Describe the strategic management process. Explain what the "feedback loop" is and why it is important.
What will be an ideal response?
The strategic management process involves five steps:
1. Establish the mission and vision.
2. Establish the grand strategy.
3. Formulate the strategic plans.
4. Carry out the strategic plans.
5. Maintain strategic control.
The feedback loop comes out of strategic control. Through control, managers monitor progress and take corrective action early and rapidly when things go awry, returning to earlier steps to fix problems.
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A) facilitate collaboration with external business partners B) save the company money C) increase traffic to the company's Web site D) replace the use of professional networking sites E) improve internal communications among employees
Once a new product or service passes the business analysis phase, it moves into what phase?
A) concept development B) technical development C) market testing D) strategy development E) product proposal
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A) Write-ups in inventory value are more uncertain than write-downs. B) The most prudent approach to preparing financial statements involves avoidance of pessimistic projections regarding the company's future prospects. C) Writing up inventory to market value would be inconsistent with the conservatism principle. D) Write-ups in inventory value are inconsistent with the matching principle.
Which type of budget, static or flexible, should be used by managers for control activities? Explain your answer