b. is an internally focused affirmation of the organization's financial, social, and ethical goals. 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. The rate of technology diffusion has been steadily increasing over the last two decades. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. B) strategy implementation. d. intelligence. c. rare; costly to imitate. $$ Chapter 01 Strategic Management and Competitiveness Corporate governance is the relationship among ______ in determining the direction and performance of corporations. Firms use both the ______ and ______ models. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. The resource-based model of the firm argues that Identify your goals. Understanding the Strategic Management Process Key Elements of Strategic Management | FounderJar (2014, November 29). d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. areas, are relatively rare. Firms use both the _____and______models. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . a. insight. Strategic Management - THE STRATEGIC MANAGEMENT PROCESS Planning Ahead a. sell their stock. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. This model also guides our presentation of the chapters contained in this book. (Check all that apply. The two opposing ways of examining stakeholder management are called ______ and ______. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Strategic Management Chap 1 Flashcards | Quizlet This ad seeks to convey a sense of the organization's to the viewers. d. is developed by a firm before the firm develops its vision. a. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. c. defining the competitors in the pool. a. goal b. strategy c. tactic d. mission ANSWER: b 104. The message of the ad is that this firm's accountants love their work. Strategic Management can be found in . A firm's vision, mission, and strategic objectives form a hierarchy of . As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Strategic Management. The firm added to its plant and equipment in the past few years. b. global competition. a. the power of the financial market stakeholders. d. increasing the profitability of the firm. What is Strategic Management? definition, process and importance The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. b. success, weakness, opportunities, and taxes. a. power of each stakeholder Planning extensive employee training and hiring educated and experienced employees. d. ability, successes, and performance. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". A strategic management process is an essential tool for any organization looking to optimize performance and reach success. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. Firms use the five forces model to identify the of the industry as measured by its Collect and analyze information. 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. Definition, Examples and Features of Strategic Management Name two benefits workers take for granted now that did not exist before labor organized. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. What is Strategic Management? Definition, Process, Types, Advantages If the company is properly implementing its strategy results should be as expected in . Which of the following statements regarding corporate-level strategy are correct? a. are willing to be brutally honest. 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. b. strategy d. hypercompetition. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. a. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. Which of the following statements is most consistent under the I/O view? Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. c. a process directed by top management with input from other stakeholders that seeks to achieve above- average returns for investors through effective use of the organization's resources. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. b. a firm's profit margin yields an above-average return to its capital market stakeholders. d. a firm's resources, intent, and mission. c. employees. c. in the finance area Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. Strategic Management - Overview, Components, Framework After executing the environmental analysis process, management . Effective strategic leaders Firms don't apply for patents so that competitors can't access information in the patents. c. vision. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. Feedback may occur at all times to revise these actions. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. c. strategy formulation. Which of the following is an example of a firm's intellectual asset? b. predict growth in sales over the medium to long range. c. the interests of the firm's organizational stakeholders have been maximized. True or false: Intended strategy rarely survives in its original form. See the examples before. Learn more about how Pressbooks supports open publishing practices. Strategic management is a process that requires the ability to manage change. Which statement is true? https://youtu.be/o0U0gwvnhek. Your mission statement. 2. $$ For example, intellectual property is a vital resource for Apple. Ideally, you already have some goal materials in place, including: Your vision statement. c. culture To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. The strategic management process is more than a set of rules to follow. a. the core values of the school board as an organization. shareholders, management, and the board of directors. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. Strategic Management Process Steps And It's Components 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. \text{Gross profit}&\text{357,000}\\ 1. a. defining the boundaries of the pool. b. psychology. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. a. flexibility Apple's iPod and iPad are examples of \end{array} a. their return on investment has been maximized. (Check all that apply.). c. employees. Overall, strategic management is an important part of an organization's development and overall performance. c. core competence. Successful strategic leaders are For instance, a SWOT analysis (Strengths-Weaknesses . ____has become the second-largest economy in the world. Organizational culture refers to \begin{array}{llr} Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. a. ambiguous decision situations which make effective decisions difficult to determine. d. estimating the size of the value-chain activity in the pool. A.$2,375. c. the profitability of the industry in which the firm competes. (B) all policies and procedures used in functional departments. Owner/CEO, Strategy Director. c. determine whether an industry will be viable in the long term. c. determining in which businesses to compete and how resources will be allocated between businesses. The company requires that all divisions generate a minimum return on invested assets of 8 percent. b. achieve strategic competitiveness. McDonald's has been able to a. earn above-average returns. 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. committed to helping the firm create value for all stakeholder groups. Strategic management of an organization entails which of the following ongoing processes? c. decisive. Strategic Management Process - Meaning, Steps and Components d. the CEO, COO, and CFO only. Which of the following are stakeholder groups that managers should consider when making decisions? 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. d. skilled employees. (Check all that apply.). Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. Strategic management is the process of defining and implementing an organization's strategy. A strategic management process can help guide the decisions and actions of senior executives within an organisation. 90; 10 (Check all that apply.). b. weak competition A strategy is typically a higher level, broad goal, without a lot of specifics. b. host communities. d. unions, Organizational stakeholders are usually satisfied when Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Prepare a vertical analysis of the income statement for Thain Corporation. . A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. All of the following are resources of an organization EXCEPT 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. a. ethical dimensions. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. Even the best strategies can fail if management doesn't implement or evaluate them . ______ is performing similar activities better than rivals do. Performance of the firm is most directly attributable to 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. Apple Inc. 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. How to develop a strategic management process. 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. the key factor in success is choosing the correct industry in which to compete. a. anthropology. c. economies of scale a. 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 statements about organizational knowledge is correct? a. Reward c. Risk d. Revenue ANSWER: c 105. c. the lack of an organizational mission for the school board. SWOT stands for Your company's core competencies. How is chess relevant to the study of strategic management? 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. the amount and speed of growth. 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. Strategic Management Process - Your Article Library 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? What are the four levels of a company's strategy formulation? (Check all that apply. d. All of these options are correct. b. the industry's structural characteristics have little impact on a firm's performance over time. d. personality. The 5 stages of the strategic management process. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. 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. [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.". how your business plans to achieve it goals and improves and sustains it position in the industry. (n.d.). Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). d. one business-level strategy and one corporate-level strategy. What is a Strategic Management Process? | Business Management & Marketing What Is Strategic Management? - Investopedia .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. d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. business, corporate, international, and entrepreneurial. The two opposing ways of examining stakeholder management are called ______ and ______. d. critically important mainly in high technology industries. 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. Strategic Management: Meaning, Concepts, Examples (Explained) - iEduNote Who typically develops a firm's mission statement? Effective strategies Apple uses to create loyal customers. Strategy Evaluation. en.wikipedia.org/wiki/Apple_Inc._ litigation. 1.2 What is Strategic Management? - Strategic Management - Virginia Tech c. The value of knowledge as a proportion of shareholder value is increasing. Return BUS400 Flashcards | Quizlet b. mission b. only top managers Readiness assessment. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. b. easy to imitate; difficult to implement. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. Strategic flexibility C) strategy formulation. 1. Study with Quizlet and memorize flashcards containing terms like . 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. Organizational stakeholders include Tasks, timelines, budgets, etc. a. unique market niche 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. c. Global Return b. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. a. globalization. (D) inclusive. ), Which of the following are examples of business-level strategies? Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. c. the CEO and top managers In strategic management, effectiveness can best be described as ______. 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.
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