What are the primary aspects of the strategic management process? (Note: You may reference specific chapters from the text in formulating your response.)
What will be an ideal response?
This is a roadmap question for the entire strategic management course. Students will likely have a far greater understanding of the big picture after having gone through the entire course.?The strategic management process consists of three primary processes: analysis (Chapters 2 and 3), strategy formulation (Chapters 4-9) and implementation (Chapters 10-13).?Analysis. Analysis involves the development of an understanding of the external environment (Chapter 2) and internal organization (Chapter 3). These analyses are completed to identify marketplace opportunities and threats in the external environment and to decide how to use the resources, capabilities, core competencies, and competitive advantage in the firm's internal organization to pursue opportunities and overcome threats.?Formulation. With knowledge about its external environment and internal organization, the firm forms its vision and mission (Chapter 1) and makes decisions as to what strategies to utilize to provide returns to shareholders. These decisions involve the selection of business-level strategies (Chapter 4), which are the actions a firm takes to exploit its competitive advantage over rivals, and its corporate-level strategy (Chapter 6), which is concerned with determining the businesses in which the company intends to compete as well as how to manage its different businesses. The ability to utilize a strategy will be impacted by competing firms. This is described as the dynamics of competition (Chapter 5). Formulation involves the selection of mechanisms such as acquiring other businesses and restructuring the firm's portfolio of businesses (Chapter 7), selecting an international strategy (Chapter 8), and the use of cooperative strategies (Chapter 9), wherein firms form a partnership to share their resources and capabilities in order to develop a competitive advantage.?Implementation. Implementation is putting the formulated plan into action. Implementation is facilitated by different mechanisms used to govern firms (Chapter 10), the use of appropriate organizational structure and mechanisms to control the firm's operations (Chapter 11), the patterns of strategic leadership appropriate for the firm's strategy and competitive environments (Chapter 12), and the use of strategic entrepreneurship (Chapter 13) as a path to continuous innovation.?The objective of all of these activities is to manage the firm in a manner that produces above-average rates of return.
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Disintermediation is
A. allowing orders to be placed via the Internet but delivered traditionally. B. separating markets, sometimes based on segmentation. C. a way to avoid higher taxes through transfer pricing. D. the unraveling of traditional distribution structures.
Encouraging entrepreneurial activity that focuses on whether our country has supportive rules and regulations would be referred to as operating at what level?
What will be an ideal response?
Lap Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 80,000 units, 100% complete with respect to materials and 25% complete with respect to conversion costs. The total dollar value of this inventory was $226,000. During the month, 150,000 units were transferred out of the department. The costs per equivalent unit for the month were $2.00 for materials and $3.50 for conversion costs. The cost of the units completed and transferred out of the department was:
A. $765,000 B. $821,000 C. $681,000 D. $825,000
Spartan Furniture wants to identify its sales and production goals and the costs required to meet those goals. Which type of budget does it need?
A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget