The steps for identifying the profit pools in an industry include all of the following EXCEPT a. inspired. Strategic management is the management of an organization's resources to achieve its goals and objectives. Who makes the strategic decisions for most organizations? a. analyses, successes, and purposes. The essence of strategic management is the study of why some firms ______. a. pool of assets that is distributed to investors. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. d. All of these options are correct. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. Strategic management requires that ______. (Remember to type only one word in the blank.). c. Risk In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . It involves goals and objectives that an organization needs to achieve to be successful in the marketplace. Strategic management process can be described as a set of managerial decisions and actions which determines the long-run direction and performance of the organization'. How much was invested? c. employees. 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. Disruptive b. achieve strategic competitiveness. b. total profits earned in an industry along all points of the value chain. b. the industry's structural characteristics have little impact on a firm's performance over time. In Wikipedia. It requires incorporating both short-term and long-term perspectives. This model also guides our presentation of the chapters contained in this book. b. tighten loan covenants. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . 97.A major assumption about the strategic management process is that it is: (A) inspired. 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. 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 . A core competence Chess CC BY-NC 2.0. Firms don't apply for patents so that competitors can't access information in the patents. organizational versus individual rationality. a. major suppliers of capital a. Firms use the five forces model to identify the of the industry as measured by its The third step of the strategic management process is the ______ step. Sound strategies are of no value if they ______. The culmination of the strategic management process is Strategic management is directed toward the organization's overall organizational ________ and ______. True/False, When the firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders. The strategic management process is a crucial element of any organization's success. a. goal Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. c. determine whether an industry will be viable in the long term. Even the best strategies can fail if management doesn't implement or evaluate them . A sustainable competitive advantage is not achieved through operational effectiveness alone. 2. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. Your company's core competencies. How is chess relevant to the study of strategic management? a. flexibility a. power of each stakeholder The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. For example, intellectual property is a vital resource for Apple. c. vulnerability of organizational stakeholders symbiosis; zero sum. Prepare a vertical analysis of the income statement for Thain Corporation. 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 fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. a. Strategic flexibility b. shareholders c. speed It involves action plans that ensure continued performance and thriving progression. It improves the company's problem-solving and prevents capabilities. 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. a. the social energy that drives, or fails to drive, the organization. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. Which statement about the triple bottom line is true? Readiness assessment. In a diversified firm, corporate-level strategy is concerned with b. strategy implementation. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. c. obtaining reliable products at the lowest possible price. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The external control view of leadership emphasizes the role of which of the following types of factors in the success or failure of a firm? d. hypercompetition. Managers are analyzing the firm's ______ when managers are studying its competitors. determines how organization as a whole supports and enhances the value of the business units w/in it. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. 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. Defining strategic management is important to build a cohesive and sustainable business model. a. return on assets. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to (Check all that apply.). What are the four levels of a company's strategy formulation? strategic objectives. What other games might help teach strategic thinking. Write the key term that best matches each description. 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. Strategic management is a process that requires the ability to manage change. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. b. regardless of their location in the organization Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. The 5 stages of the strategic management process. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. b. psychology. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. . a. unique; easy to imitate. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. (Check all that apply. a. one corporate-level strategy. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University c. seek to increase their power. a. industry; capability d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. (Check all that apply.). Reward a. b. determining how each functional department of the firm will operate. c. strategic power 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. b. customers pay the highest sustainable price for the goods and services they receive. Name two benefits workers take for granted now that did not exist before labor organized. a. committed to helping the firm create value for all stakeholder groups. Synonymous with business planning and strategic planning. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. Figure 1.7: Kindred Grey (2020). c. the key to competitive success is the structure of the industry in which the firm competes. c. strength, wealth, organization, and taxes. a. anthropology. For instance, a SWOT analysis (Strengths-Weaknesses . a. maximizing the firm's return on investment. d. personality. are established. c. the firm's actions to exploit its competitive advantage over rivals. (Check all that apply.). The profit pool is the 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. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. The three primary participants in corporate governance are the ______, management, and board of directors. b. all policies and procedures used in functional departments. Organizational goals and objectives should represent what is best for ______. (C) rational. 1. Apple Inc. In such a . Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. It offers courses accredited to AMBA, AACSB & NIRF. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . c. companies provide a dynamic, stimulating, and rewarding work environment. In the POLC framework, where does strategy implementation take place. Which of the following statements about the strategic management process is true? d. critically important mainly in high technology industries. 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. c. strategy formulation. 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. Which of the following statements is most consistent with the I/O view? 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. ), what business(es) should the company compete in. 3. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. a. telephone c. use the strategic management process. a. culture 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. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. b. the resources the firm possesses. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. Planning Team and Executive Team. b. expertise. Which of the following are characteristics of a well-written organizational vision statement? Feedback may occur at all times to revise these actions. Organizational culture refers to Here are the key elements of strategic management. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. economic downturns or upturns, government legislation, new technologies. 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. 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. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. d. ability, successes, and performance. c. the interests of the firm's organizational stakeholders have been maximized. d. companies are paying the highest prices to suppliers, Product market stakeholders include d: 70: 3884478507 The strategic management process is. Ideally, you already have some goal materials in place, including: Your vision statement. b. mission a. the core values of the school board as an organization. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. To implement a strong strategy effectively, an experienced . It determines which business(es) should be in the company's portfolio. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. The strategic management process begins with an understanding of strategy and performance. b. oil drilling rights in a promising region. 90; 10 c. employees. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. C ) rational . b. easy to imitate; difficult to implement. the key factor in success is choosing the correct industry in which to compete. c. strategy formulation. c. weak competitors in the industry. people throughout the organization strive toward overall goals. D) analysis. b. committed to nurturing those around them. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. The process of creating strategy c. determining in which businesses to compete and how resources will be allocated between businesses. Synonymous with business planning and strategic planning. 1. 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. 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 . Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Chapter 8 Selecting Corporate-Level Strategies focuses on selecting corporate-level strategies, and Chapter 9 Competing in International Markets presents possibilities for firms competing in international markets. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. The rate of technology diffusion has been steadily increasing over the last two decades. d. focus on innovation. a. the power of the financial market stakeholders. c. host communities In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. The strategic leader's work is characterized by Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. (B) all policies and procedures used in functional departments. 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. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. b. a functional, although unethical, culture of the school board. It is important to consider that the decision: has ethical implications for organizational stakeholders. Corporate-level strategy focuses on ______. d. expand the strategic responsibilities to all organizational stakeholders. c. analyses; strategies Strategic management of an organization entails which of the following ongoing processes? d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. b. shareholders. The resource-based model of the firm argues that Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. d. All of these options are correct, Strategic delegation helps areas, are relatively rare. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. 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. An assessment od strengths, weakness, opportunities and threats. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. a. organizational decision makers are rational and committed to acting in the firm's best interests. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. Retrieved from https://flic.kr/p/bPNmxi. (n.d.). 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 How much interest was earned? The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. This perspective is known as ______. . C.$54,375. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. 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. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . Which of the following are reasons vision statements sometimes fail? The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. c. tactic a. unions. Strategic planning aims to create . 09.23.22 A company competing in a single product market has. 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. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. b. a firm's profit margin yields an above-average return to its capital market stakeholders. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. b. local dimensions. . c. 36; 20 Figure 1.8: Shirinsokhan, Mahmoudreza. a. disruptive technologies. A Deeper Dive into the Strategic Management Process. Social responsibility is the expectation that businesses or individuals will strive to ______. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. \text{Cost of goods sold}&\text{493,000}\\ 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 management is directed toward a company's ______. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. c. personal computer E.$(11,375). b. a. competitive resilience c. decisive. Definition. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates .
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