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.