______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders. The final chapter explores how to lead an ethical organization through corporate governance, social responsibility, and sustainability. c. competition; competency The ______ view of stakeholder management views the management process as groups competing for the organization's resources. c. Sustainable competitive advantage 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. d. easy to implement; unique. b. one business-level strategy. This behavior reflects Chapter 10 Executing Strategy through Organizational Design offers ideas on how to manage these elements of implementation. \text{Gross profit}&\text{357,000}\\ a. the social energy that drives, or fails to drive, the organization. Top management teams (TMTs) - comprising the most influential executives in an organization - are important because of their influence over strategic choices and performance. It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. b. resources alone can be a source of sustainable competitive advantage. c. vision 2. If the profitability of the company is higher than before and other companies, then it means that you have achieved a competitive edge. d. coordinating the vision and mission of each subsidiary firm. d: 70: 3884478507 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. This improved performance is best explained by The firm makes less efficient use of its assets than other firms. economic downturns or upturns, government legislation, new technologies. c. capabilities are highly mobile across firms. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. (Check all that apply.). The triple bottom line measures the performance of which of the following? ____has become the second-largest economy in the world. The culmination of the strategic management process is a. performance. symbiosis; zero sum. Given that the company's other division managers use straight-line depreciation, is her use of an accelerated method ethical? (B) team-based. Afra Alnaimi. After executing the environmental analysis process, management . c. Knowledge Situation Analysis. The importance of knowledge is increasing. 1. True/False, Relative power is the most critical element for prioritizing the demands of stakeholders. A Deeper Dive into the Strategic Management Process. a. vitally important at the point where a domestic firm enters the global market. The last stage of the strategic management process includes diligent monitoring and review of all the processes that contribute to achieving the business goal. b. strategy implementation. Planning Team and Executive Team. (Michael, R, & Robert, 2009, p.6) Tiger Airways Australia was chosen as the object of study. Economies of scale and huge advertising budges are just as effective in the new competitive landscape as they were in the past. 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. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. Strategic management is the management of an organization's resources to achieve its goals and objectives. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. How to develop a strategic management process. 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 I/O model. Find the future value of an annuity due of $\$ 12.000$ annually for three years at $3\%$ annual interest. d. concentration on the practical day-to-day aspects of the organization's operations. It is a process that requires a systematic . Identify your goals. True/False, Resources are considered rare when they have no structural equivalent. b. I/O; resource-based It guides the company to move in a specific direction. 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. It is long-term in nature. a. analyses, successes, and purposes. Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers. A more formal definition tells us that strategic management "is the process by which a firm manages the formulation and implementation of its strategy.". a. the businesses in which the company intends to compete. The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. d. culture. A firm's mission . b. top-management team. ______ is performing similar activities better than rivals do. d. hypercompetition within the industry. This is the final stage of the strategic management process. The culmination of the strategic management process is Chess CC BY-NC 2.0. shareholders, management, and the board of directors. Strategic management can also be described as a bundle of decisions and acts which a manager undertakes and which determine the result of the business's performance. 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. As a result, virtually all of the assets under her control are fully depreciated. (Check all that apply.). b. shareholders. The ___ is the most critical criterion in prioritizing stakeholders. c. economies of scale The rate of technology diffusion has been steadily increasing over the last two decades. c. hypercompetition; technology diffusion. The steps for identifying the profit pools in an industry include all of the following EXCEPT 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. c. decisive. c. profits that are accrued when a firm earns above-average returns. Meaning of Strategic Management. The strategic management process is a crucial element of any organization's success. True/False, The assumptions of the I/O model and the resource-based model are contradictory. a. pool of assets that is distributed to investors. c. one business-level strategy for failure. The culmination of the strategic management process is: a. performance. What other games might help teach strategic thinking. A firm's hierarchy of goals include its ______. Reward This pronouncement is most precisely a statement of organizational At this stage, your strategy is already in action and you need to measure the effectiveness of the strategy. b. oil drilling rights in a promising region. 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. Which of the following are stakeholder groups that managers should consider when making decisions? It helps in analyzing the internal and external factors influencing an organization. Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . Organizational stakeholders are usually satisfied when, companies provide a dynamic, stimulating, and rewarding work environment. 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. A.$2,375. 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. A sustainable competitive advantage is not achieved through operational effectiveness alone. d. strengths, weaknesses, opportunities, and threats. Strategic management involves setting objectives, analyzing the competitive environment . a. predict future revenue streams for the organization. c. disruptive technologies. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . c. ability, strategies, and purposes. b. customers pay the highest sustainable price for the goods and services they receive. This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. It offers courses accredited to AMBA, AACSB & NIRF. In Chapter 2 Assessing Organizational Performance, we focus on how the organizations mission and vision shape the development of the firms strategy. Reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals & objectives. The final responsibility for forming the organization's mission lies with the a. vision True/False. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm. ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes. a. ), Which of the following are social responsibility expectations that go beyond a firm's product and service quality? In the instance, the implementation . b. What is the Strategic Management process? New markets created by iPods, PDAs, and Wi-Fi are a result of 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. is a capacity for a set of resources to perform a task or an activity in an integrative manner. The goal of strategy implementation is to develop a permanent competitive advantage. a. \begin{array}{llr} c. A mission b. strategic flexibility Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. 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. 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. calls for firms to focus on their homogeneous capabilities to compete against their rivals. . b. committed to nurturing those around them. Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization? 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. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. Explain your reasoning. Which of the following are true of behavioral controls? Strategic Management. Your mission statement. This is because the organization's role as a taxpayer is most important to ___ as stakeholders. It involves identifying internal and external factors and understanding how they affect an organization. 1.3 Intended, Emergent, and Realized Strategies, 1.5 Contemporary Critique of Strategic Management, 1.6 Understanding the Strategic Management Process, 3.2 The Relationship between an Organization and its Environment, 4.4 Intellectual Property & Isolating Mechanisms, 6.2 Understanding Business-Level Strategy through "Generic Strategies", 6.5 Focused Cost Leadership and Focused Differentation, 7.6 Responding to Innovation in the Market, 8.6 Portfolio Planning and Corporate-Level Strategy, 9.2 Advantages and Disadvantages of Competing in International Markets, 9.5 Drivers of Success and Failure When Competing in International Markets, 9.6 Options for Competing in International Markets, 10.3 The Basic Building Blocks of Organizational Structure, 10.4 Creating an Organizational Structure, 10.5 Creating Organizational Control Systems, 11.4 Corporate Ethics and Social Responsibility, 11.5 Contemporary Questions of Corporate Ethics. The strategic-planning process is never truly completed. c. speed 97.A major assumption about the strategic management process is that it is: (A) inspired. b. a willingness to unify stakeholders through skillful manipulation. It is important because it helps the business to make decisions unbiasedly and react to changes rapidly. A company competing in a single product market has d. a firm's resources, intent, and mission. c. rational. b. split responsibilities between the CEO and the board of directors as a result of corporate scandals triggered by unethical CEOs. a: 69: 3884476977: Managers must adopt a new mind-set that values conditions. ______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame. . a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. 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. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. (Check all that apply.). is a statement of a firm's business in which it intends to compete and the customers it intends to serve. 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. b. regardless of their location in the organization It requires incorporating both short-term and long-term perspectives. Continuous learning In ancient China, strategist and philosopher Sun Tzu offered thoughts on strategy that continue to be studied carefully by business and military leaders today. Reward c. Risk d. Revenue ANSWER: c 105. Which of the following statements about operational effectiveness are correct? Analysis of the industry's profit pool enables strategic managers to Knowledge is composed of all the following EXCEPT 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. Who typically develops a firm's mission statement? d. increasing the profitability of the firm. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and _____. how your business plans to achieve it goals and improves and sustains it position in the industry. The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. A strategic management process can help guide the decisions and actions of senior executives within an organisation. Synonymous with business planning and strategic planning. In a diversified firm, corporate-level strategy is concerned with: determining in which businesses to compete and how resources will be allocated between businesses. a. located only at the executive level. Strategic management process has following four steps: Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. b. achieve strategic competitiveness. Australian market continued to be attractive for existing operators based on . D) analysis. 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. c. political dimensions. Strategic Management: Chapter 2 Multiple Choi, Barnes & Noble, Inc: Maintaining A Competitiv, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value. Environmental and internal scanning is the next stage in the process. C) strategy formulation. The mission of IIM Lucknow is to improve management systems with regard to business, industry and public services through pursuit of excellence in management education, research, consultancy and training. Match the strategic management process with its corresponding term. Greenleaf Property Management has been earning below-average returns for the last three years. 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. It's the process of determining the decisions an organization should take. 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. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000\$ 100,000$100,000. d. one business-level strategy and one corporate-level strategy. the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage Strategy formulation. True/False, Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. . The strategies planned often fail in the process only due to inefficient implementation processes. b. receiving the highest-quality products and services in the industry. 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. c. the lack of an organizational mission for the school board. d. analysis. b. a functional, although unethical, culture of the school board. d. products that were not imitated by competitors. c. a process directed by top . a. return on assets. (Check all that apply. organizational versus individual rationality. The first step in the strategic management process is to evaluate where you're going, and why. c. knowledge intensity. 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. Firms use both the _____and______models. b. estimating the overall size of the pool. business, corporate, international, and entrepreneurial. d. focus on innovation. The SWOT is then used to formulate the strategic issue(s) that the firm must deal with as it formulates strategies. b. expertise. 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. Firms don't apply for patents so that competitors can't access information in the patents. 3. b. 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. The resource-based view of the firm .It is well known that the elected school board of a large city engages in unethical and illegal activities involving the awarding of major contracts. Strategic management is the effective handling of a firm's resources to achieve its set objectives and goals. Knowledge is an intangible resource, the importance of knowledge is increasing, and the value of knowledge as a proportion of shareholder value is increasing. 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. a. globalization. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. d. competitive dominance. a. their return on investment has been maximized. UMT360's Strategy Execution Management solution. b. resources to implement strategies are firm-specific and attached to firms over the long-term. Strategic Management Process [Video]. a. Perpetual It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have All of the following are assumptions of the resource-based model EXCEPT a. committed to helping the firm create value for all stakeholder groups. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. Apple's iPod and iPad are examples of Strategy Evaluation. b. mission Organizational goals and objectives should represent what is best for ______. Which of the following state the goals and intentions that help define a firm's competitive advantage? 3. Learn more about how Pressbooks supports open publishing practices. ), what business(es) should the company compete in. . d. global dimensions. a. the core values of the school board as an organization. Make Better business decisions: It is important to understand the difference between a great idea and a good idea. ______ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. Return d. attractiveness; profitability. Strategy Implementation emphasizes on efficiency; requires motivational and leadership traits. c. host communities b. the resource-based model. one business-level strategy and one corporate-level strategy. b. a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment. 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. (Check all that apply.). In such a . A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Retrieved from https://commons.wikimedia.org/wiki/File:Chapter_Layout_for_Strategic_Management.png. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. A firm has achieved when it successfully formulates and implements a value-creating strategy. (Check all that apply.). strategic objectives. For instance, a SWOT analysis (Strengths-Weaknesses . A model of strategic management process represents a clear and practical approach for formulating, implementing, and evaluating strategies. True/False, The goal of strategy implementation is to develop a permanent competitive advantage. Which of the following statements about organizational knowledge is correct? 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. what people do when no one else is looking. The strategic management process begins with an understanding of strategy and performance. 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. The two opposing ways of examining stakeholder management are called ______ and ______. It should seek to diversify. What are the four levels of a company's strategy formulation? The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. a. _________ strategy is a combination of deliberate and emergent strategies. Your company's core competencies. Introduction. (Remember to type only one word in the blank.). c. employees. The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. A firm has achieved ______ when it successfully formulates and implements a value-creating strategy. a. culture 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? Firms use both the ______ and ______ models. b. strategy Effective strategic leaders are chosen based on: their capabilities and accumulation of human capital over time. All of the following are resources of an organization EXCEPT Importance of Strategic Management. c. the minimum required for survival in virtually any industry. d. All of these options are correct. b. return on equity. When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. d. All of these options are correct, Strategic delegation helps 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. This perspective is known as ______. A core competence incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? d. differences in resources and capabilities are the basis of competitive advantage. Explain the difference between negative reinforcement and punishment, and provide several c. information. Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. Establish your planning team and schedule. c. strength, wealth, organization, and taxes. c. the profitability of the industry in which the firm competes. d. the internal structure of the organization must match the industry in which it competes in order to earn above-average returns on investment. d. a charity's endowment of $400 million. Strategic management is directed toward a company's ______. The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. ______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones. 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. To implement a strong strategy effectively, an experienced . It is important to consider that the decision: has ethical implications for organizational stakeholders. Chapter 1 - The Strategic Management Process, Chapter 13: Sexually Transmitted Infections, Information Technology Project Management: Providing Measurable Organizational Value, Service Management: Operations, Strategy, and Information Technology, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Chapter 10 /Dada/Magic Realism/Surrealism. On-Going Process: Strategic Management is the continuous process that takes place in the existence of the organization. This activity is important because proper use of strategic management techniques . Which of the following are characteristics of a well-written organizational vision statement? b. total profits earned in an industry along all points of the value chain. a. one corporate-level strategy. b. host communities. Environmental Scanning 2. 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.