify the ________ of a firm's products to its customers.

utility