Deck 2: The Business Vision and Mission

Question 1

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

A)Concern for public image
B)Customers
C)Technology
D)Self- concept
E)Philosophy

Answer 1

E

Question 2

Which group would not be classified as a stakeholder?

A)competitors
B)Suppliers
C)Communities
D)Banks
E)Employees

Answer 2

A

Question 3

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

A)Deming
B)Peters
C)Steiner
D)Drucker
E)McGinnis

Answer 3

D

Question 4

According to Drucker,when is the best time to develop a mission statement?

A)When the firm is in legal trouble
B)Before a business is opened
C)When the firm is successful
D)When the firm encounters competition
E)When the firm is in financial trouble

Question 5

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

A)as few managers as possible.
B)the board of directors only.
C)upper- level management only.
D)lower- level management only.
E)as many managers as possible.

Question 6

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

A)Performing internal audits
B)Generating,evaluating,and selecting strategies
C)Measuring and evaluating performance
D)Developing vision and mission statements
E)Performing external audits

Question 7

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

A)ask managers to prepare a mission statement for the organization.
B)ask managers to seek support for the mission statement from their subordinates.
C)provide a request for modifications,additions and deletions to the mission statement.
D)vote on the mission statement.
E)ask managers to read several articles about mission statements as background information.

Question 8

The vision statement answers which of the following questions?

A)What is our business?
B)How can we increase profitability?
C)Who are our stakeholders?
D)How can we improve ourselves?
E)What do we want to become?

Question 9

Effective mission statements can vary in

A)format.
B)specificity.
C)content.
D)length.
E)all of the above

Question 10

What is needed before people can focus on specific strategy formulation activities when developing a mission statement?

A)Compromise
B)Negotiation
C)Eventual agreement
D)A and B
E)all of the above

Question 11

Which of these examples of a mission statement's focus area is not effective?

A)Starbucks focuses on the café experience rather than coffee.
B)Union Pacific focuses on transportation rather than railroads.
C)Exxon/Mobil focuses on oil and gas rather than energy.
D)Universal Studios focuses on entertainment rather than movies.
E)AT&T focuses on communication rather than telephones.

Question 12

The three characteristics of a mission statement are a declaration of attitude,a declaration of social policy and

A)a customer orientation.
B)a profit orientation.
C)an employee orientation.
D)an environmental orientation.
E)a shareholder orientation.

Question 13

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

A)Performing external audits
B)Performing internal audits
C)Measuring and evaluating performance
D)Developing vision and mission statements
E)Establishing long- term objectives

Question 14

Which country has the lowest percentage of foreign workers to the total population?

A)United Kingdom
B)Saudi Arabia
C)UAE
D)United States
E)Japan

Question 15

Corporate social policy should be designed and articulated during which phase of strategy development?

A)Management
B)Control
C)Evaluation
D)Implementation
E)Formulation

Question 16

A proactive environmental policy is likely to lead to

A)reduced customer loyalty.
B)conservation of energy.
C)numerous liability suits.
D)higher cleanup costs.
E)higher medical costs.

Question 17

In regard to its elderly workforce,Japan varies from the United States in that

A)Japanese citizens are required to retire at 60.
B)a smaller percentage of Japan's senior citizens work.
C)most Japanese workers retire before 60.
D)Japan does not have laws banning discrimination based on age.
E)Japan is phasing in a shift from ages 65 to 60 as the date when a pension can be received.

Question 18

All stakeholders

A)have ownership rights in an organization.
B)have environmental concerns as their top priority.
C)have claims and concerns about an organization,but these claims and concerns vary.
D)have the same voting rights in an organization.
E)have the same claims and concerns about an organization.

Question 19

The ideal length of a vision statement is

A)one sentence.
B)several paragraphs.
C)as long as necessary to convey the message.
D)one page.
E)several sentences.

Question 20

According to McGinnis,a mission statement should be all of the following except

A)it should be specific enough to control creative growth.
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.

Question 21

Which of these basic questions should a vision statement answer?

A)What do we want to become?
B)Who are our competitors?
C)What is our business?
D)Why do we exist?
E)Who are our employees?

Question 22

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.

A)three times
B)five times
C)one quarter
D)half
E)twice

Question 23

The potential for creative growth for the organization can be limited by

A)an overemphasis on stakeholders.
B)a mission statement that is too specific.
C)a mission statement that is too dynamic.
D)a mission statement that is too general.
E)not enough emphasis on stakeholders.

Question 24

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

A)An internal group
B)A facilitator
C)A committee of managers
D)Surveys
E)Command- and- control

Question 25

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

A)to ensure a command- and- control structure.
B)to provide a basis for allocating organizational resources.
C)to establish a general tone or organizational climate.
D)to facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization.
E)to ensure unanimity of purpose within the organization.

Question 26

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

A)57
B)15
C)30
D)54
E)10

Question 27

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

A)environmental concerns; profitability
B)profitability; social responsibility
C)social responsibility; the treatment of employees
D)social responsibility; profitability
E)the treatment of employees; environmental concerns

Question 28

In 2009,which of the following companies was ranked as the most admired company for social responsibility,according to Fortune magazine?

A)Anheuser-Bush
B)Walt Disney
C)Toys "R" Us
D)IBM
E)Starbucks

Question 29

As indicated in the strategic- management model,a clear _ is needed before alternate strategies can be formulated and implemented.

A)short- term objective
B)evaluation strategy
C)long- term objective
D)mission statement
E)policy

Question 30

The mission statement answers which of the following questions?

A)Who are our stakeholders?
B)How can we increase profitability?
C)How can we improve ourselves?
D)What is our business?
E)What do we want to become?

Question 31

In developing a mission statement,arousing emotion

A)is important.
B)is the most important goal.
C)is counterproductive.
D)should be avoided if possible.
E)is not a benefit.

Question 32

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

A)Having a brainstorming session on whether the organization should have a mission statement.
B)Asking managers to prepare a mission statement for the organization.
C)Merging several mission statements into one document.
D)Requesting to modify the current document.
E)Asking managers to read selected articles about mission statements.

Question 33

The vision and mission statement can often be found

A)on supplier invoices.
B)on customer receipts.
C)in the SEC report.
D)in annual reports.
E)on community news bulletins.

Question 34

Which of the following dimensions are not recommended aspects of a mission statement?

A)Concern for employees
B)Strategies
C)Customers
D)Self- concept
E)Markets

Question 35

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

A)demand
B)price
C)profit margin
D)utility
E)popularity

Question 36

Which question(s)are not answered in a mission statement?

A)What do we want to become?
B)What technology will we employ to achieve our objectives?
C)Who are the firm's customers?
D)What is the purpose of our organization?
E)What is our company philosophy or self- concept?

Question 37

The corporate social policy should be reaffirmed or changed during which phase of strategy development?

A)Implementation
B)Control
C)Formulation
D)Evaluation
E)Mission

Question 38

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

A)whom it wants to serve.
B)an annual financial plan.
C)a statement of purpose.
D)a reason for being.
E)a statement of beliefs.

Question 39

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

A)30%
B)90%
C)75%
D)15%
E)60%

Question 40

An effective mission statement is all of the following except

A)it provides useful criteria for selecting among alternative strategies.
B)it reflects judgments about future growth directions that are based upon forward- looking external and internal analyses.
C)it is static in orientation.
D)it should include options that are considered less promising.
E)it provides a basis for generating and screening strategic options.

Question 41

Mission statements are sometimes difficult to derive because top management may disagree over company objectives.

Question 42

A firm's concern for employees in a mission addresses the question,"Is the firm responsive to social,community,and environmental concerns?"

Question 43

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

Question 44

Effective mission statements

A)are usually changed every few years.
B)become ineffective in the first year.
C)are usually changed every few months.
D)never require revision.
E)stand the test of time and require little revision.

Question 45

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

Question 46

Although it is important for companies to have a clearly defined mission statement,research has shown that less than 50% of all companies have used a mission statement in the previous five years.

Question 47

Social policy should be reaffirmed or changed during strategy implementation.

Question 48

A businesses mission is the foundation for all of the following except

A)plans.
B)priorities.
C)employee wage rates.
D)work assignments.
E)strategies.

Question 49

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

Question 50

Which component of a mission statement addresses the basic beliefs,values,aspirations,and ethical priorities of the firm?

A)Philosophy
B)Self- concept
C)Technology
D)Customers
E)Concern for public image

Question 51

In 2007,Arabian Business magazine rated Saudi German Hospital (KSA)as a highly socially responsible corporation.

Question 52

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

Question 53

Which of the following should be defined first and foremost?

A)Objectives
B)Mission
C)Competitive advantage
D)Strategic
E)Vision

Question 54

What is likely to happen if a mission or vision statement is implemented during troubled times for a firm?

A)Employees will ignore the new mission or vision statement.
B)Profitability will decline.
C)Managers will be unable to resolve divergent views.
D)Nothing.
E)The firm will experience a reverse in the decline of profitability.

Question 55

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

Question 56

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

Question 57

An important question a mission statement should answer is,"What do we want to become?"

Question 58

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

Question 59

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.

Question 60

In 2009,which of the following companies was ranked as the least admired company for social responsibility,according to Fortune magazine?

A)McDonalds
B)Navistar International
C)Circuit City Stores
D)UPS
E)Toys "R" Us

Question 61

In most cases,several paragraphs are required for a mission statement.

Question 62

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

Question 63

According to Peter Drucker,developing a clear business vision and mission is the first responsibility of strategists.

Question 64

A mission statement promotes a sense of shared expectations among all levels and generations of employees.

Question 65

It is generally a good idea to use the mission statement as a guide when completing an external and internal analysis.

Question 66

A good mission statement shows the relative attention an organization will devote to meeting the claims of various stakeholders.

Question 67

In the Arab region,social responsibility is increasingly viewed as part of normal business conduct.

Question 68

A mission statement is a declaration of an organization's financial status.

Question 69

In Saudi Arabia,the Presidency of Meteorology and Environment has developed specific guidelines for public and private institutions to implement the Kingdom's strategy for protecting the environment and preserving wildlife.

Question 70

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

Question 71

According to King and Cleland,carefully developed and written mission statements help to ensure unanimity of purpose within the organization.

Question 72

Mission statements provide managers with a unity of direction that transcends individual,parochial and transitory needs,by promoting a sense of shared expectations among all levels and generations of employees.

Question 73

According to Vern McGinnis,an effective mission statement should define what the organization is and what the organization aspires to be.

Question 74

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

Question 75

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

Question 76

A mission statement is usually a simple statement of specific beliefs.

Question 77

During the strategy- implementation process,social policy should be set and administered.

Question 78

The mission statement should be short - preferably one sentence.

Question 79

A good mission ststement describes an organization's purpose,customers,products or services,markets,philosophy,and basic technology.

Question 80

The percentage of foreign workers within the total population is greater in the United Kingdom than in the United States.