Multiple Choice (Strategic Managment)
SECTION -1
BASIC CONCEPTS OF STRATEGIC MANAGEMENT
SUMMARY OF KEY POINTS
• Strategic management starts with three key questions: (1) Where is the organization now? (2) If no changes are made, where will the organization be in a few years? (3) If the answers are not acceptable, what specific actions should management undertake?
• Strategic management is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control.
• Strategic management in many organizations tends to evolve in four phases from basic financial planning to forecast-based planning, to what people refer to as strategic planning (strategy formulation only), and finally to full-blown strategic management (including implementation and evaluation and control).
• Research reveals that companies engaging in strategic management tend to outperform those organizations which do not.
• Strategy formulation is typically not a regular, continuous process but is often initiated by triggering events, such as a new CEO or a performance gap.
• The strategic management model proceeds from environmental scanning to strategy formulation (including establishing mission, objectives, strategies, and policies) to strategy implantation (including developing programs, budgets, and procedures) to evaluation and control. This model is made action-oriented through the strategic decision making process depicted in Figure 1.3..
• A large corporation tends to have three levels of strategy (corporate, business, and functional) which form a hierarchy of strategy.
• Strategic decisions are rare, consequential, and directive.
• Top managers tend to use one of three modes of strategy formulation: entrepreneurial, adaptive, planning, or logical incrementalism.
SUGGESTED ANSWERS TO DISCUSSION
BASIC CONCEPTS OF STRATEGIC MANAGEMENT
SUMMARY OF KEY POINTS
• Strategic management starts with three key questions: (1) Where is the organization now? (2) If no changes are made, where will the organization be in a few years? (3) If the answers are not acceptable, what specific actions should management undertake?
• Strategic management is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control.
• Strategic management in many organizations tends to evolve in four phases from basic financial planning to forecast-based planning, to what people refer to as strategic planning (strategy formulation only), and finally to full-blown strategic management (including implementation and evaluation and control).
• Research reveals that companies engaging in strategic management tend to outperform those organizations which do not.
• Strategy formulation is typically not a regular, continuous process but is often initiated by triggering events, such as a new CEO or a performance gap.
• The strategic management model proceeds from environmental scanning to strategy formulation (including establishing mission, objectives, strategies, and policies) to strategy implantation (including developing programs, budgets, and procedures) to evaluation and control. This model is made action-oriented through the strategic decision making process depicted in Figure 1.3..
• A large corporation tends to have three levels of strategy (corporate, business, and functional) which form a hierarchy of strategy.
• Strategic decisions are rare, consequential, and directive.
• Top managers tend to use one of three modes of strategy formulation: entrepreneurial, adaptive, planning, or logical incrementalism.
SUGGESTED ANSWERS TO DISCUSSION