. The value of SWOT analysis parallels ideas from classic military strategists such as Sun Tzu, who noted the value of knowing yourself as well as your opponent. Which of the following is an example of a firm's intellectual asset? Is is measure by its ___. (. . Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. Benefits and limitations of strategic management a. located only at the executive level. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. 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). Chapter Layout for Strategic Management. CC BY-SA 4.0. Synonymous with business planning and strategic planning. 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. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? a. analyses; strengths b. strategy implementation. en.wikipedia.org/wiki/Apple_Inc._ litigation. c. employees. The culmination of the strategic management process is a. performance. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). c. rare; costly to imitate. b. the resource-based model. a. predict future revenue streams for the organization. This behavior reflects Capital market stakeholders include The Complete Guide to Strategy Evaluation - Creately Blog ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. b. executives control strategy implementation. It guides the company to move in a specific direction. Tasks, timelines, budgets, etc. Which of the following statements regarding strategic management is true? Firms use both the ______ and ______ models. d. critically important mainly in high technology industries. d. government regulators. d. A goal, Strategic leaders are a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The triple bottom line measures the performance of which of the following? Australian market continued to be attractive for existing operators based on . Strategy formulation is the next step in the strategic management process. a. performance. The strategic management process begins with an understanding of strategy and performance. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. a. at the top of the organization b. mission. UMT360's Strategy Execution Management solution. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 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. Owner/CEO, Strategy Director. What is Strategic Management? definition, process and importance b. total profits earned in an industry along all points of the value chain. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. It is important to consider that the decision: has ethical implications for organizational stakeholders. Performance of a firm is most directly attributable to: the profitable of the industry in which the firm competes, Firms use the five forces model of competition to identify the ___ of the industry. a. inspired. [1]. A comprehensive & ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges such that the firm achieves its vision and mission. Managers must adopt a new mind-set that values conditions. B) strategy implementation. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Introduction. Key Elements of Strategic Management | FounderJar a. analyses, successes, and purposes. Collect and review information to help make the upcoming strategic decisions. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. It involves action plans that ensure continued performance and thriving progression. d: 70: 3884478507 A sustainable competitive advantage is not achieved through operational effectiveness alone. a. operating each individual business under the corporate umbrella. c. strategic power In smaller, new venture firms, returns are sometimes measured in terms of What is Strategic Management and Why is it Important? a. goal b. strategy c. tactic d. mission ANSWER: b 104. a. vision The three primary participants in corporate governance are the ______, management, and board of directors. a. ambiguous decision situations which make effective decisions difficult to determine. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. Explain your reasoning. The strategic management process begins with an understanding of strategy and performance. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. The steps for identifying the profit pools in an industry include all of the following EXCEPT A firm's mission 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. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) a. size; number of competitors. Environmental and internal scanning is the next stage in the process. A comprehensive & ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges such that the firm achieves its vision and mission. b. strategy 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. Identify your goals. d. global dimensions. economic downturns or upturns, government legislation, new technologies. c. vision Performance of the firm is most directly attributable to a. are willing to be brutally honest. c. information. Strategic management is directed toward the organization's overall organizational ________ and ______. What is the difference between strategy formulation and strategy implementation? It is long-term in nature. Figure 1.8: Shirinsokhan, Mahmoudreza. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. New markets created by iPods, PDAs, and WiFi are a result of: Henry Ford once said, "If I had asked people what they wanted, they would have said faster horses." Strategic management is the management of an organization's resources to achieve its goals and objectives. 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. In the POLC framework, where does strategy formulation take place? A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. (C) rational. d. 20; 36. examples of each based on your own experiences. a. Apple's iPod and iPad are examples of c. knowledge intensity. . 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 two opposing ways of examining stakeholder management are called ______ and ______. d. ability, successes, and performance. The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? d. focus on innovation. c. 36; 20 How to Implement a Strategic Management Process [2023] Asana c. defining the competitors in the pool. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. 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. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. Which of the following statements about the strategic management process is true? Which of the following statements about organizational knowledge is correct? True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. 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. In the POLC framework, where does strategy implementation take place. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. 1. The rate of technology diffusion has been steadily increasing over the last two decades. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. d. sustainable market niche. 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. All of the following are assumptions of the resource-based model EXCEPT The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. d. a school board lacking in core competencies. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. Firms use both the _____and______models. The company requires that all divisions generate a minimum return on invested assets of 8 percent. It requires incorporating both short-term and long-term perspectives. Understanding the Strategic Management Process The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. What is Strategic Management Process? - Economics Discussion A firm has achieved when it successfully formulates and implements a value-creating strategy. Match the type of leader (on the left) with the corresponding description (on the right). Sound strategies are of no value if they ______. d. intelligence. (Check all that apply. Strategic Management Advantages and Disadvantages - Wisestep ), Which of the following are examples of business-level strategies? The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. b. global competition. 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. a. maximizing the firm's return on investment. The third step of the strategic management process is the ______ step. D) analysis. Which of the following statements regarding corporate-level strategy are correct? STRATEGIC MANAGEMENT PROCESS: F i gu re 10. (B) team-based. This involves developing specific strategies and actions. (2014, November 29). b. top-management team. . The ending balance in retained earnings equals: a. unique; easy to imitate. 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. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University b. the industry's structural characteristics have little impact on a firm's performance over time. a. an hourly production employee's ability to catch subtle quality defects in products. a. strategic mission. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. c. The value of knowledge as a proportion of shareholder value is increasing. a. strategic competitiveness b. a permanently sustainable . What other games might help teach strategic thinking. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. a. suppliers. SWOT stands for The strategic management process is c. decisive. 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. Strategic Management Process Steps, Components & Examples Strategic management is directed toward a company's ______. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. 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. 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? A firm's vision, mission, and strategic objectives form a hierarchy of . 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. It involves identifying internal and external factors and understanding how they affect an organization. Environmental Scanning 2. Which of the following actions by the CEO would be most consistent with this need? b. focus on strategy formation. Characteristics of Strategic Management. b. host communities. The second step in the strategic management process is ______. Strategic management is when you identify and develop strategies developing strategies for employees to follow in order to perform better and achieve a competitive edge. b. all policies and procedures used in functional departments. 97.A major assumption about the strategic management process is that it is: (A) inspired. d. located at different levels, but only in the operating area of the organization, . c. a process directed by top management with input from other stakeholders that seeks to achieve above- average returns for investors through effective use of the organization's resources. 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. b. rapid technological diffusion. a. competitive resilience In the strategic management process ASP stands for It is a process that requires a systematic . Which of the following are characteristics of a well-written organizational vision statement? b. resources to implement strategies are firm-specific and attached to firms over the long-term. (Check all that apply. d. Internet. - Formulating an action plan and strategies. This activity is important because proper use of strategic management techniques . Analysis of the industry's profit pool enables strategic managers to Return [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.". 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. obtaining reliable products at the lowest possible price. Who makes the strategic decisions for most organizations? Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. d. hypercompetition. a. Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. In strategic management, effectiveness can best be described as ______. Which of the following statements about operational effectiveness are correct? c. vision. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 1. Situation Analysis. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Strategic Management - Definition, Importance and Need of - Harappa The Strategic Management Process Guide - cascade.app 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.). (PDF) A critical analysis of strategic management process - ResearchGate Inside CRM Editors. This model also guides our presentation of the chapters contained in this book. Strategic management involves setting objectives, analyzing the competitive environment . Strategic Management Flashcards | Quizlet Chapter 1 - The Strategic Management Process, Chapter 13: Sexually Transmitted Infections, Information Technology Project Management: Providing Measurable Organizational Value, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Chapter 10 /Dada/Magic Realism/Surrealism. b. determining how each functional department of the firm will operate. Efficiency, in terms of strategic management, can best be described as ______. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. a. unions. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). 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. d. strengths, weaknesses, opportunities, and threats. The culmination of the strategic management process is It's widely recognized as a key part of Strategic Portfolio Management (SPM) processes and tools, and while ultimately, it's about delivering the initiatives, it's not just blindly following a plan in the hope that you'll end up in the right place. b. globalization; exports. Strategic Management Process - STRATEGIC MANAGEMENT PROCESS Strategic b. strategy implementation. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. 1. Afra Alnaimi. The strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. ), a destination that is driven by and evokes passion. What is the Strategic Management process? d. companies are paying the highest prices to suppliers, Product market stakeholders include In order to cope with hyper competition, firms need to develop ___ through continuous learning. Strategic management of an organization entails which of the following ongoing processes? Chess CC BY-NC 2.0. areas, are relatively rare. symbiosis; zero sum. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. b. strategy implementation. c. what people do when no one else is looking. Strategic Management Process and Its Different Stages Greenleaf Property Management has been earning below-average returns for the last three years. B. ______ is performing similar activities better than rivals do. c. hypercompetition; technology diffusion. Managers are analyzing the firm's ______ when managers are studying its competitors. d. coordinating the vision and mission of each subsidiary firm. a. a. During the analysis step of the strategic management process managers are concerned with the company's ______. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. c. rational. (Check all that apply.). Let us take a look at the five conventional functions of the management process. (Check all that apply. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. 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. d. differences in resources and capabilities are the basis of competitive advantage. The message of the ad is that this firm's accountants love their work. d. locate the most promising areas of an industry's value chain. a. return on assets. d. one business-level strategy and one corporate-level strategy. A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. d. All of these options are correct. Strategic Goals: c. disruptive technologies. What is Strategic Management Process, and How Does It Work? Strategy Execution Management Solution - UMT360 Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. b. predict growth in sales over the medium to long range. True/False, The resource-based model assumes that firms must have resources that are rare or costly to imitate to form a basis for competitive advantage. c. strategy formulation. b. oil drilling rights in a promising region. (Check all that apply. c. economics. A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. one business-level strategy and one corporate-level strategy. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. 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, . Strategic Management Process Steps And It's Components is a statement of a firm's business in which it intends to compete and the customers it intends to serve. a. the key factor in success is choosing the correct industry in which to compete. a. only the CEO Strategic planning aims to create . In Wikipedia. c. the CEO, COO, and CFO only. b. shareholders. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. It's the process of determining the decisions an organization should take. Strategic management is a process that requires the ability to manage change. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is Corporate governance is the relationship among ______ in determining the direction and performance of corporations. local line leader -> have significant profit-and-loss responsibility. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. 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. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. You can view this video here: https://youtu.be/o0U0gwvnhek. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. Study with Quizlet and memorize flashcards containing terms like . c. the key to competitive success is the structure of the industry in which the firm competes. b. local dimensions. (Remember to type only one word in the blank.). True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business.