a. return on assets. 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 ch. 1 Flashcards | Quizlet (Check all that apply.). incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? The is the most critical criterion in prioritizing stakeholders. The culmination of the strategic management process is: A) performance. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. 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. The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. (B) all policies and procedures used in functional departments. D. $43,375. Strategic Management Process - Stages of Strategic Management c. The value of knowledge as a proportion of shareholder value is increasing. areas, are relatively rare. b. strategic flexibility a. organizational decision makers are rational and committed to acting in the firm's best interests. The I/O model is grounded in d. strengths, weaknesses, opportunities, and threats. The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring. b. tighten loan covenants. What are the four levels of a company's strategy formulation? c. strategy formulation. Strategy Implementation in Strategic Management Process Successful strategic leaders are b. customers pay the highest sustainable price for the goods and services they receive. All businesses can benefit from strategic management to help them meet long-term objectives. the culmination of the strategic management process is: 1.3 Intended, Emergent, and Realized Strategies, 1.5 Contemporary Critique of Strategic Management, 1.6 Understanding the Strategic Management Process, 3.2 The Relationship between an Organization and its Environment, 4.4 Intellectual Property & Isolating Mechanisms, 6.2 Understanding Business-Level Strategy through "Generic Strategies", 6.5 Focused Cost Leadership and Focused Differentation, 7.6 Responding to Innovation in the Market, 8.6 Portfolio Planning and Corporate-Level Strategy, 9.2 Advantages and Disadvantages of Competing in International Markets, 9.5 Drivers of Success and Failure When Competing in International Markets, 9.6 Options for Competing in International Markets, 10.3 The Basic Building Blocks of Organizational Structure, 10.4 Creating an Organizational Structure, 10.5 Creating Organizational Control Systems, 11.4 Corporate Ethics and Social Responsibility, 11.5 Contemporary Questions of Corporate Ethics. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. c. employees. Name two benefits workers take for granted now that did not exist before labor organized. Litigation. a. insight. SWOT stands for 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. [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.". A capability Greenleaf Property Management has been earning below-average returns for the last three years. [1]. What is Strategic Management, and Why is it Important? - SearchCIO The Strategic Planning Process in 4 Steps | OnStrategy people throughout the organization strive toward overall goals. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? (PDF) Strategic Management - ResearchGate Strategic Management. c. seek to increase their power. There are provisions to create, implement and appraise . Collect and review information to help make the upcoming strategic decisions. 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. Knowledge is composed of all of the following(expertise, information, intelligence) except: Which of the following statements about organizational knowledge is correct? 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. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. c. disruptive technologies. c. profits that are accrued when a firm earns above-average returns. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. It improves the company's problem-solving and prevents capabilities. The culmination of the strategic management process is It determines which business(es) should be in the company's portfolio. This pronouncement is most precisely a statement of organizational Ideally, you already have some goal materials in place, including: Your vision statement. 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. How much interest was earned? a. located only at the executive level. . True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. The 5-Step Strategic Management Process | Indeed.com Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. 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 . In the POLC framework, where does strategy implementation take place. 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. C ) rational . To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. c. capabilities are highly mobile across firms. b. the resources the firm possesses. The strategic management process begins with an understanding of strategy and performance. Which of the following are needed in order for entrepreneurial initiatives to be successful? The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. (Check all that apply.). A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. In the instance, the implementation . Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? b. success, weakness, opportunities, and taxes. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. For example, intellectual property is a vital resource for Apple. c. return on sales. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. It is long-term in nature. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University 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. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. 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." What is the Strategic Management process? b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. d. All of these options are correct. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. This is the final stage of the strategic management process. 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 a process that requires the ability to manage change. Sun Tzu's best-known work is The Art of War. In the strategic management process ASP stands for 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 . \text{Sales}&\text{\$850,000}\\ - Executing plans and strategies. Firms use the five forces model to identify the of the industry as measured by its To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. d. culture. Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. Understanding the Strategic Management Process organizational versus individual rationality. b. only top managers Strategic Management Process - STRATEGIC MANAGEMENT PROCESS Strategic b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. McDonald's has been able to a. earn above-average returns. Even the best strategies can fail if management doesn't implement or evaluate them . one business-level strategy and one corporate-level strategy. Chess CC BY-NC 2.0. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. strategic 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? b. abilities; strengths a. an hourly production employee's ability to catch subtle quality defects in products. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. A major assumption about the strategic management process is that it is (Check all that apply.). d. All of these options are correct. What Is Strategic Management and Why Is It Important? ______ 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. a. strategic mission. b. c. In reporting her investment center's performance for the past 10 years, the manager of the Snack Division accounted for the depreciation of her division's assets by using an accelerated depreciation method allowed for tax purposes. All of the following are assumptions of the resource-based model EXCEPT YouTube. All of the following are resources of an organization EXCEPT The 6 stages of the Strategic Management Process Authors: Tanya Sammut-Bonnici. a. True/False, Customers, suppliers, unions, and local governments are examples of capital market stakeholders. Defend your answer. d. products that were not imitated by competitors. 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. \text{Cost of goods sold}&\text{493,000}\\ Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. d. emphasize profit maximization. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Your mission statement. a. (n.d.). The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. The strategic leader's work is characterized by 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. Want to create or adapt books like this? c. is mainly intended to emotionally inspire employees and other stakeholders. 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. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). Tasks, timelines, budgets, etc. c. the lack of an organizational mission for the school board. 1. a. values. Apple Inc. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. A.$2,375. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. (Check all that apply.). Strategic Management Process Steps, Components & Examples The firm makes less efficient use of its assets than other firms. 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. (Check all that apply.). Alfred Chandler, 1962. The culmination of the strategic management process is: performance Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity. Dissatisfied capital market stakeholders may d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. Strategic management is directed toward a company's ______. 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. b. globalization; exports. Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. d. strategy. 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. Meaning of Strategic Management. A sustainable competitive advantage is not achieved through operational effectiveness alone. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. A Deeper Dive into the Strategic Management Process. a. suppliers. d. Revenue. b. psychology. The triple bottom line measures the performance of which of the following? In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. In smaller, new venture firms, returns are sometimes measured in terms of Strategic planning also involves the allocation of resources in an optimal manner. The video for this lesson explains the strategic management process. c. economics. the key factor in success is choosing the correct industry in which to compete. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. d: 70: 3884478507 The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. This ad seeks to convey a sense of the organization's to the viewers. Match the strategic management process with its corresponding term. 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 . b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. The three primary participants in corporate governance are the ______, management, and board of directors. Analysis of the industry's profit pool enables strategic managers to Devise a strategy. (Check all that apply. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? 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. (C) rational. c. hypercompetition; technology diffusion. a. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. 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). a. globalization. Strategy formulation is the next step in the strategic management process. 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 a. major suppliers of capital Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. The profit pool is the c. the key to earning above-average returns is strategic flexibility. $$ $46,375 how your business plans to achieve it goals and improves and sustains it position in the industry. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari (Apple Inc.). It is a . Importance of Strategic Management. d. organization's stakeholders. c. employees. Culminating events and time working together in top management teams b. urgency of satisfying each stakeholder The strategic management process is more than a set of rules to follow. d. a charity's endowment of $400 million. 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? b. shareholders. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Strategy execution management is the evolution of traditional project delivery. A firm's hierarchy of goals include its ______. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. d. a firm's resources, intent, and mission. (PDF) Strategic Management and Strategic Planning Process - ResearchGate Situation Analysis. The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. a. overload middle managers. Determine organizational readiness. Identify your goals. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. The essence of strategic management is the study of why some firms ______. a. vision The resource-based view of the firm c. information. Which of the following statements about the strategic management process is true? Figure 1.8: Shirinsokhan, Mahmoudreza. (Check all that apply. The ability to effectively and efficiently access and use information 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. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas a. unique market niche d. accounting. Organizational culture refers to In order to cope with hyper competition, firms need to develop ___ through continuous learning. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. 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. a school board lacking in core competencies. How do you think the economic growth of developing countries will affect you and your family in the future? . Strategic management is the management of an organization's resources to achieve its goals and objectives. the three processes are highly interdependent. a. predict future revenue streams for the organization. b. rapid technological diffusion. Figure 1.7: Kindred Grey (2020). (Check all that apply.). \begin{array}{llr} It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. The Complete Guide to Strategy Evaluation - Creately Blog True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. ), Which of the following are examples of business-level strategies? b. team-based. Here are the key elements of strategic management. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. c. avoid too much managerial hubris. It should seek to diversify. a. disruptive technologies. d. The firm uses straight-line depreciation. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. b. local dimensions. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. d. estimating the size of the value-chain activity in the pool. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. The ___ is the most critical criterion in prioritizing stakeholders. Efficiency, in terms of strategic management, can best be described as ______. d. located at different levels, but only in the operating area of the organization, . Synonymous with business planning and strategic planning. Pearce and Robinson, 1988. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. Firms use both the _____and______models. 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. 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: 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. Strategic planning aims to create . (Check all that apply.). Benefits and limitations of strategic management The third step of the strategic management process is the ______ step. The goal of strategy implementation is to develop a permanent competitive advantage. The strategic-planning process is never truly completed. Establish your planning team and schedule. Companies have realized that failure to measure it can negatively affect the company and its community. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. d. unions, Organizational stakeholders are usually satisfied when 90; 10 A company had a beginning balance in retained earnings of $52,000. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. d. focus on innovation. ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. c. the I/O model. What is Strategic Management Process? - Economics Discussion d. industry; competency, ___should establish a firm's individuality and should be inspiring and relevant to all stakeholders. c. vulnerability of organizational stakeholders The strategic management process is d. sustainable market niche. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. c. ability, strategies, and purposes.