MGMT 495 Chapter 1 multiple choice

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision? a. The company will tend to be more flexible when adapting to changing environments b. The company will clearly define how it means to satisfy a customer need c. The company will fail to establish a positive relationship between its vision statement and performance d. The company will have a short-term, unidirectional focus

a. The company will tend to be more flexible when adapting to changing environments

Organizational core values are the answer to which of the following questions? a. What commitments do we make to act both legally and ethically? b. Which of the value chain activities are primary? c. What is the value added to a good or service at each step in the production? d. What is the company's customer lifetime value?

a. What commitments do we make to act both legally and ethically?

An organization's _____ describes what the organization actually does—the products and services it plans to provide, and the markets in which it will compete a. mission b. vision c. promissory note d. code of conduct

a. mission

Which of the following statements is true of customer-oriented visions? a. They tend to force managers to take a myopic view of the business environment b. They define a business in terms of providing solutions to people's needs c. They are inflexible with regard to adapting to changing environments d. They state an organization's goals in terms of a good or service provided to customers

b. They define a business in terms of providing solutions to people's needs

Which of the following actions of an automobile firm will be considered as a strategic commitment? a. the firm launching an existing model of a car in red as a limited edition for six months b. the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future c. the firm spending $100,000 on renting a manufacturing facility to meet the temporary demand for its cars d. the firm promoting its new model of coupe through a free European trip worth $15,000 to be won as an early-bird offer

b. the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy: a. implementation b. formulation c. analysis d. control

c. analysis

How has Walmart staked out a unique strategic position? a. by paying high wages to attract the most talented employees b. by providing excellent customer service in a luxury setting c. by cutting costs to offer lower prices than competitors d. by investing 100% of profits in community development programs

c. by cutting costs to offer lower prices than competitors

A firm is likely to have a competitive advantage when it a. performs at a level similar to the other firms in the industry b. provides goods similar to those of its competitors, but at a higher price c. provides services that consumers will value more than those of its rivals d. minimizes the difference between value creation and the costs involved

c. provides services that consumers will value more than those of its rivals

Which of the following statements will effectively guide a strategist? a. It is necessary to isolate the key stakeholders and their needs when formulating a strategy b. Industry and firm effects that determine firm performance are independent of each other c. Strategy is all about competitive benchmarking and operational effectiveness d. The principles of strategic management can be applied universally to all organizations

d. The principles of strategic management can be applied universally to all organizations

Which of the following statements accurately brings out the difference between an organization's vision and mission? a. Mission is the organization's aspirations for the future and vision is about how these aspirations can be made true over time b. Vision is short-term: oriented and related to the organization's present, whereas the mission is futuristic c. Vision is valid at the functional level of the organization, whereas mission covers the entire organization d. Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished

d. Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished