Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. Strategic planning aims to create . d. All of these options are correct. d. hypercompetition. . Organizational goals and objectives should represent what is best for ______. b. located in different areas and levels. a. pool of assets that is distributed to investors. This improved performance is best explained by: Research shows that approximately ___ percent of a firm's profitability is explained by the industry in which it competes, whereas ___ percent is explained by the firm's characteristics and actions. Successful strategic leaders are d. inclusive. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Knowledge is composed of all the following EXCEPT Identify your goals. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. (2014, November 29). ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. The message of the ad is that this firm's accountants love their work. Which of the following statements about operational effectiveness are correct? . It's the process of determining the decisions an organization should take. In the POLC framework, where does strategy formulation take place? D. $43,375. a. globalization. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. This involves developing specific strategies and actions. . In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . . Match the strategic management process with its corresponding term. Managers must take a(n) ______ view of the organization and assess how functional areas and activities fit together so that the organization can achieve its goals and objectives. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. - Formulating an action plan and strategies. d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. b. abilities; strengths The profit pool is the The invention of the car is an early example of: A company's ability to acquire knowledge is: an important source of competitive advantage in all industries. b. resources to implement strategies are firm-specific and attached to firms over the long-term. \text{Cost of goods sold}&\text{493,000}\\ Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . (Check all that apply. The importance of knowledge is increasing. This ad seeks to convey a sense of the organization's to the viewers. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. c. economics. Chess CC BY-NC 2.0. . Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. 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? All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. c. strategic power Strategic management requires that ______. a. analyses; strengths A company had a beginning balance in retained earnings of $52,000. It requires incorporating both short-term and long-term perspectives. \begin{array}{llr} a. en.wikipedia.org/wiki/Apple_Inc._ litigation. Owner/CEO, Strategy Leader. Which of the following are reasons vision statements sometimes fail? 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. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. Afra Alnaimi. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University ), Business-level strategy is concerned with how companies ______. The resource-based view of the firm The video for this lesson explains the strategic management process. c. core competence. Return Greenleaf will not be able to minimally satisfy all stakeholders. 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. 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 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. (Check all that apply.). Continuous learning [1]. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. a. each firm is a unique collection of resources and capabilities. . c. vulnerability of organizational stakeholders ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. c. competition; competency E.$(11,375). c. what people do when no one else is looking. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. It is important to emphasize that almost all strategic management process decisions have ______ because they are related to how a firm interacts with its stakeholders. This improved performance is best explained by Even the best strategies can fail if management doesn't implement or evaluate them . c. determine whether an industry will be viable in the long term. The I/O model is grounded in b. return on equity. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. Feedback may occur at all times to revise these actions. What are the four levels of a company's strategy formulation? Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. c. decisive. b. television c. A mission a. return on assets. (Check all that apply.). The external control view of leadership emphasizes the role of which of the following types of factors in the success or failure of a firm? All of the following are assumptions of the industrial organization (I/O) model EXCEPT Strategic Management. What is the Strategic Management process? The strategic management process is. The 5 stages of the strategic management process. 2. It guides the company to move in a specific direction. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? The ability to effectively and efficiently access and use information is The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. 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. The culmination of the strategic management process is a. performance. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? c. Risk Is is measure by its ___. .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. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. a. an hourly production employee's ability to catch subtle quality defects in products. ), what business(es) should the company compete in. After executing the environmental analysis process, management . 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. The Princeton Alliance Church states in its website that "PAC exists to help you live life to the fullest by knowing God, developing community and bringing hope." c. one business-level strategy for failure. In order to cope with hypercompetition, firms need to develop through continuous learning. 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 goal of strategy implementation is to develop a permanent competitive advantage. d. a charity's endowment of $400 million. b. focus on strategy formation. (Check all that apply. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. Companies have realized that failure to measure it can negatively affect the company and its community. c. rational. Meaning of Strategic Management. Owner/CEO, Strategy Director. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. SWOT stands for a. size; number of competitors. successfully than does the competitor environment. Strategy formulation is the next step in the strategic management process. Managers execute or implement their decisions as ______ in the third step of the strategic management process. In the instance, the implementation . d. a firm's resources, intent, and mission. This is because the organization's role as a taxpayer is most important to as stakeholders. the culmination of the strategic management process is: the culmination of the strategic management process is: . _________ strategy is a combination of deliberate and emergent strategies. 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. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. d. abilities; strategies. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. c. the minimum required for survival in virtually any industry. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. 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. (Check all that apply. Collect and analyze information. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. Strategic Management Process [Video]. b. A sustainable competitive advantage is not achieved through operational effectiveness alone. b. psychology. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. 3. b. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. c. the lack of an organizational mission for the school board. (Check all that apply.). The firm added to its plant and equipment in the past few years. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. 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. The final responsibility for forming the organization's mission lies with the Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. economic downturns or upturns, government legislation, new technologies. c. tactic In smaller, new venture firms, returns are sometimes measured in terms of c. strategy . d. increasing the profitability of the firm. d. expand the strategic responsibilities to all organizational stakeholders. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) The culmination of the strategic management process is 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. Retrieved from https://flic.kr/p/bPNmxi. Consequently, executives must be careful to monitor and to interpret the events in their environment, to take appropriate actions when change is needed, and to monitor their performance to ensure that their firms are able to survive and, it is hoped, thrive over time. a. 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. d. government regulators. (Check all that apply.). b. determining how each functional department of the firm will operate. Planning extensive employee training and hiring educated and experienced employees. A vision statement can lead to missed opportunities when it ______. 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. c. ability, strategies, and purposes. (Check all that apply.). For example, intellectual property is a vital resource for Apple. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. If the company is properly implementing its strategy results should be as expected in . There are provisions to create, implement and appraise . c. economies of scale b. estimating the overall size of the pool. determines how organization as a whole supports and enhances the value of the business units w/in it. 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. b. committed to nurturing those around them. b. rapid technological diffusion. d. The firm uses straight-line depreciation. 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 . Social responsibility is the expectation that businesses or individuals will strive to ______. c. the interests of the firm's organizational stakeholders have been maximized. Which of the following are needed in order for entrepreneurial initiatives to be successful? Which of the following are true of behavioral controls? 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. a functional, although unethical, culture of the school board. . 09.23.22 Estimated Duration. a. located only at the executive level. a. the core values of the school board as an organization. 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. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? Alfred Chandler, 1962. 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. estimating the size of the value-chain activity in the pool. It is a process that requires a systematic . b. predict growth in sales over the medium to long range. D) analysis. b. I/O; resource-based c. return on sales. a. sell their stock. d. strengths, weaknesses, opportunities, and threats. 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 are stakeholder groups that managers should consider when making decisions? It involves identifying internal and external factors and understanding how they affect an organization. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies a. strategy, wealth, organization, and threats. Rationalize the denominator of each fraction and simplify. (Check all that apply. A firm's hierarchy of goals include its ______. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. b. shareholders. d. focus on innovation. Which of the following are characteristics of a well-written organizational vision statement? a. defining the boundaries of the pool. The strategic management process is Determine organizational readiness. Strategic management is the process of defining and implementing an organization's strategy. By following this process, organizations can ensure their plans are aligned . incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? Chapter Layout for Strategic Management. CC BY-SA 4.0. a. inspired. 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. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. d. Organizational intelligence. b. strategy In such a . c. use the strategic management process. c. The firm has a lot of old plant and equipment. In the strategic management process ASP stands for As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. Effective strategies Apple uses to create loyal customers. $$ b. mission. a. at the top of the organization Which of the following is an example of a firm's intellectual asset? The culmination of the strategic management process is: a. performance. d. The Internet. Dissatisfied capital market stakeholders may c. is mainly intended to emotionally inspire employees and other stakeholders. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". (D) inclusive. d. ability, successes, and performance. d. concentration on the practical day-to-day aspects of the organization's operations. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. Write the key term that best matches each description. 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. c. re-centralize the responsibility for strategy to the CEO. c. determining in which businesses to compete and how resources will be allocated between businesses. Return b. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. a. values. d. analysis. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. - Evaluating efficiency and effectiveness . Inside CRM Editors. 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. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Organizational stakeholders include The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Which of the following statements is most consistent under the I/O view? d. Internet. 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. 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. You can view this video here: https://youtu.be/o0U0gwvnhek. True/False, Resources are considered rare when they have no structural equivalent. The strategic management provides a base for the organization on the basis of which progress can be measured and on the basis of the same, the employees can be compensated. Environmental Scanning 2. The essence of strategic management is the study of why some firms ______. (Check all that apply.). strategic objectives. How to develop a strategic management process. a. flexibility b. innovation c. speed d. All of these options are correct. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. Sun Tzu's best-known work is The Art of War. Study with Quizlet and memorize flashcards containing terms like . a. committed to helping the firm create value for all stakeholder groups. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. a. strategic competitiveness b. a permanently sustainable . 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. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. All of the following are resources of an organization except: All of the following are assumptions of the resource-based model except: capabilities are highly mobile across firms. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. (Check all that apply.). The is the most critical criterion in prioritizing stakeholders. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. c. avoid too much managerial hubris. The steps in the strategic management process include the seven - the development of vision and mission, external and internal environment analysis, establishing long-term objectives, generating, evaluating, and selecting strategies, implementation, and strategy evaluation and control. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. It helps in analyzing the internal and external factors influencing an organization. True/False, Developed countries still have major advantages in their access to information technology when compared to emerging countries because of the significant cost of the infrastructure needed for computing power. \text{Gross profit}&\text{357,000}\\ In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Which of the following statements about the strategic management process is true? d: 70: 3884478507 A business-level strategy describes 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. 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. All of the following are assumptions of the resource-based model EXCEPT New markets created by iPods, PDAs, and Wi-Fi are a result of b. global competition. Which of the following actions by the CEO would be most consistent with this need? A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. b. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? Here are the key elements of strategic management. 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.