Strategic Management Midterm 1
Three stages of the strategic management process
strategy formulation strategy implementation strategy evaluation
Strategic Managment Model
vision and mission statement external and internal audit establish long-term objectives select strategies implement strategies measure and evaluate
Pitfalls of strategic management examples
wanted control satisfy regulatory requirements failing to involve key employees
Examples of external threats or opportunities
Economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive beyond company's control
A vision statement commonly answers the question, "What is our business?" whereas a mission statement is more likely to answer the question "What do we want to become?"
False
A vision statement describes an organization's values and priorities.
False
A vision statement identifies the scope of a firm's operations in product and market terms
False
According to Albert Einstein, "Knowledge is far more important than intuition."
False
According to Peter Drucker "Imagination is more important than knowledge, because knowledge is limited, whereas imagination embraces the entire world."
False
Because the position of Chief Executive Officer (CEO) has assumed much responsibility for strategic management in the last five years, the number of firms with the position of Chief Strategy Officer (CSO) has diminished drastically during this period
False
By the nature of what they do, strategists tend to have similar attitudes, values, ethics and concerns for social responsibility.
False
Despite its great popularity in the 1980s, strategic planning by corporate America is now a valuable though rare activity.
False
Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself. False
False
Middle managers are generally the most visible and critical of all strategic managers
False
Military success is usually the happy result of accidental strategies, but business success is the product of continuous attention to changing conditions and insightful adaptations to those conditions.
False
Most traditional retailers have tried in vain to use their online sales to boost in-store sales.
False
Once a firm acquires a competitive advantage, it is usually able to sustain it indefinitely
False
Once an effective strategy is designed, modifications are rarely required.
False
Optimizing for tomorrow the trends of today is the purpose of strategic management.
False
The best approach for strategists is to carefully develop strategic plans themselves and then present them to operating managers to execute.
False
The most effective strategic management is ritualistic, predictable, and formal.
False
U.S. firms are not being aggressively challenged in the computer industry.
False
Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode." False
False. It is management by ignorance. (Drucker)
Strategic management
The art and science of formulating, implementing, and evaluating functional decisions that enable an organization to achieve its objectives
All firms have a strategy, even if it is informal, unstructured, and sporadic.
True
An objective, logical, systematic, & non intuitive approach for making major decisions in an organization is a way to describe the strategic-management process.
True
Analytical and intuitive thinking complement each other.
True
Application of the strategic-management process is typically more formal in larger and well-established organizations.
True
Commitment and understanding may be the most important benefits of strategic management.
True
Firms can be more proactive with strategic management
True
Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industries.
True
Firms, like organisms, must be "adept at adapting" or they will not survive.
True
In most large organizations that engage in strategic management, the formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels: corporate; divisional or strategic business unit; and functional
True
Low-performing firms typically underestimate their competitor's strengths and overestimate their own strengths
True
Objectives should be measurable, challenging, reasonable, consistent, and clear.
True
One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based.
True
Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success
True
Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.
True
Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm
True
Substantial research indicates that a healthier workforce can more effectively and efficiently implement strategies.
True
The lack of monetary rewards is one cause of managers not engaging in strategic planning.
True
The strengths and weaknesses of an organization are determined relative to the strengths and weaknesses of its competitors.
True
The terms strategic management and strategic planning are used synonymously in this text.
True
To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.
True
Competitive advantage
any activity a firm does especially well compared to activities done by rival firms
Sustained Competitive Advantage
continually adapting to changes in external trends and events and internal capabilities, competencies, and resources; effectively formulating, implementing, and evaluation strategies that capitalize on those factors
Hierarchical levels of management
corporate, divisional, strategic business unit, and function
strategy formulation
developing a vision and mission statement, identifying external opportunities and threats, determining internal strengths and weaknesses, established long-term objectives, generating alternative strategies, and choosing particular strategies of pursue
Mission Statement
enduring statement of purpose that distinguish one business from other similar firms "What is our business?"
strategy implementation
establish annual objectics, devise policies, motivate employees, and allocate resources, so that strategies can be executed
By occasionally monitoring external events, companies should be able to identify when change is required.
false
Vision Statement
first step in strategic planning "What do we want to become?"
policies
means by which annual objectives will be achieved
Benefits of Strategic Managment
more proaction formulate better strategies emplowerment financila benefits nonfinancial benefits (more aware)
strategy evaluation
obtaining what strategies are not working; measuring performance; taking corrective actions
