How to develop a strategic management process. a. return on assets. ______ 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. Apple Inc. (Check all that apply.). Which of the following statements about organizational knowledge is correct? Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. b. innovation The Jayhawks Rising Strategic Alignment Model is the culmination of a multi-year strategic planning process involving many groups and individuals who proposed hundreds of ideas for how to advance us toward our vision to be an exceptional learning community that lifts each member and advances society. To implement a strong strategy effectively, an experienced . Ideally, you already have some goal materials in place, including: Your vision statement. ), what business(es) should the company compete in. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. The ______ view of stakeholder management views the management process as groups competing for the organization's resources. True or false: Intended strategy rarely survives in its original form. a. unique; easy to imitate. Strategic Management Advantages and Disadvantages - Wisestep The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. There are provisions to create, implement and appraise . Efficiency, in terms of strategic management, can best be described as ______. d. government regulators. What are the four levels of a company's strategy formulation? Why is it important to view strategic management as a process? (PDF) Strategic Management - ResearchGate Strategic Management ch 1 Flashcards | Quizlet a. sell their stock. (2014, November 29). b. mission. d. All of these options are correct. Chapter 5: Strategic Management Flashcards | Quizlet . Organizational goals and objectives should represent what is best for ______. c. determine whether an industry will be viable in the long term. True/False, Although organizational cultures vary considerably, one cannot make an objective judgement that some organizational cultures are more or less functional than others in terms of ethical considerations. What Is Strategic Management? Characteristics, Risk, Nature - Geektonight The second step in the strategic management process is ______. d. critically important mainly in high technology industries. c. determining in which businesses to compete and how resources will be allocated between businesses. c. employees. (Check all that apply.). The strategic management process is. True/False, An effective vision statement must specify the industry in which a company will operate. c. rare; costly to imitate. In strategic management, effectiveness can best be described as ______. Explain Strategy formulation. d. analysis. d. personality. What is Strategic Management Process, and How Does It Work? is a statement of a firm's business in which it intends to compete and the customers it intends to serve. Strategic Management - Your Article Library When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) a. a. industry; capability 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. b. strategy Afra Alnaimi. 7 Main Steps in Process of Strategic Management (Explained) Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. d. unions, Organizational stakeholders are usually satisfied when Strategic Management Process - Your Article Library Defend your answer. Which of the following are needed in order for entrepreneurial initiatives to be successful? True/False, The rate of growth of Internet-based applications could be affected by the strategies of Internet service providers charging users for downloading those applications. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Information Technology Project Management: Providing Measurable Organizational Value, Operations Management: Sustainability and Supply Chain Management, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. Managers execute or implement their decisions as ______ in the third step of the strategic management process. b. urgency of satisfying each stakeholder c. information. During the analysis step of the strategic management process managers are concerned with the company's ______. This behavior reflects When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. UMT360's Strategy Execution Management solution. Is is measure by its ___. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. Strategic Management Flashcards | CourseNotes c. core competence. a. unique market niche Which of the following is an example of a firm's intellectual asset? c. focus on strategy implementation. 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. a. unions. Meaning of Strategic Management. The ending balance in retained earnings equals: Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Strategic Management Chap 1 Flashcards | Quizlet Overall, strategic management is an important part of an organization's development and overall performance. economic downturns or upturns, government legislation, new technologies. Figure 1.8: Shirinsokhan, Mahmoudreza. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? Generally speaking, product market stakeholders are satisfied when b. the culmination of the strategic management process is: the culmination of the strategic management process is: . b. executives control strategy implementation. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". Strategic ch. 1 Flashcards | Quizlet The is the most critical criterion in prioritizing stakeholders. statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . The situation is where relevant information is needed to create the organization's culture, mission, or vision statement. b. weak competition 1.6 Understanding the Strategic Management Process c. speed a. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. (Check all that apply.). Planning extensive employee training and hiring educated and experienced employees. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. c. defining the competitors in the pool. True/False. 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 company had a beginning balance in retained earnings of $52,000. (Check all that apply. 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. b. 5. 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. are willing to be brutally honest. ), Which of the following must a firm's strategy be consistent with? a. ambiguous decision situations which make effective decisions difficult to determine. Which of the following are stakeholder groups that managers should consider when making decisions? It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. d. All of these options are correct, Strategic delegation helps (Check all that apply.). Definition. In order to cope with hypercompetition, firms need to develop through continuous learning. BUS400 Flashcards | Quizlet Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. Who typically develops a firm's mission statement? Knowledge is an intangible resource. a. values. Write the key term that best matches each description. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. (Check all that apply.). This ad seeks to convey a sense of the organization's to the viewers. 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. The Culmination of the Strategic Management Process Is It guides the company to move in a specific direction. c. the lack of an organizational mission for the school board. b. The two opposing ways of examining stakeholder management are called ______ and ______. Strategic Management Process - STRATEGIC MANAGEMENT PROCESS Strategic 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. d. coordinating the vision and mission of each subsidiary firm. c. the profitability of the industry in which the firm competes. a. The goal of strategy implementation is to develop a permanent competitive advantage. d. ability, successes, and performance. Owner/CEO, Strategy Leader. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . $$ Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. d. Organizational intelligence. a. competitive resilience b. globalization; exports. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. 3. What Is Strategic Management? | Indeed.com Canada True/False, Research shows that a greater percentage of a firm's profitability is explained by the I/O rather than the resource-based model. b. analyses, strategies, and performance. symbiosis; zero sum. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. The firm added to its plant and equipment in the past few years. a. suppliers. In the resource-based model, which of the following factors would be considered a key to organizational success? The 6 stages of the Strategic Management Process d. organization's stakeholders. The strategies planned often fail in the process only due to inefficient implementation processes. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. [1]. Sound strategies are of no value if they ______. ____has become the second-largest economy in the world. b. estimating the overall size of the pool. d. one business-level strategy and one corporate-level strategy. A sustainable competitive advantage is not achieved through operational effectiveness alone. a. culture b. determining how each functional department of the firm will operate. It involves action plans that ensure continued performance and thriving progression. The ___ is the most critical criterion in prioritizing stakeholders. d. suppliers of capital. a. power of each stakeholder 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. c. is mainly intended to emotionally inspire employees and other stakeholders. 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. Managers are analyzing the firm's ______ when managers are studying its competitors. Learn more about how Pressbooks supports open publishing practices. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. a. What other games might help teach strategic thinking. d. in the operations area. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. What is Strategic Management and Why is it Important? Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 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.$2,375. The first step in the strategic management process is to evaluate where you're going, and why. The culmination of the strategic management process is: A) performance. a. Perpetual After executing the environmental analysis process, management . b. customers pay the highest sustainable price for the goods and services they receive. b. resources to implement strategies are firm-specific and attached to firms over the long-term. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. 09.23.22 c. host communities Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. In Chapter 2 "Assessing Organizational . Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. areas, are relatively rare. c. hypercompetition; technology diffusion. B) strategy implementation. 2. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. Which of the following are characteristics of a well-written organizational vision statement? It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. McDonald's has been able to a. earn above-average returns. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). b. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. Importance of Strategic Management. Successful strategic leaders are d. emphasize profit maximization. Strategic Management Process Steps, Components & Examples c. 36; 20 c. the minimum required for survival in virtually any industry. a. size; number of competitors. Firms use both the ______ and ______ models. Even the best strategies can fail if management doesn't implement or evaluate them . What are the four steps of the strategic management process? a. overload middle managers. In order to cope with hyper competition, firms need to develop ___ through continuous learning. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. It determines which business(es) should be in the company's portfolio. a. strategic mission. d. expand the strategic responsibilities to all organizational stakeholders. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. a. predict future revenue streams for the organization. c. the firm's actions to exploit its competitive advantage over rivals. (Check all that apply.). The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. b. success, weakness, opportunities, and taxes. Strategic Management: Meaning, Concepts, Examples (Explained) - iEduNote Want to create or adapt books like this? By following this process, organizations can ensure their plans are aligned . d. analysis. It offers courses accredited to AMBA, AACSB & NIRF. a. one corporate-level strategy. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. Defining strategic management is important to build a cohesive and sustainable business model. The three primary participants in corporate governance are the ______, management, and board of directors. Readiness assessment. b. top-management team. d. A goal, Strategic leaders are \text{Gross profit}&\text{357,000}\\ The essence of strategic management is the study of why some firms ______. The resource-based model of the firm argues that ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? Reward a. strategy, wealth, organization, and threats. 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? vision. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. b. located in different areas and levels. - Formulating an action plan and strategies. Strategic Management - Definition, Importance and Need of - Harappa PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. 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. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important. Let us take a look at the five conventional functions of the management process. For example, intellectual property is a vital resource for Apple. strategic objectives. 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. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. Strategic Management Flashcards | Quizlet Strategic Management is a stream of decisions and actions which lead to the development of an effective strategy or strategies to help achieve corporate objectives. For example, Apples decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur. Strategic Management & Strategic Planning Process The company requires that all divisions generate a minimum return on invested assets of 8 percent. b. Figure 1.7: Kindred Grey (2020). d. is developed by a firm before the firm develops its vision. Strategic Management Chapter 1 Flashcards | Quizlet Strategic Management Process Overview With Examples - Study.com Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. en.wikipedia.org/wiki/Apple_Inc._ litigation. a. strategic competitiveness b. a permanently sustainable . A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Owner/CEO, Strategy Director. Determine organizational readiness. This improved performance is best explained by b. strategy implementation. d. focus on innovation. 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. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). 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.). True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. The mission of IIM Lucknow is to improve management systems with regard to business, industry and public services through pursuit of excellence in management education, research, consultancy and training. a. Effective strategic leaders (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. Strategic management involves setting objectives, analyzing the competitive environment . (Check all that apply. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . Organizational culture refers to As we have noted in this introductory chapter, strategic management is both an art and a science, and it involves multiple conceptualizations of the notion of strategy drawn from recent and ancient history. The resource-based view of the firm Key Elements of Strategic Management | FounderJar Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The strategic management process begins with an understanding of strategy and performance. Strategic Management can be found in . In the instance, the implementation . In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. In the POLC framework, where does strategy formulation take place? It helps in analyzing the internal and external factors influencing an organization. Strategic Management Process - Meaning, Steps and Components Who makes the strategic decisions for most organizations? 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. d. accounting. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. You can view this video here: https://youtu.be/o0U0gwvnhek. c. the interests of the firm's organizational stakeholders have been maximized. b. d. located at different levels, but only in the operating area of the organization, . d. All of these options are correct. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. A strategy c. disruptive technologies. Measure the progress by comparing the plan against actual results. Explain your reasoning. The culmination of the strategic management process is a. performance. 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 management is a process that requires the ability to manage change. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. True/False, When the firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders. Strategic Goals: Strategy execution management is the evolution of traditional project delivery. What Is Strategic Management? - Investopedia d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. Strategic management process. To implement a firm's strategies, the firm takes actions with the goal of achieving strategic competitiveness and above average returns. 1.4 The History of Strategic Management Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? SWOT stands for Alfred Chandler, 1962. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. c. a process directed by top . True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. Strategic flexibility the culmination of the strategic management process is: ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan.