MGMT 490 CH 2 – QUESTIONS AND VERIFIED
ANSWERS
Financial objectives are important for doing which of the following? (Choose every
correct answer.) - Answers - -Increasing profit margins
-Increasing revenue
-Achieving shareholder satisfaction
To measure how well a company is moving in the intended direction, it is important to
______. - Answers - set objectives
During the final stage of developing and implementing a company strategy, what factors
often cause the company to adjust its objectives or mission statement? (Choose every
correct answer.) - Answers - -new opportunities
-changing conditions
-new ideas
While developing a strategic vision, a company's managers might change which of the
following? (Check all that apply.) - Answers - -the type of customers the company will
serve
-the products the company will offer
-the markets in which the company will compete
A sense of "where we are going" is called the company's ______. - Answers - strategic
vision
A well-crafted vision statement should ______. - Answers - explain where top
executives plan to take the company in the future.
What are the best tactics for convincing lower-level managers and employees to
support the company's strategic vision? (Choose every correct answer.) - Answers - -
explaining why the company is taking a particular direction
-sharing updates and progress reports
Members of an organization are most likely to support a new strategic vision if the
document does which of the following? (Choose every correct answer.) - Answers - -
explains where the organization is going and why.
-is explained by top executives to as many people as possible.
, -is distributed throughout the organization.
What is a company slogan? - Answers - a brief phrase that summarizes the company's
vision
Which statements are true about assessing the effectiveness of a strategic plan?
(Choose every correct answer.) - Answers - -Managers should make adjustments in
areas that aren't working well and continue strategies that are succeeding.
-Managers should evaluate how the strategy is working throughout the company.
-Managers should search diligently for ways the strategy can be improved.
Which document spells out the direction a company will take as it anticipates future
developments? - Answers - the strategic vision
What is described by a company's mission statement? (Choose every correct answer.) -
Answers - -The company's present purpose
-The company's present business
Why should the mission statement NOT focus on the company's goal of making a
profit? (Choose every correct answer.) - Answers - -All commercial businesses aim to
make a profit.
-The mission statement should define "who we are and what we do."
-Making a profit is best seen as a result of the company's actual mission.
Why do companies designate a set of core values? (Choose every correct answer.) -
Answers - -to guide the behavior of personnel
-to encourage certain beliefs, traits, and behavioral norms
-to guide the company as it pursues its vision and mission
Which statements are true about companies where core values are taken seriously?
(Choose every correct answer.) - Answers - -executives attempt to make the values an
integral part of the corporate culture.
-executives demonstrate the values in their own behavior.
To produce a value statement for a new company, what will management typically do?
(Choose every correct answer.) - Answers - - consider feedback from employees.
ANSWERS
Financial objectives are important for doing which of the following? (Choose every
correct answer.) - Answers - -Increasing profit margins
-Increasing revenue
-Achieving shareholder satisfaction
To measure how well a company is moving in the intended direction, it is important to
______. - Answers - set objectives
During the final stage of developing and implementing a company strategy, what factors
often cause the company to adjust its objectives or mission statement? (Choose every
correct answer.) - Answers - -new opportunities
-changing conditions
-new ideas
While developing a strategic vision, a company's managers might change which of the
following? (Check all that apply.) - Answers - -the type of customers the company will
serve
-the products the company will offer
-the markets in which the company will compete
A sense of "where we are going" is called the company's ______. - Answers - strategic
vision
A well-crafted vision statement should ______. - Answers - explain where top
executives plan to take the company in the future.
What are the best tactics for convincing lower-level managers and employees to
support the company's strategic vision? (Choose every correct answer.) - Answers - -
explaining why the company is taking a particular direction
-sharing updates and progress reports
Members of an organization are most likely to support a new strategic vision if the
document does which of the following? (Choose every correct answer.) - Answers - -
explains where the organization is going and why.
-is explained by top executives to as many people as possible.
, -is distributed throughout the organization.
What is a company slogan? - Answers - a brief phrase that summarizes the company's
vision
Which statements are true about assessing the effectiveness of a strategic plan?
(Choose every correct answer.) - Answers - -Managers should make adjustments in
areas that aren't working well and continue strategies that are succeeding.
-Managers should evaluate how the strategy is working throughout the company.
-Managers should search diligently for ways the strategy can be improved.
Which document spells out the direction a company will take as it anticipates future
developments? - Answers - the strategic vision
What is described by a company's mission statement? (Choose every correct answer.) -
Answers - -The company's present purpose
-The company's present business
Why should the mission statement NOT focus on the company's goal of making a
profit? (Choose every correct answer.) - Answers - -All commercial businesses aim to
make a profit.
-The mission statement should define "who we are and what we do."
-Making a profit is best seen as a result of the company's actual mission.
Why do companies designate a set of core values? (Choose every correct answer.) -
Answers - -to guide the behavior of personnel
-to encourage certain beliefs, traits, and behavioral norms
-to guide the company as it pursues its vision and mission
Which statements are true about companies where core values are taken seriously?
(Choose every correct answer.) - Answers - -executives attempt to make the values an
integral part of the corporate culture.
-executives demonstrate the values in their own behavior.
To produce a value statement for a new company, what will management typically do?
(Choose every correct answer.) - Answers - - consider feedback from employees.
