b. a firm's profit margin yields an above-average return to its capital market stakeholders. Which of the following are stakeholder groups that managers should consider when making decisions? Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. Rationalize the denominator of each fraction and simplify. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. A firm's hierarchy of goals include its ______. The industrial organization (I/O) model argues that b. abilities; strengths a. maximizing the firm's return on investment. 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". - Resource analysis to select workforce and assign suitable tasks. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. Firms don't apply for patents so that competitors can't access information in the patents. 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. a. goal 90; 10 The 5 stages of the strategic management process. The importance of knowledge is increasing. McDonald's has been able to a. earn above-average returns. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. 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. 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. strategy implementation. In order to cope with hyper competition, firms need to develop ___ through continuous learning. Which of the following statements about operational effectiveness are correct? Dissatisfied capital market stakeholders may b. executives control strategy implementation. a. the power of the financial market stakeholders. c. the firm's actions to exploit its competitive advantage over rivals. d. is developed by a firm before the firm develops its vision. b. expertise. d. A goal, Strategic leaders are A Deeper Dive into the Strategic Management Process. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. d. suppliers of capital. . a. performance. Organizational culture refers to 2. Strategic management requires that ______. b. all policies and procedures used in functional departments. Firms use both the _____and______models. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. 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. d. a charity's endowment of $400 million. c. what people do when no one else is looking. b. strategy implementation. a. the march of globalization. Collect and analyze information. b. customers pay the highest sustainable price for the goods and services they receive. 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? Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? the key factor in success is choosing the correct industry in which to compete. examples of each based on your own experiences. (2014, November 29). Is is measure by its ___. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. Here are the key elements of strategic management. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. c. Sustainable competitive advantage The culmination of the strategic management process is: A) performance. c. rare; costly to imitate. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. In terms of analyzing the external environment of the firm, the industry environment consists of ______ and other organizations that may threaten the company's success. 1. Strategy implementation is the final stage of the process. (Check all that apply.). a. strategic competitiveness b. a permanently sustainable . c. Global The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. (Check all that apply.). c. strategy formulation. The firm added to its plant and equipment in the past few years. Managers must adopt a new mind-set that values conditions. c. return on sales. d. critically important mainly in high technology industries. A vision statement can lead to missed opportunities when it ______. 1. Strategic management is the process of defining and implementing an organization's strategy. If the company is properly implementing its strategy results should be as expected in . a. culture b. committed to nurturing those around them. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? (Check all that apply.). Which of the following statements regarding corporate-level strategy are correct? c. vision Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. b. resources alone can be a source of sustainable competitive advantage. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. Who typically develops a firm's mission statement? c. The firm has a lot of old plant and equipment. Owner/CEO, Strategy Leader. c. ability, strategies, and purposes. (n.d.). c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. Study with Quizlet and memorize flashcards containing terms like . c. the key to competitive success is the structure of the industry in which the firm competes. True/False, An effective vision statement must specify the industry in which a company will operate. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. The culmination of the strategic management process is a. performance. Meaning of Strategic Management. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? c. the CEO and top managers Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. d. All of these options are correct. Strategic planning aims to create . (Check all that apply.). 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. b. d. a school board lacking in core competencies. The ___ is the most critical criterion in prioritizing stakeholders. b. weak competition 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. determines how organization as a whole supports and enhances the value of the business units w/in it. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. d. Internet. . 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. b. shareholders. a. located only at the executive level. In the instance, the implementation . Which of the following are reasons vision statements sometimes fail? A.$2,375. b. return on equity. a. CEO. Greenleaf Property Management has been earning below-average returns for the last three years. Firms use the five forces model to identify the of the industry as measured by its d. government regulators. Which of the following state the goals and intentions that help define a firm's competitive advantage? b. host communities. True/False. d. strategy. The two opposing ways of examining stakeholder management are called ______ and ______. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. 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. a. disruptive technologies. YouTube. b. top-management team. a. Perpetual True/False, The goal of strategy implementation is to develop a permanent competitive advantage. In the POLC framework, where does strategy implementation take place. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} What other games might help teach strategic thinking. d. The firm uses straight-line depreciation. b. success, weakness, opportunities, and taxes. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . The strategic management process begins with an understanding of strategy and performance. Which of the following statements about the strategic management process is true? Want to create or adapt books like this? True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. is a capacity for a set of resources to perform a task or an activity in an integrative manner. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. d. unions, Organizational stakeholders are usually satisfied when True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. (Check all that apply.). d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. a. are willing to be brutally honest. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . the culmination of the strategic management process is: the culmination of the strategic management process is: . 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. Afra Alnaimi. The video for this lesson explains the strategic management process. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. Organizational stakeholders are usually satisfied when, companies provide a dynamic, stimulating, and rewarding work environment. The resource-based view of the firm a. industry competitors. a. power of each stakeholder a. operating each individual business under the corporate umbrella. The steps for identifying the profit pools in an industry include all of the following EXCEPT a. one corporate-level strategy. c. determining in which businesses to compete and how resources will be allocated between businesses. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. Generally speaking, product market stakeholders are satisfied when A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. The rate of technology diffusion has been steadily increasing over the last two decades. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. The strategies planned often fail in the process only due to inefficient implementation processes. c. obtaining reliable products at the lowest possible price. Importance of Strategic Management. The process of implementation of strategy starts with the identification of key managerial tasks which form the basis for the creation of strategy starts with the identification of key b. located in different areas and levels. c. personal computer c. capabilities are highly mobile across firms. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. c. profits that are accrued when a firm earns above-average returns. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. d. coordinating the vision and mission of each subsidiary firm. This pronouncement is most precisely a statement of organizational c. avoid too much managerial hubris. (D) inclusive. The culmination of the strategic management process is They involve balancing culture and boundaries or constraints. 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. 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. The firm makes less efficient use of its assets than other firms. 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. There are provisions to create, implement and appraise . It offers courses accredited to AMBA, AACSB & NIRF. It guides the company to move in a specific direction. b. strategy implementation. Which of the following statements regarding strategic management is true? a. each firm is a unique collection of resources and capabilities. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University Strategic management involves setting objectives, analyzing the competitive environment . True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. Owner/CEO, Strategy Director. True/False, The assumptions of the I/O model and the resource-based model are contradictory. The external control view of leadership emphasizes the role of which of the following types of factors in the success or failure of a firm? Overall, strategic management is an important part of an organization's development and overall performance. [1]. Financial markets often place an emphasis on managers meeting ______ performance goals. Strategy execution management is the evolution of traditional project delivery. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". ), Business-level strategy is concerned with how companies ______. (Check all that apply.). Planning Team and Executive Team. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas 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. d. products that were not imitated by competitors. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. It is a . Strategic Management Process [Video]. strategic objectives. a. the social energy that drives, or fails to drive, the organization. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. b. one business-level strategy. It requires incorporating both short-term and long-term perspectives. [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.". C.$54,375. d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. (Check all that apply. b. psychology. 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.