b. oil drilling rights in a promising region. a. industry competitors. b. shareholders (Check all that apply.). True/False, Ms.Smith is a strategic leader of the firm. . Make Better business decisions: It is important to understand the difference between a great idea and a good idea. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. After executing the environmental analysis process, management . 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. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). 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. You can view this video here: https://youtu.be/o0U0gwvnhek. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? To implement a strong strategy effectively, an experienced . A strategy is typically a higher level, broad goal, without a lot of specifics. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. d. attractiveness; profitability. d. unions, Organizational stakeholders are usually satisfied when Strategic management can also be described as a bundle of decisions and acts which a manager undertakes and which determine the result of the business's performance. The triple bottom line measures the performance of which of the following? (. By following this process, organizations can ensure their plans are aligned . d. expand the strategic responsibilities to all organizational stakeholders. c. strength, wealth, organization, and taxes. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. (Check all that apply.). The resource-based view of the firm True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. (Check all that apply.). d. social value of each stakeholder. b. c. determine whether an industry will be viable in the long term. b. strategic flexibility Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. b. team-based. A business-level strategy describes c. seek to increase their power. Performance of the firm is most directly attributable to c. Knowledge This improved performance is best explained by 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. 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. It's the process of determining the decisions an organization should take. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Which of the following is an example of a firm's intellectual asset? Return b. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Which of the following are true of behavioral controls? 3. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. a. CEO. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). d. global dimensions. Environmental and internal scanning is the next stage in the process. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The message of the ad is that this firm's accountants love their work. Generally speaking, product market stakeholders are satisfied when: a firm achieves a balance between profit margins, costs paid to suppliers and prices set for customers, Before liquidating during a bankruptcy, a company will take several actions to try to satisfy its ____ stakeholders. Corporate-level strategy focuses on ______. During the analysis step of the strategic management process managers are concerned with the company's ______. Learn more about how Pressbooks supports open publishing practices. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Feedback may occur at all times to revise these actions. b. a functional, although unethical, culture of the school board. Planning Team and Executive Team. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. It is long-term in nature. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. d. The Internet. c. strategy formulation. a. industry; capability Greenleaf Property Management has been earning below-average returns for the last three years. - Executing plans and strategies. b. the three processes are highly interdependent. b. executives control strategy implementation. $$ (Remember to type only one word in the blank.). shareholders, management, and the board of directors. a. overload middle managers. The first step in the strategic management process is to evaluate where you're going, and why. Knowledge is composed of all the following EXCEPT b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. ______ is performing similar activities better than rivals do. (2014, November 29). b. an important source of competitive advantage in virtually all industries. In the instance, the implementation . b. success, weakness, opportunities, and taxes. a. vision b. the industry's structural characteristics have little impact on a firm's performance over time. organizational versus individual rationality. In smaller, new venture firms, returns are sometimes measured in terms of b. weak competition Successful strategic leaders are Strategic planning aims to create . It determines which business(es) should be in the company's portfolio. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. The strategic management process begins with an understanding of strategy and performance. Firms use both the _____and______models. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. c. one business-level strategy for failure. d. located at different levels, but only in the operating area of the organization, . c. vision (n.d.). Knowledge is an intangible resource. Disruptive Organizational culture refers to Managers must adopt a new mind-set that values conditions. Name two benefits workers take for granted now that did not exist before labor organized. What other games might help teach strategic thinking. b. urgency of satisfying each stakeholder A firm's mission 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 . Consequently, executives must be careful to monitor and to interpret the events in their environment, to take appropriate actions when change is needed, and to monitor their performance to ensure that their firms are able to survive and, it is hoped, thrive over time. The process of creating strategy 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. analysis. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. c. rare; costly to imitate. b. resources to implement strategies are firm-specific and attached to firms over the long-term. a. a. analyses; strengths As a result, virtually all of the assets under her control are fully depreciated. b. predict growth in sales over the medium to long range. ), Which of the following must a firm's strategy be consistent with? The strategic management process is more than a set of rules to follow. c. the key to competitive success is the structure of the industry in which the firm competes. d: 70: 3884478507 a. located only at the executive level. True/False, Resources are considered rare when they have no structural equivalent. b. local dimensions. b. rapid technological diffusion. c. economics. a. delegate strategic responsibilities to employees "closer to the action." b. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. Introduction. 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. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari (Apple Inc.). d. in the operations area. University of Malta. 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 essence of strategic management is the study of why some firms ______. A firm has achieved when it successfully formulates and implements a value-creating strategy. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. d. estimating the size of the value-chain activity in the pool. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. (Check all that apply.). a. the core values of the school board as an organization. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. Environmental Scanning 2. (Check all that apply.). What is the Strategic Management process? c. employees. b. all policies and procedures used in functional departments. b. psychology. a. defining the boundaries of the pool. b. mission. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. What are the four steps of the strategic management process? The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. It offers courses accredited to AMBA, AACSB & NIRF. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. It is a . An assessment od strengths, weakness, opportunities and threats. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. Generally speaking, product market stakeholders are satisfied when d. locate the most promising areas of an industry's value chain. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? a. flexibility True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. c. re-centralize the responsibility for strategy to the CEO. 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. b. achieve strategic competitiveness. 09.23.22 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. 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 Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. Estimated Duration. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? True or false: Intended strategy rarely survives in its original form. Determine organizational readiness. The Snack Division's operating margin for the year was $6.5\$ 6.5$6.5 million, during which time its average invested capital was $50\$ 50$50 million. a. insight. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. 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. What is the Strategic Management process? Use the simple interest formula method. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. (B) all policies and procedures used in functional departments. In the POLC framework, where does strategy implementation take place. ), Which of the following are examples of business-level strategies? The strategic management process is. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. Strategic management is the process of defining and implementing an organization's strategy. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. [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.". Capital market stakeholders include [1]. (Check all that apply. Meaning of Strategic Management. This is the final stage of the strategic management process. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. a. the businesses in which the company intends to compete. ), a destination that is driven by and evokes passion. Sun Tzu's best-known work is The Art of War. c. strategy formulation. b. receiving the highest-quality products and services in the industry. b. inspiring vision. Identify your goals. Devise a strategy. Strategy formulation is the next step in the strategic management process. In the POLC framework, where does strategy formulation take place? ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. a. strategic mission. 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. c. the lack of an organizational mission for the school board. b. innovation 2. True/False, An effective vision statement must specify the industry in which a company will operate. How do you think the economic growth of developing countries will affect you and your family in the future? The steps for identifying the profit pools in an industry include all of the following EXCEPT Corporate governance is the relationship among ______ in determining the direction and performance of corporations. c. employees. YouTube. 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. The third step of the strategic management process is the ______ step. b. only top managers d. ability, successes, and performance. Definition. b. one business-level strategy. 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. personality. 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. c. companies provide a dynamic, stimulating, and rewarding work environment. 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. \text{Sales}&\text{\$850,000}\\ c. analyses; strategies d. the amount and speed of growth. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) d. suppliers of capital. b. mission d. competitive dominance. 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". b. McDonald's has been able to a. earn above-average returns. Which of the following state the goals and intentions that help define a firm's competitive advantage? This is because the organization's role as a taxpayer is most important to as stakeholders. Which of the following are needed in order for entrepreneurial initiatives to be successful? a. organizational decision makers are rational and committed to acting in the firm's best interests. This pronouncement is most precisely a statement of organizational True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. A sustainable competitive advantage is not achieved through operational effectiveness alone. Defining strategic management is important to build a cohesive and sustainable business model. a. culture c. a process directed by top . Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. Strategy implementation is the final stage of the process. The process hinges on the philosophical approach that if a leader "thinks . Sound strategies are of no value if they ______. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. d. easy to implement; unique. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Strategy execution management is the evolution of traditional project delivery. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. This behavior reflects A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. Strategic management process. All of the following are assumptions of the industrial organization (I/O) model EXCEPT The ability to effectively and efficiently access and use information is 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. at the top of the organization Owner/CEO, Strategy Director. Dissatisfied capital market stakeholders may a. analyses, successes, and purposes. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. A capability (B) team-based. c. capabilities are highly mobile across firms. c. The firm has a lot of old plant and equipment. A strategic management process can help guide the decisions and actions of senior executives within an organisation. d. government regulators. C) strategy formulation. The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. d. emphasize profit maximization. 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. The strategic leader's work is characterized by 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. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. . a. strategic competitiveness b. a permanently sustainable . d. concentration on the practical day-to-day aspects of the organization's operations. 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. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. In order to cope with hyper competition, firms need to develop ___ through continuous learning. Strategic Goals: .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. a. competitive resilience All of the following are resources of an organization EXCEPT True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . In the strategic management process ASP stands for ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . A vision statement can lead to missed opportunities when it ______. d. All of these options are correct. It guides the company to move in a specific direction. is a capacity for a set of resources to perform a task or an activity in an integrative manner. 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 Sue prefers the Red Shuttle because it gets her to the airport in an hour and a half, while the Blue Shuttle takes $80$ minutes. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. a. their return on investment has been maximized. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.