CH 2 MGMT 4009

Which one of the following is NOT one of the five basic tasks of the strategy-making, strategy-executing process?

developing a profitable business model

A company’s strategic plan

outlines the competitive moves and approaches to be used in achieving the desired business results

Which of the following is an integral part of the managerial process of crafting and executing strategy?

Strategic Management and using them as yardsticks for measuring the company’s performance and progress

Which of the following are integral parts of the managerial process of crafting and executing strategy?

Developing a strategic vision, strategic management, and crafting a strategy

The strategy-making, strategy-executing process is shaped by

external factors such as the industry’s economic and competitive conditions and internal factors such as the company’s collection of resources and capabilities

When companies adopt the strategy-making and strategy-execution process, it requires they start by

developing a strategic vision, mission, and values

A company’s strategic vision concerns

a company’s directional path and future product-customer-market-technology focus

The real purpose of the company’s strategic vision

Serves as management’s tool for giving the organization a sense of direction

A strategic vision constitutes management’s view and conclusions about the company’s

long-term direction and what product-market-customer mix seems optimal

The managerial task of developing a strategic vision for a company

involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense

Which of the following is NOT an accurate attribute of an organization’s strategic vision?

outlining how the company intends to implement and execute its business model

Management’s strategic vision for an organization

charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense

Well-conceived visions are _ and _ to a particular organization and they avoid generic, feel-good statements that could apply to hundreds of organizations

distinctive; specific

What a company’s top executives are saying about where the company is headed long term with respect to its future product-market-customer-technology mix

constitutes the strategic vision for the company

One of the important benefits of a well-conceived and well-stated strategic vision is to

clearly communicate management’s aspirations for the company to stakeholders and help steer the energies of the company personnel in a common direction

The defining characteristic of a well-conceived strategic vision is

what it says about the company’s future course- "the direction we are headed and what our future product-market-customer focus will be."

Which of the following questions is NOT pertinent to company managers in thinking strategically about what directional path should be taken by the company and about developing a strategic vision?

What business approaches and operating practices should we consider in trying to implement and execute our business model?

WHich of the following questions is NOT something that company managers should consider in choosing to pursue one strategic course or directional path versus another?

Do we have a better business model than key rivals?

Which of the following are characteristics of an effectively worded strategic vision statement?

graphic, directional, and focused

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

consensus-driven

Which of the following is NOT a common shortcoming when wording a company’s vision statement? When the statement is somewhat

flexible-is adjusted according to changing circumstances

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

too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives

Breaking down resistance to a new strategic vision typically requires that management, on an as needed basis,

reiterate the company’s need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold

An encouraging and convincing strategic vision

should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction

The managerial task of effectively conveying the essence of strategic vision is made easier by

adopting a catchy slogan and then using it repeatedly to illuminate the direction and purpose of "where we are headed and why"

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

explaining "where we are going and why" and, more importantly, inspiring and energizing company personnel to unite to get the company moving in the intended direction

Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is

uniting company personnel behind managerial efforts to get the company moving in the intended direction

The benefit of a vivid, engaging, and convincing strategic vision is NOT its ability to

help company personnel understand the logic of the company’s business model

A sound. well-communicated strategic vision matters, and the related payoffs occur in several respects EXCEPT in connection with

avoiding strategic inflection points and management’s reaction in aligning decision choices

Which of the following is NOT the result of a well-conceived and communicated strategic vision?

Stockholders protest that the business is rudderless

A company’s mission statement typically addresses which of the following questions?

Who are we and what do we do?

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

a mission statement typically concerns a company’s purpose and its present business scope, whereas the principal concern of a strategic vision is a company’s aspirations for its future

The primary difference between a company’s mission statement and the company’s strategic vision is that

a mission statement typically concerns a company’s present business scope and purpose, whereas a strategic vision sets forth "where we aer going and why"

A company’s mission statement does NOT

explain "where we are headed"

A company should not couch its mission in terms of making a profit because a profit is more correctly an

objective and a result of what a company does

A company’s values or core values concern

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

A company’s values relate to such things as

fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship

The managerial purpose of Strategic Management includes all of the following EXCEPT

Delineating management’s aspirations for the business and providing a panoramic view of "where we are going."

Well-stated objectives are

quantifiable or measurable, and contain deadlines for achievement

A company needs financial objectives

because without adequate profitability and financial strength, the company’s ultimate survival is jeopardized

What does a company specifically exhibit when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective?

strategic intent

A company exhibits strategic intent when

it relentlessly pursues an ambitions strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective

Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing

stretch objectives which challenge the organization to deliver stretch gains in performance

A company needs financial objectives to

communicate management’s targets for financial performance and achieve strategic objectives

Which of the following is the best example of a well-stated financial objective?

Increase earnings per share by 15 percent annually

Which of the following is the best example of a well-stated strategic objective?

Overtake key competitors on product performance or quality within three years

Strategic objectives

relate to strengthening a company’s overall market standing and competitive position

Adopting a set of "stretch" financial and "stretch" strategic objectives

is an effective tool for pushing the company to perform at its full potential and deliver the best possible results

Which of the following is NOT an advantage of setting "stretch" objectives?

helping clarify the company’s strategic vision and strategic intent

Strategic intent refers to a situation where a company

relentlessly pursues an ambitious strategic objective

A "balances scorecard" for measuring company performance

strikes a "balance" between financial and strategic objectives

A "balanced scorecard" that included both strategic and financial performance targets is a conceptually strong approach for judging a company’s overall performance because

financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company’s future financial performance and business prospects

Perhaps the most reliable way for a company to improve its financial performance over time is to

recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance

A company that pursues and achieves strategic objectives

is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives

A company needs performance targets or objectives

for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units

Company objectives

need to be broken down into performance targets for separate businesses, product lines, functional departments, and individual work units

When trade-offs have to be made between achieving long-term and achieving short-term objectives

long-term objectives should take precedence unless the short-term performance targets have unique importance

The task of stitching together a strategy

entails addressing a series of hows: how to grow the business, how to please the customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.

Masterful strategies come from

doing things differently from competitors where it counts rather than running with the herd

The faster a company’s business environment is changing, the more critical it becomes for its managers to

pay attention to early warnings of future change and be willing to experiment to establish a market position in the future

Why should long-run objectives take precedence over short-run objectives

The focus is placed on improving performance in the near term

Which of the following is NOT an example of a financial objective?

Achieve a market share of nine percent

Which of the following is NOT an example of a strategic objective?

Boost internal cash flows by seven percent to fund new research and development activities

Strategy-making is

more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives

Which of the following is NOT an accurate description of the task of crafting a company’s strategy?

The task of crafting strategy is best done by a company’s chief strategic planning officer, who should report directly to the company’s CEO and board of directors

Managerial jobs with strategy-making responsibility

extend throughout the managerial ranks and exist in every part of a company-business units, operating divisions, functional departments, manufacturing plants, and sales districts

Which of the following most accurately describes the task or crafting a company’s strategy?

The more a company’s operations cut across different products, industries, and geographical areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants

A company’s overall strategy

is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy

In a diversified company, the strategy-making hierarchy consists of

corporate strategy, business strategies, functional strategies, and operating strategies

Corporate strategy for a diversified or multibusiness enterprise

is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries

Business strategy concerns

strengthening the market position and building competitive advantage for a single line of business

Business strategy, as distinct from corporate strategy, is chiefly concerned with

deciding how to build competitive advantage and improve performance in a particular line of business

Functional-area strategies

concern the actions, approaches, and practices to be employed in managing particular functions within a business

The primary role of a functional strategy is to

determine how to support particular activities in ways that support the overall business strategy and competitive approach

Operating strategies are primarily concerned with

how to manage initiatives of strategic significance within each functional area, and adding detail and completeness in ways that support functional strategies and the overall business strategy

In a single-business company, the strategy-making hierarchy consists of

business strategy, functional strategies, and operating strategies

A company’s strategic plan

lays out its future direction and business purpose, performance targets and strategy

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

surveying employees’ opinions on how costs can be reduced and how employee morale and job satisfaction can be improved

Which of the following principal aspects should be included in managing the strategy execution process?

organizing the company along the lines of the best practice

Management is obligated to monitor new external developments, evaluate the company’s progress, and make corrective adjustments in order to

decide whether to continue or change the company’s strategic vision, objectives, strategy and/or strategy execution methods

The leadership challenges that top executives face in making corrective adjustments when things are not going well include

deciding when adjustments are needed and what adjustments to make

The task of top executives when the company faces disruptive changes in its environment is to not only raise questions about the appropriateness of its direction and strategy, but also to

ferret out the causes and decide when adjustments are needed and what adjustments are needed for improved performance and operating excellence

In the strategy-making, strategy-executing process, effective corporate governance requires a company’s board of directors to

oversee the company’s strategic direction, evaluate the caliber of senior executives’ skills, handle executive compensation, and oversee financial reporting practices.

The key duties of a company’s board of directors in the strategy-making, strategy-executing process include

overseeing the company’s financial accounting and financial reporting practices and evaluating the caliber of senior executives’ strategy-making/strategy-executing skills

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

hiring and firing senior-level executives and working with the company’s chief strategic planning officer to improve the company’s strategy when performance comes up short of expectations

Every corporation should have a strong independant board of directors that does all of the following EXCEPT

is responsible for leading the strategy-making. strategy-executing process

Corporate governance failures at Fannie Mae and Freddy Mac included all of the following EXCEPT

a strong independent board of directors that was responsible for making independent judgements about the validity and wisdom of management’s proposed strategic actions

Proficient strategy execution does NOT include

surveying employees on how employee job satisfaction can be improved