Strategic management

Question 1

definition: ideas and actions that focus on securing a desired future for an organization

Answer 1

strategies

Question 2

definition: management philosophy that emphasizes thinking in terms of strategies

Answer 2

strategic mgmt

Question 3

definition: addresses the questions of what we should be doing and why we are doing it

Answer 3

strategic thinking

Question 4

definition: addresses how and when action should be taken

Answer 4

strategic planning

Question 5

Who develops a strategic plan?

Answer 5

HRM

Question 6

What are the core elements of a strategic plan (“strategic planning cycle”)?

Answer 6

Identify the organization’s vision, values, and mission

Develop a long range strategic plan

Develop an operational objective for each goal

Implement the operational plans

Monitor and evaluate operational activities

Question 7

definition: Top down model (CEO/ COO/ CFO)

i.e. executive team determines and communicates to the company

Answer 7

Commanding model

Question 8

Commanding model of strategic planning is usually found in what kind of companies?

Answer 8

private

Question 9

The change model of strategic planning is based on what model of change?

Answer 9

behavioral model of change

–> managers, executives and sometimes staff work to find new ways to approach problems

Question 10

definition: Strategic planning model where there is often brainstorming with members at all levels of leadership of a company

–> Goal is to get input from everyone and to get a better understanding at all levels of the organization

Answer 10

collaborative model

Question 11

What type of companies is the collaborative model commonly used?

Answer 11

non-profit
academics
corporations that require input

Question 12

What type of model is the same as Collaborative but pulls in all levels and tries to incorporate organizational culture into the process?

Answer 12

cultural model

Question 13

definition: The underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization

Answer 13

organizational culture

Question 14

definition: model that works from the bottom Up – Strategic initiatives start with front line staff and managers and feed up to the executives

–> Companies like this approach but seldom can actually make it happen

“Flipping the Pyramid “

Answer 14

crescive model

Question 15

A basic model has a ____ approach.

Answer 15

top-down

Question 16

Basic models of strategic planning has a __ step process and is often used for what type of businesses?

Answer 16

5 steps

small businesses

Question 17

The issue-based models of strategic planning is an expansion of the basic model but has how many steps?

Answer 17

10 steps

Question 18

definition: strategic model that focuses on aligning resources and efforts to achieve the mission

• Often used when companies need to step back and reassess who they are and what they do
• Happens with mergers and acquisitions

Answer 18

alignment model

Question 19

definition: strategic model that evaluates “what if” scenario

Answer 19

scenario model

Question 20

definition: the legal designation assumed by a business

–> many businesses are involved
–> BOD is responsible for strategic planning

Answer 20

organization structure

Question 21

(true/false) An organization’s internal support varies by organizational size

Answer 21

true

Question 22

What are the key elements of a business plan?

Answer 22

• marketing plan
• operations plan
• financial plan

Question 23

What does the strategic plan identify?

Answer 23

Why and what

Question 24

What does a business plan identify?

Answer 24

How

Question 25

What is derived from a strategic plan and provides more specificity regarding how the business will be operated?

Answer 25

business plan

Question 26

(true/false) Operational plans can differ from the strategic plan

Answer 26

true

Question 27

What is SWOT short for?

Answer 27

Strength Weakness Opportunities Threat

Question 28

What does PEST stand for?

Answer 28

Political Economic Social Technological

Question 29

What is SWOT used for?

Answer 29

Evaluating variables that can alter the plan --> helps organize information from the external environment

Question 30

What is PEST used for?

Answer 30

environmental scanning

Question 31

Where can you find the data for demographics?

Answer 31

Bureau of Labor Statistics Census Health and Human Services National Center for Health Statistic

Question 32

Where can you find the data for economics?

Answer 32

Bureau of Economic Analysis Census Bureau Economic Development Administration

Question 33

What are the three types of stakeholders?

Answer 33

Internal (employees) Interface (organization contract employees) External (consumer, surveyors, competitors)

Question 34

(true/false) All Organizations no matter the size should do some type of strategic planning – the frequency and vigor by which they do it depends on many organizational factors

Answer 34

true

Question 35

(true/false) Organizations should start with External Forces (opportunities and threats) before they look at Internal Forces (strengths and weaknesses)

Answer 35

true

Question 36

(true/false) Internal environmental scope can cover an entire organization OR just a segment of the business.

Answer 36

true

Question 37

definition: represents the characteristics of the business at a specific point or period in time.

Answer 37

internal environmental assessment

Question 38

(true/false) Internal changes are not rapid, temporary, or permanent.

Answer 38

False (they can be)

Question 39

What are areas assessed by a compliance program?

Answer 39

Code of conduct Compliance infrastructure (e.g., compliance officer) Policies (what) and procedures (how) Prevention measures (e.g., training) Violation responses (e.g., contacts)

Question 40

definition: refers to an individual who ensures a company complies with its outside regulatory requirements and internal policies. Often reports directly to the Board of Directors (BOD) on compliance issues

Answer 40

Compliance officer --> entire department in large corporations

Question 41

What are the regulatory compliance areas?

Answer 41

Employment Environmental impact Financial management and taxation Heath services coverage and reimbursement Occupational health and safety Securities and exchange Service delivery (licensure, registration, etc.)

Question 42

definition: The act of governing in an organization to oversee the broad scope of the organization

Answer 42

organizational governance "big picture" team

Question 43

What type of BOD is most common in large corporations and many non-profits – set guidelines, appoints CEO, oversees company but does not participate in day to day?

Answer 43

policy governance

Question 44

What kind of BOD does the same as policy boards but also participates in day to day operations – oversees committees that do some part of the work for the organization?

Answer 44

working board

Question 45

What type of BOD may you see in small non-profits?

Answer 45

collective board (RARE)

Question 46

It is common for growth organizations to restructure after how long?

Answer 46

3 months to a year

Question 47

What are the two parts of organizational structure?

Answer 47

1. Clearly Defined Roles 2. Clearly Defined Reporting and Relationships

Question 48

Who commonly a conducts a financial audit (examination) of a business’s financial statements and records?

Answer 48

third party company --> The third party renders its opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.

Question 49

What does CORE stand for in an internal environmental scan?

Answer 49

Culture Objectives Resources Excellence

Question 50

What does status stand for in an internal environment scan?

Answer 50

Status Technology Authority Talent Uniqueness Satisfaction

Question 51

definition: - Reflects what is expected and valued throughout the organization - Is management’s means of transmitting expectations, shaping attitudes, shaping behaviors, and motivating employees

Answer 51

culture

Question 52

Definition: action statements that, when enacted, will help move an organization toward achievement of its goals

Answer 52

objectives

Question 53

An organization's _____ sets parameters for objectives and goals.

Answer 53

mission statement

Question 54

definition: Intangibles that can give you a competitive edge (company’s reputation, past performance)

Answer 54

goodwill

Question 55

definition: Only alternative for a one person company looking for limited liability, without the liability of corporate taxes

Answer 55

S corporation

Question 56

What are advantages of S corporations?

Answer 56

Ease in raising capital Continuity of existence without the original owner

Question 57

What are disadvantages of S corporations?

Answer 57

High regulation Legal restrictions, ownership restrictions

Question 58

What are C corporations formed under?

Answer 58

State law

Question 59

(true/false) An attorney is required for C corporations.

Answer 59

FALSE

Question 60

What are disadvantages of C Corporations?

Answer 60

- Subject to income tax on profits - If profits go to the owners, they then must pay tax on it (double taxation) - More regulation and legal restrictions

Question 61

What are advantages of C corporations?

Answer 61

- Limited personal liability - Ease of ownership transfer - Will continue to exist without the original owners - Easiest time raising capital

Question 62

definition: The underlying dynamics in an organization

Answer 62

informal power

Question 63

What is the process that is helpful in determining strength and weaknesses?

Answer 63

CORE STATUS