Chapter 2 Quiz + Answers Essay

1. When companies adopt the strategy-making and strategy slaying work out it requires they start by create a strategical vision, mission and values2. The strategic management process is shaped byexternal factors such(prenominal) as the industrys economic and competitive conditions and internal factors such as the confederacys collection of resources and capabilities3. When a company is confronted with significant industry throw that mandates stand revision of its strategic course, the company is said to have encountereda strategic inflection point4. A companys strategic course of study consists ofa vision of where it is headed, a set of implementation tar outwits, and a strategy to achieve them5. Top managements views about where the company is headed and what its upcoming yield-customer-market-technology will beconstitutes the strategic vision for the company6. Well-conceived visions are characteristicspecific to a particular organizationfree of generic, feel-good stateme ntsnot harmless one-sentence statementsAll of these7. Effectively communicating the strategic vision down the demarcation to lower-level managers and employees has the value ofnot only explaining where we are going and why but, more(prenominal) 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 society citizenship10. The managerial purpose of setting objectives includesconverting the strategic vision into specific proceeding targetsusing the objectives as yardsticks for tracking the companys progress and actionchallenging the organization to perform at its full potential and fork out the best poss ible resultsestablishing deadlines for achieving effect results11. A company needs pecuniary objectivesbecause without adequate profitability and pecuniary strength, the companys ultimate survival is jeopardized12. Strategic objectivesrelate to strengthening a companys boilers suit market standing and competitive vitality13. A balanced batting order for measuring company performanceentails striking a balance amidst financial objectives and strategic objectives14. A balanced scorecard that includes both strategic and financial performance targets is a conceptually strong approach for mind 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 operations as a whole and also for each of its separate businesses , product lines, functional departments, and individual work units16. Business strategy appertainsensuring 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 link 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 compel to monitor new external developments, evaluate the companys progress, and benefit corrective adjustments in order todecide whether to continue or change the companys strategic vision, objectives, strategy and/or strategy execution methods