BUS 450 Chapter 2 Quiz

The recommended length of a mission statement is fewer than ________ words.

100

Most practitioners are academicians of strategic management feel that an effective statement should include __________ mission statement components.

9

All elements of the strategic planning process can change over time except one element that almost never changes. What is that element?

Core value statement.

Which of the following statements is FALSE? a) apple computer's mission statement should open the possibility for diversification by apple into pesticides. b) an overly general mission statement that does not exclude any strategy alternatives could be dysfunctional. c) a mission statement needs to be broad to reconcile differences effectively among- and appeal to- an organization's diverse stakeholders. d) a good mission statement allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity. e) excess specificity in a mission statement would limit the potential of creative growth for the organization.

a) apple computer's mission statement should open the possibility for diversification by apple into pesticides.

If included in a mission statement, the phrase, "we follow the golden rule in all that we do" would satisfy what component? a) philosophy b) markets c) ethics d) self-concept e) integrity

a) philosophy

When should a vision statement reveal the type of business in which the firm engages?

always

Which of the following best describes the vision, "to become the best retailing firm in the USA"? a) admirable b) much too broad c) weak d) too short e) excellent

b) much too broad

Which of the following statements is TRUE? a) an effective mission statement paves the way for an effective vision statement. b) there is no one best mission statement for a particular organization. c) mission statements should not be published for competitors to see. d) mission statements should be employee-oriented first and foremost and shareholder-oriented secondarily. e) a single-division organization could have several mission statements for different purposes.

b) there is no one best mission statement for a particular organization.

Which statement is FALSE? a) some companies develop mission statements simply because owners or top management believe it is fashionable to do so rather than out of any commitment. b) vision statements are more important than mission statements. c) managers at Johnson & Johnson (J&J) meet regularly with employees to review, reword, and reaffirm the firm's vision and mission. d) some strategists spend almost every moment of every day on administrative and tactical concerns, ignoring the importance of a clear mission. e) firms establish their vision and mission before their objectives in doing strategic planning.

b) vision statements are more important than mission statements.

The CEO of LinkedIn is Jeff Weiner, a highly respected corporate leader. What does Weiner say is the most important philosophy of a great leader?

be clear about the organization's vision.

According to Vern McGinnis, a mission statement should do what?

be limited enough to exclude some ventures and broad enough to allow for creative growth.

Which statement is FALSE? a) during the process of developing vision and mission statements, some organizations use discussion groups of managers to develop and modify existing statements. b) the process of developing a mission statement should create an "emotional bond" and "sense of mission" between the organization and its employees. c) an outside person with expertise in developing vision and mission statements who has unbiased views should always manage the statement-development process. d) vision statements should always pass the 5 out of 5 test. e) mission statements should include the 9 components.

c) an outside person with expertise in developing vision and mission statements who has unbiased views should always manage the statement-development process.

Regarding vision statements, which statement below is FALSE? a) vision statements should be one sentence long. b) vision statements should be written from a customer perspective. c) vision statements should do more than identify the product/service a firm offers. d) vision statements should answer the question "what is our mission?" e) firms should develop a vision statement before a mission statement.

d) vision statements should answer the question "what is our mission?"

When comparing mission statements of rival firms, perhaps the most important component to examine is what?

distinctive competence

What characteristic(s) are included among the 5 out of 5 test for vision statements to be exemplary? a) futuristic and objective b) consistent and competitive c) inspiring and complacent d) congruent and congenial e) clear and unique

e) clear and unique

Does including the word "customer" in a mission statement ensure the statement includes the customer component?

no

Why are both profit and vision needed to motivate a workforce effectively?

profit is viewed negatively by some stakeholders of a firm.

The "markets" component of mission statements refers to the _________.

regions in which the company operates.

A mission statement should include the following components:

survival/growth/profitability, philosophy, self-concept, and public image.

A meta-analysis of 20 years of empirical research on mission statements came to what conclusion?

there is a positive relationship between mission statements and measures of financial organizational performance.

King and Cleland recommend that organizations carefully develop a written mission statement in order to reap which benefit?

to provide a basis for the allocation of resources

Asking the question _______ is synonymous with asking, "What is our mission?"

what is our business?

According to Drucker, the most important time to ask seriously, "What do we want to become?" and "What is our business?" is _______.

when a company has been successful.

In multidivisional organizations, should divisional units perform strategic-management tasks, including the development of their own statement of vision and mission?

yes

Is the following statement TRUE? A benefit of developing a comprehensive mission statement is that divergent views among managers can be revealed and resolved through the process.

yes