Ch. 1

Question 1

Strategic Management Process

Answer 1

three ongoing process - analyses, decisions, and actions - also - strategy analysis, strategy formulation, and strategy implementation

Question 2

intended strategy

Answer 2

strategy in which organizational decisions are determined only by analysis

Question 3

realized strategy

Answer 3

of any firm is a combination of deliberate and emergent strategies

Question 4

strategy analysis

Answer 4

starting point of the strategic management process. “advance work”.

Question 5

strategy analysis - analyzing organizational goals and objectives

Answer 5

vision, mission, strategic objectives form hierarchy of goals

Question 6

strategy analysis - analyzing the external environment of the firm

Answer 6

managers must scan the environment as well as analyze the competitors
1- the general environment consists of demographics and economic segments

2- industry environment constant of competitors and other organizations that may threaten the success of a firms products and services

Question 7

strategy analysis - assessing the internal environment of the firm

Answer 7

analyzing the strengths and relationships the activities that constitute a firms value chain ( HR management, Marketing and sales, operations) can be a means of uncovering potential sources of competitive advantage for the firm

Question 8

strategy analysis - assessing a firms intellectual assets

Answer 8

the knowledge worker and a firms other intellectual assets are important drivers of competitive advantages and wealth creation

Question 9

strategy formation - formulating business level strategy

Answer 9

address the issue of how to compete in a given business to attain competitive advantage

Question 10

strategy formation - formulating corporate - level strategy

Answer 10

addresses a firms portfolio of businesses
asks:
1- what business should we compete in
2- how can we manage this portfolio of businesses to create synergies among the business

Question 11

strategy formation - formulating international strategy

Answer 11

when firms enter foreign markets - must develop international strategies as to ventures beyond its national boundaries

Question 12

strategy formation - entrepreneurial strategy and competitive dynamics

Answer 12

managers must formulate effective entrepreneurial initiatives

• aimed at new creation for economic growth

Question 13

strategy implementation

Answer 13

involves ensuring proper strategic controls and organizational designs, which includes establishing effective means to coordinate and integrate activities within the firm as well as with its suppliers, customers, and alliance partners

Question 14

strategy implementation - strategic control and corporate governance

Answer 14

firm must exercise two types of strategic control

1- informational control requires that organizations continually monitor and scan the environment and respond to threats and opportunities

2- behavioral control involves the proper balance of rewards and incentives as well s cultures and boundaries

Question 15

strategy implementation - creating effective organizational designs

Answer 15

firms must have organizational structures and design that are consistent with their strategy

• firms must ensure that their organizational boundaries are more flexible and permeable

Question 16

corporate governance

Answer 16

the relationship among various participants in determining the direction and performance of corporations

1- shareholders
2- the management
3- the board of directors

Question 17

strategic management

Answer 17

consists of analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

Question 18

analysis

Answer 18

of strategic goals (vision, mission, strategic objectives) along with the analysis of the internal and external environments of the organization

Question 19

decisions

Answer 19

answers two questions
1- what to compete in
2-how to compete

Question 20

actions

Answer 20

decisions acted on

-implement their strategies

Question 21

operational effectiveness

Answer 21

performing similar activities better than rivals

Question 22

sustainable completive advantage

Answer 22

only by performing different activities from rivals or performing similar activities in different wats

Question 23

key attributes of strategic management - directed toward overall organizational goals and objectives

Answer 23

best for total organization

Question 24

key attributes of strategic management - includes multiple stakeholders in decision making

Answer 24

stakeholders - those individuals, groups, and organization that have a stake in the success of the organization, including owners employees, suppliers.

Question 25

key attributes of strategic management - requires incorporating both short term and long term perspectives

Answer 25

managers must maintain both a vision for the future and focus on its present operating needs

Question 26

key attributes of strategic management - involves the recognition of trade offs between effectiveness and efficiency

Answer 26

efficiency - doing things right | effectiveness -doing the right thing

Question 27

zero sum or symbiosis

Answer 27

zero sum - various stakeholders compete for the organizations resources: the gain of one individual or group is the loss of another individual or group

Question 28

social responsibility

Answer 28

the expectation that businesses or individuals will strive to improve the overall welfare of society

Question 29

triple bottom line

Answer 29

involves assessing financial, social, and environmental performance

Question 30

three types of leaders

Answer 30

local line leaders - have significant profit and loss responsibility executive leaders - champion and guide ideas, create a learning infrastructure and establish a domain for taking action internal networkers - little positional power and formal authority, generate their power through the conviction and clarity of their ideas

Question 31

hierarchy of goals

Answer 31

firms vision, mission, and strategic objectives

Question 32

vision

Answer 32

is a goal that is "massively inspiring, overarching, and long term" it represents a destination that is driven by and evokes passion

Question 33

visions fail for :

Answer 33

the walk doesn't match the talk irrelevance not the holy grail

Question 34

mission statement

Answer 34

differs from its vision in that it encompasses both the purpose of the company and the basis of competition and competitive advantage

Question 35

strategic objectives

Answer 35

used to operationalize the mission statement | - guidance on how the organization can fulfill or move toward the higher goals

Question 36

ambidexterity

Answer 36

the challenge managers face of both aligning resources to take advantage of existing product markets and proactively exploring new opportunities

Question 37

stakeholder management

Answer 37

a firms strategy for recognizing and responding to the interests of all its salient stakeholders

Question 38

perceptual acuity

Answer 38

the ability to sense what is coming before the fog clears

Question 39

environmental scanning

Answer 39

surveillance of a firms external environment to predict environmental changes and detect changes already underway

Question 40

environmental monitoring

Answer 40

tracks the evolution of environmental trends sequences of events or streams of activities

Question 41

competitive intelligence

Answer 41

collecting and interpreting data on competitors, defining and understanding the industry and identifying competitors strengths and weaknesses

Question 42

environmental forecasting

Answer 42

the development of plausible projections about the direction, scope, speed, and intensity of environmental change

Question 43

scenario analysis

Answer 43

a more in-depth approach to forecasting that involves experts detailed assessments of societal trends, economics, politics, technology, or other dimensions of the external environment