A company had a beginning balance in retained earnings of $52,000. c. re-centralize the responsibility for strategy to the CEO. a. operating each individual business under the corporate umbrella. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. c. calls for firms to focus on their homogeneous capabilities to compete against their rivals. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. In smaller, new venture firms, returns are sometimes measured in terms of a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. It requires incorporating both short-term and long-term perspectives. b. a firm's profit margin yields an above-average return to its capital market stakeholders. a. only the CEO This behavior has existed for decades, even as the membership in the school board has changed over time. areas, are relatively rare. The culmination of the strategic management process is: A) performance. In Wikipedia. Authors: Tanya Sammut-Bonnici. c. Sustainable competitive advantage The set processes involved in creating or determining the strategics of the organization; if focuses on the context of strategies. Determine organizational readiness. 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. Who makes the strategic decisions for most organizations? Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. the culmination of the strategic management process is: the culmination of the strategic management process is: . A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. Strategic leaders, ______, often work long hours, and their work is filled with ambiguous decision situations. It determines which business(es) should be in the company's portfolio. (2014, November 29). The two primary drivers of hyper-competition are the emergence of the global economy and technology. The firm added to its plant and equipment in the past few years. Organizational culture refers to The Strategic Management process is the way in which strategists determine objectives and make strategic decisions. The final responsibility for forming the organization's mission lies with the b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. A company competing in a single product market has. Introduction. True/False, A firm's mission tends to be enduring while its vision can change in light of changing environmental conditions. How is chess relevant to the study of strategic management? Strategic flexibility The rate of technology diffusion has been steadily increasing over the last two decades. The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. It defines organization's goals and fixes realistic objectives, which are in alignment with the company's vision. Firms use both the _____and______models. a. defining the boundaries of the pool. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. Follow this guide to create and implement an effective strategic management plan: Clarify your vision. Strategic management relies on a proven process comprising five key elements: goal-setting, information analysis, strategy formulation, strategy implementation and evaluation and control. d. total profits that can be divided among the competitors within an industry. \text{Gross profit}&\text{357,000}\\ Strategic management is directed toward the organization's overall organizational ________ and ______. True/False, Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. d. increasing the profitability of the firm. - Formulating an action plan and strategies. a. located only at the executive level. a. suppliers. 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 planning aims to create . (Check all that apply.). b. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. Sound strategies are of no value if they ______. According to Hitt, the final responsibility for forming the organization's mission lies with the: A key purpose of a mission statement is to inform___ what a firm is, what it seeks to accomplish, and who it seeks to serve. c. strength, wealth, organization, and taxes. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. 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. SWOT stands for A firm has achieved when it successfully formulates and implements a value-creating strategy. d. All of these options are correct, Strategic delegation helps a. telephone Write the key term that best matches each description. 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. b. a willingness to unify stakeholders through skillful manipulation. a. industry; capability 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. 36; 20 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? In such a . Which of the following state the goals and intentions that help define a firm's competitive advantage? Strategic management is the process of setting organizational goals, performing a competitive analysis, reflecting on a company's internal structure, and evaluating current strategies. a. committed to helping the firm create value for all stakeholder groups. It helps in analyzing the internal and external factors influencing an organization. In order to cope with hypercompetition, firms need to develop through continuous learning. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. a. an hourly production employee's ability to catch subtle quality defects in products. Litigation. a. unions. d. personality. 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. Use the simple interest formula method. 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. 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. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. 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. Social responsibility is the expectation that businesses or individuals will strive to ______. 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. Although McDonald's is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing existing facilities. This ad seeks to convey a sense of the organization's to the viewers. are established. c. the firm's actions to exploit its competitive advantage over rivals. Your company's core competencies. The strategic management process is the systematic analysis of an organization's internal and external environment to achieve and retain a competitive advantage. c. analyses; strategies a. culture d. abilities; strategies. Corporate-level strategy focuses on ______. a. the power of the financial market stakeholders. The goal of strategy implementation is to develop a permanent competitive advantage. Study with Quizlet and memorize flashcards containing terms like . a. goal 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. Which statement about the triple bottom line is true? 09.23.22 The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to As a result, virtually all of the assets under her control are fully depreciated. b. mission Which of the following are stakeholder groups that managers should consider when making decisions? ), Business-level strategy is concerned with how companies ______. b. globalization; exports. 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. 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. Generally speaking, product market stakeholders are satisfied when: a firm achieves a balance between profit margins, costs paid to suppliers and prices set for customers, Before liquidating during a bankruptcy, a company will take several actions to try to satisfy its ____ stakeholders. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. A major assumption about the strategic management process is that it is 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. To have the potential to become sources of competitive advantage, resources and capabilities must be non- substitutable, valuable, , and organizational versus individual rationality. Defend your answer. Strategic management is the process of defining and implementing an organization's strategy. d. easy to implement; unique. C ) rational . 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. The first step in the strategic management process is to evaluate where you're going, and why. is a capacity for a set of resources to perform a task or an activity in an integrative manner. b. argues that the industry environment has a stronger influence on firms' ability to implement strategies Knowledge is an intangible resource. (n.d.). b. located in different areas and levels. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. (Check all that apply.). c. return on sales. b. mission c. rare; costly to imitate. They involve balancing culture and boundaries or constraints. (Check all that apply. What are the four levels of a company's strategy formulation? c. an ability to identify the correct solutions to long-range problems. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. A business-level strategy describes All of the following are resources of an organization EXCEPT The third step of the strategic management process is the ______ step. b. one business-level strategy. Figure 1.7: Kindred Grey (2020). c. economics. b. is an internally focused affirmation of the organization's financial, social, and ethical goals. d. unions, Organizational stakeholders are usually satisfied when A classic management tool that incorporates the idea of scanning elements both external and internal to the firm is SWOT (strengths, weaknesses, opportunities, and threats) analysis. (. 5. How much interest was earned? c. employees. https://youtu.be/o0U0gwvnhek. All of the following are assumptions of the industrial organization (I/O) model EXCEPT b. strategy _____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment. c. vulnerability of organizational stakeholders d. organization's stakeholders. b. the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. Strategic management process. The importance of knowledge is increasing. Firms use both the ______ and ______ models. . It is long-term in nature. A company competing in a single product market has 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 . Which of the following are needed in order for entrepreneurial initiatives to be successful? Synonymous with business planning and strategic planning. 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. UMT360's Strategy Execution Management solution. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. 90; 10 Strategy Evaluation. 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. a. disruptive technologies.