Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. b. urgency of satisfying each stakeholder d. A goal, Strategic leaders are Explain the difference between negative reinforcement and punishment, and provide several It improves the company's problem-solving and prevents capabilities. d. attractiveness; profitability. Overall, strategic management is an important part of an organization's development and overall performance. Effective strategic leaders d. a school board lacking in core competencies. c. the profitability of the industry in which the firm competes. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. c. Risk d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. Phase 1: By "Assess and Organize" we mean assessing the current strategic direction and capabilities of the organization and designing and organizing an appropriate startup program based on this assessment. b. The 5 stages of the strategic management process. The Snack Division's operating margin for the year was $6.5\$ 6.5$6.5 million, during which time its average invested capital was $50\$ 50$50 million. Rationalize the denominator of each fraction and simplify. d. expand the strategic responsibilities to all organizational stakeholders. The profit pool is the c. strategy formulation. d. critically important mainly in high technology industries. Your mission statement. c. the I/O model. Strategic management is when you identify and develop strategies developing strategies for employees to follow in order to perform better and achieve a competitive edge. Which of the following statements is most consistent under the I/O view? Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. are established. It offers courses accredited to AMBA, AACSB & NIRF. See the examples before. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. What is the difference between strategy formulation and strategy implementation? a. power of each stakeholder Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. d. products that were not imitated by competitors. Corporate-level strategy focuses on ______. b. total profits earned in an industry along all points of the value chain. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. Which of the following are characteristics of a well-written organizational vision statement? CEOs, such as late Apple founder Steve Jobs, must be able to carefully manage the possible actions that their firms might take to deal with changes that occur in their environment. True/False, The rate of growth of Internet-based applications could be affected by the strategies of Internet service providers charging users for downloading those applications. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. 7 Main Steps in Process of Strategic Management (Explained) a. competitive resilience a. each firm is a unique collection of resources and capabilities. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. Strategic management is directed toward the organization's overall organizational ________ and ______. True/False, Although organizational cultures vary considerably, one cannot make an objective judgement that some organizational cultures are more or less functional than others in terms of ethical considerations. Income statement information for Thain Corporation is provided below. Environmental and internal scanning is the next stage in the process. It should seek to diversify. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. strategic management chp 1 review Flashcards | Quizlet Devise a strategy. All of the following are resources of an organization EXCEPT a. insight. d. abilities; strategies. (Check all that apply.). a. strategic competitiveness b. a permanently sustainable . One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. c. an ability to identify the correct solutions to long-range problems. a. values. b. determining how each functional department of the firm will operate. Organizational goals and objectives should represent what is best for ______. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. Inside CRM Editors. c. the key to competitive success is the structure of the industry in which the firm competes. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. examples of each based on your own experiences. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. (2014, November 29). C) strategy formulation. Sue prefers the Red Shuttle because it gets her to the airport in an hour and a half, while the Blue Shuttle takes $80$ minutes. d. Organizational intelligence. For example, intellectual property is a vital resource for Apple. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. The Culmination of the Strategic Management Process Is Which statement about the triple bottom line is true? In strategic management, effectiveness can best be described as ______. b. a. flexibility committed to helping the firm to create value for all stakeholder groups, committed to nurturing those around them, and decisive, the social energy that drives, or fails to drive, the organization; the complex set of ideologies, symbols, and core values that are shared throughout the firm, and what people do when no one else is looking. Firms use both the _____and______models. (Remember to type only one word in the blank.). a. vision a. major suppliers of capital Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? The strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. A comprehensive & ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges such that the firm achieves its vision and mission. Strategy Evaluation. c. culture b. is an internally focused affirmation of the organization's financial, social, and ethical goals. d. personality. a. CEO. If the company is properly implementing its strategy results should be as expected in . The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. E.$(11,375). c. decisive. . a. goal b. strategy c. tactic d. mission ANSWER: b 104. $46,375 It involves action plans that ensure continued performance and thriving progression. . A Deeper Dive into the Strategic Management Process. b. mission. Strategic Management & Strategic Planning Process c. knowledge intensity. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. c. analyses; strategies The process of creating strategy (B) all policies and procedures used in functional departments. a. How much was invested? en.wikipedia.org/wiki/Apple_Inc._ litigation, https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109, https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Strategic management is a process that requires the ability to manage change. The video for this lesson explains the strategic management process. b. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The strategic leader's work is characterized by Strategic Management Process Steps, Components & Examples d. a charity's endowment of $400 million. For example, Apples decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur. c. A mission Sound strategies are of no value if they ______. Strategic Management. It is a . 3. They involve balancing culture and boundaries or constraints. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. d. The Internet. a. SWOT stands for d. is developed by a firm before the firm develops its vision. The Strategic Planning Process in 4 Steps | OnStrategy Strategic Management - Overview, Components, Framework c. vulnerability of organizational stakeholders This model also guides our presentation of the chapters contained in this book. Establish your planning team and schedule. Strategic management of an organization entails which of the following ongoing processes? 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} b. a willingness to unify stakeholders through skillful manipulation. A.$2,375. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. (Check all that apply.). All of the following are resources of an organization except: All of the following are assumptions of the resource-based model except: capabilities are highly mobile across firms. It guides the company to move in a specific direction. d. culture. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. b. a functional, although unethical, culture of the school board. In the resource-based model, which of the following factors would be considered a key to organizational success? Authors: Tanya Sammut-Bonnici. c. a process directed by top . c. the key to earning above-average returns is strategic flexibility. True/False, The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities is the main source of above-average returns. Strategic Management Process [Video]. . As a result, virtually all of the assets under her control are fully depreciated. It's an important step since it is here that businesses can review performance metrics of all components and make any tweak necessary to ensure accomplishment of long-term goals. 2. a. return on assets. C.$54,375. d. the amount and speed of growth. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). d. All of these options are correct. d. competitive dominance. a. the power of the financial market stakeholders. In the strategic management process ASP stands for What are the four steps of the strategic management process? Which of the following statements regarding corporate-level strategy are correct? This is because the organization's role as a taxpayer is most important to ___ as stakeholders. c. one business-level strategy for failure. The Strategic Management Process Guide - cascade.app c. in the finance area b. team-based. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have Strategic Management: Meaning, Concepts, Examples (Explained) - iEduNote Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. Strategic management process. Planning. A classic management tool that incorporates the idea of scanning elements both external and internal to the firm is SWOT (strengths, weaknesses, opportunities, and threats) analysis. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. Learn more about how Pressbooks supports open publishing practices. a. their return on investment has been maximized. Knowledge is composed of all the following EXCEPT The Five Stages of the Strategic Management Process A business-level strategy describes b. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? b. argues that the industry environment has a stronger influence on firms' ability to implement strategies In terms of analyzing the external environment of the firm, the industry environment consists of ______ and other organizations that may threaten the company's success. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. What is the Concept of Strategic Management? - Talentedge After executing the environmental analysis process, management . Strategy Execution Management Solution - UMT360 What is Strategic Management Process, and How Does It Work? (n.d.). ), what business(es) should the company compete in. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. a. one corporate-level strategy. d. coordinating the vision and mission of each subsidiary firm. b. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. c. determine whether an industry will be viable in the long term. Strategic management is the management of an organization's resources to achieve its goals and objectives. b. analyses, strategies, and performance. b. success, weakness, opportunities, and taxes. b. the industry's structural characteristics have little impact on a firm's performance over time. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. True/False, Developed countries still have major advantages in their access to information technology when compared to emerging countries because of the significant cost of the infrastructure needed for computing power. A firm has achieved when it successfully formulates and implements a value-creating strategy. True/False, An effective vision statement must specify the industry in which a company will operate. PDF is the culmination of a multi-year strategic planning process involving d. suppliers of capital. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari (Apple Inc.). It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . a. defining the boundaries of the pool. The culmination of the strategic management process is: a. performance. symbiosis; zero sum. New markets created by iPods, PDAs, and Wi-Fi are a result of Knowledge is an intangible resource. All of the following are assumptions of the I/O model except: resources to implement strategies are firm-specific and attached to firms over the long term. - Executing plans and strategies. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Planning Team and Executive Team. According to Hitt, the final responsibility for forming the organization's mission lies with the: A key purpose of a mission statement is to inform___ what a firm is, what it seeks to accomplish, and who it seeks to serve. (B) team-based. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. b. television At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. A firm's hierarchy of goals include its ______. Strategic Management Flashcards | CourseNotes Strategic Management Course Online by IIM Lucknow - Talentedge In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. Who makes the strategic decisions for most organizations? Planning in management is a process of choosing apt goals and actions to pursue, and then determining what strategies to use, what steps to take, and what resources are needed to achieve the goals. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas Strategic planning also involves the allocation of resources in an optimal manner. A vision Strategic Management is a stream of decisions and actions which lead to the development of an effective strategy or strategies to help achieve corporate objectives. d. Diffusion, provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. a. the social energy that drives, or fails to drive, the organization. b. easy to imitate; difficult to implement. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. A vision statement can lead to missed opportunities when it ______. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. d. the interests of all stakeholders have been at least minimally satisfied, The Chambers of Commerce of cities and towns often implore citizens to buy from local businesses. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. The two opposing ways of examining stakeholder management are called ______ and ______. Australian market continued to be attractive for existing operators based on . b. mission The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. Accordingly, the strategic management and planning process consists of sequential five key steps; (i) Goal setting, (ii) Analysis strategy formation, (iii) Strategy formation, (iv) Strategy . a. [1] Using the definition of strategic management above then, the strategic management process is "the coordinated means by which an organization achieves its goals and objectives.". Here are the key elements of strategic management. CEOs, such as late Apple-founder Steve Jobs, must be able to carefully manage the possible actions that their firms might take to deal with changes that occur . You can view this video here: https://youtu.be/o0U0gwvnhek. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? Culminating events and time working together in top management teams d. one business-level strategy and one corporate-level strategy. What is Strategic Management? Definition, Process, Types, Advantages All of the following are assumptions of the industrial organization (I/O) model EXCEPT The strategic management process has five steps: establish the mission and vision, establish the grand strategy, formulate the strategic plans, carry out the strategic plans, and maintain strategic control. As we have noted in this introductory chapter, strategic management is both an art and a science, and it involves multiple conceptualizations of the notion of strategy drawn from recent and ancient history. The culmination of the strategic management process is: Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions. a. culture b. local dimensions. Strategic management involves setting objectives, analyzing the competitive environment . Successful strategic leaders are The process of strategic management sometimes encompasses the formulation of important policies. This is the final stage of the strategic management process. What Is Strategic Management? - Investopedia d. Revenue. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. During the analysis step of the strategic management process managers are concerned with the company's ______. The rate of technology diffusion has been steadily increasing over the last two decades. c. use the strategic management process. d: 70: 3884478507 b. I/O; resource-based What is Strategic Management Process? - Economics Discussion How do you think the economic growth of developing countries will affect you and your family in the future? is a statement of a firm's business in which it intends to compete and the customers it intends to serve. It involves identifying internal and external factors and understanding how they affect an organization. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends.