QUIZ- Chapter 2

According to Peter Drucker, asking the question "What is our business?" is synonymous with asking the question "What is our vision?" True False

FALSE

A vision statement should answer the question, "What do we want to become?" True False

TRUE

Carefully prepared statements of vision and mission are widely recognized as the first step in strategic management. True False

TRUE

Excess specificity can stifle creativity in the formulation of an acceptable mission or purpose. True False

TRUE

Which type of statement should be created first and foremost? Competitive advantage Objectives Mission Creed Vision

VISION

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

WHAT IS OUR BUSINESS

When developing a mission statement, what is needed before people can focus on specific strategy formulation activities? Negotiation Compromise Eventual agreement Negotiation and Compromise only All of these

ALL OF THESE

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." Markets Concern for Employees Technology Customers Concern for Public Image

CUSTOMERS

Research has failed to find a positive relationship between mission statements and organizational performance. True False

FALSE

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

GENERATING, EVALUATING, AND SELECTING STRATEGIES