ADM Quiz 2

In the process of developing a mission statement, it is important to involve a. the board of directors only. b. lower-level management only. c. upper-level management only. d. as few managers as possible. e. as many managers as possible.

e. as many managers as possible.

A mission statement is a declaration of an organization's reason for being. a. True b. False

a. True

One benefit of having a clear mission and vision is that it projects a sense of worth and intent to all stakeholders. a. True b. False

a. True

Which of the following illustrates the self-concept component of a mission statement? a. 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. b. Our emphasis is on North American markets, although global opportunities will be explored. c. To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes. d. To compensate its employees with remuneration an 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 assure our ultimate success.

a. 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.

An effective mission statement should do all of the following EXCEPT a. include monetary amounts, numbers, percentages and ratios. b. reveal that the firm is environmentally responsible. c. be inspiring. d. be reconciliatory. e. identify the utility of a firm's products.

a. include monetary amounts, numbers, percentages and ratios.

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 serve as a framework for evaluating both current and prospective activities. c. it should distinguish an organization from all others. d. it should define what an organization is. e. it should be stated in clear terms.

a. it should be broad enough to include all ventures.

As indicated in the strategic-management model, a clear ______ is needed before long-term objectives can be established. a. mission statement b. audit policy c. short-term objective d. evaluation strategy e. implementation plan

a. mission statement

Who is referred to as "the father of modern management"? a. Yeung b. Drucker c. McGinnis d. Cleland e. Campbell

b. Drucker

A firm's philosophy in a mission statement addresses the question, "What is the firm's distinctive competence?" a. True b. False

b. False

Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?" a. True b. False

b. False

The potential for creative growth in an organization can be limited by a. an overemphasis on stakeholders. b. a mission statement that is too specific. c. not enough emphasis on stakeholders. d. a mission statement that is too dynamic. e. a mission statement that is too general.

b. a mission statement that is too specific.

Which type of statement should be created first and foremost? a. Creed b. Mission c. Vision d. Competitive advantage e. Objectives

c. Vision

The process of developing a vision and mission statement often includes which of these as the first activity? a. Having a brainstorming session on whether the organization should have a mission statement b. Merging several mission statements into one document c. Requesting that managers modify the current document d. Asking managers to prepare a mission statement for the organization e. Asking managers to read selected articles about mission statements

e. Asking managers to read selected articles about mission statements

In developing a mission statement, arousing emotion a. should be avoided if possible. b. is not a benefit. c. is futile. d. is counterproductive. e. is important.

e. is important.

After a draft mission statement has been developed, it is important to a. vote on the mission statement. b. ask managers to read several articles about mission statements as background information. 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 to the mission statement.

e. request modifications, additions, and deletions to the mission statement.