Managers must adopt a new mind-set that values conditions. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. Financial markets often place an emphasis on managers meeting ______ performance goals. It involves action plans that ensure continued performance and thriving progression. c. the CEO, COO, and CFO only. a. strategic mission. 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. d. the amount and speed of growth. [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.". Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas c. employees. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. 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? d. hypercompetition. This is because the organization's role as a taxpayer is most important to as stakeholders. a. defining the boundaries of the pool. . This model also guides our presentation of the chapters contained in this book. After executing the environmental analysis process, management . . a. flexibility B. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. The Princeton Alliance Church states in its website that "PAC exists to help you live life to the fullest by knowing God, developing community and bringing hope." b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. b. inspiring vision. d. products that were not imitated by competitors. Successful strategic leaders are The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. \end{array} Study with Quizlet and memorize flashcards containing terms like . b. strategy c. an ability to identify the correct solutions to long-range problems. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. c. Risk (Check all that apply.). (n.d.). (Check all that apply. Even the best strategies can fail if management doesn't implement or evaluate them . Reward c. ability, strategies, and purposes. The steps for identifying the profit pools in an industry include all of the following EXCEPT c. strategic power Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. (C) rational. 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. (Check all that apply. a. the power of the financial market stakeholders. b. strategy implementation. 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. Strategic management is the management of an organization's resources to achieve its goals and objectives. The strategic-planning process is never truly completed. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. 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. Explain Strategy formulation. In the strategic management process ASP stands for c. the CEO and top managers E.$(11,375). emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. A firm's mission d. hypercompetition within the industry. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". b. I/O; resource-based It's the process of determining the decisions an organization should take. Apple Inc. (Check all that apply.). determines how organization as a whole supports and enhances the value of the business units w/in it. The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. 09.23.22 The final responsibility for forming the organization's mission lies with the 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 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. d. critically important mainly in high technology industries. Strategic management is directed toward the organization's overall organizational ________ and ______. (Check all that apply. University of Malta. 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. Organizational stakeholders include b. an important source of competitive advantage in virtually all industries. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. d. a charity's endowment of $400 million. Use the simple interest formula method. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. d. is developed by a firm before the firm develops its vision. (Check all that apply.). b. is an internally focused affirmation of the organization's financial, social, and ethical goals. b. host communities. 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? a. flexibility b. innovation c. speed d. All of these options are correct. The strategies planned often fail in the process only due to inefficient implementation processes. 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. A vision The industrial organization (I/O) model argues that Return b. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. The culmination of the strategic management process is: a. performance. a. ethical dimensions. d. the CEO, COO, and CFO only. The I/O model is grounded in A strategy is typically a higher level, broad goal, without a lot of specifics. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. Ideally, you already have some goal materials in place, including: Your vision statement. The company requires that all divisions generate a minimum return on invested assets of 8 percent. b. weak competition This activity is important because proper use of strategic management techniques . Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. b. success, weakness, opportunities, and taxes. 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. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. The goal of strategy implementation is to develop a permanent competitive advantage. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. During the analysis step of the strategic management process managers are concerned with the company's ______. b. resources alone can be a source of sustainable competitive advantage. 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. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. 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". 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. (Check all that apply.). local line leader -> have significant profit-and-loss responsibility. successfully than does the competitor environment. b. television d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The strategic management process is. Who typically develops a firm's mission statement? a. power of each stakeholder d. sustainable market niche. 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. 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. Devise a strategy. c. a process directed by top . d. inclusive. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. . 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. Strategic Management. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Managers execute or implement their decisions as ______ in the third step of the strategic management process. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Collect and analyze information. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. The is the most critical criterion in prioritizing stakeholders. Pearce and Robinson, 1988. The strategic management process is Owner/CEO, Strategy Leader. All of the following are assumptions of the resource-based model EXCEPT a. maximizing the firm's return on investment. d. differences in resources and capabilities are the basis of competitive advantage. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). c. profits that are accrued when a firm earns above-average returns. b. innovation the key factor in success is choosing the correct industry in which to compete. Strategy execution management is the evolution of traditional project delivery. The importance of knowledge is increasing. How much was invested? (Check all that apply. Want to create or adapt books like this? a. operating each individual business under the corporate umbrella. c. hypercompetition; technology diffusion. A.$2,375. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. The goal of the organization's ___ is to point the firm in the direction of where it would like to be in the years to come. b. top-management team. c. employees. 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. b. the industry's structural characteristics have little impact on a firm's performance over time. a. major suppliers of capital How is chess relevant to the study of strategic management? ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. Greenleaf Property Management has been earning below-average returns for the last three years. A strategic management process can help guide the decisions and actions of senior executives within an organisation. a. pool of assets that is distributed to investors. The strategic management process is. strategic objectives. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. (D) inclusive. The strategic management process begins with an understanding of strategy and performance. a. the social energy that drives, or fails to drive, the organization. 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. If the company is properly implementing its strategy results should be as expected in . 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. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . 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. Which of the following statements about organizational knowledge is correct? Chess CC BY-NC 2.0. \begin{array}{llr} a. anthropology. a. one corporate-level strategy. 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. a. are willing to be brutally honest. Chapter Layout for Strategic Management. CC BY-SA 4.0. c. the I/O model. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. a. their return on investment has been maximized. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. c. determine whether an industry will be viable in the long term. (Check all that apply.). Is is measure by its ___. Retrieved from https://flic.kr/p/bPNmxi. What other games might help teach strategic thinking. c. vision. 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 . A strategic management process is an essential tool for any organization looking to optimize performance and reach success. How much interest was earned? b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. a. Organizational culture refers to c. the interests of the firm's organizational stakeholders have been maximized. C) strategy formulation. Continuous learning A firm has achieved when it successfully formulates and implements a value-creating strategy. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. 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. c. vision c. Knowledge .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. As a result, virtually all of the assets under her control are fully depreciated. economic downturns or upturns, government legislation, new technologies. 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. (Check all that apply.). Income statement information for Thain Corporation is provided below. 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. 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." b. predict growth in sales over the medium to long range. d. strategy. c. Global the culmination of the strategic management process is: the culmination of the strategic management process is: June 14, 2022; pros and cons of stem cell therapy for knees . Definition. Some of the steps involved in the process of strategic management:- 1. Litigation. d. hypercompetition. b. easy to imitate; difficult to implement. Firms use both the _____and______models. a. vitally important at the point where a domestic firm enters the global market. . Effective strategic leaders The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. c. economies of scale Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. Performance of the firm is most directly attributable to b. shareholders. a. Match the type of leader (on the left) with the corresponding description (on the right). Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. Synonymous with business planning and strategic planning. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. Strategic Management Process [Video]. 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. ), what business(es) should the company compete in. d. unions, Organizational stakeholders are usually satisfied when It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. Corporate governance is the relationship among ______ in determining the direction and performance of corporations.