Strategic Management Exam 1 (Chapters 1-6)

A​ meta-analysis of 20 years of empirical research on mission statements concluded there is a positive relationship between mission statements and​ ______.

measures of financial performance

Some firms view planning as a waste of time because​ ______.

no product or service is produced

Guidelines, rules, and procedures established to support implementation efforts are called​ _____.

policies

According to the​ chapter, the worst thing strategists can do is to develop strategic plans and then​ ____.

present the plans to operating managers to execute

One benefit of strategic planning is that it allows a firm to be​ _______ in shaping its own future.

proactive

In​ forecasting, strategists identify future occurrences that could have a major effect on the​ firm, and, based on that make​ __________.

reasonable assumptions

One broad skill students can gain by taking this course is​ ______.

to define and solve problems and make decisions about a particular situation

Quality mission statements identify the​ ______ of a​ firm's products to its customers.

utility

A mission statement reveals​ ______.

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

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

When identifying and prioritizing key external factors in strategic​ planning, four criteria should be met to the extent possible. What are these four​ criteria?

​actionable, quantitative,​ comparative, and divisional

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 of the following is a pitfall of strategic​ planning?

Being so formal in planning that flexibility and creativity are stifled

Chapter 2

Business Vision and Mission

Under which condition can consumers gain increasing bargaining​ power?

If they can inexpensively switch to a substitute

Which of the following is NOT a pitfall of strategic​ planning?

Involving key employees in all phases of planning

Which of the following is a characteristic of a good mission​ statement?

It reveals that the firm is socially responsible.

For industries and firms that depend heavily on government contracts or​ subsidies, which forecasts can be the most important part of an external​ audit?

Political

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

Profit is viewed negatively by some stakeholders of a firm.

Which of the following four types of strategies are developed in a SWOT​ (Strengths-Weaknesses-Opportunities-Threats) Analysis?

SO, WO,​ ST, WT

Recent research by Rose and Cray examined the​ strategic-management process and concluded that perhaps the most important​ "activity" is​ what?

The feedback loop

Historically, where did strategic planning​ originate?

The military

What should a vision statement​ reveal?

The type of business a firm conducts

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.

Which of the following statements is​ TRUE? Chapter 2

There is no one best mission statement for a particular organization.

Which of the following is a reason some firms do not engage in strategic​ planning?

They receive no formal training in strategic management.

Unskilled leaders work out their conflicts in courtrooms and battlefields. Brilliant strategists rarely go to battle or to court. How do they usually achieve their​ objectives?

Through tactical positioning well in advance of any confrontation

What is the most important part of an external​ audit?

To develop a finite list of opportunities that could benefit a firm as well as threats that should be avoided or mitigated

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

​Generally, in​ war, the best policy is to take a state intact rather than to ruin it.​ Likewise, the best objective is to capture the​ enemy's army,​ regiment, company, or squad intact rather than destroy them. Winning 100 victories in 100 battles is not the epitome of skill. What is the epitome of​ skill?

To subdue the enemy without fighting

According to recent research by​ Cuddy, Fiske, and​ Glick, what ethics​ variable(s) is most important in doing​ business?

Trustworthiness

Who​ said, "Perfection is not attainable. But if we chase​ perfection, we can catch​ excellence"?

Vince​ Lombardi, Head Coach Green Bay Packers ​(1959-​67)

In a​ business, which of the following should be established​ first?

Vision statement

Which statement is​ FALSE?

Vision statements are more important than mission statements.

Regarding vision​ statements, which statement below is​ FALSE?

Vision statements should answer the question​ "What is our​ mission?"

The vision statement answers which of the following​ questions?

What do we want to​ become?

What question does a mission statement​ answer?

What is our business or reason for​ being?

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

What is our​ business?

According to the model used in this​ text, what should be answered when developing a strategic​ plan?

Where are we​ now, where do we want to​ go, and how are we going to get​ there?

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

Strengths and weaknesses can be determined by elements of being rather than performance. For​ example, ______.

a strength may involve ownership of natural resources

Which of the following EFE scores indicates that a firm is weak at responding to external​ factors?

1.2

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

100

Most practitioners and academicians of strategic management feel that an effective statement should include​ ______ mission statement components.

9

What element of strategic management answers the question​ "What do we want to​ become?"

A vision statement

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

Always

Which statement​ FALSE?

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

Which of the following statements is​ FALSE?

Apple​ Computer's mission statement should open the possibility for diversification by Apple into pesticides.

What​ characteristic(s) are included among the 5 out of 5 test for vision statements to be​ exemplary?

Clear and unique

An effective vision statement should exhibit 5 characteristics. What are​ they?

Clear, futuristic,​ concise, unique, inspiring

Dale McConkey​ said, "Plans are less important than​ planning." What does this statement​ mean?

Communication, understanding, and commitment are vitally important in strategic planning.

Business strategy is based on the assumption of competition. Upon which assumption is military strategy​ based?

Conflict

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 is considered an unpublished source for external​ information?

Customer surveys

Which of the following activities is included in strategy​ implementation?

Develop a​ strategy-supportive culture and create an effective organizational structure.

What is often considered the first step in strategic​ planning?

Developing a vision statement

Which of the following is considered a published source for external​ information?

Directories

According to the authors of the​ text, what is the most important component of a mission​ statement?

Distinctive competence

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

Distinctive competence

According to the​ chapter, a pitfall to watch for and avoid in strategic planning​ is:

Doing strategic planning only to satisfy accreditation or regulatory requirements

​______ is the act of strengthening​ employees' sense of effectiveness by encouraging them to participate in decision making and to exercise initiative and​ imagination, and then rewarding them for doing so.

Empowerment

Which of the following is listed in the chapter as a reason often given for poor or no strategic planning in a​ firm?

Laziness

Which of the following best describes the​ vision, "To become the best retailing firm in the​ USA"?

Much too broad

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

No

If included in a mission​ statement, the​ phrase, "We follow the golden rule in all that we​ do" would satisfy what​ component?

Philosophy

Which of the following is NOT true concerning​ forecasts?

Sometimes, wild guesses are acceptable as forecasts.

Which of the following is NOT identified as a component of mission​ statements?

Stock price

The term strategic planning is used synonymously in this text with what other​ term?

Strategic management

_____ is the science of planning and directing​ large-scale military​ operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy.

Strategy

In which stage of the strategic management process is an organization likely to develop a mission​ statement?

Strategy formulation

A mission statement should include the following​ components:

Survival/growth/profitability, philosophy,​ self-concept, and public image

Chapter 3

The External Assessment

Chapter 1

The Nature of Strategic Management

In great​ companies, core values​ ______.

almost never change

To survive and​ prosper, a business must gain and sustain​ ______ major competitive advantages over rival firms.

at least several

Official business failure calculations include​ _____.

liquidations and​ court-mandated receiverships

According to Chapter​ 1, ______ may be the most important word in management.

communication

Apple's financially lean position with regard to manufacturing facilities provides the firm with a​ _______ over​ Sony, which invests heavily in manufacturing facilities.

competitive advantage

Analytical thinking and intuitive thinking​ ______.

complement each other

Strategic management is based on the idea that organizations should monitor internal and external trends​ _____.

continually

To create an excellent vision and​ mission, a firm needs core values. These core values​ ______ for the vision and mission.

create an ethical foundation

In generating the list of critical success factors in a​ CPM, a firm should strive to include factors that​ ______.

differentiate firms within the industry

A firm can achieve sustained competitive advantage by​ _____.

effectively​ formulating, implementing, and evaluating strategies that capitalize on changes in trends and internal capabilities

Three primary intrinsic benefits of strategic planning include​ ______.

enhanced​ communication, deeper​ understanding, and greater commitment

The EFE Matrix provides an empirical assessment of how well a firm is handling​ ______.

external factors overall

One specific skill students can gain from this course is​ ________.

formulating strategies using a SWOT analysis

A mission statement should be written​ ______.

from a customer perspective

The logical starting point for strategic management is to​ ______.

identify the existing​ vision, mission,​ objectives, and strategies

The​ strategic-management process can be described as an​ objective, logical, systematic approach for making major decisions in an organization.​ However, it is generally recognized that​ ______ is essential to making good strategic decisions.

intuition

The​ "markets" component of mission statements refers to​ the_____.

regions in which the company operates

A fundamental​ strategy-evaluation activity​ includes_____.

reviewing external and internal factors that are the bases for current​ strategies, measuring​ performance, and taking corrective actions

Building four new manufacturing plants in Europe is an example of​ a(n) ______.

strategy

The strategic management process begins​ with______.

strategy formulation

Perhaps the best way to develop a skill for writing and evaluating mission statements is to​ ______.

study actual company missions

The focus of strategic management is​ ______.

the integration of all the functional areas of the business to achieve its organizational objectives

The principal benefit of vision and mission statements as tools of strategic management is derived from​ ______.

their specification of the ultimate aims of a firm