Customers, employees, and investors are the stakeholders most often emphasized in the mission statements.
The strategy should flow directly from the mission, since the strategy is intended to achieve the mission and satisfy the organization's vision.
Strategy unifies the intent of the organization and focuses members toward actions designed to accomplish desired outcomes.
Good vision statements need to create some dissonance with the status quo of an organization.
Strategy is a pattern of resource allocation choices and organizational arrangements that result from managerial decision making.
The best strategies, corporate and business, are based on a thorough SWOT analysis.
Within the strategic plans that are decided, divisional and business unit managers do not have considerable freedom to adjust, adapt, and experiment.
Financial outcomes are often short-term in nature, so they omit other key factors that might be very important to the longer-term viability of the organization.
Goals and objectives provide a form of control since they create a feedback opportunity regarding how well or how poorly the organization is executing its strategy.
In MBO systems, goals and objectives are written down for each level of the organization.
Throughout the year, the supervisor must give performance evaluations to all employees to see if they meet their individual goals and objectives.
False. In decentralized companies, important decisions are made at lower levels.
In centralized companies, many important decisions are made at lower levels of the hierarchy.
Some employees are more comfortable in a centralized organization where their manager confidently gives instructions and makes decisions.
In a matrix structure, product managers have control and say over product related matters, while department managers have authority over matters related to company policy.
False, slow to change.
Functional structures are more effective in stable environments that are fast to change.
Perform better than those without them
Firms with clearly communicated, widely understood and collectively shared mission and vision have been shown: -To create and advance technology -Perform better than those without them -Employ a smarter workforce -Embrace diversity
Customers and employees
Those stakeholders most often emphasized in mission statements are: -Customers and employees -Investors and the government -Employers and society -Government and communities
The Starbucks mission statement describes guiding principles and the organization's: -Corporate Structure -Values -Corporate social responsibility statement -Employee and customer focus
According to the principles of visionary leadership, the essentials for successful revolution include all EXCEPT: -Behavioral Systems -Cultural Systems -Organizational Systems -Physical Systems
Write a mission and vision statement, they are both indirectly and directly related.
Controlling consists of the following steps EXCEPT: -Compare actual performance against standards -Write a mission and vision statement -Establish performance standards -Take corrective action
its power and influence in the organization
A stakeholder group composed of the CEO and members of the top management team is considered an important stakeholder group for all of the following reasons EXCEPT: -Its influence as either originator or steward of the organization's mission and vision -its power and influence in the organization -its ultimate role in strategy implementation -its responsibility for formulating a strategy that realizes the mission and vision
Organizational, capital market, product market, and social
The four categories of stakeholders of a firm are: -Organizational, capital market, product market, and social -Capital market, product market, employee market, and social market -Organizational capital market, employee market, and environmental market
Captures how vision and mission will be achieved
A firm's strategy includes which of the following: -Sets specific operating procedures to be followed by front line managers -establishes systems and processes used to implement the goals and objectives -captures how vision and mission will be achieved -Communicates to stakeholders the hierarchical corporate structure
Superiority in competitive advantage refers to all of the following factors EXCEPT: -Unique style -Product quality -Customer Service -Low cost
focus on development, innovation, design, and time to market
Firms that do the product leadership strategy well include which of the following factors: -Focus on development, innovation, design, and time to market -are in stagnant markets -have superb operations and execution -do not focus on innovation
Which of the following is considered an intangible resources? -Formal reporting structures -Production equipment -Scientific capabilities -Manufacturing plants
A firm's tangible resource includes which of the following? -Production equipment -knowledge -capacity for innovation -organizational routines
threats posed by new entrants
The intensity of industry competition and an industry's profit potential are a function of which of the following forces of competition? -Threats posed by new entrants -power of stockholders -global economic conditions* -power or employees
difficult to enter
Using Porter's analysis, firms are likely to generate higher profits if the industry includes which of the following: -Unlimited rivalry -There are many substitutes -Buyers are strong -Difficult to enter
Both programmatically and organizationally
Goals are outcome statements that define what an organization is trying to accomplish: -Programmatically -Internally -Organizationally -both programmatically and organizationally
be clear, concise, and understandable
Objectives typically include which of the following: -reflect in the strategic plan -be related directly to the values of the company -be clear, concise, and understandable -be stated in terms of the corporate mission
examples of measures used in objectives include which of the following: -stock price -new product development -financial goals -staff morale
align goals and objectives
Goals and objectives serve to accomplish all of the following EXCEPT: -Gauge and report performance -Align goals with objectives -Improve performance -align effort
that it seemed disconnected from a firm's strategy
One MBO criticism is: -tied achievement to compensation and promotion -did not place managers into a rigid enough performance system - that it seemed disconnected from a firm's strategy -linked employee goals to corporate goals
communicating and linking
A Balanced Scorecard relies on which of the following processes to bind short-term activities to long-term activities? -Performance metrics -Succession planning -communicating and linking -communicating the vision
Characteristics of appropriate goals and objectives include which of the following: -base objectives on expectations -simplify -confirm -cascade objectives into goals
Systematic and organized approach
Characteristics of MBO includes which of the following: -aims to improve employee morale -used by managers to track their best customers -systematic and organized approach -it improves communication by centralizes decision making
they are set by managers without the approval of employees
Goals and objectives are difficult to set because: -they are set by managers without the approval of employees -we lay out too many of them with the hope that at least we are covering all the bases* -objectives can proliferate in organizations because new ones are set, while old ones are not discarded -we might not know what they should cover*
All of the following statements regarding performance evaluations are true EXCEPT: -managers feel better about themselves in their supervisoral roles -giving performance issues ultimately decreases morale -performance reviews help managers feel more honest in their relationships with their subordinates -Subordinates are assured clear understanding of what goals and objectives are expected from them
there is potential for interpersonal conflict with team members as well as with leaders
Despite potential benefits, the disadvantages of a matrix structure include which of the following: -Role ambiguity or role conflict is very low* -there is potential for interpersonal conflict with team members as well as with leaders -managers will spend less effort coordinating their work, believing that someone else can pick-up the slack* -power struggles or turf wars among managers are lessened, taking away an important source of new ideas and innovation.