Chapter 2 - MGMT 490

Which of the following should managers do when a company faces sudden market changes or obstacles? (Choose every correct answer.)

-Adapt quickly -Be innovative

Which of the following are part of the fifth and final stage for crafting and executing a company's strategy? (Choose every correct answer.)

-Adjusting the mission statement -Evaluating performance -Monitoring developments

Why should the mission statement NOT focus on the company's goal of making a profit? (Choose every correct answer.)

-All commercial businesses aim to make a profit. -The mission statement should define "who we are and what we do." -Making a profit is best seen as a result of the company's actual mission.

Strategic performance is measured by the rise and fall of a company's ______.

competitiveness

Which document spells out the direction a company will take as it anticipates future developments?

the strategic vision

As a company strategy is implemented, it will typically ______.

work well in some areas and not so well in others

A well-crafted vision statement should ______.

explain where top executives plan to take the company in the future.

The manager of a plant that produces canned goods and is owned by a food and beverage company develops a strategy for updating its production lines while maintaining its quality controls. This is an example of a(n) ______.

operating strategy

What are lagging indicators?

performance measurements resulting from decisions and activities in the past

The primary purpose of a vision statement is to ______.

provide the company with a sense of direction

When conditions outside or inside the company change enough to cause substantial disruptions, managers should ______.

reevaluate the organization's direction and strategy

To measure how well a company is moving in the intended direction, it is important to ______.

set objectives

What is the purpose of a company's strategic vision?

To steer the company toward long-term growth and profits

Within the hierarchy of a company, a number of strategies are likely to have been developed and implemented by various people. Under what circumstances will the company perform most effectively? (Choose every correct answer.)

-All employees understand the company's long-term direction. -Top executives clearly communicate a company's strategy to company personnel. -All the strategies are unified.

Honor, integrity, teamwork, superior customer service, and innovation are examples of company ______________.

Core Values

Who is the target audience of an organization's strategic vision statement?

Everyone in the organization

True or false: The crafting and implementing of company strategy is exclusively a function of the top management of an organization.

False

When charting a company's direction, why do managers set objectives?

To establish performance targets that the managers hope to achieve, using the company's mission and vision

What is a company slogan?

a brief phrase that summarizes the company's vision

Typically, a company's strategy making must ______.

begin at the top of a company

To produce a value statement for a new company, what will management typically do? (Choose every correct answer.)

- consider feedback from employees. -write an initial draft and have employees read it.

Which of the following are true about how the content of a company's strategic plan is typically shared with different audiences? (Choose every correct answer.)

-A summary of the plan is published in the company's annual report. -Excerpts of the plan are posted on the company website. -The plan is circulated to the managers within the company.

Which elements form part of a company's strategic plan? (Choose every correct answer.)

-Basic business model -Company direction -Intended competitive moves

What entrepreneurial skills help managers craft and implement a successful company strategy? (Choose every correct answer.)

-Daring to be innovative -Noticing signs that the business climate is changing -Adjusting the strategy as conditions shift

An organization should set performance targets for which of the following? (Choose every correct answer.)

-Each of the organization's product lines -Each of the organization's individual work units -Each of the organization's separate businesses

What are the best tactics for convincing lower-level managers and employees to support the company's strategic vision? (Choose every correct answer.)

-Explaining why the company is taking a particular direction -Sharing updates and progress reports

The balanced-scorecard approach measures which of the following? (Choose every correct answer.)

-Financial objectives -Strategic objectives

Business strategy, in contrast to corporate strategy, involves which of the following? (Choose every correct answer.)

-Improving the performance of individual business units -Strengthening the market position of individual business units

Financial objectives are important for doing which of the following? (Choose every correct answer.)

-Increasing profit margins -Achieving shareholder satisfaction -Increasing revenue

Financial objectives are important for doing which of the following? (Choose every correct answer.)

-Increasing profit margins -Increasing revenue -Achieving shareholder satisfaction

Which statements are true of a company's strategic vision? (Choose every correct answer.)

-It steers the organization in a specific direction. -It explains why the vision makes sound business sense. -It is crafted by the company's top managers.

Which statements are true about assessing the effectiveness of a strategic plan? (Choose every correct answer.)

-Managers should make adjustments in areas that aren't working well and continue strategies that are succeeding. -Managers should evaluate how the strategy is working throughout the company. -Managers should search diligently for ways the strategy can be improved.

To ensure that employees will help execute the company's strategy, what should a manager do? (Choose every correct answer.)

-Managers should provide leadership to keep the strategy moving forward. -Managers should encourage a company culture that will help the strategy succeed. -Managers should reward employees when they achieve performance goals.

What are the obligations of a company's board of directors? (Choose every correct answer.)

-Overseeing the company's financial accounting and financial reporting practices -Evaluating the strategic leadership abilities of the CEO -Evaluating the company's direction and strategy

Which of the following should the organizational units within a company do? (Choose every correct answer.)

-Produce results that help the company achieve its performance targets. -Know their strategic role within the company. -See themselves as part of a team that includes the entire company.

Long-term objectives are intended to do which of the following? (Choose every correct answer.)

-Prompt action now to improve the organization's performance later -Prevent a nearsighted management philosophy

A company mission statement should do which of the following? (Choose every correct answer.)

-Specify what services and products the company offers -Identify the company's customers or markets -Establish the company's own identity

It is generally best for companies to craft objectives that have which of the following features? (Choose every correct answer.)

-They can be measured. -They include a deadline for achieving the objective.

What is the role of a company's board of directors? (Choose every correct answer.)

-To ensure that the company is operating in the best interests of shareholders and other stakeholders -To oversee top executives and ensure that they craft and implement an effective strategy

What purposes are served by a company slogan? (Choose every correct answer.)

-To motivate personnel to overcome obstacles -To define the organization's direction -To help employees maintain focus on the company's purpose

Which statements are true about companies where core values are taken seriously? (Choose every correct answer.)

-executives attempt to make the values an integral part of the corporate culture. -executives demonstrate the values in their own behavior.

What are the best tactics for convincing lower-level managers and employees to support the company's strategic vision? (Choose every correct answer.)

-explaining why the company is taking a particular direction -sharing updates and progress reports

Members of an organization are most likely to support a new strategic vision if the document does which of the following? (Choose every correct answer.)

-explains where the organization is going and why. -is explained by top executives to as many people as possible. -is distributed throughout the organization.

Which actions are often helpful for a company when it adopts a value statement? (Choose every correct answer.)

-posting the finished values statement on the company's website -combining its values, vision, and mission in one document

Which factors do managers consider when establishing performance objectives? (Choose every correct answer.)

-the company's internal capabilities -economic conditions within the industry -competition from other businesses

While developing a strategic vision, a company's managers might change which of the following? (Check all that apply.)

-the type of customers the company will serve -the products the company will offer -the markets in which the company will compete

What is a stretch objective?

A performance target that will require significant effort to achieve

A toy-making business is part of a larger corporation that owns various other businesses. The toy-making business unit decides to increase its production of board games. This is an example of a(n) ______.

functional-area strategy.

The most demanding and lengthy part of the strategy management process is ______.

implementing the strategy

If a company's board of directors is strong and independent, what should it be able to do? (Choose every correct answer.)

-Stop management from taking actions that are too risky or inappropriate -Guide and judge the CEO and other executives -Certify to shareholders that the CEO is performing as the board expects

Sometimes a company's CEO is the main person who develops the organization's strategy. This most often happens in which of the following situations? (Choose every correct answer.)

-The CEO is the owner and manager of a small company. -The CEO is the founder of a company that grew into a larger corporation. -The CEO has particularly strong strategic leadership skills.

What is described by a company's mission statement? (Choose every correct answer.)

-The company's present purpose -The company's present business

When setting objectives, which types of performance targets must be established? (Choose every correct answer.)

-financial -strategic

During the final stage of developing and implementing a company strategy, what factors often cause the company to adjust its objectives or mission statement? (Choose every correct answer.)

-new opportunities -changing conditions -new ideas

Why do companies designate a set of core values? (Choose every correct answer.)

-to guide the behavior of personnel -to encourage certain beliefs, traits, and behavioral norms -to guide the company as it pursues its vision and mission

Under what circumstances would an extreme stretch goal involving radical expectations be most likely to succeed? (Choose every correct answer.)

-when the company has plenty of resources available -when the company's recent performance has been strong

A sense of "where we are going" is called the company's ______.

strategic vision