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. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? It involves action plans that ensure continued performance and thriving progression. b. the complex set of ideologies, symbols, and core values that are shared throughout the firm. The culmination of the strategic management process is: a. performance. Explain your reasoning. b. strategy a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. D. $43,375. Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. In Chapter 6 Selecting Business-Level Strategies, we discuss how selecting business-level strategies helps to provide firms with a recipe that can be followed that will increase the likelihood that their strategies will be successful. Apple's iPod and iPad are examples of True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. \text{Sales}&\text{\$850,000}\\ a. size; number of competitors. c. knowledge intensity. d. government regulators. 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. 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. Litigation. b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. c. vulnerability of organizational stakeholders The video for this lesson explains the strategic management process. c. host communities c. the interests of the firm's organizational stakeholders have been maximized. 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. ), Which of the following are examples of business-level strategies? The final responsibility for forming the organization's mission lies with the b. all policies and procedures used in functional departments. coordinating and integrating activities within the firm and with suppliers and customers, Strategy implementation involves ______. 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? 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? 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.). It is long-term in nature. It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the competitors and take necessary . 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. a. insight. $$ In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. It's the process of determining the decisions an organization should take. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. d. social value of each stakeholder. c. decisive. a. an hourly production employee's ability to catch subtle quality defects in products. It is a process that requires a systematic . Determine organizational readiness. a. are willing to be brutally honest. (Check all that apply.). The steps for identifying the profit pools in an industry include all of the following EXCEPT 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. In the resource-based model, which of the following factors would be considered a key to organizational success? Effective strategies Apple uses to create loyal customers. All of the following are assumptions of the industrial organization (I/O) model EXCEPT b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. B. Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. Strategic planning process is a systematic or emerged way of performing strategic planning in the organization through initial assessment, thorough analysis, strategy formulation, its implementation and evaluation. b. shareholders. Synonymous with business planning and strategic planning. examples of each based on your own experiences. A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. . The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. 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. 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. a. disruptive technologies. It determines which business(es) should be in the company's portfolio. Managers execute or implement their decisions as ______ in the third step of the strategic management process. Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? 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. Strategic management is a process that requires the ability to manage change. c. political dimensions. d. global dimensions. True/False, Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that . Measure the progress by comparing the plan against actual results. 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: Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions. d. The Internet. Your long-term goals and/or BHAGs. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. b. receiving the highest-quality products and services in the industry. b. d. All of these options are correct. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. a. 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. Efficiency, in terms of strategic management, can best be described as ______. Alfred Chandler, 1962. b. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. b. success, weakness, opportunities, and taxes. (n.d.). The two opposing ways of examining stakeholder management are called ______ and ______. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. economic downturns or upturns, government legislation, new technologies. b. resources alone can be a source of sustainable competitive advantage. 60; 40 This is because the organization's role as a taxpayer is most important to as stakeholders. A vision a. overload middle managers. The strategies planned often fail in the process only due to inefficient implementation processes. 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 . 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. Strategic management is the organization's analysis, decision-making, and actions to create and maintain a competitive advantage (Gurel Emet, 2017;Tapera, 2014). It involves identifying internal and external factors and understanding how they affect an organization. b. focus on strategy formation. d. mission, ___is an investor's uncertainty about the economic gains or losses that will result from a particular investment. The modern competitive environment requires an iterative approach to strategic management where execution informs planning and planning guides execution. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). The second step in the strategic management process is ______. (Check all that apply. a. unique market niche is a capacity for a set of resources to perform a task or an activity in an integrative manner. Broad Plans Shaping: In this continuous process, the formulation & implementation of broader plans are made and finally, these are also controlled. a. the businesses in which the company intends to compete. b. an important source of competitive advantage in virtually all industries. a. Strategic planning aims to create . 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. b. Certainly, part of Apples success is due to the unique products it offers the market, as well as how these products complement one another. In Chapter 7, Innovation Strategies, we present insights on the role innovation plays in strategy development and implementation. Strategic Management. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. 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 . b. the resource-based model. 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. shareholders, management, and the board of directors. d. focus on innovation. The I/O model is grounded in a. unions. d. ability, successes, and performance. True/False, If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision-making. The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. As this title implies, Sun Tzu emphasized the creative and deceptive aspects of strategy. b. host communities. 3. (Remember to type only one word in the blank.). a. one corporate-level strategy. b. regardless of their location in the organization b. mission a. goal (C) rational. 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. - Resource analysis to select workforce and assign suitable tasks. 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. d: 70: 3884478507 c. an ability to identify the correct solutions to long-range problems. a. unique; easy to imitate. c. employees. 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. True/False, Although organizational cultures vary considerably, one cannot make an objective judgement that some organizational cultures are more or less functional than others in terms of ethical considerations. c. culture True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. b. innovation Kick-Off Meeting: 1 hr. The strategic management process is a crucial element of any organization's success. For instance, a SWOT analysis (Strengths-Weaknesses . To implement a strong strategy effectively, an experienced . c. Knowledge This is because the organization's role as a taxpayer is most important to ___ as stakeholders. Retrieved from https://flic.kr/p/bPNmxi. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. d. All of these options are correct. The resource-based view of the firm Which of the following statements about the strategic management process is true? c. disruptive technologies. The third step of the strategic management process is the ______ step. (Check all that apply.). d. located at different levels, but only in the operating area of the organization, . b. abilities; strengths ______ 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.