Strategic Management

Topics: Strategic management, Strategic planning, Management Pages: 31 (5113 words) Published: October 25, 2011

The Nature of Strategic Management



1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.

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2. Although the Internet has increased in popularity, it has actually led to increases in company expenses.

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3. Consumer e-commerce is five times greater than business-to-business e-commerce.

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What Is Strategic Management?

4. Optimizing for tomorrow the trends of today is the purpose of strategic management.

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5. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

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Resource allocation is included in strategy-formulation activities.

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6. The terms strategic management and strategy implementation are synonymous.

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7. A vision statement is, in essence, a company’s game plan.

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8. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice.

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9. The final stage in strategic management is strategy implementation.

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10. Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional.

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11. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies.

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12. An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.

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13. Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

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14. Analytical and intuitive thinking should complement each other.

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15. According to Albert Einstein, “Knowledge is far more important than intuition.”

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16. Management by intuition can be defined as operating from the “I’ve-already-made-up-my-mind-don’t-bother- me-with-the-facts mode.”

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17. By monitoring external events, companies should be able to identify when change is required.

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Key Terms in Strategic Management

18. Anything the firm does especially well compared to rival firms could be considered a competitive advantage.

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19. Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage for an extended period of time.

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20. Newspaper companies in the United States provide a good example of how a company can sustain a competitive advantage over the long term.

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21. In order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in external trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors.

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22. Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm.

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23. The middle manager is the most visible and critical strategic manager.

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24. All strategists have similar attitudes, values, ethics and concerns for social responsibility.

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25. A vision statement answers the question, “What is our business?,” whereas a mission...
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