Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. The process of creating strategy b. mission. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. Strategic Implementation is defined as "the process by which strategies and policies are put into action through the development of programs, budgets and procedures" (Strategy implementation, 2009, para.1). b. strategy implementation. 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. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. See the examples before. c. the CEO, COO, and CFO only. It's the process of determining the decisions an organization should take. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. d. hypercompetition. 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. All of the following are resources of an organization EXCEPT ), what business(es) should the company compete in. A company had a beginning balance in retained earnings of $52,000. 2. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. symbiosis; zero sum. d. hypercompetition within the industry. \text{Gross profit}&\text{357,000}\\ d. the amount and speed of growth. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. b. total profits earned in an industry along all points of the value chain. d. skilled employees. a. strategic competitiveness b. a permanently sustainable . Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. b. estimating the overall size of the pool. Which of the following statements about the strategic management process is true? This is because the organization's role as a taxpayer is most important to ___ as stakeholders. What other games might help teach strategic thinking. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. 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 a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. In the instance, the implementation . Identify your goals. 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. c. re-centralize the responsibility for strategy to the CEO. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. c. strategy formulation. c. speed c. In reporting her investment center's performance for the past 10 years, the manager of the Snack Division accounted for the depreciation of her division's assets by using an accelerated depreciation method allowed for tax purposes. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. SWOT stands for Is is measure by its ___. The essence of strategic management is the study of why some firms ______. In such a . Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. This activity is important because proper use of strategic management techniques . a. flexibility b. innovation c. speed d. All of these options are correct. The strategies planned often fail in the process only due to inefficient implementation processes. D) analysis. The culmination of the strategic management process is: a. performance. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. Planning. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. Situation Analysis. c. analyses; strategies d. competitive dominance. a. telephone c. vision. a. delegate strategic responsibilities to employees "closer to the action." b. abilities; strengths A firm's hierarchy of goals include its ______. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. Strategic management is directed toward a company's ______. Formulation of strategies; Environment and organizational appraisal help to find out the opportunities and threats operating in the environment and the strengths and weaknesses of an organization in order to create a match between them. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. a. defining the boundaries of the pool. E.$(11,375). In this latter case, performance is the result of a rare event that is itself the culmination of a long and ongoing process of daily . a. globalization. b. global competition. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. A customer can buy an iPod that plays music from iTunesall of which can be stored in Apples Mac computer (Inside CRM Editors, n.d.). a. pool of assets that is distributed to investors. determines how organization as a whole supports and enhances the value of the business units w/in it. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to: delegate strategic responsibilities to employees "closer to the action". The process of strategic management sometimes encompasses the formulation of important policies. b. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. B. The strategic management process begins with an understanding of strategy and performance. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. 09.23.22 1+x1x. a. Greenleaf will not be able to minimally satisfy all stakeholders. Strategic Management can be found in . It is important to emphasize that almost all strategic management process decisions have ______ because they are related to how a firm interacts with its stakeholders. c. The firm has a lot of old plant and equipment. b. I/O; resource-based True/False, Research shows that a greater percentage of a firm's profitability is explained by the I/O rather than the resource-based model. 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. The two opposing ways of examining stakeholder management are called ______ and ______. a. power of each stakeholder 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. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. c. economics. What are the four levels of a company's strategy formulation? \text{Sales}&\text{\$850,000}\\ The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. Study with Quizlet and memorize flashcards containing terms like . c. weak competitors in the industry. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. d. companies are paying the highest prices to suppliers, Product market stakeholders include 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. - Executing plans and strategies. c. tactic 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. It is a philosophical approach to business. d. abilities; strategies. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. Generally speaking, product market stakeholders are satisfied when: a firm achieves a balance between profit margins, costs paid to suppliers and prices set for customers, Before liquidating during a bankruptcy, a company will take several actions to try to satisfy its ____ stakeholders. d. All of these options are correct, Strategic delegation helps Let us take a look at the five conventional functions of the management process. Capital market stakeholders include 2. a. unions. b. committed to nurturing those around them. c. rare; costly to imitate. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? Strategy formulation is the next step in the strategic management process. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Knowledge is composed of all the following EXCEPT d. A goal, Strategic leaders are All of the following are assumptions of the resource-based model EXCEPT In Chapter 6 Selecting Business-Level Strategies, we discuss how selecting business-level strategies helps to provide firms with a recipe that can be followed that will increase the likelihood that their strategies will be successful. a. major suppliers of capital A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". Readiness assessment. Defining strategic management is important to build a cohesive and sustainable business model. c. employees. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . Efficiency, in terms of strategic management, can best be described as ______. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. (Check all that apply. c. companies provide a dynamic, stimulating, and rewarding work environment. c. 36; 20 Figure 1.8: Shirinsokhan, Mahmoudreza. 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. b. an important source of competitive advantage in virtually all industries. The mission of IIM Lucknow is to improve management systems with regard to business, industry and public services through pursuit of excellence in management education, research, consultancy and training. a. each firm is a unique collection of resources and capabilities. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. Social responsibility is the expectation that businesses or individuals will strive to ______. b. determining how each functional department of the firm will operate. a. inspired. There are provisions to create, implement and appraise . d. hypercompetition. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. Your company's core competencies. The profit pool is the ), Which of the following must a firm's strategy be consistent with? b. rapid technological diffusion. ), Business-level strategy is concerned with how companies ______. . Firms use both the ______ and ______ models. The goal of strategy implementation is to develop a permanent competitive advantage. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. a. an hourly production employee's ability to catch subtle quality defects in products. (B) team-based. True/False, The uniqueness of a firm's resources and capabilities is the basis for a firm's strategy and determines its ability to earn above-average returns under the I/O review. d. a school board lacking in core competencies. Strategic planning aims to create . b. receiving the highest-quality products and services in the industry. Strategic Management: Chapter 2 Multiple Choi, Barnes & Noble, Inc: Maintaining A Competitiv, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value. c. determining in which businesses to compete and how resources will be allocated between businesses. 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. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. c. strategy formulation. d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. Which statement about the triple bottom line is true? In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. . The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. a. the march of globalization. In Chapter 2 "Assessing Organizational . It improves the company's problem-solving and prevents capabilities. 97.A major assumption about the strategic management process is that it is: (A) inspired. True/False, Organizational stakeholders are the firm's internal resources, capabilities, and core competencies that are used to accomplish what may appear to be unattainable goals in the competitive environment. a. industry; capability c. political dimensions. Knowledge is an intangible resource. Performance of a firm is most directly attributable to: the profitable of the industry in which the firm competes, Firms use the five forces model of competition to identify the ___ of the industry. d. All of these options are correct. (Check all that apply. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. Strategic Goals: b. For instance, a SWOT analysis (Strengths-Weaknesses . c. competition; competency The external control view of leadership emphasizes the role of which of the following types of factors in the success or failure of a firm? As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. c. Risk True/False, When the firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. \end{array} b. weak competition Companies have realized that failure to measure it can negatively affect the company and its community. In strategic management, effectiveness can best be described as ______. . Firms use the five forces model to identify the of the industry as measured by its a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. are established. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The resource-based model of the firm argues that A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. A strategy d. intelligence. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Effective strategic leaders how your business plans to achieve it goals and improves and sustains it position in the industry. a. goal b. strategy c. tactic d. mission ANSWER: b 104. Sun Tzu's best-known work is The Art of War. The 5 stages of the strategic management process. https://youtu.be/o0U0gwvnhek. a. the key factor in success is choosing the correct industry in which to compete. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. (Check all that apply.). According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. (B) all policies and procedures used in functional departments. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. b. strategy implementation. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . . It guides the company to move in a specific direction. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and Strategic planning process is a systematic or emerged way of performing strategic planning in the organization through initial assessment, thorough analysis, strategy formulation, its implementation and evaluation. d. strengths, weaknesses, opportunities, and threats. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The ending balance in retained earnings equals: Organizational stakeholders include Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. .It is well known that the elected school board of a large city engages in unethical and illegal activities involving the awarding of major contracts. b. executives control strategy implementation. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. This is because the organization's role as a taxpayer is most important to as stakeholders. a. disruptive technologies. a. anthropology. . ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. c. A mission one business-level strategy and one corporate-level strategy. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. a. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. ), a destination that is driven by and evokes passion. Managers are analyzing the firm's ______ when managers are studying its competitors. (C) rational. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. $46,375 The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. Return b. d. located at different levels, but only in the operating area of the organization, . a. ethical dimensions. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. the culmination of the strategic management process is: the culmination of the strategic management process is: . (Check all that apply.). a. analyses; strengths d. total profits that can be divided among the competitors within an industry. The second step in the strategic management process is ______. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. Chapter 3 Evaluating the External Environment examines the topic of evaluating the external environment in detail, and Chapter 4 Evaluating the Internal Environment presents concepts and tools for managing firm resources. Owner/CEO, Strategy Leader. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. b. customers pay the highest sustainable price for the goods and services they receive. c. the CEO and top managers True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. For example, intellectual property is a vital resource for Apple. examples of each based on your own experiences. Use the simple interest formula method. c. strategic power (Check all that apply.). Greenleaf Property Management has been earning below-average returns for the last three years. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. Firms use both the _____and______models. 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. This improved performance is best explained by: Research shows that approximately ___ percent of a firm's profitability is explained by the industry in which it competes, whereas ___ percent is explained by the firm's characteristics and actions. The steps in the strategic management process include the seven - the development of vision and mission, external and internal environment analysis, establishing long-term objectives, generating, evaluating, and selecting strategies, implementation, and strategy evaluation and control. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. It is long-term in nature. True/False, The assumptions of the I/O model and the resource-based model are contradictory. Income statement information for Thain Corporation is provided below. b. innovation is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Strategic management process can be described as a set of managerial decisions and actions which determines the long-run direction and performance of the organization'. In the resource-based model, which of the following factors would be considered a key to organizational success? _________ strategy is a combination of deliberate and emergent strategies. [1]. Chapter Layout for Strategic Management. CC BY-SA 4.0. C) strategy formulation. c. the profitability of the industry in which the firm competes. Authors: Tanya Sammut-Bonnici. Strategic Management Process [Video]. Tasks, timelines, budgets, etc. The Jayhawks Rising Strategic Alignment Model is the culmination of a multi-year strategic planning process involving many groups and individuals who proposed hundreds of ideas for how to advance us toward our vision to be an exceptional learning community that lifts each member and advances society. For example, part of Apples success is due to its consistent focus on innovation and creativity that Steve Jobs described as similar to that of a start-up. Chapter 8 Selecting Corporate-Level Strategies focuses on selecting corporate-level strategies, and Chapter 9 Competing in International Markets presents possibilities for firms competing in international markets. d. locate the most promising areas of an industry's value chain. c. the key to competitive success is the structure of the industry in which the firm competes. c. vulnerability of organizational stakeholders d. the CEO, COO, and CFO only. b. mission a. organizational decision makers are rational and committed to acting in the firm's best interests. To implement a strong strategy effectively, an experienced . New markets created by iPods, PDAs, and WiFi are a result of: Henry Ford once said, "If I had asked people what they wanted, they would have said faster horses." The invention of the car is an early example of: A company's ability to acquire knowledge is: an important source of competitive advantage in all industries. a. industry competitors. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. The video for this lesson explains the strategic management process. 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. Which of the following is an example of a firm's intellectual asset? All of the following are assumptions of the industrial organization (I/O) model EXCEPT b. host communities. a. insight. McDonald's has been able to a. earn above-average returns. a. Perpetual b. all policies and procedures used in functional departments. All businesses can benefit from strategic management to help them meet long-term objectives. True/False, Ms.Smith is a strategic leader of the firm. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). c. knowledge intensity. Generally speaking, product market stakeholders are satisfied when c. defining the competitors in the pool. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. b. located in different areas and levels. Organizational stakeholders are usually satisfied when, companies provide a dynamic, stimulating, and rewarding work environment. It involves identifying internal and external factors and understanding how they affect an organization. b. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? Which of the following are true of behavioral controls? Explain the difference between negative reinforcement and punishment, and provide several a. values. Which of the following statements regarding corporate-level strategy are correct? 1. Which of the following are characteristics of a well-written organizational vision statement? b. analyses, strategies, and performance. \text{Cost of goods sold}&\text{493,000}\\ c. the I/O model. The importance of knowledge is increasing. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. The value of SWOT analysis parallels ideas from classic military strategists such as Sun Tzu, who noted the value of knowing yourself as well as your opponent. a. 1. a. only the CEO Rationalize the denominator of each fraction and simplify. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . areas, are relatively rare. Organizational culture refers to c. seek to increase their power. b. shareholders Managers execute or implement their decisions as ______ in the third step of the strategic management process.
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