How can the firm generate more value for investors? According to David, strategic planning is sometimes confused with strategy formulation, because strategic plan is constructed in this stage. Above are the reasons why small and medium enterprises are usually reluctant to have their own strategic departments.
He developed a grid that compared strategies for market penetration, product development, market development and horizontal and vertical integration and diversification.
In essence, it answers the following 3 questions: The combination of all 4 definitions used previously gives us a Strategic management and answer choices clearer view of what the subject is: How it will get there?
Better communication between managers of the different levels and functional areas. If you created a product that worked well and was durable, it was assumed you would have no difficulty profiting. These "3 Cs" were illuminated by much more robust empirical analysis at ever-more granular levels of detail, as industries and organizations were disaggregated into business units, activities, processes, and individuals in a search for sources of competitive advantage.
It has been empirically confirmed by some firms at various points in their history. There is more focus on means resource mobilization to address the environment rather than ends goals.
The strategist "deals with" the environment but it is not the central concern. What is the geographic scope of the business? This was called the production orientation. What differentiates the company from its competitors in the eyes of customers and other stakeholders? Experience curve The experience curve was developed by the Boston Consulting Group in What are we passionate about?
Companies continued to diversify as conglomerates until the s, when deregulation and a less restrictive anti-trust environment led to the view that a portfolio of operating divisions in different industries was worth more as many independent companies, leading to the breakup of many conglomerates.
Where are the customers and how do they buy? What are the important opportunities and risks for the organization? Identifies the suitable strategies to achieve the goals. Analysiswas followed by G. Where does it want to go? The costs of engaging in it are huge. The growth-share matrix, a part of B.
Ability of the combined corporation to leverage centralized functions, such as sales, finance, etc. Andrews helped popularize the framework via a conference and it remains commonly used in practice. Jim Collins wrote in that the strategic frame of reference is expanded by focusing on why a company exists rather than what it makes.
Kiechel wrote in Strategic planning allows the organization to become more proactive than reactive. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses; Affects the entire organization by providing direction; Involves both strategy formulation processes and also implementation of the content of the strategy; May be planned intended and unplanned emergent ; Is done at several levels: The prevailing concept in strategy up to the s was to create a product of high technical quality.
Competitive advantage InPorter defined the two types of competitive advantage an organization can achieve relative to its rivals: It is not guaranteed that companies will ever achieve competitive advantage conducting strategic planning but it is an essential process if the company wants sustain it.
He says it concisely, " structure follows strategy. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources.D) Strategic management enables managers to evaluate the organization's internal and external situation and decide future actions to take.
E) All of the answer choices are correct. Answer: E. Strategic management is a continuous process of strategic analysis, strategy creation, implementation and monitoring, used by organizations with the purpose to achieve and maintain a competitive advantage. Strategic Planning, Strategic Management, and Strategy Execution basics.
Ward () defines it as, “strategic management is an integrated management approach that draws together all the individual elements involved in planning, implementing and controlling business strategy” For management accounting must help. Strategic Management and Answer Choices More about Questions and Answers on Strategic Management.
Strategic Management Important Questions Words | 7 Pages; Human Resource Management: Questions and Answers Words | 20 Pages; Question and Answers on Knowledge Management. Strategic Management and Answer Choices. Case Assignment MGT Strategic Management October 4, Strategic Choices Executive Summary Business planning refers to a procedure through which both small and large companies determine actions that lead to the growth of revenue and increase the profits.Download