Generally speaking, product market stakeholders are satisfied when Organizational stakeholders are usually satisfied when, companies provide a dynamic, stimulating, and rewarding work environment. b. strategic flexibility Managers are analyzing the firm's ______ when managers are studying its competitors. ), Which of the following are examples of business-level strategies? 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. Disruptive A.$2,375. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. a. culture b. television c. vision. a. one corporate-level strategy. a. pool of assets that is distributed to investors. 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. c. Knowledge a. flexibility b. innovation c. speed d. All of these options are correct. d. coordinating the vision and mission of each subsidiary firm. Your mission statement. ), Business-level strategy is concerned with how companies ______. a. strategy, wealth, organization, and threats. 5. (Check all that apply. ____has become the second-largest economy in the world. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. . 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. 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. c. strategic power Match the type of leader (on the left) with the corresponding description (on the right). True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. Firms use both the ______ and ______ models. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. a. In the POLC framework, where does strategy formulation take place? All businesses can benefit from strategic management to help them meet long-term objectives. Which statement is true? are established. It should seek to diversify. What is the Strategic Management process? It helps in analyzing the internal and external factors influencing an organization. Strategic management involves setting objectives, analyzing the competitive environment . (Check all that apply.). An assessment od strengths, weakness, opportunities and threats. d. Revenue. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. (Check all that apply.). The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. 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. c. the CEO and top managers c. The value of knowledge as a proportion of shareholder value is increasing. 09.23.22 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. a. vitally important at the point where a domestic firm enters the global market. a. strategic competitiveness b. a permanently sustainable . The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. 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. all policies and procedures used in functional departments. 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. Which of the following are stakeholder groups that managers should consider when making decisions? a. power of each stakeholder The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. d. hypercompetition within the industry. 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. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. c. information. 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. Corporate-level strategy focuses on ______. d. is developed by a firm before the firm develops its vision. The 5 stages of the strategic management process. All of the following are resources of an organization EXCEPT ______ 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. b. the resource-based model. It is a philosophical approach to business. d. expand the strategic responsibilities to all organizational stakeholders. Social responsibility is the expectation that businesses or individuals will strive to ______. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. C) strategy formulation. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. In order to cope with hyper competition, firms need to develop ___ through continuous learning. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. It is a . 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. d. ability, successes, and performance. the three processes are highly interdependent. A strategic management process can help guide the decisions and actions of senior executives within an organisation. D. $43,375. organizational versus individual rationality. - Evaluating efficiency and effectiveness . A strategic management process is an essential tool for any organization looking to optimize performance and reach success. Synonymous with business planning and strategic planning. b. return on equity. Write the key term that best matches each description. 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. Which of the following statements is most consistent under the I/O view? Figure 1.7: Kindred Grey (2020). c. re-centralize the responsibility for strategy to the CEO. b. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. 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. goal b. strategy c. tactic d. mission ANSWER: b 104. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. c. A mission is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Kick-Off Meeting: 1 hr. Dissatisfied capital market stakeholders may c. the key to earning above-average returns is strategic flexibility. a. globalization. YouTube. Apple's iPod and iPad are examples of Greenleaf Property Management has been earning below-average returns for the last three years. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. is a capacity for a set of resources to perform a task or an activity in an integrative manner. 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? b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. 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. d. products that were not imitated by competitors. (C) rational. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. The importance of knowledge is increasing. This behavior has existed for decades, even as the membership in the school board has changed over time. This perspective is known as ______. c. In reporting her investment center's performance for the past 10 years, the manager of the Snack Division accounted for the depreciation of her division's assets by using an accelerated depreciation method allowed for tax purposes. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. c. employees. Apple Inc. a. the march of globalization. The ability to effectively and efficiently access and use information is [1]. Study with Quizlet and memorize flashcards containing terms like . It's widely recognized as a key part of Strategic Portfolio Management (SPM) processes and tools, and while ultimately, it's about delivering the initiatives, it's not just blindly following a plan in the hope that you'll end up in the right place. A capability The strategic management process is a crucial element of any organization's success. Strategic management is directed toward a company's ______. The process of strategic management sometimes encompasses the formulation of important policies. Pearce and Robinson, 1988. 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 this latter case, performance is the result of a rare event that is itself the culmination of a long and ongoing process of daily . 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. c. strategy formulation. Definition. c. determine whether an industry will be viable in the long term. 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. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. Prepare a vertical analysis of the income statement for Thain Corporation. The strategic management process is. Strategic Management can be defined as a decision-making process that leads to the development of the strategic position, i.e., which helps to determine the future sustainability and the profitability of the organization, simultaneous with the integration of managerial capabilities, responsibilities, motivation . It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. 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. c. Risk This improved performance is best explained by c. rare; costly to imitate. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. Your company's core competencies. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. d. a firm's resources, intent, and mission. Strategic Goals: Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. . The company requires that all divisions generate a minimum return on invested assets of 8 percent. . _________ strategy is a combination of deliberate and emergent strategies. c. economies of scale 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. c. vision a. unique market niche Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. d. hypercompetition. Rationalize the denominator of each fraction and simplify. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. Situation Analysis. (2014, November 29). b. $46,375 Effective strategic leaders Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. 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. capabilities are highly mobile across firms. c. employees. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. Alfred Chandler, 1962. Efficiency, in terms of strategic management, can best be described as ______. c. the key to competitive success is the structure of the industry in which the firm competes. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Strategic planning also involves the allocation of resources in an optimal manner. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Want to create or adapt books like this? 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. a. industry; capability Knowledge is an intangible resource. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 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". Return b. top-management team. b. weak competition Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). A firm's mission a. are willing to be brutally honest. c. speed Reward (Check all that apply. d. companies are paying the highest prices to suppliers, Product market stakeholders include The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. 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. locate the most promising areas of an industry's value chain. During the analysis step of the strategic management process managers are concerned with the company's ______. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. A company competing in a single product market has. 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. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} c. obtaining reliable products at the lowest possible price. b. resources to implement strategies are firm-specific and attached to firms over the long-term. (D) inclusive. b. customers pay the highest sustainable price for the goods and services they receive. It guides the company to move in a specific direction. Strategy implementation is the final stage of the process. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. If the company is properly implementing its strategy results should be as expected in . Afra Alnaimi. 3. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. c. ability, strategies, and purposes. A firm has achieved when it successfully formulates and implements a value-creating strategy. As a result, virtually all of the assets under her control are fully depreciated. d. critically important mainly in high technology industries. . Planning. Income statement information for Thain Corporation is provided below. How much was invested? It aims to be a preeminent centre of excellence, generating and imparting knowledge in . 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 systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. en.wikipedia.org/wiki/Apple_Inc._ litigation. 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. Information Technology Project Management: Providing Measurable Organizational Value, Operations Management: Sustainability and Supply Chain Management, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine. In order for strategic objectives to be meaningful they need to be ______. Characteristics of Strategic Management. Companies have realized that failure to measure it can negatively affect the company and its community. b. urgency of satisfying each stakeholder Which of the following state the goals and intentions that help define a firm's competitive advantage? The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. The steps for identifying the profit pools in an industry include all of the following EXCEPT c. seek to increase their power. It requires incorporating both short-term and long-term perspectives. (Check all that apply.). (n.d.). Strategic management is the management of an organization's resources to achieve its goals and objectives. d. sustainable market niche. True/False, Ms.Smith is a strategic leader of the firm. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. c. defining the competitors in the pool. The three primary participants in corporate governance are the ______, management, and board of directors. Planning extensive employee training and hiring educated and experienced employees. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. The strategic management process is The goal of strategy implementation is to develop a permanent competitive advantage. successfully than does the competitor environment. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. a. the power of the financial market stakeholders. 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. 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. a. overload middle managers. 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. b. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. c. a process directed by top . (Check all that apply. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. (Check all that apply.). b. the resources the firm possesses. a. flexibility It is important to consider that the decision: has ethical implications for organizational stakeholders. d. analysis. . c. analyses; strategies a. Perpetual Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. Strategic management process. d. strengths, weaknesses, opportunities, and threats. 90; 10 d. The firm uses straight-line depreciation. ______ is performing similar activities better than rivals do. b. shareholders 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. strategic mission. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. The two primary drivers of hyper-competition are the emergence of the global economy and technology. Defend your answer. Ideally, you already have some goal materials in place, including: Your vision statement. c. hypercompetition; technology diffusion. Which of the following is an example of a firm's intellectual asset? b. resources alone can be a source of sustainable competitive advantage. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. a. each firm is a unique collection of resources and capabilities. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. Financial markets often place an emphasis on managers meeting ______ performance goals. B) strategy implementation. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. a. the core values of the school board as an organization. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? The culmination of the strategic management process is: performance Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. 60; 40 c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. c. vulnerability of organizational stakeholders True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. 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. Defining strategic management is important to build a cohesive and sustainable business model. 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. d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. The strategic management process begins with an understanding of strategy and performance. d. skilled employees. The rate of technology diffusion has been steadily increasing over the last two decades. c. one business-level strategy for failure. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. b. global competition. 1. SWOT stands for Strategic management is the process of defining and implementing an organization's strategy. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. . Explain Strategy formulation. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. Environmental Scanning 2. a. values. b. shareholders. b. rapid technological diffusion. It improves the company's problem-solving and prevents capabilities. d. in the operations area. Firms use the five forces model to identify the of the industry as measured by its 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. a. inspired. Chapter Layout for Strategic Management. CC BY-SA 4.0. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. ), a destination that is driven by and evokes passion. Owner/CEO, Strategy Leader. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. a. suppliers. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. c. determining in which businesses to compete and how resources will be allocated between businesses. a. competitive resilience Analysis of the industry's profit pool enables strategic managers to True/False, Developed countries still have major advantages in their access to information technology when compared to emerging countries because of the significant cost of the infrastructure needed for computing power. It is a continuous process of analyzing and evaluating an organization's internal and external environment, setting objectives and goals, developing strategies, and implementing and controlling those strategies. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. 3. c. tactic By following this process, organizations can ensure their plans are aligned . c. culture d. unions, Organizational stakeholders are usually satisfied when Which of the following statements is most consistent with the I/O view? ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? A company had a beginning balance in retained earnings of $52,000. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income.