Chess CC BY-NC 2.0. 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. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. 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. Which of the following are true of behavioral controls? Explain Strategy formulation. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. Your mission statement. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. b. customers pay the highest sustainable price for the goods and services they receive. C.$54,375. UMT360's Strategy Execution Management solution. a. unique market niche Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? 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 . b. analyses, strategies, and performance. A business-level strategy describes c. employees. 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. b. strategy implementation. c. the key to earning above-average returns is strategic flexibility. Environmental and internal scanning is the next stage in the process. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. 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. Your company's core competencies. a. ethical dimensions. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. - Formulating an action plan and strategies. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. (2014, November 29). 1. a. operating each individual business under the corporate umbrella. a. the businesses in which the company intends to compete. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. 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. c. employees. 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 . . . Importance of Strategic Management. A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. Planning. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. Performance of the firm is most directly attributable to a. the power of the financial market stakeholders. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. 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. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. c. Global ), Which of the following are examples of business-level strategies? Efficiency, in terms of strategic management, can best be described as ______. Who makes the strategic decisions for most organizations? According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. After executing the environmental analysis process, management . Strategic management is the management of an organization's resources to achieve its goals and objectives. A firm's vision, mission, and strategic objectives form a hierarchy of . Firms use the five forces model to identify the of the industry as measured by its - Executing plans and strategies. The ___ is the most critical criterion in prioritizing stakeholders. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. b. mission Greenleaf will not be able to minimally satisfy all stakeholders. Firms use both the ______ and ______ models. ______ is performing similar activities better than rivals do. What is the Strategic Management process? 1+x1x. Planning Team and Executive Team. The steps for identifying the profit pools in an industry include all of the following EXCEPT It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . 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 strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. University of Malta. 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 . Effective strategic leaders a. major suppliers of capital The three primary participants in corporate governance are the ______, management, and board of directors. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. people throughout the organization strive toward overall goals. a. power of each stakeholder d. critically important mainly in high technology industries. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. 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. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. All of the following are assumptions of the industrial organization (I/O) model EXCEPT Effective strategies Apple uses to create loyal customers. Organizational culture refers to d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. (Check all that apply.). a. flexibility b. innovation c. speed d. All of these options are correct. d. Organizational intelligence. . b. argues that the industry environment has a stronger influence on firms' ability to implement strategies c. information. b. regardless of their location in the organization The firm makes less efficient use of its assets than other firms. The ending balance in retained earnings equals: 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.). A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. b. a firm's profit margin yields an above-average return to its capital market stakeholders. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. c. 36; 20 Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. (B) team-based. Alfred Chandler, 1962. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. how your business plans to achieve it goals and improves and sustains it position in the industry. 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. are established. business, corporate, international, and entrepreneurial. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. d. easy to implement; unique. Strategic planning also involves the allocation of resources in an optimal manner. d. social value of each stakeholder. b. all policies and procedures used in functional departments. The strategic-planning process is never truly completed. ____has become the second-largest economy in the world. Chapter Layout for Strategic Management. CC BY-SA 4.0. A sustainable competitive advantage is not achieved through operational effectiveness alone. b. inspiring vision. c. The firm has a lot of old plant and equipment. b. one business-level strategy. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. b. located in different areas and levels. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. In the POLC framework, where does strategy formulation take place? b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. b. abilities; strengths d. is developed by a firm before the firm develops its vision. d. attractiveness; profitability. b. mission d. 20; 36. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. 3. 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. Which of the following actions by the CEO would be most consistent with this need? c. disruptive technologies. The resource-based model of the firm argues that d. strategy. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. (Check all that apply.). 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. The firm added to its plant and equipment in the past few years. d. ability, successes, and performance. 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. The 5 stages of the strategic management process. c. re-centralize the responsibility for strategy to the CEO. a. industry competitors. d. abilities; strategies. Owner/CEO, Strategy Director. The final responsibility for forming the organization's mission lies with the Strategic Management Process [Video]. Which of the following are needed in order for entrepreneurial initiatives to be successful? b. 2. d. the amount and speed of growth. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. 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. d. competitive dominance. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. 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." To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and (Check all that apply.). In order to cope with hypercompetition, firms need to develop through continuous learning. a. inspired. (Check all that apply. Managers must adopt a new mind-set that values conditions. a. flexibility b. television d. accounting. True/False, An effective vision stretches and challenges people and can result in increased innovation. Strategic Management. \text{Cost of goods sold}&\text{493,000}\\ Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. A company competing in a single product market has. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. Some of the steps involved in the process of strategic management:- 1. [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.". the key factor in success is choosing the correct industry in which to compete. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. - Evaluating efficiency and effectiveness . B. 60; 40 Identify your goals. . Strategic management involves setting objectives, analyzing the competitive environment . d. one business-level strategy and one corporate-level strategy. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . 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. a. are willing to be brutally honest. d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. d. a charity's endowment of $400 million. It is a philosophical approach to business. A company competing in a single product market has b. easy to imitate; difficult to implement. d. Internet. d. a firm's resources, intent, and mission. a. strategic objectives. In order for strategic objectives to be meaningful they need to be ______. c. profits that are accrued when a firm earns above-average returns. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is b. innovation 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. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. Managers are analyzing the firm's ______ when managers are studying its competitors. b. c. is mainly intended to emotionally inspire employees and other stakeholders. Organizational goals and objectives should represent what is best for ______. It helps in analyzing the internal and external factors influencing an organization. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. b. success, weakness, opportunities, and taxes. b. organizational versus individual rationality.