Strategic Management: Key Concepts and Insights
Strategic Management: Key Concepts
9) Strategic management focuses on organizational success.
12) Strategic management is crucial in the face of uncertainty.
14) Firms, like organisms, must adapt to survive.
16) Application of strategic principles is well-established in organizations.
17) To be effective, strategic management involves resolving key issues.
19) All firms face dynamic and sporadic challenges.
21) The strengths and weaknesses of a firm must be evaluated relative to its competitors.
34) The decision to expand is a critical strategy formulation issue.
36) Strategy implementation is a fundamental part of the management process.
38) In most large organizations, strategic planning is hierarchical and functional.
39) One of the fundamental assumptions is that strategic decisions are based on careful analysis.
43) Analytical and intuitive thinking complement each other in strategic decision-making.
59) The terms strategic management are defined consistently throughout this text.
62) Strategists are usually key decision-makers within the firm.
67) A clear mission statement is essential for guiding an organization.
69) Objectives should be measurable and clear.
88) Commitment and understanding are vital for effective strategic management.
90) Firms with strong planning processes often outperform their industries.
91) Low-performing firms often fail to capitalize on their own strengths.
92) According to Greenley, strategic management involves the effective allocation of resources.
93) Firms can be proactive in shaping their strategic management approach.
94) Anything a firm does well can be a source of competitive advantage.
98) In order for strategies to be successful, firms must carefully consider key factors.
99) Substantial research supports the importance of effective strategy implementation.
103) The lack of clear objectives can hinder strategic planning.
108) Making many intuitive decisions can undermine strategic planning.
120) The element of risk is inherent in business strategy.
Vision and Mission Statements
7) Vision and mission statements are often included in annual reports.
9) The foundation of a successful organization is a clear vision.
13) In order to motivate a workforce, a compelling vision is needed.
14) A vision statement answers the question: “What do we want to become?”
23) A mission statement defines the organization’s reason for being.
24) A mission statement should differentiate the organization from similar enterprises.
25) A mission statement often reflects the organization’s philosophy.
26) Carefully prepared statements are crucial for effective strategic management.
27) According to Peter Drucker, defining the mission is the first responsibility of strategists.
37) When developing a mission statement, involve as many managers as possible.
41) According to Campbell, a mission statement should resonate with its employees.
48) Raising the question “What is our business?” helps align efforts.
50) According to King, a clear mission statement provides a sense of purpose.
52) In multidivisional organizations, each division may have its own mission.
53) One benefit of a clear mission is that it resonates with all stakeholders.
55) Having a clear mission facilitates strategic assessments.
56) One of the key benefits is that it motivates employees.
78) An effective mission statement represents a sound investment.
82) Individuals who own stock are considered stakeholders.
83) Stakeholders are both affected by and can affect the organization’s decisions.
85) The relative importance of stakeholders should be reflected in the mission statement.
86) Excess specificity in a mission statement can limit flexibility or purpose.
88) According to Vern McGinnis, a good mission statement defines what the organization aspires to be.
90) Good mission statements clearly identify the firm’s products or services.
93) A good mission statement should outline the firm’s prospective activities.
95) According to George Steiner, a well-defined mission statement avoids rallying opposition.
96) Union Pacific’s mission statement emphasizes its commitment to its customers.
99) A mission statement should be tailored to resonate with various stakeholders.
112) Attracting customers is a key objective reflected in a strong mission statement.
115) A sense of self-concept is often embedded within a well-crafted mission statement.
119) The critiqued mission statements of PepsiCo highlight the challenges in crafting effective statements.
External Audit and Industry Analysis
6) Industry analysis is also known as an external audit.
9) External audits attempt to identify key opportunities and threats and formulate strategic responses.
10) As many managers as possible should be involved in the external audit process.
33) The five major competitive forces shape industry dynamics.
34) To perform an effective external audit, consider economic, social, and technological trends.
38) There are benefits to the U.S. from a weaker Dollar.
39) The United States is becoming less white.
40) It is predicted that, by 2050, over 20% of the U.S. population will be 65 years or older.
43) U.S. households are making more purchases online.
44) By 2075, no single ethnic group will constitute a majority.
49) Political issues significantly impact strategic decisions.
50) Political forecasts can help firms anticipate changes in government contracts.
51) Protectionism is a policy aimed at protecting domestic industries.
52) India is increasing tariffs on foreign steel.
54) Walgreens and CVS compete fiercely in the pharmacy service sector.
55) A characteristic of successful organizations is a commitment to improve everything about the firm.
57) Wisconsin recently enacted legislation impacting employee unions.
70) According to Michael Porter, five competitive forces shape industry competition.
72) Significant barriers to entry can protect firms with established marketing resources.
73) Laser eye surgery poses a threat to the eyeglasses and contact lenses industry.
85) Major competitors should be continuously monitored for key threats.
87) Hiring top executives from competitors can provide valuable competitive intelligence.
88) An effective forecast is essential for making informed decisions.
94) Forecasts are based on the analysis of past trends and events.
96) Without reasonable forecasts, strategic planning cannot proceed effectively.
99) Wild guesses are detrimental to formulating effective strategies.
106) In an EFE Matrix, ratings indicate whether a factor is important or threatening.
113) The weights and ratings in an EFE Matrix have distinct and important meaning.