MGT603 Midterm Past Papers by VU Topper RM

A firms concern for employees in a mission addresses the question, “Is the firm responsive to social, community, and environmental concerns?” ➢ True ➢ False

According to Peter Drucker, developing a clear business vision and mission is the first responsibility of strategists. ➢True ➢ False

Environmental changes should not change a mission statement.

➢ False

➢ True

A well-conceived mission statement is the cornerstone of effective strategic management. ➢True ➢ False

The vision and mission statement can often be found ➢ in the SEC report. ➢in annual reports.

According to recent studies, what percent of companies have used a mission statement sometime in the past five years?

➢ 75% ➢90%

Which of these basic questions should a vision statement answer?

➢ What do we want to become?

➢ Who are our competitors?

Which statement should be created first and foremost?

➢ Strategic

➢Vision

The ideal length of a vision statement is: ➢ one sentence. ➢ as long as necessary to convey the message. Who is referred to as “the father of modern management?”

➢ Drucker

➢ McGinnis

What is the first step in the comprehensive strategic-management model?

➢ Developing vision and mission statements

➢ Performing external audits

According to the comprehensive strategic-management model, which step needs to be completed immediately following the establishment of long-term objectives?

➢ Generating, evaluating, and selecting strategies

➢ Measuring and evaluating performance

The purpose of a mission statement is to declare all of these except: ➢ a reason for being. ➢ an annual financial plan.

As indicated in the strategic-management model, a clear is needed before alternate strategies can be formulated and implemented.

➢ mission statement

➢ evaluation strategy

A mission statement is sometimes called all of the following except: ➢a statement of intent. ➢ a statement of purpose.

A businesses mission is the foundation for all of the following except: ➢ employee wage rates. ➢ work assignments.

The mission statement answers which question?

➢ What is our business?

➢ How can we improve ourselves?

The vision statement answers which question?

➢ How can we improve ourselves?

➢What do we want to become?

In the process of developing a mission statement, it is important to involve ➢ as few managers as possible. ➢as many managers as possible.

Vu-Topper RMThe process

of developing a vision and mission statement includes which of these as the first activity?

➢ A request to modify the current document ➢Ask managers to read selected articles about mission statements.

After a draft mission statement has been developed, it is important to: ➢ ask managers to seek support for the mission statement from their subordinates. ➢provide a request for modifications, additions and deletions to the mission statement.

What can be used to promote unbiased views and to manage the development of the mission statement more effectively?

➢ surveys

➢ a facilitator

According to Campbell and Yeung, what is/are most likely associated with behavior and the present.

➢ Mission

➢ Values

A study by Rarick and Vitton found that firms with a formalized mission statement have the average return on shareholders’ equity compared to those firms without a formalized mission statement. ➢ half

➢twice

Business Week reports that firms using mission statements have percent higher return on certain financial measures than those without such statements. ➢ 30 ➢ 57

King and Cleland recommend organizations carefully develop a written mission statement for all of the following reasons except: ➢ to ensure a command-and-control structure. ➢ to facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization.