Strategy – FAQ – 03

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List of FAQs

Q1

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

  1. True
  2. False

Q2

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

  1. True
  2. False

Q3

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

  1. True
  2. False

Q4

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

  1. True
  2. False

Q5

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

  1. True
  2. False

Q6

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

  1. True
  2. False

Q7

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

  1. True
  2. False

Q8

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

  1. True
  2. False

Q9

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

  1. True
  2. False

Q10

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

  1. True
  2. False

Q11

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

  1. True
  2. False

Q12

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

  1. True
  2. False

Q13

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

  1. True
  2. False

Q14

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

  1. True
  2. False

Q15

A mission statement is usually just a simple statement of specific details.

  1. True
  2. False

Q16

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

  1. True
  2. False

Q17

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

  1. True
  2. False

Q18

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

  1. True
  2. False

Q19

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

  1. True
  2. False

Q20

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

  1. True
  2. False

Q21

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

  1. True
  2. False

Q22

A mission statement can sometimes be called a statement of philosophy.

  1. True
  2. False

Q23

According to Peter Drucker, answering the question “What is our business?” is the first responsibility of strategists.

  1. True
  2. False

Q24

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

  1. True
  2. False

Q25

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

  1. True
  2. False

Q26

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.

  1. True
  2. False

Q27

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

  1. True
  2. False

Q28

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

  1. True
  2. False

Q29

One benefit of having a clear mission and vision is that it projects a sense of worth and intent to all stakeholders.

  1. True
  2. False

Q30

Having a clear mission and vision can provide a basis for a company’s internal and external assessments.

  1. True
  2. False

Q31

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.

  1. True
  2. False

Q32

The mission statement should be short, preferably one sentence.

  1. True
  2. False

Q33

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

  1. True
  2. False

Q34

A mission statement is usually just a simple statement of specific details.

  1. True
  2. False

Q35

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

  1. True
  2. False

Q36

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

  1. True
  2. False

Q37

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

  1. True
  2. False

Q38

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

  1. True
  2. False

Q39

As presented in the text book Vern McGinnis believes that a mission statement should empower keenly insightful leadership by an organization’s top management.

  1. True
  2. False

Q40

AT&T’s mission statement focuses on telephones rather than on communication.

  1. True
  2. False

Q41

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

  1. True
  2. False

Q42

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

  1. True
  2. False

Q43

Union Pacific’s mission statement focuses on environmental stewardship rather than on transportation or railroads because good mission statements identify the utility of a firm’s products to its customers.

  1. True
  2. False

Q44

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

  1. True
  2. False

Q45

The operating philosophy of organizations should be to develop a product and then try to find a market for it.

  1. True
  2. False

Q46

A firm’s philosophy in a mission statement addresses the question, “What is the firm’s distinctive competence?”

  1. True
  2. False

Q46

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

  1. True
  2. False

Q47

The critiqued mission statements of PepsiCo and Royal Caribbean both lacked the “Customers” component.

  1. True
  2. False

Q48

All of the following are mentioned as places where vision and mission statements can often be found except…

  1. SEC reports
  2. annual reports
  3. customer service agreements
  4. supplier agreements
  5. business plans

Q49

Which of these basic questions should a vision statement answer?

  1. What is our business?
  2. What is our core strength?
  3. What are our challenges?
  4. What do we want to become?
  5. Who are our competitors?

Q50

The ideal length of a vision statement is…

  1. one page
  2. several paragraphs
  3. one sentence
  4. several sentences
  5. as long as is necessary to convey the message

Q51

Who is referred to as “the father of modern management”?

  1. Cleland
  2. Campbell
  3. Drucker
  4. McGinnis
  5. Yeung

Q52

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

  1. a reason for being
  2. an annual financial plan
  3. a statement of purpose
  4. a statement of beliefs
  5. whom an organization wants to serve

Q53

According to Drucker, a business’ mission is the foundation for all of the following except…

  1. priorities
  2. strategies
  3. plans
  4. employee wage rates
  5. work assignments

Q54

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

  1. short-term objective
  2. implementation plan
  3. audit policy
  4. mission statement
  5. evaluation strategy

Q55

Effective and carefully planned mission statements

  1. require major changes every few months
  2. require major changes every few quarters
  3. require major revision every few years
  4. do not require revision
  5. require infrequent major changes, but are always subject to revision

Q56

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

  1. as few managers as possible
  2. as many managers as possible
  3. upper-level management only
  4. lower-level management only
  5. the board of directors only

Q57

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

  1. ask managers to read several articles about mission statements as background information
  2. vote on the mission statement
  3. ask managers to prepare a mission statement for the organization
  4. ask managers to seek support for the mission statement from their subordinates
  5. request modifications, additions, and deletions

Q58

According to Campbell and Yeung, what is/are most likely associated with behavior and the present? 

  1. Mission
  2. Values
  3. Long-term objectives
  4. Vision
  5. Possibilities

Q59

Which group would be classified as stakeholders?

  1. Governments
  2. Creditors
  3. Suppliers
  4. Employees
  5. All of the above

Q60

When developing a mission statement, what is needed before people can focus on specific strategy formulation activities?

  1. Negotiation
  2. Compromise
  3. Eventual agreement
  4. 1 and 2 only
  5. All of the above

Q61

All stakeholders’ claims on an organization _____ pursued with equal emphasis.

  1. cannot be
  2. should always be
  3. are required to be
  4. must ideally be
  5. can usually be

Q62

A good mission statement has…

  1. an employee orientation
  2. a customer orientation
  3. a shareholder orientation
  4. an environmental orientation
  5. a profit orientation

Q63

An overly general mission statement that ____ could be dysfunctional.

  1. does not exclude any strategy alternatives
  2. encourages management creativity
  3. excludes all diversification
  4. endorses the consideration of feasible potential strategies
  5. allows for the generation and consideration of a range of alternative objectives

Q64

In order to appeal to diverse stakeholders, an effective mission statement should be…

  1. inflammatory
  2. provocative
  3. contentious
  4. reconciliatory
  5. dysfunctional

Q65

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

  1. it should be broad enough to include all ventures
  2. it should be stated in clear terms
  3. it should distinguish an organization from all others
  4. it should define what an organization is
  5. it should serve as a framework for evaluating both current and prospective activities

Q66

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

  1. utility
  2. price
  3. profit margin
  4. demand
  5. popularity

Q67

What question is asked in conjunction with the philosophy component of a mission statement?

  1. What are the firm’s major products or services?
  2. Is the firm committed to growth and financial soundness?
  3. What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
  4. Is the firm responsive to social, community, and environmental concerns?
  5. Are employees a valuable asset of the firm?

Q68

Which of the following illustrates the self-concept component of a mission statement?

  1. To earn our customer’s loyalty, we listen to them, anticipate their needs, and act to create value in their eyes.
  2. 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.
  3. Our emphasis is on North American markets, although global opportunities will be explored.
  4. To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations.
  5. In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure our ultimate success.

Q69

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

  1. Technology
  2. Philosophy
  3. Concern for public image
  4. Customers
  5. Self-concept

Q70

Which question(s) is answered in an effective mission statement?

  1. Is the firm committed to growth and financial soundness?
  2. Are employees a valuable asset of the firm?
  3. Geographically, where does the firm compete?
  4. Who are the firm’s customers?
  5. All of the above questions are answered in an effective mission statement.

Q71

Which of the following is not one of the nine recommended components of a mission statement?

  1. Strategies
  2. Self-concept
  3. Employees
  4. Markets
  5. Customers