Test Bank for Strategic Management A Competitive Advantage Approach, Concepts, 16th Edition Authors Fred R David, Forest R. David

1 Copyright © 201 7 Pearson Education, Inc. Strategic Management: A Competitive Advantage Approach, 16e (David) Chapter 2 The Business Vision and Mission 1) All of the following are mentioned as places where vision and mission statements can often be found EXCEPT A) SEC reports. B) annual report s. C) customer service agreements. D) supplier agreements. E) business plans. Answer: A Diff: 2 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication 2) Which statement is TRUE? A) Com panies must choose between having a mission statement or a vision statement. B) A company can't have a mission statement unless it has a vision statement. C) A vision statement cannot be established until a company has developed its mission statement. D) T he vision statement should be established before the mission statement. E) Companies are required by law to have both mission and vision statements. Answer: D Diff: 2 LO: 2.1: Describe the nature and role of vision statements in strategic management. AAC SB: Written and oral communication 3) Which of these basic questions should a vision statement answer? A) What is our business? B) What is our core strength? C) What are our challenges? D) What do we want to become? E) Who are our competitors? Answer: D Diff: 2 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication 2 Copyright © 201 7 Pearson Education, Inc. 4) Which type of statement should be created first and foremost? A) Creed B) Vision C) Objectives D) Mission E) Competiti ve advantage Answer: B Diff: 1 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication 5) The ideal length of a vision statement is A) one page. B) several paragraphs. C) one sentence. D) several sentences. E) as long as is necessary to convey the message. Answer: C Diff: 1 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication 6) Which basic question should the vision statement answer? A) What is our business? B) How can we improve ourselves? C) What do we want to become? D) Who are our stakeholders? E) How can we increase profitability? Answer: C Diff: 1 LO: 2.1: Describe the nature and role of vision statements in s trategic management. AACSB: Written and oral communication 7) Vision and mission statements can often be found in the front of annual reports. Answer: TRUE Diff: 1 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACS B: Written and oral communication 8) While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises. Answer: FALSE Diff: 1 LO: 2.1: Describe the nature and role of vision statements in str ategic management. AACSB: Written and oral communication 3 Copyright © 201 7 Pearson Education, Inc. 9) The foundation for development of a comprehensive mission statement is provided by a clear vision. Answer: TRUE Diff: 2 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication 10) If an organization chooses to have both a mission and a vision, the mission statement should be established first. Answer: FALSE Diff: 2 LO: 2.1: Describe the nature and role of vision statements i n strategic management. AACSB: Written and oral communication 11) An important question a mission statement should answer is, "What do we want to become?" Answer: FALSE Diff: 1 LO: 2.1: Describe the nature and role of vision statements in strategic mana gement. AACSB: Written and oral communication 12) Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?" Answer: FALSE Diff: 2 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication 13) In order to motivate a workforce effectively, both profit and vision are needed. Answer: TRUE Diff: 2 LO: 2.1: Describe the nature and role of vision statemen ts in strategic management. AACSB: Analytical thinking 14) A vision statement should answer the question, "What do we want to become?" Answer: TRUE Diff: 1 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Writ ten and oral communication 15) Well -conceived and properly executed mission and vision statements are not subject to revision. Answer: FALSE Diff: 1 LO: 2.1: Describe the nature and role of vision statements in strategic management. AACSB: Written and oral communication