Formulation of strategies; Environment and organizational appraisal help to find out the opportunities and threats operating in the environment and the strengths and weaknesses of an organization in order to create a match between them. c. employees. 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. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. The essence of strategic management is the study of why some firms ______. Apple Inc. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. The culmination of the strategic management process is The two opposing ways of examining stakeholder management are called ______ and ______. c. use the strategic management process. local line leader -> have significant profit-and-loss responsibility. . c. vision. The culmination of the strategic management process is: Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions. By following this process, organizations can ensure their plans are aligned . The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. b. mission To implement a strong strategy effectively, an experienced . Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is The strategic management process is conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? ______ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies. Capital market stakeholders include 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 We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. d. social value of each stakeholder. The resource-based view of the firm A core competence 60; 40 The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. c. strategy formulation. How much was invested? (Check all that apply.). a. overload middle managers. c. tactic Kick-Off Meeting: 1 hr. Feedback may occur at all times to revise these actions. d. Revenue. Name two benefits workers take for granted now that did not exist before labor organized. A strategic management process is an essential tool for any organization looking to optimize performance and reach success. b. global competition. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. c. the firm's actions to exploit its competitive advantage over rivals. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. d. is developed by a firm before the firm develops its vision. c. decisive. Measure the progress by comparing the plan against actual results. b. urgency of satisfying each stakeholder Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. In the resource-based model, which of the following factors would be considered a key to organizational success? The importance of knowledge is increasing. In order to cope with hypercompetition, firms need to develop through continuous learning. Strategic Implementation is defined as "the process by which strategies and policies are put into action through the development of programs, budgets and procedures" (Strategy implementation, 2009, para.1). b. resources alone can be a source of sustainable competitive advantage. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Want to create or adapt books like this? c. avoid too much managerial hubris. c. Risk Explain Strategy formulation. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . a. Write the key term that best matches each description. c. strength, wealth, organization, and taxes. 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. 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. c. A mission d. emphasize profit maximization. ______ is performing similar activities better than rivals do. (Check all that apply.). d. skilled employees. 2. It requires incorporating both short-term and long-term perspectives. \end{array} d. easy to implement; unique. The second step in the strategic management process is ______. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. vision. Who makes the strategic decisions for most organizations? 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. unions, Organizational stakeholders are usually satisfied when a. the social energy that drives, or fails to drive, the organization. Authors: Tanya Sammut-Bonnici. 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? the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. Introduction. D) analysis. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. Alfred Chandler, 1962. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. b. predict growth in sales over the medium to long range. Strategic management process. c. employees. Owner/CEO, Strategy Director. 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 . . 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." 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. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. b. return on equity. a. inspired. This pronouncement is most precisely a statement of organizational 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. c. ability, strategies, and purposes. 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. the key factor in success is choosing the correct industry in which to compete. a. pool of assets that is distributed to investors. a. goal b. strategy c. tactic d. mission ANSWER: b 104. 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. Meaning of Strategic Management. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. b. strategy implementation. Knowledge is composed of all the following EXCEPT What is the Strategic Management process? The two primary drivers of hyper-competition are the emergence of the global economy and technology. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. d. suppliers of capital. b. A firm's vision, mission, and strategic objectives form a hierarchy of . It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . 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. Strategy Evaluation. a. the power of the financial market stakeholders. b. expertise. (Check all that apply. In the POLC framework, where does strategy implementation take place. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. c. personal computer _________ strategy is a combination of deliberate and emergent strategies. b. (C) rational. Greenleaf Property Management has been earning below-average returns for the last three years. b. globalization; exports. Environmental and internal scanning is the next stage in the process. b. mission. a. c. defining the competitors in the pool. d. ability, successes, and performance. b. estimating the overall size of the pool. Refer to the Terms to Know in the Summary & Study Guide on page 551. a method in which farmers move every one to three years to find better soil. \begin{array}{llr} d. increasing the profitability of the firm. Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. (n.d.). b. only top managers c. employees. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. Reward 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. 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. d. hypercompetition. This behavior has existed for decades, even as the membership in the school board has changed over time. Companies have realized that failure to measure it can negatively affect the company and its community. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. a. maximizing the firm's return on investment. 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. In this latter case, performance is the result of a rare event that is itself the culmination of a long and ongoing process of daily . C.$54,375. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The video for this lesson explains the strategic management process. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies (D) inclusive. In smaller, new venture firms, returns are sometimes measured in terms of Sound strategies are of no value if they ______. Corporate-level strategy focuses on ______. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. Strategy execution management is the evolution of traditional project delivery. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. d. focus on innovation. c. information. The three primary participants in corporate governance are the ______, management, and board of directors. b. easy to imitate; difficult to implement. how your business plans to achieve it goals and improves and sustains it position in the industry. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. a. c. rational. a. Perpetual The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to: delegate strategic responsibilities to employees "closer to the action". The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. 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. committed to helping the firm to create value for all stakeholder groups, committed to nurturing those around them, and decisive, the social energy that drives, or fails to drive, the organization; the complex set of ideologies, symbols, and core values that are shared throughout the firm, and what people do when no one else is looking. a. 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. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. Firms use the five forces model to identify the of the industry as measured by its It is important to emphasize that almost all strategic management process decisions have ______ because they are related to how a firm interacts with its stakeholders. c. core competence. c. obtaining reliable products at the lowest possible price. . Ideally, you already have some goal materials in place, including: Your vision statement. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. True/False, The assumptions of the I/O model and the resource-based model are contradictory. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. Effective strategic leaders d. attractiveness; profitability. b. a functional, although unethical, culture of the school board. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. D. $43,375. In the POLC framework, where does strategy formulation take place? A company competing in a single product market has c. strategy . To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. (Check all that apply.). (Check all that apply. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} 5. The strategic management process is more than a set of rules to follow. (B) team-based. Strategic Management Process [Video]. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? Overall, strategic management is an important part of an organization's development and overall performance. What is the difference between strategy formulation and strategy implementation? Knowledge is an intangible resource. Estimated Duration. 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'. ), Which of the following are examples of business-level strategies? True/False, The uniqueness of a firm's resources and capabilities is the basis for a firm's strategy and determines its ability to earn above-average returns under the I/O review. d. critically important mainly in high technology industries. c. an ability to identify the correct solutions to long-range problems. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. Greenleaf will not be able to minimally satisfy all stakeholders. Disruptive This activity is important because proper use of strategic management techniques . True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. 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. employees. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. b. television New markets created by iPods, PDAs, and Wi-Fi are a result of ____has become the second-largest economy in the world. organizational versus individual rationality. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. a. unions. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. symbiosis; zero sum. The strategic management process is. What is the Strategic Management process? According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. ), a destination that is driven by and evokes passion. Situation Analysis. Determine organizational readiness. a. strategic mission. Environmental Scanning 2. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. 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. a. one corporate-level strategy. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. Your long-term goals and/or BHAGs. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. $$ d. Organizational intelligence. 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. a. all resources have the potential to be the basis of sustainable competitive advantage. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. Which of the following statements about the strategic management process is true? c. culture b. weak competition d. in the operations area. c. hypercompetition; technology diffusion. A vision statement can lead to missed opportunities when it ______. C) strategy formulation. c. re-centralize the responsibility for strategy to the CEO. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. b. mission Continuous learning a. organizational decision makers are rational and committed to acting in the firm's best interests. This is the final stage of the strategic management process. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. 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. b. shareholders. A firm's hierarchy of goals include its ______. A.$2,375. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. a. operating each individual business under the corporate umbrella. 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. Sun Tzu's best-known work is The Art of War. The third step of the strategic management process is the ______ step. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. a. the core values of the school board as an organization. Apple's iPod and iPad are examples of Which of the following actions by the CEO would be most consistent with this need? Which of the following statements about organizational knowledge is correct? The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Your mission statement. The triple bottom line measures the performance of which of the following? 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. b. team-based. Generally speaking, product market stakeholders are satisfied when . d. The Internet. The strategic management process begins with an understanding of strategy and performance. Planning extensive employee training and hiring educated and experienced employees. c. focus on strategy implementation. The process of strategic management sometimes encompasses the formulation of important policies. Which of the following statements regarding corporate-level strategy are correct? Defend your answer. a. analyses; strengths The firm added to its plant and equipment in the past few years. 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. d. analysis. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. a. each firm is a unique collection of resources and capabilities. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. 3. c. what people do when no one else is looking. a. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. The process of creating strategy - Formulating an action plan and strategies. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. (Check all that apply. b. one business-level strategy. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. a. unique market niche d. A goal, Strategic leaders are It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. c. strategy formulation. Reward c. Risk d. Revenue ANSWER: c 105. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. d. All of these options are correct. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). (Remember to type only one word in the blank.). b. strategy implementation. Collect and review information to help make the upcoming strategic decisions. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Let us take a look at the five conventional functions of the management process. https://youtu.be/o0U0gwvnhek. - Resource analysis to select workforce and assign suitable tasks. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? 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.). c. political dimensions. This ad seeks to convey a sense of the organization's to the viewers. A strategy is typically a higher level, broad goal, without a lot of specifics. en.wikipedia.org/wiki/Apple_Inc._ litigation. b. shareholders 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. 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. This is because the organization's role as a taxpayer is most important to as stakeholders. c. companies provide a dynamic, stimulating, and rewarding work environment. b. customers pay the highest sustainable price for the goods and services they receive. 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. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. b. regardless of their location in the organization 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 flexibility Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing.
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