MBA 706 Exam Study Guide 2- Dr. Saleh-Questions and
Answers 100% Solved
What is a broad mission statement? CORRECT ANS-- Fairly Common, generally refers to all
stakeholders in the business
EX) Scottish Power "highly rated utility-based company in related markets.. provide excellent
quality.. service to customers.. returns to investors"
What are some pros & cons of a broad mission statement? CORRECT ANS-Pros- addresses
the problem of too narrow of a focus
Cons- Can fail to clearly define core market & product areas
What is a narrow focus mission statement? CORRECT ANS-Example: Newport News
Shipbuilding "we build good ships"
What are some pros & cons of a narrow focus mission statement? CORRECT ANS-Pros:
Very clear description of the organizations primary business
Cons: May set unnecessary constraints on the company's activities
What are characteristics of a successful mission statement? CORRECT ANS-1. Credibility
2. Uniqueness
3. Specific capabilities
4. Aspirational
**Also need to define the scope: Product, market, geographical*
What are SMART goals? *Can be both short & long term CORRECT ANS-Specific
Measurable
Aspirational / Achievable
Realistic
, MBA 706 Exam Study Guide 2- Dr. Saleh-Questions and
Answers 100% Solved
Time Scales / Timely
What are characteristics of successful objectives? CORRECT ANS-Acceptability
Flexibility
Comprehensibility
What is the hierarchy of objectives? CORRECT ANS-Corporate - over 3 years: organizations
overall direction in term of growth / i.e. increase profit by 30%
Functional - over 3 years: Marketing, finance, HR, ops - Departments direction in terms of
growth / i.e. 25% increase in marketing share
Operational - 1-3 years: marketing mix (product, service, promotion) Marketing strategy
becomes the objective
Sometimes SBU - level also if org has a divisional structure
What is the balanced scorecard? CORRECT ANS-Requires managers to look at business
from 4 key perspectives:
1. Customer - satisfaction via surveys
2. Internal - marketing, manufacturing, logistics, quality
3. Innovation / learning - time to market, continuous improvement
4. Financial - ROI, cash flow, yearly performance
What are some key areas w/in which organizations should develop objectives (Drucker)
CORRECT ANS-- Market standing
- innovation
- productivity
, MBA 706 Exam Study Guide 2- Dr. Saleh-Questions and
Answers 100% Solved
- physical & financial resources
- profitability
- manager performance & development
- employee performance and attitude
- public responsibility
What are financial strategic objectives? CORRECT ANS-Return on capital
Cash flow
Profitability
Profitability growth
Reliability of performance
What are financial strategic measures CORRECT ANS-ROCE
Cash Flow
Net Margin
Volume Growth Rate vs. Industry
Profit forecast reliability
Sales backlog
What are customer strategic objectives CORRECT ANS-Value for money
Competitive price
Customer satisfaction
What are customer strategic measures? CORRECT ANS-Customer ranking survey
Pricing index
customer satisfaction index
Answers 100% Solved
What is a broad mission statement? CORRECT ANS-- Fairly Common, generally refers to all
stakeholders in the business
EX) Scottish Power "highly rated utility-based company in related markets.. provide excellent
quality.. service to customers.. returns to investors"
What are some pros & cons of a broad mission statement? CORRECT ANS-Pros- addresses
the problem of too narrow of a focus
Cons- Can fail to clearly define core market & product areas
What is a narrow focus mission statement? CORRECT ANS-Example: Newport News
Shipbuilding "we build good ships"
What are some pros & cons of a narrow focus mission statement? CORRECT ANS-Pros:
Very clear description of the organizations primary business
Cons: May set unnecessary constraints on the company's activities
What are characteristics of a successful mission statement? CORRECT ANS-1. Credibility
2. Uniqueness
3. Specific capabilities
4. Aspirational
**Also need to define the scope: Product, market, geographical*
What are SMART goals? *Can be both short & long term CORRECT ANS-Specific
Measurable
Aspirational / Achievable
Realistic
, MBA 706 Exam Study Guide 2- Dr. Saleh-Questions and
Answers 100% Solved
Time Scales / Timely
What are characteristics of successful objectives? CORRECT ANS-Acceptability
Flexibility
Comprehensibility
What is the hierarchy of objectives? CORRECT ANS-Corporate - over 3 years: organizations
overall direction in term of growth / i.e. increase profit by 30%
Functional - over 3 years: Marketing, finance, HR, ops - Departments direction in terms of
growth / i.e. 25% increase in marketing share
Operational - 1-3 years: marketing mix (product, service, promotion) Marketing strategy
becomes the objective
Sometimes SBU - level also if org has a divisional structure
What is the balanced scorecard? CORRECT ANS-Requires managers to look at business
from 4 key perspectives:
1. Customer - satisfaction via surveys
2. Internal - marketing, manufacturing, logistics, quality
3. Innovation / learning - time to market, continuous improvement
4. Financial - ROI, cash flow, yearly performance
What are some key areas w/in which organizations should develop objectives (Drucker)
CORRECT ANS-- Market standing
- innovation
- productivity
, MBA 706 Exam Study Guide 2- Dr. Saleh-Questions and
Answers 100% Solved
- physical & financial resources
- profitability
- manager performance & development
- employee performance and attitude
- public responsibility
What are financial strategic objectives? CORRECT ANS-Return on capital
Cash flow
Profitability
Profitability growth
Reliability of performance
What are financial strategic measures CORRECT ANS-ROCE
Cash Flow
Net Margin
Volume Growth Rate vs. Industry
Profit forecast reliability
Sales backlog
What are customer strategic objectives CORRECT ANS-Value for money
Competitive price
Customer satisfaction
What are customer strategic measures? CORRECT ANS-Customer ranking survey
Pricing index
customer satisfaction index
