Test Bank – Essentials of Strategic Management: The
Quest for Competitive Advantage |
Chapter 2
1. You have been asked to evaluate Kampus Kombucha’s mission statement, “To heal and refresh
everyone we touch.” You would most likely observe that Kampus Kombucha’s mission statement
specifies the buyer needs that it seeks to satisfy and the customer groups or markets it serves.
specifically informs customers and employees “who we are, what we do, and why we are here.”
portrays this company’s aspirations for the future.
describes more of an objective and a result of what this company does instead of its purpose.
is vague, fairly uninformative, and blurs the essence of this company’s business activities.
Ideally, a company mission statement (1) identifies the company’s products and/or services, (2) specifies
the buyer needs that the company seeks to satisfy and the customer groups or markets that it serves, and
(3) gives the company its own identity. The usefulness of a mission statement that cannot convey the
essence of a company’s business activities and purpose is unclear.
,2. Award: 10.00 po ints
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 02-
01 Understand why it is critical for company
managers to have a clear strategic vision of
where a company needs to head and why.
Which of the following is an integral part of the managerial process of crafting and executing strategy?
developing a proven business model
setting objectives and using them as yardsticks for measuring the company’s performance and
progress
deciding how much of the company’s resources to employ in the pursuit of sustainable competitive
advantage
communicating the company’s mission and purpose to all employees
deciding on the composition of the company’s board of directors
Figure 2.1 displays the five-stage process: (1) developing a strategic vision, (2) setting objectives, (3)
crafting strategy, (4) implementing and executing the chosen strategy, and (5) evaluating and analyzing the
external environment and the company’s internal situation and performance.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 02-01 Understand why it is critical
for company managers to have a clear
strategic vision of where a company needs
to head and why.
Which of the following are integral parts of the managerial process of crafting and executing strategy?
,3. Award: 10.00 po ints
deciding on the company’s strategic intent, setting financial objectives, crafting a strategy, and
choosing what business approaches and operating practices to employ
developing a proven business model, deciding on the company’s strategic intent, and crafting a
strategy
setting objectives, crafting a strategy, implementing and executing the chosen strategy, and
deciding how much of the company’s resources to employ in the pursuit of sustainable
competitive advantage
coming up with a statement of the company’s mission and purpose, setting objectives, choosing
what business approaches to employ, selecting a business model, and monitoring developments
developing a strategic vision, setting objectives, crafting a strategy, and initiating corrective
adjustments
The process of crafting and executing a company’s strategy, as depicted in Figure 2.1, is an ongoing,
continuous process consisting of five interrelated stages: (1) developing a strategic vision that charts the
company’s long-term direction; (2) setting objectives for measuring the company’s performance and
tracking its progress in moving in the intended long-term direction; (3) crafting a strategy for advancing the
company along the path management has charted and achieving its performance objectives; (4) executing
the chosen strategy efficiently and effectively; and (5) monitoring developments, evaluating performance,
and initiating corrective adjustments in the company’s vision and mission statement, objectives, strategy,
or approach to strategy execution in light of actual experience, changing conditions, new ideas, and new
opportunities.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 02-01 Understand why it is critical
for company managers to have a clear
, 4. Award: 10.00 po ints
strategic vision of where a company needs
to head and why.
When companies adopt the strategy formulation, strategy execution process, the first step is to
monitor internal and external developments and initiate corrective adjustments to the business
model when necessary.
adopt a proven business model, decide on the company’s top management team, and craft a
strategy.
execute the company’s chosen strategy efficiently and effectively.
set objectives and develop a profitable business model to meet those objectives.
develop a strategic vision, mission, and values.
Figure 2.1 displays the five-stage process. The first step is developing a strategic vision, mission, and values.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 02-01 Understand why it is critical
for company managers to have a clear
strategic vision of where a company needs
to head and why.
The strategic management process is shaped by
management’s strategic vision, strategic and financial objectives, and strategy.
the decisions made by the compensation and audit committees of the board of directors.
Quest for Competitive Advantage |
Chapter 2
1. You have been asked to evaluate Kampus Kombucha’s mission statement, “To heal and refresh
everyone we touch.” You would most likely observe that Kampus Kombucha’s mission statement
specifies the buyer needs that it seeks to satisfy and the customer groups or markets it serves.
specifically informs customers and employees “who we are, what we do, and why we are here.”
portrays this company’s aspirations for the future.
describes more of an objective and a result of what this company does instead of its purpose.
is vague, fairly uninformative, and blurs the essence of this company’s business activities.
Ideally, a company mission statement (1) identifies the company’s products and/or services, (2) specifies
the buyer needs that the company seeks to satisfy and the customer groups or markets that it serves, and
(3) gives the company its own identity. The usefulness of a mission statement that cannot convey the
essence of a company’s business activities and purpose is unclear.
,2. Award: 10.00 po ints
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 02-
01 Understand why it is critical for company
managers to have a clear strategic vision of
where a company needs to head and why.
Which of the following is an integral part of the managerial process of crafting and executing strategy?
developing a proven business model
setting objectives and using them as yardsticks for measuring the company’s performance and
progress
deciding how much of the company’s resources to employ in the pursuit of sustainable competitive
advantage
communicating the company’s mission and purpose to all employees
deciding on the composition of the company’s board of directors
Figure 2.1 displays the five-stage process: (1) developing a strategic vision, (2) setting objectives, (3)
crafting strategy, (4) implementing and executing the chosen strategy, and (5) evaluating and analyzing the
external environment and the company’s internal situation and performance.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 02-01 Understand why it is critical
for company managers to have a clear
strategic vision of where a company needs
to head and why.
Which of the following are integral parts of the managerial process of crafting and executing strategy?
,3. Award: 10.00 po ints
deciding on the company’s strategic intent, setting financial objectives, crafting a strategy, and
choosing what business approaches and operating practices to employ
developing a proven business model, deciding on the company’s strategic intent, and crafting a
strategy
setting objectives, crafting a strategy, implementing and executing the chosen strategy, and
deciding how much of the company’s resources to employ in the pursuit of sustainable
competitive advantage
coming up with a statement of the company’s mission and purpose, setting objectives, choosing
what business approaches to employ, selecting a business model, and monitoring developments
developing a strategic vision, setting objectives, crafting a strategy, and initiating corrective
adjustments
The process of crafting and executing a company’s strategy, as depicted in Figure 2.1, is an ongoing,
continuous process consisting of five interrelated stages: (1) developing a strategic vision that charts the
company’s long-term direction; (2) setting objectives for measuring the company’s performance and
tracking its progress in moving in the intended long-term direction; (3) crafting a strategy for advancing the
company along the path management has charted and achieving its performance objectives; (4) executing
the chosen strategy efficiently and effectively; and (5) monitoring developments, evaluating performance,
and initiating corrective adjustments in the company’s vision and mission statement, objectives, strategy,
or approach to strategy execution in light of actual experience, changing conditions, new ideas, and new
opportunities.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 02-01 Understand why it is critical
for company managers to have a clear
, 4. Award: 10.00 po ints
strategic vision of where a company needs
to head and why.
When companies adopt the strategy formulation, strategy execution process, the first step is to
monitor internal and external developments and initiate corrective adjustments to the business
model when necessary.
adopt a proven business model, decide on the company’s top management team, and craft a
strategy.
execute the company’s chosen strategy efficiently and effectively.
set objectives and develop a profitable business model to meet those objectives.
develop a strategic vision, mission, and values.
Figure 2.1 displays the five-stage process. The first step is developing a strategic vision, mission, and values.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 02-01 Understand why it is critical
for company managers to have a clear
strategic vision of where a company needs
to head and why.
The strategic management process is shaped by
management’s strategic vision, strategic and financial objectives, and strategy.
the decisions made by the compensation and audit committees of the board of directors.
