Managers execute or implement their decisions as ______ in the third step of the strategic management process. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? It determines which business(es) should be in the company's portfolio. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. d. Internet. Study with Quizlet and memorize flashcards containing terms like . The ______ view of stakeholder management views the management process as groups competing for the organization's resources. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. a. industry; capability It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. 3. The strategic management process is more than a set of rules to follow. 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. What is the difference between strategy formulation and strategy implementation? b. regardless of their location in the organization d. the CEO, COO, and CFO only. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. b. I/O; resource-based d. critically important mainly in high technology industries. 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 . Which of the following actions by the CEO would be most consistent with this need? The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} Strategic management is the management of an organization's resources to achieve its goals and objectives. b. shareholders. After executing the environmental analysis process, management . 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. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. Strategic management of an organization entails which of the following ongoing processes? True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. You can view this video here: https://youtu.be/o0U0gwvnhek. Which statement about the triple bottom line is true? c. political dimensions. Planning in management is a process of choosing apt goals and actions to pursue, and then determining what strategies to use, what steps to take, and what resources are needed to achieve the goals. 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. b. . How do you think the economic growth of developing countries will affect you and your family in the future? The strategic management process is. 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. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. Strategy formulation is the next step in the strategic management process. b. rapid technological diffusion. C) strategy formulation. b. The strategic management process is. d. Revenue. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. (B) all policies and procedures used in functional departments. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. A business-level strategy describes The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. Strategy implementation is the final stage of the process. b. estimating the overall size of the pool. b. urgency of satisfying each stakeholder Name two benefits workers take for granted now that did not exist before labor organized. c. determining in which businesses to compete and how resources will be allocated between businesses. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. Explain Strategy formulation. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. c. what people do when no one else is looking. c. seek to increase their power. c. core competence. c. speed b. an important source of competitive advantage in virtually all industries. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. 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"). Performance of the firm is most directly attributable to c. employees. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. b. shareholders 1. Meaning of Strategic Management. Reward Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. An assessment od strengths, weakness, opportunities and threats. Strategic management is directed toward the organization's overall organizational ________ and ______. d. abilities; strategies. d. locate the most promising areas of an industry's value chain. The video for this lesson explains the strategic management process. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. A firm's vision, mission, and strategic objectives form a hierarchy of . Income statement information for Thain Corporation is provided below. ), Which of the following must a firm's strategy be consistent with? Managers are analyzing the firm's ______ when managers are studying its competitors. 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. a. vitally important at the point where a domestic firm enters the global market. 5. symbiosis; zero sum. a. values. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. The strategic management process is Accordingly, the strategic management and planning process consists of sequential five key steps; (i) Goal setting, (ii) Analysis strategy formation, (iii) Strategy formation, (iv) Strategy . c. economics. d. government regulators. . a. strategic mission. The strategic management process is a crucial element of any organization's success. The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. b. host communities. 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. New markets created by iPods, PDAs, and Wi-Fi are a result of one business-level strategy and one corporate-level strategy. In strategic management, effectiveness can best be described as ______. a. located only at the executive level. Characteristics of Strategic Management. Australian market continued to be attractive for existing operators based on . business, corporate, international, and entrepreneurial. Dissatisfied capital market stakeholders may: sell their stock, tighten loan covenants, and seek to increase their power. a. anthropology. The industrial organization (I/O) model argues that organizational versus individual rationality. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n): In the resource-based model, which of the following factors would be considered a key organizational success? c. strategy . It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . c. the I/O model. Sun Tzu's best-known work is The Art of War. b. all policies and procedures used in functional departments. c. re-centralize the responsibility for strategy to the CEO. A sustainable competitive advantage is not achieved through operational effectiveness alone. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. c. employees. d. All of these options are correct, Strategic delegation helps True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . Return b. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. (Check all that apply.). At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. This behavior has existed for decades, even as the membership in the school board has changed over time. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 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. Your long-term goals and/or BHAGs. Who typically develops a firm's mission statement? The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. The resource-based model of the firm argues that 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. The process of strategic management sometimes encompasses the formulation of important policies. c. profits that are accrued when a firm earns above-average returns. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. .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. b. determining how each functional department of the firm will operate. The strategies planned often fail in the process only due to inefficient implementation processes. Which of the following statements about organizational knowledge is correct? Owner/CEO, Strategy Leader. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. 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. Planning extensive employee training and hiring educated and experienced employees. d. hypercompetition. the three processes are highly interdependent. Which of the following statements regarding corporate-level strategy are correct? b. weak competition d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. c. Knowledge 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. capabilities are highly mobile across firms. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. Collect and review information to help make the upcoming strategic decisions. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. c. defining the competitors in the pool. True/False, Ms.Smith is a strategic leader of the firm. b. a willingness to unify stakeholders through skillful manipulation. b. strategy implementation. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. d. The Internet. 1. ______ is performing similar activities better than rivals do. 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 a. their return on investment has been maximized. Tasks, timelines, budgets, etc. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. True/False, The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities is the main source of above-average returns. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. 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". Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? A capability The message of the ad is that this firm's accountants love their work. (Check all that apply.). d. All of these options are correct. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. a. Knowledge is composed of all the following EXCEPT c. companies provide a dynamic, stimulating, and rewarding work environment. 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. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. . Why is it important to view strategic management as a process? . d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. A strategy Synonymous with business planning and strategic planning. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. The importance of knowledge is increasing. This model also guides our presentation of the chapters contained in this book. a. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. b. global competition. economic downturns or upturns, government legislation, new technologies. b. inspiring vision. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). a. overload middle managers. c. analyses; strategies Financial markets often place an emphasis on managers meeting ______ performance goals. b. local dimensions. (Check all that apply.). True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. https://youtu.be/o0U0gwvnhek. Definition. The first step in the strategic management process is to evaluate where you're going, and why. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Your mission statement. ______ 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. Strategic management is a process that requires the ability to manage change. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. . Match the strategic management process with its corresponding term. b. strategy implementation. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. Devise a strategy. It is a continuous process of analyzing and evaluating an organization's internal and external environment, setting objectives and goals, developing strategies, and implementing and controlling those strategies. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. 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. 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). c. the firm's actions to exploit its competitive advantage over rivals.