Environmental and internal scanning is the next stage in the process. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Effective strategies Apple uses to create loyal customers. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. a. goal (. \begin{array}{llr} The strategic management process is ), Which of the following must a firm's strategy be consistent with? d. strengths, weaknesses, opportunities, and threats. This involves developing specific strategies and actions. b. b. success, weakness, opportunities, and taxes. A company competing in a single product market has. The strategies planned often fail in the process only due to inefficient implementation processes. 1. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? (Check all that apply.). . Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. Write the key term that best matches each description. d. personality. Establish your planning team and schedule. d. All of these options are correct. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. c. a process directed by top management with input from other stakeholders that seeks to achieve above- average returns for investors through effective use of the organization's resources. True/False. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) Strategy formulation is the next step in the strategic management process. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. 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. d. government regulators. a. Reward c. Risk d. Revenue ANSWER: c 105. Meaning of Strategic Management. (C) rational. Overall, strategic management is an important part of an organization's development and overall performance. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} For example, part of Apples success is due to its consistent focus on innovation and creativity that Steve Jobs described as similar to that of a start-up. d. inclusive. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. The resource-based model of the firm argues that d. estimating the size of the value-chain activity in the pool. c. avoid too much managerial hubris. b. innovation Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . c. the key to competitive success is the structure of the industry in which the firm competes. There are provisions to create, implement and appraise . 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. YouTube. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). Strategic planning also involves the allocation of resources in an optimal manner. Planning Team and Executive Team. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. c. speed a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. [1]. c. personal computer Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. b. only top managers The company requires that all divisions generate a minimum return on invested assets of 8 percent. one business-level strategy and one corporate-level strategy. (2014, November 29). The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. b. shareholders. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Collect and analyze information. 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. 2. 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. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. d. suppliers of capital. All of the following are assumptions of the resource-based model EXCEPT Environmental Scanning 2. See the examples before. 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. A capability shareholders, management, and the board of directors. ), a destination that is driven by and evokes passion. It is long-term in nature. (Check all that apply. https://youtu.be/o0U0gwvnhek. What is the Strategic Management process? Figure 1.7: Kindred Grey (2020). The invention of the car is an early example of: A company's ability to acquire knowledge is: an important source of competitive advantage in all industries. symbiosis; zero sum. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. c. political dimensions. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. ), Business-level strategy is concerned with how companies ______. The culmination of the strategic management process is: Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions. (D) inclusive. a. culture Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). It involves action plans that ensure continued performance and thriving progression. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. During the analysis step of the strategic management process managers are concerned with the company's ______. Which statement is true? a. industry; capability In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. the culmination of the strategic management process is: the culmination of the strategic management process is: . Use the simple interest formula method. Strategic management is a process that requires the ability to manage change. 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. a. competitive resilience c. the profitability of the industry in which the firm competes. a. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. organizational versus individual rationality. Inside CRM Editors. Which of the following are stakeholder groups that managers should consider when making decisions? c. in the finance area a. an hourly production employee's ability to catch subtle quality defects in products. 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. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. b. estimating the overall size of the pool. d. Organizational intelligence. is a capacity for a set of resources to perform a task or an activity in an integrative manner. A company competing in a single product market has True/False, The rate of growth of Internet-based applications could be affected by the strategies of Internet service providers charging users for downloading those applications. 60; 40 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 management of an organization's resources to achieve its goals and objectives. This pronouncement is most precisely a statement of organizational c. economies of scale Which of the following actions by the CEO would be most consistent with this need? (Check all that apply.). a. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. 90; 10 This behavior reflects Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 1. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. b. host communities. The triple bottom line measures the performance of which of the following? d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. ______ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. Explain your reasoning. c. one business-level strategy for failure. A business-level strategy describes Feedback may occur at all times to revise these actions. 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. a. predict future revenue streams for the organization. a. the businesses in which the company intends to compete. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. c. the minimum required for survival in virtually any industry. . are established. Managers are analyzing the firm's ______ when managers are studying its competitors. The strategic management process is. In the strategic management process ASP stands for d. the amount and speed of growth. The resource-based view of the firm a. Perpetual 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. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . c. disruptive technologies. Why is it important to view strategic management as a process? 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. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. (Check all that apply. Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. The strategic management process is more than a set of rules to follow. d. a school board lacking in core competencies. You can view this video here: https://youtu.be/o0U0gwvnhek. d. culture. A customer can buy an iPod that plays music from iTunesall of which can be stored in Apples Mac computer (Inside CRM Editors, n.d.). Disruptive c. vulnerability of organizational stakeholders b. expertise. 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. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. Firms use both the _____and______models. \text{Gross profit}&\text{357,000}\\ Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. A.$2,375. (Check all that apply.). (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . b. d. Revenue. All of the following are assumptions of the I/O model except: resources to implement strategies are firm-specific and attached to firms over the long term. a. vitally important at the point where a domestic firm enters the global market. d. competitive dominance. 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. In order to cope with hypercompetition, firms need to develop through continuous learning. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. b. a firm's profit margin yields an above-average return to its capital market stakeholders. Strategic Management Process [Video]. d. the CEO, COO, and CFO only. b. customers pay the highest sustainable price for the goods and services they receive. (Check all that apply. d. increasing the profitability of the firm. Which of the following statements about operational effectiveness are correct? All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. Match the strategic management process with its corresponding term. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. Apple Inc. b. television c. rare; costly to imitate. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. A Deeper Dive into the Strategic Management Process. It is a philosophical approach to business. In Wikipedia. d. emphasize profit maximization. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. b. c. a process directed by top . d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. d. differences in resources and capabilities are the basis of competitive advantage. Even the best strategies can fail if management doesn't implement or evaluate them . Sound strategies are of no value if they ______. Dissatisfied capital market stakeholders may It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. (Check all that apply.). The process hinges on the philosophical approach that if a leader "thinks . True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. a. each firm is a unique collection of resources and capabilities. 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. A vision statement can lead to missed opportunities when it ______. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. In a diversified firm, corporate-level strategy is concerned with In Chapter 2 "Assessing Organizational . 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. 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. A firm's mission Performance of the firm is most directly attributable to d. All of these options are correct. 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. c. seek to increase their power. b. top-management team. c. vision . Which of the following statements regarding strategic management is true? The two opposing ways of examining stakeholder management are called ______ and ______. b. strategy implementation. ), Which of the following are examples of business-level strategies? Which of the following statements about the strategic management process is true? Explain Strategy formulation. Your long-term goals and/or BHAGs. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. d. total profits that can be divided among the competitors within an industry. The strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. Return b. b. the resource-based model. 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. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. b. all policies and procedures used in functional departments. d. 20; 36. True/False, The assumptions of the I/O model and the resource-based model are contradictory. a. the social energy that drives, or fails to drive, the organization. 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. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. 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. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. local line leader -> have significant profit-and-loss responsibility. Characteristics of Strategic Management. b. determining how each functional department of the firm will operate. 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? c. The value of knowledge as a proportion of shareholder value is increasing. 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." A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". Which of the following statements about organizational knowledge is correct? a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. (Check all that apply. d. strategy. 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. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . The essence of strategic management is the study of why some firms ______. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. 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'. ), what business(es) should the company compete in. 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. 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. a. return on assets. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. The Princeton Alliance Church states in its website that "PAC exists to help you live life to the fullest by knowing God, developing community and bringing hope." c. strength, wealth, organization, and taxes. c. strategy formulation. a. unique; easy to imitate. (Check all that apply.). When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). 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. (Check all that apply.). resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. d. a charity's endowment of $400 million. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. can be identified when competitors are unable to duplicate or find it too costly to try to imitate, returns in excess of what an investor expects to earn from other investments with a similar level of risk, the formulation and implementation of a full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. Who makes the strategic decisions for most organizations? b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. c. host communities Which of the following statements is most consistent under the I/O view? (B) all policies and procedures used in functional departments. The culmination of the strategic management process is: A) performance. 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 firm's provide the foundation for choosing one or more ______ and deciding how to implement them. b. executives control strategy implementation. b. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. It's the process of determining the decisions an organization should take. How to develop a strategic management process. b. total profits earned in an industry along all points of the value chain. What are the four steps of the strategic management process? \text{Cost of goods sold}&\text{493,000}\\ All businesses can benefit from strategic management to help them meet long-term objectives. Figure 1.8: Shirinsokhan, Mahmoudreza. (Check all that apply. b. 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. To implement a strong strategy effectively, an experienced . c. The firm has a lot of old plant and equipment. The process of strategic management sometimes encompasses the formulation of important policies. d. social value of each stakeholder. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. b. local dimensions. a. at the top of the organization d. All of these options are correct, Strategic delegation helps The mission of IIM Lucknow is to improve management systems with regard to business, industry and public services through pursuit of excellence in management education, research, consultancy and training. 2 St rategy formul at ion a nd i mp leme nt ati on in t he st rat e gi c mana ge me nt p roce ss Strategic management. Who typically develops a firm's mission statement? A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. The 5 stages of the strategic management process. Reward b. resources to implement strategies are firm-specific and attached to firms over the long-term. Strategic planning aims to create . a. insight. A retail outlet can attempt several remedies to improve profitability to meet the expectations of its ___ stakeholders, including closing stores, changing the top management team, and seeking potential buyers. areas, are relatively rare. D. $43,375. a. strategy, wealth, organization, and threats. In this latter case, performance is the result of a rare event that is itself the culmination of a long and ongoing process of daily .

608 N Mangum Street Durham , Nc 27701, Shively Ky Mayor Political Party, Articles T