b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. 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. en.wikipedia.org/wiki/Apple_Inc._ litigation. A business-level strategy describes Disruptive In Wikipedia. C ) rational . The culmination of the strategic management process is This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. a. Which of the following statements about the strategic management process is true? a. overload middle managers. a. the core values of the school board as an organization. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. a. flexibility Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. a. unions. A firm's hierarchy of goals include its ______. Performance of the firm is most directly attributable to d. unions, Organizational stakeholders are usually satisfied when c. culture In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. a. the power of the financial market stakeholders. The rate of technology diffusion has been steadily increasing over the last two decades. Strategic Goals: Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. Owner/CEO, Strategy Leader. b. abilities; strengths c. host communities . The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. In the resource-based model, which of the following factors would be considered a key to organizational success? b. weak competition Study with Quizlet and memorize flashcards containing terms like . Strategic management is directed toward the organization's overall organizational ________ and ______. (C) rational. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. The steps for identifying the profit pools in an industry include all of the following EXCEPT Overall, strategic management is an important part of an organization's development and overall performance. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. b. psychology. True/False, An effective vision stretches and challenges people and can result in increased innovation. . c. the I/O model. The two primary drivers of hyper-competition are the emergence of the global economy and technology. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. Collect and analyze information. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. d. hypercompetition within the industry. (B) all policies and procedures used in functional departments. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to 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. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. c. tactic c. Knowledge d. accounting. d. Internet. a. unique; easy to imitate. d. The firm uses straight-line depreciation. c. is mainly intended to emotionally inspire employees and other stakeholders. ), Which of the following are examples of business-level strategies? Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. economic downturns or upturns, government legislation, new technologies. c. the key to earning above-average returns is strategic flexibility. A company competing in a single product market has Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. c. the CEO and top managers 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. d. increasing the profitability of the firm. It determines which business(es) should be in the company's portfolio. 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. c. profits that are accrued when a firm earns above-average returns. a. an hourly production employee's ability to catch subtle quality defects in products. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . d. organization's stakeholders. Which statement is true? d. analysis. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. symbiosis; zero sum. a. major suppliers of capital 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. 1. Owner/CEO, Strategy Director. Chapter Layout for Strategic Management. CC BY-SA 4.0. 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. Rationalize the denominator of each fraction and simplify. STRATEGIC MANAGEMENT PROCESS: F i gu re 10. B. c. A mission Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. Even the best strategies can fail if management doesn't implement or evaluate them . After executing the environmental analysis process, management . c. strategy . d. the CEO, COO, and CFO only. Organizational stakeholders include b. urgency of satisfying each stakeholder Name two benefits workers take for granted now that did not exist before labor organized. b. global competition. b. innovation The two opposing ways of examining stakeholder management are called ______ and ______. a. delegate strategic responsibilities to employees "closer to the action." a. ethical dimensions. (Check all that apply. How much interest was earned? c. defining the competitors in the pool. To implement a strong strategy effectively, an experienced . c. return on sales. The primary drivers of hypercompetition are, All of the following are characteristic of the global economy EXCEPT, The economic interdependence among countries as reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as, . b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. a. goal b. a functional, although unethical, culture of the school board. a. only the CEO A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. The 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." d. estimating the size of the value-chain activity in the pool. Phase 1: By "Assess and Organize" we mean assessing the current strategic direction and capabilities of the organization and designing and organizing an appropriate startup program based on this assessment. c. an ability to identify the correct solutions to long-range problems. What is the Strategic Management process? In Chapter 2 "Assessing Organizational . \text{Cost of goods sold}&\text{493,000}\\ Strategic planning also involves the allocation of resources in an optimal manner. 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). Return Organizational culture refers to A firm has achieved when it successfully formulates and implements a value-creating strategy. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. It offers courses accredited to AMBA, AACSB & NIRF. 1. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. c. analyses; strategies coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. A major assumption about the strategic management process is that it is c. employees. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. c. the profitability of the industry in which the firm competes. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. 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. It's an important step since it is here that businesses can review performance metrics of all components and make any tweak necessary to ensure accomplishment of long-term goals. b. executives control strategy implementation. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. b. shareholders. For example, Apples decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur. 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. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. What is the Strategic Management process? d. All of these options are correct. In the POLC framework, where does strategy implementation take place. Measure the progress by comparing the plan against actual results. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. Environmental Scanning 2. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. What is the difference between strategy formulation and strategy implementation? - Evaluating efficiency and effectiveness . Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? 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 b. all policies and procedures used in functional departments. d. analysis. a. performance. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. (Remember to type only one word in the blank.). The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. The culmination of the strategic management process is: a. performance. The strategic leader's work is characterized by 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. Strategic flexibility The strategic management process begins with an understanding of strategy and performance. a. vision c. the key to competitive success is the structure of the industry in which the firm competes. . a. insight. a. at the top of the organization resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. c. avoid too much managerial hubris. c. personal computer d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Strategic management process. The message of the ad is that this firm's accountants love their work. 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. c. speed It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. Dissatisfied capital market stakeholders may Strategic management is the process of finding and describing the strategies used by management to improve the financial performance of a company, particularly in comparison to competitors in the same sector. c. one business-level strategy for failure. 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. inspired. c. a process directed by top . a. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . Synonymous with business planning and strategic planning. d. hypercompetition. The strategic management process is. 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. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. The resource-based view of the firm b. local dimensions. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. ____has become the second-largest economy in the world. 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. b. strategy Some of the steps involved in the process of strategic management:- 1. 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. 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. 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. a. maximizing the firm's return on investment. c. determining in which businesses to compete and how resources will be allocated between businesses.