Chapter 2 Quiz + Answers Essay

1. When companies adopt the strategy-making and strategy execution military operation it requires they start bydeveloping a strategic vision, mission and values2. The strategic worry process is shaped byexternal factors such(prenominal) as the industrys economic and competitive conditions and internal factors such as the companys aggregation of resources and capabilities3. 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 office4. A companys strategic plan consists ofa vision of where it is headed, a set of performance targets, and a strategy to achieve them5. Top managements views about where the company is headed and what its future product-customer-market-technology will beconstitutes the strategic vision for the company6. Well-conceived visions aredistinctivespecific to a particular cheekfree of generic, feel-good statementsnot innocuous one-sente nce statementsAll of these7. Effectively communicating the strategic vision down the line to lower-level managers and employees has the value ofnot only explaining where we are tone ending and why but, more importantly, also inspiring and energizing company personnel to unite to get the company moving in the intended direction8. A companys mission statement typically addresses which of the following questionsWho we are, what we do, and why we are here9. A companys values relate to such things asfair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship10. The managerial purpose of setting objectives includesconverting the strategic vision into specific performance targets utilize the objectives as yardsticks for tracking the companys progress and performancechallenging the organization to perform at its full potential and deliver the best mathematical resultsestablishing dead lines for achieving performance results11. A company needs financial objectivesbecause without adequate profitability and financial strength, the companys ultimate survival is jeopardized12. Strategic objectivesrelate to beef up a companys overall market standing and competitive vitality13. A balanced scorecard for measuring company performanceentails salient(ip) a balance between financial objectives and strategic objectives14. A balanced scorecard that includes both strategic and financial performance targets is a conceptually tough approach for judging a companys 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 companysfuture financial performance15. A company needs performance targets or objectivesfor its trading operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units16. Business strategy concernsensuring consistency in strategic approach among the businesses of a diversified company17. In a single-business company, the strategy-making hierarchy consists ofbusiness strategy, functional strategies, and operating strategies18. Functional strategiesconcern the actions, approaches, and practices related to particular functions or processes within a business19. Operating strategies concernthe relatively narrow strategic initiatives and approaches for managing key operating units within a business and for performing strategically significant operating tasks20. Management is obligated to monitor new external developments, evaluate the companys progress, and make corrective adjustments in order to conclude whether to continue or change the companys strategic vision, objectives, strategy and/or strategy execution methods