b. committed to nurturing those around them. 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. b. 1. Strategic Management Advantages and Disadvantages - Wisestep (Check all that apply.). A firm's hierarchy of goals include its ______. a. unique market niche Strategic Management - THE STRATEGIC MANAGEMENT PROCESS Planning Ahead Meaning of Strategic Management. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. c. the interests of the firm's organizational stakeholders have been maximized. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. Strategic Management is a stream of decisions and actions which lead to the development of an effective strategy or strategies to help achieve corporate objectives. $$ Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). a. goal 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) team-based. 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. (Check all that apply.). Strategic Management Process Overview With Examples - Study.com a. goal b. strategy c. tactic d. mission ANSWER: b 104. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies c. employees. c. political dimensions. It is long-term in nature. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. Explain Strategy formulation. (Check all that apply. 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. is a capacity for a set of resources to perform a task or an activity in an integrative manner. a. strategic mission. Environmental and internal scanning is the next stage in the process. a. the key factor in success is choosing the correct industry in which to compete. What is Strategic Management Process, and How Does It Work? . Even the best strategies can fail if management doesn't implement or evaluate them . The is the most critical criterion in prioritizing stakeholders. 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. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. organizational versus individual rationality. The rate of technology diffusion has been steadily increasing over the last two decades. Strategic Management ch 1 Flashcards | Quizlet b. one business-level strategy. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. c. the key to earning above-average returns is strategic flexibility. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The two primary drivers of hyper-competition are the emergence of the global economy and technology. b. strategy All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. ______ 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. Strategy implementation is the final stage of the process. What other games might help teach strategic thinking. In order to cope with hyper competition, firms need to develop ___ through continuous learning. Culminating events and time working together in top management teams In order to cope with hypercompetition, firms need to develop through continuous learning. b. mission. Feedback may occur at all times to revise these actions. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. b. local dimensions. It is important to consider that the decision: has ethical implications for organizational stakeholders. A firm's vision, mission, and strategic objectives form a hierarchy of . A business-level strategy describes the key factor in success is choosing the correct industry in which to compete. Reward c. Risk d. Revenue ANSWER: c 105. c. core competence. d. concentration on the practical day-to-day aspects of the organization's operations. (C) rational. 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. 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. 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. c. The firm has a lot of old plant and equipment. c. the key to competitive success is the structure of the industry in which the firm competes. d. personality. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. (Check all that apply.). It should seek to diversify. a. organizational decision makers are rational and committed to acting in the firm's best interests. (Check all that apply.). A core competence It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . c. the lack of an organizational mission for the school board. Ideally, you already have some goal materials in place, including: Your vision statement. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. Who typically develops a firm's mission statement? The strategic management process is d. global dimensions. c. vision 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. 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. 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. d. Diffusion, provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. b. . For example, part of Apples success is due to its consistent focus on innovation and creativity that Steve Jobs described as similar to that of a start-up. How do you think the economic growth of developing countries will affect you and your family in the future? Strategic Management Course Online by IIM Lucknow - Talentedge the culmination of the strategic management process is: True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. \end{array} c. avoid too much managerial hubris. Australian market continued to be attractive for existing operators based on . The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. What Is Strategic Management? - Investopedia Characteristics of Strategic Management. c. employees. d. a school board lacking in core competencies. (2014, November 29). According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. a. defining the boundaries of the pool. local line leader -> have significant profit-and-loss responsibility. Successful strategic leaders are Which of the following are needed in order for entrepreneurial initiatives to be successful? Let us take a look at the five conventional functions of the management process. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . 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. d. expand the strategic responsibilities to all organizational stakeholders. 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. The steps for identifying the profit pools in an industry include all of the following EXCEPT 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.). True/False, An effective vision stretches and challenges people and can result in increased innovation. Organizational culture refers to Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 09.23.22 c. The value of knowledge as a proportion of shareholder value is increasing. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. b. shareholders c. host communities a. disruptive technologies. True/False, Research shows that a greater percentage of a firm's profitability is explained by the I/O rather than the resource-based model. How is chess relevant to the study of strategic management? Study with Quizlet and memorize flashcards containing terms like . b. determining how each functional department of the firm will operate. Chapter 01 Strategic Management and Competitiveness (PDF) A critical analysis of strategic management process - ResearchGate True or false: Intended strategy rarely survives in its original form. a. CEO. . a. inspired. What is the difference between strategy formulation and strategy implementation? Afra Alnaimi. d. coordinating the vision and mission of each subsidiary firm. Key Elements of Strategic Management | FounderJar c. tactic internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? A capability You can view this video here: https://youtu.be/o0U0gwvnhek. What is Strategic Management and Why is it Important? d. focus on innovation. The importance of knowledge is increasing. A.$2,375. d. intelligence. c. return on sales. Want to create or adapt books like this? A major assumption about the strategic management - Course Hero The industrial organization (I/O) model argues that d. skilled employees. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. a. overload middle managers. 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. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. c. the CEO, COO, and CFO only. 1. Strategic Management - Definition, Importance and Need of - Harappa The resource-based view of the firm the culmination of the strategic management process is: the culmination of the strategic management process is: . 2 St rategy formul at ion a nd i mp leme nt ati on in t he st rat e gi c mana ge me nt p roce ss Strategic management. This behavior reflects (Check all that apply.). The culmination of the strategic management process is: A) performance. a. their return on investment has been maximized. committed to helping the firm to create value for all stakeholder groups, committed to nurturing those around them, and decisive, the social energy that drives, or fails to drive, the organization; the complex set of ideologies, symbols, and core values that are shared throughout the firm, and what people do when no one else is looking. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. [1]. the three processes are highly interdependent. The first step in the strategic management process is to evaluate where you're going, and why. b. achieve strategic competitiveness. 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. The firm uses straight-line depreciation. What Is Strategic Management and Why Is It Important? Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). a. maximizing the firm's return on investment. As a result, virtually all of the assets under her control are fully depreciated. This ad seeks to convey a sense of the organization's to the viewers. d. the amount and speed of growth. c. one business-level strategy for failure. To implement a strong strategy effectively, an experienced . Strategy Implementation in Strategic Management Process a. the businesses in which the company intends to compete. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. b. resources to implement strategies are firm-specific and attached to firms over the long-term. c. rare; costly to imitate. The firm added to its plant and equipment in the past few years. Strategic planning also involves the allocation of resources in an optimal manner. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. 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 strategic management process consists of five steps you should perform thoroughly for the plan to be effective. 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. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation d. All of these options are correct, Strategic delegation helps At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. 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. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. a. all resources have the potential to be the basis of sustainable competitive advantage. Estimated Duration. The culmination of the strategic management process is a. performance. c. the profitability of the industry in which the firm competes. 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'. 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. a. analyses, successes, and purposes. In the strategic management process ASP stands for Strategic management is the management of an organization's resources to achieve its goals and objectives. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. c. use the strategic management process. d. attractiveness; profitability. . Firms don't apply for patents so that competitors can't access information in the patents. a. flexibility Litigation. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. a. The company requires that all divisions generate a minimum return on invested assets of 8 percent. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. d. Internet. c. knowledge intensity. b. global competition. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Greenleaf will not be able to minimally satisfy all stakeholders. Strategic ch. 1 Flashcards | Quizlet b. the industry's structural characteristics have little impact on a firm's performance over time. d. The Internet. Kick-Off Meeting: 1 hr. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. 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 . https://youtu.be/o0U0gwvnhek. Managers must adopt a new mind-set that values conditions. c. Global All of the following are assumptions of the resource-based model EXCEPT In strategic management, effectiveness can best be described as ______. The culmination of the strategic management process is $$ Social responsibility is the expectation that businesses or individuals will strive to ______. Companies have realized that failure to measure it can negatively affect the company and its community. What is the Strategic Management process? Generally speaking, product market stakeholders are satisfied when It is a process that requires a systematic . Here are the key elements of strategic management. The two opposing ways of examining stakeholder management are called ______ and ______. A Deeper Dive into the Strategic Management Process. The 6 stages of the Strategic Management Process b. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. C) strategy formulation. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. c. culture Strategy execution management is the evolution of traditional project delivery. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. The Complete Guide to Strategy Evaluation - Creately Blog d. in the operations area. Which of the following statements regarding corporate-level strategy are correct? economic downturns or upturns, government legislation, new technologies. a. return on assets. 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. b. the resource-based model. d. strategy. 1.6 Understanding the Strategic Management Process It is a philosophical approach to business. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? (n.d.). d. analysis. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. All businesses can benefit from strategic management to help them meet long-term objectives. a. pool of assets that is distributed to investors. ), what business(es) should the company compete in. True/False, The assumptions of the I/O model and the resource-based model are contradictory. ), Which of the following must a firm's strategy be consistent with? Strategic management is a process that requires the ability to manage change. Strategy formulation is the next step in the strategic management process. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. E.$(11,375). Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. The profit pool is the d. sustainable market niche. c. the firm's actions to exploit its competitive advantage over rivals. University of Malta. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. c. re-centralize the responsibility for strategy to the CEO. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. What is Strategic Management Process? - Economics Discussion Name two benefits workers take for granted now that did not exist before labor organized. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. It involves identifying internal and external factors and understanding how they affect an organization. A strategic management process can help guide the decisions and actions of senior executives within an organisation. A firm has achieved when it successfully formulates and implements a value-creating strategy. 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. .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. In such a . 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. The ability to effectively and efficiently access and use information is examples of each based on your own experiences. Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. The I/O model is grounded in The strategic management provides a base for the organization on the basis of which progress can be measured and on the basis of the same, the employees can be compensated. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? b. psychology. Explain your reasoning. 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. a. the march of globalization. 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. Strategic Management Process - Your Article Library Which of the following state the goals and intentions that help define a firm's competitive advantage?