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STRATEGIC MANAGEMENT - Exercise 2
Questions and Answers 100% Pass
A company sets financial and strategic objectives - ANS to adapt the vision and mission to
specific performance targets.
Companies set strategic objectives - ANS to target outcomes that indicate a company is
strengthening its market standing, competitive position, and future business prospects.
Why is it important to set financial objectives? - ANS Without adequate profitability and
financial strength, the company's ultimate survival is jeopardized.
How could Volkswagen better select its Board of Directors to avoid mistakes such as the
emissions scandal in 2015? - ANS Select a strong independent board of directors.
In what ways did the Board of Directors sidestep its obligation to protect shareholder interest? -
ANS The board did not feel it had the technical expertise to make decisions on emissions and
controls.
In what ways did Volkswagen fulfill the requirements of effective corporate governance? -
ANS Volkswagen's board of directors did not fulfill any of its primary obligations to
shareholders.
What are the effective elements and shortcomings of BASF's vision statement? - ANS The
effective elements are that it is focused, feasible, and makes good business sense. The
shortcomings are that it dwells on the present and is vague about the future.
©FYNDLAY 1
STRATEGIC MANAGEMENT - Exercise 2
Questions and Answers 100% Pass
A company sets financial and strategic objectives - ANS to adapt the vision and mission to
specific performance targets.
Companies set strategic objectives - ANS to target outcomes that indicate a company is
strengthening its market standing, competitive position, and future business prospects.
Why is it important to set financial objectives? - ANS Without adequate profitability and
financial strength, the company's ultimate survival is jeopardized.
How could Volkswagen better select its Board of Directors to avoid mistakes such as the
emissions scandal in 2015? - ANS Select a strong independent board of directors.
In what ways did the Board of Directors sidestep its obligation to protect shareholder interest? -
ANS The board did not feel it had the technical expertise to make decisions on emissions and
controls.
In what ways did Volkswagen fulfill the requirements of effective corporate governance? -
ANS Volkswagen's board of directors did not fulfill any of its primary obligations to
shareholders.
What are the effective elements and shortcomings of BASF's vision statement? - ANS The
effective elements are that it is focused, feasible, and makes good business sense. The
shortcomings are that it dwells on the present and is vague about the future.
©FYNDLAY 1
