MGT 487 Exam 1 Multiple Choices Questions And Verified Accurate Answers.

What is strategic management? - correct answer The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives What term is used synonymous with the strategic management? - correct answer Strategic planning A strategic plan is a company's _________________? - correct answer game plan What are the stages of strategic management? - correct answer Strategy formulation, Strategy implementation, Strategy evaluation What does strategy formulation consist of? - correct answer Developing a vision and mission Identifying organization's external opportunities and threats Determining internal strengths and weaknesses Establishing long-term objectives What are some strategy formulation decisions? - correct answer What new businesses to enter What businesses to abandon Whether to expand/merge Strategy Implementation requires __________________. - correct answer A firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. Strategy Evaluation (def) - correct answer Determining which strategies are not working well. Three fundamental activities of strategy evaluation - correct answer Reviewing internal/external factors Measuring performance Taking corrective actions Competitive Advantage (def) - correct answer Any activity a firm does especially well compared to activities done by rival firms, or any resource a firm possesses that rival firms desire. Strategists (def) - correct answer Individuals most responsible for the success or failure of an organization and help gather, analyze, and organize information Vision/Mission Statements answer what questions? - correct answer What do we want to become? What is our business? External Opportunities/Threats (def) - correct answer Economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization Internal Strengths/Weaknesses (def) - correct answer An organization's controllable activities that are performed especially well or poorly. 15. Long-term Objectives (def) - correct answer Specific results (over one year) that an organization seeks to achieve in pursuing its basic mission. Strategies (def) - correct answer Means by which long-term objectives will be achieved. Annual Objectives (def) - correct answer Short-term milestones that organizations must achieve to reach long-term objectives Policies (def) - correct answer Means which annual objectives will be achieved. Include guidelines, rules, and procedures established to support efforts to achieve stated objectives. The Strategic-Management model - correct answer Where are we now? ------- Where do we want to go? ------- How are we going to get there? Strategic management allows _________________ - correct answer an organization to be more proactive than reactive in shaping its own future Why some firms don't practice strategic planning? - correct answer No formal training, no understanding of or appreciation for the benefits of planning, no monetary rewards, too busy "firefighting" How to gain/sustain competitive advantage? - correct answer Establish a clear vision and mission --- Form strategies --- Implement strategies --- Evaluate and Monitor Results