Question 1

The strategy formulation,strategy execution process
A)is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives.
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 challenge 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.

Accepted Answer

The strategy formulation and execution process involves developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments as necessary. It is a comprehensive process, involving multiple steps and ongoing evaluation and adjustment. It is not delegated solely to the board of directors, and involves all levels of management.

Question 2

A company's strategic plan consists of
A)its balanced scorecard and its business model.
B)a vision of where it is headed,a set of performance targets,and a strategy to achieve them.
C)its strategy and management's specific,detailed plans for implementing it.
D)a company's plans for improving value-creating internal processes.
E)a strategic vision,a strategy,and a business model.

Accepted Answer

A company's strategic plan should include a clear vision of where it is headed, a set of performance targets that define success, and a strategy to achieve those targets. This encompasses the core components of a strategic plan. Balanced scorecards, business models, specific implementation plans, and plans for internal process improvement are all important components that may be included within a strategic plan, but they alone do not comprise a comprehensive strategic plan. Therefore, option B is the best choice.

Question 3

Management's strategic vision for an organization
A)charts a strategic course for the organization ("where we are going")and outlines the company's future product-customer-market-technology focus.
B)describes in fairly specific terms the organization's business model,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 moves that will be undertaken to achieve competitive advantage.

Accepted Answer

Management's strategic vision outlines the future direction and focus of the organization, including products, customers, markets, and technology. This charting of a strategic course is the core function of management's strategic vision.

Question 4

Which one of the following is not a characteristic of an effectively worded strategic vision statement?
A)Directional (is forward-looking,describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future)
B)Easy to communicate (is explainable in 10 to 15 minutes,can be reduced to a memorable slogan)
C)Graphic (paints a picture of the kind of company management is trying to create and the market position or positions the company is striving to stake out)
D)Consensus-driven (commits the company to a "mainstream" directional path that most stakeholders will enthusiastically support)
E)Focused (is specific enough to provide guidance to managers in making decisions and allocating resources)

Accepted Answer

A consensus-driven strategic vision statement may not necessarily be effective because it may not challenge the status quo or push the company to innovate or take risks. A well-worded strategic vision statement should be directional, easy to communicate, graphic, and focused, but it should not be limited by the desire for consensus among stakeholders.

Question 5

The strategic management process is shaped by
A)management's strategic vision,strategic and financial objectives,and strategy.
B)the decisions made by the compensation and audit committees of the board of directors.
C)external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.
D)a company's customer value proposition and profit formula.
E)actions to strengthen competitive capabilities and correct weaknesses,actions to strengthen market standing and competitiveness by acquiring or merging with other companies,and actions to enter new geographic or product markets.

Accepted Answer

The answer of The strategic management process is shaped by
A)management's...

Question 6

Top management's views about where the company is headed and what its future product-customer-market-technology will be
A)indicates what kind of business model the company is going to have in the future.
B)constitutes the strategic vision for the company.
C)signals what the firm's strategy will be.
D)serves to define the company's mission.
E)indicates what the company's long-term strategic plan is.

Accepted Answer

Top management's views about where the company is headed and what its future product-customer-market-technology will be constitutes the strategic vision for the company.

Question 7

Which of the following questions is not pertinent to company managers in thinking strategically about what directional path should be taken by the company and about developing a strategic vision?
A)What business approaches and operating practices should we consider in trying to implement and execute our business model?
B)Is the outlook for the company promising if it continues with its present product offerings?
C)What strategic course offers attractive opportunity for growth and profitability?
D)What,if any,new customer groups and/or geographic markets should the company get in position to serve?
E)Are changing market and competitive conditions acting to enhance or weaken the company's prospects?

Accepted Answer

Question A is more related to the implementation and execution phase of a strategy rather than the initial strategic direction and vision setting.

Question 8

Which one of the following is not an accurate attribute of an organization's strategic vision?
A)Providing a clearly articulated view of "where we are going"
B)Describing the company's future product-customer-market-technology focus
C)Pointing an organization in a particular direction and charting a strategic path for it to follow
D)Providing managers with a reference point for making strategic decisions
E)Specifying how the company intends to implement and execute its business model

Accepted Answer

Specifying how the company intends to implement and execute its business model is not an attribute of an organization's strategic vision. While the strategic vision may provide guidance on the company's future product-customer-market-technology focus, chart a path, and provide a reference point for strategic decisions, the specific details of executing the business model would be part of the company's strategy and operational plans.

Question 9

Which of the following is an integral part of the managerial process of crafting and executing strategy?
A)Developing a proven business model
B)Setting objectives and using them as yardsticks for measuring the company's performance and progress
C)Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
D)Communicating the company's mission and purpose to all employees
E)Deciding on the composition of the company's board of directors

Accepted Answer

Setting objectives and using them as yardsticks for measuring the company's performance and progress are integral parts of the managerial process of crafting and executing strategy. This helps to ensure that the company is moving in the right direction and making progress towards its goals. While the other choices are important considerations, they are not as directly related to the crafting and execution of strategy.

Question 10

Well-conceived visions are
A)vague and indefinite,to allow room for a company to change its direction.
B)generic to many organizations.
C)primarily consists of feel-good statements about the company's past history.
D)innocuous one-sentence statements.
E)a reference point for managers in making strategic decisions.

Accepted Answer

Well-conceived visions serve as reference points for managers in making strategic decisions. They provide a clear and inspiring picture of the company's future direction, helping managers to prioritize and align their actions towards achieving the vision. A well-conceived vision should be specific, measurable, and ambitious, but also flexible enough to adapt to changing circumstances. Visions that are vague or generic are less useful for guiding strategic decision-making. Statements about the company's past history may be included in the vision, but they should not be the primary focus.

Question 11

When a company is confronted with significant industry change that mandates radical revision of its strategic course,the company is said to have encountered a(n)
A)learning and growth perspective.
B)strategic inflection point.
C)strategic roadblock.
D)new strategic opportunity.
E)opportunity for corporate entrepreneurship.

Accepted Answer

A strategic inflection point occurs when a company is challenged by a significant change in its industry or market, requiring them to make major strategic changes to remain competitive. This often involves abandoning old strategies and adopting new ones to adapt to the changing landscape.

Question 12

Which of the following are characteristics of an effectively worded strategic vision statement?
A)Graphic,directional,and focused
B)Challenging,competitive,and set in concrete
C)Balanced,responsible,and rational
D)Realistic,customer-focused,and market-driven
E)Achievable,profitable,and ethical

Accepted Answer

An effectively worded strategic vision statement should be graphic, providing a clear mental picture of what the organization is trying to achieve. It should also be directional, guiding the organization toward a desired future state, and focused, clearly stating what the organization wants to accomplish.

Question 13

Which of the following is not a common shortcoming of company vision statements?
A)Vague or incomplete-short on specifics
B)Focused and narrow-exclusive to a specific direction
C)Bland or uninspiring
D)Not distinctive-could apply to almost any company (or at least several others in the same industry)
E)Too reliant on superlatives (best,most successful,recognized leader,global or worldwide leader,first choice of customers)

Accepted Answer

A focused and narrow vision statement is not necessarily a common shortcoming. In fact, a clear and specific direction can be beneficial. The other choices are common shortcomings of company vision statements.

Question 14

When companies adopt the strategy formulation,strategy execution process,the first step is to
A)monitor internal and external developments and initiate corrective adjustments to the business model when necessary.
B)adopt a proven business model,decide on the company's top management team,and craft a strategy.
C)execute the company's chosen strategy efficiently and effectively.
D)set objectives and develop a profitable business model to meet those objectives.
E)develop a strategic vision,mission,and values.

Accepted Answer

The first step in the strategy formulation and execution process is to develop a strategic vision, mission, and values for the company. This helps to set a clear direction for the organization and provides a framework for the development of strategic objectives and actions. Monitoring internal and external developments, adopting a proven business model, deciding on top management, and developing a profitable business model come later in the process.

Question 15

A company's strategic vision concerns
A)a company's directional path and future product-customer-market-technology focus.
B)why the company does certain things in trying to please its customers.
C)management's story line of how it intends to make a profit with the chosen strategy.
D)"who we are and what we do."
E)what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

Accepted Answer

A company's strategic vision is a statement that outlines the company's directional path and future focus in terms of products, customers, markets, and technology. It provides a clear sense of purpose and direction for the organization to achieve its long-term goals.

Question 16

Which one of the following is not one of the five stages of an ongoing,continuous strategic management process?
A)Developing a strategic vision of what the company's future direction and focus needs to be
B)Developing a sustainable business model
C)Crafting a strategy to advance the company along the path that management has charted and achieve its performance objectives
D)Setting objectives to measure progress toward achieving the strategic vision
E)Executing the chosen strategy efficiently and effectively

Accepted Answer

Developing a sustainable business model is not one of the five stages of an ongoing, continuous strategic management process. The five stages are developing a strategic vision, crafting a strategy, setting objectives, executing the chosen strategy and evaluating performance and making corrective adjustments.

Question 17

The strategic management process is shaped by
A)management's strategic vision,strategic and financial objectives,and strategy.
B)the decisions made by the compensation and audit committees of the board of directors.
C)external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.
D)a company's customer value proposition and profit formula.
E)actions to strengthen competitive capabilities and correct weaknesses,actions to strengthen market standing and competitiveness by acquiring or merging with other companies,and actions to enter new geographic or product markets.

Accepted Answer

The answer of The strategic management process is shaped by
A)management's...

Question 18

Which of the following are integral parts of the managerial process of crafting and executing strategy?
A)Deciding on the company's strategic intent,setting financial objectives,crafting a strategy,and choosing what business approaches and operating practices to employ
B)Developing a proven business model,deciding on the company's strategic intent,and crafting a strategy
C)Setting objectives,crafting a strategy,implementing and executing the chosen strategy,and deciding how much of the company's resources to employ in the pursuit of a sustainable competitive advantage
D)Coming up with a statement of the company's mission and purpose,setting objectives,choosing what business approaches to employ,selecting a business model,and monitoring developments
E)Developing a strategic vision,setting objectives,crafting a strategy,and initiating corrective adjustments

Accepted Answer

The integral parts of the managerial process of crafting and executing strategy include developing a strategic vision, setting objectives, crafting a strategy, and initiating corrective adjustments.

Question 19

Which of the following are common shortcomings of company vision statements?
A)Too broad,vague or incomplete,bland/uninspiring,not distinctive,and too reliant on superlatives
B)Unrealistic,unconventional,and unprofessional
C)Too specific,too inflexible,and cannot be achieved in five years
D)Too broad,too narrow,and too risky
E)Not customer-driven,out-of-step with emerging technological trends,and too ambitious

Accepted Answer

The common shortcomings of company vision statements are that they are often too broad, vague, incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives.

Question 20

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of
A)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.
B)helping company personnel understand why making a profit is so important.
C)making it easier for top executives to set strategic objectives.
D)helping lower-level managers and employees better understand the company's business model.
E)All of these choices are correct.

Accepted Answer

Effectively communicating the strategic vision down the line can inspire and energize employees to work towards the intended direction, thus making A the best choice. Options B, C, and D are not as relevant as option A in terms of value.

Quiz 2: Strategy Formulation,execution,and Governance

The strategy formulation,strategy execution process

A company's strategic plan consists of

Management's strategic vision for an organization

Which one of the following is not a characteristic of an effectively worded strategic vision statement?

The strategic management process is shaped by

Top management's views about where the company is headed and what its future product-customer-market-technology will be

Which of the following questions is not pertinent to company managers in thinking strategically about what directional path should be taken by the company and about developing a strategic vision?

Which one of the following is not an accurate attribute of an organization's strategic vision?

Which of the following is an integral part of the managerial process of crafting and executing strategy?

Well-conceived visions are

When a company is confronted with significant industry change that mandates radical revision of its strategic course,the company is said to have encountered a(n)

Which of the following are characteristics of an effectively worded strategic vision statement?

Which of the following is not a common shortcoming of company vision statements?

When companies adopt the strategy formulation,strategy execution process,the first step is to

A company's strategic vision concerns

Which one of the following is not one of the five stages of an ongoing,continuous strategic management process?

The strategic management process is shaped by

Which of the following are integral parts of the managerial process of crafting and executing strategy?

Which of the following are common shortcomings of company vision statements?

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of