Ch. 2 Multiple Choice

What a ________ is decisive and determines what a business is, and what the customer buys and considers value is ________.

customer thinks s/he is buying; always a product

All stakeholders

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

An effective mission statement should do all of the following except:

include monetary amounts, numbers, percentages and ratios.

In developing a mission statement, arousing emotion

is important.

The potential for creative growth in an organization can be limited by

a mission statement that is too specific.

Which question(s) are answered in an effective mission statement?

all of the above

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

an annual financial plan.

An overly general mission statement that ________ could be dysfunctional.

does not exclude any strategy alternatives

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

employee wage rates

Which of these examples of a mission statement's focus area does not identify the utility of the firm's products to its customers?

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

When developing a mission statement, what is needed before people can focus on specific strategy formulation activities?

All of the above

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

Developing vision and mission statements

All of the following utility statements are relevant in developing a mission statement except:

Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.

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

Drucker

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

Generating, evaluating, and selecting strategies

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

Mission

Which of these basic questions should a vision statement answer?

What do we want to become?

The mission statement answers which question?

What is our business?

What is the best time to develop a mission statement?

When the firm is successful

A good mission statement has

a customer orientation

Effective mission statements can vary in

all of the above

A change in mission always leads to changes in

all of the above.

Which group would be classified as stakeholders?

all of the above.

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

as many managers as possible.

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.

As indicated in the strategic-management model, a clear ________ is 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?

philosophy

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

request modifications, additions and deletions to the mission statement.

The general public is especially interested in ________, whereas stockholders are more interested in ________.

social responsibility; profitability

Effective and carefully planned mission statements

stand the test of time

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

to ensure a command-and-control structure.

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

utility

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

30

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

90%

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

An outside facilitator

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

Asking managers to read selected articles about mission statements

The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services."

Customers

All of the following are mentioned as places where vision and mission statements can often be found except:

SEC Reports

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

Self-concept

Which of the following is not one of the nine recommended components of a mission statement?

Strategies

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

Twice

Which type of statement should be created first and foremost?

Vision

Which of the following illustrates the self-concept component of a mission statement?

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.

According to a classic description of the purpose of a business, it is the ________ who determines what a business is.

customer

In order to appeal to its diverse stakeholders, an effective mission statement should be

reconciliatory.