Strategic Management Ch. 2

Mission Statement Components

(1) customers- present and potential (2) products and services- major products/services (3) markets - geographically where? (4) technology - tech current? (5) concern for survival, growth, and profitability - committed to growth and financial soundness? (6) philosophy - beliefs, values, ethical priorities 7) self-concept (distinctive competence)- major competitive advantage (8) concern for public image (9) concern for employees

Vision Statement Characteristics CFCUI 5-out of 5 test

- what do we want to become? - establish first -Clear: type of industry and what firms strives to become -futuristic: strive or accomplish w/in 5 years - concise: one sentence - unique: reveal's competitive advantage - inspiring: motivate reader to support firm

Mission Statement

-reason for being; "what is our business" "what is our purpose?" what do we want to be? who do we want to serve?

Quality mission statements identify the​ ______ of a​ firm's products to its customers. A. scope B. availability C. price D. utility E. quality

D. utility

A mission statement reveals​ ______. A. what an organization wants to be and how it will compete in its industry B. against whom an organization wants to compete and how it will do so C. how an organization will compete in its industry and its profit goals D. what an organization wants to be and whom it wants to serve E. an​ organization's revenue and profit goals

D. what an organization wants to be and whom it wants to serve

core values statement

statement of principles to guide an organization as it works to achieve its vision and fulfill its mission, for both internal conduct and external interactions; it often includes explicit ethical considerations

Mission Statement AKA

creed statement statement of purpose statement of philosohpy statement of beliefs statement of business principles

Benefits of Vision and Mission Statements

1) clarity of purpose among managers/employees 2) basis for all other strategic planning 3) provide direction 4) provide a focal point for all stakeholders 5) resolve divergent views 6) promote a sense of shared expectations 7) project sense of worth and intent 8) project an organized, motivated organization worth of support 9) achieve higher org performance 10) achieve synergy

Characteristics of Mission statement

1) define what an organization is 2) limited enough to exclude some ventures, broad enough to allow for creative growth 3 distinguish from others 4) service as a framework for evaluating activities 5) stated in terms clear enough to be widely understood

Characteristics of Mission statement

1. Broad in scope; does not include monetary amounts, numbers, percentages, ratios, or objectives 2. Fewer than 100 words in length 3. Inspiring 4. Identifies the utility of a firm's products 5. Reveals that the firm is socially responsible 6. Reveals that the firm is environmentally responsible 7. Includes nine components: customers, products or services, markets, technology, concern for survival/growth/profits, philosophy, self-concept, concern for public image, concern for employees 8. Reconciliatory: broad appeal among stakeholders 9. Enduring

Which of the following is a characteristic of a good mission​ statement? A. It reveals that the firm is socially responsible. B. It is cast in stone. C. It is written from the​ company's perspective. D. It is more than 150 words long. E. It is narrow in scope.

A. It reveals that the firm is socially responsible.

To create an excellent vision and​ mission, a firm needs core values. These core values​ ______ for the vision and mission. A. create an ethical foundation B. assess the competition C. predict the​ firm's future D. outline the strategic plan E. define the​ firm's long-term objectives

A. create an ethical foundation

Perhaps the best way to develop a skill for writing and evaluating mission statements is to​ ______. A. study actual company missions B. use templates available on the web C. use an outside consultant D. copy​ competitor's mission statements E. attend training workshops

A. study actual company missions

Which of the following is NOT identified as a component of mission​ statements? A. Markets B. Stock price C. Public image D. Profitability E. Customers

B. Stock price

hat should a vision statement​ reveal? A. Where the firm wants to be in ten years B. The type of business a firm conducts C. A concise history of the firm D. The​ firm's core values E. The​ firm's mission

B. The type of business a firm conducts

The vision statement answers which of the following​ questions? A. What do we stand​ for? B. What do we want to​ become? C. What are our​ markets? D. What is our​ purpose? E. Where do we want to​ operate?

B. What do we want to​ become?

A mission statement should be written​ ______. A. only by senior management B. from a customer perspective C. to replace a vision statement D. as an internal tool not to be made public E. so it never needs to be changed

B. from a customer perspective

An effective vision statement should exhibit 5 characteristics. What are​ they? A. ​Clear, futuristic,​ expansive, unique, inspiring B. ​Clear, futuristic,​ concise, unique, inspiring C. ​Clear, current,​ expansive, creative, adaptable D. ​Clear, futuristic,​ concise, creative, adaptable E. ​Clear, current,​ concise, unique, inspiring

B. ​Clear, futuristic,​ concise, unique, inspiring

In great​ companies, core values​ ______. A. change often to reflect environmental changes B. are stated but typically not practiced C. almost never change D. are put on the company website E. are secondary to the vision and mission

C. almost never change

The principal benefit of vision and mission statements as tools of strategic management is derived from​ ______. A. removing the need for strategic management B. their focus on company performance C. removing the need for the firm to focus on ethics D. their specification of the ultimate aims of a firm E. their quantitative outlines for profitability

D. their specification of the ultimate aims of a firm

A​ meta-analysis of 20 years of empirical research on mission statements concluded there is a positive relationship between mission statements and​ ______. A. employee turnover B. organizational efficiency C. customer satisfaction D. measures of financial performance E. employee satisfaction

D. measures of financial performance

According to the authors of the​ text, what is the most important component of a mission​ statement? A. Technology B. Philosophy C. Customers D. Employees E. Distinctive competence

E. Distinctive competence

In a​ business, which of the following should be established​ first? A. Strategy B. Mission statement C. ​Long-term objectives D. Creed statement E. Vision statement

E. Vision statement

What question does a mission statement​ answer? A. What are our​ long-range objectives? B. What are our core​ values? C. Where do we want to be in five​ years? D. What is our​ vision? E. What is our business or reason for​ being?

E. What is our business or reason for​ being?