Midterm Quiz # 3

• A good mission statement allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity.

  TRUE
• In the beginning, a new business is simply a collection of equipment.

  FALSE
• A good mission statement reflects the anticipations of customers.

  TRUE
• Shared vision creates a commonality of interests that can lift workers out of the monotony of daily work and put them into a new world of opportunity and challenge.

  TRUE
• Both profit and vision are needed to motivate a workforce effectively.

  TRUE
• A major reason for developing a business mission statement is to attract customers who give meaning to an organization.

  TRUE
• When the set of beliefs about a business at its inception is put into writing, the resulting document mirrors the same basic ideas that underlie the vision and mission statements.

  TRUE
• Some companies develop mission statements simply because they feel it is fashionable, rather than out of any real commitment.

  TRUE
• It can be argued that mission, not profit or vision is the primary corporate motivator.

  FALSE
• A mission statement needs to be broad to reconcile differences effectively among, and appeal to, an organization's diverse stakeholders, the individuals and groups of individuals who have a special stake or claim on the company.

  TRUE
• A vision statement is often the most visible and public part of the strategic-management process.

  FALSE
• All organizations need customers, employees, and managers, and most firms need creditors, suppliers, and distributors.

  TRUE
• There is no one best mission statement for a particular organization, so good judgment is required in evaluating mission statements.

  TRUE
• Strategists who rush quickly to establish objectives and implement strategies often overlook the development of a vision and mission statement.

  TRUE
• Perhaps the best way to develop a skill for writing and evaluating mission statements is to study actual company missions.

  TRUE
• Success always obsoletes the very behavior that achieved it, always creates new realities, and always creates new and different problems.

  TRUE
• All organizations have a reason for being, even if strategists have not consciously transformed this reason into argument.

  FALSE
• A vision statement is more than a statement of specific details; it is a declaration of attitude and outlook.

  FALSE
• Some studies have found that having a mission statement does not directly contribute positively to financial performance.

  TRUE
• A vision statement should be reconciliatory.

  FALSE
• Well-designed vision and mission statements are essential for formulating, implementing, and evaluating strategy.

  TRUE
• Establishing a mission should never be made on plausibility alone, should never be made fast, and should never be made painlessly.

  TRUE
• When the company is successful is, in effect, smug, lazy, and arrogant. It will not be long before failure will turn into success.

  FALSE
• The extent of manager and employee involvement in developing vision and mission statements can make a difference in business success.

  TRUE
• A change in mission always leads to changes in objectives, strategies, organization, and behavior.

  TRUE
• In a recent study, researchers concluded that 90 percent of all companies have used a mission statement sometime in the previous five years.

  TRUE
• It is especially important for managers and executives in any organization to agree on the basic vision that the firm strives to achieve in the long term.

  TRUE
• Vision and mission statements often can be found in the front of income statement.

  FALSE
• Sooner or later, even the most successful answer to the question "What is our business?" becomes obsolete.

  TRUE
• The process of developing a vision and mission statement represents a great opportunity for strategists to obtain needed support from all managers in the firm.

  TRUE
• Developing a business mission is a big step toward management effectiveness.

  TRUE
• Too often, strategists develop vision and business mission statements only when the organization is in trouble.

  TRUE
• An organization that fails to develop a vision statement as well as a comprehensive and inspiring mission statement loses the opportunity to present itself favorably to existing and potential stakeholders.

  TRUE
• Another benefit of developing a comprehensive mission statement is that similar views among managers can be revealed and resolved through the process.

  FALSE
• Considerable agreement among an organization's strategists over vision and mission statements can cause trouble if not resolved.

  FALSE