d. Organizational intelligence. In the instance, the implementation . Which of the following statements is most consistent under the I/O view? Learn more about how Pressbooks supports open publishing practices. c. companies provide a dynamic, stimulating, and rewarding work environment. d. coordinating the vision and mission of each subsidiary firm. 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 a. unions. Strategic management involves setting objectives, analyzing the competitive environment . c. hypercompetition; technology diffusion. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. The ___ is the most critical criterion in prioritizing stakeholders. - Executing plans and strategies. 3. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. Determine organizational readiness. b. weak competition True or false: Intended strategy rarely survives in its original form. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. a. industry; capability The process of strategic management sometimes encompasses the formulation of important policies. C.$54,375. It is important to consider that the decision: has ethical implications for organizational stakeholders. d. A goal, Strategic leaders are In order to cope with hyper competition, firms need to develop ___ through continuous learning. 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. ______ is performing similar activities better than rivals do. c. strategic power 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. d. hypercompetition. Which of the following is an example of a firm's intellectual asset? The strategic management process is more than a set of rules to follow. . ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. The goal of strategy implementation is to develop a permanent competitive advantage. c. tactic Even the best strategies can fail if management doesn't implement or evaluate them . Strategic management requires that ______. 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. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. c. core competence. b. Situation Analysis. c. 36; 20 1. An assessment od strengths, weakness, opportunities and threats. b. I/O; resource-based Apple Inc. 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). d. culture. - Formulating an action plan and strategies. It is a . 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. concentration on the practical day-to-day aspects of the organization's operations. The three primary participants in corporate governance are the ______, management, and board of directors. ), what business(es) should the company compete in. $$ Managers must adopt a new mind-set that values conditions. Afra Alnaimi. c. Sustainable competitive advantage strategic objectives. It requires incorporating both short-term and long-term perspectives. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. b. a. pool of assets that is distributed to investors. Performance of the firm is most directly attributable to Figure 1.8: Shirinsokhan, Mahmoudreza. a. predict future revenue streams for the organization. Match the type of leader (on the left) with the corresponding description (on the right). Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. a. goal Match the strategic management process with its corresponding term. A major assumption about the strategic management process is that it is A firm's vision, mission, and strategic objectives form a hierarchy of . It involves goals and objectives that an organization needs to achieve to be successful in the marketplace. c. profits that are accrued when a firm earns above-average returns. c. the CEO and top managers 1. d. global dimensions. This improved performance is best explained by Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). . a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. The strategic management process is. d. is developed by a firm before the firm develops its vision. What is the Strategic Management process? (Check all that apply.). True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . Organizational stakeholders include 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. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. is a capacity for a set of resources to perform a task or an activity in an integrative manner. d. Internet. a. suppliers. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. a. each firm is a unique collection of resources and capabilities. (Check all that apply. a. b. achieve strategic competitiveness. $46,375 a. anthropology. Authors: Tanya Sammut-Bonnici. c. the key to earning above-average returns is strategic flexibility. 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 . A company competing in a single product market has A sustainable competitive advantage is not achieved through operational effectiveness alone. 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." a. the core values of the school board as an organization. The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. c. obtaining reliable products at the lowest possible price. \text{Cost of goods sold}&\text{493,000}\\ McDonald's has been able to a. earn above-average returns. a. analyses; strengths Strategic Management Process [Video]. (Check all that apply.). There are provisions to create, implement and appraise . d. hypercompetition. a. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Continuous learning Financial markets often place an emphasis on managers meeting ______ performance goals. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. Which of the following state the goals and intentions that help define a firm's competitive advantage? .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. b. mission Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. d. companies are paying the highest prices to suppliers, Product market stakeholders include 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. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. A company had a beginning balance in retained earnings of $52,000. 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. Strategic planning aims to create . 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 last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need 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. (n.d.). New markets created by iPods, PDAs, and Wi-Fi are a result of To implement a strong strategy effectively, an experienced . a. operating each individual business under the corporate umbrella. Reward Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. The first step in the strategic management process is to evaluate where you're going, and why. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. a. unique market niche It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. a. goal b. strategy c. tactic d. mission ANSWER: b 104. 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. a. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. A Deeper Dive into the Strategic Management Process. Which of the following statements regarding strategic management is true? b. regardless of their location in the organization 97.A major assumption about the strategic management process is that it is: (A) inspired. Strategic Management can be found in . 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. Which of the following statements about organizational knowledge is correct? d. All of these options are correct. shareholders, management, and the board of directors. a. unique; easy to imitate. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. The essence of strategic management is the study of why some firms ______. Definition. 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. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. a. defining the boundaries of the pool. a. values. 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. c. A mission c. economies of scale how your business plans to achieve it goals and improves and sustains it position in the industry. Prepare a vertical analysis of the income statement for Thain Corporation. local line leader -> have significant profit-and-loss responsibility. c. employees. c. one business-level strategy for failure. This model also guides our presentation of the chapters contained in this book. Organizational goals and objectives should represent what is best for ______. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. The culmination of the strategic management process is a. performance. d. focus on innovation. (. A vision statement can lead to missed opportunities when it ______. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. D. $43,375. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. 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. Social responsibility is the expectation that businesses or individuals will strive to ______. In order to cope with hypercompetition, firms need to develop through continuous learning. 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. In Chapter 2 "Assessing Organizational . Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. b. expertise. ____has become the second-largest economy in the world. (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. The Jayhawks Rising Strategic Alignment Model is the culmination of a multi-year strategic planning process involving many groups and individuals who proposed hundreds of ideas for how to advance us toward our vision to be an exceptional learning community that lifts each member and advances society. Chess CC BY-NC 2.0. Generally speaking, product market stakeholders are satisfied when: a firm achieves a balance between profit margins, costs paid to suppliers and prices set for customers, Before liquidating during a bankruptcy, a company will take several actions to try to satisfy its ____ stakeholders. d. The firm uses straight-line depreciation. b. executives control strategy implementation. c. rational. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. . Companies have realized that failure to measure it can negatively affect the company and its community. 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. strategy implementation. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. d. analysis. The two opposing ways of examining stakeholder management are called ______ and ______. d. a charity's endowment of $400 million. 1+x1x. (Check all that apply. a. major suppliers of capital c. Risk b. a functional, although unethical, culture of the school board. (B) all policies and procedures used in functional departments. (Check all that apply.). c. disruptive technologies. a. flexibility \text{Sales}&\text{\$850,000}\\ What are the four levels of a company's strategy formulation? d. ability, successes, and performance. (Check all that apply. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. Explain the difference between negative reinforcement and punishment, and provide several The culmination of the strategic management process is Accordingly, the strategic management and planning process consists of sequential five key steps; (i) Goal setting, (ii) Analysis strategy formation, (iii) Strategy formation, (iv) Strategy . Organizational culture refers to True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. The culmination of the strategic management process is: a. performance. 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 in their environment. 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. a willingness to unify stakeholders through skillful manipulation. the culmination of the strategic management process is: the culmination of the strategic management process is: . Strategic management is directed toward a company's ______. determines how organization as a whole supports and enhances the value of the business units w/in it. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? Figure 1.7: Kindred Grey (2020). b. a firm's profit margin yields an above-average return to its capital market stakeholders. It is long-term in nature. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . c. determine whether an industry will be viable in the long term. b. top-management team. The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Firms use the five forces model to identify the of the industry as measured by its At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. In Wikipedia. Importance of Strategic Management. d. one business-level strategy and one corporate-level strategy. The rate of technology diffusion has been steadily increasing over the last two decades. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} vision. It offers courses accredited to AMBA, AACSB & NIRF. (Check all that apply.). 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 profit pool is the In the strategic management process ASP stands for It is a process that requires a systematic . d. located at different levels, but only in the operating area of the organization, . Alfred Chandler, 1962. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. 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. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. d. sustainable market niche. c. speed c. competition; competency Efficiency, in terms of strategic management, can best be described as ______. See the examples before. (2014, November 29). Effective strategies Apple uses to create loyal customers. For example, intellectual property is a vital resource for Apple. It determines which business(es) should be in the company's portfolio. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. a. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. Rationalize the denominator of each fraction and simplify. one business-level strategy and one corporate-level strategy. b. the resource-based model. A strategy is typically a higher level, broad goal, without a lot of specifics. c. employees. d. Revenue. symbiosis; zero sum. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. a. flexibility b. innovation c. speed d. All of these options are correct. c. a process directed by top management with input from other stakeholders that seeks to achieve above- average returns for investors through effective use of the organization's resources. 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? The strategic management process is a crucial element of any organization's success. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. 2. c. in the finance area YouTube. Use the simple interest formula method. b. shareholders Which statement about the triple bottom line is true? d. total profits that can be divided among the competitors within an industry. b. resources alone can be a source of sustainable competitive advantage. This involves developing specific strategies and actions. c. rare; costly to imitate. Dissatisfied capital market stakeholders may c. employees. en.wikipedia.org/wiki/Apple_Inc._ litigation, https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109, https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. Your long-term goals and/or BHAGs. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. True/False, Although organizational cultures vary considerably, one cannot make an objective judgement that some organizational cultures are more or less functional than others in terms of ethical considerations. b. shareholders. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) Generally speaking, product market stakeholders are satisfied when Effective strategic leaders The strategic-planning process is never truly completed. https://youtu.be/o0U0gwvnhek. b. strategy implementation. b. local dimensions. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. Study with Quizlet and memorize flashcards containing terms like . Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. Is is measure by its ___. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Which of the following are stakeholder groups that managers should consider when making decisions? a. ethical dimensions. c. the profitability of the industry in which the firm competes. The mission of IIM Lucknow is to improve management systems with regard to business, industry and public services through pursuit of excellence in management education, research, consultancy and training. c. decisive. c. analyses; strategies a. the social energy that drives, or fails to drive, the organization. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. a. located only at the executive level. Strategy implementation is the final stage of the process. What other games might help teach strategic thinking. How to develop a strategic management process. $$ 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. d. personality. It's the process of determining the decisions an organization should take. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . 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. b. estimating the overall size of the pool. Which of the following statements is most consistent with the I/O view? 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. The 5 stages of the strategic management process. b. rapid technological diffusion. Owner/CEO, Strategy Director. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. b. an important source of competitive advantage in virtually all industries. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. _________ strategy is a combination of deliberate and emergent strategies. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? SWOT stands for All of the following are assumptions of the industrial organization (I/O) model EXCEPT This is because the organization's role as a taxpayer is most important to ___ as stakeholders. ______ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies. Managers execute or implement their decisions as ______ in the third step of the strategic management process. Strategic management of an organization entails which of the following ongoing processes? The firm added to its plant and equipment in the past few years. 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. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. Kick-Off Meeting: 1 hr. 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. (Check all that apply.). c. weak competitors in the industry. . Income statement information for Thain Corporation is provided below. The strategic management process is The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. A strategic management process can help guide the decisions and actions of senior executives within an organisation.