______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. 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. Sun Tzu's best-known work is The Art of War. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. The company requires that all divisions generate a minimum return on invested assets of 8 percent. b. (Check all that apply. The resource-based model of the firm argues that c. economies of scale 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. b. oil drilling rights in a promising region. b. total profits earned in an industry along all points of the value chain. Planning Team and Executive Team. This ad seeks to convey a sense of the organization's to the viewers. Which of the following statements about operational effectiveness are correct? $46,375 All of the following are assumptions of the industrial organization (I/O) model EXCEPT Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Strategic management process can be described as a set of managerial decisions and actions which determines the long-run direction and performance of the organization'. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. a. only the CEO 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. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. c. employees. vision. Strategic Management. d: 70: 3884478507 Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Efficiency, in terms of strategic management, can best be described as ______. d. emphasize profit maximization. Owner/CEO, Strategy Director. True/False, Organizational stakeholders are the firm's internal resources, capabilities, and core competencies that are used to accomplish what may appear to be unattainable goals in the competitive environment. c. strategy formulation. d. estimating the size of the value-chain activity in the pool. b. achieve strategic competitiveness. .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. 1+x1x. Social responsibility is the expectation that businesses or individuals will strive to ______. All of the following are assumptions of the resource-based model EXCEPT Which of the following statements about organizational knowledge is correct? 60; 40 The two opposing ways of examining stakeholder management are called ______ and ______. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. local line leader -> have significant profit-and-loss responsibility. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. 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 firm makes less efficient use of its assets than other firms. 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. Apple's iPod and iPad are examples of A firm's hierarchy of goals include its ______. The third step of the strategic management process is the ______ step. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. A strategy is typically a higher level, broad goal, without a lot of specifics. https://youtu.be/o0U0gwvnhek. b. all policies and procedures used in functional departments. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. (Check all that apply.). Your company's core competencies. b. focus on strategy formation. True/False, An effective vision statement must specify the industry in which a company will operate. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. Defend your answer. Strategic management is when you identify and develop strategies developing strategies for employees to follow in order to perform better and achieve a competitive edge. Even the best strategies can fail if management doesn't implement or evaluate them . The industrial organization (I/O) model argues that (Check all that apply.). Organizational goals and objectives should represent what is best for ______. 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. The strategic management process is. c. tactic A strategic management process can help guide the decisions and actions of senior executives within an organisation. b. globalization; exports. How much interest was earned? Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. Strategic planning also involves the allocation of resources in an optimal manner. c. strategy . 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. Synonymous with business planning and strategic planning. c. Risk Here are the key elements of strategic management. 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 . c. decisive. It should seek to diversify. Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization? For instance, a SWOT analysis (Strengths-Weaknesses . Strategic management is directed toward the organization's overall organizational ________ and ______. Environmental Scanning 2. c. a process directed by top . c. what people do when no one else is looking. \text{Gross profit}&\text{357,000}\\ C) strategy formulation. Strategy implementation is the final stage of the process. A capability b. abilities; strengths 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. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. Sound strategies are of no value if they ______. a. an hourly production employee's ability to catch subtle quality defects in products. Performance of the firm is most directly attributable to (Check all that apply. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n): In the resource-based model, which of the following factors would be considered a key organizational success? Strategic planning process is a systematic or emerged way of performing strategic planning in the organization through initial assessment, thorough analysis, strategy formulation, its implementation and evaluation. B. b. shareholders. In strategic management, effectiveness can best be described as ______. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. a. UMT360's Strategy Execution Management solution. Which of the following statements is most consistent with the I/O view? True/False, The resource-based model assumes that firms must have resources that are rare or costly to imitate to form a basis for competitive advantage. The strategic management process begins with an understanding of strategy and performance. c. the interests of the firm's organizational stakeholders have been maximized. This involves developing specific strategies and actions. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. c. the key to earning above-average returns is strategic flexibility. 1. (Check all that apply.). 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. Planning. a. analyses, successes, and purposes. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. a. the power of the financial market stakeholders. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. a. culture If the company is properly implementing its strategy results should be as expected in . Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. The video for this lesson explains the strategic management process. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. The profit pool is the c. determining in which businesses to compete and how resources will be allocated between businesses. Firms use both the ______ and ______ models. b. regardless of their location in the organization The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . b. easy to imitate; difficult to implement. c. strategy formulation. Let us take a look at the five conventional functions of the management process. Chapter 3 Evaluating the External Environment examines the topic of evaluating the external environment in detail, and Chapter 4 Evaluating the Internal Environment presents concepts and tools for managing firm resources. 97.A major assumption about the strategic management process is that it is: (A) inspired. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. a. the businesses in which the company intends to compete. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. This improved performance is best explained by Continuous learning (Check all that apply.). Introduction. ), Which of the following must a firm's strategy be consistent with? The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. d. the amount and speed of growth. 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. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Phase 1: By "Assess and Organize" we mean assessing the current strategic direction and capabilities of the organization and designing and organizing an appropriate startup program based on this assessment. c. personal computer - Formulating an action plan and strategies. A firm's vision, mission, and strategic objectives form a hierarchy of . a. CEO. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. 3. A.$2,375. B) strategy implementation. d. All of these options are correct. d. expand the strategic responsibilities to all organizational stakeholders. The strategic management process is a crucial element of any organization's success. b. committed to nurturing those around them. ), Which of the following are examples of business-level strategies? In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. 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. customers pay the highest sustainable price for the goods and services they receive. 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. (D) inclusive. c. determine whether an industry will be viable in the long term. b. shareholders The three primary participants in corporate governance are the ______, management, and board of directors. c. vision Corporate governance is the relationship among ______ in determining the direction and performance of corporations. b. strategy implementation. 5. b. rapid technological diffusion. . b. strategy Your mission statement. 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. c. 36; 20 When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) a. telephone . It determines which business(es) should be in the company's portfolio. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. ____has become the second-largest economy in the world. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. This is the final stage of the strategic management process. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. d. locate the most promising areas of an industry's value chain. A core competence What are the four steps of the strategic management process? Estimated Duration. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. It involves identifying internal and external factors and understanding how they affect an organization. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. This is because the organization's role as a taxpayer is most important to as stakeholders. a. suppliers. It involves action plans that ensure continued performance and thriving progression. b. located in different areas and levels. Strategic management of an organization entails which of the following ongoing processes? In smaller, new venture firms, returns are sometimes measured in terms of Return b. c. competition; competency The strategic-planning process is never truly completed. a. located only at the executive level. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. d. easy to implement; unique. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. 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. c. seek to increase their power. 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 second step in the strategic management process is ______. c. culture To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and (Check all that apply.). In Chapter 2 "Assessing Organizational . Ideally, you already have some goal materials in place, including: Your vision statement. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. a. strategy, wealth, organization, and threats. Strategic management process. 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. Meaning of Strategic Management. d. suppliers of capital. \begin{array}{llr} a. 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. Which of the following are characteristics of a well-written organizational vision statement? d. a school board lacking in core competencies. The two opposing ways of examining stakeholder management are called ______ and ______. c. employees. Collect and analyze information. a. sell their stock. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. . d. All of these options are correct. b. success, weakness, opportunities, and taxes. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. Why is it important to view strategic management as a process? d. The firm uses straight-line depreciation. c. the profitability of the industry in which the firm competes. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. d. a firm's resources, intent, and mission. 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. d. analysis. a. industry competitors. b. expertise. (Check all that apply.). A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . a. the social energy that drives, or fails to drive, the organization. d. social value of each stakeholder. d. government regulators. c. obtaining reliable products at the lowest possible price. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. a. industry; capability b. strategic flexibility It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. b. the resources the firm possesses. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. d. the CEO, COO, and CFO only. Strategy formulation is the next step in the strategic management process. To implement a strong strategy effectively, an experienced . 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 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. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? c. employees. In such a . The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. In a diversified firm, corporate-level strategy is concerned with The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. (C) rational. d. Organizational intelligence. d. A goal, Strategic leaders are It is a philosophical approach to business. b. the resource-based model. Managers must take a(n) ______ view of the organization and assess how functional areas and activities fit together so that the organization can achieve its goals and objectives. the key factor in success is choosing the correct industry in which to compete. b. strategy implementation. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. shareholders, management, and the board of directors. 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? Strategic Management Process [Video]. c. The firm has a lot of old plant and equipment. 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. Strategic management is directed toward a company's ______. 1. c. analyses; strategies b. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. Which of the following are needed in order for entrepreneurial initiatives to be successful? The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. d. hypercompetition within the industry. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. a. . Disruptive b. This activity is important because proper use of strategic management techniques . In Wikipedia. What is the Strategic Management process? 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 requires that ______. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. The resource-based view of the firm c. The value of knowledge as a proportion of shareholder value is increasing. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. The strategic management process is Organizational culture refers to Planning extensive employee training and hiring educated and experienced employees. Corporate-level strategy focuses on ______. Definition. c. ability, strategies, and purposes. c. vulnerability of organizational stakeholders d. skilled employees. What is the Strategic Management process? a. ambiguous decision situations which make effective decisions difficult to determine.