Strategic Management

Question 1

Strategy

Answer 1

Long-term plan of action

Question 2

Strategic Intent

Answer 2

A tangible corporate goal; is a point of view about competitive positions a company hopes to build over a decade.

Question 3

Strategic Planning

Answer 3

Systematic formation of goals and plans to achieve them.

Question 4

Strategy Formulation

Answer 4

Process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals

Question 5

Strategy Implementation

Answer 5

Those activities that employees and managers undertake to enact the strategic plan and achieve the performance goals.

Question 6

Objectives

Answer 6

The end, goals

Question 7

Plans

Answer 7

Product of Strategy

Question 8

Strategic Plan

Answer 8

A written statement that outlines the future goals of the company, including long-term performance goals

Question 9

Policies

Answer 9

Broad guidelines to action, which establish the parameters or rules

Question 10

Emergent Strategy

Answer 10

The plan that changes incrementally due to environment changes

Question 11

Intended Startegy

Answer 11

The formulated plan

Question 12

Realized strategy

Answer 12

Implemented Plan

Question 13

Corporate Strategy

Answer 13

Organizational-level decisions that focus on long-term survival

Question 14

Restructuring strategies

Answer 14

Turnaround strategy: attempt to increase the viability of an organization (eg. repositioning a failing product)

Divestiture: Sale of a division or part of an organization

Liquidation: termination of business and sale of assets

Bankruptcy: Formal procedure for appointed trustee to take possession and properly dispose of business’s assets

Question 15

Growth strategies

Answer 15

Incremental Growth: Growing through gradual changes (implementing technology)

International Growth: Seeking new customers/markets in foreign territories.

Mergers and Aquisitions: Merger- two companies joining together; Acquisitions- one company buying another

Question 16

Stability Strategy

Answer 16

-Company choses maintaining business operations and performance over growth.

-Some see it as a temporary strategy like “pause and proceed with caution” until environmental conditions are more favourable for growth.

Question 17

Business Strategy

Answer 17

Plans to build a competitive focus in one line of business

Question 18

Strategic Planning Process

Answer 18

1. Establish the mission, vision, and values.
2. Develop objectives.
3. Analyze the external environment.
4. Identify the competitive advantage.
5. Determine the competitive position.
6. Implement the strategy.
7. Evaluate the performance.

Question 19

Benefits of Strategy formulation

Answer 19

Clarity

Coordination

Efficiency

Incentives

Adjustment to change

Question 20

Consequences of lack of strategy formulation

Answer 20

• Relegating the process to official planners, and not involving executives and
  managers (and even employees), resulting in no buy-in.
• Failing to use the plan as a guide to making decisions and evaluating
  performance.
• Failing to align incentives and other HR policies to the achievement of the
  strategy