Introduction to Strategic Management

Question 1

It is a set of managerial decisions and actions that determines the long run performance of a corporation.

Answer 1

Strategic Management

Question 2

BASIC MODEL OF STRATEGIC MANAGEMENT

Answer 2

1. Environmental Scanning
2. Strategy Formulation
3. Strategy Implementation
4. Evaluation & Control

Question 3

is the monitoring. evaluating and disseminating of information from the external and internal environments to key people within the corporation.

Answer 3

Environmental Scanning

Question 4

is the development of long range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses (SWOT)

Answer 4

Strategy Formulation

Question 5

is a process by which strategies and policies are put into action through the development of programs, budgets and procedures.

Answer 5

Strategy Implementation

Question 6

is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance.

Answer 6

Evaluation & Control

Question 7

3 Types of Strategy

Answer 7

Corporate Strategy
Business Strategy
Functional Strategy

Question 8

describes a company’s overall direction in terms of its general attitude toward growth & the management of its various businesses and product lines.

Answer 8

Corporate Strategy

Question 9

occurs at the business unit or product level and it emphasizes improvement of the competitive position of a corporation’s products or services in the specific industry served by that business unit.

Answer 9

Business Strategy

Question 10

is the approach taken by a functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity.

Answer 10

Functional Strategy

Question 11

is a statement of activities or steps needed to accomplish a single-use plan.

Answer 11

Programs

Question 12

It is a detailed cost of each program.

Answer 12

Budget

Question 13

are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done.

Answer 13

Procedures

Question 14

Mintzberg’s Modes or Approaches of Strategic Decision Making

Answer 14

Entrepreneurial Mode
Adaptive Mode

Question 15

Characteristics of Strategic Decision Making

Answer 15

1. Rare
2. Consequential
3. Directive

Question 16

The focus is an opportunities, problems are secondary.

Answer 16

Entrepreneurial Mode

Question 17

characterized by reactive solutions to existing problems, rather than proactive search for new opportunities.

Answer 17

Adaptive Mode

Question 18

involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternatives strategies and the rational selection of the most appropriate strategy.

Answer 18

Planning Mode

Question 19

a synthesis of the planning, adaptive and to a lesser extent of the entrepreneurial modes.

Answer 19

Logical Incrementation

Question 20

PHASES OF STRATEGIC MANAGEMENT

Answer 20

Basic Financial Planning
Forecast Based Planning
Historical Data
Strategic Management

Question 21

8 STEPS STRATEGIC DECISION MAKING PROCESS

Answer 21

1. Evaluate current performance results
2. Review corporate governance
3. Scan and assess the external environment
4. Scan and assess the internal environment
5. Analyze strategic (SWOT) factors
6. Generate, evaluate and select the best alternative strategy
7. Implemented selected strategies
8. Evaluate Implemented Strategies