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MultipleChoiceQuiz
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ResultsReporter
Outof21questions,youanswered3correctlywithafinalgradeof14%
3correct(14%)
18incorrect
(86%)
0unanswered
(0%)

YourResults:
Thecorrectanswerforeachquestionisindicatedbya

1
INCORRECT

Whichoneofthefollowingisnotanintegralpartofthemanagerialprocessofcraftingandexecutingstrategy?
A) Developingastrategicvision
B) Developingaprovenbusinessmodel
C) Settingobjectivesandcraftingastrategytoachievethem
D) Monitoringdevelopments,evaluatingperformance,andinitiatingcorrectiveadjustmentsinthecompany'slong
termdirection,objectives,strategy,orexecution
E) Implementingandexecutingthechosenstrategyefficientlyandeffectively
Feedback:

2
INCORRECT

Astrategicvisionforacompany
A) involveshowfasttopursuethechosenstrategyandreachthetargetedlevelsofperformance.
B) consistsofthinkingthroughwhatitwilltaketomakethechosenstrategyworkasplanned.
C) isaroadmapthatdelineatesmanagement'sviewofthecompany'sfuture"wherewearegoingandwhy."
D) spellsouthowthecompanyisgoingtogetfromwhereitisnowtowhereitwanttogoandwhenitisexpectedto
arrive.
E) concernsmanagement'sviewofhowtotransitionthecompany'sbusinessmodelfromwhereitisnowtowhereit
needstobe.
Feedback:

3
INCORRECT

Whichofthefollowingisnotanimportantconsiderationindecidingtocommittoonedirectionalpathversusanother?
A) Arechangespresentlyunderwayinthemarketandcompetitivelandscapeactingtoenhanceorweakenthe
company'sbusinessoutlook?
B) Whereshouldweheadinordertoprovethatourbusinessmodelisviableandthatourstrategyisworking?
C) Willthecompany'spresentbusinessgeneratesufficientgrowthandprofitabilityintheyearsaheadtoplease
shareholders?
D) What,ifany,newgeographicmarketsand/orcustomergroupsshouldthecompanygetinpositiontoserve?
E) Whatareourambitionsforthecompanywhatindustrystandingdowewantthecompanytohave?
Feedback:

4
INCORRECT

Thedifferencebetweenacompany'smissionstatementandtheconceptofastrategicvisionisthat
A) themissionstatementlaysoutthedesiretomakeaprofit,whereasthestrategicvisionaddresseswhatstrategy
thecompanywillemployintryingtomakeaprofit.
B) amissionstatementdealswith"whereweareheaded"whereasastrategicvisionprovidesthecriticalanswerto
"howwillwegetthere?"
C) amissiondealswithwhatacompanyistryingtodoandavisionconcernswhatacompanyoughttodo.
D) amissionstatementtypicallyidentifieswhatthecompany'sproductsorservicesare(whatwedo)andthe
customersandmarketsitserves(whywearehere),whereasthefocusofastrategicvisionison"whereweare
goingandwhy."
E) amissionisaboutwhattoaccomplishforshareholderswhereasastrategicvisionconcernswhattoaccomplishfor
customers.
Feedback:

5
INCORRECT

Whichoneofthefollowingisnotacharacteristicofaneffectivelywordedstrategicvisionstatement?
A) Directional(sayssomethingaboutthecompany'sjourneyanddestinationandthekindsofbusinessandstrategic
changesthatwillbeforthcoming)
B) Inspirational(iswordedinamotivationalandstirringwaythatwillgarnerenthusiasticandenergeticsupportfrom
companypersonnelandshareholders)
C) Graphic(paintsaclearpicture)
D) Easytocommunicate(ideally,explainablein10minutes)
E) Focusedandflexible(hasspecificsbutstopsshortofaonceandforalltimepronouncementbecausethestrategic
pathmayneedtobechangedaseventsunfold)
Feedback:

6
INCORRECT

Whichofthefollowingisacommonshortcomingofcompanyvisionstatements?
A) Incompleteorvagueshortonspecifics
B) Tooreliantonsuperlatives(best,mostsuccessful,recognizedleader,globalorworldwideleader,firstchoiceof
buyers)
C) Sobroadthatitreallydoesn'truleoutpursuingmostanyopportunitymanagementspots
D) Notdistinctivecouldapplytomostanycompany(oratleastseveralothersinthesameindustry)

E) Alloftheabovearecommonshortcomings
Feedback:

7
INCORRECT

Acompany'svaluescanrelateto
A) howitwilltreatemployeesandcustomersandtheimportancethecompanyplacesofteamwork.
B) expectationsthatcompanypersonnelwillexhibitintegrityandfairnessinconductingthecompany'sbusiness.
C) theemphasisthecompanywillplaceoninnovativenessorqualityorcustomerservice.
D) thecompany'sbeliefsinhighethicalstandards,sociallyresponsiblebehavior,andgivingbacktothecommunity.
E) Alloftheabove.
Feedback:

8CORRECT

Whenthere'sanorderofmagnitudechangeinacompany'senvironmentthatdramaticallyaltersitsprospectsand
mandatesradicalrevisionofitsstrategiccourse,thecompanyissaidtohaveencountered
A) astrategicinflectionpoint.
B) adirectionalcrossroads.
C) anewstrategicintentopportunity.
D) astrategicroadblockthatrequiresanewstrategicvisionandbusinessmodel.
E) aquantumconflictbetweenitsstrategyanditsstrategicvision(thatusuallyrequireschangingboththevisionand
thestrategy).
Feedback:

9CORRECT

Acompany'sobjectivesorperformancetargets
A) representamanagerialcommitmenttoachievingquantifiableormeasurableoutcomesandresultsbyacertain
timeandareneededforeachallareasofthebusinessthatmanagersdeemimportanttoorganizationalsuccess.
B) aretypicallyestablishedafteracompanydecidesonastrategicvisionandstrategysothattheywillentail
performancetargetsthattrulysignalbusinesssuccess.
C) arebeststatedingeneralterms(maximizeprofits,reducecosts,increasesales)ratherthanquantifiableterms
(increaseaftertaxprofitsby10%in2years,growsalesrevenuesby20%annually)sothatmanagerswillhave
thelatitudetoadjusttargetoutcomestolevelsthatcanbeachieved.
D) shouldplacefarmoreemphasisonfinancialperformancetargetsthanstrategicperformancetargets.
E) Allofthese.
Feedback:

10
INCORRECT

Whichofthefollowingrepresentsthebestexampleofastrategicobjective(asopposedtoafinancialobjective)?
A) Achieverevenuegrowthof10%annually
B) Increasemarketsharefrom17%to22%within3yearsandachievethelowestoverallcostsofanyproducerinthe
industry
C) Boostearningspershareby15%annuallybyofferingcustomersthewidestselectionofproductsintheindustry
D) AchieveaAAbondratingwithin2yearsandanannualcashflowof$500million
E) Increasethecompany'sreturnoninvestedcapitalfrom13.5%to15.0%within2yearsbypayingmoreattention
toreducingcosts
Feedback:

11
INCORRECT

Establishingandachievingstrategicobjectivesmeritsveryhighpriorityonmanagement'sagendabecause
A) tradingoffbetterfinancialperformanceforbuildingastrongercompetitivepositionprovidesbetterbenefitsto
shareholdersinboththeshortrunandthelongrun.
B) acompanycan'thaveashrewdstrategicvisionwithouthavingaggressiveandcompetitivelyastutestrategic
objectives.
C) thesurestpathtosustainedfutureprofitabilityissuccessfullypursuingactionsthatstrengthenacompany's
competitivenessandmarketposition.
D) wellchosenstrategicobjectivesareessentialtoawellcraftedstrategy
E) acompanycannotachieveitsstrategicintentandstrategicvisionorgainacompetitiveadvantageoverrivals
withouthavingandachievingstrategicobjectives.
Feedback:

12
CORRECT

Whichofthefollowingstatementsaboutobjectivesisfalse?
A) Acompany'smanagersarewelladvisedtogivetheachievementoffinancialobjectivesamuchhigherprioritythan
theachievementofstrategicobjectives.
B) Companywideobjectivesneedtobebrokendownintoperformancetargetsforeachseparatebusiness,productline,
functionaldepartment,andindividualworkunitbecausecompanyperformancecan'treachfullpotentialwithout
eachareaoftheorganizationdoingitspartandcontributingdirectlytothedesiredcompanywideoutcomesand
results.
C) A"balancedscorecard"formeasuringcompanyperformanceviewsfinancialperformancemeasuresaslagging
indicatorsthatreflecttheresultsofpastdecisionsandorganizationalactivitiesandviewsstrategicperformance
measuresasleadingindicatorsofacompany'sfuturefinancialperformance.
D) Objectivesshouldbesetathighenoughlevelstostretchanorganizationtoreachitsfullpotential.
E) Acompany'sobjectivesfunctionasyardsticksfortrackinganorganization'sperformanceandprogressandshould
bequantifiableormeasurableandcontainadeadlineforachievement.
Feedback:

13
INCORRECT

Abalancedscorecardformeasuringcompanyperformance
A) entailsbalancingthepursuitofgoodbottomlineprofitagainstthepursuitofnonprofitobjectives(although
achievingprofitabilitytargetsisnearlyalwaysgivengreateremphasis).
B) involvesputtingequalemphasisontheachievementoffinancialobjectives,strategicobjectives,andsocial
responsibilityobjectives.
C) entailssettingbothfinancialandstrategicobjectivesandputtingbalancedemphasisontheirachievement.
D) helpspreventthepursuitofstrategicobjectivesfromdominatingthepursuitoffinancialobjectives.
E) isnecessaryinordertopreventthedriveforachievingfinancialobjectivesfromweakeningtheattentionpaidto
socialresponsibility,communitycitizenship,andotherworthygoals.
Feedback:

14

Acompanyexhibitsstrategicintentwhen

INCORRECT
A) itpursuesitsstrategicvision.
B) itrelentlesslypursuesanambitiousstrategicobjectiveandconcentratesitsfullresourcesandcompetitiveactions
onachievingthatobjective.
C) itadoptsastrategicplanandtriestoexecuteit.
D) itsetsobjectivesandpursuestheirachievement.
E) Alloftheabove.
Feedback:

15
INCORRECT

Thetaskofcraftingastrategyis
A) thefunctionandresponsibilityofafewhighlevelexecutives.
B) moreofacollaborativegroupeffortthatinvolvesallmanagersandsometimeskeyemployeesstrivingtoarriveata
consensusonwhattheoverallbeststrategyshouldbe.
C) thefunctionandresponsibilityofacompany'sstrategicplanningstaff.
D) ajobforacompany'swholemanagementteamseniorexecutivesplusthemanagersofbusinessunits,operating
divisions,functionaldepartments,manufacturingplants,andsalesdistricts(asperthestrategymakingpyramid
showninFigure2.2).
E) firstandforemostthefunctionandresponsibilityofacompany'sboardofdirectors.
Feedback:

16
INCORRECT

Acompany'soverallstrategy
A) isreallyacollectionstrategicinitiativesandactionsdevisedbymanagersandkeyemployeesupanddownthe
wholeorganization.
B) consistsofitsstrategicvision,missionstatement,financialandstrategicobjectives,andstrategicinitiatives
undertakenfromthetoptothebottomofitsstrategymakingpyramid(seeFigure2.2).
C) consistsofcorporatestrategy,businesslevelstrategies,functionalstrategies,andoperatingstrategieswhenthe
companyhasdiversifiedandoperatesagroupofbusinesses.
D) consistsofitsdiversificationstrategy,lineofbusinessstrategies,andoperatingstrategies.
E) BothAandCarecorrect.
Feedback:

17
INCORRECT

Businessstrategy,asdistinctfromcorporatestrategy,ischieflyconcernedwith
A) establishingbusinesspositionsindifferentindustries.
B) forgingaseriesofactionsandapproachesthatholdpromiseforproducingsuccessfulperformanceinonespecific
lineofbusiness.
C) boostingthecombinedperformanceofthesetofbusinessesacompanymayhavediversifiedinto.
D) strivingtocapturecrossbusinesssynergiesandturnthemintocompetitiveadvantage.
E) adaptingacompany'sbusinessmodeltochangingmarketconditions.
Feedback:

18
INCORRECT

Functionalstrategies
A) describethemissionandstrategicintentofeachkeyfunctionalpieceofthebusiness.
B) concernwhattodoaboutresolvingthespecificstrategicissuesandoperatingproblemsabusinessconfrontsineach
keypartofitsbusinessR&D,production,salesandmarketing,finance,informationtechnology,humanresources,
andsoon.
C) arenormallycraftedbytheexecutiveinchargeoftheoverallbusinessandapprovedbythecompany'sboardof
directors.
D) addrelevantdetailtotheoverallbusinessstrategybysettingforththeactions,approaches,andpracticestobe
employedinmanagingaparticularfunctionalactivityorbusinessprocessorkeydepartmentwithinabusiness.
E) areconcernedwithwhatcompetitivecapabilitiestobuildinsupportoftheoverallcompanystrategyandwhattodo
tounifythefirm'sskills,competencies,andresourcestrengthsacrossallthevariouskeypiecesofacompany's
business.
Feedback:

19
INCORRECT

Operatingstrategiesconcern
A) whatacompany'svariousoperatingdepartmentsplantodotohelpexecutethecompany'soverallstrategy.
B) thestrategicintentofeachoperatingunit.
C) thegameplansformanagingkeyoperatingunitswithinabusiness(plants,salesdistricts,distributioncenters)and
forperformingstrategicallysignificantoperatingtasks(maintenance,shipping,inventorycontrol,purchasing,
advertising)soastosupportfunctionalstrategiesandtheoverallbusinessstrategy.
D) thespecificactionsacompany'svariousoperatingdepartmentsplantotaketounifyeffortstoachieveasustainable
competitive.
E) Allofthese.
Feedback:

20
INCORRECT

Acompany'sstrategicplanconsistsof
A) itsobjectivesanditsstrategyforachievingthem.
B) management'svisionofwherethecompanyisheaded,theestablishedfinancialandstrategicobjectives,and
management'sstrategytoachievetheobjectivesandmovethecompanyalongthechosenstrategicpath.
C) acompany'sstrategicvision,strategicobjectives,strategicintent,andstrategy.
D) anorganization'sstrategyandmanagement'sspecific,detailedplansforimplementingit.
E) thespecificactionsmanagementintendstotakeindetouringstrategicinflectionpointsandachievingasustainable
competitiveadvantage.
Feedback:

21
INCORRECT

Theroleofacompany'sboardofdirectorsinthestrategymaking,strategyexecutingprocessisto
A) directseniorexecutivesastowhatthecompany'slongtermdirection,objectives,businessmodel,andstrategy
shouldbeand,further,closelysuperviseseniorexecutivesintheireffortstoimplementandexecutethestrategy.
B) exercisestrongoversightoverthecompany'sstrategicdirectionandthemajorelementsofitsstrategy.
C) evaluatethecaliberofseniorexecutives'strategymakingandstrategyimplementingskills.

D) workcloselywiththeCEO,seniorexecutives,andthestrategicplanningstafftodevelopastrategicplanforthe
companyrubberstamptheproposalsandrecommendationsoftheCEOastohowtoexecutethebusinessmodel
andachievethestrategicintentandensuringthatthestrategymaking/strategyexecutingprocessiscarriedoutin
amannerthatbenefitsshareholders.
E) BothBandC.
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