MGMT 4513 MIDTERM EXAMINATION TEST
2026 QUESTIONS WITH SOLUTIONS
◉ Some excellent examples of mission statements are: "To be the
happiest place on earth" (Disney) and "restoring patients to full life"
(Medtronic) Answer: False
◉ Organizational goals and objectives should be vague in order to allow
changes in strategy. Answer: False
◉ Strategic Management Answer: is the study of why some firms
outperformothers
◉ Strategic Mission Answer: 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 Answer: Crystallization of what leaderswant firm to
be.
Guides development of strategyand organization
• Describes an inspiring newreality
, • Is achievable within a specifictime period
• Primarily useful internally(slogans can be used externally)
◉ Strategic Strategy Answer: 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) Answer: is the measure of a company's net
income divided by its shareholders' equity.
◉ Retrun on Assets (ROA) Answer: a measure of how efficiently a
company uses the assets it owns to generate profits.
◉ Voice Of The Process (VOP) Answer: 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 Answer: Objectives that are
used as surrogates for eventual wealth or thefulfillment of a mission
2026 QUESTIONS WITH SOLUTIONS
◉ Some excellent examples of mission statements are: "To be the
happiest place on earth" (Disney) and "restoring patients to full life"
(Medtronic) Answer: False
◉ Organizational goals and objectives should be vague in order to allow
changes in strategy. Answer: False
◉ Strategic Management Answer: is the study of why some firms
outperformothers
◉ Strategic Mission Answer: 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 Answer: Crystallization of what leaderswant firm to
be.
Guides development of strategyand organization
• Describes an inspiring newreality
, • Is achievable within a specifictime period
• Primarily useful internally(slogans can be used externally)
◉ Strategic Strategy Answer: 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) Answer: is the measure of a company's net
income divided by its shareholders' equity.
◉ Retrun on Assets (ROA) Answer: a measure of how efficiently a
company uses the assets it owns to generate profits.
◉ Voice Of The Process (VOP) Answer: 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 Answer: Objectives that are
used as surrogates for eventual wealth or thefulfillment of a mission
