Management 460 Chapter 2

A. is management's story line for how it plans to implement and execute a profitable business model. B. sets forth what business the company is presently in and why it uses particular operating practices in trying to please customers. *C. serves as management's tool for giving the organization a sense of direction. D. defines "who we are and what we do." E. spells out a company's strategic intent, its strategic and financial objectives, and the business approaches and operating practices that will underpin its efforts to achieve sustainable competitive advantage.

A. converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve. B. using the objectives as yardsticks for tracking the company's progress and performance. C. challenging and helping stretch the organization to perform at its full potential and deliver the best possible results. D. pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position. *E. All of these.

*A. Who are we and what do we do? B. What objectives and level of performance do we want to achieve? C. Where are we going and what should our strategy be? D. What approach should we take to achieve sustainable competitive advantage? E. What business model should we employ to achieve our objectives and our vision?

A. a mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets. B. the mission is to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit. C. a mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers. *D. a mission statement typically concerns a company's purpose and its present business scope ("who we are and what we do and why we are here"), whereas the principal concern of a strategic vision portrays a company's aspirations for its future ("where are we going"). E. a mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"

A. "who we are and what we do." B. why the company does certain things in trying to please its customers. C. management's storyline of how it intends to make a profit with the chosen strategy. *D. management's aspirations for the future and delineates the company's strategic course and long-term direction. E. what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

A. integrating the company's values into its vision and mission/business purpose into one single statement. B. using a values-based balanced scorecard to measure the company's progress in achieving the vision. C. making achievement of the values a prominent part of the company's strategic objectives. *D. making it clear that company personnel are expected to live up to the values in conducting the company's business and pursuing its strategic vision. E. making adherence to the company's values the centerpiece of the company's strategy.

A. is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives.and external situation, so as to be prepared for the challenges of developing a sound business model. B. includes establishing a company's mission, developing a business model aimed at making the company an industry leader, and crafting a strategy to implement and execute the business model. *C. embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities. D. is principally concerned with sizing up an organization's internal and external situation, so as to be prepared for the challenges of developing a sound business model. E. is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved in the process.

A. Developing a strategic vision of where the company needs to head and what its future business makeup will be. B. Setting objectives to convert the strategic vision into specific strategic and financial performance outcomes for the company to achieve. C. Crafting a strategy to achieve the objectives and get the company where it wants to go. *D. Developing a profitable business model. E. Executing the chosen strategy efficiently and effectively.

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

A. Senior executives solidify their own view of the firm's long-term direction. B. The risk of rudderless decision-making is minimized. C. Organizational members support the changes internally that will help make the vision a reality. D. Assists the organization in preparing for the future. *E. All of these.

A. whether and to what extent it intends to operate in an ethical and socially responsible manner. B. how aggressively it will seek to maximize profits and enforce high ethical standards. C. the beliefs and operating principles built into the company's "balanced scorecard" for measuring performance. *D. 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. E. the beliefs, principles, and ethical standards that are incorporated into the company's strategic intent and business model.

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

A. widespread; unique B. recurring; customary *C. distinctive; specific D. customary; familiar E. universal; established

strategic plan

strategic vision

values

objectives

stretch objectives

strategic intent

financial objectives

strategic objectives

balanced scoreboard

corporate strategy

business strategy

operating strategies

functional- area strategies

a strategic plan

ongoing process/never final