How much interest was earned? The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. Strategic management is directed toward a company's ______. 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. 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, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. a. disruptive technologies. The essence of strategic management is the study of why some firms ______. can be identified when competitors are unable to duplicate or find it too costly to try to imitate, returns in excess of what an investor expects to earn from other investments with a similar level of risk, the formulation and implementation of a full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. 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. return on assets. d. A goal, Strategic leaders are The strategic management process is a crucial element of any organization's success. (Check all that apply. Strategic Management Process [Video]. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. c. vision b. all policies and procedures used in functional departments. a. the power of the financial market stakeholders. 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. (Check all that apply.). The process of strategic management sometimes encompasses the formulation of important policies. a. suppliers. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. a. committed to helping the firm create value for all stakeholder groups. 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. c. economies of scale The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have This involves developing specific strategies and actions. d. easy to implement; unique. Which statement about the triple bottom line is true? Capital market stakeholders include It is a . d. analysis. Match the strategic management process with its corresponding term. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. a. strategic mission. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. d. differences in resources and capabilities are the basis of competitive advantage. b. achieve strategic competitiveness. a. How is chess relevant to the study of strategic management? Performance of the firm is most directly attributable to Strategic Goals: a. It involves action plans that ensure continued performance and thriving progression. Firms don't apply for patents so that competitors can't access information in the patents. Study with Quizlet and memorize flashcards containing terms like . B. Apple's iPod and iPad are examples of Some of the steps involved in the process of strategic management:- 1. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. a. Perpetual a. insight. b. host communities. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. a. power of each stakeholder is a capacity for a set of resources to perform a task or an activity in an integrative manner. Which of the following statements is most consistent under the I/O view? a. size; number of competitors. a. strategic competitiveness b. a permanently sustainable . Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. b. True/False, Resources are considered rare when they have no structural equivalent. ______ 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. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. (Remember to type only one word in the blank.). d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. c. 36; 20 Want to create or adapt books like this? A vision Knowledge is composed of all the following EXCEPT Apple Inc. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. b. analyses, strategies, and performance. Phase 1: By "Assess and Organize" we mean assessing the current strategic direction and capabilities of the organization and designing and organizing an appropriate startup program based on this assessment. Organizational culture refers to _________ strategy is a combination of deliberate and emergent strategies. a. an hourly production employee's ability to catch subtle quality defects in products. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. In strategic management, effectiveness can best be described as ______. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. a. the businesses in which the company intends to compete. d. 20; 36. a. unique; easy to imitate. ), Which of the following must a firm's strategy be consistent with? True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . 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. en.wikipedia.org/wiki/Apple_Inc._ litigation. c. strategic power a. flexibility b. innovation c. speed d. All of these options are correct. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. 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. It improves the company's problem-solving and prevents capabilities. . local line leader -> have significant profit-and-loss responsibility. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. c. determine whether an industry will be viable in the long term. (Check all that apply. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. a. delegate strategic responsibilities to employees "closer to the action." Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . a. ethical dimensions. (B) team-based. The culmination of the strategic management process is: A) performance. 2. b. I/O; resource-based Dissatisfied capital market stakeholders may c. in the finance area 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. - Executing plans and strategies. The company requires that all divisions generate a minimum return on invested assets of 8 percent. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. d. strengths, weaknesses, opportunities, and threats. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. a. goal b. strategic flexibility d. Internet. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is: obtaining reliable products at the lowest possible price. Planning Team and Executive Team. c. vision. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. b. shareholders It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. .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. d. the CEO, COO, and CFO only. Firms use the five forces model to identify the of the industry as measured by its d. culture. b. easy to imitate; difficult to implement. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. b. television incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? b. success, weakness, opportunities, and taxes. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. A company competing in a single product market has. 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. d. hypercompetition. b. local dimensions. c. capabilities are highly mobile across firms. Reward c. Risk d. Revenue ANSWER: c 105. the three processes are highly interdependent. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. \text{Sales}&\text{\$850,000}\\ The 5 stages of the strategic management process. 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. Name two benefits workers take for granted now that did not exist before labor organized. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. What is the difference between strategy formulation and strategy implementation? True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Is is measure by its ___. For example, intellectual property is a vital resource for Apple. 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. b. team-based. Effective strategic leaders a. the march of globalization. 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. Owner/CEO, Strategy Leader. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. c. knowledge intensity. All of the following are assumptions of the industrial organization (I/O) model EXCEPT $46,375 Analysis of the industry's profit pool enables strategic managers to Which of the following is an example of a firm's intellectual asset? 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. Collect and analyze information. 1+x1x. Feedback may occur at all times to revise these actions. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to: delegate strategic responsibilities to employees "closer to the action". Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. 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. C ) rational . The process hinges on the philosophical approach that if a leader "thinks . 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. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. D) analysis. Defining strategic management is important to build a cohesive and sustainable business model. d. companies are paying the highest prices to suppliers, Product market stakeholders include a. a. located only at the executive level. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} Pearce and Robinson, 1988. a. competitive resilience The first step in the strategic management process is to evaluate where you're going, and why. Owner/CEO, Strategy Director. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. b. mission c. the minimum required for survival in virtually any industry. The strategic management process is a. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. Who typically develops a firm's mission statement? - Formulating an action plan and strategies. (Check all that apply.). c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. The Snack Division's operating margin for the year was $6.5\$ 6.5$6.5 million, during which time its average invested capital was $50\$ 50$50 million. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. c. obtaining reliable products at the lowest possible price. It is long-term in nature. c. rational. 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. A major assumption about the strategic management process is that it is 3. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? a. maximizing the firm's return on investment. d. ability, successes, and performance. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas 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. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. This behavior reflects YouTube. d. sustainable market niche. b. return on equity. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. (2014, November 29). d. analysis. A capability Australian market continued to be attractive for existing operators based on . One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. Chapter 8 Selecting Corporate-Level Strategies focuses on selecting corporate-level strategies, and Chapter 9 Competing in International Markets presents possibilities for firms competing in international markets. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. 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.). 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? 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. Strategy execution management is the evolution of traditional project delivery. a. overload middle managers. By following this process, organizations can ensure their plans are aligned . a. 09.23.22 d. unions, Organizational stakeholders are usually satisfied when d. focus on innovation. (Check all that apply. b. strategy Alfred Chandler, 1962. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . Learn more about how Pressbooks supports open publishing practices. Strategic management is the process of defining and implementing an organization's strategy. A firm's mission Environmental and internal scanning is the next stage in the process. \text{Cost of goods sold}&\text{493,000}\\ a. defining the boundaries of the pool. d. strategy. The goal of strategy implementation is to develop a permanent competitive advantage. Firms use both the _____and______models. 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. Establish your planning team and schedule. 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, . ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. d. hypercompetition within the industry. d. products that were not imitated by competitors. How to develop a strategic management process. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. You can view this video here: https://youtu.be/o0U0gwvnhek. ____has become the second-largest economy in the world. 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. Effective strategies Apple uses to create loyal customers. A firm's vision, mission, and strategic objectives form a hierarchy of . Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . 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 c. defining the competitors in the pool. 1. All of the following are resources of an organization EXCEPT 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 . Strategy formulation is the next step in the strategic management process. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. 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. Write the key term that best matches each description. 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. organization's stakeholders. A firm has achieved when it successfully formulates and implements a value-creating strategy. The second step in the strategic management process is ______. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and Rationalize the denominator of each fraction and simplify. b. estimating the overall size of the pool. \begin{array}{llr} d. a charity's endowment of $400 million. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. c. hypercompetition; technology diffusion. b. UMT360's Strategy Execution Management solution. A.$2,375. a. analyses, successes, and purposes. d. All of these options are correct. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. The resource-based model of the firm argues that Characteristics of Strategic Management. Which of the following statements about operational effectiveness are correct? a. goal b. strategy c. tactic d. mission ANSWER: b 104. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) Let us take a look at the five conventional functions of the management process. b. one business-level strategy. 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. expertise. a. are willing to be brutally honest. For instance, a SWOT analysis (Strengths-Weaknesses . a. the key factor in success is choosing the correct industry in which to compete. Meaning of Strategic Management. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Strategic management is directed toward the organization's overall organizational ________ and ______.

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