MGT 4810 Midterm #1
Organizations never develop their own projections.
False
Firms can be more proactive with strategic management.
True
The US is getting older and less white.
True
Vision and mission statements can often be found in the front of annual reports.
True
A vision statement describes an organization's values and priorities.
False
Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode."
False
Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself.
False
Firms, like organisms, must be "adept at adapting" or they will not survive.
True
A firm's philosophy in a mission statement addresses the question, "What is the firm's distinctive competence?"
False
A low value of the dollar means lower exports and higher imports.
False
A mission statement should include a clear summary of an organization's financial status.
False
A mission statement that is limited enough to exclude some ventures is a poor mission statement.
False
A vision statement identifies the scope of a firm's operations in product and market terms.
False
According to Albert Einstein, "knowledge is far more important than intuition".
False
According to Peter Drucker, "imagination is more important than knowledge, because knowledge is limited, whereas imagination embraces the entire world".
False
According to Peter Drucker, asking the question, "What is our business?" is synonymous with asking the question, "What is our vision?"
False
An external audit focuses on identifying and evaluating trends and events within the control of management.
False
By occasionally monitoring external events, companies should be able to identify when change is required.
False
Despite its great popularity in the 1980s, strategic planning by corporate America is now a valuable though rare activity.
False
Economic factors do not have much impact on the attractiveness of strategies.
False
Erosion of the US manufacturing base is reflected in the sharp increase in labor union membership in the last decade.
False
External audits attempt to identify key variables that offer highly intuitive responses.
False
If an organization chooses to have both a mission and a vision, the mission statement should be established first.
False
In most cases, at least 500 words are required to effectively state a mission statement.
False
Intelligence gathering is an unethical nosiness practice.
False
Most traditional retailers have tried in vain to use their online sales to boost in-store sales.
False
Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely.
False
Once an effective strategy is designed, modifications are rarely required.
False
Optimizing for tomorrow the trends of today is the purpose of strategic.
False
The best approach for strategists is to carefully develop strategic plans themselves and then present them to operating managers to execute.
False
The critiqued mission statements of PepsiCo and Royal Caribbean both lacked the "Public Image" component.
False
The increase in high tech manufacturing base in the US is reflected in the sharp increase in labor union membership in the last decade.
False
The most effective strategic management is ritualistic, predictable, and formal.
False
Well-conceived and properly executed mission and vision statements are not subject to revision.
False
Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?"
False
While forecasts might not be perfect, they are never wildly inaccurate.
False
While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises.
False
A good mission statement serves as a framework for evaluating both currect and prospective activities.
True
A mission statement is a declaration of an organization's reason for being.
True
A mission statement should be broad enough to reconcile differences among an organization's various stakeholders.
True
A sense of self-concept is one o the nine components found in a good mission statement.
True
According to Campbell and Yeung, the process of developing a mission statement should create an "emotional bond" and "sense of mission" between the organization and its employees.
True
According to Drucker, the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty.
True
According to George Steiner, a mission statement should be broad in scope, since concrete specifications could be the base for rallying opposition.
True
According to Michael Porter, five competitive forces define the nature of competitiveness in a given industry: 1) rivalry among competing firms, 2) potential entry of new competitors, 3) potential development of substitute products, 4) bargaining power of suppliers, and 5) bargaining power of consumers.
True
According to Peter Drucker, answering the question, "what is our business? is the first responsibility of strategists.
True
All firms have a strategy, even if it is informal, unstructured, and sporadic.
True
An effective CI program allows all areas of a firm to access consistent and verifiable information in making decisions.
True
An effective mission statement generates the impression a firm is succesful, has direction, and is worthy of time, support and investment.
True
Analytical and intuitive thinking should complement each other.
True
Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industries.
True
Forecasts are educated assumptions about future trends and events.
True
Hiring top executives from rival firms is a way companies obtain competitive intelligence.
True
Objectives should be measurable, challenging, reasonable, consistent, and clear.
True
One of the benefits of having a clear mission and vision is the promotion of a sense of shared expectations among all managers and employees.
True
Political issues and stances impact strategic decisions.
True
The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural, demographic, and natural environment forces, 3) political, governmental, and legal forces, 4) technological forces and 5) competitive forces.
True
The foundation for develpoment of a comprehensive mission statement is provided by a clear vision.
True
The lack of monetary rewards is one cause of managers not engaging in strategic planning.
True
The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.
True
The terms strategic management and strategic planning are synonymous in this text.
True
When developing a mission statement, it is usually advisable to involve as few manages as possible.
True
U.S. firms are not being aggressively challenged in the computer industry.
False
Low-preforming firms typically underestimate their competitor's strengths and overestimate their own strengths.
True
The weights and total weighted scores in both a Competitive Profile Matrix and an EFE Matrix have the same meaning.
True
A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an outstanding way to existing opportunities and threats in its industry.
False
A vision statement commonly answers the question, "what is our business?", whereas a mission statement is more likely to answer the question "what do we want to become?".
False
An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.
False
Because the position of Chief Executive Officer (CEO) has assumed much responsibility for strategic management in the last five years, the number of firms with the position of Chief Strategic Officer (CSO) has diminished drastically during this period.
False
By the nature of what they do, strategists tend to have similar attitudes, values, ethics, and concerns for social responsibility.
False
Corporate intelligence is the name for a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business's own goals.
False
In multidivisional organizations, each division should develop a mission statement consistent with and supportive of the corporate mission but use the corporate vision statement instead of a divisional vision statement.
False
In the widely used approach discussed in the textbook, 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.
False
It is predicted that, by 2050, over 25 percent of the population in the US will be 65 years or older.
False
It is unusual for the claims and concerns of a company's stateholders to vary or conflict.
False
Major competitors' strengths are areas of concern, but do not represent key threats to a firm.
False
Major competitors' weaknesses can represent internal opportunities.
False
Middle managers are the most visible and critical of all strategic managers.
False
Military success is usually the happy result of accidental strategies, but business success is the product of continuous attention to changing conditions and insightful adaptations to those conditions.
False
Research has failed to find a positive relationship between mission statements and organizational performance.
False
Stakeholders of an organization include stockholders, customers and creditors, but not competitors.
False
The I/O approach to competitive advantage advocates that internal factors are more important than external factors in a firm achieving competitive advantage.
False
The US has been more active than other nations in protectionist measures and has engaged in many "Buy American" policies.
False
The trend toward an older America is bad news for furniture producers, hotels, airlines, and home builders.
False
The utility statement, "Do not offer me attractive looks; offer me clothes," is relevant in developing a mission statement.
False
There are now more American households consisting of married couples with children than of people living alone or with unrelated people.
False
Application of the strategic-management process is typically more formal in larger and well-established organizations.
True
As many managers and employees as possible should be involved in the process of performing an external audit.
True
By 2075, the United States will have no racial or ethnic majority.
True
Carefully prepared statements of vision and mission are widely recognized as the first step in strategic management.
True
Commitment and understanding may be the most important benefits of strategic management.
True
Customer's and creditors are considered stockholders of an organization.
True
Excess specifically can stifle creativity in the formulation of an acceptable mission or purpose.
True
External audits attempt to identify key variables that offer actionable responses.
True
In most large organizations that engage in strategic management, the formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels: corporate; divisional or strategic business unit; and functional.
True
In multidivisional organizations, each dicision should develop a mission statement consistent with and supportive of the corporate mission.
True
Industry analysis is also referred to as external strategic management audit.
True
Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses.
True
One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based.
True
Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.
True
Protectionism is used by various countries around the world to safeguard their domestic industries.
True
Raising the question "What is our business" may cause a realization of fundamental disagreement among individuals who have worked together for a long time and who think they know each other.
True
Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.
True
Stakeholders both affect and are affected by an organization's strategic decisions.
True
Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.
True
Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.
True
Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm.
True
Substantial research indicates that a healthier workforce can more effectively and efficiently implement strategies.
True
The critical success factors in a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix include both internal and external issues.
True
The strengths and weaknesses of an organization are determined relative to the strengths and weaknesses of its competitors.
True
To be effective, strategic management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.
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.
True
Walgreens and CVS pharmacies are located generally across the street from each other and battle each other every day on price and customer service.
True
When developing a vision statement, input should be received from as many managers as possible.
True
Wisconsin recently passed a law strengthening collective-bargaining rights for the state's public-employee unions.
True
Without reasonable assumptions, the strategy-formulation process could not proceed effectively.
True
In order to moticate a workforce effectively, both profit and vision are needed.
True?
It is predicted that by 2050, over 20 percent of the population in the US will be 65 years or older.
True?
