Chapter 2
The Business Vision and Mission
FIRST MCQ QUESTIONS:-
Which statement is TRUE?
A) Companies must choose between having a mission statement or a vision statement.
B) A company can't have a mission statement unless it has a vision statement.
C) A vision statement cannot be established until a company has developed its mission
statement.
D) The vision statement should be established before the mission statement.
Answer: D
Which of these basic questions should a vision statement answer?
A) What is our business?
B) What is our core strength?
C) What are our challenges?
D) What do we want to become?
Answer: D
Which type of statement should be created first and foremost?
A) Creed
B) Vision
C) Objectives
D) Mission
Answer: B
The ideal length of a vision statement is
A) one page.
B) several paragraphs.
C) one sentence.
D) several sentences.
Answer: C
Which basic question should the vision statement answer?
A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
Answer: C
18) What is the first step in
the comprehensive strategic-
management model?
A) Developing vision and
mission statements
B) Performing external audits
C) Performing internal audits
D) Measuring and evaluating
performance
E) Establishing long-term
objectives
Answer: A
What is the first step in the comprehensive strategic-management model?
A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Measuring and evaluating performance
Answer: A
20) According to Drucker,
which question is
synonymous with asking
"What is our mission?"?
A) What is our business?
B) How can we improve
ourselves?
C) What do we want to
become?
D) Who are our stakeholders?
E) How can we increase
profitability?
Answer: A
According to Drucker, which question is synonymous with asking "What is our mission?"?
A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
Answer: A
According to Drucker, a business' mission is the foundation for all of the following EXCEPT
A) priorities.
B) strategies.
C) plans.
D) employee wage rates.
Answer: D
22) According to Peter
Drucker, asking the question
"What is our business?" is
synonymous with
asking the question "What is
our vision?"
Answer: FALS
6) Carefully prepared
statements of vision and
mission are widely
recognized as the first step in
strategic management.
Answer: TRUE
As indicated in the strategic-management model, a clear ________ is needed before alternative
strategies can be formulated and implemented.
A) short-term objective
B) implementation plan
C) audit policy
D) mission statement
Answer: D
30) Effective and carefully
planned mission statements
A) require major changes
every few months.
B) require major changes
every few quarters.
C) require major revision
every few years.
D) do not require revision.
E) require infrequent major
changes, but are always
subject to revision.
Answer: E
Effective and carefully planned mission statements
A) require major changes every few months.
B) require major changes every few quarters.
C) require major revision every few years.
D) require infrequent major changes, but are always subject to revision.
Answer: D
In the process of developing a mission statement, it is important to involve
A) as few managers as possible.
B) as many managers as possible.
C) upper-level management only.
D) lower-level management only.
Answer: B
32) The process of
developing a vision and
mission statement often
includes which of these as
the first activity?
A) Requesting that managers
modify the current
documents
B) Asking managers to read
selected articles about vision
and mission statements
C) Asking managers to
prepare a vision statement for
the organization
D) A brainstorming session
on whether the organization
should have only a vision
statement
E) Merging several mission
statements into one document
Answer: B
The process of developing a vision and mission statement often includes which of these as the
first activity?
A) Requesting that managers modify the current documents
B) Asking managers to read selected articles about vision and mission statements
C) Asking managers to prepare a vision statement for the organization
D) A brainstorming session on whether the organization should have only a vision statement
Answer: B
After a draft mission statement has been developed, it is important to
A) ask managers to read several articles about mission statements as background information.
B) vote on the mission statement.
C) ask managers to prepare a mission statement for the organization.
D) request modifications, additions, and deletions.
Answer: D
34) A(n) ________ with
expertise in developing
vision and mission statements
and with
unbiased views, can at times
manage the process more
effectively than an internal
group or
committee of managers.
A) external group
B) external auditor
C) outside process analyst
D) internal auditor
E) outside facilitator
Answer: E
A(n) ________ with expertise in developing vision and mission statements and with unbiased
views, can at times manage the process more effectively than an internal group or committee of
managers.
A) external group
B) external auditor
C) outside process analyst
D) outside facilitator
Answer: D
According to Campbell and Yeung, what is/are most likely associated with behavior and the
present?
A) Mission
B) Values
C) Long-term objectives
D) Vision
Answer: A
According to the comprehensive strategic-management model, which step immediately follows
the establishment of long-term objectives?
A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Generating, evaluating, and selecting strategies
Answer: D
According to Drucker, what is the best time to ask "What do we want to become?" and "What is
our business?"?
A) When a firm is in decline
B) When the firm is successful
C) When the firm is in financial trouble
D) When the firm is in legal trouble
Answer: B
When developing a mission statement, what is needed before people can focus on specific
strategy formulation activities?
A) Negotiation
B) Compromise
C) Eventual agreement
D) All of the above
Answer:
All stakeholders' claims on an organization ________ pursued with equal emphasis.
A) cannot be
B) should always be
C) are required to be
D) must ideally be
Answer: A
All stakeholders ……………… .
A) have claims and concerns about an organization, but these claims and concerns vary.
B) have the same claims and concerns about an organization.
C) have ownership rights in an organization.
D) have the same voting rights in an organization.
Answer: A
A good mission statement has
A) an employee orientation.
B) a customer orientation.
C) a shareholder orientation.
D) an environmental orientation.
Answer: B
62) The potential for creative
growth in an organization can
be limited by
A) an overemphasis on
stakeholders.
B) not enough emphasis on
stakeholders.
C) a mission statement that is
too general.
D) a mission statement that is
too specific.
E) a mission statement that is
too dynamic.
Answer: D
The potential for creative growth in an organization can be limited by
A) an overemphasis on stakeholders.
B) not enough emphasis on stakeholders.
C) a mission statement that is too general.
D) a mission statement that is too specific.
Answer: D
An overly general mission statement that ________ could be dysfunctional.
A) does not exclude any strategy alternatives
B) encourages management creativity
C) excludes all diversification
D) endorses the consideration of feasible potential strategies
Answer: A
The general public is especially interested in ________, whereas stockholders are more
interested in ________.
A) environmental concerns; social responsibility
B) social responsibility; the treatment of employees
C) the treatment of employees; environmental concerns
D) social responsibility; profitability
Answer: D
In order to appeal to diverse stakeholders, an effective mission statement should be
A) inflammatory.
B) provocative.
C) contentious.
D) reconciliatory.
Answer: D
In developing a mission statement, arousing emotion
A) is not a benefit.
B) is futile.
C) is important.
D) should be avoided if possible.
Answer: C
An effective mission statement does all of the following EXCEPT
A) it reflects judgments about future growth directions that are based upon forward-looking
external and internal analyses.
B) it provides useful criteria for selecting among alternative strategies.
C) it provides a basis for generating and screening strategic options.
D) it is static in orientation.
Answer: D
Good mission statements identify the ________ of a firm's products to its customers.
A) utility
B) price
C) profit margin
D) demand
Answer: A
Which of these examples of a mission statement focus area does NOT identify the utility of the
firm's products to its customers?
A) AT&T focuses on communication rather than telephones.
B) ExxonMobil focuses on oil and gas rather than energy.
C) Union Pacific focuses on transportation rather than railroads.
D) Universal Studios focuses on entertainment rather than movies.
Answer: B
What question is asked in conjunction with the philosophy component of a mission statement?
A) What are the firm's major products or services?
B) Is the firm committed to growth and financial soundness?
C) What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
D) Is the firm responsive to social, community, and environmental concerns?
Answer: C
An effective mission statement should do all of the following EXCEPT
A) include monetary amounts, numbers, percentages and ratios.
B) be inspiring.
C) reveal that the firm is environmentally responsible.
D) identify the utility of a firm's products.
Answer: A
104) The following excerpt
from a mission statement
illustrates which of the nine
essential
components of a mission
statement?
"We believe our first
responsibility is to the
doctors, nurses, patients,
mothers, and all others who
use our products and
services."
A) Markets
B) Customers
C) Concern for Employees
D) Concern for Public Image
E) Technology
Answer: B
The following excerpt from a mission statement illustrates which of the nine essential
components of a mission statement?
"We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others
who use our products and services."
A) Markets
B) Customers
C) Concern for Employees
D) Concern for Public Image
Answer: B
Effective mission statements can vary in
A) length.
B) content.
C) format.
D) all of the above
Answer: D
Which component of a mission statement addresses the firm's distinctive competence or major
competitive advantage?
A) Technology
B) Philosophy
C) Concern for public image
D) Self-concept
Answer: D
Which component of a mission statement addresses the basic beliefs, values, aspirations, and
ethical priorities of the firm?
A) Technology
B) Philosophy
C) Concern for public image
D) Customers
Answer: B
Which question(s) is answered in an effective mission statement?
A) Is the firm committed to growth and financial soundness?
B) Are employees a valuable asset of the firm?
C) Geographically, where does the firm compete?
D) All of the above questions are answered in an effective mission statement.
Answer: D
Which question is NOT addressed in an effective mission statement?
A) Is the firm committed to growth and financial soundness?
B) Are employees a valuable asset of the firm?
C) Geographically, where does the firm compete?
D) What are the updated balances of leading accounts on the firm's balance sheet?
Answer: D
Which of the following is NOT one of the nine recommended components of a mission
statement?
A) Strategies
B) Self-concept
C) Employees
D) Markets
Answer: A
SECOND TRURE OR FALSE
1. The foundation for development of a comprehensive mission statement is
provided by a clear vision.
Answer: TRUE
2. According to Peter Drucker, asking the question "What is our business?" is
synonymous with asking the question "What is our vision?"
Answer: FALSE
22) According to Peter
Drucker, asking the question
"What is our business?" is
synonymous with
asking the question "What is
our vision?"
Answer: FALSE
3. A mission statement is a declaration of an organization's reason for being.
Answer: TRUE
4. A mission statement, is an enduring statement of purpose that distinguishes
one organization from other similar enterprises.
Answer: TRUE
5. A mission statement can sometimes be called a statement of philosophy.
Answer: TRUE
6. Carefully prepared statements of vision and mission are widely recognized as
the first step in strategic management.
Answer: TRUE
7. According to Peter Drucker, answering the question "What is our business?" is
the first responsibility of strategists.
Answer: TRUE
8. When developing a vision statement, input should be received from as many
managers as possible.
Answer: TRUE
9. A small nonprofit organization would probably develop a vision statement
but not a mission statement.
Answer: FALSE
10. When developing a mission statement, it is usually advisable to involve as few
managers as possible.
Answer: FALSE
11. In the widely used approach discussed in the text book, the first step in the
process of developing a mission statement is to ask managers to state what
they believe the organization's mission should be.
Answer: FALSE
12. According to Campbell and Yeung, the process of developing a mission
statement should create an "emotional bond" and "sense of mission" between
the organization and its employees.
Answer: TRUE
13. According to Campbell and Yeung, an organization's vision is associated with
behavior and with the present.
Answer: FALSE
14. Raising the question "What is our business" may cause a realization of
fundamental disagreement among individuals who have worked together for a
long time and who think they know each other.
Answer: TRUE
15. According to Drucker, the most important time for a company to develop
mission and vision statements is when the company is experiencing financial
difficulty.
Answer: FALSE
