b. only top managers After executing the environmental analysis process, management . Estimated Duration. 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 set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. The strategic management process is more than a set of rules to follow. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. 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". Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. c. profits that are accrued when a firm earns above-average returns. b. globalization; exports. d. a charity's endowment of $400 million. Chapter Layout for Strategic Management. CC BY-SA 4.0. (Check all that apply.). b. I/O; resource-based Strategy implementation is the final stage of the process. c. rational. the key factor in success is choosing the correct industry in which to compete. b. innovation c. what people do when no one else is looking. d. total profits that can be divided among the competitors within an industry. a. overload middle managers. The steps for identifying the profit pools in an industry include all of the following EXCEPT The third step of the strategic management process is the ______ step. 1. c. political dimensions. c. determine whether an industry will be viable in the long term. b. committed to nurturing those around them. a. the social energy that drives, or fails to drive, the organization. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation d. products that were not imitated by competitors. are established. Which of the following statements about operational effectiveness are correct? 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. is a capacity for a set of resources to perform a task or an activity in an integrative manner. 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. 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 . a. inspired. What are the four levels of a company's strategy formulation? 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. What Is Strategic Management? | Indeed.com Canada C) strategy formulation. . The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. \end{array} d. is developed by a firm before the firm develops its vision. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. (Check all that apply.). c. return on sales. a. goal Continuous learning \text{Gross profit}&\text{357,000}\\ a. globalization. The Culmination of the Strategic Management Process Is Formulation of strategies; Environment and organizational appraisal help to find out the opportunities and threats operating in the environment and the strengths and weaknesses of an organization in order to create a match between them. A firm has achieved when it successfully formulates and implements a value-creating strategy. a. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. successfully than does the competitor environment. d. suppliers of capital. Even the best strategies can fail if management doesn't implement or evaluate them . For instance, a SWOT analysis (Strengths-Weaknesses . a. culture A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. - Resource analysis to select workforce and assign suitable tasks. 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. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. Managers are analyzing the firm's ______ when managers are studying its competitors. The strategic management process is. Strategic Management Process and Its Different Stages In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. C ) rational . It is a . At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. c. vulnerability of organizational stakeholders It offers courses accredited to AMBA, AACSB & NIRF. Strategic Management Process Steps, Components & Examples The strategic management process is a crucial element of any organization's success. d. attractiveness; profitability. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. (Check all that apply.). a. delegate strategic responsibilities to employees "closer to the action." 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. competitive resilience b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas Synonymous with business planning and strategic planning. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. examples of each based on your own experiences. c. The firm has a lot of old plant and equipment. a. strategic mission. Study with Quizlet and memorize flashcards containing terms like . The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Information Technology Project Management: Providing Measurable Organizational Value, Operations Management: Sustainability and Supply Chain Management, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine. Synonymous with business planning and strategic planning. True/False, The uniqueness of a firm's resources and capabilities is the basis for a firm's strategy and determines its ability to earn above-average returns under the I/O review. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. c. the CEO, COO, and CFO only. How to develop a strategic management process. b. receiving the highest-quality products and services in the industry. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Strategic Management: Meaning, Concepts, Examples (Explained) - iEduNote A sustainable competitive advantage is not achieved through operational effectiveness alone. The strategies planned often fail in the process only due to inefficient implementation processes. (B) team-based. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. This is because the organization's role as a taxpayer is most important to as stakeholders. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. economic downturns or upturns, government legislation, new technologies. a. predict future revenue streams for the organization. b. weak competition True/False, Ms.Smith is a strategic leader of the firm. b. tighten loan covenants. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. d. Organizational intelligence. (Check all that apply.). In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. 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? c. one business-level strategy for failure. $$ a. located only at the executive level. b. all policies and procedures used in functional departments. a. insight. Some of the steps involved in the process of strategic management:- 1. It helps in analyzing the internal and external factors influencing an organization. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. c. an ability to identify the correct solutions to long-range problems. c. information. What Is Strategic Management? - Strategic Management The Five Stages of the Strategic Management Process people throughout the organization strive toward overall goals. A company had a beginning balance in retained earnings of $52,000. b. success, weakness, opportunities, and taxes. A company competing in a single product market has (Check all that apply. . Strategic Management Chap 1 Flashcards | Quizlet c. the interests of the firm's organizational stakeholders have been maximized. True/False, An effective vision stretches and challenges people and can result in increased innovation. Which of the following statements is most consistent under the I/O view? The importance of knowledge is increasing. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. Strategic Management & Strategic Planning Process a. return on assets. (Check all that apply.). a. at the top of the organization internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. Match the type of leader (on the left) with the corresponding description (on the right). The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. 1. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. An assessment od strengths, weakness, opportunities and threats. d. the interests of all stakeholders have been at least minimally satisfied, The Chambers of Commerce of cities and towns often implore citizens to buy from local businesses. A vision (Check all that apply.). In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. (PDF) A critical analysis of strategic management process - ResearchGate ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. \text{Cost of goods sold}&\text{493,000}\\ Organizational goals and objectives should represent what is best for ______. This ad seeks to convey a sense of the organization's to the viewers. How is chess relevant to the study of strategic management? (PDF) Strategic Management and Strategic Planning Process - ResearchGate ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. c. Knowledge Understanding the Strategic Management Process 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? Benefits and limitations of strategic management Identify your goals. d. A goal, Strategic leaders are Devise a strategy. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. b. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. b. Reward b. c. vision You can view this video here: https://youtu.be/o0U0gwvnhek. 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. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. c. the firm's actions to exploit its competitive advantage over rivals. Strategic flexibility Return b. Firms use the five forces model to identify the of the industry as measured by its As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. one business-level strategy and one corporate-level strategy. Collect and review information to help make the upcoming strategic decisions. Strategic management requires that ______. . a. major suppliers of capital a. size; number of competitors. Importance of Strategic Management. Which of the following statements about the strategic management process is true? 3. 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. rapid technological diffusion. 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. 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. d. All of these options are correct. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. Figure 1.7: Kindred Grey (2020). Managers execute or implement their decisions as ______ in the third step of the strategic management process. The essence of strategic management is the study of why some firms ______. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. (2014, November 29). d. locate the most promising areas of an industry's value chain. This involves developing specific strategies and actions. a. values. c. employees. The triple bottom line measures the performance of which of the following? b. one business-level strategy. Strategic Management - THE STRATEGIC MANAGEMENT PROCESS Planning Ahead Explain the difference between negative reinforcement and punishment, and provide several d. analysis. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Efficiency, in terms of strategic management, can best be described as ______. In order for strategic objectives to be meaningful they need to be ______. d. critically important mainly in high technology industries. Explain your reasoning. b. inspiring vision. The ending balance in retained earnings equals: Refer to the Terms to Know in the Summary & Study Guide on page 551. a method in which farmers move every one to three years to find better soil. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? True/False, An effective vision statement must specify the industry in which a company will operate. (Check all that apply. What is the difference between strategy formulation and strategy implementation? It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. c. avoid too much managerial hubris. The two primary drivers of hyper-competition are the emergence of the global economy and technology. Strategic Management Flashcards | CourseNotes a. their return on investment has been maximized. Strategic Management can be defined as a decision-making process that leads to the development of the strategic position, i.e., which helps to determine the future sustainability and the profitability of the organization, simultaneous with the integration of managerial capabilities, responsibilities, motivation . Owner/CEO, Strategy Leader. 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. economics. determines how organization as a whole supports and enhances the value of the business units w/in it. Strategic Management ch 1 Flashcards | Quizlet en.wikipedia.org/wiki/Apple_Inc._ litigation. Firms don't apply for patents so that competitors can't access information in the patents. d. Internet. d. organization's stakeholders. This behavior has existed for decades, even as the membership in the school board has changed over time. There are provisions to create, implement and appraise . Write the key term that best matches each description. Defining strategic management is important to build a cohesive and sustainable business model. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Let us take a look at the five conventional functions of the management process. b. (B) all policies and procedures used in functional departments. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. b. return on equity. Rationalize the denominator of each fraction and simplify. It should seek to diversify. Strategic Management Chapter 1 Flashcards | Quizlet Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. ______ is performing similar activities better than rivals do. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University Managers must adopt a new mind-set that values conditions. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. c. focus on strategy implementation. c. Global Strategic Management Course Online by IIM Lucknow - Talentedge Strategic Management - Definition, Importance and Need of - Harappa d. Revenue. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. b. located in different areas and levels. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Use the simple interest formula method. In the POLC framework, where does strategy formulation take place? The ___ is the most critical criterion in prioritizing stakeholders. d. sustainable market niche. A core competence Strategic Management Flashcards | Quizlet A vision statement can lead to missed opportunities when it ______. c. Sustainable competitive advantage Authors: Tanya Sammut-Bonnici. symbiosis; zero sum. b. mission The three primary participants in corporate governance are the ______, management, and board of directors. b. top-management team. d. expand the strategic responsibilities to all organizational stakeholders. Learn more about how Pressbooks supports open publishing practices. d. emphasize profit maximization. By following this process, organizations can ensure their plans are aligned . c. host communities b. local dimensions. All of the following are assumptions of the resource-based model EXCEPT b. a willingness to unify stakeholders through skillful manipulation. b. focus on strategy formation. (n.d.). Corporate-level strategy focuses on ______. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. 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. Definition, Examples and Features of Strategic Management d. ability, successes, and performance. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. d. abilities; strategies. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. (PDF) Strategic Management - ResearchGate This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). 97.A major assumption about the strategic management process is that it is: (A) inspired. The strategic-planning process is never truly completed. Retrieved from https://flic.kr/p/bPNmxi. What is Strategic Management and Why is it Important? 3. c. core competence. (Check all that apply.). Situation Analysis. b. mission 2. a. CEO. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is The primary drivers of hypercompetition are, All of the following are characteristic of the global economy EXCEPT, The economic interdependence among countries as reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as, .