The strategic management process is. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . 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. Strategic flexibility the three processes are highly interdependent. 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. What is the difference between strategy formulation and strategy implementation? Strategic management is directed toward a company's ______. True/False, The resource-based model assumes that firms must have resources that are rare or costly to imitate to form a basis for competitive advantage. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. a. return on assets. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. d. The firm uses straight-line depreciation. a. culture Explain Strategy formulation. 2. New markets created by iPods, PDAs, and Wi-Fi are a result of 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. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. d. total profits that can be divided among the competitors within an industry. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. Firms use both the _____and______models. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. (Check all that apply.). . b. I/O; resource-based A retail outlet can attempt several remedies to improve profitability to meet the expectations of its ___ stakeholders, including closing stores, changing the top management team, and seeking potential buyers. A.$2,375. c. one business-level strategy for failure. $$ Which statement is true? How much interest was earned? Planning. 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 company competing in a single product market has To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Chapter Layout for Strategic Management. CC BY-SA 4.0. 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 . d. All of these options are correct. a. c. culture a. maximizing the firm's return on investment. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. The two primary drivers of hyper-competition are the emergence of the global economy and technology. In order to cope with hypercompetition, firms need to develop through continuous learning. d. personality. the key factor in success is choosing the correct industry in which to compete. d. hypercompetition within the industry. d. analysis. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. b. focus on strategy formation. Consequently, executives must be careful to monitor and to interpret the events in their environment, to take appropriate actions when change is needed, and to monitor their performance to ensure that their firms are able to survive and, it is hoped, thrive over time. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. Match the type of leader (on the left) with the corresponding description (on the right). d. social value of each stakeholder. a. competitive resilience a. 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. All of these options are correct, Strategic delegation helps University of Malta. - Executing plans and strategies. d. sustainable market niche. The ability to effectively and efficiently access and use information is c. personal computer 60; 40 c. employees. In the POLC framework, where does strategy implementation take place. examples of each based on your own experiences. How is chess relevant to the study of strategic management? 97.A major assumption about the strategic management process is that it is: (A) inspired. Organizational goals and objectives should represent what is best for ______. What other games might help teach strategic thinking. Owner/CEO, Strategy Director. 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.). ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? b. strategy implementation. c. strategy . The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. Strategic Management Process [Video]. d. ability, successes, and performance. C ) rational . b. shareholders. c. strategic power a. Performance of the firm is most directly attributable to Let us take a look at the five conventional functions of the management process. Situation Analysis. d: 70: 3884478507 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. statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage. (Check all that apply.). Feedback may occur at all times to revise these actions. b. mission. a. (Check all that apply.). Organizational stakeholders include a. only the CEO Readiness assessment. Match the strategic management process with its corresponding term. b. . What are the four levels of a company's strategy formulation? b. top-management team. The strategic management process is more than a set of rules to follow. Managers execute or implement their decisions as ______ in the third step of the strategic management process. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. c. determine whether an industry will be viable in the long term. c. Global a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. 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. 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 c. seek to increase their power. d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. ), Which of the following are examples of business-level strategies? When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. a. globalization. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Planning extensive employee training and hiring educated and experienced employees. a. inspired. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. c. strength, wealth, organization, and taxes. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. a. major suppliers of capital Continuous learning Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Which of the following are reasons vision statements sometimes fail? b. estimating the overall size of the pool. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. Measure the progress by comparing the plan against actual results. A capability 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. Write the key term that best matches each description. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. a. telephone 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. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . ), Business-level strategy is concerned with how companies ______. How to develop a strategic management process. d. organization's stakeholders. a. each firm is a unique collection of resources and capabilities. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. - Resource analysis to select workforce and assign suitable tasks. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. Firms use the five forces model to identify the of the industry as measured by its a. defining the boundaries of the pool. Which of the following statements is most consistent under the I/O view? In the POLC framework, where does strategy formulation take place? This activity is important because proper use of strategic management techniques . Which of the following statements is most consistent with the I/O view? b. predict growth in sales over the medium to long range. 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. d. suppliers of capital. c. employees. b. determining how each functional department of the firm will operate. 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. Disruptive b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. Who makes the strategic decisions for most organizations? To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and The second step in the strategic management process is ______. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. Strategy Evaluation. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. In order to cope with hyper competition, firms need to develop ___ through continuous learning. 3. a. sell their stock. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. Retrieved from https://flic.kr/p/bPNmxi. The process of implementation of strategy starts with the identification of key managerial tasks which form the basis for the creation of strategy starts with the identification of key (Check all that apply.). d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. a. strategic mission. d. a school board lacking in core competencies. Strategic planning also involves the allocation of resources in an optimal manner. b. global competition. a. industry; capability a. d. accounting. It is important to consider that the decision: has ethical implications for organizational stakeholders. c. speed Knowledge is an intangible resource. Apple Inc. Overall, strategic management is an important part of an organization's development and overall performance. d. a firm's resources, intent, and mission. Strategy execution management is the evolution of traditional project delivery. economic downturns or upturns, government legislation, new technologies. https://youtu.be/o0U0gwvnhek. (2014, November 29). The firm makes less efficient use of its assets than other firms. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. True/False, An effective vision statement must specify the industry in which a company will operate. d. skilled employees. Figure 1.8: Shirinsokhan, Mahmoudreza. d. focus on innovation. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. a. anthropology. b. total profits earned in an industry along all points of the value chain. Kick-Off Meeting: 1 hr. b. located in different areas and levels. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. (Check all that apply.). Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. Successful strategic leaders are b. only top managers When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n): In the resource-based model, which of the following factors would be considered a key organizational success? . d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. a. goal b. strategy c. tactic d. mission ANSWER: b 104. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. 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. For example, intellectual property is a vital resource for Apple. Chess CC BY-NC 2.0. 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? Effective strategies Apple uses to create loyal customers. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. The is the most critical criterion in prioritizing stakeholders. c. knowledge intensity. Strategic management requires that ______. 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. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. It improves the company's problem-solving and prevents capabilities. business, corporate, international, and entrepreneurial. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is b. tighten loan covenants. Environmental and internal scanning is the next stage in the process. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. All of the following are assumptions of the resource-based model EXCEPT b. Organizational culture refers to a. overload middle managers. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. 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 should seek to diversify. a. committed to helping the firm create value for all stakeholder groups. a. CEO. The I/O model is grounded in Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). The process hinges on the philosophical approach that if a leader "thinks . A business-level strategy describes a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. b. mission c. 36; 20 d. companies are paying the highest prices to suppliers, Product market stakeholders include b. one business-level strategy. c. determining in which businesses to compete and how resources will be allocated between businesses. d. government regulators. The essence of strategic management is the study of why some firms ______. 1. The strategic management provides a base for the organization on the basis of which progress can be measured and on the basis of the same, the employees can be compensated. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. d. hypercompetition. 2. Alfred Chandler, 1962. 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. c. The value of knowledge as a proportion of shareholder value is increasing. d. 20; 36. d. locate the most promising areas of an industry's value chain. a. strategic competitiveness b. a permanently sustainable . A firm's mission Managers are analyzing the firm's ______ when managers are studying its competitors. . (B) team-based. Here are the key elements of strategic management. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. Devise a strategy. In smaller, new venture firms, returns are sometimes measured in terms of Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. In Wikipedia. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. 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. Sustainable competitive advantage Strategic management involves setting objectives, analyzing the competitive environment . Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. 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 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. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization? Sound strategies are of no value if they ______. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to 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. 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. c. obtaining reliable products at the lowest possible price. The process of strategic management sometimes encompasses the formulation of important policies. c. the firm's actions to exploit its competitive advantage over rivals. c. strategy formulation. The strategic management process is. Identify your goals. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. Knowledge is composed of all the following EXCEPT In such a . The resource-based model of the firm argues that True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Strategic management process. d. a charity's endowment of $400 million. (Check all that apply.). c. is mainly intended to emotionally inspire employees and other stakeholders. Firms don't apply for patents so that competitors can't access information in the patents. Why is it important to view strategic management as a process? Dissatisfied capital market stakeholders may (Check all that apply.). c. economics. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. 1. can be identified when competitors are unable to duplicate or find it too costly to try to imitate, returns in excess of what an investor expects to earn from other investments with a similar level of risk, the formulation and implementation of a full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. d. coordinating the vision and mission of each subsidiary firm. c. capabilities are highly mobile across firms. Which statement about the triple bottom line is true? a. values. Prepare a vertical analysis of the income statement for Thain Corporation. a. performance. strategic objectives. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . Strategy implementation is the final stage of the process. c. in the finance area The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. 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 helps in analyzing the internal and external factors influencing an organization. (n.d.). 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. Your mission statement. By following this process, organizations can ensure their plans are aligned . b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. YouTube. A firm's vision, mission, and strategic objectives form a hierarchy of . A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. 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. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. c. a process directed by top . a. their return on investment has been maximized. This improved performance is best explained by c. tactic b. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. 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. Which of the following actions by the CEO would be most consistent with this need? 5. c. an ability to identify the correct solutions to long-range problems. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. . Use the simple interest formula method. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. Which of the following state the goals and intentions that help define a firm's competitive advantage? A company competing in a single product market has. a. b. globalization; exports. d. attractiveness; profitability. 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, . b. weak competition c. the I/O model. Strategic management is the process of defining and implementing an organization's strategy. Tasks, timelines, budgets, etc. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . The goal of the organization's ___ is to point the firm in the direction of where it would like to be in the years to come. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all.
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