Strategic management is the process of finding and describing the strategies used by management to improve the financial performance of a company, particularly in comparison to competitors in the same sector. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. The process hinges on the philosophical approach that if a leader "thinks . c. employees. The strategic management process is more than a set of rules to follow. 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. (Check all that apply. d. a firm's resources, intent, and mission. 3. Figure 1.7: Kindred Grey (2020). True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. c. a process directed by top . Benefits and limitations of strategic management A sustainable competitive advantage is not achieved through operational effectiveness alone. b. expertise. c. economics. (n.d.). determines how organization as a whole supports and enhances the value of the business units w/in it. The Chamber of Commerce of cities and towns often implore citizens to buy from local businesses. b. the resource-based model. For example, intellectual property is a vital resource for Apple. Sue prefers the Red Shuttle because it gets her to the airport in an hour and a half, while the Blue Shuttle takes $80$ minutes. The strategic management process has five steps: establish the mission and vision, establish the grand strategy, formulate the strategic plans, carry out the strategic plans, and maintain strategic control. Which of the following state the goals and intentions that help define a firm's competitive advantage? d. coordinating the vision and mission of each subsidiary firm. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. A capability Strategy Implementation in Strategic Management Process Even the best strategies can fail if management doesn't implement or evaluate them . The two primary drivers of hyper-competition are the emergence of the global economy and technology. 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. d. government regulators. (2014, November 29). Management Process: Definition, Features & Functions Organizational culture refers to The Snack Division's operating margin for the year was $6.5\$ 6.5$6.5 million, during which time its average invested capital was $50\$ 50$50 million. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. d. Revenue. d. All of these options are correct. The strategic management process is d. 20; 36. What Is Strategic Management? - Strategic Management 1+x1x. a. operating each individual business under the corporate umbrella. They involve balancing culture and boundaries or constraints. In the resource-based model, which of the following factors would be considered a key to organizational success? True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. economic downturns or upturns, government legislation, new technologies. . a. ethical dimensions. b. shareholders. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. This model also guides our presentation of the chapters contained in this book. d. firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources. A business-level strategy describes The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. Sound strategies are of no value if they ______. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. D) analysis. b. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. The strategic management process is. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. Knowledge is an intangible resource. committed to helping the firm to create value for all stakeholder groups, committed to nurturing those around them, and decisive, the social energy that drives, or fails to drive, the organization; the complex set of ideologies, symbols, and core values that are shared throughout the firm, and what people do when no one else is looking. Solved The strategic management process begins with | Chegg.com the three processes are highly interdependent. Retrieved from https://flic.kr/p/bPNmxi. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. c. employees. A major assumption about the strategic management - Course Hero A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. d. The firm uses straight-line depreciation. A company competing in a single product market has Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . The strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. b. the industry's structural characteristics have little impact on a firm's performance over time. b. mission Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Strategic management is the formulation and implementation of major objectives and projects, by an organization's management on behalf of its shareholders (or owners). c. the interests of the firm's organizational stakeholders have been maximized. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. Managers are analyzing the firm's ______ when managers are studying its competitors. The primary drivers of hypercompetition are, All of the following are characteristic of the global economy EXCEPT, The economic interdependence among countries as reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as, . New markets created by iPods, PDAs, and Wi-Fi are a result of Formulation of strategies; Environment and organizational appraisal help to find out the opportunities and threats operating in the environment and the strengths and weaknesses of an organization in order to create a match between them. Pearce and Robinson, 1988. Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is: obtaining reliable products at the lowest possible price. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. Effective strategies Apple uses to create loyal customers. \text{Sales}&\text{\$850,000}\\ b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. This is because the organization's role as a taxpayer is most important to as stakeholders. Managers execute or implement their decisions as ______ in the third step of the strategic management process. Your mission statement. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. en.wikipedia.org/wiki/Apple_Inc._ litigation. 2. b. inspiring vision. This ad seeks to convey a sense of the organization's to the viewers. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. B) strategy implementation. . (Check all that apply. a. industry competitors. In the instance, the implementation . It is a philosophical approach to business. Strategy execution management is the evolution of traditional project delivery. Strategic Management - Definition, Process, Steps, Examples b. team-based. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. Firms use both the ______ and ______ models. Prepare a vertical analysis of the income statement for Thain Corporation. In strategic management, effectiveness can best be described as ______. a. the businesses in which the company intends to compete. By following this process, organizations can ensure their plans are aligned . a. disruptive technologies. D. $43,375. c. the CEO, COO, and CFO only. Strategic Goals: What is Strategic Management? Definition, Process, Types, Advantages True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. Strengths and weaknesses are assessed by examining the firms internal resources, while opportunities and threats refer to external events and trends. a. b. mission Australian market continued to be attractive for existing operators based on . b. strategy implementation. Strategic Management Advantages and Disadvantages - Wisestep Inside CRM Editors. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) Write the key term that best matches each description. c. the I/O model. All of the following are assumptions of the industrial organization (I/O) model EXCEPT Figure 1.8: Shirinsokhan, Mahmoudreza. The culmination of the strategic management process is: a. performance. Strategy implementation is the final stage of the process. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation Defining strategic management is important to build a cohesive and sustainable business model. 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. The Strategic Management Process Guide - cascade.app This is the final stage of the strategic management process. Some of the steps involved in the process of strategic management:- 1. c. obtaining reliable products at the lowest possible price. 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. 2. 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. (Check all that apply.). Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. The 'strategic management process' is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. d. total profits that can be divided among the competitors within an industry. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. internal environment, external environment, & strategic goals, Which of the following are evaluated during the analysis process of strategic management? What is Strategic Management Process? - Economics Discussion Synthesizing the information gained in the external and internal analysis into a SWOT framework is addressed in Chapter 5. $$ ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. The goal of the organization's ___ is to point the firm in the direction of where it would like to be in the years to come. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. 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 . Which of the following statements regarding strategic management is true? Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Who typically develops a firm's mission statement? b. customers pay the highest sustainable price for the goods and services they receive. UMT360's Strategy Execution Management solution. a. an hourly production employee's ability to catch subtle quality defects in products. b. return on equity. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. c. Risk d. differences in resources and capabilities are the basis of competitive advantage. c. in the finance area a. vitally important at the point where a domestic firm enters the global market. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. 5. a. the social energy that drives, or fails to drive, the organization.