Chapter 1 What is strategy and who is involved?
Quiz
Strategic management includes the following:
- establishment of strategic direction.
- analysis of the internal environment.
- strategic restructuring.
- all of the above.
The strategy context is the:
- external environment of the industry.
- set of circumstances under which both the strategy process and strategy content are determined.
- combination of needs expressed by stakeholder, shareholders and customers.
- economic environment of the country in which an organization operates.
Strategic thinking is an activity that involves:
- shareholders shaping the way strategic leaders create strategy.
- assessing the internal strengths of an organization.
- pursuing a competitive advantage within an industry.
- managers considering how they should organize their thinking to achieve a successful strategic reasoning process.
Strategic formation involves:
- managers organizing their strategizing activities to achieve a successful strategy formation process.
- structuring the organization to ensure it supports the strategy.
- aligning the strategic control measures to monitor implementation.
- gaining the support of stakeholders and shareholders for the proposed strategy.
Strategic change, a necessary aspect of strategy, requires managers to:
- communicate with suppliers to ensure smooth relationships.
- organize changes to achieve a successful strategic renewal process.
- listen to the needs of customers.
- control processes through monitoring and measurement initiatives.
Which of the following is not a major activity of the strategic management process?
- Analysis of the internal and external environments.
- Establishment of strategic direction.
- Formulation of strategies.
- Production scheduling.
A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.
- Strategic competitiveness
- A permanently sustainable competitive advantage
- Substantial returns
- Legal and ethical core values
A competitive advantage:
- can be permanent if the firm has successfully implemented the strategic management process.
- entails reducing investors’ risk to near zero.
- can be identified only if it has been unsuccessfully challenged by competitors.
- exists when competing firms are unable to find investors.