1+x1x. C ) rational . True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. Strategic planning aims to create . 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. a functional, although unethical, culture of the school board. 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. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. a. each firm is a unique collection of resources and capabilities. For instance, a SWOT analysis (Strengths-Weaknesses . Income statement information for Thain Corporation is provided below. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. a. the key factor in success is choosing the correct industry in which to compete. The process hinges on the philosophical approach that if a leader "thinks . To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. c. profits that are accrued when a firm earns above-average returns. The triple bottom line measures the performance of which of the following? c. employees. Explain the difference between negative reinforcement and punishment, and provide several During the ______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries? ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. a. c. an ability to identify the correct solutions to long-range problems. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. Which of the following are stakeholder groups that managers should consider when making decisions? \text{Gross profit}&\text{357,000}\\ The firm makes less efficient use of its assets than other firms. Identify your goals. a. size; number of competitors. a. suppliers. Which of the following statements is most consistent with the I/O view? c. host communities d. ability, successes, and performance. The culmination of the strategic management process is c. analyses; strategies . d. personality. The culmination of the strategic management process is a. performance. . This pronouncement is most precisely a statement of organizational 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. 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. 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). c. determine whether an industry will be viable in the long term. b. strategic flexibility 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. Strategic management is a process that requires the ability to manage change. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. A firm's vision, mission, and strategic objectives form a hierarchy of . 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. (Remember to type only one word in the blank.). 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. The process of creating strategy a. anthropology. 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. Continuous learning Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. The process of implementation of strategy starts with the identification of key managerial tasks which form the basis for the creation of strategy starts with the identification of key 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. In Wikipedia. The strategic management process begins with an understanding of strategy and performance. (B) all policies and procedures used in functional departments. 3. A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. C.$54,375. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Rationalize the denominator of each fraction and simplify. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. (Check all that apply. Strategic management is directed toward the organization's overall organizational ________ and ______. 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. 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.). What are the four steps of the strategic management process? The culmination of the strategic management process is: A) performance. Measure the progress by comparing the plan against actual results. Reward c. Risk d. Revenue ANSWER: c 105. c. capabilities are highly mobile across firms. c. Knowledge Strategic management is the process of defining and implementing an organization's strategy. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Strategic flexibility All of the following are assumptions of the resource-based model EXCEPT . a. strategy, wealth, organization, and threats. 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. All of the following are assumptions of the industrial organization (I/O) model EXCEPT Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas d. coordinating the vision and mission of each subsidiary firm. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. (Check all that apply.). 60; 40 Which of the following are characteristics of a well-written organizational vision statement? ______ is performing similar activities better than rivals do. b. customers pay the highest sustainable price for the goods and services they receive. The resource-based model of the firm argues that To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. b. b. one business-level strategy. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. Planning extensive employee training and hiring educated and experienced employees. University of Malta. c. vision. $$ Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. c. strategy formulation. a. located only at the executive level. b. resources alone can be a source of sustainable competitive advantage. Kick-Off Meeting: 1 hr. (Check all that apply.). . c. hypercompetition; technology diffusion. a. all resources have the potential to be the basis of sustainable competitive advantage. It involves identifying internal and external factors and understanding how they affect an organization. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. What is the Strategic Management process? strategic objectives. b. top-management team. Some of the steps involved in the process of strategic management:- 1. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. In a diversified firm, corporate-level strategy is concerned with It helps in analyzing the internal and external factors influencing an organization. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. 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. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. 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. The is the most critical criterion in prioritizing stakeholders. en.wikipedia.org/wiki/Apple_Inc._ litigation. Chess CC BY-NC 2.0. c. core competence. 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. McDonald's has been able to a. earn above-average returns. 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 . Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? A firm's mission a. strategic competitiveness b. a permanently sustainable . (Check all that apply.). d. the amount and speed of growth. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. c. obtaining reliable products at the lowest possible price. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. areas, are relatively rare. d. strategy. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University b. strategy b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 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 . In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. a. ethical dimensions. 3. A classic management tool that incorporates the idea of scanning elements both external and internal to the firm is SWOT (strengths, weaknesses, opportunities, and threats) analysis. c. vulnerability of organizational stakeholders b. oil drilling rights in a promising region. \text{Cost of goods sold}&\text{493,000}\\ 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. b. predict growth in sales over the medium to long range. b. located in different areas and levels. b. rapid technological diffusion. (n.d.). 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. In the POLC framework, where does strategy implementation take place. The I/O model is grounded in Disruptive It is important to consider that the decision: has ethical implications for organizational stakeholders. Successful strategic leaders are c. knowledge intensity. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. A core competence True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. True/False, Ms.Smith is a strategic leader of the firm. a. defining the boundaries of the pool. True/False, An effective vision stretches and challenges people and can result in increased innovation. Which of the following statements about organizational knowledge is correct? Environmental and internal scanning is the next stage in the process. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. Strategic management requires that ______. d. estimating the size of the value-chain activity in the pool. A company had a beginning balance in retained earnings of $52,000. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. b. the resource-based model. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. b. Your mission statement. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. It is a process that requires a systematic . True/False, The resource-based model assumes that firms must have resources that are rare or costly to imitate to form a basis for competitive advantage. a. competitive resilience a. the march of globalization. Meaning of Strategic Management. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. 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. d: 70: 3884478507 c. focus on strategy implementation. a. major suppliers of capital Which of the following are true of behavioral controls? Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. 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 Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. a. values. 1. d. easy to implement; unique. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? a. vitally important at the point where a domestic firm enters the global market. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. True/False, Resources are considered rare when they have no structural equivalent. b. expertise. c. the CEO and top managers Who makes the strategic decisions for most organizations? Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. How is chess relevant to the study of strategic management? 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. c. the key to earning above-average returns is strategic flexibility. a. overload middle managers. Readiness assessment. c. use the strategic management process. This is because the organization's role as a taxpayer is most important to as stakeholders. A company competing in a single product market has By following this process, organizations can ensure their plans are aligned . It determines which business(es) should be in the company's portfolio. 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. a. return on assets. 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. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. c. disruptive technologies. Determine organizational readiness. The culmination of the strategic management process is: performance Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity. (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. people throughout the organization strive toward overall goals. b. estimating the overall size of the pool. 5. a. operating each individual business under the corporate umbrella. What other games might help teach strategic thinking. Firms don't apply for patents so that competitors can't access information in the patents. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. c. the minimum required for survival in virtually any industry. 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. c. economics. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. 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. 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? - Evaluating efficiency and effectiveness . Explain your reasoning. 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. The two opposing ways of examining stakeholder management are called ______ and ______. c. employees. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. b. an important source of competitive advantage in virtually all industries. . Want to create or adapt books like this? True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . As we have noted in this introductory chapter, strategic management is both an art and a science, and it involves multiple conceptualizations of the notion of strategy drawn from recent and ancient history. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. (Check all that apply.). A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. d. competitive dominance. 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. _________ strategy is a combination of deliberate and emergent strategies. Figure 1.8: Shirinsokhan, Mahmoudreza. 90; 10 In order to cope with hypercompetition, firms need to develop through continuous learning. a. telephone All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. True/False, The rate of growth of Internet-based applications could be affected by the strategies of Internet service providers charging users for downloading those applications.
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