Chapter 2 the Business Vision and Mission

Chapter 2   The Business Vision and Mission

1. 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.

1. Which statement is TRUE?

1. Companies must choose between having a mission statement or a vision statement.
2. A company can't have a mission statement unless it has a vision statement.
3. A vision statement cannot be established until a company has developed its mission statement.
4. The vision statement should be established before the mission statement.
5. Companies are required by law to have both mission and vision statements.

1. 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?

1. Which type of statement should be created first and foremost?

1. Creed
2. Vision
3. Objectives
4. Mission
5. Competitive advantage

1. 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.

1. Which basic question should the vision statement answer?

1. What is our business?
2. How can we improve ourselves?
3. What do we want to become?
4. Who are our stakeholders?
5. How can we increase profitability?

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

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

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

1. Developing vision and mission statements
2. Performing external audits
3. Performing internal audits
4. Measuring and evaluating performance
5. Establishing long-term objectives

1. 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.

1. According to Drucker, which question is synonymous with asking "What is our mission?"?

1. What is our business?
2. How can we improve ourselves?
3. What do we want to become?
4. Who are our stakeholders?
5. How can we increase profitability?

1. 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.

1. 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

1. 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.

1. 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.

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

1. Requesting that managers modify the current documents
2. Asking managers to read selected articles about vision and mission statements
3. Asking managers to prepare a vision statement for the organization
4. A brainstorming session on whether the organization should have only a vision statement
5. Merging several mission statements into one document

1. 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.

1. A(n) ________ with expertise in developing vision and mission statements and with unbiased views, can at times manage the process more effectively than an internal group or committee of managers.

1. external group
2. external auditor
3. outside process analyst
4. internal auditor
5. outside facilitator

1. 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

1. According to the comprehensive strategic-management model, which step immediately follows the establishment of long-term objectives?

1. Developing vision and mission statements
2. Performing external audits
3. Performing internal audits
4. Generating, evaluating, and selecting strategies
5. Measuring and evaluating performance

1. According to Drucker, what is the best time to ask "What do we want to become?" and "What is our business?"?

1. When a firm is in decline
2. When the firm is successful
3. When the firm is in financial trouble
4. When the firm is in legal trouble
5. When the firm encounters competition

1. Which group would be classified as stakeholders?

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

1. Which best expresses former Colgate CEO Reuben Mark's thoughts on vision?

1. It's becoming less important that a clear mission make sense internationally.
2. It's essential to drive home different messages in different cultures.
3. Keeping the vision simple will never rally everyone to the corporate banner.
4. Pushing one vision globally is essential.
5. Elevated missions or visions will alienate international markets.

1. 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. A and B only
5. All of the above

1. 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

1. All stakeholders

1. have claims and concerns about an organization, but these claims and concerns vary.
2. have the same claims and concerns about an organization.
3. have ownership rights in an organization.
4. have the same voting rights in an organization.
5. have environmental concerns as their top priority.

1. 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.

1. 6) The potential for creative growth in an organization can be limited by

1. an overemphasis on stakeholders.
2. not enough emphasis on stakeholders.
3. a mission statement that is too general.
4. a mission statement that is too specific.
5. a mission statement that is too dynamic.

1. 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

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

1. environmental concerns; social responsibility
2. social responsibility; the treatment of employees
3. the treatment of employees; environmental concerns
4. profitability; social responsibility
5. social responsibility; profitability

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

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

1. In developing a mission statement, arousing emotion

1. is not a benefit.
2. is futile.
3. is important.
4. should be avoided if possible.
5. is counterproductive.

1. 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.

1. An effective mission statement does all of the following EXCEPT

1. it reflects judgments about future growth directions that are based upon forward-looking external and internal analyses.
2. it provides useful criteria for selecting among alternative strategies.
3. it provides a basis for generating and screening strategic options.
4. it is static in orientation.
5. it should be enduring.

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

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

1. Which of these examples of a mission statement focus area does NOT identify the utility of the firm's products to its customers?

1. AT&T focuses on communication rather than telephones.
2. ExxonMobil focuses on oil and gas rather than energy.
3. Union Pacific focuses on transportation rather than railroads.
4. Universal Studios focuses on entertainment rather than movies.
5. A clothing retailer focuses on attractive looks rather than on clothes.

1. All of the following utility statements are relevant in developing a mission statement EXCEPT

1. Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
2. Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
3. Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.
4. Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
5. Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.

1. The recommended length of an effective mission statement is ________ words.

1. approximately 25
2. no more than 100
3. less than 150
4. at least 300
5. more than 500

1. 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?

1. An effective mission statement should do all of the following EXCEPT

1. include monetary amounts, numbers, percentages and ratios.
2. be inspiring.
3. reveal that the firm is environmentally responsible.
4. identify the utility of a firm's products.
5. be reconciliatory.

1. The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement?

"We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services."

1. Markets
2. Customers
3. Concern for Employees
4. Concern for Public Image
5. Technology

1. 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.

1. Effective mission statements can vary in

1. length.
2. content.
3. format.
4. specificity.
5. all of the above

1. 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

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

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

1. 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.

1. Which question is NOT addressed 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. What are the updated balances of leading accounts on the firm's balance sheet?

1. 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

1. The critiqued mission statements of PepsiCo and Royal Caribbean; both lacked the following component(s).

1. Customer 
2. Public Image
3. Employees
4. Both Customer Component and Employees Component
5. None of the above