Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. Which of the following statements about operational effectiveness are correct? The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. A strategic management process is an essential tool for any organization looking to optimize performance and reach success. a. culture Explain the difference between negative reinforcement and punishment, and provide several Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Authors: Tanya Sammut-Bonnici. d. one business-level strategy and one corporate-level strategy. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. a. b. strategy implementation. D. $43,375. The rate of technology diffusion has been steadily increasing over the last two decades. This improved performance is best explained by Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. d. All of these options are correct, Strategic delegation helps Inside CRM Editors. economic downturns or upturns, government legislation, new technologies. It determines which business(es) should be in the company's portfolio. Effective strategic leaders A vision b. b. the industry's structural characteristics have little impact on a firm's performance over time. Strategic Management: Chapter 2 Multiple Choi, Barnes & Noble, Inc: Maintaining A Competitiv, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value. The process hinges on the philosophical approach that if a leader "thinks . d. total profits that can be divided among the competitors within an industry. a. pool of assets that is distributed to investors. b. focus on strategy formation. Which of the following statements is most consistent under the I/O view? Your mission statement. d. All of these options are correct. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. Continuous learning $$ c. the I/O model. Firms use both the ______ and ______ models. Environmental and internal scanning is the next stage in the process. a. delegate strategic responsibilities to employees "closer to the action." Alfred Chandler, 1962. a. values. 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. d. located at different levels, but only in the operating area of 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". The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. All of the following are resources of an organization EXCEPT one business-level strategy and one corporate-level strategy. 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. c. avoid too much managerial hubris. 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. (Check all that apply.). The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. Firms use the five forces model to identify the of the industry as measured by its The two primary drivers of hyper-competition are the emergence of the global economy and technology. Knowledge is an intangible resource. b. a firm's profit margin yields an above-average return to its capital market stakeholders. 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. c. political dimensions. a. strategy, wealth, organization, and threats. 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? UMT360's Strategy Execution Management solution. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. It improves the company's problem-solving and prevents capabilities. Name two benefits workers take for granted now that did not exist before labor organized. d. analysis. D) analysis. Managers must adopt a new mind-set that values conditions. a. suppliers. 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 . 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. examples of each based on your own experiences. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. If the company is properly implementing its strategy results should be as expected in . When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. ____has become the second-largest economy in the world. (Check all that apply.). b. predict growth in sales over the medium to long range. Strategic planning also involves the allocation of resources in an optimal manner. a. anthropology. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. Figure 1.7: Kindred Grey (2020). (Check all that apply. c. employees. This pronouncement is most precisely a statement of organizational b. analyses, strategies, and performance. They involve balancing culture and boundaries or constraints. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. c. profits that are accrued when a firm earns above-average returns. 2. True/False, Ms.Smith is a strategic leader of the firm. c. vision. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. a. strategic competitiveness b. a permanently sustainable . d. inclusive. 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. A firm's mission how your business plans to achieve it goals and improves and sustains it position in the industry. 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. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. Overall, strategic management is an important part of an organization's development and overall performance. A company competing in a single product market has ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. The firm added to its plant and equipment in the past few years. d. products that were not imitated by competitors. 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. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. (Check all that apply.). Strategy evaluation is the process by which the management assesses how well a chosen strategy has been implemented and how successful or otherwise the strategy is. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. shareholders, management, and the board of directors. Collect and review information to help make the upcoming strategic decisions. a. a. goal 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. What are the four levels of a company's strategy formulation? . (Check all that apply. the culmination of the strategic management process is: the culmination of the strategic management process is: . The strategic management provides a base for the organization on the basis of which progress can be measured and on the basis of the same, the employees can be compensated. True or false: Intended strategy rarely survives in its original form. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Efficiency, in terms of strategic management, can best be described as ______. Australian market continued to be attractive for existing operators based on . a. flexibility b. innovation c. speed d. All of these options are correct. a. flexibility Greenleaf Property Management has been earning below-average returns for the last three years. It's an important step since it is here that businesses can review performance metrics of all components and make any tweak necessary to ensure accomplishment of long-term goals. b. a willingness to unify stakeholders through skillful manipulation. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. Defend your answer. 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. Prepare a vertical analysis of the income statement for Thain Corporation. 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. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. 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 Which statement is true? . A firm's hierarchy of goals include its ______. c. disruptive technologies. The I/O model is grounded in 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. Chapter Layout for Strategic Management. CC BY-SA 4.0. The ___ is the most critical criterion in prioritizing stakeholders. All of the following are assumptions of the industrial organization (I/O) model EXCEPT True/False, Resources are considered rare when they have no structural equivalent. 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. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. It is a continuous process of analyzing and evaluating an organization's internal and external environment, setting objectives and goals, developing strategies, and implementing and controlling those strategies. 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. 60; 40 d. competitive dominance. A vision statement can lead to missed opportunities when it ______. ), Which of the following are examples of business-level strategies? It is a philosophical approach to business. The culmination of the strategic management process is Consequently, executives must be careful to monitor and to interpret the events in their environment, to take appropriate actions when change is needed, and to monitor their performance to ensure that their firms are able to survive and, it is hoped, thrive over time. - Resource analysis to select workforce and assign suitable tasks. a. size; number of competitors. In the POLC framework, where does strategy formulation take place? Here are the key elements of strategic management. Rationalize the denominator of each fraction and simplify. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. 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. b. mission 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. Which of the following statements is most consistent with the I/O view? . True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. (Check all that apply.). organizational versus individual rationality. d. expand the strategic responsibilities to all organizational stakeholders. b. estimating the overall size of the pool. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. Let us take a look at the five conventional functions of the management process. Strategy implementation is the final stage of the process. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. d. attractiveness; profitability. determines how organization as a whole supports and enhances the value of the business units w/in it. a. are willing to be brutally honest. For instance, a SWOT analysis (Strengths-Weaknesses . b. success, weakness, opportunities, and taxes. b. weak competition It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. Generally speaking, product market stakeholders are satisfied when Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). Chapter 3 Evaluating the External Environment examines the topic of evaluating the external environment in detail, and Chapter 4 Evaluating the Internal Environment presents concepts and tools for managing firm resources. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies In order for strategic objectives to be meaningful they need to be ______. c. the profitability of the industry in which the firm competes. This is the final stage of the strategic management process. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. A strategic management process can help guide the decisions and actions of senior executives within an organisation. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . b. tighten loan covenants. In a diversified firm, corporate-level strategy is concerned with b. I/O; resource-based This is because the organization's role as a taxpayer is most important to ___ as stakeholders. b. a functional, although unethical, culture of the school board. 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. b. psychology. 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. C) strategy formulation. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. c. rare; costly to imitate. d. accounting. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. a. the social energy that drives, or fails to drive, the organization. (B) all policies and procedures used in functional departments. Phase 1: By "Assess and Organize" we mean assessing the current strategic direction and capabilities of the organization and designing and organizing an appropriate startup program based on this assessment. c. The firm has a lot of old plant and equipment. Income statement information for Thain Corporation is provided below. Which of the following are characteristics of a well-written organizational vision statement? The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. c. 36; 20 $$ 1. Which of the following state the goals and intentions that help define a firm's competitive advantage? (Remember to type only one word in the blank.). Sound strategies are of no value if they ______. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? Which of the following is an example of a firm's intellectual asset? (Check all that apply.). Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. d. the amount and speed of growth. a. committed to helping the firm create value for all stakeholder groups. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. b. innovation Return b. b. strategic flexibility Reward A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". It involves action plans that ensure continued performance and thriving progression. d. government regulators. b. television Collect and analyze information. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . c. ability, strategies, and purposes. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. . d. organization's stakeholders. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. Organizational stakeholders include How to develop a strategic management process. b. abilities; strengths (Check all that apply.). SWOT stands for 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. What is the difference between strategy formulation and strategy implementation? c. rational. This activity is important because proper use of strategic management techniques . The message of the ad is that this firm's accountants love their work. Which of the following are needed in order for entrepreneurial initiatives to be successful? d. A goal, Strategic leaders are 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.). 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. For example, intellectual property is a vital resource for Apple. You can view this video here: https://youtu.be/o0U0gwvnhek. It requires incorporating both short-term and long-term perspectives. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. c. employees. d. a school board lacking in core competencies. Strategic management is the management of an organization's resources to achieve its goals and objectives. A business-level strategy describes How is chess relevant to the study of strategic management? 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. .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. This is because the organization's role as a taxpayer is most important to as stakeholders. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? Performance of the firm is most directly attributable to It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . Who typically develops a firm's mission statement? the three processes are highly interdependent. 1. Strategic management process. A capability a. d: 70: 3884478507 Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . 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 . c. focus on strategy implementation. statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage. a. Perpetual 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? c. speed c. culture b. b. d. The firm uses straight-line depreciation. b. 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. Planning extensive employee training and hiring educated and experienced employees. The culmination of the strategic management process is: Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions. vision. New markets created by iPods, PDAs, and WiFi are a result of: Henry Ford once said, "If I had asked people what they wanted, they would have said faster horses." Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It involves identifying internal and external factors and understanding how they affect an organization. c. the minimum required for survival in virtually any industry. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. C.$54,375. To implement a strong strategy effectively, an experienced . Figure 1.8: Shirinsokhan, Mahmoudreza. a. maximizing the firm's return on investment. a. only the CEO The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. b. shareholders d. culture. c. Sustainable competitive advantage The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. Feedback may occur at all times to revise these actions. strategic objectives. This behavior reflects d. skilled employees. . c. information. a. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. a. their return on investment has been maximized. Match the type of leader (on the left) with the corresponding description (on the right). The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. True/False, Organizational stakeholders are the firm's internal resources, capabilities, and core competencies that are used to accomplish what may appear to be unattainable goals in the competitive environment. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. The strategic management process begins with an understanding of strategy and performance. The culmination of the strategic management process is: A) performance. b. executives control strategy implementation. [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.". Devise a strategy. Apple Inc. 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. c. analyses; strategies c. one business-level strategy for failure. Strategic management involves setting objectives, analyzing the competitive environment . True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. c. determining in which businesses to compete and how resources will be allocated between businesses. b. return on equity. Determine organizational readiness. c. strength, wealth, organization, and taxes. a. major suppliers of capital d. hypercompetition. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Measure the progress by comparing the plan against actual results. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management?
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