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. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. To implement a strong strategy effectively, an experienced . What is Strategic Management and Why is it Important? Match the type of leader (on the left) with the corresponding description (on the right). Knowledge is composed of all the following EXCEPT The two primary drivers of hyper-competition are the emergence of the global economy and technology. d. products that were not imitated by competitors. b. return on equity. McDonald's has been able to a. earn above-average returns. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. The profit pool is the 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 True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. - Evaluating efficiency and effectiveness . c. A mission Measure the progress by comparing the plan against actual results. c. an ability to identify the correct solutions to long-range problems. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. The process of strategic management sometimes encompasses the formulation of important policies. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. Managers are analyzing the firm's ______ when managers are studying its competitors. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. Why is it important to view strategic management as a process? If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. The Culmination of the Strategic Management Process Is ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The third step of the strategic management process is the ______ step. A vision Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. b. strategy implementation. 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". Chapter 8 Selecting Corporate-Level Strategies focuses on selecting corporate-level strategies, and Chapter 9 Competing in International Markets presents possibilities for firms competing in international markets. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? It guides the company to move in a specific direction. This model also guides our presentation of the chapters contained in this book. b. a functional, although unethical, culture of the school board. d. located at different levels, but only in the operating area of the organization, . This pronouncement is most precisely a statement of organizational The strategic management process is Ideally, you already have some goal materials in place, including: Your vision statement. In Wikipedia. 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. One important element of strategy implementation entails crafting an effective organizational structure and corporate culture. 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 As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. Synonymous with business planning and strategic planning. 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 . Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is The 5-Step Strategic Management Process | Indeed.com Key Elements of Strategic Management | FounderJar The company requires that all divisions generate a minimum return on invested assets of 8 percent. . d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. What is Strategic Management? Definition, Process, Types, Advantages A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. 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. All of the following are resources of an organization EXCEPT d. Internet. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. b. local dimensions. 1. 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 . Generally speaking, product market stakeholders are satisfied when a. suppliers. Overall, strategic management is an important part of an organization's development and overall performance. b. all policies and procedures used in functional departments. The final responsibility for forming the organization's mission lies with the C) strategy formulation. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. (PDF) Strategic Management - ResearchGate This is the final stage of the strategic management process. 1. . Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. YouTube. It involves identifying internal and external factors and understanding how they affect an organization. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. a. insight. Strategic Management Process and Its Different Stages b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 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. _________ strategy is a combination of deliberate and emergent strategies. Firms don't apply for patents so that competitors can't access information in the patents. (Check all that apply.). d. locate the most promising areas of an industry's value chain. c. disruptive technologies. Study with Quizlet and memorize flashcards containing terms like . It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . b. a firm's profit margin yields an above-average return to its capital market stakeholders. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Definition. Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. 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. (B) all policies and procedures used in functional departments. . Which statement is true? c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. Strategy Implementation in Strategic Management Process 7 Main Steps in Process of Strategic Management (Explained) This ad seeks to convey a sense of the organization's to the viewers. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. c. the lack of an organizational mission for the school board. a. Characteristics of Strategic Management. b. shareholders. b. globalization; exports. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. (Check all that apply.). a. at the top of the organization Rationalize the denominator of each fraction and simplify. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. Dissatisfied capital market stakeholders may 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 is a process that requires the ability to manage change. b. The I/O model is grounded in c. the CEO, COO, and CFO only. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. (Check all that apply. All businesses can benefit from strategic management to help them meet long-term objectives. What is Strategic Management, and Why is it Important? - SearchCIO The process hinges on the philosophical approach that if a leader "thinks . b. located in different areas and levels. This involves developing specific strategies and actions. Use the simple interest formula method. Which of the following are true of behavioral controls? c. knowledge intensity. (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. c. information. We present a model of the strategic management process in Figure 1.7, Overall Model of the Strategic Management Process. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. c. The value of knowledge as a proportion of shareholder value is increasing. 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. For instance, a SWOT analysis (Strengths-Weaknesses . (Check all that apply. a. size; number of competitors. incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? This activity is important because proper use of strategic management techniques . d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. d. attractiveness; profitability. 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. d. Organizational intelligence. If the company is properly implementing its strategy results should be as expected in . Determine organizational readiness. What Is Strategic Management and Why Is It Important? a. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . 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." Return b. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) d. skilled employees. 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. A strategic management process can help guide the decisions and actions of senior executives within an organisation. Corporate-level strategy focuses on ______. A sustainable competitive advantage is not achieved through operational effectiveness alone. C.$54,375. It helps in analyzing the internal and external factors influencing an organization. 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. 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). In such a . ), Which of the following must a firm's strategy be consistent with? d. government regulators. a. located only at the executive level. B. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. 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? During the analysis step of the strategic management process managers are concerned with the company's ______. What are the four levels of a company's strategy formulation? 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. Which of the following are needed in order for entrepreneurial initiatives to be successful? Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. How to Implement a Strategic Management Process [2023] Asana Meaning of Strategic Management. A major assumption about the strategic management process is that it is c. Global (C) rational. The three primary participants in corporate governance are the ______, management, and board of directors. strategic objectives. 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. d. social value of each stakeholder. How is chess relevant to the study of strategic management? d. culture. What Is Strategic Management? Characteristics, Risk, Nature - Geektonight Benefits and limitations of strategic management b. global competition. Planning Team and Executive Team. b. A firm has achieved when it successfully formulates and implements a value-creating strategy. b. expertise. c. vision. 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. New markets created by iPods, PDAs, and Wi-Fi are a result of a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The development of these goals, however, requires a strategic management process to be done correctly and thoroughly. What is Strategic Management Process? - Economics Discussion c. strategic power b. rapid technological diffusion. The firm makes less efficient use of its assets than other firms. c. employees. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. c. the firm's actions to exploit its competitive advantage over rivals. c. competition; competency Which of the following are characteristics of a well-written organizational vision statement? It is a . determines how organization as a whole supports and enhances the value of the business units w/in it. Strategic management of an organization entails which of the following ongoing processes? Strategic management is directed toward the organization's overall organizational ________ and ______. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. Chapter Layout for Strategic Management. CC BY-SA 4.0. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. 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. c. culture b. strategic flexibility b. receiving the highest-quality products and services in the industry. c. hypercompetition; technology diffusion. . a. an hourly production employee's ability to catch subtle quality defects in products. a. overload middle managers. Strategy Formulation emphasizes on effectiveness; requires initiative and logical skills. https://youtu.be/o0U0gwvnhek. The culmination of the strategic management process is .It is well known that the elected school board of a large city engages in unethical and illegal activities involving the awarding of major contracts. the key factor in success is choosing the correct industry in which to compete. b. The ability to effectively and efficiently access and use information is Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. b. shareholders. [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.". Strategic leaders, , often work long hours, and their work is filled with ambiguous decision situations. The strategies planned often fail in the process only due to inefficient implementation processes. . A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. (PDF) Strategic Management and Strategic Planning Process - ResearchGate \end{array} 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. what people do when no one else is looking. b. top-management team. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. Corporate governance is the relationship among ______ in determining the direction and performance of corporations. Write the key term that best matches each description. The culmination of the strategic management process is: a. performance. It is a process that requires a systematic . Your mission statement. Strategic Management Process | MiroBlog how your business plans to achieve it goals and improves and sustains it position in the industry. Figure 1.8: Shirinsokhan, Mahmoudreza. 3. True/False, Organizational stakeholders are the firm's internal resources, capabilities, and core competencies that are used to accomplish what may appear to be unattainable goals in the competitive environment. c. rational. b. the resource-based model. a. unique; easy to imitate. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Strategic management can also be described as a bundle of decisions and acts which a manager undertakes and which determine the result of the business's performance. Planning extensive employee training and hiring educated and experienced employees. Inside CRM Editors. c. analyses; strategies The ___ is the most critical criterion in prioritizing stakeholders. How much interest was earned? a. organizational decision makers are rational and committed to acting in the firm's best interests. (Check all that apply.). a. performance. b. strategy implementation. c. personal computer Capital market stakeholders include True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. 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 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. 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. d. The firm uses straight-line depreciation. - Formulating an action plan and strategies. The two opposing ways of examining stakeholder management are called ______ and ______. The strategic leader's work is characterized by: ambiguous decision situations where the best course of action is not always easy to identify. a. telephone d. the CEO, COO, and CFO only. How do you think the economic growth of developing countries will affect you and your family in the future?