Question 1

Which of the following is not a common shortcoming of company vision statements?

Accepted Answer

A)  Vague or incomplete-short on specifics 
B)  Focused and narrow-exclusive to a specific direction 
C)  Bland or uninspiring 
D)  Not distinctive-could apply to most any company (or at least several others in the same industry) 
E)  Too reliant on superlatives (best,most successful,recognized leader,global or worldwide leader,first choice of customers)

Question 2

Well-conceived visions are

Accepted Answer

A)  distinctive. 
B)  specific to a particular organization. 
C)  free of generic,feel-good statements. 
D)  not innocuous one-sentence statements. 
E)  All of these.

Question 3

Functional strategies

Accepted Answer

A)  specify what actions a company should take to resolve specific strategic issues and problems. 
B)  concerns the actions,approaches,and practices related to particular functions or processes within a business. 
C)  are concerned with how to unify the firm's several different operating strategies into a cohesive whole. 
D)  are normally crafted by the company's CEO and other senior executives. 
E)  None of these.

Question 4

When a company is confronted with significant industry change that mandates radical revision of its strategic course,the company is said to have encountered

Accepted Answer

A)  a learning and growth perspective. 
B)  a strategic inflection point. 
C)  a strategic roadblock. 
D)  a new strategic opportunity. 
E)  an opportunity for corporate entrepreneurship.

Question 5

The obligations of an investor-owned company's board of directors in the strategy-making,strategy-executing process include

Accepted Answer

A)  coming up with compelling strategy proposals to debate against those put forward by top management. 
B)  taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives. 
C)  taking the lead in developing the company's business model and strategic vision. 
D)  overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills. 
E)  approving the company's operating strategies,functional-area strategies,business strategy,and overall corporate strategy.

Question 6

Proficient strategy execution

Accepted Answer

A)  is always the product of much organizational learning. 
B)  is achieved unevenly,coming quickly in some areas and more slowly in others. 
C)  entails vigilantly searching for ways to improve performance. 
D)  is an ongoing process,not an every-now-and-then task. 
E)  All of these.

Question 7

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of

Accepted Answer

A)  not only explaining "where we are going and why" but,more importantly,also inspiring and energizing company personnel to unite to get the company moving in the intended direction. 
B)  helping company personnel understand why "making a profit" is so important. 
C)  making it easier for top executives to set strategic objectives. 
D)  helping lower-level managers and employees better understand the company's business model. 
E)  All of these.

Question 8

Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making,strategy-executing process is concerned?

Accepted Answer

A)  Hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's performance 
B)  Being inquiring critics and exercising strong oversight over the company's direction,strategy,and business approaches 
C)  Evaluating the caliber of senior executives' strategy-making/strategy-executing skills 
D)  Instituting a compensation plan for top executives that rewards them for actions and results that serve stakeholders' interests,and most especially those of shareholders 
E)  Overseeing the company's financial accounting and financial reporting practices

Question 9

A balanced scorecard for measuring company performance

Accepted Answer

A)  entails putting equal emphasis on financial and strategic objectives. 
B)  entails striking a balance between financial objectives and strategic objectives. 
C)  balances the drive for profits with social responsibility obligations. 
D)  prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives. 
E)  entails creating a set of financial objectives balanced among profitability measures and liquidity measures.

Question 10

Management's strategic vision for an organization

Accepted Answer

A)  charts a strategic course for the organization ("where we are going")and outlines the company's future product-customer-market-technology focus. 
B)  describes in fairly specific terms the organization's business model,strategic objectives,and strategy. 
C)  spells out how the company will become a big moneymaker and boost shareholder value. 
D)  addresses the critical issue of "why our business model needs to change and how we plan to change it." 
E)  spells out the organization's strategic moves that will be undertaken to achieve competitive advantage.

Question 11

Which of the following are common shortcomings of company vision statements?

Accepted Answer

A)  Too broad,vague or incomplete,bland/uninspiring,not distinctive,and too reliant on superlatives 
B)  Unrealistic,unconventional,and unbusinesslike 
C)  Too specific,too inflexible,and can't be achieved in five years 
D)  Too broad,too narrow,and too risky 
E)  Not customer-driven,out-of-step with emerging technological trends,and too ambitious

Question 12

A company's values relate to such things as

Accepted Answer

A)  how it will balance its pursuit of financial objectives against the pursuit of its strategic objectives. 
B)  how it will balance the pursuit of its business purpose/mission against the pursuit of its strategic vision. 
C)  fair treatment,integrity,ethical behavior,innovativeness,teamwork,top-notch quality,superior customer service,social responsibility,and community citizenship. 
D)  whether it will emphasize stock price appreciation or higher dividend payments to shareholders,and whether it will put more emphasis on the achievement of short-term performance targets or long-range performance targets. 
E)  All of these

Question 13

Corporate strategy

Accepted Answer

A)  is primarily concerned with strengthening a company's market position and building competitive advantage. 
B)  is subject to being changed much less frequently than either a company's objectives or its mission statement. 
C)  should be based on a flexible strategic vision and mission. 
D)  ensures consistency in strategic approach among businesses of a diversified,multibusiness corporation. 
E)  determines balanced scorecard financial and strategic objectives.

Question 14

The strategy-making,strategy-executing process

Accepted Answer

A)  is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives. 
B)  includes establishing a company's mission,developing a business model aimed at making the company an industry leader,and crafting a strategy to implement and execute the business model. 
C)  embraces the tasks of developing a strategic vision,setting objectives,crafting a strategy,implementing and executing the strategy,and then monitoring developments and initiating corrective adjustments in light of experience,changing conditions,and new opportunities. 
D)  is principally concerned with sizing up an organization's internal and external situation,so as to be prepared for the challenge of developing a sound business model. 
E)  is primarily the responsibility of top executives and the board of directors;very few managers below this level are involved.

Question 15

Which of the following is not among the principal managerial tasks associated with managing the strategy execution process?

Accepted Answer

A)  Ensuring that policies and procedures facilitate rather than impede effective execution 
B)  Creating a company culture and work climate conducive to successful strategy implementation and execution 
C)  Surveying employees on how employee job satisfaction can be improved 
D)  Exerting the internal leadership needed to drive implementation forward 
E)  Tying rewards and incentives directly to the achievement of performance objectives

Question 16

Crafting strategy requires

Accepted Answer

A)  a collaborative effort that includes managers in various position at various organizational levels. 
B)  executive management involvement only. 
C)  participation by all employees. 
D)  a collaborative effort between the CEO and board members only. 
E)  All of these.

Question 17

A company's values concern

Accepted Answer

A)  whether and to what extent it intends to operate in an ethical and socially responsible manner. 
B)  how aggressively it will seek to maximize profits and enforce high ethical standards. 
C)  the beliefs and operating principles built into the company's "balanced scorecard" for measuring performance. 
D)  the beliefs,traits,and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. 
E)  the beliefs,principles,and ethical standards that are incorporated into the company's strategic intent and business model.

Question 18

Which one of the following is not a characteristic of an effectively worded strategic vision statement?

Accepted Answer

A)  Directional (is forward-looking,describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future) 
B)  Easy to communicate (is explainable in 10 to 15 minutes,can be reduced to a memorable slogan) 
C)  Graphic (paints a picture of the kind of company management is trying to create and the market position or positions the company is striving to stake out) 
D)  Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support) 
E)  Focused (is specific enough to provide guidance to managers in making decisions and allocating resources)

Question 19

A well-conceived strategic vision helps prepare a company for the future.True or false? Explain and justify your answer.

Accepted Answer

The answer of A well-conceived strategic vision helps prepare a...

Question 20

The difference between the concept of a company mission statement and the concept of a strategic vision is that

Accepted Answer

A)  a mission statement typically concerns a company's present business scope ("who we are and what we do")whereas the principal concern of a strategic vision is with the company's future business scope (long term direction and future product-customer-market-technology focus). 
B)  the mission is to make a profit,whereas a strategic vision concerns how to attract customers. 
C)  a mission statement deals with what to accomplish on behalf of shareholders and a strategic vision concerns what to accomplish on behalf of customers. 
D)  a mission concerns what to do to achieve short-run objectives and a strategic vision concerns what to do to achieve long-run performance targets. 
E)  a mission statement deals with "where we are headed" whereas a strategic vision provides the critical answer to "how will we get there."

Exam 2: Charting a Companys Direction: Vision and Mission, Objectives, and Strategy