Week 3

Question 1

process is an attempt both to
duplicate what goes on in the mind of a brilliant, intuitive
person who knows the business and to couple it with
analysis.

Answer 1

Strategic-management

Question 2

is particularly useful for making decisions in
situations of great uncertainty or little precedent.

Answer 2

Intuition

Question 3

●is helpful when highly interrelated variable exist
or when it is necessary to chose from several plausible
alternatives.

Answer 3

Intuition

Question 4

means developing strategies in advance of an organizational issue.

Answer 4

Prescriptive Strategic Management

Question 5

The ________________ is best described as doing
things “by the book”.

Answer 5

prescriptive approach

Question 6

The prescriptive approach is best described as doing
things “_____________”.

Answer 6

by the book

Question 7

means putting strategies into practice when needed.

Answer 7

Descriptive Strategic Management

Question 8

Both methods of strategic management employ management _______ and __________.

Answer 8

theory and practices

Question 9

The ________________ is learning by experience.

Question 10

The descriptive approach is learning by ___________.

Answer 10

experience

Question 11

The main difference between these two approaches to strategic
management is the direction in
which decisions flow.

Question 12

leaders make decisions and expect employees to comply, while under the descriptive approach, leaders
seek input and feedback from
their subordinates.

Answer 12

prescriptive strategy

Question 13

Strategic management offers many benefits to companies that use it, including:

Answer 13

1. COMPETITIVE ADVANTAGE
2. ACHIEVING GOALS
3. SUSTAINABLE GROWTH
4. COHESIVE ORGANIZATION
5. INCREASED MANAGERIAL AWARENESS

Question 14

Strategic management gives businesses an advantage over competitors because its proactive
nature means your company will always be aware of the changing market.

Answer 14

COMPETITIVE ADVANTAGE

Question 15

Strategic management helps keep goals achievable
by using a clear and dynamic process for formulating
steps and implementation.

Answer 15

ACHIEVING GOALS

Question 16

Strategic management has been shown to lead to more efficient organizational performance, which leads to manageable growth.

Answer 16

SUSTAINABLE GROWTH

Question 17

Strategic management necessitates communication
and goal implementation company-wide.

Answer 17

COHESIVE ORGANIZATION

Question 18

An organization that is working in unity towards a goal is
more likely to achieve that goal.

Answer 18

COHESIVE ORGANIZATION

Question 19

Strategic management means looking toward the
company’s future.

Answer 19

INCREASED MANAGERIAL AWARENESS

Question 20

If managers do this consistently, they will be more aware of industry trends and challenges.

Answer 20

INCREASED MANAGERIAL AWARENESS

Question 21

By implementing strategic planning and thinking, they
will be better prepared to face future challenges.

Answer 21

INCREASED MANAGERIAL AWARENESS

Question 22

To survive, all organizations must astutely identify and adapt to change.

Answer 22

Adapting to Change

Question 23

The strategic-management process is aimed at allowing organizations to adapt effectively to change over the long run.

Answer 23

Adapting to Change

Question 24

KEY STRATEGIC MANAGEMENT QUESTIONS

Answer 24

1. What kind of business should we become?
2. Are we in the right field(s)?
3. Should we reshape our business?
4. What new competitors are entering our industry?
5. What strategies should we pursue?
6. How are our customers changing?
7. Are new technologies being developed that could put us out of business?

Question 25

Anything that a firm does especially well compared to rival firms.

Answer 25

Competitive Advantage

Question 26

Something that a firm can do that rival firms cannot do, or something that a firm own that rival firms desire.

Answer 26

Competitive Advantage

Question 27

A firm must strive to achieve a sustained competitive advantage by: * Continually adapting to changes in external trends and events and internal capabilities, competencies, and resources; and * effectively formulating, implementing, and evaluating strategies that capitalize upon those factors.

Question 28

The individuals who are most responsible for the success or failure of an organization.

Answer 28

Strategist

Question 29

*They help the organization gather, analyze, and organize information.

Answer 29

Strategist

Question 30

- _________________ answers the question “What do we want to become?”

Answer 30

vision statement

Question 31

- ________________answers the question “What is our business?”

Answer 31

mission statements

Question 32

refers to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm organization in the future.

Answer 32

External Opportunities and Threats

Question 33

*Organization's controllable activities that are performed especially well or poorly.

Answer 33

Internal Strengths and Weaknesses

Question 34

*Superiority or deficiency relative to competitors.

Answer 34

Internal Strengths and Weaknesses

Question 35

specific results that an organization seeks to achieve in pursuing its basic mission

Answer 35

Long-Term Objectives

Question 36

short term milestone that organizations must achieve to reach long-term objectives

Answer 36

Annual Objectives

Question 37

- potential actions that require top management decisions and large amount of the firm’s resources for achieving the objectives

Answer 37

STRATEGIES

Question 38

- includes guidelines, rules and procedures established to support efforts to achieve stated objectives.

Answer 38

POLICIES

Question 39

Three Important Question to Answer in Developing a Strategic Plan

Answer 39

ØWhere are we now? ØWhere do we want to go? ØHow are we going to get there?

Question 40

al lows an organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence (rather than just respond to) activities – and thus to exert control over its own destiny.

Answer 40

Strategic Management

Question 41

A. Dialogue B. Participation

Answer 41

Enhanced communication

Question 42

A. Of other's views B. Of what the firm is doing/planning and why

Answer 42

Deeper/Improved Understanding of

Question 43

A. TO achieve objectives B. To implement strategies c. TO work hard

Answer 43

Greater Commitment

Question 44

All managers and employees on a mission to help the firm succeed

Answer 44

The result

Question 45

ØDelegating planning to a “planner” rather than involving all managers.

Answer 45

Pitfalls in Strategic Planning

Question 46

ØFailing to involve key employees in all phases of planning.

Answer 46

Pitfalls in Strategic Planning

Question 47

ØFailing to create a collaborative climate supportive of change.

Answer 47

Pitfalls in Strategic Planning

Question 48

ØViewing planning as unnecessary or unimportant.

Answer 48

Pitfalls in Strategic Planning

Question 49

ØBecoming so engrossed in current problems that insufficient or no planning is done.

Answer 49

Pitfalls in Strategic Planning

Question 50

ØBeing so formal in planning that flexibility and creativity are stifled.

Answer 50

Pitfalls in Strategic Planning