conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. 1. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. Who typically develops a firm's mission statement? c. the I/O model. Alfred Chandler, 1962. c. the profitability of the industry in which the firm competes. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. Performance of a firm is most directly attributable to: the profitable of the industry in which the firm competes, Firms use the five forces model of competition to identify the ___ of the industry. https://youtu.be/o0U0gwvnhek. b. predict growth in sales over the medium to long range. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. a. culture b. shareholders. 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. Which of the following statements about operational effectiveness are correct? This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). (Check all that apply.). . $$ a. power of each stakeholder 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. a. the core values of the school board as an organization. d. concentration on the practical day-to-day aspects of the organization's operations. The second step in the strategic management process is ______. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. 09.23.22 Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). b. a. ethical dimensions. 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. After executing the environmental analysis process, management . innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University True/False, Ms.Smith is a strategic leader of the firm. [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.". _________ strategy is a combination of deliberate and emergent strategies. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. d. hypercompetition within the industry. a. the social energy that drives, or fails to drive, the organization. a. unions. 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. Your company's core competencies. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. 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 . a. performance. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} The process of strategic management sometimes encompasses the formulation of important policies. d. All of these options are correct. ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? a. strategic competitiveness b. a permanently sustainable . 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. Strategic flexibility d. analysis. a. vision d. increasing the profitability of the firm. a. unique market niche d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. 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. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. What are the four levels of a company's strategy formulation? A company competing in a single product market has . (Check all that apply. d. government regulators. 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. a. size; number of competitors. How much was invested? d. personality. Match the type of leader (on the left) with the corresponding description (on the right). d. abilities; strategies. a. A capability c. avoid too much managerial hubris. To implement a strong strategy effectively, an experienced . The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. c. vulnerability of organizational stakeholders 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. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. c. hypercompetition; technology diffusion. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. 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 . d. hypercompetition. a. The culmination of the strategic management process is: a. performance. c. strategy formulation. 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. . Effective strategies Apple uses to create loyal customers. Organizational stakeholders are usually satisfied when, companies provide a dynamic, stimulating, and rewarding work environment. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. In the instance, the implementation . a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. a. an hourly production employee's ability to catch subtle quality defects in products. ), a destination that is driven by and evokes passion. d. emphasize profit maximization. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. a. operating each individual business under the corporate umbrella. a. ambiguous decision situations which make effective decisions difficult to determine. c. seek to increase their power. The essence of strategic management is the study of why some firms ______. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . True or false: The most effective organizations have strong leaders at the top who make all the decisions that the rest of the organization then carries out. True/False, The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities is the main source of above-average returns. Chapter Layout for Strategic Management. CC BY-SA 4.0. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". Retrieved from https://flic.kr/p/bPNmxi. The is the most critical criterion in prioritizing stakeholders. They involve balancing culture and boundaries or constraints. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. Pearce and Robinson, 1988. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Which of the following state the goals and intentions that help define a firm's competitive advantage? a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. 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. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. .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. c. the CEO, COO, and CFO only. Planning Team and Executive Team. Disruptive d. sustainable market niche. Knowledge is composed of all the following EXCEPT a. sell their stock. d. social value of each stakeholder. ), Which of the following are examples of business-level strategies? The two primary drivers of hyper-competition are the emergence of the global economy and technology. c. use the strategic management process. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. A company had a beginning balance in retained earnings of $52,000. the three processes are highly interdependent. c. culture Greenleaf will not be able to minimally satisfy all stakeholders. A strategic management process is an essential tool for any organization looking to optimize performance and reach success. Learn more about how Pressbooks supports open publishing practices. Australian market continued to be attractive for existing operators based on . 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. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. c. return on sales. b. a willingness to unify stakeholders through skillful manipulation. d. located at different levels, but only in the operating area of the organization, . c. personal computer a. are willing to be brutally honest. c. Sustainable competitive advantage Make Better business decisions: It is important to understand the difference between a great idea and a good idea. a. insight. Ideally, you already have some goal materials in place, including: Your vision statement. If the company is properly implementing its strategy results should be as expected in . It involves goals and objectives that an organization needs to achieve to be successful in the marketplace. b. total profits earned in an industry along all points of the value chain. 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? 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. c. the minimum required for survival in virtually any industry. d. The firm uses straight-line depreciation. The economic interdependence among countries is reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as: higher performance standards including quality and cost. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. Your long-term goals and/or BHAGs. b. shareholders d. estimating the size of the value-chain activity in the pool. The I/O model is grounded in 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'. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. Which of the following statements is most consistent under the I/O view? The steps for identifying the profit pools in an industry include all of the following EXCEPT 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 Deeper Dive into the Strategic Management Process. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. Which of the following are true of behavioral controls? d. competitive dominance. . \end{array} Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? d. in the operations area. a. The importance of knowledge is increasing. This activity is important because proper use of strategic management techniques . Which of the following are characteristics of a well-written organizational vision statement? d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. 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.). True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. E.$(11,375). B. a. organizational decision makers are rational and committed to acting in the firm's best interests. Which of the following are stakeholder groups that managers should consider when making decisions? c. re-centralize the responsibility for strategy to the CEO. c. speed c. determining in which businesses to compete and how resources will be allocated between businesses. b. focus on strategy formation. Readiness assessment. c. Global Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. For example, Apples decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. Meaning of Strategic Management. c. strength, wealth, organization, and taxes. Owner/CEO, Strategy Director. 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. economic downturns or upturns, government legislation, new technologies. c. information. local line leader -> have significant profit-and-loss responsibility. a. the power of the financial market stakeholders. . Performance of the firm is most directly attributable to b. located in different areas and levels. (B) team-based. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. The strategic-planning process is never truly completed. b. a functional, although unethical, culture of the school board. a. major suppliers of capital Corporate governance is the relationship among ______ in determining the direction and performance of corporations. 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. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. In the resource-based model, which of the following factors would be considered a key to organizational success? Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. d. suppliers of capital. one business-level strategy and one corporate-level strategy. Overall, strategic management is an important part of an organization's development and overall performance. vision. \text{Gross profit}&\text{357,000}\\ The process hinges on the philosophical approach that if a leader "thinks . The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. UMT360's Strategy Execution Management solution. d. the interests of all stakeholders have been at least minimally satisfied, The Chambers of Commerce of cities and towns often implore citizens to buy from local businesses. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? b. tighten loan covenants. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. b. mission. b. only top managers True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. Apple Inc. Strategic planning process is a systematic or emerged way of performing strategic planning in the organization through initial assessment, thorough analysis, strategy formulation, its implementation and evaluation. Chess CC BY-NC 2.0. 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. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. (Check all that apply.). 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. (Check all that apply. 3. Strategic management is directed toward a company's ______. 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. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. b. resources alone can be a source of sustainable competitive advantage. b. television a. industry competitors. 1. b. rapid technological diffusion. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. b. strategy implementation. A major assumption about the strategic management process is that it is d. A goal, Strategic leaders are 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, . Figure 1.7: Kindred Grey (2020). 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. c. focus on strategy implementation. b. all policies and procedures used in functional departments. Strategic Management. Which statement about the triple bottom line is true? c. disruptive technologies. a. located only at the executive level. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. In order to cope with hypercompetition, firms need to develop through continuous learning. (Check all that apply.). If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. Organizational culture refers to What are the four steps of the strategic management process? The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. 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. The culmination of the strategic management process is In Wikipedia. Tasks, timelines, budgets, etc. In the strategic management process ASP stands for The triple bottom line measures the performance of which of the following? (Check all that apply.). b. resources to implement strategies are firm-specific and attached to firms over the long-term. (C) rational. 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). 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 final responsibility for forming the organization's mission lies with the 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 requires the ability to manage change wherein executives must be cautious to monitor and to interpret the events in their environment as well taking appropriate actions to ensure that their firm to survive and thrive over time. The two opposing ways of examining stakeholder management are called ______ and ______. 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.
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