Strategic Management

It is described as the "Long-term Market or Competitive Position"

• Sense of direction
• Sense of destiny
• Sense of discovery

Comes from the Greek word "strategos", which refers to a military general.

• STRATEGY

This does not imply that a policy should be altered always, but it should be wide in scope so as to ensure that the line managers use them in repetitive/routine scenarios.

• Reliability
• Stability
• Flexibility

The quality of the objectives can be judged on the basis of its ability to give specific direction and tangible basis for evaluating the performance.

• True
• False

It is time-based measurable actions, which help in the accomplishment of goals.

• Business Model
• Objectives
• Plan

This level concentrates on how an organization is going to grow. It defines daily actions including allocation of resources to deliver corporate andbusiness level strategies.

• FUNCTIONAL LEVEL STRATEGY

Strategy provides overall framework for guiding organizational thinking and action.

• True
• False

A self-contained division that provides a product or service for a particular market.

• Business Unit

Statement of how employees should conduct themselves and their business to help achieve the company mission.

• Good Moral
• Mission
• Values

He defines strategy as a creation of a unique and valued position involving a different activity from rivals or performs similar activities in different ways.

• Chandler
• Micheal Porter
• Glueck

__works well for firms that have a repeatable business model (eg. food outlets) that can be easily transferred into other markets.

• Franchising

It refers to factors that have the potential to harm an organization.

• Threats

A vision statement answers the question__.

• WHAT DO WE WANT TO BECOME?

Strategy must be uniform enough so that it can be efficiently followed by the subordinates.

• True
• False

The action stage of strategic management is called strategy formulation.

• True
• False

Which of the following is the third step in strategy formulation?

• Establishing Organizational Objectives
• Performance Analysis
• Forming Quantitative Goals
• Selection of Strategy

Which is an element of strategy Implementation?

• Competitive analysis and Organizational Structure
• External and Internal analysis
• Organizational systems and processes

Feedback plays a very important role in the evaluation stage, providing the strategists with insights on how the implemented strategies are faring.

• True
• False

Who are the individuals who are most responsible for the success or failure of anorganization?

• STRATEGIST

Implementing strategy means mobilizing employees and managers to put formulated strategies into action.

• True
• False

It describe what an organization excels at and what separates it from the competition.

• Strengths

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?

• STRATEGIC MANAGEMENT

It is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths.

• Porter's Five Forces

_____________________is where you buy the land, build the facility and operate the business on an ongoing basis in a foreign market.

• Turnkey Projects
• Greenfield Investment
• Joint Venture

________________ is used when a company faces significant cost pressure from international competitors but must also offer products that meet local customer needs.

• Export Strategy
• Transnational Strategy
• Standardization Strategy
• Multi-domestic Strategy

Identification of key strengths and weaknesses of the firm helps in narrowing down the choice of alternatives and choosing a strategy.

• True
• False

Which of the following is not a major attribute of strategic intent?

• Sense of Direction
• Sense of Destiny
• Sense of Awareness

Only verifiable objectives can be meaningfully used in strategic management.

• True
• False

When someone has achieved status, privilege, or self-esteem through effectively using an old system, he or she often sees a new plan as a threat.

• Self-interest
• Fear of the unknown
• Fear of failure

Particular to companies that provide services such as environmental consulting, architecture, construction and engineering.

• Turnkey Projects

In these circumstances the company should certainly consider making available resources in excess of what the product can generate.

• Try harder domain
• Leader domain
• Growth Domain

Strategy is derived from the Greek word strategos, meaning military leader or general.

• True
• False

In the Directional Policy Matrix, the horizontal axis is defined as__.

• Competitive Strength

It is the dream of the business and an inspiration, base for the planning process.

• Vision

It represents what the organization must achieve in order for it to become competitive – or to remain competitive – and ensure sustainability of thebusiness over the long term.

• STRATEGIC OBJECTIVES

Strategy is concerned with both thought and actions. While policy is concerned mostly with action.

• True
• False

It is designed to help potential shareholders and investors understand the purpose of the company.

• Mission Statement

Because of their low market share these businesses are often expected tohave a higher cost structure than industry leaders. What is this?

• DOGS

It refers to the actions that managers have to take or do in order toensure that what has been set in the objective can be achieved.

• STRATEGY

It is a tool that can be used to determine what priorities should be given in the product portfolio of a business unit.

• BGC Matrix

Goals are the end results that the organization attempts to achieve.

• True
• False

It is an objective that seeks to attain in reality.

Which is not a Pitfall in Strategic Planning?

__viewed that in developing strategy, it was essential to systematically anticipate future environmental challenges to an organization, and draw up appropriate strategic plans for responding to these

• Igor Ansoff
• challenges.

___________ is the domain that the business hopes to dominate.

• Market Place
• Target Market
• Customers

People know that power relationships are a key reality in organizational life.In many enterprises, if the top manager begins to advocate one alternative,the decision to choose it is soon unanimous.

• Managerial Awareness of past strategies
• Managerial Attitudes toward risk
• Managerial Power Relationship

This takes Strategic Intent to an all-together new level by including the employee's emotions with the organization aspirations.

• Sense of Direction
• Sense of Discovery
• Sense of Destiny

Anything that a firm does especially well compared to rival firms is referred to as?

• COMPETITIVE ADVANTAGE

Some firms do not do strategic planning because some may think that if a firm is successful, individuals may feel there is no need to plan because things are fine as they stand.

• True
• False

It is a method or plan chosen to bring about a desired future, such as achievement of a goal or a solution to a problem.

• Plan
• Techniques
• Strategy

Its four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization.

• Strategic Position and Action Evaluation Matrix

It implies the process of critically examining the factors that highly influence the business, as all the factors identified in the previous step effects the entity with the same intensity.

• Scanning

__is a particularly useful strategy in those markets where the culture, both business and social, is substantively different than your own as local partners bring local market knowledge, contacts and if

• Partnering
• chosen wisely customers.

It has vital role in businesses by indicating current and potential opportunities or threats outside the company in its external environment.

• Environmental Analysis

Policy should be__________ or else it will lead to indecisiveness and uncertainty in minds of those who look into it for guidance.

• Flexible
• Stable
• Simple

_____________customizes products or processes to the specific conditions in each country.It tailors the product selection, payment methods, and marketing to the values and regulations in each country where it operates.

• Transnational Strategy
• Standardization Strategy
• Export Strategy
• Multi-domestic Strategy

It refers to favorable external factors that could give an organization a competitive advantage.

• Opportunities

Strategy Implementation ensures the long-term survival of the firm while coping with competition and surviving the dynamic environment.

• True
• False

The mission statement answer which question?

• What is our position?
• How is our business?
• What is our business?

This promise high returns so reinvest heavily to defend market share and position.

• stars

Strategic Management serves as a foundation for all key decisions of the firm.

• True
• False

It refers to selling directly into the market you have chosen using in the first instance your own resources.

• DIRECT EXPORTING

Some organization do not engage in strategic planning because managers and employees show no support.

• True
• False

Enumerate the Porter's Five Forces. Competition in the Industry, Potential of New Entrants Into an Industry, Power of Suppliers, Power of Customers, Threat of Substitutes

• Competition in the Industry, Potential of New Entrants Into an Industry, Power of Suppliers, Power of Customers, Threat of Substitutes

Weaknesses stands for a major unfavorable situation in the firm’s environment or an impediment to the firm’s current and/or desired future position.

• True
• False

Policy must be unambiguous. It should avoid use of jargons and connotations.

• True
• False

It refers to the projected rate of sales growth for the market that a particular business caters to.

• Market growth rate

____________is used when a company treats the whole world as one market with little meaningful variation. The assumption is that one product can meet the needs of people everywhere.

• Export Strategy
• Multi-domestic Strategy
• Standardization strategy
• Transnational Strategy

The translation of the strategy into action takes place here, and it details the firm's competitive tactics and initiatives.

• BUSINESS MODEL

The quality of the objectives can be judge on the basis of its ability to give scientific direction.

• True
• False

A policy is what is, or what is not done. While a strategy is the methodology used to achieve a target as prescribed by a policy.

• True
• False

Putting Strategy into action.

• Strategy Evaluation
• Strategy formulation
• Strategy Implementation

Investment should be made to allow the product to grow with the market.

• Leader domain
• Growth domain
• Try harder domain

It is the areas in the business that needs to improve to remain competitive.

• WEAKNESSES

What are the Five (5) factors that support strategy implementation?

• People, Resources, Structure, Systems, Culture

It is the degree to which the company is able to use the same products and methods in other countries.

• Global integration

They are the end users of the products and services that the companyoffers.

• CUSTOMERS

What are the three major components in Strategic Management?

• strategy formulation, strategy implementation, strategy evaluation

It must be visible to everyone, and clearly identify how the departments, divisions, units and sections are organized, with the lines of authority and accountability clearly established.

• Shared Values
• Structure
• Systems

This addresses the management or leadership in force within the organization, from top management to the team leaders and managers in the smaller units.

• Structure
• Shared Values
• Style

This level answers the question of how you are going to compete.

• Business level strategy

This is done to estimate the degree of variation between the actual and the standard performance of an organization.

• Performance analysis
• Forming quantitative goals
• Selection of Strategy
• Question 49
• Correct
• Mark 1.00 out of 1.00
• Not flaggedNot flaggedFlag question

SWOT stands for ?

• STRENGTH, WEAKNESS, OPPORTUNITY, THREATS

People may be uncertain of their abilities to learn new skills, of their aptitude with new systems, or of their ability to take on new roles.

• Fear to failure
• Fear to the unknown
• Fear to try something new

Need very little capital expenditure but return high levels of cash income. Can be used to finance the stars.

• cash cow

Selecting strategies based on analysis of an organization's external and internal environment.

• Answer:
• STRATEGY FORMULATION

It is a strategy which focuses on reducing the costs involved in providing a product or service.

• cost leadership

Have a potential to be stars if successfully developed.

• Question mark

Strategic objectives should not be communicated to the employees to protect the important information.

• True
• False

Johnson and Scholes three ways in strategies selection.

• Selection against objectives, Referral to a higher authority, Partial Implementation

Without a perfect foresight, the firms must be ready to deal with the uncertain events which constitute the business environment.

• True
• False

It is the 1+1=3 process. Two companies agree to work together in a particular market, either geographic or product, and create a third company to undertake this.

• Buying a company
• Piggybacking
• Joint Ventures

It focuses on providing a product or service that is perceived as being unique and hard to replicate.

• differentiation strategy

________________is used when a company is primarily focused on its domestic operations. It does not intend to expand globally but does export some products to take advantage of international opportunities.

• Multi-domestic Strategy
• Standardization strategy
• Export Strategy
• Transnational Strategy

In this, some investments may be justified but major investments should be made with extreme caution.

• Proceed with care domain
• Growth domain
• Cash Generator Domain

Strategy formulation tackles the__and _________of the activities of the organization.

• what, why

Which is not an element of Strategy Formulation?

• People and leadership
• Mission and Vision
• Objectives and internal analysis

Demographic and psychographic factors are the primary indicators considered in defining the organization’s target market.

• True
• False

__is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results.

• Strategy Evaluation

Organizations need to set adequate and appropriate objective to cover all performance areas.

• True
• False

It can be defined as a group of techniques that assist strategists in making strategic decisions regarding individual products or businesses in a firm’s portfolio.

• Corporate Portfolio Analysis

Strategy Evaluation is where the organization’s mission, objectives, and strategies are defined and set.

• True
• False

It is an economic term describing the existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business.

• Barriers to entry

When companies decide to compete internationally, they should automatically use the same strategies that they used in local markets.

• True
• False

Who are the individuals who are most responsible for the success or failure of an organization?

• STRATEGIST

It is the 1+1=3 process. Two companies agree to work together in a particular market,either geographic or product, and create a third company to undertake this.

• Buying a company
• Joint Ventures
• Piggybacking

The systematic analysis of the factor associated with customers and competitors and the organization itself to provide the basis for maintaining optimum management practices.

• Strategic Management
• Scientific Management
• Systematic Management

__deals with acquisition of resources with which organizational goals can be achieved.

• Business Policy

Technological advancement can create new__ advantages that are more powerful than existing advantages.

• COMPETITIVE

What are the Steps Involved in Environmental analysis?

• Identifying, Scanning, Analyzing, Forecasting

Which is not belong in the group?

• Business management level
• Functional level
• Corporate level

It seeks to explain the business undertaken by the firm, with respect to the customer needs, target audience, and alternative technologies.

• Business Definition

Both an Art and science of formulating, implementing, and evaluating, cross-functional decisions that facilitate an organization to accomplish its objectives.

• Strategic management

A statement, that provides a perspective of the means, which will lead the organization, reach the vision in the long run.

• Strategic Intent
• Verifiability
• Management Intent

It is an involved, intricate, and complex process that takes an organization into uncharted territory.

• STRATEGIC PLANNING

It means the ratio of the business’s market share divided by the market share of the largest competitor in that market and provides a basis for comparing the relative strengths of different businesses in the portfolio.

• Relative competitive position

Set of related actions that managers take to increase their company's performance.

• STRATEGY

When someone has achieved status, privilege, or self-esteem througheffectively using an old system, he or she often sees a new plan as a threat.

• Self-interest
• Fear of the unknown
• Fear of failure

It is the framework used to evaluate a company's competitive position and todevelop strategic planning.

• SWOT analysis

According to __, strategy is organisation‘s pattern of response to its environment over a period of time to achieve its goals and mission.”

• Igor Ansoff

Creating competitive advantage through effective management of the strategy-making process.

• Strategic Planning
• Strategic Leadership
• Strategy Effectiveness

In the Directional Policy Matrix, the vertical axis is defined as__.

• Market Attractiveness

It is the framework used to evaluate a company's competitive position and to develop strategic planning.

• SWOT analysis

If you have a particularly interesting and unique product or service that you sell to large domestic firms that are currently involved in foreign markets you may want to approach them to see if your product or service can be included in their inventory for international markets.

• Joint Venture
• Piggybacking
• Buying a company

Which is in a proper order?

• Corporate level, Business level, Functional level
• Functional level, Business level, Corporate level
• Corporate level, Functional level, Business level

Employees without__ are worthless resources to the organization.

• Skills

It is the methodical evaluation of the key internal features of an organization and recognizes and assesses resources, capabilities, and core competencies.

• internal analysis

It is an analytical process of selection of the best suitable course ofaction to meet the organizational objectives and vision.

• Strategy Formulation

When an organization assumes success, it often fails to rewardsuccess. When failure occurs, then the firm may punish.

• POOR REWARD STRUCTURE

Igor Chandler is the Father of Strategic Management.

• True
• False

It refers to the actions that managers have to take or do in order to ensure that what has been set in the objective can be achieved.

• STRATEGY

Strategy provides some framework for guiding organizational thinkingand action.

• True
• False

It states that Strategic Intent is differentiated because here in this case the employees are allied and they are convinced about the concept of Strategic Intent.

• Sense of discovery
• Sense of direction
• Sense of destiny

Short-term milestones that organizations must achieve to reach long-term objectives.

• ANNUAL OBJECTIVES

It states that, there should be a clear indication and guide on how the main activities or operations of the business are carried out.

• Shared Value
• Systems
• Structure

This level outlines what you want to achieve: growth, stability, acquisition or retrenchment. It focuses on what business you are going to enter the market.

• CORPORATE LEVEL STRATEGY

Strategy deals with long term developments rather than short-term operations.

• True
• False

Strategy provides some framework for guiding organizational thinking and action.

• True
• False