b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. d. analysis. True or false: Intended strategy rarely survives in its original form. c. economics. Tasks, timelines, budgets, etc. Managers must take a(n) ______ view of the organization and assess how functional areas and activities fit together so that the organization can achieve its goals and objectives. The resource-based view of the firm 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. c. vision. Which of the following statements about the strategic management process is true? 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. Chapter 5: Strategic Management Flashcards | Quizlet A vision statement can lead to missed opportunities when it ______. a. organizational decision makers are rational and committed to acting in the firm's best interests. The process of creating strategy a. Figure 1.8: Shirinsokhan, Mahmoudreza. (Check all that apply.). It is a process that requires a systematic . Successful strategic leaders are c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. The third step of the strategic management process is the ______ step. b. I/O; resource-based a. are willing to be brutally honest. Inside CRM Editors. Effective strategic leaders How is chess relevant to the study of strategic management? Benefits and limitations of strategic management b. resources to implement strategies are firm-specific and attached to firms over the long-term. Afra Alnaimi. d. hypercompetition. Strategic Management Flashcards | Quizlet Environmental Scanning 2. What is Strategic Management Process? - Economics Discussion In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. 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. The strategic leader's work is characterized by c. use the strategic management process. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . a. the businesses in which the company intends to compete. 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. d. in the operations area. b. a firm's profit margin yields an above-average return to its capital market stakeholders. Strategic Management Advantages and Disadvantages - Wisestep Which of the following are characteristics of a well-written organizational vision statement? ____has become the second-largest economy in the world. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. d. Revenue. Match the type of leader (on the left) with the corresponding description (on the right). C ) rational . True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. In the instance, the implementation . is a capacity for a set of resources to perform a task or an activity in an integrative manner. d. differences in resources and capabilities are the basis of competitive advantage. The external control view of leadership emphasizes the role of which of the following types of factors in the success or failure of a firm? Companies have realized that failure to measure it can negatively affect the company and its community. a. located only at the executive level. strategic objectives. 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. Synonymous with business planning and strategic planning. 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. d. strategy. d. Internet. examples of each based on your own experiences. b. strategy implementation. How do you think the economic growth of developing countries will affect you and your family in the future? 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 . a. globalization. 97.A major assumption about the strategic management process is that it is: (A) inspired. d. the amount and speed of growth. You can view this video here: https://youtu.be/o0U0gwvnhek. Strategic Management Process and Its Different Stages Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. ), Which of the following must a firm's strategy be consistent with? It offers courses accredited to AMBA, AACSB & NIRF. a. strategic competitiveness b. a permanently sustainable . d. 20; 36. The two primary drivers of hyper-competition are the emergence of the global economy and technology. $$ SWOT stands for Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. The economic interdependence among countries is reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as: higher performance standards including quality and cost. b. achieve strategic competitiveness. Knowledge is an intangible resource. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas (Check all that apply.). innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University a. sell their stock. a. Perpetual 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. A major assumption about the strategic management process is that it is True/False, The assumptions of the I/O model and the resource-based model are contradictory. Return d. one business-level strategy and one corporate-level strategy. b. Firms use both the _____and______models. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. The I/O model is grounded in What is Strategic Management and Why is it Important? a. unions. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. The Strategic Management Process Guide - cascade.app _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Key Elements of Strategic Management | FounderJar Which statement about the triple bottom line is true? d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. A company competing in a single product market has. a. b. a functional, although unethical, culture of the school board. Which of the following state the goals and intentions that help define a firm's competitive advantage? The Five Stages of the Strategic Management Process d. sustainable market niche. Estimated Duration. \text{Gross profit}&\text{357,000}\\ 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. b. total profits earned in an industry along all points of the value chain. C) strategy formulation. organizational versus individual rationality. (C) rational. d. All of these options are correct. . a. industry competitors. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . The firm added to its plant and equipment in the past few years. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. c. avoid too much managerial hubris. Greenleaf Property Management has been earning below-average returns for the last three years. Analysis of the industry's profit pool enables strategic managers to What is Strategic Management? Definition, Process, Types, Advantages Strategy evaluation is the process by which the management assesses how well a chosen strategy has been implemented and how successful or otherwise the strategy is. \text{Sales}&\text{\$850,000}\\ The triple bottom line measures the performance of which of the following? b. located in different areas and levels. c. host communities The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. Match the strategic management process with its corresponding term. a. analyses, successes, and purposes. a. industry; capability What Is Strategic Management and Why Is It Important? In the strategic management process ASP stands for YouTube. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. 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 Management can be found in . ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. A firm has achieved when it successfully formulates and implements a value-creating strategy. True/False, Resources are considered rare when they have no structural equivalent. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? Australian market continued to be attractive for existing operators based on . c. political dimensions. 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. b. committed to nurturing those around them. successfully than does the competitor environment. In Chapter 2 "Assessing Organizational . If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. 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. Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. 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". Planning Team and Executive Team. Refer to the Terms to Know in the Summary & Study Guide on page 551. a method in which farmers move every one to three years to find better soil. c. The firm has a lot of old plant and equipment. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. 7 Main Steps in Process of Strategic Management (Explained) If the company is properly implementing its strategy results should be as expected in . d. All of these options are correct, Strategic delegation helps d. strengths, weaknesses, opportunities, and threats. According to Hitt, the primary drivers of hyper-competition are: the emergence of a global economy and rapid technology change. b. shareholders. c. The value of knowledge as a proportion of shareholder value is increasing. (B) team-based. ), Business-level strategy is concerned with how companies ______. All businesses can benefit from strategic management to help them meet long-term objectives. a. operating each individual business under the corporate umbrella. strategic management chp 1 review Flashcards | Quizlet (Check all that apply.). The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. Strategic management is the management of an organization's resources to achieve its goals and objectives. 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. Organizational culture refers to Definition. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Generally speaking, product market stakeholders are satisfied when The strategic management process is What is Strategic Management? definition, process and importance 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 . This pronouncement is most precisely a statement of organizational internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? c. the minimum required for survival in virtually any industry. d. hypercompetition within the industry. the key factor in success is choosing the correct industry in which to compete. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. Strategic management process can be described as a set of managerial decisions and actions which determines the long-run direction and performance of the organization'. b. regardless of their location in the organization (PDF) Strategic Management - ResearchGate d. competitive dominance. Synonymous with business planning and strategic planning. It helps in analyzing the internal and external factors influencing an organization. a. inspired. - Resource analysis to select workforce and assign suitable tasks. c. defining the competitors in the pool. 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. 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. Explain the difference between negative reinforcement and punishment, and provide several Strategic Management Flashcards | CourseNotes Strategic Management ch 1 Flashcards | Quizlet Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. A firm's mission c. capabilities are highly mobile across firms. Strategic Management. Characteristics of Strategic Management. 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.). Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. In such a . b. shareholders. The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. b. an important source of competitive advantage in virtually all industries. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. Why is it important to view strategic management as a process? d. Diffusion, provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. c. rational. b. a willingness to unify stakeholders through skillful manipulation. Planning. a. goal Reward b. the industry's structural characteristics have little impact on a firm's performance over time. one business-level strategy and one corporate-level strategy. It guides the company to move in a specific direction. Kick-Off Meeting: 1 hr. Strategic management involves setting objectives, analyzing the competitive environment . The importance of knowledge is increasing. What are the four levels of a company's strategy formulation? The strategic management process begins with an understanding of strategy and performance. c. analyses; strategies What is the difference between strategy formulation and strategy implementation? emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. d. concentration on the practical day-to-day aspects of the organization's operations. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. (Check all that apply. Continuous learning A major assumption about the strategic management - Course Hero b. analyses, strategies, and performance. 3. Explain your reasoning. d. The Internet. - Evaluating efficiency and effectiveness . PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. 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. D. $43,375. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. BUS400 Flashcards | Quizlet Retrieved from https://flic.kr/p/bPNmxi. Capital market stakeholders include a. c. vision b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. It involves identifying internal and external factors and understanding how they affect an organization. Here are the key elements of strategic management. d. increasing the profitability of the firm. (Check all that apply.). b. innovation c. strategy . The video for this lesson explains the strategic management process. a. anthropology. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. The 5 stages of the strategic management process. The two opposing ways of examining stakeholder management are called ______ and ______. (Check all that apply.). a. d. abilities; strategies. a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. a. unique; easy to imitate. How much interest was earned? a. ambiguous decision situations which make effective decisions difficult to determine. c. hypercompetition; technology diffusion. (n.d.). A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. d. a school board lacking in core competencies. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. c. is mainly intended to emotionally inspire employees and other stakeholders. c. an ability to identify the correct solutions to long-range problems. They involve balancing culture and boundaries or constraints. The strategic management process is. Study with Quizlet and memorize flashcards containing terms like . A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. Firms use the five forces model to identify the of the industry as measured by its en.wikipedia.org/wiki/Apple_Inc._ litigation. Strategic Management - Definition, Importance and Need of - Harappa the culmination of the strategic management process is: the culmination of the strategic management process is: . Strategic Management Process Overview With Examples - Study.com d. organization's stakeholders. Strategy formulation is the next step in the strategic management process. Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. c. focus on strategy implementation. Strategic Management Process Steps, Components & Examples In the POLC framework, where does strategy implementation take place. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. Owner/CEO, Strategy Director. determines how organization as a whole supports and enhances the value of the business units w/in it. For example, part of Apples success is due to its consistent focus on innovation and creativity that Steve Jobs described as similar to that of a start-up. Firms use both the ______ and ______ models. b. return on equity. (Check all that apply.). To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. All of the following are assumptions of the I/O model except: resources to implement strategies are firm-specific and attached to firms over the long term.