The strategic management process is essentially a set of steps a leader can use to help achieve better business outcomes. 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. Why is it important to view strategic management as a process? The industrial organization (I/O) model argues that This is illustrated by Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe"). d. a school board lacking in core competencies. True/False, Corporate-level strategy in a diversified organization requires a common business strategy for each component of business. Which of the following are characteristics of a well-written organizational vision statement? 2. The strategic management process is more than a set of rules to follow. Strategic flexibility Strategic planning also involves the allocation of resources in an optimal manner. (Check all that apply.). a. organizational decision makers are rational and committed to acting in the firm's best interests. 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. 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. b. team-based. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage . It had net income of$8,000 and paid out cash dividends of $5,625 in the current period. The is the most critical criterion in prioritizing stakeholders. Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. 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. Strategy execution management is the evolution of traditional project delivery. It's the process of determining the decisions an organization should take. The strategic management process is 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. d. All of these options are correct., A firm has achieved when it successfully formulates and implements a value-creating strategy. The strategic-planning process is never truly completed. b. a firm's profit margin yields an above-average return to its capital market stakeholders. 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. They involve balancing culture and boundaries or constraints. ), Which of the following must a firm's strategy be consistent with? b. globalization; exports. 09.23.22 As a result, virtually all of the assets under her control are fully depreciated. Companies have realized that failure to measure it can negatively affect the company and its community. Strategic management is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to . are established. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Strategic management is the process of defining and implementing an organization's strategy. 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). Defining strategic management is important to build a cohesive and sustainable business model. Is is measure by its ___. c. core competence. The steps for identifying the profit pools in an industry include all of the following EXCEPT True/False, Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. Typically, the formulation process starts with an assessment of available resources, an industry analysis to assess the competitive environment in which the company operates . b. analyses, strategies, and performance. True/False, Organizational mission statements typically do not include statements about profitability and earning above-average returns. 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 . Generally speaking, product market stakeholders are satisfied when Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. (Check all that apply.). Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of organizational versus _______ rationality. 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. An assessment od strengths, weakness, opportunities and threats. 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. strategic mission. conduct a thorough analysis of the external and internal environments, Strategies often fail when managers fail to do which of the following? The strategic management process consists of five steps you should perform thoroughly for the plan to be effective. ______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. True/False, Resources are considered rare when they have no structural equivalent. c. disruptive technologies. Firms don't apply for patents so that competitors can't access information in the patents. (Check all that apply.). c. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. one business-level strategy and one corporate-level strategy. Describe whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). (Check all that apply.). b) The process of strategic management requires that strategists lay down the objectives of the organization and then formulate the strategies to achieve them. Which of the following are stakeholder groups that managers should consider when making decisions? d. increasing the profitability of the firm. \text{Sales}&\text{\$850,000}\\ c. weak competitors in the industry. \text{Cost of goods sold}&\text{493,000}\\ Your mission statement. The strategic management process is. Disruptive Even for companies capable of succeeding in global markets, it is critical that they: remain committed to and strategically competitive in their domestic market. d. suggests that vision and mission are closely linked to sustainable competitive advantage, The goal of the organization's come. a. a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. the three processes are highly interdependent. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan. Some of the steps involved in the process of strategic management:- 1. Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its aims and objectives. This involves developing specific strategies and actions. a. insight. The firm's provide the foundation for choosing one or more ______ and deciding how to implement them. 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. b. committed to nurturing those around them. True/False, The CEO must encourage ambidextrous learning, absorbing new information, and building incremental knowledge in order to make the firm strategically flexible. a. vitally important at the point where a domestic firm enters the global market. c. economics. Planning extensive employee training and hiring educated and experienced employees. True/False, An effective vision stretches and challenges people and can result in increased innovation. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance. Who typically develops a firm's mission statement? The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. ____has become the second-largest economy in the world. Characteristics of Strategic Management. The ability to effectively and efficiently access and use information is a. their return on investment has been maximized. Which of the following actions by the CEO would be most consistent with this need? Chapter Layout for Strategic Management. CC BY-SA 4.0. a. values. PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. Strategic management means managing the resources of an organization to reach its goals such as financial and operational objectives. Which of the following was fastest in penetrating 25 percent of homes in the U.S. market? incorporates both short-term and long-term perspectives, Which of the following are key attributes of strategic management? A business-level strategy describes