BUS 195 EXAM 1 CH. 2
A firm's philosophy in a mission statement addresses the question, "What is the firm's distinctive competence?"
FALSE
A mission statement is usually just a simple statement o specific details.
FALSE
AT&T's mission statement focuses on telephones rather than on communication.
FALSE
According to Drucker, the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty.
FALSE
An important question a mission statement should answer is, "What do we want to become?"
FALSE
As presented in the text book, Vern McGinnis believes that a mission statement should empower keenly insightful leadership by an organization's top management.
FALSE
Customer's and creditors are considered stockholders of an organization.
FALSE
In most cases, at least 500 words are required to effectively state a mission statement.
FALSE
In multi-divisional 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
It is unusual for the claims and concerns of a company's stakeholders to vary or conflict.
FALSE
Research has failed to find a positive relationship between mission statements and organizational performance.
FALSE
The mission statement should be short, preferably one sentence.
FALSE
The operating philosophy of organizations should be to develop a product and then try to find a market for it.
FALSE
Union Pacific's mission statement focuses on environmental stewardship rather than on transportation or railroads because good mission statements identify the utility of a firm's products to its customers.
FALSE
Well-conceived and properly executed mission and vision statements are not subject to revision.
FALSE
When developing a mission statement, it is usually advisable to involve as few managers as possible.
FALSE
A good mission statement serves as a framework for evaluating both current and prospective activities.
TRUE
A mission statement can sometimes be called a statement of philosophy
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 of 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 George Steiner, a mission statement should be broad in scope, since concrete specification could be the base for rallying opposition.
TRUE
According to Peter Drucker, answering the question, "What is our business" is the first responsibility of strategists.
TRUE
Having a clear mission and vision can provide a basis for a company's internal and external assessments.
TRUE
In order to motivate a workforce effectively, both profit and vision are needed.
TRUE
One benefit of having a clear mission and vision is that it projects a sense of worth and intent to all stakeholders.
TRUE
Stakeholders both affect and are affected by an organization's strategic decisions.
TRUE
The critiqued mission statements of PepsiCo and Royal Caribbean both lacked the "customers" component.
TRUE
The foundation for development of a comprehensive mission statement is provided by a clear vision.
TRUE
The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.
TRUE
Vision and mission statements can often be found in the front of annual reports.
TRUE
When developing a vision statement, input should be received from as many managers as possible.
TRUE
All of the following are mentioned as places where vision and mission statements can often be found EXCEPT a.) SEC reports b.) annual reports c.) customer service agreements d.) supplier agreements e.) business plans
a.) SEC reports
All stakeholders' claims on an organization ____ pursued with equal emphasis. a.) cannot be b.) should always be c.) are required to be d.) must ideally be e.) can usually be
a.) cannot be
An overly general mission statement that _____ could be dysfunctional. a.) does not exclude any strategy alternatives b.) encourages management creativity c.) excludes all diversification d.) endorses the consideration of feasible potential strategies e.) allows for the generation and consideration of a range of alternative objectives
a.) does not exclude any strategy alternatives
According to McGinnis, a mission statement should be all of the following EXCEPT: a.) it should be broad enough to include all ventures b.) it should be stated in clear terms c.) it should distinguish an organization from all others d.) it should define what an organization is e.) it should serve as a framework for evaluating both current and prospective activities
a.) it should be broad enough to include all ventures
According to Campbell and Yeung, what is/are most likely associated with behavior and the present? a.) mission b.) values c.) long-term objectives d.) vision e.) possibilities
a.) mission
Which of the following is NOT one of the nine recommended components of a mission statement? a.) strategies b.) self-concept c.) employees d.) markets e.) customers
a.) strategies
Good mission statements identify the _____ of a firm's products to its customers. a.) utility b.) price c.) profit margin d.) demand e.) popularity
a.) utility
Which of the following illustrates the self-concept component of a mission statement? a.) To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes. b.) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees. c.) Our emphasis is on North American markets, although global opportunities will be explored d.) To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations e.) In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assures our ultimate success
b.) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees.
A good mission statement has a.) an employee orientation b.) a customer orientation c.) a shareholder orientation d.) an environmental orientation e.) a profit orientation
b.) a customer orientation
The purpose of a mission statement is to declare all of these EXCEPT a.) a reason for being b.) an annual financial plan c.) a statement of purpose d.) a statement of beliefs e.) whom an organization wants to serve
b.) an annual financial plan
In the process of developing a mission statement, it is important to involve a.) as few managers as possible b.) as many managers as possible c.) upper-level management only d.) lower-level management only e.) the board of directors only
b.) as many managers as possible
All of the following utility statements are relevant in developing a mission statement EXCEPT: a.) Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. b.) Do not offer me furniture. Offer me comfort and the quietness of a cozy place. c.) Do not offer me ideas, emotions, ambiance, feelings, and benefits. Offer me things. d.) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. e.) Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.
c.) Do not offer me ideas, emotions, ambiance, feelings, and benefits. Offer me things.
Who is referred to as "the father of modern management"? a.) Cleland b.) Campbell c.) Drucker d.) McGinnis e.) Yeung
c.) Drucker
What question is asked in conjunction with the philosophy component of a mission statement? a.) What are the firms' major products or services? b.) Is the firm committed to growth and financial soundness? c.) What are the basic beliefs, values, aspirations, and ethical priorities of the firm? d.) Is the firm responsive to social, community, and environmental concerns? e.) Are employees a valuable asset of the firm?
c.) What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
The ideal length of a vision statement is a.) one page b.) several paragraphs c.) one sentence d.) several sentences e.) as long as is necessary to convey the message
c.) one sentence
Which of these basic questions should a vision statement answer? a.) What is our business? b.) What is our core strength? c.) What are our challenges? d.) What do we want to become? e.) Who are our competitors?
d.) Who do we want to become?
According to Drucker, a business' mission is the foundation for all of the following EXCEPT: a.) priorities b.) strategists c.) plans d.) employee wage rates e.) work assignments
d.) employee wage rates
As indicated in the strategic-management model, a clear _____ is needed before alternative strategies can be formulated and implemented. a.) short-term objective b.) implementation plan c.) audit policy d.) mission statement e.) evaluation strategy
d.) mission statement
In order to appeal to diverse stakeholders, an effective mission statement should be a.) inflammatory b.) provocative c.) contentious d.) reconciliatory e.) dysfunctional
d.) reconciliatory
Which question(s) is answered in an effective mission statement? a.) Is the firm committed to growth and financial soundness? b.) Are employees a valuable asset of the firm? c.) Geographically, where does the firm compete? d.) Who are the firm's customers? e.) All of the above questions are answered in an effective mission statement.
e.) All of the above questions are answered in an effective mission statement.
When developing a mission statement, what is needed before people can focus on specific strategy formulation activities? a.) negotiation b.) compromise c.) eventual agreement d.) a and b only e.) all of the above
e.) all of the above
Which group would be classified as stakeholders? a.) governments b.) creditors c.) suppliers d.) employees e.) all the above
e.) all the above
After a draft mission statement has been developed, it is important to a.) ask managers to read several articles about mission statement as background information b.) vote on the mission statement c.) ask managers to prepare a mission statement for the organization d.) ask managers to seek support for the mission statement from their subordinates e.) request modifications, additions, and deletions
e.) request modifications, additions, and deletions
Effective and carefully planned mission statements a.) require major changes every few months b.) require major changes every few quarters c.) require major revision every few years d.) do not require revision e.) require infrequent major changes, but are always subject to revision
e.) require infrequent major changes, but are always subject to revision
Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage? a.) technology b.) philosophy c.) concern for public image d.) customers e.) self-concept
e.) self-concept