Chapter 1: The Nature of Strategic Management Flashcards

1
Q

Define Strategic Management

A
  • The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.
  • This is used synonymously with the
    term strategic planning in this course.
  • This is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation.
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2
Q

The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an
organization to achieve its objectives.

A

Strategic Management

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3
Q

This is used synonymously with the
term strategic planning in this course.

A

Strategic Management

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4
Q

This is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation.

A

Strategic Management

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5
Q

Strategic Management is an art and science of formulating, implementing, and evaluating of what?

A

cross-functional decisions that enable an
organization to achieve its objectives.

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6
Q

Strategic Management is an art and science of formulating, implementing, and evaluating cross-functional decisions that enable?

A

an organization to achieve its objectives.

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7
Q

Strategic management is used synonymously with the term?

A

strategic planning in this course.

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8
Q

Sometimes the term strategic management is used to?

A

refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy
formulation.

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9
Q

Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to?

A

strategy formulation.

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10
Q

This is the company’s game plan

A

Strategic plan

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11
Q

A strategic plan is a company’s?

A

game plan.

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12
Q

Define strategic plan

A
  • A strategic plan is a company’s game plan.
  • A strategic plan results from tough managerial choices among numerous good alternatives, and it signals commitment to specific markets, policies, procedures, and
    operations.
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13
Q

A strategic plan results from?

A

tough managerial choices among numerous good alternatives, and it signals commitment to specific markets, policies, procedures, and
operations.

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14
Q

A strategic plan results from tough managerial choices among numerous good alternatives, and?

A

it signals commitment to specific markets, policies, procedures, and operations.

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15
Q

Draw the Strategic Management Model

A

Chapter 10: Business Ethics, Environmental Sustainability, and Social Responsibility
- Feedback Loop

  • Business Vision and Mission Chapter 2
  • The External Assessment Chapter 3
  • The Internal Assessment Chapter 4
  • Strategies in Action Chapter 5
  • Strategy Analysis and Choice Chapter 6
  • Implementing Strategies: Management and Marketing Issues Chapter 7
  • Implementing Strategies: Finance and Accounting Issues Chapter 8
  • Strategy Evaluation and Governance Chapter 9
  • Chapter 11: Global and International Issues
  • Strategy Formulation (4 boxes)
  • Strategy Implementation (2 boxes)
  • Strategy Evaluation (1 box)
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16
Q

What are the questions that consist in the Strategic Management Model?

A
  • Where are we now?
  • Where do we want to go?
  • How are we going to get there?
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17
Q

Provide the Stages of Strategic Management

A
  1. Strategy formulation
  2. Strategy implementation
  3. Strategy evaluation
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18
Q

Define Strategy Formulation

A

– developing a vision and mission
– identifying an organization’s external opportunities and
threats
– determining internal strengths and weaknesses
– establishing long-term objectives
– generating alternative strategies
– choosing particular strategies to pursue

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19
Q

Provide the Strategy Formulation Decisions

A
  • What new businesses to enter
  • What businesses to abandon
  • Whether to expand operations or diversify
  • Whether to enter international markets
  • Whether to merge or form a joint venture
  • How to avoid a hostile takeover
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20
Q

Define Strategy Implementation

A
  • requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources
    so that formulated strategies can be executed
    – often called the action stage
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21
Q

This is often called the action stage

A

Strategy Implementation

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22
Q

Strategy Implementation is often called as the?

A

action stage

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23
Q

This requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources
so that formulated strategies can be executed

A

Strategy Implementation

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24
Q

Strategy Implementation requires a firm to establish what?

A

annual objectives, devise policies, motivate employees, and allocate resources
so that formulated strategies can be executed

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25
Q

Define Strategy Evaluation

A

Determining which strategies are not working well

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26
Q

Determining which strategies are not working well

A

Strategy Evaluation

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27
Q

What are the Three fundamental activities in the Strategy Evaluation?

A
  1. reviewing external and internal factors that are the bases for current strategies
  2. measuring performance
  3. taking corrective actions
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28
Q

What is Competitive Advantage?

A
  • any activity a firm does especially well compared to activities done by rival firms, or
    – any resource a firm possesses that rival firms desire
29
Q

any activity a firm does especially well compared to activities done by rival firms

A

Competitive Advantage

30
Q

any resource a firm possesses that rival firms desire

A

Competitive Advantage

31
Q

Finish this sentence:
A firm must ________________________

A

A firm must strive to achieve sustained competitive advantage.

32
Q

Define Strategists

A

– Individuals most responsible for the success or failure of an organization

– Help an organization gather, analyze, and organize
information

33
Q

Strategists are most responsible for the?

A

success or failure of an organization.

34
Q

Strategists help an organization to?

A

gather, analyze, and organize information.

35
Q

What is Vision Statements?

A

A vision statement answers the question “What do we want to become?”

36
Q

A vision statement answers the question of?

A

“What do we want to become?”

37
Q

What is Mission statement?

A

A mission statement answers the question “What is our business?”

38
Q

A mission statement answers the question of?

A

“What is our business?”

39
Q

Define External Opportunities and Threats

A

economic, social, cultural, demographic,
environmental, political, legal, governmental, technological, and competitive trends and events that
could significantly benefit or harm an organization

40
Q

– economic, social, cultural, demographic,
environmental, political, legal, governmental, technological, and competitive trends and events that
could significantly benefit or harm an organization

A

External Opportunities and Threats

41
Q

Define Internal Strengths and Internal Weaknesses

A

– an organization’s controllable activities that are performed especially well or poorly

– determined relative to competitors

42
Q

an organization’s controllable activities that are performed especially well or poorly

A

Internal Strengths and Internal Weaknesses

43
Q

Define Long-Term Objectives

A

– specific results that an organization seeks to achieve in pursuing its basic mission.
– long-term means more than one year
– should be challenging, measurable, consistent, reasonable, and clear

44
Q

Long-Term Objectives are a specific results that an organization seeks?

A

to achieve in pursuing its basic mission.

45
Q

long-term means?

A

more than one year

46
Q

Long-Term Objectives should be?

A

challenging, measurable, consistent, reasonable, and clear

47
Q

Define Strategies

A

– the means by which long-term objectives will be achieved
– may include geographic expansion, diversification, acquisition, product development, market penetration,
retrenchment, divestiture, liquidation, and joint ventures

48
Q

Strategies includes?

A

geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint ventures

49
Q

Draw The Basic SWOT Matrix
Format

A

The Basic SWOT Matrix Format:
SW
O
T

50
Q

Define Annual objectives

A

– short-term milestones that organizations must achieve to reach long-term objectives
– should be measurable, quantitative, challenging, realistic, consistent, and prioritized
– should be established at the corporate, divisional, and functional levels in a large organization

51
Q

Annual objectives are short-term milestones that organizations?

A

Annual objectives are short-term milestones that organizations must achieve to reach long-term objectives

52
Q

These are short-term milestones that organizations must achieve to reach long-term objectives

A

Annual objectives

53
Q

Annual objectives should be?

A

Annual objectives should be measurable, quantitative, challenging, realistic, consistent, and prioritized

54
Q

Annual objectives should be established at?

A

Annual objectives should be established at the corporate, divisional, and functional levels in a large organization

55
Q

Define Policies

A

the means by which annual objectives will be achieved

56
Q

The means by which annual objectives will be achieved

57
Q

Provide the Benefits of Strategic Management

A
  • Strategic management allows 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.
58
Q

Draw the figure about the benefits to a firm that does strategic planning

A
  • Enhanced Communication
    1. Dialogue
    2. Participation
  • Impoved/Deeper Understanding
    1. Of other’s view
    2. Of the firm is doing/planning that way
  • Greater Commitments
    1. To achieve its objectives
    2. To implement Strategies
    3. To work hard
  • Results
    1. All managers and employee are on a mission to make the firm succeed.
59
Q

Provide the Financial Benefits

A
  • Organizations using strategic-management concepts show significant improvement in sales, profitability, and
    productivity compared to firms without systematic planning activities.
  • High-performing firms tend to do systematic planning to prepare for future fluctuations in their external and internal
    environments
60
Q

Provide the Nonfinancial Benefits

A
  • Enhanced awareness of external threats
  • Improved understanding of competitors’ strategies
  • Increased employee productivity
  • Reduced resistance to change
  • Clearer understanding of performance-reward relationships
61
Q

Why Some Firms Do No Strategic
Planning

A
  • No formal training in strategic management
  • No understanding of or appreciation for the benefits of planning
  • No monetary rewards for doing planning
  • No punishment for not planning
  • Too busy “firefighting” (resolving internal crises) to plan ahead
  • View planning as a waste of time, since no product/service
    is made
  • Laziness; effective planning takes time and effort; time is
    money
  • Content with current success; failure to realize that
    success today is no guarantee for success tomorrow
  • Overconfidence
  • Prior bad experience with strategic planning done
    sometime/somewhere
62
Q

Provide the 14 Pitfalls in Strategic Planning

A
  • Using strategic planning to gain control over decisions and resources
  • Doing strategic planning only to satisfy accreditation or regulatory requirements
  • Too hastily moving from mission development to strategy formulation
  • Not communicating the plan to employees, who continue working in
    the dark
  • Top managers making many intuitive decisions that conflict with the formal plan
  • Top managers not actively supporting the strategic-planning process
  • Not using plans as a standard for measuring performance
  • Delegating planning to a “planner” rather than involving all managers
  • Not involving key employees in all phases of planning
  • Not creating a collaborative climate supportive of change
  • Viewing planning as unnecessary or unimportant
  • Viewing planning activities as silos comprised of independent parts
  • Becoming so engrossed in current problems that insufficient or no planning is done
  • Being so formal in planning that flexibility and creativity are stifled
63
Q

What is the difference between military and business strategy?

A
  • Business strategy is formulated,
    implemented, and evaluated with an assumption of competition.
  • Military strategy is based on an
    assumption of conflict.
  • Both business and military organizations must adapt to change and constantly improve to be successful
64
Q

This is formulated, implemented, and evaluated with an assumption of competition.

A

Business strategy

65
Q

This is based on an assumption of conflict.

A

Military strategy

66
Q

Provide the Excerpts from Sun Tzu’s The Art of War Writings

A
  • Strategic planning is a matter of vital importance to the state: a matter of life or death, the road either to survival or
    ruin. Hence, it is imperative that it be studied thoroughly
  • Know your enemy and know yourself, and in a hundred battles you will never be defeated
  • Skillful leaders do not let a strategy inhibit creative counter-
    movement
67
Q

Provide the Examples of Employability Skills From Using Text

A
  • Critical thinking
  • Collaboration
  • Knowledge application and analysis
  • Business ethics and social responsibility
  • Information technology
  • Data literacy
68
Q

Draw the figure about How to Gain and Sustain Competitive Advantage

A

Check in the PPT if you’re correct