The managerial process of crafting and executing strategy

Crafting and executive strategy

The Managerial Process of Crafting and Executing Strategy- Ch2

1

Which one of the following is not an integral part of the managerial process of crafting and executing strategy?

    A)

Developing a strategic vision

    B)

Developing a proven business model

    C)

Setting objectives and crafting a strategy to achieve them

    D)

Monitoring developments, evaluating performance, and initiating corrective adjustments in the company's long-term direction, objectives, strategy, or execution

    E)

Implementing and executing the chosen strategy efficiently and effectively

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2

A strategic vision for a company

    A)

involves how fast to pursue the chosen strategy and reach the targeted levels of performance.

    B)

consists of thinking through what it will take to make the chosen strategy work as planned.

    C)

is a road map that delineates management's view of the company's future-"where we are going and why."

    D)

spells out how the company is going to get from where it is now to where it want to go and when it is expected to arrive.

    E)

concerns management's view of how to transition the company's business model from where it is now to where it needs to be.

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3 CORRECT

Which of the following is not an important consideration in deciding to commit to one directional path versus another?

    A)

Are changes presently under way in the market and competitive landscape acting to enhance or weaken the company's business outlook?

    B)

Where should we head in order to prove that our business model is viable and that our strategy is working?

    C)

Will the company's present business generate sufficient growth and profitability in the years ahead to please shareholders?

    D)

What, if any, new geographic markets and/or customer groups should the company get in position to serve?

    E)

What are our ambitions for the company-what industry standing do we want the company to have?

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4

The difference between a company's mission statement and the concept of a strategic vision is that

    A)

the mission statement lays out the desire to make a profit, whereas the strategic vision addresses what strategy the company will employ in trying to make a profit.

    B)

a mission statement deals with "where we are headed " whereas a strategic vision provides the critical answer to "how will we get there?"

    C)

a mission deals with what a company is trying to do and a vision concerns what a company ought to do.

    D)

a mission statement typically identifies what the company's products or services are (what we do) and the customers and markets it serves (why we are here), whereas the focus of a strategic vision is on "where we are going and why."

    E)

a mission is about what to accomplish for shareholders whereas a strategic vision concerns what to accomplish for customers.

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5

Which one of the following is not a characteristic of an effectively-worded strategic vision statement?

    A)

Directional (says something about the company's journey and destination and the kinds of business and strategic changes that will be forthcoming)

    B)

Inspirational (is worded in a motivational and stirring way that will garner enthusiastic and energetic support from company personnel and shareholders)

    C)

Graphic (paints a clear picture)

    D)

Easy to communicate (ideally, explainable in 10 minutes)

    E)

Focused and flexible (has specifics but stops short of a once-and-for-all-time pronouncement because the strategic path may need to be changed as events unfold)

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6

Which of the following is a common shortcoming of company vision statements?

    A)

Incomplete or vague-short on specifics

    B)

Too reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of buyers)

    C)

So broad that it really doesn't rule out pursuing most any opportunity management spots

    D)

Not distinctive-could apply to most any company (or at least several others in the same industry)

    E)

All of the above are common shortcomings

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7

A company's values can relate to

    A)

how it will treat employees and customers and the importance the company places of teamwork.

    B)

expectations that company personnel will exhibit integrity and fairness in conducting the company's business.

    C)

the emphasis the company will place on innovativeness or quality or customer service.

    D)

the company's beliefs in high ethical standards, socially responsible behavior, and giving back to the community.

    E)

All of the above.

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8

When there's an order of magnitude change in a company's environment that dramatically alters its prospects and mandates radical revision of its strategic course, the company is said to have encountered

    A)

a strategic inflection point.

    B)

a directional crossroads.

    C)

a new strategic intent opportunity.

    D)

a strategic roadblock that requires a new strategic vision and business model.

    E)

a quantum conflict between its strategy and its strategic vision (that usually requires changing both the vision and the strategy).

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9 CORRECT

A company's objectives or performance targets

    A)

represent a managerial commitment to achieving quantifiable or measurable outcomes and results by a certain time and are needed for each all areas of the business that managers deem important to organizational success.

    B)

are typically established after a company decides on a strategic vision and strategy so that they will entail performance targets that truly signal business success.

    C)

are best stated in general terms (maximize profits, reduce costs, increase sales) rather than quantifiable terms (increase after-tax profits by 10% in 2 years, grow sales revenues by 20% annually) so that managers will have the latitude to adjust target outcomes to levels that can be achieved.

    D)

should place far more emphasis on financial performance targets than strategic performance targets.

    E)

All of these.

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10

Which of the following represents the best example of a strategic objective (as opposed to a financial objective)?

    A)

Achieve revenue growth of 10% annually

    B)

Increase market share from 17% to 22% within 3 years and achieve the lowest overall costs of any producer in the industry

    C)

Boost earnings per share by 15% annually by offering customers the widest selection of products in the industry

    D)

Achieve a AA bond rating within 2 years and an annual cash flow of $500 million

    E)

Increase the company's return on invested capital from 13.5% to 15.0% within 2 years by paying more attention to reducing costs

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