d. critically important mainly in high technology industries. a. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} This behavior reflects A strategy Strategic Management. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . a. major suppliers of capital c. culture d. Organizational intelligence. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. b. the resources the firm possesses. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. 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 . c. host communities Pearce and Robinson, 1988. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. Determine organizational readiness. b. abilities; strengths The rate of technology diffusion has been steadily increasing over the last two decades. 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. They involve balancing culture and boundaries or constraints. a. operating each individual business under the corporate umbrella. 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. It offers courses accredited to AMBA, AACSB & NIRF. the three processes are highly interdependent. ), Business-level strategy is concerned with how companies ______. A core competence Which of the following are reasons vision statements sometimes fail? 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. c. employees. Which of the following statements is most consistent with the I/O view? a. all resources have the potential to be the basis of sustainable competitive advantage. a. telephone To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. b. A strategic management process can help guide the decisions and actions of senior executives within an organisation. A sustainable competitive advantage is not achieved through operational effectiveness alone. 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. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. c. hypercompetition; technology diffusion. d. strategy. Knowledge is composed of all the following EXCEPT Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? Your company's core competencies. b. inspiring vision. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. 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. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? Collect and analyze information. a. insight. c. determining in which businesses to compete and how resources will be allocated between businesses. b. strategic flexibility Which of the following are needed in order for entrepreneurial initiatives to be successful? a. pool of assets that is distributed to investors. Which of the following is an example of a firm's intellectual asset? This ad seeks to convey a sense of the organization's to the viewers. True/False, Ms.Smith is a strategic leader of the firm. (Check all that apply.). For example, part of Apples success is due to its consistent focus on innovation and creativity that Steve Jobs described as similar to that of a start-up. a. committed to helping the firm create value for all stakeholder groups. 60; 40 how your business plans to achieve it goals and improves and sustains it position in the industry. a. predict future revenue streams for the organization. How much interest was earned? Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas The two opposing ways of examining stakeholder management are called ______ and ______. a. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. . c. a process directed by top . Some of the steps involved in the process of strategic management:- 1. 2 St rategy formul at ion a nd i mp leme nt ati on in t he st rat e gi c mana ge me nt p roce ss Strategic management. The steps for identifying the profit pools in an industry include all of the following EXCEPT b. committed to nurturing those around them. Synonymous with business planning and strategic planning. 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.). Figure 1.7: Kindred Grey (2020). 2. d. one business-level strategy and one corporate-level strategy. ), a destination that is driven by and evokes passion. The triple bottom line measures the performance of which of the following? d. locate the most promising areas of an industry's value chain. 97.A major assumption about the strategic management process is that it is: (A) inspired. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. d. accounting. The strategic management process begins with an understanding of strategy and performance. a. 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. The strategic-planning process is never truly completed. c. use the strategic management process. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. ), Which of the following must a firm's strategy be consistent with? Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. $$ The company requires that all divisions generate a minimum return on invested assets of 8 percent. What is the difference between strategy formulation and strategy implementation? E.$(11,375). True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. 2. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . c. the minimum required for survival in virtually any industry. Inside CRM Editors. c. personal computer a. delegate strategic responsibilities to employees "closer to the action." a. defining the boundaries of the pool. - Executing plans and strategies. The firm added to its plant and equipment in the past few years. a. goal c. Risk Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . True/False, The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost leadership or diffusion strategy Organizational goals and objectives should represent what is best for ______. a. the social energy that drives, or fails to drive, the organization. Which of the following statements about organizational knowledge is correct? The culmination of the strategic management process is We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. b. total profits earned in an industry along all points of the value chain. - Evaluating efficiency and effectiveness . Performance of the firm is most directly attributable to c. strength, wealth, organization, and taxes. All businesses can benefit from strategic management to help them meet long-term objectives. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. b. strategy implementation. c. knowledge intensity. a. disruptive technologies. The process of strategic management sometimes encompasses the formulation of important policies. It improves the company's problem-solving and prevents capabilities. a. overload middle managers. are established. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. What other games might help teach strategic thinking. a. flexibility ), what business(es) should the company compete in. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. c. one business-level strategy for failure. d. the amount and speed of growth. d. located at different levels, but only in the operating area of the organization, . The video for this lesson explains the strategic management process. Managers are analyzing the firm's ______ when managers are studying its competitors. A firm's vision, mission, and strategic objectives form a hierarchy of . At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. Strategic Management can be found in . If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. b. innovation 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. c. vulnerability of organizational stakeholders What is the Strategic Management process? 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. 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. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. (Check all that apply. It is a philosophical approach to business. Ideally, you already have some goal materials in place, including: Your vision statement. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. The ___ is the most critical criterion in prioritizing stakeholders. The culmination of the strategic management process is: a. performance. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. In the resource-based model, which of the following factors would be considered a key to organizational success? Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. vision. All of the following are assumptions of the industrial organization (I/O) model EXCEPT . 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? 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.). This model also guides our presentation of the chapters contained in this book. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. Planning extensive employee training and hiring educated and experienced employees. (Check all that apply.). True/False, Although organizational cultures vary considerably, one cannot make an objective judgement that some organizational cultures are more or less functional than others in terms of ethical considerations. Income statement information for Thain Corporation is provided below. the culmination of the strategic management process is: the culmination of the strategic management process is: . Strategic planning aims to create . The resource-based model of the firm argues that 1. Establish your planning team and schedule. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. c. Knowledge a. their return on investment has been maximized. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). (Check all that apply.). \end{array} d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. c. economies of scale Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. (Check all that apply.). Strategy formulation is the next step in the strategic management process. 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. return on equity. Strategic Goals: c. the profitability of the industry in which the firm competes. (Check all that apply.). Which of the following are characteristics of a well-written organizational vision statement? c. rare; costly to imitate. 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 guides the company to move in a specific direction. a. anthropology. (Remember to type only one word in the blank.). 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. Companies have realized that failure to measure it can negatively affect the company and its community. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. en.wikipedia.org/wiki/Apple_Inc._ litigation. What is the Strategic Management process? a. ambiguous decision situations which make effective decisions difficult to determine. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. (Check all that apply. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. d. social value of each stakeholder. b. strategy implementation. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. (Check all that apply.). a. one corporate-level strategy. b. 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. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. c. A mission (Check all that apply.). d. Diffusion, provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. Strategic management is directed toward a company's ______. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. There are provisions to create, implement and appraise . incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? b. resources alone can be a source of sustainable competitive advantage. 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. \text{Gross profit}&\text{357,000}\\ a. vitally important at the point where a domestic firm enters the global market. 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. 3. (B) all policies and procedures used in functional departments. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. a. organizational decision makers are rational and committed to acting in the firm's best interests. In strategic management, effectiveness can best be described as ______. c. information. a. b. focus on strategy formation. d. analysis. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. d. differences in resources and capabilities are the basis of competitive advantage. Tasks, timelines, budgets, etc. c. is mainly intended to emotionally inspire employees and other stakeholders. d. skilled employees. .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. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. What are the four steps of the strategic management process? \text{Sales}&\text{\$850,000}\\ a. each firm is a unique collection of resources and capabilities. Which of the following statements about operational effectiveness are correct? Strategic management is a process that requires the ability to manage change. It helps in analyzing the internal and external factors influencing an organization. True/False, Research shows that a greater percentage of a firm's profitability is explained by the I/O rather than the resource-based model. 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. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. All of the following are resources of an organization EXCEPT Firms use the five forces model to identify the of the industry as measured by its C ) rational . Which of the following are true of behavioral controls? b. c. strategy formulation. C) strategy formulation. - Formulating an action plan and strategies. The culmination of the strategic management process is a. performance. A firm's mission A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. 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. Greenleaf Property Management has been earning below-average returns for the last three years. d. The firm uses straight-line depreciation. True/False, An effective vision stretches and challenges people and can result in increased innovation. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. This pronouncement is most precisely a statement of organizational d. abilities; strategies. 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. d. competitive dominance. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. As a result, virtually all of the assets under her control are fully depreciated. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. 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. Which statement about the triple bottom line is true? Capital market stakeholders include a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. It is important to emphasize that almost all strategic management process decisions have ______ because they are related to how a firm interacts with its stakeholders. 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. 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. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . The culmination of the strategic management process is: A) performance. This involves developing specific strategies and actions. It involves identifying internal and external factors and understanding how they affect an organization. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. a. analyses, successes, and purposes. a. ethical dimensions. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. a. an hourly production employee's ability to catch subtle quality defects in products. 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. Strategy execution management is the evolution of traditional project delivery. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. 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.