Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? b. a. organizational decision makers are rational and committed to acting in the firm's best interests. (B) team-based. b. estimating the overall size of the pool. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. d. strengths, weaknesses, opportunities, and threats. The culmination of the strategic management process is: a. performance. The second step in the strategic management process is ______. Which of the following are reasons vision statements sometimes fail? Companies have realized that failure to measure it can negatively affect the company and its community. This ad seeks to convey a sense of the organization's to the viewers. Defend your answer. 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. a. flexibility b. innovation c. speed d. All of these options are correct. CEOs, such as late Apple founder Steve Jobs, must be able to carefully manage the possible actions that their firms might take to deal with changes that occur in their environment. c. companies provide a dynamic, stimulating, and rewarding work environment. This is because the organization's role as a taxpayer is most important to as stakeholders. a. globalization. c. the lack of an organizational mission for the school board. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. 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 . _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. c. Risk Here are the key elements of strategic management. (Check all that apply. c. In reporting her investment center's performance for the past 10 years, the manager of the Snack Division accounted for the depreciation of her division's assets by using an accelerated depreciation method allowed for tax purposes. The two opposing ways of examining stakeholder management are called ______ and ______. E.$(11,375). a. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. In a diversified firm, corporate-level strategy is concerned with Effective strategies Apple uses to create loyal customers. All of the following are resources of an organization EXCEPT Capital market stakeholders include 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. Effective strategic leaders b. global competition. 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. 90; 10 Strategic Management is a stream of decisions and actions which lead to the development of an effective strategy or strategies to help achieve corporate objectives. c. weak competitors in the industry. Sound strategies are of no value if they ______. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. business, corporate, international, and entrepreneurial. a. b. executives control strategy implementation. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. b. expertise. b. inspiring vision. a. vitally important at the point where a domestic firm enters the global market. a. flexibility Sun Tzu's best-known work is The Art of War. a. ambiguous decision situations which make effective decisions difficult to determine. d. All of these options are correct. \text{Sales}&\text{\$850,000}\\ strategic objectives. a. the businesses in which the company intends to compete. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. The resource-based model of the firm argues that It is important to consider that the decision: has ethical implications for organizational stakeholders. Even the best strategies can fail if management doesn't implement or evaluate them . d. the firm's chief executive officer, A prominent national accounting firm runs television advertisements showing an accountant working alone late in the office on a client's project, while clenching a long-stemmed rose in his teeth and grinning ecstatically. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. b. a. power of each stakeholder Prepare a vertical analysis of the income statement for Thain Corporation. (Check all that apply.). b. return on equity. b. Figure 1.8: Shirinsokhan, Mahmoudreza. 2. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. b. shareholders. examples of each based on your own experiences. a. c. use the strategic management process. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. How is chess relevant to the study of strategic management? The video for this lesson explains the strategic management process. A major assumption about the strategic management process is that it is This behavior reflects Name two benefits workers take for granted now that did not exist before labor organized. b. determining how each functional department of the firm will operate. Kick-Off Meeting: 1 hr. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. symbiosis; zero sum. c. strategy formulation. Tasks, timelines, budgets, etc. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. \text{Cost of goods sold}&\text{493,000}\\ Make Better business decisions: It is important to understand the difference between a great idea and a good idea. Rationalize the denominator of each fraction and simplify. What other games might help teach strategic thinking. b. strategy implementation. c. in the finance area c. hypercompetition; technology diffusion. c. the key to earning above-average returns is strategic flexibility. c. employees. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Collect and review information to help make the upcoming strategic decisions. (Check all that apply.). Return b. 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 . d. located at different levels, but only in the operating area of the organization, . b. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. Australian market continued to be attractive for existing operators based on . The mission of IIM Lucknow is to improve management systems with regard to business, industry and public services through pursuit of excellence in management education, research, consultancy and training. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. b. rapid technological diffusion. Some of the steps involved in the process of strategic management:- 1. b. all policies and procedures used in functional departments. Greenleaf will not be able to minimally satisfy all stakeholders. d. a firm's resources, intent, and mission. 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. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. At this stage, your strategy is already in action and you need to measure the effectiveness of the 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". (Check all that apply.). b. psychology. c. ability, strategies, and purposes. a. only the CEO c. the profitability of the industry in which the firm competes. ), what business(es) should the company compete in. Which of the following state the goals and intentions that help define a firm's competitive advantage? C.$54,375. Organizational goals and objectives should represent what is best for ______. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. c. strategy . The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. a. values. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? 5. Strategic Goals: (. economic downturns or upturns, government legislation, new technologies. Figure 1.7: Kindred Grey (2020). Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. b. a willingness to unify stakeholders through skillful manipulation. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. . Strategic Management Process [Video]. (Remember to type only one word in the blank.). For instance, a SWOT analysis (Strengths-Weaknesses . c. speed - Resource analysis to select workforce and assign suitable tasks. The culmination of the strategic management process is UMT360's Strategy Execution Management solution. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. The two primary drivers of hyper-competition are the emergence of the global economy and technology. d. coordinating the vision and mission of each subsidiary firm. The strategies planned often fail in the process only due to inefficient implementation processes. Write the key term that best matches each description. c. one business-level strategy for failure. YouTube. d. hypercompetition. 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. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. . a. insight. d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. In the instance, the implementation . 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. one business-level strategy. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. b. weak competition c. seek to increase their power. Estimated Duration. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. A firm's vision, mission, and strategic objectives form a hierarchy of . a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The Jayhawks Rising Strategic Alignment Model is the culmination of a multi-year strategic planning process involving many groups and individuals who proposed hundreds of ideas for how to advance us toward our vision to be an exceptional learning community that lifts each member and advances society. Continuous learning Which of the following statements about the strategic management process is true? 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. (Check all that apply.). Strategic management process can be described as a set of managerial decisions and actions which determines the long-run direction and performance of the organization'. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. 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. It is long-term in nature. b. Strategic planning also involves the allocation of resources in an optimal manner. c. defining the competitors in the pool. 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. In order for strategic objectives to be meaningful they need to be ______. c. obtaining reliable products at the lowest possible price. Firms use the five forces model to identify the of the industry as measured by its _________ strategy is a combination of deliberate and emergent strategies. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. Use the simple interest formula method. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. In the resource-based model, which of the following factors would be considered a key to organizational success? - Formulating an action plan and strategies. The first step in the strategic management process is to evaluate where you're going, and why. The strategic management process begins with an understanding of strategy and performance. a. strategy, wealth, organization, and threats. Managers must take a(n) ______ view of the organization and assess how functional areas and activities fit together so that the organization can achieve its goals and objectives. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. 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). True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. (Check all that apply. It guides the company to move in a specific direction. A firm's hierarchy of goals include its ______. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. ), Which of the following are examples of business-level strategies? 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 assumptions of the I/O model and the resource-based model are contradictory. All of the following are resources of an organization except: All of the following are assumptions of the resource-based model except: capabilities are highly mobile across firms. a. culture Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . b. is an internally focused affirmation of the organization's financial, social, and ethical goals. We present a model of the strategic management process in Figure 1.7, Overall Model of 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. 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. Social responsibility is the expectation that businesses or individuals will strive to ______. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. c. the interests of the firm's organizational stakeholders have been maximized. c. the CEO, COO, and CFO only. Which of the following statements is most consistent under the I/O view? D. $43,375. (Check all that apply.). C ) rational . c. vision Strategic management is directed toward the organization's overall organizational ________ and ______. 3. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . 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." Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. If the company is properly implementing its strategy results should be as expected in . On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. 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. a. their return on investment has been maximized. b. a functional, although unethical, culture of the school board. ______ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies. (Check all that apply. True/False, Ms.Smith is a strategic leader of the firm. Collect and analyze information. The final responsibility for forming the organization's mission lies with the c. strategic power (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. \text{Gross profit}&\text{357,000}\\ It helps in analyzing the internal and external factors influencing an organization. c. the minimum required for survival in virtually any industry. d. skilled employees. The rate of technology diffusion has been steadily increasing over the last two decades. a. ethical dimensions. Match the type of leader (on the left) with the corresponding description (on the right). This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University d. competitive dominance. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. 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. 09.23.22 a. at the top of the organization What are the four levels of a company's strategy formulation? In the POLC framework, where does strategy implementation take place. Feedback may occur at all times to revise these actions. c. Sustainable competitive advantage Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Retrieved from https://flic.kr/p/bPNmxi. 3. A Deeper Dive into the Strategic Management Process. 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. 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. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. c. economies of scale b. mission. Strategic planning process is a systematic or emerged way of performing strategic planning in the organization through initial assessment, thorough analysis, strategy formulation, its implementation and evaluation. b. strategy implementation. ), Business-level strategy is concerned with how companies ______. The ability to effectively and efficiently access and use information is The is the most critical criterion in prioritizing stakeholders. ____has become the second-largest economy in the world. Overall, strategic management is an important part of an organization's development and overall performance. Income statement information for Thain Corporation is provided below. It involves action plans that ensure continued performance and thriving progression. c. political dimensions. a. the power of the financial market stakeholders. c. decisive. 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. A vision The strategic management process is. the three processes are highly interdependent. . In the POLC framework, where does strategy formulation take place? b. tighten loan covenants. Meaning of Strategic Management. Strategy execution management is the evolution of traditional project delivery. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? Measure the progress by comparing the plan against actual results. The strategic management process is This is the final stage of the strategic management process. c. A mission d. is developed by a firm before the firm develops its vision. In this latter case, performance is the result of a rare event that is itself the culmination of a long and ongoing process of daily . c. the firm's actions to exploit its competitive advantage over rivals. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. a. telephone en.wikipedia.org/wiki/Apple_Inc._ litigation, https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109, https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. The 5 stages of the strategic management process. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. Dissatisfied capital market stakeholders may ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. Strategic management involves setting objectives, analyzing the competitive environment . Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas c. rational. areas, are relatively rare. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. c. core competence. Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. 2. (C) rational. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. a. c. competition; competency b. customers pay the highest sustainable price for the goods and services they receive. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Determine organizational readiness. 1+x1x. A customer can buy an iPod that plays music from iTunesall of which can be stored in Apples Mac computer (Inside CRM Editors, n.d.). d. increasing the profitability of the firm. b. total profits earned in an industry along all points of the value chain. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. 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. Importance of Strategic Management. How much interest was earned? Which of the following is an example of a firm's intellectual asset? . Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. A company competing in a single product market has. (Check all that apply. d. abilities; strategies. Financial markets often place an emphasis on managers meeting ______ performance goals. A retail outlet can attempt several remedies to improve profitability to meet the expectations of its ___ stakeholders, including closing stores, changing the top management team, and seeking potential buyers. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. b. only top managers Devise a strategy. Strategy implementation is the final stage of the process. b. achieve strategic competitiveness. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. Synonymous with business planning and strategic planning. Litigation. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. New markets created by iPods, PDAs, and Wi-Fi are a result of (B) all policies and procedures used in functional departments. True or false: Intended strategy rarely survives in its original form. C) strategy formulation. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. Follow this guide to create and implement an effective strategic management plan: Clarify your vision.