Performance of the firm is most directly attributable to Research shows that approximately___percent of a firm's profitability is explained by the industry in which it competes, whereas a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. d. a firm's resources, intent, and mission. a. the march of globalization. The culmination of the strategic management process is: A) performance. D) analysis. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. The importance of knowledge is increasing. 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. (Remember to type only one word in the blank.). In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. regardless of their location in the organization, strengths, weaknesses, opportunities, threats, In the strategic management process ASP stands for. d. Internet. Sun Tzu's best-known work is The Art of War. a. vitally important at the point where a domestic firm enters the global market. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. a. unique; easy to imitate. Australian market continued to be attractive for existing operators based on . 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. d. suppliers of capital. d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. (B) all policies and procedures used in functional departments. b. shareholders Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. 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. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. b. strategy 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.). b. executives control strategy implementation. Want to create or adapt books like this? A major assumption about the strategic management process is that it is: the business unit's actions to exploit its competitive advantage over rivals. 1. en.wikipedia.org/wiki/Apple_Inc._ litigation, https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109, https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. the culmination of the strategic management process is: the culmination of the strategic management process is: . vision. 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 . Which of the following statements is most consistent under the I/O view? Which of the following actions by the CEO would be most consistent with this need? Strategic Management. Retrieved from https://it.toolbox.com/blogs/inside-crm/11-effective-strategies-apple-uses-to-create-loyal-customers-100109. A business-level strategy describes c. strategic power Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. examples of each based on your own experiences. Inside CRM Editors. d. A goal, Strategic leaders are a. goal This activity is important because proper use of strategic management techniques . c. economies of scale Dissatisfied capital market stakeholders may It is a . The second step in the strategic management process is ______. 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 c. core competence. Explain your reasoning. A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage. It involves action plans that ensure continued performance and thriving progression. 98.:A business-level strategy describes (A) the businesses in which the company intends to compete. [1]. In this latter case, performance is the result of a rare event that is itself the culmination of a long and ongoing process of daily . d. coordinating the vision and mission of each subsidiary firm. a. strategic competitiveness b. a permanently sustainable . Is is measure by its ___. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Which of the following is an example of a firm's intellectual asset? Figure 1.7: Kindred Grey (2020). d. in the operations area. A core competence d. hypercompetition. The value of SWOT analysis parallels ideas from classic military strategists such as Sun Tzu, who noted the value of knowing yourself as well as your opponent. 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. 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. d. The Internet. c. vulnerability of organizational stakeholders (Check all that apply.). Financial markets often place an emphasis on managers meeting ______ performance goals. c. 36; 20 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. Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. Even for companies capable of succeeding in global markets, it is critical that they, The rate of technological diffusion is increasing. c. employees. a. globalization. c. the lack of an organizational mission for the school board. a. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. c. the key to competitive success is the structure of the industry in which the firm competes. (Check all that apply.). d. All of these options are correct. 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. local line leader -> have significant profit-and-loss responsibility. Which of the following are reasons vision statements sometimes fail? c. the profitability of the industry in which the firm competes. The resource-based model of the firm argues that Retrieved from https://flic.kr/p/bPNmxi. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. 3. Strategic management process. In strategic management, effectiveness can best be described as ______. Although Alibaba is competing in the internet services industry, it has improved its performance by focusing on innovation and service diversification. The video for this lesson explains the strategic management process. b. the resources the firm possesses. 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. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. 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. In terms of analyzing the external environment of the firm, the industry environment consists of ______ and other organizations that may threaten the company's success. c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. d. estimating the size of the value-chain activity in the pool. Firms use both the _____and______models. (Check all that apply.). Planning. a. suppliers. 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. a. c. vision. \begin{array}{llr} c. the CEO, COO, and CFO only. The culmination of the strategic management process is ______ 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. a. located only at the executive level. c. rational. (D) inclusive. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. 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. b. d. culture. c. strategy . In the instance, the implementation . Sound strategies are of no value if they ______. 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. . a. strategy, wealth, organization, and threats. 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? a. at the top of the organization ), a destination that is driven by and evokes passion. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. b. television d. unions, Organizational stakeholders are usually satisfied when ______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. c. determining in which businesses to compete and how resources will be allocated between businesses. All businesses can benefit from strategic management to help them meet long-term objectives. True or false: Intended strategy rarely survives in its original form. 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.). a. inspired. 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. 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. 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, An effective vision statement must specify the industry in which a company will operate. b. a firm's profit margin yields an above-average return to its capital market stakeholders. 3. Strategic management is directed toward a company's ______. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. A strategy 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. 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. Which of the following statements regarding strategic management is true? Managers execute or implement their decisions as ______ in the third step of the strategic management process. The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. b. inspiring vision. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. a. Perpetual 2. An assessment od strengths, weakness, opportunities and threats. 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 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, . The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. A capability (Check all that apply.). b. argues that the industry environment has a stronger influence on firms' ability to implement strategies c. a process directed by top . Your company's core competencies. Companies have realized that failure to measure it can negatively affect the company and its community. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. The profit pool is the c. economics. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. The ___ is the most critical criterion in prioritizing stakeholders. This is the final stage of the strategic management process. b. receiving the highest-quality products and services in the industry. c. strategy formulation. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). New markets created by iPods, PDAs, and Wi-Fi are a result of Chapter Layout for Strategic Management. CC BY-SA 4.0. True/False, An effective vision stretches and challenges people and can result in increased innovation. ), Which of the following must a firm's strategy be consistent with? A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. ), Which of the following are examples of business-level strategies? b. total profits earned in an industry along all points of the value chain. The company requires that all divisions generate a minimum return on invested assets of 8 percent. b. resources alone can be a source of sustainable competitive advantage. The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. d. companies are paying the highest prices to suppliers, Product market stakeholders include It involves assessing the external environment, developing a strategic plan, executing it, measuring its success, and tweaking it as necessary. people throughout the organization strive toward overall goals. b. strategy implementation. The process of strategic management sometimes encompasses the formulation of important policies. a. the core values of the school board as an organization. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. Knowledge is an intangible resource. Meaning of Strategic Management. a. maximizing the firm's return on investment. Corporate-level strategy focuses on ______. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. a. unions. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. Learn more about how Pressbooks supports open publishing practices. (Check all that apply. It improves the company's problem-solving and prevents capabilities. c. rare; costly to imitate. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. Rationalize the denominator of each fraction and simplify. Establish your planning team and schedule. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. d. government regulators. c. the interests of the firm's organizational stakeholders have been maximized. 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. c. personal computer The rate of technology diffusion has been steadily increasing over the last two decades. b. an important source of competitive advantage in virtually all industries. University of Malta. a. power of each stakeholder d. located at different levels, but only in the operating area of the organization, . d. All of these options are correct. The process of creating strategy The essence of strategic management is the study of why some firms ______. Readiness assessment. Analysis of the industry's profit pool enables strategic managers to STRATEGIC MANAGEMENT PROCESS: F i gu re 10. d. accounting. All of the following are assumptions of the industrial organization (I/O) model EXCEPT d. All of these options are correct, Strategic delegation helps By following this process, organizations can ensure their plans are aligned . are established. Afra Alnaimi. successfully than does the competitor environment. In the POLC framework, where does strategy implementation take place. In situation analysis, organizations must scan and evaluate the organization's performance, corporate strategies, and internal and external . a. anthropology. b. top-management team. Write the key term that best matches each description. At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. d. Organizational intelligence. 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. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? a. A vision 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. It is long-term in nature. b. globalization; exports. Greenleaf will not be able to minimally satisfy all stakeholders. c. the minimum required for survival in virtually any industry. ), what business(es) should the company compete in. . (Check all that apply.). a. insight. The 5 stages of the strategic management process. ______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. 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. 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. 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} Ideally, you already have some goal materials in place, including: Your vision statement. Which of the following state the goals and intentions that help define a firm's competitive advantage? 2. Which of the following are characteristics of a well-written organizational vision statement? Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. The first step in the strategic management process is to evaluate where you're going, and why. determines how organization as a whole supports and enhances the value of the business units w/in it. 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 the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. c. Knowledge 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. Disruptive (Check all that apply.). a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. 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. b. predict growth in sales over the medium to long range. 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. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. a. industry; capability Effective strategies Apple uses to create loyal customers. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. What is the Strategic Management process? How much interest was earned? You can view this video here: https://youtu.be/o0U0gwvnhek. It guides the company to move in a specific direction. Defend your answer. They involve balancing culture and boundaries or constraints. SWOT stands for a. ambiguous decision situations which make effective decisions difficult to determine. a. the key factor in success is choosing the correct industry in which to compete. c. is mainly intended to emotionally inspire employees and other stakeholders. 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". \text{Gross profit}&\text{357,000}\\ The strategic management process is more than a set of rules to follow. . c. weak competitors in the industry. 1. Estimated Duration. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. the three processes are highly interdependent. c. avoid too much managerial hubris. d. strengths, weaknesses, opportunities, and threats. 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. 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. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. The two primary drivers of hyper-competition are the emergence of the global economy and technology. (Check all that apply.). A strategic management process can help guide the decisions and actions of senior executives within an organisation. d. products that were not imitated by competitors. 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. Introduction. d: 70: 3884478507 a. all resources have the potential to be the basis of sustainable competitive advantage. A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. a. strategic mission. d. competitive dominance. - Evaluating efficiency and effectiveness . The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. This perspective is known as ______. a. flexibility It determines which business(es) should be in the company's portfolio. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. . C.$54,375. A major assumption about the strategic management process is that it is innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University a. unique market niche a. analyses; strengths 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. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. This improved performance is best explained by 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. hypercompetition within the industry. a. size; number of competitors. b. urgency of satisfying each stakeholder a. the social energy that drives, or fails to drive, the organization. b. strategic flexibility \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.

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