EXAM 1 PART 2

How would you best describe the definitive difference between a vision and a mission

A mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going."

If you were asked to develop a low-cost provider strategy for startup ridesharing business, what would you most likely recommend

Offering low prices on long distance rides but hire only experienced drivers with a minimum of five years service, pay them well above the minimum wage, and maintain peak pricing for rides during rush hour

A company's profit formula consists of the following basic elements

P, the price charged to customers, minus C, the company's costs

The key characteristics of a well-stated organization are not represented by

Yahoo!'s extreme stretch goals to return that company to profitability and raise its stock price

Gerard's Paella, a tapas bar and paella restaurant....

a focused differentiation strategy

Which is not a hallmark of a cleverly and well-executed strategy

a strategy that provides direction only in terms of what the company should do

Which are the primary components of a strategic plan

a vision of where it is headed, a set of performance targets, and a strategy to achieve them

A company's strategy consists of ____

actions taken by managers in order to outperform competitors and achieve superior profitability

A strategy to achieve and maintain sustainable competitive advantage is never associated with

actions taken by companies to gain sales and market share irrespective of product prices and cost

TOMS Shoes' company values are

an integral part of this company's DNA; its executives seek to ingrain designated core values into corporate culture.

Financial Objectives

are necessary to set and to achieve, as adequate profitability and financial strength increases a company's long-term health.

Why does a company's strategy tend to be a "work in progress" and evolve over time?

because of changing circumstances and ongoing management efforts to improve the strategy

You are the owner of the Voracious Vegetarian, a single-business healthy fast-food restaurant. Your strategy-making hierarchy would most likely consist of

business strategy, functional strategies, and operating strategies.

In most situations, managing the strategy execution process does not primarily include which of the following principal aspects

establishing long-run and short-run strategic and financial objectives

The process of crafting and executing a company's strategy primarily consists of all of the following except

choosing employees who can support the strategy execution and strive for change

Patagonia, a multinational sports apparel company, is planning to launch its extreme weather gear product line in Nepal and the Kingdom of Bhutan; both are considered to be emerging markets. What would you advise Patagonia to omit from consideration in crafting a strategy to enhance future profits in these two emerging markets?

create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs

Unanticipated developments and fresh market conditions require a ____ strategy

emergent

Why would managers not consider drastically modifying their company's strategy

employee demands for better working conditions

An effectively worded mission statement does not

express that making a profit is the company's true business purpose

The two tests a winning strategy must pass are the ____ test and the ____ test

fit and performance

An effectively worded strategic vision statement is

flexible, focused, and directional

A business strategy

focuses on crafting responses to changing market

Google's vision, "to organize the world's information and make it universally accessible and useful" can be said to be a good example of

how companies may communicate management's aspirations to stakeholders (customers, employees, stockholders, suppliers, etc.) and help steer the energies of company personnel in a common direction by using an easily remembered slogan.

Types of actions and approaches that often characterize a company's strategy do not include actions to

improve ethical standards, ensure employees commitments, and continuously develop new talents

Nike's vision, "to bring innovation and inspiration to every athlete in the world,"

is a short slogan to illuminate the organization direction and purpose

The heart and soul of a company's strategy-making effort

is the actions and moves in the marketplace that managers take to gain a competitive advantage over rivals

The combination of a good strategy and a good strategy execution

is the most telling sign of good management

You have been asked to evaluate Kampus Kombucha's mission statement, "to heal and refresh everyone we touch." You would most likely observe that Kampus Kombucha's mission statement

is vague, fairly uninformative, and blurs the essence of this company's business activities

Although senior managers have _________________________ for crafting and executing a company's strategy, it is the duty of a company's board of directors to exercise strong oversight and ensure that the five tasks of strategic management are conducted in a manner that is in the best interests of shareholders and other stakeholders.

lead responsibility

A company's strategy is shaped by

management analysis and choice in part, as well as by the necessity of adapting

A company's business model does not

reflect how efficiently a company can meet customer wants and needs even at the cost of incurring loss

Apple's strategic approach to setting the company apart from rivals, building strong customer loyalty, and winning a competitive advantage includes

outcompeting rivals on the basis of differentiating features, such as higher quality, wider product selection, added performance, value-added services, more attracting styling, and technological superiority

Virtually all boards of directors have an audit committee, which is always composed entirely of

outside directors

The Balanced Scoreboard

provides a company's employees with clear guidelines about how their jobs are linked to the overall objectives of the organization

Top management's views and conclusions about the company's long-term direction and which product-customer-market-technology mix seems optimal for the road ahead together constitute a company's

strategic vision

A company's strategy

tends to be a combination of both proactive and reactive elements, with certain elements being abandoned because they have become obsolete or ineffective.

As the owner of a local housecleaning business that is trying to achieve a sustainable competitive advantage, you most likely would not ____

utilize copycat product offerings or similar maneuvers as rivals to stake out the same market position

When a company achieve sustainable competitive advantage

when elements of the strategy give buyers lasting reasons to prefer a company's products or services over those or competitors

A commonly used and easily understood objective is

winning X percent of market share

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of

winning the support of employees to help make the vision a reality.