Strategic Management Flashcards
What is strategic management?
Strategic management is the process of defining the strategy or direction of an organization and making decisions on allocating resources to pursue this strategy.
True or False: Strategic management only focuses on long-term planning.
False
Name the three main components of strategic management.
Strategy formulation, strategy implementation, and strategy evaluation.
Fill in the blank: The _____ is a tool used to assess an organization’s internal strengths and weaknesses, and external opportunities and threats.
SWOT analysis
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats.
Multiple Choice: Which of the following is NOT a type of competitive strategy? A) Cost Leadership B) Differentiation C) Market Penetration D) Focus
C) Market Penetration
What is the purpose of a mission statement in strategic management?
A mission statement defines the organization’s purpose, values, and primary goals.
True or False: A vision statement is more focused on the present than a mission statement.
False
What is the primary goal of strategy implementation?
To translate the formulated strategy into action to achieve organizational goals.
Fill in the blank: The _____ model is used to analyze the competitive environment of an industry.
Porter’s Five Forces
What are Porter’s Five Forces?
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.
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
D) All of the above
What is the role of strategic control?
To monitor and evaluate the effectiveness of the strategy and make adjustments as needed.
True or False: Strategic management is a one-time process.
False
What is a competitive advantage?
A competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position.
Fill in the blank: The _____ framework helps organizations evaluate their current strategy and develop new strategies.
Balanced Scorecard
What is the purpose of a strategic audit?
To assess the effectiveness of an organization’s strategy and its alignment with the internal and external environment.
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
C) Employee turnover
What is the difference between an objective and a goal in strategic management?
Objectives are specific, measurable steps to achieve a goal, which is a broader aim.
True or False: Stakeholder analysis is an important part of strategic management.
True
What is a strategic alliance?
A strategic alliance is a formal agreement between two or more organizations to pursue a set of agreed-upon objectives while remaining independent.
Fill in the blank: The _____ approach to strategic management focuses on the internal capabilities of the organization.
Resource-Based View
What is scenario planning?
Scenario planning is a strategic planning method that organizations use to make flexible long-term plans based on different future scenarios.
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
C) Diversification
