Strategic Management Reviewer

Question 1

is a comprehensive process designed for firms to best use their resources and capabilities to provide superior firm performance.

Answer 1

Strategic Management

Question 2

are broad goals that, when accomplished, help the organization move forward toward its vision.

Answer 2

Strategies

Question 3

Strategy is a complex concept that involves many different processes and activities within an organization.

Answer 3

Strategy

Question 4

is typically a higher-level, broad goal, without a lot of specifics. It is long-term in nature. It provides the direction that an organization wants to move toward to be more successful.

Answer 4

Strategy

Question 5

He define strategic management as a set of managerial decisions and actions

Answer 5

Wheelen and Hunger (2010)

Question 6

He defines strategic management as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable a company to achieve its objectives.

Answer 6

David (2013)

Question 7

3 Stages of Strategic Management

Answer 7

Strategy formulation
Strategy Implementation
Strategy Evaluation and Control

Question 8

this stage refers to the development of long-term goals and objectives of a company after conducting a thorough analysis of the various forces comprising its environment.

Answer 8

Strategy Formulation

Question 9

this is the stage wherein different strategic plans are put into action and are aligned with defined business programs, procedures, and budgets.

Answer 9

Strategy Implementation

Question 10

This is the last stage of strategic management, where the operational performance of a company is monitored and evaluated, and remedial action is taken.

Answer 10

Strategy Evaluation and Control

Question 11

3 types of Strategies

Answer 11

Intended Strategy
Emergent Strategy
Realized Strategy

Question 12

strategy is the strategy that an organization hopes to execute. When a strategic plan is created for a new venture, it is called a?

Answer 12

Intended Strategy/Business plan

Question 13

strategy is an unplanned strategy that arises in response to unexpected opportunities and/or challenges/strategies can also lead to tremendous success.

Answer 13

Emergent Strategy

Question 14

The strategy that an organization actually follows.

Answer 14

Realized Strategy

Question 15

it refers to the abandoned parts of the intended strategy

Answer 15

Unrealized Strategy

Question 16

foundation of strategic management

Answer 16

Where are we?
Where are we going?
How are we going to get there?

Question 17

Comparing financial performance

Answer 17

where are we?

Question 18

vision “big goals”

Answer 18

where are we going?

Question 19

Heart and roadmap

Answer 19

how are we going to get there?

Question 20

“Vision animates, inspires, transforms purpose into action.”

Answer 20

Warren Bennis

Question 21

it is one key tool available to executives to inspire the people in an organization/hopes to become in the future and helps guide its strategies. “Looks to future”

Answer 21

Vision

Question 22

captures the key elements of the organization’s past and present. “umbrella”

Answer 22

Mission

Question 23

are the more specific aims that organizations pursue to reach their visions and missions.

Answer 23

Goals

Question 24

are narrower aims that should provide clear and tangible guidance to employees.

Answer 24

GOALS

Question 25

refers to how well an organization is doing to reach its vision, mission, and goals. “Complex Concept”

Answer 25

Organizational Performance

Question 26

is a metric by which an organization’s progress can be gauged. Most executives examine measures such as profits, stock price, and sales in an attempt to better understand how well their organizations are competing in the market.

Answer 26

performance measures

Question 28

is used to make sense of an organization’s standing compared to its own or a competitor’s financial measures and/or performance indicators.

Answer 28

performance benchmarks

Question 29

3 types of measures

Answer 29

Liquidity measures
Leverage measures
Profitability measures

Question 30

Paid when due

Answer 30

Liquidity measures

Question 31

Debt level is too high

Answer 31

Leverage Measures

Question 32

How much profit

Answer 32

Profitability measures

Question 33

encourages managers to also monitor how well the organization is serving customers, managing internal activities, and setting the stage for future improvements. This provides a fast but comprehensive view of the organization.

Answer 33

Balanced Scorecard

Question 34

It measures of performance relate to organizational effectiveness and profits.

Answer 34

Financial Measures

Question 35

This is basically ratio analysis; being able to make “apple to apple” comparisons between firms or annual trends that account for variable volumes, sales, expenses, and profits.

Answer 35

Financial Analysis

Question 36

This analysis helps determine how the firm compares to its competitors in the market.

Answer 36

Market-Based Analysis

Question 37

There are two measures to analyze a firm’s position in the market:

Answer 37

1. Market Share = Firm’s Total Product Revenue / Total Revenue in the industry or market.
2. . Price-Earnings (PE) Ratio = Stock price / Earnings per Share (EPS).

Question 38

There are other types of data sets that can provide useful information. For example, trend analysis is used to determine how much volumes are changing each year or extrapolate economic data to make predictions. There is most likely industry-specific data to analyze and use as a comparison for firms.

Answer 38

General Quantitative Analysis

Question 39

often provide strategic insight that may not be evident from the financial picture.

Answer 39

Performance Indicators

Question 40

measures of performance relate to customer attraction, satisfaction, and retention. These measures provide insight into the key question “How do customers see us?” Examples might include the number of new customers, customer satisfaction, and the percentage of repeat customers

Answer 40

Customer Measures

Question 41

measures of performance relate to organizational efficiency. These measures help answer the key question “What must we excel at?” Examples include the time it takes to manufacture the organization’s goods or deliver a service.

Answer 41

Internal Business Process Measures

Question 42

measures of performance relate to the future. Such measures provide insight to ask the question, “Can we continue to improve and create value?”

Answer 42

Learning and Growth Measures