An assessment od strengths, weakness, opportunities and threats. It should seek to diversify. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. c. a process directed by top . c. employees. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. It involves action plans that ensure continued performance and thriving progression. A capability d. competitive dominance. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. The two primary drivers of hyper-competition are the emergence of the global economy and technology. It requires incorporating both short-term and long-term perspectives. d. hypercompetition within the industry. 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. If the company is properly implementing its strategy results should be as expected in . 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. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. (B) all policies and procedures used in functional departments. (Check all that apply.). 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. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. The firm added to its plant and equipment in the past few years. a. competitive resilience Companies have realized that failure to measure it can negatively affect the company and its community. 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. are willing to be brutally honest. Analysis of the industry's profit pool enables strategic managers to Strategic management is directed toward the organization's overall organizational ________ and ______. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. 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. b. globalization; exports. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. 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 . Who typically develops a firm's mission statement? c. defining the competitors in the pool. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. a. an hourly production employee's ability to catch subtle quality defects in products. What is the Strategic Management process? b. a functional, although unethical, culture of the school board. c. vision $46,375 c. competition; competency a. strategic mission. See the examples before. 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. The steps for identifying the profit pools in an industry include all of the following EXCEPT This pronouncement is most precisely a statement of organizational b. shareholders. (Check all that apply. It improves the company's problem-solving and prevents capabilities. 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. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. Which of the following statements is most consistent with the I/O view? Strategic Goals: d. The firm uses straight-line depreciation. How to develop a strategic management process. 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. c. focus on strategy implementation. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. d. a school board lacking in core competencies. A firm has achieved when it successfully formulates and implements a value-creating strategy. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. Some of the steps involved in the process of strategic management:- 1. The industrial organization (I/O) model argues that 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. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. c. economies of scale 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. This model also guides our presentation of the chapters contained in this book. d. All of these options are correct. It helps in analyzing the internal and external factors influencing an organization. This behavior reflects The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. Synonymous with business planning and strategic planning. b. located in different areas and levels. What are the four steps of the strategic management process? Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. c. one business-level strategy for failure. A core competence c. political dimensions. a. flexibility d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. Why is it important to view strategic management as a process? To implement a strong strategy effectively, an experienced . Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . Name two benefits workers take for granted now that did not exist before labor organized. Determine organizational readiness. Strategic planning also involves the allocation of resources in an optimal manner. a. inspired. In Wikipedia. . Managers must adopt a new mind-set that values conditions. a. one corporate-level strategy. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. 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. a. their return on investment has been maximized. Learn more about how Pressbooks supports open publishing practices. A company competing in a single product market has. a. sell their stock. (Check all that apply.). True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. (Check all that apply.). Planning Team and Executive Team. The strategic leader's work is characterized by c. the CEO and top managers d. hypercompetition. b. predict growth in sales over the medium to long range. a. size; number of competitors. The goal of strategy implementation is to develop a permanent competitive advantage. _________ strategy is a combination of deliberate and emergent strategies. (Check all that apply.). b. 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. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. a. culture a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. A firm's mission a. values. Performance of the firm is most directly attributable to The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. Which of the following state the goals and intentions that help define a firm's competitive advantage? . Explain Strategy formulation. c. employees. b. team-based. Sound strategies are of no value if they ______. examples of each based on your own experiences. 1. The culmination of the strategic management process is 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. b. the resources the firm possesses. Pearce and Robinson, 1988. The strategic management process is a. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. A vision Performance of a firm is most directly attributable to: the profitable of the industry in which the firm competes, Firms use the five forces model of competition to identify the ___ of the industry. 2. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. c. the firm's actions to exploit its competitive advantage over rivals. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. 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. A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. Which of the following are true of behavioral controls? \begin{array}{llr} Write the key term that best matches each description. d. strengths, weaknesses, opportunities, and threats. 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. 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. 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. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. Establish your planning team and schedule. A major assumption about the strategic management process is that it is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. c. weak competitors in the industry. Knowledge is an intangible resource. b. shareholders. c. ability, strategies, and purposes. Characteristics of Strategic Management. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . 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. c. the lack of an organizational mission for the school board. b. the resource-based model. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. Strategy execution management is the evolution of traditional project delivery. a. committed to helping the firm create value for all stakeholder groups. b. abilities; strengths For example, intellectual property is a vital resource for Apple. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. Which of the following statements regarding corporate-level strategy are correct? d. easy to implement; unique. c. Risk 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. b. mission c. The value of knowledge as a proportion of shareholder value is increasing. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. Capital market stakeholders include True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. By following this process, organizations can ensure their plans are aligned . The process of implementation of strategy starts with the identification of key managerial tasks which form the basis for the creation of strategy starts with the identification of key Which of the following is an example of a firm's intellectual asset? a. goal b. strategy c. tactic d. mission ANSWER: b 104. True/False, Although organizational cultures vary considerably, one cannot make an objective judgement that some organizational cultures are more or less functional than others in terms of ethical considerations. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. a. major suppliers of capital The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. a. located only at the executive level. c. tactic A firm's hierarchy of goals include its ______. . Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. c. determining in which businesses to compete and how resources will be allocated between businesses. b. a. anthropology. shareholders, management, and the board of directors. ), Which of the following must a firm's strategy be consistent with? b. total profits earned in an industry along all points of the value chain. c. core competence. The three primary participants in corporate governance are the ______, management, and board of directors. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. Efficiency, in terms of strategic management, can best be described as ______. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. 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." determines how organization as a whole supports and enhances the value of the business units w/in it. d. All of these options are correct, Strategic delegation helps What is the Strategic Management process? ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. 2. The importance of knowledge is increasing. b. resources to implement strategies are firm-specific and attached to firms over the long-term. 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. Continuous learning The strategic management process begins with an understanding of strategy and performance. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. 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. 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. The first step in the strategic management process is to evaluate where you're going, and why. A retail outlet can attempt several remedies to improve profitability to meet the expectations of its ___ stakeholders, including closing stores, changing the top management team, and seeking potential buyers. Strategic management is when you identify and develop strategies developing strategies for employees to follow in order to perform better and achieve a competitive edge. b. shareholders In strategic management, effectiveness can best be described as ______. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). b. only top managers d. culture. Planning extensive employee training and hiring educated and experienced employees. c. host communities 97.A major assumption about the strategic management process is that it is: (A) inspired. c. disruptive technologies. d. locate the most promising areas of an industry's value chain. Your company's core competencies. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas c. in the finance area successfully than does the competitor environment. A strategic management process can help guide the decisions and actions of senior executives within an organisation. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The resource-based view of the firm Refer to the Terms to Know in the Summary & Study Guide on page 551. a method in which farmers move every one to three years to find better soil. 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. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. (D) inclusive. The ability to effectively and efficiently access and use information is Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. In the instance, the implementation . Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? 09.23.22 The message of the ad is that this firm's accountants love their work. What is the difference between strategy formulation and strategy implementation? The rate of technology diffusion has been steadily increasing over the last two decades. The final responsibility for forming the organization's mission lies with the The two opposing ways of examining stakeholder management are called ______ and ______. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. 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.). \text{Gross profit}&\text{357,000}\\ Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. The Jayhawks Rising Strategic Alignment Model is the culmination of a multi-year strategic planning process involving many groups and individuals who proposed hundreds of ideas for how to advance us toward our vision to be an exceptional learning community that lifts each member and advances society. 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. a. ethical dimensions. The video for this lesson explains the strategic management process. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. . c. vision. The profit pool is the 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. In order for strategic objectives to be meaningful they need to be ______. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. a. vision Effective strategies Apple uses to create loyal customers. d. personality. 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 . There are provisions to create, implement and appraise . a. the key factor in success is choosing the correct industry in which to compete. Knowledge is composed of all the following EXCEPT a. a. power of each stakeholder 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. What are the four levels of a company's strategy formulation? Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. a. analyses, successes, and purposes. c. the interests of the firm's organizational stakeholders have been maximized. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. c. return on sales. \text{Sales}&\text{\$850,000}\\ b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. . d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. ), a destination that is driven by and evokes passion. The strategic management process is. a. pool of assets that is distributed to investors. c. The firm has a lot of old plant and equipment. In the POLC framework, where does strategy formulation take place? b. success, weakness, opportunities, and taxes. 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. b. mission . b. urgency of satisfying each stakeholder C) strategy formulation. It involves identifying internal and external factors and understanding how they affect an organization. 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. 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. symbiosis; zero sum. 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. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. B) strategy implementation. The second step in the strategic management process is ______. A company competing in a single product market has Introduction. c. speed a. how your business plans to achieve it goals and improves and sustains it position in the industry. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. Effective strategic leaders Generally speaking, product market stakeholders are satisfied when Meaning of Strategic Management. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). Which statement about the triple bottom line is true? In such a . Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. d. unions, Organizational stakeholders are usually satisfied when A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______.