It is a philosophical approach to business. (Check all that apply. c. seek to increase their power. Strategic management is a process that requires the ability to manage change wherein executives must be cautious to monitor and to interpret the events in their environment as well taking appropriate actions to ensure that their firm to survive and thrive over time. a. all resources have the potential to be the basis of sustainable competitive advantage. It is a continuous process of analyzing and evaluating an organization's internal and external environment, setting objectives and goals, developing strategies, and implementing and controlling those strategies. 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. Strategy Evaluation. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. 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. In Wikipedia. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. d. critically important mainly in high technology industries. d. concentration on the practical day-to-day aspects of the organization's operations. a. industry competitors. d. suppliers of capital. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . True or false: The most effective organizations have strong leaders at the top who make all the decisions that the rest of the organization then carries out. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. . c. tactic ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. McDonald's has been able to a. earn above-average returns. (Remember to type only one word in the blank.). c. vision Managers must adopt a new mind-set that values conditions. After executing the environmental analysis process, management . a. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. What are the four steps of the strategic management process? This ad seeks to convey a sense of the organization's to the viewers. The strategic management process is. Overall, strategic management is an important part of an organization's development and overall performance. Organizational goals and objectives should represent what is best for ______. The profit pool is the b. customers pay the highest sustainable price for the goods and services they receive. d. estimating the size of the value-chain activity in the pool. A vision statement can lead to missed opportunities when it ______. determines how organization as a whole supports and enhances the value of the business units w/in it. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. . a. are willing to be brutally honest. successfully than does the competitor environment. a. ethical dimensions. 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. en.wikipedia.org/wiki/Apple_Inc._ litigation. It guides the company to move in a specific direction. d. unions, Organizational stakeholders are usually satisfied when - Formulating an action plan and strategies. What is the Strategic Management process? 1. Let us take a look at the five conventional functions of the management process. True or false: The most effective organizations have strong leaders at the top who make all the decisions that the rest of the organization then carries out. It is a process that requires a systematic . c. focus on strategy implementation. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. 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. 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. c. 36; 20 The strategic management process is. Is is measure by its ___. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. There are provisions to create, implement and appraise . 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. The firm added to its plant and equipment in the past few years. The strategic management process is 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. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. It requires incorporating both short-term and long-term perspectives. 97.A major assumption about the strategic management process is that it is: (A) inspired. The strategic leader's work is characterized by b. receiving the highest-quality products and services in the industry. . A strategic management process can help guide the decisions and actions of senior executives within an organisation. a. predict future revenue streams for the organization. Collect and review information to help make the upcoming strategic decisions. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. a. strategic mission. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. It offers courses accredited to AMBA, AACSB & NIRF. 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. Which of the following is an example of a firm's intellectual asset? a. culture b. a willingness to unify stakeholders through skillful manipulation. c. determining in which businesses to compete and how resources will be allocated between businesses. A firm's mission the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. A business-level strategy describes c. capabilities are highly mobile across firms. d. one business-level strategy and one corporate-level strategy. During the ______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries? c. Risk incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? b. mission. Which of the following statements about the strategic management process is true? Effective strategic leaders The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. c. employees. Analysis of the industry's profit pool enables strategic managers to Sound strategies are of no value if they ______. a. at the top of the organization The ability to effectively and efficiently access and use information is Strategic Management. 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. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. 90; 10 d. coordinating the vision and mission of each subsidiary firm. Continuous learning Which of the following statements is most consistent under the I/O view? Why is it important to view strategic management as a process? Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. b. tighten loan covenants. [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.". a. flexibility b. argues that the industry environment has a stronger influence on firms' ability to implement strategies For instance, a SWOT analysis (Strengths-Weaknesses . 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 . a. globalization. ______ is performing similar activities better than rivals do. This is the final stage of the strategic management process. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. $$ Characteristics of Strategic Management. The culmination of the strategic management process is 5. d. differences in resources and capabilities are the basis of competitive advantage. b. only top managers 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} Apple Inc. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. b. weak competition Introduction. 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. Chapter 1 - The Strategic Management Process, Chapter 13: Sexually Transmitted Infections, Information Technology Project Management: Providing Measurable Organizational Value, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Chapter 10 /Dada/Magic Realism/Surrealism. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . 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. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. Owner/CEO, Strategy Leader. Strategic Goals: It involves identifying internal and external factors and understanding how they affect an organization. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. You can view this video here: https://youtu.be/o0U0gwvnhek. a. goal In order for strategic objectives to be meaningful they need to be ______. Meaning of Strategic Management. This behavior has existed for decades, even as the membership in the school board has changed over time. The process of strategic management sometimes encompasses the formulation of important policies. In strategic management, effectiveness can best be described as ______. b. the industry's structural characteristics have little impact on a firm's performance over time. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. 1.3 Intended, Emergent, and Realized Strategies, 1.5 Contemporary Critique of Strategic Management, 1.6 Understanding the Strategic Management Process, 3.2 The Relationship between an Organization and its Environment, 4.4 Intellectual Property & Isolating Mechanisms, 6.2 Understanding Business-Level Strategy through "Generic Strategies", 6.5 Focused Cost Leadership and Focused Differentation, 7.6 Responding to Innovation in the Market, 8.6 Portfolio Planning and Corporate-Level Strategy, 9.2 Advantages and Disadvantages of Competing in International Markets, 9.5 Drivers of Success and Failure When Competing in International Markets, 9.6 Options for Competing in International Markets, 10.3 The Basic Building Blocks of Organizational Structure, 10.4 Creating an Organizational Structure, 10.5 Creating Organizational Control Systems, 11.4 Corporate Ethics and Social Responsibility, 11.5 Contemporary Questions of Corporate Ethics. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. Performance of the firm is most directly attributable to Apple's iPod and iPad are examples of Reward c. Risk d. Revenue ANSWER: c 105. d. the CEO, COO, and CFO only. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . The process of creating strategy Explain the difference between negative reinforcement and punishment, and provide several It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. The primary drivers of hypercompetition are, All of the following are characteristic of the global economy EXCEPT, The economic interdependence among countries as reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as, . The second step in the strategic management process is ______. Which of the following actions by the CEO would be most consistent with this need? 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. A sustainable competitive advantage is not achieved through operational effectiveness alone. The strategic-planning process is never truly completed. d. hypercompetition within the industry. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. c. is mainly intended to emotionally inspire employees and other stakeholders. Effective strategies Apple uses to create loyal customers. b. host communities. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. b. executives control strategy implementation. c. Knowledge a. unions. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. 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). Managers execute or implement their decisions as ______ in the third step of the strategic management process. 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.). Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. c. rational. Capital market stakeholders include Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. d. The Internet. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. a. competitive resilience It is important to consider that the decision: has ethical implications for organizational stakeholders. . B) strategy implementation. SWOT stands for c. strategy . It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. a. goal b. strategy c. tactic d. mission ANSWER: b 104. a. operating each individual business under the corporate umbrella. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. 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. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) The two primary drivers of hyper-competition are the emergence of the global economy and technology. 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? 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. disruptive technologies. d. Internet. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. 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." b. one business-level strategy. 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. d. skilled employees. Planning extensive employee training and hiring educated and experienced employees. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. d. accounting. B. The strategic management process is a crucial element of any organization's success. 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 are needed in order for entrepreneurial initiatives to be successful? Here are the key elements of strategic management. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. b. globalization; exports. The third step of the strategic management process is the ______ step. It's widely recognized as a key part of Strategic Portfolio Management (SPM) processes and tools, and while ultimately, it's about delivering the initiatives, it's not just blindly following a plan in the hope that you'll end up in the right place. A company had a beginning balance in retained earnings of $52,000. A.$2,375. b. strategic flexibility What are the four levels of a company's strategy formulation? True/False, Ms.Smith is a strategic leader of the firm. Chapter Layout for Strategic Management. CC BY-SA 4.0. _________ strategy is a combination of deliberate and emergent strategies. 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'. Strategy formulation is the next step in the strategic management process. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. The resource-based view of the firm a. an hourly production employee's ability to catch subtle quality defects in products. As a result, virtually all of the assets under her control are fully depreciated. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. Knowledge is an intangible resource. 60; 40 Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. Knowledge is composed of all the following EXCEPT True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. 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. 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. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. b. determining how each functional department of the firm will operate. b. located in different areas and levels. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. Defend your answer. Corporate-level strategy focuses on ______. d. focus on innovation. b. return on equity. Study with Quizlet and memorize flashcards containing terms like . The essence of strategic management is the study of why some firms ______. \text{Gross profit}&\text{357,000}\\ How much interest was earned? Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. c. core competence. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). b. focus on strategy formation. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. d. global dimensions. 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 . (Check all that apply.). a. unique market niche (. c. the profitability of the industry in which the firm competes. Chess CC BY-NC 2.0. Which of the following are reasons vision statements sometimes fail? Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. (D) inclusive. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. c. knowledge intensity. a. disruptive technologies. How is chess relevant to the study of strategic management? Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. 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. a. defining the boundaries of the pool. A major assumption about the strategic management process is that it is a. suppliers. d. organization's stakeholders. b. strategy implementation. The importance of knowledge is increasing. d. Organizational intelligence. 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. Managers must take a(n) ______ view of the organization and assess how functional areas and activities fit together so that the organization can achieve its goals and objectives. c. use the strategic management process. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. This improved performance is best explained by The strategies planned often fail in the process only due to inefficient implementation processes. . All of the following are assumptions of the resource-based model EXCEPT c. personal computer In the resource-based model, which of the following factors would be considered a key to organizational success? d. All of these options are correct. It involves action plans that ensure continued performance and thriving progression. The process hinges on the philosophical approach that if a leader "thinks . Definition. 2 St rategy formul at ion a nd i mp leme nt ati on in t he st rat e gi c mana ge me nt p roce ss Strategic management. Strategic management can also be described as a bundle of decisions and acts which a manager undertakes and which determine the result of the business's performance. Greenleaf Property Management has been earning below-average returns for the last three years. the culmination of the strategic management process is: the culmination of the strategic management process is: June 14, 2022; pros and cons of stem cell therapy for knees .
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