Learn more about how Pressbooks supports open publishing practices. 1. The strategic management process is. A strategy (B) all policies and procedures used in functional departments. 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. In order to cope with hyper competition, firms need to develop ___ through continuous learning. \end{array} Defining strategic management is important to build a cohesive and sustainable business model. The profit pool is the The firm added to its plant and equipment in the past few years. b. achieve strategic competitiveness. c. obtaining reliable products at the lowest possible price. a. only the CEO During the analysis step of the strategic management process managers are concerned with the company's ______. a. D) analysis. 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. A.$2,375. a. defining the boundaries of the pool. 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. Measure the progress by comparing the plan against actual results. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas d. All of these options are correct. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. c. the firm's actions to exploit its competitive advantage over rivals. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. 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." Afra Alnaimi. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. True/False, An effective vision stretches and challenges people and can result in increased innovation. b. determining how each functional department of the firm will operate. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . 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". c. a process directed by top . coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. b. predict growth in sales over the medium to long range. d. coordinating the vision and mission of each subsidiary firm. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. 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. strategic mission. a. unique market niche conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? b. the resource-based model. (Check all that apply.). Apple's iPod and iPad are examples of This is the final stage of the strategic management process. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. Overall, strategic management is an important part of an organization's development and overall performance. c. decisive. The process of creating strategy c. the minimum required for survival in virtually any industry. Strategic Management. a. one corporate-level strategy. The culmination of the strategic management process is a. ambiguous decision situations which make effective decisions difficult to determine. b. weak competition A sustainable competitive advantage is not achieved through operational effectiveness alone. d. competitive dominance. 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. Knowledge is an intangible resource. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. Capital market stakeholders include [1]. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Estimated Duration. - Formulating an action plan and strategies. b. receiving the highest-quality products and services in the industry. c. what people do when no one else is looking. c. Sustainable competitive advantage a. the power of the financial market stakeholders. Rationalize the denominator of each fraction and simplify. a. suppliers. Tasks, timelines, budgets, etc. d. strategy. Explain your reasoning. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. b. rapid technological diffusion. 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. 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. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. Figure 1.7: Kindred Grey (2020). Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. c. speed c. companies provide a dynamic, stimulating, and rewarding work environment. d. Internet. d. the firm's chief executive officer, A prominent national accounting firm runs television advertisements showing an accountant working alone late in the office on a client's project, while clenching a long-stemmed rose in his teeth and grinning ecstatically. The message of the ad is that this firm's accountants love their work. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Effective strategic leaders Your mission statement. (n.d.). d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The strategic management process begins with an understanding of strategy and performance. It requires incorporating both short-term and long-term perspectives. Planning. What is the Strategic Management process? Planning extensive employee training and hiring educated and experienced employees. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. d. total profits that can be divided among the competitors within an industry. Strategic Goals: 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. c. core competence. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. c. the key to competitive success is the structure of the industry in which the firm competes. Kick-Off Meeting: 1 hr. 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. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. a. the key factor in success is choosing the correct industry in which to compete. What other games might help teach strategic thinking. c. seek to increase their power. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. c. avoid too much managerial hubris. . d. inclusive. c. in the finance area The third step of the strategic management process is the ______ step. All of the following are assumptions of the industrial organization (I/O) model EXCEPT the culmination of the strategic management process is: the culmination of the strategic management process is: . What is the difference between strategy formulation and strategy implementation? b. the resources the firm possesses. It should seek to diversify. Which of the following are reasons vision statements sometimes fail? b. located in different areas and levels. Dissatisfied capital market stakeholders may Write the key term that best matches each description. (Check all that apply.). 2. d. organization's stakeholders. c. the key to earning above-average returns is strategic flexibility. ), Which of the following must a firm's strategy be consistent with? c. is mainly intended to emotionally inspire employees and other stakeholders. In the POLC framework, where does strategy formulation take place? Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. ), Business-level strategy is concerned with how companies ______. d. analysis. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. Determine organizational readiness. The industrial organization (I/O) model argues that a. . 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. d. All of these options are correct. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. d. a school board lacking in core competencies. strategic objectives. 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, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. 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. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. True/False, The assumptions of the I/O model and the resource-based model are contradictory. . Situation Analysis. c. one business-level strategy for failure. 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. determines how organization as a whole supports and enhances the value of the business units w/in it. a. Perpetual The process of strategic management sometimes encompasses the formulation of important policies. (Check all that apply.). a. vitally important at the point where a domestic firm enters the global market. a. located only at the executive level. business, corporate, international, and entrepreneurial. Income statement information for Thain Corporation is provided below. 1. b. mission. c. knowledge intensity. Your long-term goals and/or BHAGs. 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. Which of the following are needed in order for entrepreneurial initiatives to be successful? ____has become the second-largest economy in the world. d. ability, successes, and performance. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). Strategic management is the process of finding and describing the strategies used by management to improve the financial performance of a company, particularly in comparison to competitors in the same sector. 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, . d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. What are the four levels of a company's strategy formulation? In strategic management, effectiveness can best be described as ______. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Strategy implementation is the final stage of the process. d. unions, Organizational stakeholders are usually satisfied when Australian market continued to be attractive for existing operators based on . The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. The final responsibility for forming the organization's mission lies with the Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. a. strategic competitiveness b. a permanently sustainable . b. I/O; resource-based Prepare a vertical analysis of the income statement for Thain Corporation. (Check all that apply.). This involves developing specific strategies and actions. Firms don't apply for patents so that competitors can't access information in the patents. C ) rational . . Some of the steps involved in the process of strategic management:- 1. See the examples before. b. https://youtu.be/o0U0gwvnhek. The two opposing ways of examining stakeholder management are called ______ and ______. (B) team-based. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. Strategic management is a process that requires the ability to manage change. What is the Strategic Management process? (C) rational. Readiness assessment. a. ethical dimensions. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. d. expand the strategic responsibilities to all organizational stakeholders. Social responsibility is the expectation that businesses or individuals will strive to ______. d. Organizational intelligence. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. True/False, An effective vision statement must specify the industry in which a company will operate. Which statement about the triple bottom line is true? Which of the following statements about operational effectiveness are correct? Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? Who makes the strategic decisions for most organizations? Successful strategic leaders are A vision statement can lead to missed opportunities when it ______. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. 2. (Check all that apply. a. their return on investment has been maximized. d. concentration on the practical day-to-day aspects of the organization's operations. In the resource-based model, which of the following factors would be considered a key to organizational success? 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. SWOT stands for b. a firm's profit margin yields an above-average return to its capital market stakeholders. A company competing in a single product market has. 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. c. Risk 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. In the POLC framework, where does strategy implementation take place. A major assumption about the strategic management process is that it is This behavior reflects True/False, Ms.Smith is a strategic leader of the firm. A capability . a. the key factor in success is choosing the correct industry in which to compete. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. \text{Gross profit}&\text{357,000}\\ Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. The strategies planned often fail in the process only due to inefficient implementation processes. a. each firm is a unique collection of resources and capabilities. Managers are analyzing the firm's ______ when managers are studying its competitors. d: 70: 3884478507 In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. Companies have realized that failure to measure it can negatively affect the company and its community. It involves action plans that ensure continued performance and thriving progression. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. examples of each based on your own experiences. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. 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. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. B. c. personal computer c. vision In a diversified firm, corporate-level strategy is concerned with Firms use the five forces model to identify the of the industry as measured by its 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. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. d. The Internet. Generally speaking, product market stakeholders are satisfied when The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. a. disruptive technologies. a. vision Devise a strategy. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. c. Global True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . 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. In the strategic management process ASP stands for This improved performance is best explained by The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. 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. values. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. a. the core values of the school board as an organization. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. 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. The culmination of the strategic management process is: A) performance. 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. Litigation. The firm makes less efficient use of its assets than other firms. d. in the operations area. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. Strategic management of an organization entails which of the following ongoing processes? d. All of these options are correct, Strategic delegation helps a. pool of assets that is distributed to investors. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. a. insight. It is a philosophical approach to business. a. operating each individual business under the corporate umbrella. b. It is important to consider that the decision: has ethical implications for organizational stakeholders. c. competition; competency c. strength, wealth, organization, and taxes. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. To implement a strong strategy effectively, an experienced . Strategic Management Process [Video]. c. the interests of the firm's organizational stakeholders have been maximized. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. The second step in the strategic management process is ______. Strategic flexibility Environmental and internal scanning is the next stage in the process. 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. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. Strategy evaluation is the process by which the management assesses how well a chosen strategy has been implemented and how successful or otherwise the strategy is. Strategy formulation is the next step in the strategic management process. This pronouncement is most precisely a statement of organizational Explain the difference between negative reinforcement and punishment, and provide several The resource-based view of the firm Meaning of Strategic Management. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. b. expertise. The culmination of the strategic management process is a. performance. True/False, The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost leadership or diffusion strategy A firm's vision, mission, and strategic objectives form a hierarchy of . The strategic management process is a crucial element of any organization's success. The first step in the strategic management process is to evaluate where you're going, and why. Greenleaf will not be able to minimally satisfy all stakeholders. The triple bottom line measures the performance of which of the following? a. goal b. strategy c. tactic d. mission ANSWER: b 104. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. d. increasing the profitability of the firm. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. organizational versus individual rationality. 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. (Check all that apply. 60; 40 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'.

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