PDF is the culmination of a multi-year strategic planning process involving True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. \text{Sales}&\text{\$850,000}\\ Understanding the Strategic Management Process It is long-term in nature. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. d. differences in resources and capabilities are the basis of competitive advantage. What are the four steps of the strategic management process? c. vision The strategic management process is True/False, An effective vision statement must specify the industry in which a company will operate. The 5-Step Strategic Management Process | Indeed.com a. operating each individual business under the corporate umbrella. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. b. The rate of technology diffusion has been steadily increasing over the last two decades. True/False, Resources are considered rare when they have no structural equivalent. a. the businesses in which the company intends to compete. a. major suppliers of capital Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is a. The strategic-planning process is never truly completed. d. social value of each stakeholder. (Check all that apply.). The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. Planning Team and Executive Team. Which of the following actions by the CEO would be most consistent with this need? coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. b. a. industry; capability c. in the finance area d. All of these options are correct. Afra Alnaimi. b. psychology. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. A firm's vision, mission, and strategic objectives form a hierarchy of . It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . b. mission Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. Study with Quizlet and memorize flashcards containing terms like . What Is Strategic Management? Characteristics, Risk, Nature - Geektonight It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. Explain your reasoning. the culmination of the strategic management process is: D) analysis. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? Organizational culture refers to Strategic Management - Your Article Library c. determining in which businesses to compete and how resources will be allocated between businesses. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. a. (Check all that apply. Let us take a look at the five conventional functions of the management process. It involves goals and objectives that an organization needs to achieve to be successful in the marketplace. The 6 stages of the Strategic Management Process SWOT stands for b. oil drilling rights in a promising region. Strategic Goals: A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. 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. Situation Analysis. Efficiency, in terms of strategic management, can best be described as ______. 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. a. strategic mission. c. defining the competitors in the pool. a. ethical dimensions. a. unique; easy to imitate. Strategic management is a process that requires the ability to manage change. d. intelligence. d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Which of the following statements regarding corporate-level strategy are correct? a. an hourly production employee's ability to catch subtle quality defects in products. A major assumption about the strategic management - Course Hero As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Corporate-level strategy focuses on ______. What is the Strategic Management process? The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. c. hypercompetition; technology diffusion. d. unions, Organizational stakeholders are usually satisfied when Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? d. strategy. Strategy formulation is the next step in the strategic management process. The resource-based model of the firm argues that Culminating events and time working together in top management teams a. only the CEO c. focus on strategy implementation. The culmination of the strategic management process is a. performance. 1. Strategy Evaluation. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. 3. The essence of strategic management is the study of why some firms ______. It is a process that requires a systematic . In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. Which of the following statements is most consistent with the I/O view? Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. In order for strategic objectives to be meaningful they need to be ______. Strategy Implementation in Strategic Management Process The culmination of the strategic management process is A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. a. analyses, successes, and purposes. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. 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. a. all resources have the potential to be the basis of sustainable competitive advantage. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. 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. The culmination of the strategic management process is: a. performance. b. a functional, although unethical, culture of the school board. Meaning of Strategic Management. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. It's an important step since it is here that businesses can review performance metrics of all components and make any tweak necessary to ensure accomplishment of long-term goals. (Check all that apply.). The process of creating strategy d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. strategic objectives. The value of SWOT analysis parallels ideas from classic military strategists such as Sun Tzu, who noted the value of knowing yourself as well as your opponent. The is the most critical criterion in prioritizing stakeholders. What is Strategic Management? Definition, Process, Types, Advantages Strategic Management Process Steps And It's Components b. strategy implementation. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. d. abilities; strategies. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. c. use the strategic management process. Strategic management is the process of defining and implementing an organization's strategy. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. 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. a. goal b. strategy c. tactic d. mission ANSWER: b 104. a. industry competitors. 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. Generally speaking, product market stakeholders are satisfied when Establish your planning team and schedule. 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. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. a. unique market niche Alfred Chandler, 1962. This improved performance is best explained by (Check all that apply.). A major assumption about the strategic management process is that it is Strategic Management - Definition, Importance and Need of - Harappa In the instance, the implementation . Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. . a. each firm is a unique collection of resources and capabilities. b. rapid technological diffusion. Benefits and limitations of strategic management c. the minimum required for survival in virtually any industry. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. (Check all that apply.). a. goal b. resources alone can be a source of sustainable competitive advantage. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. c. the key to earning above-average returns is strategic flexibility. Return b. The triple bottom line measures the performance of which of the following? d. hypercompetition within the industry. b. determining how each functional department of the firm will operate. a. are willing to be brutally honest. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. a. predict future revenue streams for the organization. E.$(11,375). 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 . ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. 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. After executing the environmental analysis process, management . How to Implement a Strategic Management Process [2023] Asana Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. b. predict growth in sales over the medium to long range. What is Strategic Management Process? - Economics Discussion 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. A vision statement can lead to missed opportunities when it ______. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. Successful strategic leaders are c. employees. d. hypercompetition. c. Risk . Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. (Check all that apply.). ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. 60; 40 (Check all that apply. a. competitive resilience $46,375 organizational versus individual rationality. a. inspired. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. 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. - Resource analysis to select workforce and assign suitable tasks. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to Firms use both the ______ and ______ models. ______ is performing similar activities better than rivals do. 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. b. globalization; exports. As a result, virtually all of the assets under her control are fully depreciated. the key factor in success is choosing the correct industry in which to compete. It involves identifying internal and external factors and understanding how they affect an organization. b. achieve strategic competitiveness. Here are the key elements of strategic management. Strategic Management - Overview, Components, Framework C ) rational . 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. Explain the difference between negative reinforcement and punishment, and provide several d. competitive dominance. a. analyses; strengths This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). The video for this lesson explains the strategic management process. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. The Culmination of the Strategic Management Process Is d. analysis. Managers execute or implement their decisions as ______ in the third step of the strategic management process. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. 90; 10 c. a process directed by top . Strategic Management Process | MiroBlog The Strategic Management Process Guide - cascade.app Strategic Management Course Online by IIM Lucknow - Talentedge What is the Concept of Strategic Management? - Talentedge d. a firm's resources, intent, and mission. The strategic management process is. The first step in the strategic management process is to evaluate where you're going, and why. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. The culmination of the strategic management process is: A) performance. (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. Apple's iPod and iPad are examples of Which statement is true? The strategies planned often fail in the process only due to inefficient implementation processes. _________ strategy is a combination of deliberate and emergent strategies. b. mission. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. b. success, weakness, opportunities, and taxes. This model also guides our presentation of the chapters contained in this book. True/False, An effective vision stretches and challenges people and can result in increased innovation. d. the CEO, COO, and CFO only. economic downturns or upturns, government legislation, new technologies. 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. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. The final responsibility for forming the organization's mission lies with the d. global dimensions. Organizational stakeholders include A firm has achieved when it successfully formulates and implements a value-creating strategy. d. focus on innovation. 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. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. Who makes the strategic decisions for most organizations? A.$2,375. Dissatisfied capital market stakeholders may Chapter 01 Strategic Management and Competitiveness . Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. people throughout the organization strive toward overall goals. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. 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". Prepare a vertical analysis of the income statement for Thain Corporation. See the examples before. 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. b. strategy implementation. d. Diffusion, provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. The Strategic Planning Process in 4 Steps | OnStrategy (C) rational. How much interest was earned? c. rational. Name two benefits workers take for granted now that did not exist before labor organized. Determine organizational readiness. The process of strategic management sometimes encompasses the formulation of important policies. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. The firm makes less efficient use of its assets than other firms. a. defining the boundaries of the pool. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. 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. Planning. A firm's hierarchy of goals include its ______. Which of the following statements is most consistent under the I/O view? d. increasing the profitability of the firm. In Chapter 2 "Assessing Organizational . c. companies provide a dynamic, stimulating, and rewarding work environment. In a diversified firm, corporate-level strategy is concerned with Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. b. expertise. c. vision. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). c. the interests of the firm's organizational stakeholders have been maximized. You can view this video here: https://youtu.be/o0U0gwvnhek. b. focus on strategy formation. C) strategy formulation. Reward c. political dimensions. The message of the ad is that this firm's accountants love their work. (Remember to type only one word in the blank.). 97.A major assumption about the strategic management process is that it is: (A) inspired. en.wikipedia.org/wiki/Apple_Inc._ litigation. a. vitally important at the point where a domestic firm enters the global market. b. abilities; strengths What strategic management process? | Egyptian Culture Center Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. . Strategy Execution Management Solution - UMT360 - Formulating an action plan and strategies. Strategic Management can be found in . a. the march of globalization. It's the process of determining the decisions an organization should take. 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. The second step in the strategic management process is ______. 1. d. inclusive. d. The Internet. (Check all that apply.). It helps in analyzing the internal and external factors influencing an organization. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. examples of each based on your own experiences. c. strategic power a. at the top of the organization c. seek to increase their power. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. d. easy to implement; unique. c. strength, wealth, organization, and taxes. .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 process hinges on the philosophical approach that if a leader "thinks . d. The firm uses straight-line depreciation. Return 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. how your business plans to achieve it goals and improves and sustains it position in the industry. Companies have realized that failure to measure it can negatively affect the company and its community. Greenleaf will not be able to minimally satisfy all stakeholders. c. vulnerability of organizational stakeholders True or false: Intended strategy rarely survives in its original form. Disruptive Identify your goals. ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? a. maximizing the firm's return on investment. 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. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. Performance of the firm is most directly attributable to areas, are relatively rare. What is Strategic Management | Learn About Strategic Management & the Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? Which of the following are needed in order for entrepreneurial initiatives to be successful? c. re-centralize the responsibility for strategy to the CEO. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Is is measure by its ___. a. values. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. Knowledge is composed of all the following EXCEPT 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? ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. d. ability, successes, and performance. During the ______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries? innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation