Exam 2: Charting a Companys Direction

A) extend throughout the managerial ranks and exist in every part of a company-business units, operating divisions, functional departments, manufacturing plants, and sales districts.
B) are primarily located in the strategic planning departments of large corporations.
C) are relatively rare because most strategy making is done by the members of a company's board of directors.
D) seldom exist within a functional department (e.g., marketing and sales) or in an operating unit (a plant or a district office) because these levels of the organization structure are well below the level where strategic decisions are typically made.
E) are found only at the vice-president level and above in most companies.

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A) what the firm's operating departments are doing and plan to do to unify the company's functional and business strategies.
B) the specific plans for building competitive advantage in each major department and operating unit.
C) 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.
D) how best to carry out the company's corporate strategy.
E) how best to implement and execute the company's different business-level strategies.

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A) obligation and a reason for what a company does.
B) objective and a result of what a company does.
C) outlay and a rationale for what a company does.
D) obligation and a responsibility for what a company does.
E) outflow and a right of what a company does.

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A) ensure that policies and procedures facilitate rather than impede effective execution
B) create a company culture and work climate conducive to successful strategy implementation and execution
C) survey employees for their opinions about how to implement strategies for cost reductions and improvements in employee morale and job satisfaction
D) exert the internal leadership needed to drive implementation forward and keep improving on how the strategy is being executed
E) motivate people and link rewards and incentives directly to the achievement of performance objectives and good strategy execution

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A) mission statement explains why it is essential to make a profit, whereas the strategic vision explains how the company will be a moneymaker.
B) mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why."
C) mission statement deals with how to please customers, whereas a strategic vision deals with how to please shareholders.
D) mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"
E) mission statement addresses "how we are trying to make a profit today," while a strategic vision concerns "how will we make money in the markets of tomorrow?"

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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.
E) whether it will put more emphasis on the achievement of short-term performance targets or long-range performance targets.

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Financial objectives communicate managem...

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

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A) charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense.
B) describes in fairly specific terms the organization's 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 intent and the actions and moves that will be undertaken to achieve it.

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A) long-term objectives should take precedence unless the short-term performance targets have unique importance.
B) long-term objectives should take precedence because of the need for future survival.
C) short-term objectives should take precedence because they focus attention on delivering performance improvement.
D) short-term objectives should take precedence unless the long-term performance targets are not achievable.
E) long-term objectives should never take precedence until the short-term objective is achieved.

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A) it assists managers in putting roughly equal emphasis on short-term and long-term performance targets.
B) it entails putting equal emphasis on good strategy execution and good business model execution.
C) a balanced-scorecard approach pushes managers to avoid strategic management that reflects the results of past decisions and organizational activities.
D) 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.
E) it forces managers to put equal emphasis on financial and strategic objectives.

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A) ought to put "who we are and what we are doing" in writing rather than orally so as to leave no room for company personnel to misinterpret what the strategic vision really is.
B) 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.
C) tends to be more effective when top management avoids trying to capture the essence of the strategic vision in a catchy slogan.
D) is most efficiently and effectively done by posting the strategic vision prominently on the company's website and encouraging employees to read it.
E) should be explained after the company's strategic intent, strategy, and business model have been conveyed to company personnel.

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A) spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment.
B) communicate management's targets for financial performance and achieve strategic objectives.
C) indicate to employees whether the emphasis should be on earnings per share, return on investment, return on assets, or positive cash flow.
D) convince shareholders that top management is acting in their interests.
E) counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance.

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A) clearly delineate how the company's business model will be implemented and executed.
B) clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction.
C) set forth the firm budgetary objectives in clear and fairly precise terms.
D) help create a balanced scorecard approach to objective setting and not stretch the company's resources too thin across different products, technologies, and geographic markets.
E) indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the industry leader.

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A) entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.
B) is primarily an exercise in deciding which of several freshly emerging market opportunities to pursue.
C) is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements.
D) requires trying to copy the strategies of industry leaders as closely as possible.
E) is mainly an exercise in good planning.

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A) entails putting equal emphasis on financial and strategic objectives.
B) entails putting balanced emphasis on profit and nonprofit objectives.
C) prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives.
D) prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives.
E) strikes a balance between financial and strategic objectives.

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A) developing a proven business model.
B) deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage.
C) developing a strategic vision.
D) communicating the company's values and code of conduct to all employees.
E) deciding on the company's strategic intent.

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A) is likely to weaken the achievement of its short-term and long-term financial objectives.
B) believes that the company's financial performance is not as important as it really is.
C) is generally not strongly focused on its true mission of making a profit.
D) 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.
E) is likely to be a weak financial performer because diverting resources to the pursuit of strategic objectives takes away from the achievement of financial performance targets.

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