True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. d. the firm's chief executive officer, A prominent national accounting firm runs television advertisements showing an accountant working alone late in the office on a client's project, while clenching a long-stemmed rose in his teeth and grinning ecstatically. c. employees. (Check all that apply.). D) analysis. ), a destination that is driven by and evokes passion. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. A firm has achieved when it successfully formulates and implements a value-creating strategy. areas, are relatively rare. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. What are the four steps of the strategic management process? determines how organization as a whole supports and enhances the value of the business units w/in it. Firms use both the ______ and ______ models. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. (B) team-based. a. Which of the following statements about the strategic management process is true? a. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. The 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. b. the resource-based model. Devise a strategy. a. pool of assets that is distributed to investors. B. During the ______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries? Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. 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. d. the CEO, COO, and CFO only. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. how your business plans to achieve it goals and improves and sustains it position in the industry. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The first step in the strategic management process is to evaluate where you're going, and why. Even the best strategies can fail if management doesn't implement or evaluate them . (Check all that apply.). A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. b. inspiring vision. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. (Check all that apply.). d. government regulators. Who makes the strategic decisions for most organizations? Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. How to develop a strategic management process. b. host communities. Efficiency, in terms of strategic management, can best be described as ______. b. shareholders Strategic Management. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. examples of each based on your own experiences. A major assumption about the strategic management process is that it is Australian market continued to be attractive for existing operators based on . c. analyses; strategies (Check all that apply.). d. easy to implement; unique. c. strategy formulation. The two opposing ways of examining stakeholder management are called ______ and ______. - Resource analysis to select workforce and assign suitable tasks. a. unions. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. The goal of strategy implementation is to develop a permanent competitive advantage. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? 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. The third step of the strategic management process is the ______ step. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . 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 In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. The firm added to its plant and equipment in the past few years. 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. D. $43,375. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. b. abilities; strengths d. accounting. 2. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. A.$2,375. a. Income statement information for Thain Corporation is provided below. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. Which of the following statements is most consistent under the I/O view? 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 . All of the following are assumptions of the resource-based model EXCEPT Collect and analyze information. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Reward c. Risk d. Revenue ANSWER: c 105. a. strategy, wealth, organization, and threats. b. located in different areas and levels. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. Environmental and internal scanning is the next stage in the process. b. strategy implementation. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. c. focus on strategy implementation. c. the CEO and top managers 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. b. determining how each functional department of the firm will operate. It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. c. strategy formulation. 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? 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 . Synonymous with business planning and strategic planning. a. are willing to be brutally honest. 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. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. 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. Planning. 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. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. ), Which of the following must a firm's strategy be consistent with? The final responsibility for forming the organization's mission lies with the c. the key to earning above-average returns is strategic flexibility. Litigation. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? a. globalization. (. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? 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. a. located only at the executive level. c. the firm's actions to exploit its competitive advantage over rivals. b. mission In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. The resource-based view of the firm The primary drivers of hypercompetition are, All of the following are characteristic of the global economy EXCEPT, The economic interdependence among countries as reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as, . a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Authors: Tanya Sammut-Bonnici. b. team-based. It improves the company's problem-solving and prevents capabilities. c. seek to increase their power. d. focus on innovation. 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. Strategic management requires that ______. ), Which of the following are examples of business-level strategies? d. Revenue. 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. b. c. rational. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Managers must adopt a new mind-set that values conditions. d. locate the most promising areas of an industry's value chain. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. ______ is performing similar activities better than rivals do. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. Strategic Management can be found in . Importance of Strategic Management. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. It determines which business(es) should be in the company's portfolio. Return 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). What other games might help teach strategic thinking. b. local dimensions. A sustainable competitive advantage is not achieved through operational effectiveness alone. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. 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. Figure 1.8: Shirinsokhan, Mahmoudreza. A strategy is typically a higher level, broad goal, without a lot of specifics. d. All of these options are correct. . d. strategy. d. suppliers of capital. 2. d. intelligence. (Check all that apply.). It is a . Explain Strategy formulation. Overall, strategic management is an important part of an organization's development and overall performance. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. 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. Use the simple interest formula method. The strategic leader's work is characterized by b. the industry's structural characteristics have little impact on a firm's performance over time. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). d. inclusive. a. values. 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. a. only the CEO The firm makes less efficient use of its assets than other firms. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. a. all resources have the potential to be the basis of sustainable competitive advantage. d. a firm's resources, intent, and mission. Defend your answer. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. b. one business-level strategy. The two opposing ways of examining stakeholder management are called ______ and ______. c. ability, strategies, and purposes. d. All of these options are correct. 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. For instance, a SWOT analysis (Strengths-Weaknesses . b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. [1] Using the definition of strategic management above then, the strategic management process is "the coordinated means by which an organization achieves its goals and objectives.". Your company's core competencies. d. a school board lacking in core competencies. d. analysis. d. organization's stakeholders. 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'. A strategic management process is an essential tool for any organization looking to optimize performance and reach success. The resource-based model of the firm argues that The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. a. This ad seeks to convey a sense of the organization's to the viewers. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) - Executing plans and strategies. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. (Remember to type only one word in the blank.). d. hypercompetition within the industry. Capital market stakeholders include 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. This behavior reflects b. oil drilling rights in a promising region. 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. b. innovation It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. All of the following are resources of an organization EXCEPT local line leader -> have significant profit-and-loss responsibility. 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. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. . c. the key to competitive success is the structure of the industry in which the firm competes. c. the profitability of the industry in which the firm competes. The second step in the strategic management process is ______. In the instance, the implementation . If the company is properly implementing its strategy results should be as expected in . 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. Corporate-level strategy focuses on ______. the three processes are highly interdependent. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. d. abilities; strategies. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market.