Topics: Strategic management, Management, Organization Pages: 16 (2990 words) Published: January 21, 2013
Chapter 8 Strategic Management

1) Strategic management is the set of managerial decisions and actions that determines the short-term performance of an organization.

2) "Strategic model" is a term that is often used in conjunction with strategic management and strategies.

3) The most fundamental questions about strategy address why firms, facing the same environmental conditions, have varying levels of performance.

4) The first step in the strategic management process is analyzing the external environment.

5) Within an industry, an environment can present opportunities to one organization and pose threats to another.

6) Evaluating an organization's intangible assets is part of doing an internal analysis in the strategic management process.

7) Activities that an organization does well or resources that it has available are called capabilities.

8) Exceptional or unique organizational resources are known as core capabilities.

9) A strong organizational culture may act as a significant barrier to accepting any changes in organizational strategies.

10) SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

11) The final step in the strategic management process is implementing the objectives.

12) Corporate-level strategies are developed for organizations that run more than one type of business.

13) One method of implementing a growth strategy is to increase production capacity.

14) A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

15) Diversification is an example of a corporate retrenchment strategy.

16) If Burger King were to buy out Mom and Pop's Burgers, Burger King would be growing by vertical consolidation.

17) A stability strategy is developed when management decides it will remain profitable by maintaining the status quo in a rapidly changing external environment.

18) A retrenchment strategy is a renewal strategy designed to address organizational weaknesses that are leading to performance declines.

19) Turnaround is one type of renewal strategy.

20) The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which drain organizational resources.

21) Stars, one of the four business groups in the corporate portfolio mix, are characterized by low growth and low market share.

22) Managers in all kinds of organizations face increasingly intense global competition and high performance expectations by investors and customers.

23) When managers "manage strategically" by following the strategic management process, the chosen strategies will always lead to positive outcomes.

24) The key for managers is responding quickly when it is obvious that the strategy isn't working.

25) Since information technology is so readily accessible, it cannot contribute to sustainable competitive advantage.

26) An important innovation strategy involves communication.

27) What are the decisions and actions that determine long-run performance of an organization? A) strategies
B) missions
C) goals
D) opportunities

28) ________ is the collection of managerial decisions and actions that determine the long-run performance of an organization. A) Planning
B) Goal-oriented management
C) Strategic management
D) Leadership

29) What is a strategic design for how a company intends to profit from its strategies, work processes, and work activities? A) business model
B) strategic model
C) strategic management model
D) competitive model

30) Studies of the factors that contribute to organizational performance have shown ________ relationship between strategic planning and performance. A) no
B) a mixed
C) a negative
D) a positive

31) Why is strategic management important?
A) It has little impact on organizational performance.
B) It is involved in many of the decisions that managers make. C) Most organizations do...
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