Chapter 2 Quiz + Answers
1. When companies adopt the strategy-making and strategy execution process it requires they start bydeveloping a strategic vision, mission and values
2. The strategic management process is shaped byexternal factors such as the industry’s economic and competitive conditions and internal factors such as the company’s collection of resources and capabilities
3. When a company is confronted with significant industry change that mandates radical revision of its strategic course, the company is said to have encountereda strategic inflection point
4. A company’s strategic plan consists ofa vision of where it is headed, a set of performance targets, and a strategy to achieve them
5. Top management’s views about where the company is headed and what its future product-customer-market-technology will beconstitutes the strategic vision for the company
6. Well-conceived visions aredistinctivespecific to a particular organizationfree of generic, feel-good statementsnot innocuous one-sentence statementsAll of these
7. Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of 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
8. A company’s mission statement typically addresses which of the following questionsWho we are, what we do, and why we are here
9. 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
10. The managerial purpose of setting objectives includes converting the strategic vision into specific performance targets using the objectives as yardsticks for tracking the company’s progress and performance challenging the organization to perform at its full potential and deliver the best possible results establishing deadlines for achieving performance results
11. A company needs financial objectives because without adequate profitability and financial strength, the company’s ultimate survival is jeopardized
12. Strategic objectives relate to strengthening a company’s overall market standing and competitive vitality
13. A balanced scorecard for measuring company performanceentails striking a balance between financial objectives and strategic objectives
14. A balanced scorecard that includes both strategic and financial performance targets is a conceptually strong approach for judging a company’s overall performance becausefinancial 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
15. A company needs performance targets or objectivesfor its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units
16. Business strategy concernsensuring consistency in strategic approach among the businesses of a diversified company
17. In a single-business company, the strategy-making hierarchy consists ofbusiness strategy, functional strategies, and operating strategies
18. Functional strategiesconcern the actions, approaches, and practices related to particular functions or processes within a business
19. Operating strategies concernthe relatively narrow strategic initiatives and approaches for managing key operating units within a business and for performing strategically significant operating tasks
20. Management is obligated to monitor new external developments, evaluate the company’s progress, and make corrective adjustments in order todecide whether to continue or change the company’s strategic vision, objectives, strategy and/or strategy execution methods
