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Chapter 2 The Business Vision and Mission

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

All of the following are mentioned as places where vision and mission statements can often be

found EXCEPT

a)

SEC reports.

b)

annual reports.

c)

customer service agreements.

d)

supplier agreements.

e)

business plans.

2.

Which statement is TRUE?

a)

Companies 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)

The vision statement should be established before the mission statement.

e)

Companies are required by law to have both mission and vision statements.

3.

Who is referred to as "the father of modem management"?

a)

Cleland

b)

Campbell

c)

Drucker

d)

McGinnis

e)

Yeung

4.

What is the first step in the comprehensive strategic-management model?

a)

Developing Vision and mission statements

b)

Performing external audits

c)

Performing internal audits

d)

Measuring and evaluating performance

e)

Establishing long-term objectives

5.

According to Drucker, a business' mission is the foundation for all of the following EXCEPT

a)

priorities.

b)

strategies.

c)

plans.

d)

employee wage rates.

e)

work assignments.

6.

In the process of developing a mission statement, it is important to involve

a)

as few managers as possible.

b)

as many managers as possible.

c)

upper-level management only.

d)

lower-level management only.

e)

the board of directors only.

7.

The process of developing a vision and mission statement often includes which of these as

the first activity?

a)

Requesting that managers modify the current documents

b)

Asking managers to read selected articles about vision and mission statements

c)

Asking managers to prepare a vision statement for the organization

d)

A brainstorming session on whether the organization should have only a vision statement

e)

Merging several mission statements into one document

8.

According to Drucker, what is the best time to ask "What do we want to become?" and

"What is our business?"

a)

When a firm is in decline

b)

When the firm is successful

c)

When the firm is in financial trouble

d)

When the firm is in legal trouble

e)

When the firm encounters competition

9.

Which group would be classified as stakeholders?

a)

Governments

b)

Creditors

c)

Suppliers

d)

Employees

e)

All of the above

10.

A good mission statement has

a)

an employee orientation.

b)

a customer orientation.

c)

a shareholder orientation.

d)

an environmental orientation.

e)

a profit orientation.

11.

The foundation for development of a comprehensive mission statement is provided by a clear

Vision.

a)

True

b)

False

12.

If an organization chooses to have both a mission and a vision, the mission statement should

be established first.

a)

True

b)

False

13.

An important question a mission statement should answer is, "What do we want to become?"

a)

True

b)

False

14.

When developing a mission statement, it is usually advisable to involve as few managers as

possible.

a)

True

b)

False

15.

A mission statement, is an enduring statement of purpose that distinguishes one organization

from other similar enterprises.

a)

True

b)

False

16.

A small nonprofit organization would probably develop a vision statement but not a mission

statement.

a)

True

b)

False

17.

In the widely used approach discussed in the textbook, the first step in the process of

developing a mission statement is to ask managers to state what they believe the organization's

mission should be.

a)

True

b)

False

18.

According to Campbell and Yeung, the process of developing a mission statement should

create an "emotional bond" and "sense of mission" between the organization and its employees

a)

True

b)

False

19.

Raising the question "What is our business" may cause a realization of fundamental

disagreement among individuals who have worked together for a long time and who think they

know each other.

a)

True

b)

False

20.

Research has failed to find a positive relationship between mission statements and organizational performance.

a)

True

b)

False