Chapter1 - Strategic Management Overview
This is the main goal of strategic management.
To achieve and maintain a competitive advantage.
The vision statement should answer this question.
What do we want to become?
Collecting and evaluating information on competitors is essential for a successful _____?
Strategy formulation.
A firm's strengths that cannot be easily matched or imitated by competitors are called?
Distinctive competencies.
This is a good strategy to use when the number of suppliers is small and the number of competitors is large?
Backward integration.
In which phase of strategic management are long-term objectives especially important?
Formulation Stage
The mission statement should answer this question.
What is our business?
External audits attempt to identify key variables that offer ________ responses?
Actionable.
The three all-encompassing internal resource categories used in the resource-based view are physical resources, human resources, and _____?
Organizational resources.
Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?
Market Penetration.
This is defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?
Strategic Management
What is the frequency an effective and carefully planned mission statement should be changed and revised?
Infrequent major changes, but are always subject to revision.
The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.
More important than.
A resource is valuable if it is rare, hard to imitate, or ____?
Not easily substitutable.
When a domestic company first begins to export to India, it is an example of what kind of strategy?
Market Development.
What step in the strategic management process involves mobilizing employees and managers to put strategies into action?
Strategic Implementation Stage
Who should be involved in the process of developing a mission statement?
As many managers as possible.
What is the first step in designing an External Factor Evaluation (EFE) Matrix?
Identifying key external factors.
Life-directing attitudes that serve as behavioral guidelines are called?
Values
A pasta manufacturer's purchase of some pet food brands is an example of what type of strategy?
Unrelated Diversification.
Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.
Strategic management; Strategic planning
The general public is especially interested in ________, whereas stockholders are more interested in ________.
Social responsibility; Profitability
One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that?
CPM includes both internal and external issues.
What is the essential bridge between the present and the future that increases the likelihood of achieving desired results?
Planning.
Which term refers to selling a division or part of an organization?
Divestiture