MGMT 4513 MIDTERM EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
The hierarchy of organizational goals is in this order (least specific to most specific): -
ANS mission statements, vision statements, strategic objectives.
Some excellent examples of mission statements are: "To be the happiest place on earth"
(Disney) and "restoring patients to full life" (Medtronic) - ANS False
Organizational goals and objectives should be vague in order to allow changes in strategy. -
ANS False
Strategic Management - ANS is the study of why some firms outperformothers
Strategic Mission - ANS Statement explaining why acompany exists.
Provides context for all decisionswithin the organization
• Describes and enduring reality
Is capable of infinite fulfillment(no time frame)
• Useful for both internal andexternal audiences
Strategic Vision - ANS Crystallization of what leaderswant firm to be.
Guides development of strategyand organization
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, • Describes an inspiring newreality
• Is achievable within a specifictime period
• Primarily useful internally(slogans can be used externally)
Strategic Strategy - ANS How to beat present andpotential competitors.
Lists set of actions to provideproducts or services that createmore value than their cost
• Describes the "value proposition"chosen by the company
• Constantly changes in response toanalysis, trial and error
• For internal use
Return on Equity (ROE) - ANS is the measure of a company's net income divided by its
shareholders' equity.
Retrun on Assets (ROA) - ANS a measure of how efficiently a company uses the assets it owns
to generate profits.
Voice Of The Process (VOP) - ANS the manner in which a process communicates its
performance capability to meet the expectations, wants, and needs of the customer.
Objectives other than wealth creation - ANS Objectives that are used as surrogates for
eventual wealth or thefulfillment of a mission
The economic value model - ANS Strategy objective is to maximize shareholder wealth
Stakeholder surplus model - ANS Defines beneficiary group and maximizes wealth for total
group
Financial ratio analysis - ANS • Balance sheet
• Income statement
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2026.
The hierarchy of organizational goals is in this order (least specific to most specific): -
ANS mission statements, vision statements, strategic objectives.
Some excellent examples of mission statements are: "To be the happiest place on earth"
(Disney) and "restoring patients to full life" (Medtronic) - ANS False
Organizational goals and objectives should be vague in order to allow changes in strategy. -
ANS False
Strategic Management - ANS is the study of why some firms outperformothers
Strategic Mission - ANS Statement explaining why acompany exists.
Provides context for all decisionswithin the organization
• Describes and enduring reality
Is capable of infinite fulfillment(no time frame)
• Useful for both internal andexternal audiences
Strategic Vision - ANS Crystallization of what leaderswant firm to be.
Guides development of strategyand organization
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, • Describes an inspiring newreality
• Is achievable within a specifictime period
• Primarily useful internally(slogans can be used externally)
Strategic Strategy - ANS How to beat present andpotential competitors.
Lists set of actions to provideproducts or services that createmore value than their cost
• Describes the "value proposition"chosen by the company
• Constantly changes in response toanalysis, trial and error
• For internal use
Return on Equity (ROE) - ANS is the measure of a company's net income divided by its
shareholders' equity.
Retrun on Assets (ROA) - ANS a measure of how efficiently a company uses the assets it owns
to generate profits.
Voice Of The Process (VOP) - ANS the manner in which a process communicates its
performance capability to meet the expectations, wants, and needs of the customer.
Objectives other than wealth creation - ANS Objectives that are used as surrogates for
eventual wealth or thefulfillment of a mission
The economic value model - ANS Strategy objective is to maximize shareholder wealth
Stakeholder surplus model - ANS Defines beneficiary group and maximizes wealth for total
group
Financial ratio analysis - ANS • Balance sheet
• Income statement
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
