BUS CH 2

Business Week reports that firms using mission statements have _____ percent higher return on certain financial measures than those without such statments

30

Effective mission statements can vary in

All of the above

A proactive environmental policy is likely to lead to:

Conservation of energy.

A study by Rarick and Vitton found that firms with a formalized mission statement have _____ the average returns on shareholders' equity compared to those firms without a formalized mission statement

Twice

In 2007, which of the following companies was ranked as the most admired company for social responsibility?

CHS

Attracting customers is a major reason for developing a mission statement.

True

In developing a mission statement, arousing emotion:

is important

According to recent studies, what percent of companies have used a mission statement sometime in the past five years?

90%

The three characteristics of a mission statement are a declaration of attitude, a declaration of social policy and:

A customer orientation

What can be used to promote unbiased views and to manage the development of the mission statement more effectively?

A facilitator

The potential for creative growth for the organization can be limited by:

A mission statement that is too specific.

What is needed before people can focus on specific strategy formulation activities when developing a mission statement?

All of the above

Which questions are answered in an effective mission statement?

All of the above

Which group would be classified as a stakeholder?

All of these

The purpose of a mission statement is to declare all of these except:

An annual financial plan

In the process of developing a mission statement, it is important to involve

As many managers as possible

The process of developing a vision and mission statement includes which of these as the first activity?

Ask managers to read selected articles about mission statements.

What is the first step in the comprehensive strategic-managmenet model?

Developing vision and mission statements

Who is referred to as "the father of modern management?"

Drucker

A business mission is the foundation for all of the following except:

Employee work wages

Which of these examples of a mission statement's focus area is not effective?

Exxon/Mobil focuses on oil and gas rather than energy.

Corporate social policy should be designed and articulated during which phase of strategy development?

Formulation

According to the comprehensive strategic-management model, which step needs to be completely immediately following the establishment of long-term objectives?

Generating, evaluation, and selecting strategies.

All stakeholders:

Have claims and concerns about an organization, but these claims and concerns vary.

The vision and mission statement can often be found

In the annual reports.

An effective mission statement is all of the following except:

It is static in orientation

According to McGinnis, a mission statement should be all of the following except:

It should be specific enough to control creative growth.

Which country has the lowest percentage of foreign workers to the total population?

Japan

In regard to its elderly workforce, Japan varies from the United sates in that:

Japan does not have laws banning discrimination based on age.

According to Campbell and Yeung, what is/are most likely associated with behavior and the present.

Mission

As indicated in the strategic-management model, a clear ____ i needed before alternate strategies can be formulated and implemented.

Mission statement

The ideal length of a vision statement is:

One sentence

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?

Philiosphy

Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage?

Philosophy

After a draft mission statement has been developed, it is important to:

Provide a request for modifications, additions and deletions to the mission statement.

The general public is especially interest in _______, whereas stockholders are more interested in __________.

Social responsibility; porfitability

Effective mission statements:

Stand the test of time and require little revision

Which of the following dimensions are not recommended aspects of a mission statement?

Strategies

The corporate social policy should be reaffirmed or changed during which phase of the strategy development?

Strategy evaluation

What is likely to happen if a mission or vision statement is implemented during troubled times for a firm?

The firm will experience a reverse in the decline of profitability.

King and Cleland recommend organizations carefully develop a written mission statement for all of the following reasons except:

To ensure a command-and-control structure

A firms concern for employees in a mission addresses the question, "Is the firm responsive to social, community, and environmental concerns?"

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 promotes a sense of shared expectations among all levels and generations of employees.

True

A mission statement, sometimes called a creed statement can be defined as an "enduring statement of purpose that distinguished one organization from other similar enterprises."

True

A well conceived mission statement is the cornerstone of effective strategic management.

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 King and Cleland, carefully developed and written mission statement ensure unanimity of purpose within the organization

True

According to Peter Drucker, developing a clear business vision and mission is the first responsibility of strategists.

True

According to Vern McGinnis, to be effective, all a mission statement need to do is define what the organization is and what the organization aspired to be.

True

An effective mission statement generates the impression a firm is successful, has direction and is worthy of time, support and investment.

True

Carefully prepared statements of vision and mission are widely recognized as the first step in strategic management.

True

Corporate policies related to mandatory retirement are a growing concern in many counties.

True

Due to new emission standards, the production of big-rig trucks has decreased significantly.

True

During the strategy-implementation process, social policy should be set and administered.

True

From a social responsibility perspective, Toys "R" us is one of the least admired companies.

True

Good mission statements identify the utility of a firm's products to its customers.

True

In order to motivate a workforce effectively, both profit and vision are needed.

True

Individuals who own stock in a corporation are considered stakeholders.

True

Japan's national debt is difficult to reduce largely because the country does not view immigration as a good means to offset declines in the number of workers.

True

Mission statements are sometimes difficult to derive because top management may disagree over company objectives.

True

Mission statements provide managers with a unit of direction that transcends individual, parochial and transitory needs by promoting a sense of shared expectations among all levels and generations of employees.

True

Precision might stifle creativity in the formulation of an acceptable mission or purpose.

True

Social policy should be designed and articulated during the strategy-implementation stage.

True

Stakeholders both affect and are affected by an organization's strategic decisions.

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 from of annual reports.

True

When company has been successful and or unsuccessful, the question "what is our business" should be asked.

True

When developing a vision statement, input should be received from as many managers as possible.

True

Good mission statements identify the _____ of a firm's products to its customers

Utility

Which statement should be created first and foremost?

Vision

In 2007, which of the following coma pies was ranked the least admired company for social responsibility?

Visteon

The vision statement answers which question?

What do we want to become?

Which of these basic questions should a vision statement answer?

What do we want to become?

The mission statements answers which question?

What is our business?

What is the best time to develop a mission statement?

When the firms is successful

What happened to sales of big-rig trucks as a result of new federal regulations on emissions?

sales decreased by 30 percent.