Companies have realized that failure to measure it can negatively affect the company and its community. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . A classic management tool that incorporates the idea of scanning elements both external and internal to the firm is SWOT (strengths, weaknesses, opportunities, and threats) analysis. d. easy to implement; unique. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. d. locate the most promising areas of an industry's value chain. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. c. employees. a. 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. Overall, strategic management is an important part of an organization's development and overall performance. Name two benefits workers take for granted now that did not exist before labor organized. It determines which business(es) should be in the company's portfolio. Readiness assessment. (Check all that apply. b. executives control strategy implementation. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. What Is Strategic Management and Why Is It Important? Income statement information for Thain Corporation is provided below. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. The Five Stages of the Strategic Management Process Learn more about how Pressbooks supports open publishing practices. Measure the progress by comparing the plan against actual results. Here are the key elements of strategic management. 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. Strategic Management Process and Its Different Stages c. economies of scale Sue prefers the Red Shuttle because it gets her to the airport in an hour and a half, while the Blue Shuttle takes $80$ minutes. Who typically develops a firm's mission statement? Alfred Chandler, 1962. (Check all that apply. 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. \begin{array}{llr} The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? 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. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University Situation Analysis. 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. This behavior has existed for decades, even as the membership in the school board has changed over time. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. A vision d. attractiveness; profitability. It should seek to diversify. YouTube. 7 Main Steps in Process of Strategic Management (Explained) Make Better business decisions: It is important to understand the difference between a great idea and a good idea. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. ______ is performing similar activities better than rivals do. 1. What are the four steps of the strategic management process? a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Retrieved from https://flic.kr/p/bPNmxi. b. oil drilling rights in a promising region. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. What is the Strategic Management process? Managers are analyzing the firm's ______ when managers are studying its competitors. b. determining how each functional department of the firm will operate. ), Which of the following are examples of business-level strategies? Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. 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. Disruptive 60; 40 a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. 3. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. c. use the strategic management process. A sustainable competitive advantage is not achieved through operational effectiveness alone. a. insight. c. hypercompetition; technology diffusion. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). 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. Your company's core competencies. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. Use the simple interest formula method. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. a. suppliers. c. disruptive technologies. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. 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. Strategic Management - Overview, Components, Framework Key Elements of Strategic Management | FounderJar c. strategy formulation. the culmination of the strategic management process is: b. the resource-based model. (Check all that apply.). 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. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. (PDF) Strategic Management and Strategic Planning Process - ResearchGate c. re-centralize the responsibility for strategy to the CEO. c. tactic True/False, Organizational stakeholders are the firm's internal resources, capabilities, and core competencies that are used to accomplish what may appear to be unattainable goals in the competitive environment. 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 strategic management process is. Apple Inc. Strategic management requires that ______. d. is developed by a firm before the firm develops its vision. a. The 6 stages of the Strategic Management Process c. strategic power Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? b. I/O; resource-based d. sustainable market niche. The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. a. goal d. All of these options are correct. All of the following are resources of an organization EXCEPT c. in the finance area Which of the following are reasons vision statements sometimes fail? c. economics. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. An assessment od strengths, weakness, opportunities and threats. b. located in different areas and levels. Which of the following are true of behavioral controls? Chapter 1 - The Strategic Management Process, Chapter 13: Sexually Transmitted Infections, Information Technology Project Management: Providing Measurable Organizational Value, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Chapter 10 /Dada/Magic Realism/Surrealism. (Check all that apply.). 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. sell their stock. a. Perpetual c. In reporting her investment center's performance for the past 10 years, the manager of the Snack Division accounted for the depreciation of her division's assets by using an accelerated depreciation method allowed for tax purposes. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 1+x1x. a. telephone BUS400 Flashcards | Quizlet a. anthropology. 2. d. skilled employees. ____has become the second-largest economy in the world. Synonymous with business planning and strategic planning. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. C.$54,375. c. determine whether an industry will be viable in the long term. d. Internet. 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. en.wikipedia.org/wiki/Apple_Inc._ litigation. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. b. all policies and procedures used in functional departments. 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. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. Strategy Execution Management Solution - UMT360 d. hypercompetition. A comprehensive & ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges such that the firm achieves its vision and mission. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. c. employees. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. Explain your reasoning. a. strategic mission. b. expertise. Establish your planning team and schedule. Analysis of the industry's profit pool enables strategic managers to One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. Which of the following actions by the CEO would be most consistent with this need? Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. Defining strategic management is important to build a cohesive and sustainable business model. The first step in the strategic management process is to evaluate where you're going, and why. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. Feedback may occur at all times to revise these actions. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. Strategic Management Process - Your Article Library Identify your goals. d. 20; 36. The Culmination of the Strategic Management Process Is The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. c. A mission local line leader -> have significant profit-and-loss responsibility. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. a. power of each stakeholder c. what people do when no one else is looking. d. All of these options are correct, Strategic delegation helps Culminating events and time working together in top management teams Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. What other games might help teach strategic thinking. Financial markets often place an emphasis on managers meeting ______ performance goals. Strategic flexibility b. strategy implementation. (2014, November 29). Planning. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. Strategic Management. a. the march of globalization. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. (B) all policies and procedures used in functional departments. a. industry; capability b. is an internally focused affirmation of the organization's financial, social, and ethical goals. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. What Is Strategic Management? - Investopedia All businesses can benefit from strategic management to help them meet long-term objectives. d. products that were not imitated by competitors. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. a. flexibility Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. Which of the following statements about the strategic management process is true? Sun Tzu's best-known work is The Art of War. 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." 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 . True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. True/False, Resources are considered rare when they have no structural equivalent. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. a. analyses; strengths Chapter 5: Strategic Management Flashcards | Quizlet incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? Strategic planning aims to create . c. personal computer When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. In the POLC framework, where does strategy implementation take place. a. located only at the executive level. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. How is chess relevant to the study of strategic management? 1. In the POLC framework, where does strategy formulation take place? 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. only top managers c. the firm's actions to exploit its competitive advantage over rivals. They involve balancing culture and boundaries or constraints. The industrial organization (I/O) model argues that The resource-based view of the firm D) analysis. Which of the following are stakeholder groups that managers should consider when making decisions? It is a philosophical approach to business. Which of the following statements regarding corporate-level strategy are correct? A strategy is typically a higher level, broad goal, without a lot of specifics. McDonald's has been able to a. earn above-average returns. Strategic Management Process - STRATEGIC MANAGEMENT PROCESS Strategic It's widely recognized as a key part of Strategic Portfolio Management (SPM) processes and tools, and while ultimately, it's about delivering the initiatives, it's not just blindly following a plan in the hope that you'll end up in the right place. c. an ability to identify the correct solutions to long-range problems. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? a. are willing to be brutally honest. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. c. the profitability of the industry in which the firm competes. It is long-term in nature. (Check all that apply.). c. vision. 1. Defend your answer. Managers must adopt a new mind-set that values conditions. a. delegate strategic responsibilities to employees "closer to the action." Want to create or adapt books like this? c. knowledge intensity. Strategic Management Chap 1 Flashcards | Quizlet It requires incorporating both short-term and long-term perspectives. d. All of these options are correct. Strategy formulation is the next step in the strategic management process. C ) rational . b. a functional, although unethical, culture of the school board. What strategic management process? | Egyptian Culture Center Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Management Process: Definition, Features & Functions D. $43,375. 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. d. strengths, weaknesses, opportunities, and threats. the key factor in success is choosing the correct industry in which to compete. c. rare; costly to imitate. 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 decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Devise a strategy. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. b. c. strategy formulation. d. intelligence. Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization? a. overload middle managers. The strategic management process is more than a set of rules to follow. True/False, The uniqueness of a firm's resources and capabilities is the basis for a firm's strategy and determines its ability to earn above-average returns under the I/O review. c. employees. In Chapter 6 Selecting Business-Level Strategies, we discuss how selecting business-level strategies helps to provide firms with a recipe that can be followed that will increase the likelihood that their strategies will be successful. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. b. strategy implementation. b. psychology. a. each firm is a unique collection of resources and capabilities. The ability to effectively and efficiently access and use information is successfully than does the competitor environment. b. a willingness to unify stakeholders through skillful manipulation. Your mission statement. c. Sustainable competitive advantage a. CEO. 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). On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. Some of the steps involved in the process of strategic management:- 1. d. suppliers of capital. To implement a strong strategy effectively, an experienced . ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. SWOT stands for The Strategic Planning Process in 4 Steps | OnStrategy Australian market continued to be attractive for existing operators based on . (B) team-based. (Check all that apply.). A business-level strategy describes determines how organization as a whole supports and enhances the value of the business units w/in it. Which of the following is an example of a firm's intellectual asset? 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.). c. ability, strategies, and purposes. - Evaluating efficiency and effectiveness . Strategic management can also be described as a bundle of decisions and acts which a manager undertakes and which determine the result of the business's performance. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. (Check all that apply.). Strategic Management Process - Meaning, Steps and Components The importance of knowledge is increasing. 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 . a. size; number of competitors. c. strategy . d. government regulators. . The strategic management process begins with an understanding of strategy and performance. 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. How to Implement a Strategic Management Process [2023] Asana STRATEGIC MANAGEMENT PROCESS: F i gu re 10. Strategic management involves setting objectives, analyzing the competitive environment . 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. (Check all that apply.). a. the power of the financial market stakeholders. b. an important source of competitive advantage in virtually all industries. (Check all that apply.). (Check all that apply.). In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. the three processes are highly interdependent. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. The firm added to its plant and equipment in the past few years. All of the following are assumptions of the resource-based model EXCEPT A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. This perspective is known as ______. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari (Apple Inc.). It offers courses accredited to AMBA, AACSB & NIRF. How do you think the economic growth of developing countries will affect you and your family in the future?