SWOT stands for In the POLC framework, where does strategy formulation take place? This behavior reflects c. in the finance area The strategic management process is. The video for this lesson explains the strategic management process. c. the CEO, COO, and CFO only. 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. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. https://youtu.be/o0U0gwvnhek. True/False, An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values. All of the following are assumptions of the resource-based model EXCEPT d. abilities; strategies. Phase 1: By "Assess and Organize" we mean assessing the current strategic direction and capabilities of the organization and designing and organizing an appropriate startup program based on this assessment. (Check all that apply.). (Check all that apply. Which of the following statements about organizational knowledge is correct? b. focus on strategy formation. It is long-term in nature. innovationisatermusedtodescribehowrapidlyandconsistentlynewinformation from BADM 4801 at George Washington University 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. a. strategic mission. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . It is important to consider that the decision: has ethical implications for organizational stakeholders. The three primary participants in corporate governance are the ______, management, and board of directors. a. CEO. The company requires that all divisions generate a minimum return on invested assets of 8 percent. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. a. emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. - Evaluating efficiency and effectiveness . A firm's vision, mission, and strategic objectives form a hierarchy of . d. in the operations area. Explain the difference between negative reinforcement and punishment, and provide several (n.d.). d. total profits that can be divided among the competitors within an industry. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. Return 1x1+x\frac{1\ -\ \sqrt{x}}{1\ +\ \sqrt{x}} In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. $$ 2. d. unions, Organizational stakeholders are usually satisfied when Estimated Duration. The 5 stages of the strategic management process. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. This is the final stage of the strategic management process. How much interest was earned? b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. The culmination of the strategic management process is For example, intellectual property is a vital resource for Apple. a. operating each individual business under the corporate umbrella. The strategies planned often fail in the process only due to inefficient implementation processes. c. disruptive technologies. Strategic Management can be found in . c. employees. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. c. The firm has a lot of old plant and equipment. a. industry; capability 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. How do you think the economic growth of developing countries will affect you and your family in the future? Match the strategic management process with its corresponding term. 90; 10 It is a philosophical approach to business. c. employees. b. psychology. In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. 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. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. . Your company's core competencies. Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. d. located at different levels, but only in the operating area of the organization, . Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? c. use the strategic management process. A core competence 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 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 The strategic management process is a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. The two primary drivers of hyper-competition are the emergence of the global economy and technology. Which of the following are reasons vision statements sometimes fail? The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. It involves analyzing current circumstances, developing a plan to reach important goals, and executing that plan. d. the CEO, COO, and CFO only. c. obtaining reliable products at the lowest possible price. d. the interests of all stakeholders have been at least minimally satisfied, The Chambers of Commerce of cities and towns often implore citizens to buy from local businesses. Figure 1.8: Shirinsokhan, Mahmoudreza. C) strategy formulation. 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 c. avoid too much managerial hubris. 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 strategic management process consists of five steps you should perform thoroughly for the plan to be effective. YouTube. 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 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. 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. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. 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. B) strategy implementation. The industrial organization (I/O) model argues that The five steps followed in the strategic management process are as follows: - Goal-setting or identification of the business vision and direction. c. weak competitors in the industry. b. shareholders b. argues that the industry environment has a stronger influence on firms' ability to implement strategies the culmination of the strategic management process is: the culmination of the strategic management process is: June 14, 2022; pros and cons of stem cell therapy for knees . Companies have realized that failure to measure it can negatively affect the company and its community. a. A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. (Check all that apply. b. a firm's profit margin yields an above-average return to its capital market stakeholders. 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 . See the examples before. 1. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. c. the key to earning above-average returns is strategic flexibility. c. economics. Who typically develops a firm's mission statement? UMT360's Strategy Execution Management solution. d. Organizational intelligence. c. a process directed by top . b. mission Retrieved from https://flic.kr/p/bPNmxi. The firm's ___ provide the foundation for choosing one or more ___ and deciding how to implement them. A firm has achieved when it successfully formulates and implements a value-creating strategy. True/False, The rapid rate of technological diffusion has increased the competitive benefits of patents. Feedback may occur at all times to revise these actions. A strategy The resource-based view of the firm Strategic management helps in planning the tools, mechanisms, processes and strategies in achieving the goals and fulfilling the vision of the organization. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". Situation Analysis. (Remember to type only one word in the blank.). c. the key to competitive success is the structure of the industry in which the firm competes. In the POLC framework, where does strategy implementation take place. Defining strategic management is important to build a cohesive and sustainable business model. Strategic management is directed toward the organization's overall organizational ________ and ______. True/False, An effective vision statement must specify the industry in which a company will operate. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. d. skilled employees. c. rare; costly to imitate. Litigation. 2. c. Sustainable competitive advantage A company had a beginning balance in retained earnings of $52,000. Kick-Off Meeting: 1 hr. Strategic Management Process [Video]. (Check all that apply. 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. Planning Team and Executive Team. a. the businesses in which the company intends to compete. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. D) analysis. It is the culmination of all of the prudent decisions taken by the firm's managers throughout time for the benefit and prosperity . True or false: Intended strategy rarely survives in its original form. A strategic management process can help guide the decisions and actions of senior executives within an organisation. ______ is performing similar activities better than rivals do. 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. b. predict growth in sales over the medium to long range. (Check all that apply.). b. strategy implementation. Firms use both the ______ and ______ models. d. a firm's resources, intent, and mission. a. is a statement of a firm's business in which it intends to compete and the customers it intends to serve. b. committed to nurturing those around them. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. 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. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. c. Knowledge Knowledge is composed of all the following EXCEPT How to develop a strategic management process. Strategy execution management is the evolution of traditional project delivery. a. power of each stakeholder (Check all that apply.). . 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. (Check all that apply.). 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.). a. goal b. strategy c. tactic d. mission ANSWER: b 104. Ideally, you already have some goal materials in place, including: Your vision statement. Strategic flexibility The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. A firm's hierarchy of goals include its ______. . All of the following are resources of an organization EXCEPT The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to b. television The invention of the car is an early example of: A company's ability to acquire knowledge is: an important source of competitive advantage in all industries. a. c. culture It guides the company to move in a specific direction. a. goal Efficiency, in terms of strategic management, can best be described as ______. 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. All of the following are characteristics of the global economy except: the increased use of tariffs to protect industries. The culmination of the strategic management process is: A) performance. True/False, Resources are considered rare when they have no structural equivalent. b. estimating the overall size of the pool. How is chess relevant to the study of strategic management? This behavior has existed for decades, even as the membership in the school board has changed over time. Strategy implementation is the final stage of the process. a. size; number of competitors. a. suppliers. a. d. intelligence. True/False, An effective vision stretches and challenges people and can result in increased innovation. b. inspiring vision. (2014, November 29). Study with Quizlet and memorize flashcards containing terms like . Strategy formulation is the next step in the strategic management process. strategic objectives. b. c. Risk d. companies are paying the highest prices to suppliers, Product market stakeholders include b. analyses, strategies, and performance. 1. a. flexibility b. innovation c. speed d. All of these options are correct. Strategic Management: Chapter 2 Multiple Choi, Strategic Management: Chapter 1 Multiple Choi, Strategic Management Chapter 8 Potential Ques. The final responsibility for forming the organization's mission lies with the It is a continuous process of analyzing and evaluating an organization's internal and external environment, setting objectives and goals, developing strategies, and implementing and controlling those strategies. Your mission statement. c. determine whether an industry will be viable in the long term. Methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. What is the Strategic Management process? The second step in the strategic management process is ______. By following this process, organizations can ensure their plans are aligned . Income statement information for Thain Corporation is provided below. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. How much was invested? Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. b. strategic flexibility Study with Quizlet and memorize flashcards containing terms like Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. 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. Meaning of Strategic Management. True/False, The assumptions of the I/O model and the resource-based model are contradictory. 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. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n): In the resource-based model, which of the following factors would be considered a key organizational success? Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. d. strategy. d. The firm uses straight-line depreciation. Apple's iPod and iPad are examples of It should seek to diversify. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. a. only the CEO 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. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. 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. a. insight. The resource-based model of the firm argues that d. attractiveness; profitability. ____ is a capacity for a set of resources to perform a task or an activity in an integrative manner. Managers are analyzing the firm's ______ when managers are studying its competitors. Inside CRM Editors. a. defining the boundaries of the pool. Which of the following is an example of a firm's intellectual asset? Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. b. return on equity. b. To implement a strong strategy effectively, an experienced . It requires incorporating both short-term and long-term perspectives. Which of the following state the goals and intentions that help define a firm's competitive advantage? Effective strategic leaders d. All of these options are correct. Strategic management requires that ______. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. All businesses can benefit from strategic management to help them meet long-term objectives. It helps in analyzing the internal and external factors influencing an organization. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. 1+x1x. This improved performance is best explained by The steps for identifying the profit pools in an industry include all of the following EXCEPT a. committed to helping the firm create value for all stakeholder groups. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. a. disruptive technologies. True/False, The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities is the main source of above-average returns. The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. 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. 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. Continuous learning a. analyses, successes, and purposes. The ending balance in retained earnings equals: Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. a. vision b. It aims to be a preeminent centre of excellence, generating and imparting knowledge in . Chess CC BY-NC 2.0. 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.