Q&A Hero

Q: Explain how managers can decide to capture the vision of where an organization should head in a catchy or easily remembered slogan. Cite at least three examples of company slogans that capture a company's vision.

Q: Which is more important to a company's future financial performance, the achievement of strategic objectives or the achievement of financial objectives? Why?

Q: Is there a difference between a strategic vision and a mission statement? Please explain.

Q: What is the meaning of the term "balanced scorecard"? What are the merits of using a balanced scorecard in judging a company's performance?

Q: Explain and provide an example of unsuccessful and successful uses of extreme stretch goals.

Q: The achievement of financial objectives tends to be a leading indicator of a company's performance, while the achievement of strategic objectives tends to be a lagging indicator of a company's future financial performance. True or false? Support and explain your answer.

Q: Explain why an organization needs a strategic vision. What purpose does a strategic vision serve?

Q: A VP of Global Products at Tiffany's is in the process of developing financial and strategic objectives. Tiffany's is a luxury jewelry and accessories company. The VP realizes she needs to add short-term and longer-term performance targets. Is it important for her to spell out both short-term and long-term performance targets? Which time frame is more important? Are there tradeoffs involved? Explain.

Q: A well-conceived strategic vision helps prepare a company for the future. True or false? Explain and justify your answer.

Q: What is the difference between strategic vision and strategic intent? Provide at least one example of each term to support your answer.

Q: Identify the five integrated stages of the strategy-making, strategy-executing process, and which tasks each stage entails.

Q: Strategic objectives for lululemon inc. do not include A) exploring new concepts such as stores that are tailored to each community. B) continuing to expand the brand globally through international expansion. C) increasing total comparable sales, which includes comparable store sales and direct to consumer. D) building a robust digital ecosystem with key investments in customer relationship management, analytics, and capabilities to elevate guest experience across all touch points. E) improving employee job satisfaction.

Q: Corporate governance failures at Volkswagen included all of the following except A) a unique ownership structure where a single family, Porsche, controlled more than 50 percent of voting shares. B) a strong independent board of directors that was responsible for making independent judgments about the validity and wisdom of management's proposed strategic actions. C) inadequate monitoring of the CEO and other senior executives. D) elevating management to the supervisory board even though they had presided over past scandals. E) unwillingness of the board of directors to accept any responsibility for the allowing use of "defeat devices" on at least 11 million vehicles with diesel engines.

Q: Every corporation should have a strong independent board of directors that does all of the following except A) remain well-informed about the company's performance and exercises its fiduciary duty to protect shareholders responsibly. B) guide management in choosing a strategic direction and makes independent judgments about the validity and wisdom of management's proposed strategic actions. C) evaluate the leadership skills of the CEO and other senior executives. D) retain sufficient courage to curb management actions deemed inappropriate or unduly risky. E) take responsibility for leading the strategy-making, strategy-executing process.

Q: Among the principal managerial tasks associated with managing the strategy execution process, strategic managers would be most unlikely to A) ensure that policies and procedures facilitate rather than impede effective execution B) create a company culture and work climate conducive to successful strategy implementation and execution C) survey employees for their opinions about how to implement strategies for cost reductions and improvements in employee morale and job satisfaction D) exert the internal leadership needed to drive implementation forward and keep improving on how the strategy is being executed E) motivate people and link rewards and incentives directly to the achievement of performance objectives and good strategy execution

Q: The chief duties/responsibilities of a company's board of directors, with respect to strategy-making and strategy execution, are not concerned with A) hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations. B) being inquiring critics and exercising strong oversight over the company's direction, strategy, and business approaches. C) evaluating the caliber of senior executives' strategy-making/strategy-executing skills. D) instituting a compensation plan for top executives that rewards them for actions and results that serve stakeholders' interests, most especially those of shareholders. E) overseeing the company's financial accounting and financial reporting practices.

Q: A company's strategic plan A) details key objectives and the strategy for achieving them. B) lays out its future direction and business purpose, performance targets, and strategy. C) identifies the company's strategy and management's specific, detailed plans for implementation. D) consists of a company's strategic vision, strategic objectives, strategic intent, and strategy. E) summarizes the company's strategic vision, a strategy, and a business model.

Q: The key duties of a company's board of directors in the strategy-making, strategy-executing process include A) coming up with compelling strategy proposals of their own to debate against those put forward by top management. B) overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills. C) taking the lead in developing the company's business model and strategic vision. D) taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives. E) approving the company's operating strategies, functional-area strategies, business strategy, and overall corporate strategy.

Q: In a single-business company, the strategy-making hierarchy consists of A) business strategy, divisional strategies, and departmental strategies. B) business strategy, functional strategies, and operating strategies. C) business strategy and operating strategy. D) managerial strategy, business strategy, and divisional strategies. E) corporate strategy, divisional strategies, and departmental strategies.

Q: Equifax, a credit-reporting agency, disclosed that it had suffered a massive data breach affecting as many as 143 million people. Hackers had gained unauthorized access to sensitive personal dataSocial Security numbers, birth dates, and home addressesfor nearly half of the United States. The company also faced multiple federal investigations including hearings at the U.S. Congress over its handling of the hack and reports that its executives had sold an unusual amount of stock before the breach was publicly disclosed. Effective corporate governance requires Equifax's board of directors to A) play the lead role in forming the company's strategy and then directly supervise the efforts and actions of senior executives in implementing and executing the strategy. B) provide guidance and counsel to the CEO in carrying out his/her duties as chief strategist and chief strategy implementer. C) strengthen its oversight of the company's strategic direction, evaluate the caliber of senior executives' skills, handle executive compensation, and oversee financial reporting practices. D) work closely with the CEO, senior executives, and the strategic planning staff to develop a strategic plan for the company and then oversee how well the CEO and senior executives carry out the board's directives in implementing and executing the strategic plan. E) review and approve the company's business model and also review and approve the proposals and recommendations of the CEO as to how to execute the business model.

Q: Operating strategies are primarily concerned with A) what the firm's operating departments are doing and plan to do to unify the company's functional and business strategies. B) the specific plans for building competitive advantage in each major department and operating unit. C) how to manage initiatives of strategic significance within each functional area, and adding detail and completeness in ways that support functional strategies and the overall business strategy. D) how best to carry out the company's corporate strategy. E) how best to implement and execute the company's different business-level strategies.

Q: The task of top executives when the company faces disruptive changes in its environment is to not only raise questions about the appropriateness of its direction and strategy, but also to A) know when to continue with the present corporate culture and when to shift to a different and better corporate culture. B) figure out the causes and decide when adjustments are needed and what adjustments are needed for improved performance and operating excellence. C) figure out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments. D) decide whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly. E) decide how to identify the problems that need fixing.

Q: The primary role of a functional strategy is to A) unify the company's various operating-level strategies. B) specify how to build and strengthen the skills, expertise, and competencies needed to execute operating-level strategies successfully. C) support and add power to the corporate-level strategy. D) create compatible degrees of strategic intent among a company's different business functions. E) determine how to support particular activities in ways that support the overall business strategy and competitive approach.

Q: The leadership challenges that top executives face in making corrective adjustments when things are not going well include A) knowing when to replace poorly performing subordinates and when to do a better job of coaching them to do the right things. B) being able to discern whether to promote better achievement of strategic performance targets or whether to promote better achievement of financial performance targets. C) deciding when adjustments are needed and what adjustments to make. D) having the analytic skills to separate the problems due to a bad strategy from the problems due to bad strategy execution. E) deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives.

Q: Functional-area strategies A) concern the actions, approaches, and practices to be employed in managing particular functions within a business. B) specify what actions a company should take to resolve specific strategic issues and problems. C) are normally crafted by operating-level managers. D) are concerned with how to unify the firm's several different operating strategies into a cohesive whole. E) are normally crafted by the company's CEO and other senior executives.

Q: Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to A) determine whether the company has a balanced scorecard for judging its performance. B) stay on track in achieving the company's mission and strategic vision. C) keep the company's board of directors well-informed about the company's future outlook. D) determine whether the company's business model is well-matched to changing market and competitive circumstances. E) decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.

Q: Business strategy, as distinct from corporate strategy, is chiefly concerned with A) deciding what new businesses to enter, which existing businesses to get out of, and which existing business to remain in. B) deciding how to build competitive advantage and improve performance in a particular line of business. C) making sure the strategic intent of a particular business is in step with the company's overall strategic intent and strategy. D) coordinating the competitive approaches of a company's different business units. E) what business model to employ in each of the company's different businesses.

Q: Business strategy concerns A) strengthening the market position and building competitive advantage for a single line of business. B) ensuring consistency in strategic approach among the businesses of a diversified company. C) selecting a model for a single line of business to use in pursuing objectives that contribute to the whole of a diversified company. D) selecting a set of stretch financial and strategic objectives for a single business unit. E) choosing the most appropriate strategic intent for a specific line of business.

Q: Managing the strategy-execution process involves A) describing the strategic course that will help the company prepare for the future. B) organizing the company along the lines of best practice. C) surveying employees on how they think costs can be reduced and how employee morale and job satisfaction can be improved. D) exerting the external leadership needed to drive stabilization. E) tying rewards and incentives directly to profit.

Q: Corporate strategy for a diversified or multibusiness enterprise A) is orchestrated by mid-level managers and focuses on how to create a competitive advantage in each specific line of business the total enterprise is in. B) concerns how best to allocate resources across the departments of each line of business the company is in. C) is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries. D) deals chiefly with what the strategic intent of each of its business units should be. E) involves how functional strategies should be aligned with business strategies in each of the various lines of business the company is in.

Q: In a diversified company, the strategy-making hierarchy consists of A) corporate strategy and a group of business strategies (one for each line of business the corporation has diversified into). B) corporate or managerial strategy, a set of business strategies, and divisional strategies within each business. C) business strategies, functional strategies, and operating strategies. D) corporate strategy, business strategies, functional strategies, and operating strategies. E) its diversification strategy, its line of business strategies, and its operating strategies.

Q: A company's overall strategy A) determines whether its strategic intent is proactive or reactive. B) is subject to being changed much less frequently than either its objectives or its mission statement and thus serves as the base of its strategy-making pyramid. C) should be based on a flexible strategic vision and strategic intent. D) is customarily reviewed and approved level-by-level by the company board of directors. E) is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.

Q: Crafting a company's strategy is best described as A) the exclusive province of top managementowner-entrepreneurs, CEOs, and other very senior executives. B) delegation of considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants in companies that are diversified geographically or by product/market. C) involving the board of directors in the lead role in crafting a company's strategy. D) being assumed by an elite group of corporate entrepreneurs. E) always the product of brilliant corporate entrepreneurs.

Q: Managerial jobs with strategy-making responsibility A) extend throughout the managerial ranks and exist in every part of a companybusiness units, operating divisions, functional departments, manufacturing plants, and sales districts. B) are primarily located in the strategic planning departments of large corporations. C) are relatively rare because most strategy making is done by the members of a company's board of directors. D) seldom exist within a functional department (e.g., marketing and sales) or in an operating unit (a plant or a district office) because these levels of the organization structure are well below the level where strategic decisions are typically made. E) are found only at the vice-president level and above in most companies.

Q: When trade-offs have to be made between achieving long-term and achieving short-term objectives A) long-term objectives should take precedence unless the short-term performance targets have unique importance. B) long-term objectives should take precedence because of the need for future survival. C) short-term objectives should take precedence because they focus attention on delivering performance improvement. D) short-term objectives should take precedence unless the long-term performance targets are not achievable. E) long-term objectives should never take precedence until the short-term objective is achieved.

Q: The task of crafting a company's strategy would not normally be described as which of the following? A) In most companies, crafting strategy is a team effort, involving managers and often key employees at many organization levels. B) Ultimate responsibility for leading the strategy-making task rests with the chief executive officer. C) The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors. D) It is the responsibility and duty of a company's board of directors to ensure that new strategy proposals can be defended as superior to alternatives and, ultimately, to approve or disapprove of the strategy formulated and proposed by the company's management. E) In most of today's companies, every company manager has a strategy-making role, ranging from major to minor, for his or her area of responsibility.

Q: Company objectives A) are needed only in those areas directly related to a company's short-term and long-term financial strength. B) need to be broken down into performance targets for separate businesses, product lines, functional departments, and individual work units. C) play the important role of establishing the direction toward which an organization needs to be headed. D) are important because they help guide managers in deciding what the company's strategic intent should be. E) should support, but not conflict with, the performance targets of lower-level organizational units.

Q: Strategy-making is A) primarily the responsibility of key executives rather than a task for a company's entire management team. B) more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives. C) first and foremost the function and responsibility of a company's strategic planning staff. D) first and foremost the function and responsibility of a company's board of directors. E) first and foremost the function of a company's chief executive officer, who formulates strategic initiatives and submits them to the board of directors for approval.

Q: A company needs performance targets or objectives A) to help guide managers in deciding what strategic path to take in the event that a strategic inflection point is encountered. B) because they give the company clear-cut strategic intent. C) in order to unify the company's strategic vision and business model. D) for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units. E) in order to prevent lower-level organizational units from establishing their own objectives.

Q: Strategic objectives normally would not include? A) Introducing five new products over the next 10 years. B) Reducing product development time by one third to half the current rate of 24 months. C) Improving teamwork across business units by doubling the number of intracompany projects. D) Boosting internal cash flows by 7 percent to fund new research and development activities. E) Improving security and stability of information technology capabilities to prevent breaches and outages.

Q: A company that pursues and achieves strategic objectives A) is likely to weaken the achievement of its short-term and long-term financial objectives. B) believes that the company's financial performance is not as important as it really is. C) is generally not strongly focused on its true mission of making a profit. D) is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives. E) is likely to be a weak financial performer because diverting resources to the pursuit of strategic objectives takes away from the achievement of financial performance targets.

Q: Financial objectives generally are not concerned with A) receiving a bond rating of AA or higher. B) achieving a return on equity greater than 10 percent. C) increasing revenues at a pace greater than the rate of inflation. D) raising earnings per share by 2 percent. E) achieving a market share of 9 percent.

Q: Perhaps the most reliable way for a company to improve its financial performance over time is to A) put 100 percent emphasis on the achievement of its short-term and long-term financial objectives. B) recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance. C) substitute financial intent for strategic intent and judiciously concentrate on the mission of making a profit. D) not allocate any resources to the achievement of strategic objectives until it is very clear that the company can meet or beat its stretch financial performance targets. E) avoid use of the balanced-scorecard philosophy since achievement of financial performance targets is obviously more important than the achievement of strategic performance targets.

Q: Why should long-run objectives take precedence over short-run objectives? A) The focus is placed on improving performance in the long term. B) Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results. C) Long-run objectives will satisfy shareholder expectations for progress. D) Long-run objectives will force the company to deliver performance improvement in the current period. E) Long-run objectives will keep the company in line with its balanced scorecard.

Q: A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because A) it assists managers in putting roughly equal emphasis on short-term and long-term performance targets. B) it entails putting equal emphasis on good strategy execution and good business model execution. C) a balanced-scorecard approach pushes managers to avoid strategic management that reflects the results of past decisions and organizational activities. D) financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company's future financial performance and business prospects. E) it forces managers to put equal emphasis on financial and strategic objectives.

Q: The faster a company's business environment is changing, the more critical it becomes for its managers to A) pay attention to early warnings of future change and be willing to experiment to establish a market position in the future. B) determine whether the company has a balanced scorecard for judging its performance. C) establish controls to monitor the impact of external changes appropriately and ensure the internal environment is maintained. D) replicate and implement only those strategies that have worked for rivals. E) determine what changes should be made to its customer value proposition.

Q: A "balanced scorecard" for measuring company performance A) entails putting equal emphasis on financial and strategic objectives. B) entails putting balanced emphasis on profit and nonprofit objectives. C) prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives. D) prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives. E) strikes a balance between financial and strategic objectives.

Q: For most modern, highly diversified, global corporations, the CEO's role in strategy-making normally does not involve A) being held accountable for the results the strategy produces, whether good or bad. B) acting as captain of the ship, carrying the mantles of chief direction setter, chief objective setter, chief strategy maker, and chief strategy implementer for the total enterprise. C) involving as many company personnel as possible in the strategy-making process. D) functioning as chief architect of the strategy, personally deciding what the key elements of the company's strategy will be. E) knowing enough about the situation in every organizational unit to direct every strategic move made in a company's worldwide organization.

Q: Strategic intent refers to a situation where a company A) commits to using a particular business model to make money. B) decides to adopt a particular strategy. C) relentlessly pursues an ambitious strategic objective. D) commits to pursuing balanced-scorecard objectives. E) changes its long-term direction and decides to pursue a newly adopted strategic vision.

Q: The task of stitching together a strategy A) entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives. B) is primarily an exercise in deciding which of several freshly emerging market opportunities to pursue. C) is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements. D) requires trying to copy the strategies of industry leaders as closely as possible. E) is mainly an exercise in good planning.

Q: Setting stretch objectives does not provide an organization with the advantage of A) helping to avoid mediocre results. B) pushing company personnel to be more inventive and innovative. C) helping clarify the company's strategic vision and strategic intent. D) helping a company be more focused and intentional in its actions. E) spurring exceptional performance and helping build a firewall against contentment with modest performance gains.

Q: Adopting a set of "stretch" financial and stretch strategic objectives A) pushes the company to strive for lesser but adequate profitability levels, because the stretch objectives are considered unattainable. B) is a widely held method for creating a "scorecard" for monitoring company performance. C) helps convert the mission statement into meaningful company values. D) challenges company personnel to execute the strategy with greater enthusiasm, proficiency, and understanding. E) is an effective tool for pushing the company to perform at its full potential and deliver the best possible results.

Q: Strategic objectives A) are more essential in achieving a company's strategic vision than are financial objectives. B) relate to strengthening a company's overall market standing and competitive position. C) are more difficult to achieve and harder to measure than financial objectives. D) are generally less important than financial objectives. E) help managers track an organization's true progress better than financial objectives.

Q: A superior example of a well-stated strategic objective is to A) increase revenues by more than the industry average. B) be among the top five companies in the industry in customer service. C) overtake key competitors on product performance or quality within three years. D) improve manufacturing performance by 5 percent within 12 months. E) obtain 150 new customers during the current fiscal year.

Q: The best example of a well-stated, specific financial objective is to A) increase earnings per share by 15 percent annually. B) gradually boost market share from 10 percent to 15 percent over the next several years. C) achieve lower costs than any other industry competitor. D) boost revenues by a percentage margin greater than the industry average. E) maximize total company profits and return on investment.

Q: A company needs financial objectives to A) spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment. B) communicate management's targets for financial performance and achieve strategic objectives. C) indicate to employees whether the emphasis should be on earnings per share, return on investment, return on assets, or positive cash flow. D) convince shareholders that top management is acting in their interests. E) counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance.

Q: Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing A) stretch objectives that challenge the organization to deliver stretch gains in performance. B) mainstay objectives that although are easily attainable, and the company is obligated to meet, they are designed to spur motivation in the workforce. C) financial objectives that drive standardization of cost-efficiency and unify stringent operating specifications. D) a specifically detailed and integrated model of operating policies, practices, and procedures. E) why the company does certain things in trying to please its customers.

Q: A company's values or core values concern A) whether and to what extent it intends to operate in an ethical and socially responsible manner. B) how aggressively it will seek to maximize profits and enforce high ethical standards. C) the beliefs and operating principles built into the company's balanced scorecard for measuring performance. D) the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. E) the beliefs, principles, and ethical standards that are incorporated into the company's strategic intent and business model.

Q: A company exhibits strategic intent when A) management crafts and adopts a strategic plan. B) it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. C) it aggressively pursues financial objectives, establishing a priority on meeting the performance metrics and instilling a sense of urgency throughout the company. D) management establishes a comprehensive set of financial objectives that meet stockholder expectations. E) it capitalizes on its primary competitive advantage and ensures resources are allocated to maintain its strategy.

Q: A company should not couch its mission statement in terms of making a profit because a profit is more correctly an A) obligation and a reason for what a company does. B) objective and a result of what a company does. C) outlay and a rationale for what a company does. D) obligation and a responsibility for what a company does. E) outflow and a right of what a company does.

Q: What does a company specifically exhibit when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective? A) competitive edge B) sustainable advantage C) strategic intent D) financial strength E) strategic vision

Q: A company's mission statement does not A) identify the company's services and products. B) specify the buyer's needs that the company seeks to satisfy. C) identify the customer or market that the company intends to serve. D) give the company its own identity. E) explain "where we are headed."

Q: A company needs financial objectives A) to overtake key competitors on such important measures as net profit margins and return on investment. B) because without adequate profitability and financial strength, the company's ultimate survival is jeopardized. C) to convince shareholders that top management is acting in their interests. D) to translate the company's business model into action items. E) to indicate to employees that financial objectives always take precedence over strategic objectives.

Q: The primary difference between a company's mission statement and the company's strategic vision is that A) mission statement explains why it is essential to make a profit, whereas the strategic vision explains how the company will be a moneymaker. B) mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why." C) mission statement deals with how to please customers, whereas a strategic vision deals with how to please shareholders. D) mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?" E) mission statement addresses "how we are trying to make a profit today," while a strategic vision concerns "how will we make money in the markets of tomorrow?"

Q: The difference between the concept of a company mission statement and the concept of a strategic vision is that a A) mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets. B) mission statement focuses on the methods needed to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit. C) mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers. D) mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future. E) mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"

Q: Well-stated objectives are A) quantifiable or measurable, and contain deadlines for achievement. B) succinct and concise so as to identify the company's risk and return options. C) broad and take into account views of all the stakeholders. D) directly related to the dividend payout ratio for stockholder returns. E) representative of customers' aspirations for company performance.

Q: A superior example of a company vision that is short, specific, memorable, clearly articulated, and forward-looking is A) Hilton Hotel's vision "to fill the earth with light and the warmth of hospitality." B) Whole Foods' vision "to be a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market." C) Keurig's vision "to become the world's leading personal beverage systems company." D) Nike's vision "to create products, services and experiences for today's athlete while solving problems for the next generation." E) Google's vision "to organize the world's information and make it universally accessible and useful."

Q: A company's mission statement typically addresses which question? A) Who we are and what do we do? B) What objectives and level of performance do we want to achieve? C) Where are we going and what should our strategy be? D) What approach should we take to achieve sustainable competitive advantage? E) What business model should we employ to achieve our objectives and our vision?

Q: A well-conceived and communicated strategic vision ordinarily does not result in A) solidifying senior executives' view of the firm's long-term direction. B) minimizing the risk of rudderless decision making. C) galvanizing organizational members in support of internal changes that will help make the vision a reality. D) assisting the organization in preparing for the future. E) protests from stakeholders that the business is rudderless.

Q: A company's values relate to such things as A) how it will balance its pursuit of financial objectives against the pursuit of its strategic objectives. B) how it will balance the pursuit of its business purpose/mission against the pursuit of its strategic vision. C) fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship. D) whether it will emphasize stock price appreciation or higher dividend payments to shareholders. E) whether it will put more emphasis on the achievement of short-term performance targets or long-range performance targets.

Q: The payoffs of having a strategic vision that describes management's aspirations for the company's future and the course and direction charted to achieve those aspirations are not typically connected with A) reducing the risks of rudderless decision making. B) helping the organization prepare for the future. C) avoiding strategic inflection points and management's reaction in aligning decision choices. D) helping to crystallize top management's own view about the firm's long-term direction. E) providing a tool for winning the support of organizational members for internal changes that will help make the vision a reality.

Q: The benefit of a vivid, engaging, and convincing strategic vision is NOT its ability to A) crystallize top management's own view about the company's long-term direction. B) reduce the risk of rudderless decision making by managers at all levels of the organization. C) help an organization prepare for the future. D) unite company personnel behind managerial efforts to get the company moving in the intended direction. E) help company personnel understand the logic of the company's business model.

Q: Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is A) helping gain managerial consensus on what resources must be developed to successfully achieve strategic objectives. B) uniting company personnel behind managerial efforts to get the company moving in the intended direction. C) helping justify the company's mission of making a profit. D) helping company personnel understand the logic of the company's business model. E) keeping company personnel well-informed.

Q: Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of A) explaining "where we are going and why" and, more importantly, 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 and having a business plan are so important. C) making it easier for top executives to set and communicate the company's stretch objectives. D) helping lower-level managers and employees better understand the company's business model. E) aiding lower-level managers and employees in formulating and achieving a balanced scorecard.

Q: The managerial task of effectively conveying the essence of the strategic vision is made easier by A) having operating strategies that are easy for company personnel to understand and execute. B) combining the strategic vision and the company's values statement into a single document. C) adopting a catchy slogan and then using it repeatedly to illuminate the direction and purpose of "where we are headed and why." D) waiting until the company realizes its mission and ensures the existing corporate culture is compatible with the new vision and direction. E) distributing written statements that explain "where we are going and why."

Q: An engaging and convincing strategic vision A) ought to put "who we are and what we are doing" in writing rather than orally so as to leave no room for company personnel to misinterpret what the strategic vision really is. B) should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction. C) tends to be more effective when top management avoids trying to capture the essence of the strategic vision in a catchy slogan. D) is most efficiently and effectively done by posting the strategic vision prominently on the company's website and encouraging employees to read it. E) should be explained after the company's strategic intent, strategy, and business model have been conveyed to company personnel.

Q: One of the important benefits of a well-conceived and well-stated strategic vision is to A) clearly delineate how the company's business model will be implemented and executed. B) clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction. C) set forth the firm budgetary objectives in clear and fairly precise terms. D) help create a balanced scorecard approach to objective setting and not stretch the company's resources too thin across different products, technologies, and geographic markets. E) indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the industry leader.

Q: Breaking down resistance to a new strategic vision typically requires that management, on an as needed basis, A) institute a balance scorecard to measuring company performance, with the balance including a mixture of both old and new performance measures. B) inform company personnel about forthcoming changes in the company's strategy. C) reiterate the company's need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold. D) explain all updates and merits of the company's business model to align strategy with employee concerns. E) raise wages and salaries to win the support of company personnel for the company's new direction.

Q: What a company's top executives are saying about where the company is headed long-term with respect to its future product-market-customer-technology mix 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 emergent strategy will be. D) serves to define the company's business plan. E) indicates what kind of products and services the company plans to offer in the future.

Q: Common shortcomings of company vision statements include A) too specific and too flexible. B) unrealistic, unconventional, and unbusinesslike. C) too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives. D) too graphic, too narrow, and too risky. E) not customer-driven, out of step with emerging technological trends, and too ambitious.