Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. 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. Feedback may occur at all times to revise these actions. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. b. total profits earned in an industry along all points of the value chain. The triple bottom line measures the performance of which of the following? d. one business-level strategy and one corporate-level strategy. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Collect and analyze information. c. use the strategic management process. In order to cope with hyper competition, firms need to develop ___ through continuous learning. d. All of these options are correct. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Benefits and limitations of strategic management c. Risk The culmination of the strategic management process is: A) performance. Strategic Management ch 1 Flashcards | Quizlet The process of creating strategy c. the profitability of the industry in which the firm competes. d: 70: 3884478507 After executing the environmental analysis process, management . d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. The strategic management process begins with an understanding of strategy and performance. (Check all that apply.). . 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. performance. 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 . Chapter 5: Strategic Management Flashcards | Quizlet Some of the steps involved in the process of strategic management:- 1. b. strategy implementation. d. All of these options are correct. The strategic leader's work is characterized by The firm makes less efficient use of its assets than other firms. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. In the strategic management process ASP stands for conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? b. top-management team. a. sell their stock. 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. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. b. expertise. The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. d. Internet. a. goal b. strategy c. tactic d. mission ANSWER: b 104. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have 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. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Sound strategies are of no value if they ______. Strategic Management Process Steps And It's Components a. organizational decision makers are rational and committed to acting in the firm's best interests. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. b. host communities. (Remember to type only one word in the blank.). c. the firm's actions to exploit its competitive advantage over rivals. b. all policies and procedures used in functional departments. 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. What is the Strategic Management process? Strategic Management Course Online by IIM Lucknow - Talentedge b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. organizational versus individual rationality. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . 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. 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. b. focus on strategy formation. All of the following are assumptions of the resource-based model EXCEPT c. host communities A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. A firm's mission What Is Strategic Management and Why Is It Important? What is Strategic Management, and Why is it Important? - SearchCIO a. overload middle managers. Synonymous with business planning and strategic planning. b. return on equity. 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. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Strategy Implementation in Strategic Management Process Management Process: Definition, Features & Functions The culmination of the strategic management process is a. performance. d. is developed by a firm before the firm develops its vision. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Strategy implementation is the final stage of the process. a. the social energy that drives, or fails to drive, the organization. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. a. an hourly production employee's ability to catch subtle quality defects in products. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. 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. The resource-based view of the firm Strategy Evaluation. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. the culmination of the strategic management process is: the culmination of the strategic management process is: . 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. areas, are relatively rare. What is Strategic Management Process, and How Does It Work? c. weak competitors in the industry. Name two benefits workers take for granted now that did not exist before labor organized. How to Implement a Strategic Management Process [2023] Asana SWOT stands for It is important to consider that the decision: has ethical implications for organizational stakeholders. It involves identifying internal and external factors and understanding how they affect an organization. B the process of strategic management requires that 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: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. In such a . a. strategic mission. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. The resource-based model of the firm argues that c. capabilities are highly mobile across firms. Strategic management is the process of defining and implementing an organization's strategy. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. a. CEO. b. oil drilling rights in a promising region. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. In order to cope with hypercompetition, firms need to develop through continuous learning. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. It offers courses accredited to AMBA, AACSB & NIRF. d. a school board lacking in core competencies. a. unions. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. b. team-based. The profit pool is the 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 . It is a . a. ethical dimensions. 3. 5. a. the march of globalization. b. mission b. urgency of satisfying each stakeholder How much was invested? a. strategy, wealth, organization, and threats. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 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. c. Sustainable 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. rare; costly to imitate. b. weak competition b. innovation Which of the following are characteristics of a well-written organizational vision statement? d. attractiveness; profitability. Sue prefers the Red Shuttle because it gets her to the airport in an hour and a half, while the Blue Shuttle takes $80$ minutes. In a diversified firm, corporate-level strategy is concerned with The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. d. the CEO, COO, and CFO only. The two opposing ways of examining stakeholder management are called ______ and ______. Solved The strategic management process begins with | Chegg.com Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. What are the four steps of the strategic management process? The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. a. their return on investment has been maximized. The Strategic Management Process Guide - cascade.app Explain the difference between negative reinforcement and punishment, and provide several 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. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. 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. (PDF) Strategic Management and Strategic Planning Process - ResearchGate 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. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. d. suppliers of capital. Analysis of the industry's profit pool enables strategic managers to Figure 1.7: Kindred Grey (2020). It guides the company to move in a specific direction. PDF is the culmination of a multi-year strategic planning process involving c. hypercompetition; technology diffusion. A Deeper Dive into the Strategic Management Process. Strategic Management Process [Video]. How to develop a strategic management process. Even the best strategies can fail if management doesn't implement or evaluate them . The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. The video for this lesson explains the strategic management process. How much interest was earned? d. Revenue. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. c. in the finance area c. knowledge intensity. True/False, The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities is the main source of above-average returns. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. b. executives control strategy implementation. Knowledge is an intangible resource. . Make Better business decisions: It is important to understand the difference between a great idea and a good idea. d. abilities; strategies. c. economies of scale c. Global Return 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. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. ), Business-level strategy is concerned with how companies ______. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. In the POLC framework, where does strategy formulation take place? c. re-centralize the responsibility for strategy to the CEO. c. return on sales. a. suppliers. 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.). In strategic management, effectiveness can best be described as ______. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. Reward Want to create or adapt books like this? Strategic Management - Your Article Library b. located in different areas and levels. d. located at different levels, but only in the operating area of the organization, . a. at the top of the organization (Check all that apply.). This involves developing specific strategies and actions. Which of the following are true of behavioral controls? c. employees. [1]. Strategic management involves setting objectives, analyzing the competitive environment . The message of the ad is that this firm's accountants love their work. 1+x1x. c. The value of knowledge as a proportion of shareholder value is increasing. b. The is the most critical criterion in prioritizing stakeholders. strategic management chp 1 review Flashcards | Quizlet a. anthropology. 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. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. d. the amount and speed of growth. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. (2014, November 29). b. Strategic flexibility A firm's vision, mission, and strategic objectives form a hierarchy of . Strategic Management Flashcards | CourseNotes As a result, virtually all of the assets under her control are fully depreciated. Strategic planning aims to create . On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. b. strategy implementation. Efficiency, in terms of strategic management, can best be described as ______. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. In Chapter 2 "Assessing Organizational . a. unique market niche It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. successfully than does the competitor environment. c. employees. Identify your goals. Owner/CEO, Strategy Director. 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. Authors: Tanya Sammut-Bonnici. Companies have realized that failure to measure it can negatively affect the company and its community. Devise a strategy. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University - Formulating an action plan and strategies. Firms use the five forces model to identify the of the industry as measured by its a. inspired. How is chess relevant to the study of strategic management? The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. The importance of knowledge is increasing. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. c. avoid too much managerial hubris. a. culture Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. The 'strategic management process' is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. What is the Concept of Strategic Management? - Talentedge c. employees. The Culmination of the Strategic Management Process Is True/False, An effective vision statement must specify the industry in which a company will operate. c. 36; 20 coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. An assessment od strengths, weakness, opportunities and threats.