Handout 1

Question 1

is sometimes used as a synonym for “Strategy,” but the two terms are not the same.

Answer 1

“Strategic Management”

Question 2

refers to a unique plan designed to achieve a competitive position in the market. It is also an interpretative plan that guides the organization to reach its goals and objectives.

Answer 2

strategy

Question 3

it consists of analyses, decisions, and actions, an organization undertakes to create, implement, and sustain competitive advantages.

Answer 3

Strategic Management

Question 4

Strategic Management is concerned with the analysis of strategic goals (mission, vision, and strategic objectives) along with the internal and external environments of the organization.

Answer 4

Analyses

Question 5

address two (2) basic questions: What industries should we compete in? And how should we compete in those industries?

Answer 5

Decisions

Question 6

require leaders to allocate necessary resources and to bring the intended strategies to reality.

Answer 6

Actions

Question 7

This perspective refers to how efforts must be directed at what is best for the total organization, not just a single functional area.

Answer 7

Directs the organization toward overall goals and objectives.

Question 8

those individuals, groups, and organizations interested in the organization’s success, including owners, employees, customers, suppliers, the community at large, and so on.

Answer 8

Includes multiple stakeholders in decision-making.

Question 9

Managers must maintain both a vision for the future of the organization and a focus on its present operating needs.

Answer 9

Needs to incorporate short-term and long-term perspectives.

Question 10

It is the difference between doing the right thing and doing things right.

Answer 10

Recognizes trade-offs between efficiency and effectiveness.

Question 11

During this phase, organizations emphasize preparing and meeting annual budgets. Financial targets are established, revenues are measured, and costs are carefully monitored.

Answer 11

Phase 1: Basic financial planning.

Question 12

During this phase, organizations usually extend time frames covered by the budgeting process (3-5 years).

Answer 12

Phase 2: Forecast-based planning.

Question 13

During this phase, organizations attempt to understand basic marketplace phenomena. Organizations begin to search for new ways to define, meet, and satisfy customer’s needs and wants.

Answer 13

Phase 3: Externally oriented planning.

Question 14

During this phase, the top management organizes planning groups of managers and key employees from various departments and workgroups.

Answer 14

Phase 4: Strategic management

Question 15

This strategy defines the markets and business in which a company will operate. It also entails a clearly defined, long-term vision that organizations set to create corporate value and motivate the workforce to implement proper actions to achieve customer satisfaction.

Answer 15

Corporate-level strategy.

Question 16

This strategy emphasizes strengthening the company’s competitive position of products or services.

Answer 16

Business level strategy.

Question 17

This strategy is formulated to achieve some objectives of a business unit by maximizing resource productivity.

Answer 17

Functional level strategy

Question 18

This strategy is usually created at the field level to achieve immediate objectives.

Answer 18

Operating level strategy.

Question 19

It pertains to the value offered by a product or service to the market.

Answer 19

Benefit

Question 20

It pertains to a selected group of customers within a business’ available market at which a business aims its marketing efforts and resources.

Answer 20

Target market.

Question 21

It pertains to the rivalry between companies that sell similar goods and services.

Answer 21

Competition.

Question 22

This pertains to the strategy of a company that involves producing a product or providing a service at a lower cost than its competitors.

Answer 22

Cost advantage.

Question 23

This pertains to a company’s strategy that involves marketing the qualities of a product that sets it apart from other similar products and uses that difference to drive consumer choice.

Answer 23

Differentiation strategy