Chapter 2 Quiz + Answers Essay Example for Free

Chapter 2 Quiz + Answers Essay1. When companies adopt the strategy-making and strategy execution process it requires they start by growing a strategical vision, delegacy and values2. The strategic management process is shaped byexternal factors such as the industrys economic and competitive conditions and familiar factors such as the companys collection of resources and capabilities3. When a company is confronted with significant industry change that mandates radical revision of its strategic course, the company is said to have encountereda strategic inflection point4. A companys strategic plan consists ofa vision of where it is headed, a set of performance targets, and a strategy to achieve them5. pennant managements views about where the company is headed and what its future product-client-market-technology will beconstitutes the strategic vision for the company6. Well-conceived visions aredistinctivespecific to a particular organization spare of generic, feel-good statementsn ot innocuous one-sentence statementsAll of these7. Effectively communicating the strategic vision down the line to lower-level managers and employees has the value ofnot only explaining where we are going and wherefore but, more 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 community citizenship10. The managerial purpose of setting objectives includesconverting the strategic vision into specific performance targetsusing the objectives as yardsticks for tracking the companys progress and performance intriguing the organization to perform at its full potential and deliver the best possible resultsest ablishing deadlines for achieving performance results11. A company needs financial objectivesbecause without adequate positivity and financial strength, the companys ultimate survival is jeopardized12. Strategic objectivesrelate to strengthening a companys overall market standing and competitive vitality13. A balanced add-in for measuring company performanceentails striking a balance between financial objectives and strategic objectives14. A balanced scorecard that includes both strategic and financial performance targets is a conceptually strong approach for judging a companys overall performance becausefinancial performance measures are lagging indicators that reflect the results of recent decisions and organizational activities whereas strategic performance measures are leading indicators of a companysfuture financial performance15. A company needs performance targets or objectivesfor its trading operations as a whole and also for each of its separate businesses, product lin es, functional departments, and individual work units16. Business strategy concernsensuring 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 related 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 obligated to monitor new external developments, evaluate the companys progress, and make corrective adjustments in order todecide whether to continue or change the companys strategic vision, objectives, strategy and/or strategy execution methods