c. the profitability of the industry in which the firm competes. 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. 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. Strategic management is directed toward the organization's overall organizational ________ and ______. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. a. at the top of the organization b. mission As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Which of the following statements regarding corporate-level strategy are correct? a. defining the boundaries of the pool. ), what business(es) should the company compete in. How much interest was earned? 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 firm has achieved ______ when it successfully formulates and implements a value-creating strategy. All of the following are assumptions of the resource-based model EXCEPT Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . A Deeper Dive into the Strategic Management Process. a. delegate strategic responsibilities to employees "closer to the action." Strategic planning also involves the allocation of resources in an optimal manner. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Effective strategies Apple uses to create loyal customers. b. only top managers Importance of Strategic Management. (Check all that apply.). Organizational culture refers to The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. d. hypercompetition. determines how organization as a whole supports and enhances the value of the business units w/in it. A company competing in a single product market has. b. resources to implement strategies are firm-specific and attached to firms over the long-term. a. power of each stakeholder 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. 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. 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. is a capacity for a set of resources to perform a task or an activity in an integrative manner. a. size; number of competitors. It requires incorporating both short-term and long-term perspectives. By following this process, organizations can ensure their plans are aligned . d. Organizational intelligence. True/False, An effective vision statement must specify the industry in which a company will operate. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. Which of the following statements about organizational knowledge is correct? a. Perpetual The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. Devise a strategy. Tasks, timelines, budgets, etc. b. an important source of competitive advantage in virtually all industries. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. b. television Authors: Tanya Sammut-Bonnici. 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. Defend your answer. 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. personal computer The ability to effectively and efficiently access and use information is 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. It offers courses accredited to AMBA, AACSB & NIRF. c. employees. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. C ) rational . c. use the strategic management 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. c. employees. a. goal b. analyses, strategies, and performance. 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. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. c. the key to competitive success is the structure of the industry in which the firm competes. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. What is the difference between strategy formulation and strategy implementation? b. the industry's structural characteristics have little impact on a firm's performance over time. The two primary drivers of hyper-competition are the emergence of the global economy and technology. Which statement about the triple bottom line is true? Managers must adopt a new mind-set that values conditions. (Check all that apply.). UMT360's Strategy Execution Management solution. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. The first step in the strategic management process is to evaluate where you're going, and why. Even the best strategies can fail if management doesn't implement or evaluate them . Which of the following are reasons vision statements sometimes fail? a. analyses, successes, and purposes. New markets created by iPods, PDAs, and Wi-Fi are a result of Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. 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. c. decisive. Which statement is true? Which of the following are characteristics of a well-written organizational vision statement? b. inspiring vision. Overall, strategic management is an important part of an organization's development and overall performance. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. Inside CRM Editors. .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. d. easy to implement; unique. a. located only at the executive level. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. In order for strategic objectives to be meaningful they need to be ______. c. strategy formulation. b. estimating the overall size of the pool. Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. Identify your goals. Determine organizational readiness. Continuous learning The strategic management process is. a. strategy, wealth, organization, and threats. Strategy implementation is the final stage of the process. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. What are the four levels of a company's strategy formulation? areas, are relatively rare. c. Knowledge a. analyses; strengths Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. (Check all that apply.). b. d. products that were not imitated by competitors. 1. 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. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. A vision statement can lead to missed opportunities when it ______. The resource-based view of the firm It improves the company's problem-solving and prevents capabilities. Strategic management is a process that requires the ability to manage change. d. A goal, Strategic leaders are The video for this lesson explains the strategic management process. symbiosis; zero sum. Alfred Chandler, 1962. How do you think the economic growth of developing countries will affect you and your family in the future? (Check all that apply.). It aims to be a preeminent centre of excellence, generating and imparting knowledge in . In the strategic management process ASP stands for . A strategy is typically a higher level, broad goal, without a lot of specifics. d. organization's stakeholders. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. Planning in management is a process of choosing apt goals and actions to pursue, and then determining what strategies to use, what steps to take, and what resources are needed to achieve the goals. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. The is the most critical criterion in prioritizing stakeholders. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. 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. . Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas a. - Evaluating efficiency and effectiveness . regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. Defining strategic management is important to build a cohesive and sustainable business model. 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? At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. A firm's vision, mission, and strategic objectives form a hierarchy of . 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. The goal of strategy implementation is to develop a permanent competitive advantage. 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. Explain Strategy formulation. a. telephone 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 . 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. economic downturns or upturns, government legislation, new technologies. d. suppliers of capital. Firms use the five forces model to identify the of the industry as measured by its All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". a. predict future revenue streams for the organization. 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". Want to create or adapt books like this? (Check all that apply. c. hypercompetition; technology diffusion. a. maximizing the firm's return on investment. c. rational. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. A capability The strategic leader's work is characterized by E.$(11,375). 2. Which of the following are stakeholder groups that managers should consider when making decisions? Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. (Check all that apply.). 60; 40 c. the I/O model. The rate of technology diffusion has been steadily increasing over the last two decades. An assessment od strengths, weakness, opportunities and threats. The steps in the strategic management process include the seven - the development of vision and mission, external and internal environment analysis, establishing long-term objectives, generating, evaluating, and selecting strategies, implementation, and strategy evaluation and control. c. is mainly intended to emotionally inspire employees and other stakeholders. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. d. the CEO, COO, and CFO only. 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. d. All of these options are correct. \begin{array}{llr} c. strategy formulation. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 2. a. goal b. strategy c. tactic d. mission ANSWER: b 104. d. unions, Organizational stakeholders are usually satisfied when The culmination of the strategic management process is a. performance. The ___ is the most critical criterion in prioritizing stakeholders. a. disruptive technologies. ______ 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. b. abilities; strengths d. concentration on the practical day-to-day aspects of the organization's operations. (Check all that apply. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. D) analysis. c. employees. en.wikipedia.org/wiki/Apple_Inc._ litigation. b. psychology. Which of the following statements is most consistent under the I/O view? (Check all that apply. Dissatisfied capital market stakeholders may d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. A firm's mission True/False, Resources are considered rare when they have no structural equivalent. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. (C) rational. Estimated Duration. c. profits that are accrued when a firm earns above-average returns. 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. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. Strategic management of an organization entails which of the following ongoing processes? Capital market stakeholders include business, corporate, international, and entrepreneurial. c. weak competitors in the industry. [1] Using the definition of strategic management above then, the strategic management process is "the coordinated means by which an organization achieves its goals and objectives.". c. A mission a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. 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. b. c. avoid too much managerial hubris. 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. $46,375 In strategic management, effectiveness can best be described as ______. c. knowledge intensity. 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. ____has become the second-largest economy in the world. c. the CEO, COO, and CFO only. b. all policies and procedures used in functional departments. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. b. strategy implementation. a. the march of globalization. The third step of the strategic management process is the ______ step. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. In smaller, new venture firms, returns are sometimes measured in terms of are established. a. flexibility b. innovation c. speed d. All of these options are correct. SWOT stands for a. It helps in analyzing the internal and external factors influencing an organization. For example, intellectual property is a vital resource for Apple. This ad seeks to convey a sense of the organization's to the viewers. The strategic management process is more than a set of rules to follow. This behavior has existed for decades, even as the membership in the school board has changed over time. 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. people throughout the organization strive toward overall goals. Companies have realized that failure to measure it can negatively affect the company and its community. a. all resources have the potential to be the basis of sustainable competitive advantage. Strategy Evaluation. The strategic management process is Learn more about how Pressbooks supports open publishing practices. a. each firm is a unique collection of resources and capabilities. d. intelligence. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. d. The firm uses straight-line depreciation. Strategic management is the management of an organization's resources to achieve its goals and objectives. d. abilities; strategies. To implement a strong strategy effectively, an experienced . c. in the finance area Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . 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.
South Carolina State Women's Basketball Coach, Articles T