Strategic Management Midterm

Which of the following is a benefit to the organization of hiring an outside​ consultant/facilitator to assist in developing a vision and mission​ statement?

A consultant possesses unbiased views.

Which of the following represents a utility​ statement?

A furniture store offers comfort.

Which of the following would NOT characterize a good mission​ statement?

A good mission statement is​ time-sensitive.

What element of strategic management answers the question​ "What do we want to​ become?"

A vision statement

Which of the following is TRUE concerning a mission​ statement's emotional​ bond?

An emotional bond exists when people identify with the underlying values and behavior of a firm.

Which of the following is NOT one of​ Porter's five​ forces?

Barriers to entry

Which of the following is a pitfall of strategic​ planning?

Being so formal in planning that flexibility and creativity are stifled

Business strategy is based on the assumption of competition. Upon which assumption is military strategy​ based?

Conflict

Which of the following is considered an unpublished source for external​ information?

Customer surveys

Which of the following is performed in the strategy formulation stage of the strategic management​ process?

Developing a vision and a mission

Which of the following is considered a published source for external​ information?

Directories

According to the authors of the​ text, what is the most important component of a mission​ statement?

Distinctive competence

Which of the following is NOT cited by King and Cleland as a benefit of carefully developing a written mission​ statement?

Doing so ensures all customers are aware of all​ product/service offerings.

What is the most important part of an external​ audit?

To develop a finite list of opportunities that could benefit a firm as well as threats that should be avoided or mitigated

Which characteristic of effective vision statements reveals the​ firm's competitive​ advantage?

Unique

In a​ business, which of the following should be established​ first?

Vision statement

Which of the following mission statements addresses the philosophy of the​ firm?

We assure customers the​ highest-quality courtesy as our motto over every doorway.

​Apple's financially lean position with regard to manufacturing facilities provides the firm with a​ _______ over​ Sony, which invests heavily in manufacturing facilities.

competitive advantage

Analytical thinking and intuitive thinking​ ______.

complement each other

To create an excellent vision and​ mission, a firm needs core values. These core values​ ______ for the vision and mission.

create an ethical foundation

An excellent vision statement​ should: ______.

describe a desired future state

Vision statements should be both​ ______ and challenging.

doable

Three primary intrinsic benefits of strategic planning include​ ______.

enhanced​ communication, deeper​ understanding, and greater commitment

Both business and military organizations use their own strengths to ​______.

exploit​ competitors' weaknesses

When strategic planning is too formal​, ​______.

flexibility is stifled

One specific skill students can gain from this course is​ ________.

formulating strategies using a SWOT analysis

A mission statement should be written​ ______.

from a customer perspective

In his​ company's vision​ statement, Jorge includes what the company should accomplish within five years. This exemplifies the​ ______ characteristic of effective vision statements.

futuristic

Strategists who rush quickly to implement strategies​ ______.

might overlook the development of a vision and mission statement

As many managers as possible should be involved in the process of developing vision and mission statements because​ ______.

they will become committed to the organization

One broad skill students can gain by taking this course is​ ______.

to define and solve problems and make decisions about a particular situation

The purpose of strategic management is​ ______.

to gain a sustainable competitive advantage over rivals

Strategic planning is often incorrectly viewed as ​______.

unnecessary

Quality mission statements identify the​ ______ of a​ firm's products to its customers.

utility

A mission statement reveals​ ______.

what an organization wants to be and whom it wants to serve

When identifying and prioritizing key external factors in strategic​ planning, four criteria should be met to the extent possible. What are these four​ criteria?

​actionable, quantitative,​ comparative, and divisional

A​ meta-analysis of 20 years of empirical research on mission statements concluded there is a positive relationship between mission statements and​ ______.

measures of financial performance

Business strategy has its roots in​ ______.

military strategy

Some firms view planning as a waste of time because​ ______.

no product or service is produced

A key to gaining commitment to the organization by managers and employees is​ ______.

participation of all employees in the strategic management process

One benefit of strategic planning is that it allows a firm to be​ _______ in shaping its own future.

proactive

In​ forecasting, strategists identify future occurrences that could have a major effect on the​ firm, and, based on that make​ __________.

reasonable assumptions

The idea that a mission statement should be broad to appeal to the wide range of people that have a claim on the company is called​ being: ______.

reconciliatory

The principal benefit of vision and mission statements as tools of strategic management is derived from​ ______.

their specification of the ultimate aims of a firm

The question of what the organization wants to become is addressed in the ​______.

vision statement

An effective vision statement should exhibit 5 characteristics. What are​ they?

​Clear, futuristic,​ concise, unique, inspiring

​______ is/are the specific results that a firm seeks to achieve in pursuing its basic mission.

​Long-term objectives

Which of the following is NOT true concerning​ forecasts?

​Sometimes, wild guesses are acceptable as forecasts.

Under which condition can consumers gain increasing bargaining​ power?

If they can inexpensively switch to a substitute

Which of the following is considered a nonfinancial benefit of strategic​ management?

Improved awareness of external threats

Which of the following is not cited as a nonfinancial benefit of using strategic​ management?

Increased discipline

Which of the follow is NOT a benefit of employees and managers creating a shared​ vision?

Increased turnover

Which of the following best defines the most effective basis for strategic decision making in​ firms?

Integrating intuition and analysis

Which of the following is NOT a pitfall of strategic​ planning?

Involving key employees in all phases of planning

Which of the following is NOT true of a mission statement written from a customer​ perspective?

It needs to identify precise target groups of customers.

Which of the following is a characteristic of a good mission​ statement?

It reveals that the firm is socially responsible.

For industries and firms that depend heavily on government contracts or​ subsidies, which forecasts can be the most important part of an external​ audit?

Political

In order to motivate a workforce effectively organizations need to focus​ on:

Profit and vision

The​ firm's public image might be addressed in the mission statement by all of the following​ EXCEPT:

Responsiveness to technology concerns

Which of the following best defines strategic​ management?

The art and science of​ formulating, implementing, and evaluating​ cross-functional decisions to achieve the​ organization's objectives

​Historically, where did strategic planning​ originate?

The military

What should a vision statement​ reveal?

The type of business a firm conducts

Which of the following is a reason some firms do not engage in strategic​ planning?

They receive no formal training in strategic management.

Which of the following is TRUE of vision and mission​ statements?

They should be treated as living documents.

The vision statement answers which of the following​ questions?

What do we want to​ become?

A vision statement answers which of the following​ questions?

What does our organization want to​ become?

What question does a mission statement​ answer?

What is our business or reason for​ being?

According to​ Drucker, asking​ "What is our​ mission?" is synonymous with​ asking:

What is our​ business?

Which of the following questions is not usually answered in the​ organization's mission​ statement?

Where is the organization​ going?

When one company possesses a resource that its rivals​ want, the first company has gained​ ______.

a competitive advantage

Which of the following is TRUE of vision​ statements?

Employees and managers should work together to craft them.

Which of the following is considered in the strategy implementation​ stage?

Creating an effective organizational structure

​Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in the markets it serves. In doing​ so, Dell says it will meet customer expectations of highest​ quality; leading​ technology; competitive​ pricing; individual and company​ accountability; best-in-class service and​ support; flexible customization​ capability; superior corporate​ citizenship; and financial stability. Which of the nine components of a mission statement is​ missing?

Employees

When engaging in strategic​ planning, which of the following pitfalls did the text suggest a firm should​ avoid?

Failing to communicate the plan to employees

Which of the following is not considered a benefit of strategic​ management?

More reactive shaping of the​ organization's future

Which of the nine components of a mission statement answers the​ question, "What are the basic​ beliefs, values, and aspirations of the​ firm?"

Philosophy

​_____ are the individuals and groups of individuals who have a special claim on the company.

Stakeholders

Which of the following is NOT identified as a component of mission​ statements?

Stock price

What is the final stage in strategic​ management?

Strategy evaluation

In which stage of the strategic management process is an organization likely to develop a mission​ statement?

Strategy formulation

Which stage of the strategic management process is referred to as the action​ stage?

Strategy implementation

​______ is a classic book about how to fight wars without actually having to do battle. It has guided​ militaries, businesses, and athletic teams to formulate strategies that lead to success.

Sun​ Tzu's The Art of War

As common positions in firms​ today, chief information officers​ (CIOs) reflect the growing importance of the impact of which external​ force?

Technological

Those organizations that ask​ "Should we reshape our​ business?" understand the importance of ​______.

adapting to change

During strategic​ planning, the planning should be delegated to​ ______.

all key employees

In great​ companies, core values​ ______.

almost never change

Alexander the Great demonstrated that​ ______.

an excellent strategic plan is crucial to succeeds

Jay Conger pointed out that all strategists have to be ​______.

chief learning officers

The logical starting point for strategic management is to​ ______.

identify the existing​ vision, mission,​ objectives, and strategies

Alfred Sloan described Will Durant of GM as an individual who was​ "astoundingly correct" in his judgment due to​ ______.

intuition

Strategic decision making can benefit from integrating analysis and​ _____, by​ ______.

intuition

The​ strategic-management process can be described as an​ objective, logical, systematic approach for making major decisions in an organization.​ However, it is generally recognized that​ ______ is essential to making good strategic decisions.

intuition

A mission statement that​ ______ will be most effective.

is enduring

The strategic management course at many colleges and universities ​______.

is the capstone course in business administration

A​ company's game plan is its ​______.

strategic plan

The strategic management process begins​ with______.

strategy formulation

Perhaps the best way to develop a skill for writing and evaluating mission statements is to​ ______.

study actual company missions

The best way to develop the ability to write and evaluate mission statements is to​ ______.

study actual company missions

The focus of strategic management is​ ______.

the integration of all the functional areas of the business to achieve its organizational objectives

The foundation for​ priorities, strategies,​ plans, and work assignments is​ ______.

the mission statement