REVIEWER FOR STRATEGIC MANAGEMENT 2

1. Why is it important for managers and executives to agree on the basic vision of the firm?

• A. It ensures the firm achieves short-term goals.
• B. It provides the foundation for developing a mission statement.
• C. It helps in employee training.
• D. It improves day-to-day operations.

2. What fundamental question should a vision statement answer?

• A. How do we achieve our goals?
• B. What are our core values?
• C. What do we want to become?
• D. Who are our competitors?

3. What is the recommended length for a vision statement?

• A. A paragraph
• B. One sentence
• C. A page
• D. A few paragraphs

4. Which statement should be established first, according to the passage?

• A. The mission statement
• B. The core values statement
• C. The vision statement
• D. The strategic plan

5. Who should have input into developing the vision statement?

• A. Only the CEO
• B. As many managers as possible
• C. All employees
• D. External consultants

1. What have Rarick and Vitton found regarding firms with formalized mission statements?

• A. They have lower average returns on shareholders' equity.
• B. They have twice the average return on shareholders’ equity.
• C. They have no significant difference in performance.
• D. They have a higher employee satisfaction rate.

2. What did Bart and Baetz find in their research on mission statements?

• A. A negative relationship between mission statements and organizational performance.
• B. No relationship between mission statements and organizational performance.
• C. A positive relationship between mission statements and organizational performance.
• D. A relationship between mission statements and customer satisfaction.

3. According to BusinessWeek, firms using mission statements have what percentage higher return on certain financial measures?

• A. 10 percent
• B. 20 percent
• C. 30 percent
• D. 40 percent

4. What do some studies indicate about the impact of having a mission statement on financial performance?

• A. It directly contributes positively.
• B. It has no impact.
• C. It negatively affects performance.
• D. It does not directly contribute positively.

5. What factor can make a difference in the effectiveness of vision and mission statements?

• A. The length of the statements.
• B. The extent of manager and employee involvement in developing them.
• C. The use of external consultants.
• D. The frequency of updating the statements.