Strategic Management

Question 1

What is strategic management?

Answer 1

Strategic management is the process of defining the strategy or direction of an organization and making decisions on allocating resources to pursue this strategy.

Question 2

True or False: Strategic management only focuses on long-term planning.

Answer 2

False

Question 3

Name the three main components of strategic management.

Answer 3

Strategy formulation, strategy implementation, and strategy evaluation.

Question 4

Fill in the blank: The _____ is a tool used to assess an organization’s internal strengths and weaknesses, and external opportunities and threats.

Answer 4

SWOT analysis

Question 5

What does SWOT stand for?

Answer 5

Strengths, Weaknesses, Opportunities, Threats.

Question 6

Multiple Choice: Which of the following is NOT a type of competitive strategy? A) Cost Leadership B) Differentiation C) Market Penetration D) Focus

Answer 6

C) Market Penetration

Question 7

What is the purpose of a mission statement in strategic management?

Answer 7

A mission statement defines the organization’s purpose, values, and primary goals.

Question 8

True or False: A vision statement is more focused on the present than a mission statement.

Answer 8

False

Question 9

What is the primary goal of strategy implementation?

Answer 9

To translate the formulated strategy into action to achieve organizational goals.

Question 10

Fill in the blank: The _____ model is used to analyze the competitive environment of an industry.

Answer 10

Porter’s Five Forces

Question 11

What are Porter’s Five Forces?

Answer 11

1) Threat of new entrants, 2) Bargaining power of suppliers, 3) Bargaining power of buyers, 4) Threat of substitute products or services, 5) Industry rivalry.

Question 12

Multiple Choice: Which of the following is a key element of a strategic plan? A) Financial projections B) Employee satisfaction C) Customer feedback D) All of the above

Answer 12

D) All of the above

Question 13

What is the role of strategic control?

Answer 13

To monitor and evaluate the effectiveness of the strategy and make adjustments as needed.

Question 14

True or False: Strategic management is a one-time process.

Answer 14

False

Question 15

What is a competitive advantage?

Answer 15

A competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position.

Question 16

Fill in the blank: The _____ framework helps organizations evaluate their current strategy and develop new strategies.

Answer 16

Balanced Scorecard

Question 17

What is the purpose of a strategic audit?

Answer 17

To assess the effectiveness of an organization’s strategy and its alignment with the internal and external environment.

Question 18

Multiple Choice: Which of the following factors is NOT typically considered in external environment analysis? A) Economic trends B) Technological changes C) Employee turnover D) Regulatory changes

Answer 18

C) Employee turnover

Question 19

What is the difference between an objective and a goal in strategic management?

Answer 19

Objectives are specific, measurable steps to achieve a goal, which is a broader aim.

Question 20

True or False: Stakeholder analysis is an important part of strategic management.

Answer 20

True

Question 21

What is a strategic alliance?

Answer 21

A strategic alliance is a formal agreement between two or more organizations to pursue a set of agreed-upon objectives while remaining independent.

Question 22

Fill in the blank: The _____ approach to strategic management focuses on the internal capabilities of the organization.

Answer 22

Resource-Based View

Question 23

What is scenario planning?

Answer 23

Scenario planning is a strategic planning method that organizations use to make flexible long-term plans based on different future scenarios.

Question 24

Multiple Choice: Which of the following is an example of a corporate-level strategy? A) Market penetration B) Product development C) Diversification D) Cost leadership

Answer 24

C) Diversification

Question 25

What is the primary focus of operational planning?

Answer 25

To outline the specific actions and resources needed to implement the strategic plan.

Question 26

True or False: Environmental scanning is only important during the planning phase of strategic management.

Answer 26

False

Question 27

What does PESTLE analysis stand for?

Answer 27

Political, Economic, Social, Technological, Legal, Environmental.

Question 28

Fill in the blank: The _____ is a visual representation of the organization’s strategy that outlines the steps to achieve strategic objectives.

Answer 28

Strategy Map

Question 29

What is the significance of benchmarking in strategic management?

Answer 29

Benchmarking is used to compare an organization’s processes and performance metrics to industry bests or best practices from other companies.

Question 30

Multiple Choice: Which of the following is an example of a strategic performance indicator? A) Number of employees B) Revenue growth C) Office supplies expense D) Daily sales

Answer 30

B) Revenue growth

Question 31

What is the role of leadership in strategic management?

Answer 31

Leadership is crucial for guiding the organization, aligning resources, and fostering a culture that supports strategic goals.

Question 32

True or False: All organizations require a formal strategic management process.

Answer 32

False

Question 33

What is the purpose of a strategic plan?

Answer 33

To provide a roadmap for an organization to achieve its long-term objectives and allocate resources effectively.

Question 34

Fill in the blank: The _____ model helps organizations analyze their competitive advantage through value creation.

Answer 34

Value Chain

Question 35

What is the significance of corporate governance in strategic management?

Answer 35

Corporate governance ensures that the organization is run in a responsible and transparent manner, aligning the interests of stakeholders.