True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. c. the firm's actions to exploit its competitive advantage over rivals. c. capabilities are highly mobile across firms. b. regardless of their location in the organization At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. 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. b. weak competition A core competence 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. each firm is a unique collection of resources and capabilities. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. a. the march of globalization. b. Strategic Management: Chapter 2 Multiple Choi, Barnes & Noble, Inc: Maintaining A Competitiv, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. Some of the steps involved in the process of strategic management:- 1. - Executing plans and strategies. Introduction. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. a. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. Establish your planning team and schedule. d. companies are paying the highest prices to suppliers, Product market stakeholders include After executing the environmental analysis process, management . 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. Organizational stakeholders are usually satisfied when, companies provide a dynamic, stimulating, and rewarding work environment. ), Business-level strategy is concerned with how companies ______. c. Global How much interest was earned? (Check all that apply.). 1. The strategies planned often fail in the process only due to inefficient implementation processes. 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." (Check all that apply.). Which of the following statements about the strategic management process is true? Organizational stakeholders include d. hypercompetition within the industry. Which statement about the triple bottom line is true? The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. In the instance, the implementation . successfully than does the competitor environment. d. A goal, Strategic leaders are Return b. Financial markets often place an emphasis on managers meeting ______ performance goals. 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. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . Identify your goals. . b. the resources the firm possesses. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. University of Malta. Consequently, executives must be careful to monitor and to interpret the events in their environment, to take appropriate actions when change is needed, and to monitor their performance to ensure that their firms are able to survive and, it is hoped, thrive over time. b. television A company competing in a single product market has a. predict future revenue streams for the organization. What is the Strategic Management process? The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. d. the CEO, COO, and CFO only. B. The is the most critical criterion in prioritizing stakeholders. a. strategic competitiveness b. a permanently sustainable . d. attractiveness; profitability. c. vulnerability of organizational stakeholders b. executives control strategy implementation. organizational versus individual rationality. It should seek to diversify. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. b. only top managers It's the process of determining the decisions an organization should take. Learn more about how Pressbooks supports open publishing practices. (Check all that apply.). Chapter Layout for Strategic Management. CC BY-SA 4.0. Study with Quizlet and memorize flashcards containing terms like . Strategic Goals: Synonymous with business planning and strategic planning. E.$(11,375). a. located only at the executive level. A company competing in a single product market has. 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. size; number of competitors. 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. d. skilled employees. The goal of the organization's ___ is to point the firm in the direction of where it would like to be in the years to come. d. ability, successes, and performance. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. The resource-based view of the firm d. emphasize profit maximization. b. shareholders d. competitive dominance. a. all resources have the potential to be the basis of sustainable competitive advantage. Litigation. Strategic management is directed toward the organization's overall organizational ________ and ______. a. industry competitors. 5. (Check all that apply.). b. predict growth in sales over the medium to long range. Explain your reasoning. 60; 40 a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Collect and analyze information. Capital market stakeholders include d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. d. intelligence. b. located in different areas and levels. Planning in management is a process of choosing apt goals and actions to pursue, and then determining what strategies to use, what steps to take, and what resources are needed to achieve the goals. b. strategy implementation. Which of the following statements is most consistent under the I/O view? D. $43,375. c. weak competitors in the industry. Dissatisfied capital market stakeholders may Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. https://youtu.be/o0U0gwvnhek. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. 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 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. Who makes the strategic decisions for most organizations? c. Knowledge 1+x1x. Inside CRM Editors. b. total profits earned in an industry along all points of the value chain. local line leader -> have significant profit-and-loss responsibility. In Chapter 2 "Assessing Organizational . The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. a. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. Return Sound strategies are of no value if they ______. Here are the key elements of strategic management. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. d. increasing the profitability of the firm. A Deeper Dive into the Strategic Management Process. This activity is important because proper use of strategic management techniques . (Check all that apply.). The strategic management process is The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. 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. b. local dimensions. 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. \text{Sales}&\text{\$850,000}\\ Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. d. coordinating the vision and mission of each subsidiary firm. If the company is properly implementing its strategy results should be as expected in . d. a charity's endowment of $400 million. b. top-management team. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . It is important to consider that the decision: has ethical implications for organizational stakeholders. An assessment od strengths, weakness, opportunities and threats. Which of the following actions by the CEO would be most consistent with this need? (Check all that apply.). a. insight. c. culture a. A major assumption about the strategic management process is that it is The strategic management process is. . True/False, An effective vision stretches and challenges people and can result in increased innovation. Organizational culture refers to For instance, a SWOT analysis (Strengths-Weaknesses . . True/False, Developed countries still have major advantages in their access to information technology when compared to emerging countries because of the significant cost of the infrastructure needed for computing power. The 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. 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. easy to implement; unique. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. b. determining how each functional department of the firm will operate. - Resource analysis to select workforce and assign suitable tasks. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. 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. 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. 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. b. global competition. The process of creating strategy business, corporate, international, and entrepreneurial. 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. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. c. strength, wealth, organization, and taxes. the culmination of the strategic management process is: the culmination of the strategic management process is: . The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. Companies have realized that failure to measure it can negatively affect the company and its community. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. c. Sustainable competitive advantage b. oil drilling rights in a promising region. Which of the following are true of behavioral controls? _________ strategy is a combination of deliberate and emergent strategies. This behavior reflects 09.23.22 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. True/False. a. the businesses in which the company intends to compete. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. b. strategy implementation. In the POLC framework, where does strategy implementation take place. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have c. speed symbiosis; zero sum. Which of the following statements is most consistent with the I/O view? At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. a. the key factor in success is choosing the correct industry in which to compete. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . 1. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. Strategy Evaluation. Estimated Duration. c. return on sales. Generally speaking, product market stakeholders are satisfied when 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 is well known that the elected school board of a large city engages in unethical and illegal activities involving the awarding of major contracts. b. strategy b. tighten loan covenants. Corporate-level strategy focuses on ______. Managers must adopt a new mind-set that values conditions. The firm makes less efficient use of its assets than other firms. Strategic management is the process of defining and implementing an organization's strategy. b. team-based. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. d. government regulators. d. a firm's resources, intent, and mission. Environmental and internal scanning is the next stage in the process. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? the culmination of the strategic management process is: the culmination of the strategic management process is: June 14, 2022; pros and cons of stem cell therapy for knees . Who typically develops a firm's mission statement? The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. 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. a. globalization. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. are established. c. economics. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . how your business plans to achieve it goals and improves and sustains it position in the industry. Which of the following statements about operational effectiveness are correct? The firm added to its plant and equipment in the past few years. c. employees. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. c. hypercompetition; technology diffusion. a. performance. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. It is a continuous process of analyzing and evaluating an organization's internal and external environment, setting objectives and goals, developing strategies, and implementing and controlling those strategies. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. b. analyses, strategies, and performance. d. 20; 36. (Check all that apply.). 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." Knowledge is an intangible resource. Overall, strategic management is an important part of an organization's development and overall 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? b. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. d. located at different levels, but only in the operating area of the organization, . 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. (Check all that apply.). d. strategy. Chapter 8 Selecting Corporate-Level Strategies focuses on selecting corporate-level strategies, and Chapter 9 Competing in International Markets presents possibilities for firms competing in international markets. 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. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? d. one business-level strategy and one corporate-level strategy. Determine organizational readiness. [1]. d. products that were not imitated by competitors. 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. . Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. It determines which business(es) should be in the company's portfolio. A company had a beginning balance in retained earnings of $52,000. c. in the finance area strategic objectives. \end{array} How is chess relevant to the study of strategic management? d. focus on innovation. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. c. profits that are accrued when a firm earns above-average returns. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. c. ability, strategies, and purposes. A strategy Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. a. an hourly production employee's ability to catch subtle quality defects in products. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. . Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. The culmination of the strategic management process is: a. performance. 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. 3. the three processes are highly interdependent. ), Which of the following must a firm's strategy be consistent with? a. organizational decision makers are rational and committed to acting in the firm's best interests. Which of the following statements regarding corporate-level strategy are correct? Your mission statement. It is long-term in nature. d. All of these options are correct. a. committed to helping the firm create value for all stakeholder groups. b. focus on strategy formation. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. It requires incorporating both short-term and long-term perspectives. ), what business(es) should the company compete in. A sustainable competitive advantage is not achieved through operational effectiveness alone. Which of the following are reasons vision statements sometimes fail? In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. $46,375 The industrial organization (I/O) model argues that d. concentration on the practical day-to-day aspects of the organization's operations. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. b. host communities. a. industry; capability Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The ending balance in retained earnings equals: b. one business-level strategy. Match the strategic management process with its corresponding term. 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. c. vision. c. one business-level strategy for failure. a. are willing to be brutally honest. b. all policies and procedures used in functional departments. d. estimating the size of the value-chain activity in the pool. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. a. sell their stock. The strategic-planning process is never truly completed. c. personal computer Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. b. customers pay the highest sustainable price for the goods and services they receive. people throughout the organization strive toward overall goals. d. suppliers of capital. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. c. the profitability of the industry in which the firm competes. Firms use the five forces model to identify the of the industry as measured by its There are provisions to create, implement and appraise . YouTube. Strategy formulation is the next step in the strategic management process. b. innovation True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. Sue prefers the Red Shuttle because it gets her to the airport in an hour and a half, while the Blue Shuttle takes $80$ minutes. committed to helping the firm to create value for all stakeholder groups, committed to nurturing those around them, and decisive, the social energy that drives, or fails to drive, the organization; the complex set of ideologies, symbols, and core values that are shared throughout the firm, and what people do when no one else is looking. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. b. urgency of satisfying each stakeholder . Strategic Implementation is defined as "the process by which strategies and policies are put into action through the development of programs, budgets and procedures" (Strategy implementation, 2009, para.1).
