MGT 4810 Midterm #1

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Organizations never develop their own projections.

False

Firms can be more proactive with strategic management.

True

The US is getting older and less white.

True

Vision and mission statements can often be found in the front of annual reports.

True

A vision statement describes an organization's values and priorities.

False

Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode."

False

Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself.

False

Firms, like organisms, must be "adept at adapting" or they will not survive.

True

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

False

A low value of the dollar means lower exports and higher imports.

False

A mission statement should include a clear summary of an organization's financial status.

False

A mission statement that is limited enough to exclude some ventures is a poor mission statement.

False

A vision statement identifies the scope of a firm's operations in product and market terms.

False

According to Albert Einstein, "knowledge is far more important than intuition".

False

According to Peter Drucker, "imagination is more important than knowledge, because knowledge is limited, whereas imagination embraces the entire world".

False

According to Peter Drucker, asking the question, "What is our business?" is synonymous with asking the question, "What is our vision?"

False

An external audit focuses on identifying and evaluating trends and events within the control of management.

False

By occasionally monitoring external events, companies should be able to identify when change is required.

False

Despite its great popularity in the 1980s, strategic planning by corporate America is now a valuable though rare activity.

False

Economic factors do not have much impact on the attractiveness of strategies.

False

Erosion of the US manufacturing base is reflected in the sharp increase in labor union membership in the last decade.

False

External audits attempt to identify key variables that offer highly intuitive responses.

False

If an organization chooses to have both a mission and a vision, the mission statement should be established first.

False

In most cases, at least 500 words are required to effectively state a mission statement.

False

Intelligence gathering is an unethical nosiness practice.

False

Most traditional retailers have tried in vain to use their online sales to boost in-store sales.

False

Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely.

False

Once an effective strategy is designed, modifications are rarely required.

False

Optimizing for tomorrow the trends of today is the purpose of strategic.

False

The best approach for strategists is to carefully develop strategic plans themselves and then present them to operating managers to execute.

False

The critiqued mission statements of PepsiCo and Royal Caribbean both lacked the "Public Image" component.

False

The increase in high tech manufacturing base in the US is reflected in the sharp increase in labor union membership in the last decade.

False

The most effective strategic management is ritualistic, predictable, and formal.

False

Well-conceived and properly executed mission and vision statements are not subject to revision.

False

Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?"

False

While forecasts might not be perfect, they are never wildly inaccurate.

False

While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises.

False

A good mission statement serves as a framework for evaluating both currect and prospective activities.

True

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

True

A mission statement should be broad enough to reconcile differences among an organization's various stakeholders.

True

A sense of self-concept is one o the nine components found in a good mission statement.

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 Drucker, the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty.

True

According to George Steiner, a mission statement should be broad in scope, since concrete specifications could be the base for rallying opposition.

True

According to Michael Porter, five competitive forces define the nature of competitiveness in a given industry: 1) rivalry among competing firms, 2) potential entry of new competitors, 3) potential development of substitute products, 4) bargaining power of suppliers, and 5) bargaining power of consumers.

True

According to Peter Drucker, answering the question, "what is our business? is the first responsibility of strategists.

True

All firms have a strategy, even if it is informal, unstructured, and sporadic.

True

An effective CI program allows all areas of a firm to access consistent and verifiable information in making decisions.

True

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

True

Analytical and intuitive thinking should complement each other.

True

Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industries.

True

Forecasts are educated assumptions about future trends and events.

True

Hiring top executives from rival firms is a way companies obtain competitive intelligence.

True

Objectives should be measurable, challenging, reasonable, consistent, and clear.

True

One of the benefits of having a clear mission and vision is the promotion of a sense of shared expectations among all managers and employees.

True

Political issues and stances impact strategic decisions.

True

The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural, demographic, and natural environment forces, 3) political, governmental, and legal forces, 4) technological forces and 5) competitive forces.

True

The foundation for develpoment of a comprehensive mission statement is provided by a clear vision.

True

The lack of monetary rewards is one cause of managers not engaging in strategic planning.

True

The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.

True

The terms strategic management and strategic planning are synonymous in this text.

True

When developing a mission statement, it is usually advisable to involve as few manages as possible.

True

U.S. firms are not being aggressively challenged in the computer industry.

False

Low-preforming firms typically underestimate their competitor's strengths and overestimate their own strengths.

True

The weights and total weighted scores in both a Competitive Profile Matrix and an EFE Matrix have the same meaning.

True

A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an outstanding way to existing opportunities and threats in its industry.

False

A vision statement commonly answers the question, "what is our business?", whereas a mission statement is more likely to answer the question "what do we want to become?".

False

An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.

False

Because the position of Chief Executive Officer (CEO) has assumed much responsibility for strategic management in the last five years, the number of firms with the position of Chief Strategic Officer (CSO) has diminished drastically during this period.

False

By the nature of what they do, strategists tend to have similar attitudes, values, ethics, and concerns for social responsibility.

False

Corporate intelligence is the name for a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business's own goals.

False

In multidivisional organizations, each division should develop a mission statement consistent with and supportive of the corporate mission but use the corporate vision statement instead of a divisional vision statement.

False

In the widely used approach discussed in the textbook, the first step in the process of developing a mission statement is to ask managers to state what they believe the organization's mission should be.

False

It is predicted that, by 2050, over 25 percent of the population in the US will be 65 years or older.

False

It is unusual for the claims and concerns of a company's stateholders to vary or conflict.

False

Major competitors' strengths are areas of concern, but do not represent key threats to a firm.

False

Major competitors' weaknesses can represent internal opportunities.

False

Middle managers are the most visible and critical of all strategic managers.

False

Military success is usually the happy result of accidental strategies, but business success is the product of continuous attention to changing conditions and insightful adaptations to those conditions.

False

Research has failed to find a positive relationship between mission statements and organizational performance.

False

Stakeholders of an organization include stockholders, customers and creditors, but not competitors.

False

The I/O approach to competitive advantage advocates that internal factors are more important than external factors in a firm achieving competitive advantage.

False

The US has been more active than other nations in protectionist measures and has engaged in many "Buy American" policies.

False

The trend toward an older America is bad news for furniture producers, hotels, airlines, and home builders.

False

The utility statement, "Do not offer me attractive looks; offer me clothes," is relevant in developing a mission statement.

False

There are now more American households consisting of married couples with children than of people living alone or with unrelated people.

False

Application of the strategic-management process is typically more formal in larger and well-established organizations.

True

As many managers and employees as possible should be involved in the process of performing an external audit.

True

By 2075, the United States will have no racial or ethnic majority.

True

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

True

Commitment and understanding may be the most important benefits of strategic management.

True

Customer's and creditors are considered stockholders of an organization.

True

Excess specifically can stifle creativity in the formulation of an acceptable mission or purpose.

True

External audits attempt to identify key variables that offer actionable responses.

True

In most large organizations that engage in strategic management, the formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels: corporate; divisional or strategic business unit; and functional.

True

In multidivisional organizations, each dicision should develop a mission statement consistent with and supportive of the corporate mission.

True

Industry analysis is also referred to as external strategic management audit.

True

Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses.

True

One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based.

True

Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

True

Protectionism is used by various countries around the world to safeguard their domestic industries.

True

Raising the question "What is our business" may cause a realization of fundamental disagreement among individuals who have worked together for a long time and who think they know each other.

True

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

True

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

True

Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.

True

Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

True

Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm.

True

Substantial research indicates that a healthier workforce can more effectively and efficiently implement strategies.

True

The critical success factors in a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix include both internal and external issues.

True

The strengths and weaknesses of an organization are determined relative to the strengths and weaknesses of its competitors.

True

To be effective, strategic management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

True

To perform an external audit, a company first must gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends.

True

Walgreens and CVS pharmacies are located generally across the street from each other and battle each other every day on price and customer service.

True

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

True

Wisconsin recently passed a law strengthening collective-bargaining rights for the state's public-employee unions.

True

Without reasonable assumptions, the strategy-formulation process could not proceed effectively.

True

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

True?

It is predicted that by 2050, over 20 percent of the population in the US will be 65 years or older.

True?


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