Book Summary Flashcards
What is the primary purpose of strategic management?
To formulate, implement, and evaluate cross-functional decisions that enable an organization to achieve its objectives.
True or False: Strategic management is only relevant for large corporations.
False
Name the three main stages of the strategic management process.
Strategy formulation, strategy implementation, and strategy evaluation.
What does SWOT stand for in SWOT analysis?
Strengths, Weaknesses, Opportunities, Threats.
Fill in the blank: The __________ is a tool used to assess the internal and external environments of an organization.
SWOT analysis
What are the five forces in Porter’s Five Forces Model?
Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and industry rivalry.
True or False: Competitive advantage is achieved when a firm is able to create more economic value than its rivals.
True
What is a mission statement?
A formal summary of the aims and values of a company, organization, or individual.
What is the difference between long-term and short-term objectives?
Long-term objectives are broader goals that take years to achieve, while short-term objectives are specific, measurable goals set for the near term.
Multiple Choice: Which of the following is NOT a component of the external environment analysis? A) Economic factors B) Technological factors C) Organizational structure D) Legal factors
C) Organizational structure
What role does corporate governance play in strategic management?
It involves the system of rules, practices, and processes by which a firm is directed and controlled.
Fill in the blank: __________ strategies are focused on improving a company’s market position.
Competitive
True or False: A strategic plan should be static and not change over time.
False
What is the purpose of benchmarking in strategic management?
To compare business processes and performance metrics to industry bests and best practices from other companies.
What is a value chain analysis?
A process of examining the activities within and around an organization and identifying where value is added to products or services.
Multiple Choice: Which of the following is a type of corporate strategy? A) Growth B) Stability C) Retrenchment D) All of the above
D) All of the above
What is strategic fit?
The alignment between an organization’s internal capabilities and its external environment.
True or False: Strategic management is only concerned with the allocation of resources.
False
What does the term ‘core competencies’ refer to?
Unique strengths or capabilities that provide a competitive advantage.
Fill in the blank: The __________ model helps in understanding the competitive forces within an industry.
Porter’s Five Forces
What is the role of a strategic leader?
To guide the organization in formulating and implementing strategies that achieve its goals.
Multiple Choice: Which of the following is a key factor in strategy implementation? A) Communication B) Resources C) Leadership D) All of the above
D) All of the above
What is a strategic alliance?
A formal agreement between two or more firms to pursue a set of agreed-upon objectives while remaining independent organizations.
True or False: Environmental scanning is a critical part of the strategy formulation process.
True
What is the significance of the PESTEL analysis?
It helps organizations analyze the macro-environmental factors that can impact their performance: Political, Economic, Social, Technological, Environmental, and Legal.
