chap 8: strategic control mechanism

Question 1

the process of monitoring the various strategies of the organization and determining whether there is a parallelism between the organizational milieu and that of the environment

Answer 1

STRATEGIC CONTROL

Question 2

is designed to check systematically and regularly whether the arguments set during the planning and Implementation processes are still binding. When strategies are formulated, these are based on certain premises or assumptions. However, since the external environments are Continuously changing, there is a need to closely monitor the set strategies and make the necessary change or changes when needed.

Answer 2

Presupposition control

Question 3

is designed to check systematically and regularly whether the arguments set during the planning and Implementation processes are still binding. When strategies are formulated, these are based on certain premises or assumptions. However, since the external environments are Continuously changing, there is a need to closely monitor the set strategies and make the necessary change or changes when needed.

Answer 3

Presupposition control

Question 4

is applied to evaluate whether the intermediate strategies are consistent with the overall strategy. In many instances, a strategy consists of small activities that complement each other and lead to the ultimate attainment of the mother strategy. In cases when these transitional activities become misaligned for one reason or another, then there is a need to review the reasons for such occurrence.

Answer 4

Implementation control

Question 5

is a monitoring system whereby a broad range of occurrences inside and outside the organization threatens the implementation of an organization’s strategy. means shadowing, observing, and scrutinizing the milieu. It demands constant awareness, consciousness, and knowledge of how the strategy implementation is faring

Answer 5

Strategic surveillance

Question 6

is a special type of strategic control that is applied when immediate reconsideration of an organization’s strategy/strategies is pursued. This is called for when unusual events happen and there is no choice but for the organization to attend to it and do the corresponding changes.

Answer 6

Vigilance control

Question 7

is the traditional way of coking at strategic monitoring. is followed progressively by the designed strategy implementation. Once the strategies have been employed, it is only then that strategic monitoring is carried out.

Answer 7

Sequential strategic control

Question 8

is an approach that shows the communicating and collaborative nature of the processes of strategy formulation. strategy Implementation, and strategic control. it presents the interrelationships of each of these processes with each other. In other words, as strategies are being formulated, strategy implementation is constantly being evaluated.

Answer 8

Interactive strategic control

Question 9

is an approach that shows the communicating and collaborative nature of the processes of strategy formulation. strategy Implementation, and strategic control. The interactive strategic control presents the interrelationships of each of these processes with each other. In other words, as strategies are being formulated, strategy implementation is constantly being evaluated.

Answer 9

Interactive strategic control

Question 10

is a combination of the sequential and interactive approaches Although strategy formulation, strategy implementation, and strategic monitoring appear to be sequential, it is essentially interactive. Constant feedback are effected with respect to the formulated and implemented strategies.

Answer 10

Feedback strategic control

Question 11

is the ratio of the results derived from the resources invested by an organization, or

Answer 11

Performance

Question 12

is the ratio of the results derived from the resources invested by an organization, or

Answer 12

Performance

Question 13

There are different ways of measuring _ These Include profitability measures, liquidity measures, gearing (risk) measures, and other investor’s measures,

Answer 13

financial performance.

Question 14

show the organization’s or company’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period. These are gross profit margin, net profit margin, return on capital employed (ROCE) and asset Turnover.

Answer 14

Profitability metrics

Question 15

show the extent to which a company has money to meet immediate obligations. Current ratio, inventory holding period, receivables (debtor) collection Period, and payables (creditor) penod are forms of liquidity measures.

Answer 15

• Liquidity measures

Question 16

are determinants of financial leverage. it measures the percentage of capital employed that is financed by debt and kong-term financing. The higher the gearing ratio, the higher the dependence on borrowing and long-term financing; and the lower the gearing ratio, the higher the dependence on equity financing. Another gearing measure is interest cover.

Answer 16

Gearing measures

Question 17

are the emphasis of every organization that aims to achieve success.

Answer 17

Efficiency/Productivity Performance (Measures of success are quantitative. Efficiency and productivity are measurable concepts.)

Question 18

is normally defined as the ability to do something or produce something without wasting materials, time, or energy. It is employing the least amount of input to create the maximum amount of output.

Answer 18

Efficiency/productivity

Question 19

They are used interchangeably and may be expressed in the form of number of units produced, number of hours consumed, number of defects reduced, time saved, amount of pesos earned, amount of savings made, and others.

Answer 19

Efficiency/Productivity Performance

Question 20

In addition to financial performance, feedback can be adequately actualized through

Answer 20

market performance metrics.

Question 21

Examples include market growth rate, market share, net marketing contribution, marketing return on sales (ROS) marketing return on investment (ROI), and customer retention.

Answer 21

Market Performance

Question 22

Because of the hypercompetition permeating in the environment, hot to mention, the dynamic outlook of organizations in dealing with their products and services and against one another, effectiveness has Incorporated today challenging orientation. a deeper and more

Answer 22

People Performance

Question 23

It has adopted a renewed, emphatic, and broader perspective, concentrating and focusing more on people and how they operationally and uniquely do things.

Answer 23

People Performance

Question 24

Gauging and analyzing differentiated people performance are expressed through indices.

Answer 24

People Performance

Question 25

The external and internal environments and organizational components are important to any organization.

Answer 25

STRATEGIC MANAGEMENT REVISITED

Question 26

includes a confluence of social. Political, technological, economic, environmental, and legal forces that influence organizational direction and strategic decision-making.

Answer 26

The external environment

Question 27

consist of the government, culture, the stakeholders, competitors. suppliers, customers, and the community.

Answer 27

The internal environmental variables

Question 28

In addition, management, employees, facilities and equipment financial resources, and organizational culture are referred to as

Answer 28

organizational components.

Question 29

are activities that organizations prepare and articulate to achieve their desired intents, of which are significant to their organizational existence.

Answer 29

Strategies

Question 30

almost always presents the prenise for success.

Answer 30

Strategy implementation

Question 31

is effectively assessed through the use of quantifiable measures or performance metrics.

Answer 31

• Strategic monitoring

Question 32

are important to measure the extent or degree of accomplishment. Otherwise, the entire process of strategic management becomes arbitrary, unproductive, and futile.

Answer 32

Performance metrics