the culmination of the strategic management process is:
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. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. ), Which of the following must a firm's strategy be consistent with? 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. For example, intellectual property is a vital resource for Apple. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. 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). Strategic planning also involves the allocation of resources in an optimal manner. A.$2,375. 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. d. personality. 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. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. d. government regulators. Managers are analyzing the firm's ______ when managers are studying its competitors. 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. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. 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. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. 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. In order for strategic objectives to be meaningful they need to be ______. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. c. companies provide a dynamic, stimulating, and rewarding work environment. 60; 40 The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. c. economies of scale 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, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. d. global dimensions. c. employees. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. ), Which of the following are examples of business-level strategies? In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? The firm makes less efficient use of its assets than other firms. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. (C) rational. Strategic management of an organization entails which of the following ongoing processes? The essence of strategic management is the study of why some firms ______. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Strategic Goals: In the POLC framework, where does strategy formulation take place? Corporate governance is the relationship among ______ in determining the direction and performance of corporations. A major assumption about the strategic management process is that it is A business-level strategy describes . b. regardless of their location in the organization The ending balance in retained earnings equals: The strategies planned often fail in the process only due to inefficient implementation processes. Analysis of the industry's profit pool enables strategic managers to A company had a beginning balance in retained earnings of $52,000. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari (Apple Inc.). c. vulnerability of organizational stakeholders a. industry; capability Strategy execution management is the evolution of traditional project delivery. Successful strategic leaders are c. weak competitors in the industry. b. television C) strategy formulation. - Resource analysis to select workforce and assign suitable tasks. 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. In the POLC framework, where does strategy implementation take place. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. The steps for identifying the profit pools in an industry include all of the following EXCEPT d. hypercompetition. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. Which of the following is an example of a firm's intellectual asset? As this title implies, Sun Tzu emphasized the creative and deceptive aspects of 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. Kick-Off Meeting: 1 hr. All of the following are assumptions of the resource-based model EXCEPT a. size; number of competitors. b. urgency of satisfying each stakeholder Sun Tzu's best-known work is The Art of War. (n.d.). The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. is a capacity for a set of resources to perform a task or an activity in an integrative manner. the three processes are highly interdependent. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) The two opposing ways of examining stakeholder management are called ______ and ______. Strategic Management Process [Video]. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is c. focus on strategy implementation. 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. Definition. The message of the ad is that this firm's accountants love their work. d. critically important mainly in high technology industries. 1+x1x. b. a willingness to unify stakeholders through skillful manipulation. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. d. skilled employees. As a result, virtually all of the assets under her control are fully depreciated. The ability to effectively and efficiently access and use information is 1. Learn more about how Pressbooks supports open publishing practices. Strategic management process. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. a. major suppliers of capital The two opposing ways of examining stakeholder management are called ______ and ______. Identify your goals. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. b. success, weakness, opportunities, and taxes. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? c. personal computer In such a . C.$54,375. a. strategy, wealth, organization, and threats. c. The value of knowledge as a proportion of shareholder value is increasing. (Check all that apply.). b. strategy The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. a. competitive resilience a. CEO. d. estimating the size of the value-chain activity in the pool. c. employees. Strategic management requires that ______. ), what business(es) should the company compete in. Environmental and internal scanning is the next stage in the process. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. b. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage. A sustainable competitive advantage is not achieved through operational effectiveness alone. d. hypercompetition. c. 36; 20 Which of the following are reasons vision statements sometimes fail? A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. . a. goal b. strategy c. tactic d. mission ANSWER: b 104. c. determining in which businesses to compete and how resources will be allocated between businesses. b. only top managers d. intelligence. A Deeper Dive into the Strategic Management Process. Sound strategies are of no value if they ______. What is the difference between strategy formulation and strategy implementation? d. The Internet. Which of the following are true of behavioral controls? Strategic management is directed toward the organization's overall organizational ________ and ______. d. strategy. a. suppliers. 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. 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. b. Managers must adopt a new mind-set that values conditions. 3. 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. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. a. the key factor in success is choosing the correct industry in which to compete. d. analysis. D) analysis. What other games might help teach strategic thinking. b. local dimensions. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. c. the CEO and top managers 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. d. a charity's endowment of $400 million. c. Sustainable competitive advantage Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. 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. Collect and analyze information. The 5 stages of the strategic management process. Strategic management is directed toward a company's ______. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. d. is developed by a firm before the firm develops its vision. a. located only at the executive level. Efficiency, in terms of strategic management, can best be described as ______. b. team-based. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). 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? (Check all that apply.). It is long-term in nature. Firms use both the ______ and ______ models. a. values. 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. b. a firm's profit margin yields an above-average return to its capital market stakeholders. d. analysis. (Check all that apply. The strategic management process is. c. The firm has a lot of old plant and equipment. d. the amount and speed of growth. Performance of a firm is most directly attributable to: the profitable of the industry in which the firm competes, Firms use the five forces model of competition to identify the ___ of the industry. The culmination of the strategic management process is: A) performance. a. culture 1. $46,375 D. $43,375. Defend your answer. (Check all that apply.). Strategy formulation is the next step in the strategic management process. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. A company competing in a single product market has A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. b. a. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. 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. The culmination of the strategic management process is Environmental Scanning 2. c. a process directed by top . a. See the examples before. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. a. vitally important at the point where a domestic firm enters the global market. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. The culmination of the strategic management process is a. performance. d. A goal, Strategic leaders are The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. a. unique market niche a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. a. sell their stock. A strategic management process is an essential tool for any organization looking to optimize performance and reach success. The third step of the strategic management process is the ______ step. This ad seeks to convey a sense of the organization's to the viewers. What are the four levels of a company's strategy formulation? (Remember to type only one word in the blank.). Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. It determines which business(es) should be in the company's portfolio. In strategic management, effectiveness can best be described as ______. c. ability, strategies, and purposes. a. predict future revenue streams for the organization. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. a. pool of assets that is distributed to investors. It is a process that requires a systematic . Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. (2014, November 29). Some of the steps involved in the process of strategic management:- 1. b. a functional, although unethical, culture of the school board. c. Knowledge It improves the company's problem-solving and prevents capabilities. a. strategic competitiveness b. a permanently sustainable . Alfred Chandler, 1962. 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. .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. c. employees. 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 It is a . (. 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. c. political dimensions. d. easy to implement; unique. There are provisions to create, implement and appraise . Planning extensive employee training and hiring educated and experienced employees. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to 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. 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. 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. a. unique; easy to imitate. 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? (Check all that apply.). During the analysis step of the strategic management process managers are concerned with the company's ______. In order to cope with hypercompetition, firms need to develop through continuous learning. Effective strategic leaders 1. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. Accordingly, the strategic management and planning process consists of sequential five key steps; (i) Goal setting, (ii) Analysis strategy formation, (iii) Strategy formation, (iv) Strategy . d. abilities; strategies. c. culture Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. b. committed to nurturing those around them. d: 70: 3884478507 Match the strategic management process with its corresponding term. b. shareholders Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? It is a philosophical approach to business. They involve balancing culture and boundaries or constraints. The I/O model is grounded in Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . d. 20; 36. Afra Alnaimi. It offers courses accredited to AMBA, AACSB & NIRF. c. one business-level strategy for failure. 1.3 Intended, Emergent, and Realized Strategies, 1.5 Contemporary Critique of Strategic Management, 1.6 Understanding the Strategic Management Process, 3.2 The Relationship between an Organization and its Environment, 4.4 Intellectual Property & Isolating Mechanisms, 6.2 Understanding Business-Level Strategy through "Generic Strategies", 6.5 Focused Cost Leadership and Focused Differentation, 7.6 Responding to Innovation in the Market, 8.6 Portfolio Planning and Corporate-Level Strategy, 9.2 Advantages and Disadvantages of Competing in International Markets, 9.5 Drivers of Success and Failure When Competing in International Markets, 9.6 Options for Competing in International Markets, 10.3 The Basic Building Blocks of Organizational Structure, 10.4 Creating an Organizational Structure, 10.5 Creating Organizational Control Systems, 11.4 Corporate Ethics and Social Responsibility, 11.5 Contemporary Questions of Corporate Ethics. a. the march of globalization. The resource-based view of the firm b. inspiring vision. c. competition; competency It's the process of determining the decisions an organization should take. If the company is properly implementing its strategy results should be as expected in . Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. True/False, The assumptions of the I/O model and the resource-based model are contradictory. b. total profits earned in an industry along all points of the value chain. c. A mission 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. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. For instance, a SWOT analysis (Strengths-Weaknesses . In Chapter 2 "Assessing Organizational . 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? c. profits that are accrued when a firm earns above-average returns. It is important to consider that the decision: has ethical implications for organizational stakeholders. successfully than does the competitor environment. Which statement about the triple bottom line is true? The triple bottom line measures the performance of which of the following? d. attractiveness; profitability. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. A strategy is typically a higher level, broad goal, without a lot of specifics. a. analyses; strengths determines how organization as a whole supports and enhances the value of the business units w/in it. b. easy to imitate; difficult to implement. a. defining the boundaries of the pool. 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. b. the industry's structural characteristics have little impact on a firm's performance over time. d. All of these options are correct, Strategic delegation helps a. strategic mission. Dissatisfied capital market stakeholders may Let us take a look at the five conventional functions of the management process. This behavior has existed for decades, even as the membership in the school board has changed over time. a. return on assets. The firm added to its plant and equipment in the past few years. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. 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 Establish your planning team and schedule. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. 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. What are the four steps of the strategic management process? a. at the top of the organization ), a destination that is driven by and evokes passion. How to develop a strategic management process. a. one corporate-level strategy. 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."
