MBA 706 EXAM STUDY GUIDE 2- DR.
SALEH QUESTIONS WITH CORRECT
ANSWERS!!
What is the definition of a mission? - ANSWERUnique purpose that distinguishes the
organization from other companies and defines the boundaries of its operations
A Mission should define the boundaries of business' ambitions: - ANSWERProduct
Scope
Market Scope
Geographical Scope
T/F A mission may also encompass the organizations strategic intent or vision? -
ANSWERTRUE
Can a mission act as a guide and lead to the development of hierarchy of
objectives? - ANSWERYes
What should a mission accurately describe? - ANSWERThe: Business,
The: Market it serves
The: organizations capabilities
What does a mission do? - ANSWERProclamation of organizations primary objective
that encapsulates its core values
What should a mission do? - ANSWERCharacterize the organization's principles and
priorities and define the broad product, market, and technologies that are core to the
business.
What can influence an organizations mission? - ANSWER1. Corporate governance:
who SHOULD we serve /accountability
2. Stakeholders - who DO we serve/ balance of power
3. Business Ethics - social responsibility / expectations
4. Cultural Context - Aspects of mission are priority / influence of cultural
environment
What is a broad mission statement? - ANSWER- 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? - ANSWERPros-
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? - ANSWERExample: Newport News
Shipbuilding "we build good ships"
What are some pros & cons of a narrow focus mission statement? - ANSWERPros:
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? - ANSWER1. 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 - ANSWERSpecific
Measurable
Aspirational / Achievable
Realistic
Time Scales / Timely
What are characteristics of successful objectives? - ANSWERAcceptability
Flexibility
Comprehensibility
What are customer strategic objectives - ANSWERValue for money
Competitive price
Customer satisfaction
What are customer strategic measures? - ANSWERCustomer ranking survey
Pricing index
customer satisfaction index
Mystery shopping rating
What are internal strategic objectives? - ANSWER1. Marketing: product & service
deployment, shape customer requirement
2. Manufacturing: lower manufacturing cost, improve project management
3. Logistics: reduce delivery costs, inventory management
4. Quality
What is the hierarchy of objectives? - ANSWERCorporate - 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
SALEH QUESTIONS WITH CORRECT
ANSWERS!!
What is the definition of a mission? - ANSWERUnique purpose that distinguishes the
organization from other companies and defines the boundaries of its operations
A Mission should define the boundaries of business' ambitions: - ANSWERProduct
Scope
Market Scope
Geographical Scope
T/F A mission may also encompass the organizations strategic intent or vision? -
ANSWERTRUE
Can a mission act as a guide and lead to the development of hierarchy of
objectives? - ANSWERYes
What should a mission accurately describe? - ANSWERThe: Business,
The: Market it serves
The: organizations capabilities
What does a mission do? - ANSWERProclamation of organizations primary objective
that encapsulates its core values
What should a mission do? - ANSWERCharacterize the organization's principles and
priorities and define the broad product, market, and technologies that are core to the
business.
What can influence an organizations mission? - ANSWER1. Corporate governance:
who SHOULD we serve /accountability
2. Stakeholders - who DO we serve/ balance of power
3. Business Ethics - social responsibility / expectations
4. Cultural Context - Aspects of mission are priority / influence of cultural
environment
What is a broad mission statement? - ANSWER- 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? - ANSWERPros-
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? - ANSWERExample: Newport News
Shipbuilding "we build good ships"
What are some pros & cons of a narrow focus mission statement? - ANSWERPros:
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? - ANSWER1. 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 - ANSWERSpecific
Measurable
Aspirational / Achievable
Realistic
Time Scales / Timely
What are characteristics of successful objectives? - ANSWERAcceptability
Flexibility
Comprehensibility
What are customer strategic objectives - ANSWERValue for money
Competitive price
Customer satisfaction
What are customer strategic measures? - ANSWERCustomer ranking survey
Pricing index
customer satisfaction index
Mystery shopping rating
What are internal strategic objectives? - ANSWER1. Marketing: product & service
deployment, shape customer requirement
2. Manufacturing: lower manufacturing cost, improve project management
3. Logistics: reduce delivery costs, inventory management
4. Quality
What is the hierarchy of objectives? - ANSWERCorporate - 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
