. It involves identifying internal and external factors and understanding how they affect an organization. Environmental Scanning 2. c. culture 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. Explain your reasoning. successfully than does the competitor environment. Analysis of the industry's profit pool enables strategic managers to True/False. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. Return Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. d. The Internet. It is a process that requires a systematic . The strategic management process is more than a set of rules to follow. c. host communities Determine organizational readiness. (Check all that apply. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. are established. 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, 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 c. knowledge intensity. A firm has achieved when it successfully formulates and implements a value-creating strategy. a. unions. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. a. industry competitors. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. a. performance. c. decisive. The is the most critical criterion in prioritizing stakeholders. c. profits that are accrued when a firm earns above-average returns. - Formulating an action plan and strategies. 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. Financial markets often place an emphasis on managers meeting ______ performance goals. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. Reward c. Risk d. Revenue ANSWER: c 105. is a capacity for a set of resources to perform a task or an activity in an integrative manner. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. a. c. The value of knowledge as a proportion of shareholder value is increasing. c. economies of scale a. disruptive technologies. Strategic management is a process that requires the ability to manage change. a. the social energy that drives, or fails to drive, the organization. a. values. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. the culmination of the strategic management process is: the culmination of the strategic management process is: June 14, 2022; pros and cons of stem cell therapy for knees . d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. This is the final stage of the strategic management process. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. Corporate-level strategy focuses on ______. b. committed to nurturing those around them. 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. ), what business(es) should the company compete in. Firms use both the _____and______models. c. the CEO, COO, and CFO only. 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? a. delegate strategic responsibilities to employees "closer to the action." b. strategy implementation. c. the I/O model. a. size; number of competitors. The strategic-planning process is never truly completed. a. Perpetual In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . https://youtu.be/o0U0gwvnhek. Study with Quizlet and memorize flashcards containing terms like . The culmination of the strategic management process is Managers are analyzing the firm's ______ when managers are studying its competitors. ______ 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. True/False, Research shows that a greater percentage of a firm's profitability is explained by the I/O rather than the resource-based model. Disruptive ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. d. Internet. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. one business-level strategy and one corporate-level strategy. .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. The goal of strategy implementation is to develop a permanent competitive advantage. a. the march of globalization. Social responsibility is the expectation that businesses or individuals will strive to ______. A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. Strategy formulation is the next step in the strategic management process. b. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. 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 . Generally speaking, product market stakeholders are satisfied when c. rational. c. employees. 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. strength, wealth, organization, and taxes. The video for this lesson explains the strategic management process. 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. d. easy to implement; unique. c. employees. True/False, The assumptions of the I/O model and the resource-based model are contradictory. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. It is a . a. the key factor in success is choosing the correct industry in which to compete. c. Knowledge c. capabilities are highly mobile across firms. en.wikipedia.org/wiki/Apple_Inc._ litigation. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. b. oil drilling rights in a promising region. a. strategic mission. SWOT stands for d. expand the strategic responsibilities to all organizational stakeholders. Strategic management involves setting objectives, analyzing the competitive environment . 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. a. the core values of the school board as an organization. How to develop a strategic management process. A.$2,375. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. 2. a. overload middle managers. a. competitive resilience Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. c. vulnerability of organizational stakeholders Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. In order to cope with hypercompetition, firms need to develop through continuous learning. What are the four levels of a company's strategy formulation? d. A goal, Strategic leaders are Planning extensive employee training and hiring educated and experienced employees. 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. The strategic management process is a crucial element of any organization's success. A vision statement can lead to missed opportunities when it ______. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is Strategic Management can be found in . The profit pool is the 90; 10 The firm added to its plant and equipment in the past few years. a. CEO. This perspective is known as ______. b. a willingness to unify stakeholders through skillful manipulation. Pearce and Robinson, 1988. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. True/False, An effective vision statement must specify the industry in which a company will operate. (. c. 36; 20 Strategic flexibility \end{array} Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. c. hypercompetition; technology diffusion. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. 1. 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. The strategic management process is (Remember to type only one word in the blank.). 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. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. (Check all that apply. A firm's mission b. strategy implementation. It improves the company's problem-solving and prevents capabilities. a. ethical dimensions. How is chess relevant to the study of strategic management? Efficiency, in terms of strategic management, can best be described as ______. c. A mission 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. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. c. personal computer A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. In strategic management, effectiveness can best be described as ______. 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. Learn more about how Pressbooks supports open publishing practices. Tasks, timelines, budgets, etc. Strategic planning aims to create . It is important to consider that the decision: has ethical implications for organizational stakeholders. a. industry; capability b. globalization; exports. a. operating each individual business under the corporate umbrella. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. The I/O model is grounded in 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). Is is measure by its ___. c. the interests of the firm's organizational stakeholders have been maximized. In Wikipedia. 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. 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 culmination of the strategic management process is: the culmination of the strategic management process is: . Strategy Evaluation. c. strategy formulation. b. shareholders True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. (B) all policies and procedures used in functional departments. a. Want to create or adapt books like this? 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. d. attractiveness; profitability. The process of implementation of strategy starts with the identification of key managerial tasks which form the basis for the creation of strategy starts with the identification of key Apple's iPod and iPad are examples of c. Risk Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. This behavior has existed for decades, even as the membership in the school board has changed over time. In Chapter 2 "Assessing Organizational . The importance of knowledge is increasing. d. analysis. statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage. Environmental and internal scanning is the next stage in the process. Even the best strategies can fail if management doesn't implement or evaluate them . The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. (Check all that apply.). True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. c. what people do when no one else is looking. a. culture a. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. b. host communities. The message of the ad is that this firm's accountants love their work. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . b. focus on strategy formation. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. 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. 1. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. You can view this video here: https://youtu.be/o0U0gwvnhek. 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. Which of the following are true of behavioral controls? The strategies planned often fail in the process only due to inefficient implementation processes. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University b. abilities; strengths 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 business-level strategy describes A strategy Effective strategies Apple uses to create loyal customers. 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. a. goal b. strategy c. tactic d. mission ANSWER: b 104. 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 . Readiness assessment. the key factor in success is choosing the correct industry in which to compete. Your company's core competencies. (Check all that apply. Litigation. a. the power of the financial market stakeholders. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. This pronouncement is most precisely a statement of organizational The resource-based view of the firm 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. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. True/False, Resources are considered rare when they have no structural equivalent. a. ambiguous decision situations which make effective decisions difficult to determine. d. All of these options are correct. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. d. inclusive. d. culture. All of the following are assumptions of the industrial organization (I/O) model EXCEPT 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. True or false: Intended strategy rarely survives in its original form. Managers must adopt a new mind-set that values conditions. Devise a strategy. 3. a. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. 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. predict growth in sales over the medium to long range. d. suppliers of capital. b. total profits earned in an industry along all points of the value chain. In the strategic management process ASP stands for Ideally, you already have some goal materials in place, including: Your vision statement. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. a. They involve balancing culture and boundaries or constraints. b. shareholders. b. shareholders. The process hinges on the philosophical approach that if a leader "thinks . . It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. d. personality. d. emphasize profit maximization. b. local dimensions. d. total profits that can be divided among the competitors within an industry. (Check all that apply.). (Check all that apply. b. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. d. hypercompetition. The culmination of the strategic management process is a. performance. shareholders, management, and the board of directors. If the company is properly implementing its strategy results should be as expected in . The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. Authors: Tanya Sammut-Bonnici. b. b. regardless of their location in the organization The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. d. competitive dominance. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. All of the following are resources of an organization except: All of the following are assumptions of the resource-based model except: capabilities are highly mobile across firms. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. 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. $$ If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. Definition. (D) inclusive. It involves goals and objectives that an organization needs to achieve to be successful in the marketplace. Inside CRM Editors. d. products that were not imitated by competitors. d. All of these options are correct, Strategic delegation helps c. the profitability of the industry in which the firm competes. 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. (Check all that apply.). a. insight. All businesses can benefit from strategic management to help them meet long-term objectives. It's the process of determining the decisions an organization should take. 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. Figure 1.8: Shirinsokhan, Mahmoudreza. The strategic leader's work is characterized by Companies have realized that failure to measure it can negatively affect the company and its community. ), Business-level strategy is concerned with how companies ______. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. c. a process directed by top . Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? . c. Sustainable competitive advantage The final responsibility for forming the organization's mission lies with the B. c. tactic True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . Strategic management is directed toward the organization's overall organizational ________ and ______. c. in the finance area Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). A strategic management process can help guide the decisions and actions of senior executives within an organisation. c. Global A company had a beginning balance in retained earnings of $52,000. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. In such a . $$ It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. 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. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. d. hypercompetition within the industry. A vision Name two benefits workers take for granted now that did not exist before labor organized. Which of the following statements is most consistent with the I/O view? . A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. 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. a. analyses, successes, and purposes. The process of strategic management sometimes encompasses the formulation of important policies. b. television Who makes the strategic decisions for most organizations? (Check all that apply.). On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. 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. The ___ is the most critical criterion in prioritizing stakeholders. The two primary drivers of hyper-competition are the emergence of the global economy and technology. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is: obtaining reliable products at the lowest possible price.
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