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Functional-level strategies are primarily concerned with how to acquire and manage organizational resources.
Functional-level strategies are primarily concerned with how to acquire and manage organizational resources.
True
At the corporate level, strategy involves questions about the firm's operational efficiencies.
At the corporate level, strategy involves questions about the firm's operational efficiencies.
False
Strategic Business Units (SBUs) are defined by the distinct products and services they offer within a corporation.
Strategic Business Units (SBUs) are defined by the distinct products and services they offer within a corporation.
True
Constant innovation is not a concern at the functional level according to strategic discussions.
Constant innovation is not a concern at the functional level according to strategic discussions.
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A firm focusing on cost leadership and broad differentiation operates at the functional level.
A firm focusing on cost leadership and broad differentiation operates at the functional level.
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Business intelligence involves the analysis of information on competitors and social trends.
Business intelligence involves the analysis of information on competitors and social trends.
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Emergent strategies are typically planned responses to expected opportunities.
Emergent strategies are typically planned responses to expected opportunities.
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Deliberate strategies are appropriate in environments characterized by high levels of unpredictability.
Deliberate strategies are appropriate in environments characterized by high levels of unpredictability.
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The three major levels of strategy are corporate, tactical, and operational.
The three major levels of strategy are corporate, tactical, and operational.
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An important role of corporate-level strategy is selecting the areas in which a company will compete.
An important role of corporate-level strategy is selecting the areas in which a company will compete.
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Functional strategy pertains to how businesses should compete in selected areas.
Functional strategy pertains to how businesses should compete in selected areas.
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The external stakeholders of a company include only customers and suppliers.
The external stakeholders of a company include only customers and suppliers.
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Deliberate strategy involves generating ideas, converting them to a plan, and acting on that plan.
Deliberate strategy involves generating ideas, converting them to a plan, and acting on that plan.
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An organization can significantly influence all the forces in its broad environment.
An organization can significantly influence all the forces in its broad environment.
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Emergent strategies cannot adapt to changing conditions in a competitive environment.
Emergent strategies cannot adapt to changing conditions in a competitive environment.
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Strategic surveillance involves collecting information only from the internal environment.
Strategic surveillance involves collecting information only from the internal environment.
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The broad environmental context includes sociocultural, economic, technological, political, and legal influences.
The broad environmental context includes sociocultural, economic, technological, political, and legal influences.
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Patents are considered a part of a firm's organizational resources.
Patents are considered a part of a firm's organizational resources.
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Local communities and activist groups are types of external stakeholders.
Local communities and activist groups are types of external stakeholders.
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Collecting information through strategic surveillance is unrelated to business intelligence.
Collecting information through strategic surveillance is unrelated to business intelligence.
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The reputation of a firm is not considered a resource in the context of organization.
The reputation of a firm is not considered a resource in the context of organization.
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A strategic thinker is opportunistic and long-term oriented.
A strategic thinker is opportunistic and long-term oriented.
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A comprehensive master plan does not clarify how a corporation will achieve its mission.
A comprehensive master plan does not clarify how a corporation will achieve its mission.
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The strategic management process begins with a situation analysis of external stakeholders only.
The strategic management process begins with a situation analysis of external stakeholders only.
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Financial resources refer to unique skills of employees and managers.
Financial resources refer to unique skills of employees and managers.
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Strategy implementation involves managing relationships with stakeholders.
Strategy implementation involves managing relationships with stakeholders.
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Opportunistic thinking is not considered a characteristic of strategic thinking.
Opportunistic thinking is not considered a characteristic of strategic thinking.
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Organizational knowledge and learning are included in an organization's internal environment.
Organizational knowledge and learning are included in an organization's internal environment.
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Establishing strategic direction is reflected primarily in organizational competitors.
Establishing strategic direction is reflected primarily in organizational competitors.
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Study Notes
Characteristics of Strategic Thinking
- A strategic thinker possesses six key characteristics: intent-focused, comprehensive, opportunistic, long-term oriented, built on the past and present, and hypothesis-driven.
- Intent-focused: Strategic intent is a managerial vision of the firm's future direction and aspirations.
- Comprehensive: A strategic thinker views the firm as part of a broader system of value creation, understanding linkages between the firm and other parts of the system.
- Opportunistic: Seizing unanticipated opportunities is crucial for success.
- Long-term oriented: Strategic thinking goes beyond the immediate, considering the firm's future over several years.
- Built on the past and present: Learning from past experiences and building on current realities are essential for informed decision-making.
- Hypothesis-driven: Strategic thinking involves evaluating creative ideas critically, taking risks, and learning from both successes and failures.
The Concept of Strategy
- Strategy is a process where an organization assesses future prospects to achieve objectives.
- It’s also defining a company's goals and objectives, and developing the best methods to achieve them.
The Strategic Management Process
- The strategic management process begins with a situation analysis encompassing both the external and internal environments and internal/external stakeholders.
- It includes establishing strategic direction (mission statements and organizational visions).
- Specific strategies are then formulated
- Strategy implementation is a crucial final step including processes, resources and structure design.
The Strategic Management Process (Internal Environment)
- An organization's internal environment comprises a bundle of resources categorized as:
- Financial resources (monetary resources)
- Physical resources (land, buildings, equipment, raw materials etc)
- Human resources (skills, experience, training of employees)
- Organizational knowledge and learning
- General organizational resources (reputation, brand name, patents, contracts, relationships)
Situation Analysis
- The external environment encompasses groups, individuals, and forces outside the organization that significantly influence it.
- External stakeholders include competitors, customers, suppliers, financial intermediaries, local communities, unions, activist groups, and government agencies
- The broad environment consists of sociocultural, economic, technological, political, and legal influences.
The Broad Environment
- Includes sociocultural, economic, technological, political, and legal/regulatory influences, both domestically and internationally, which significantly impact an organization.
- Environmental forces, although independent, can profoundly impact the organization.
The Sociocultural Context
- The context encompasses social and cultural factors that can affect an organization.
- Examples include government roles in healthcare, crime rates, security measures, and global issues like war or global warming.
The Economic Context
- Economic forces like economic growth, interest rates, inflation, exchange rates and trade deficits influence businesses and are variables that should be monitored. Strategic surveillance identifies and analyses information from diverse environments to understand overall market forces.
Patterns of Strategy
- Realized strategy is based on the interaction between deliberate and emergent strategies.
- Deliberate Strategy: a pre-planned, intentional approach to competition designed to meet the identified target markets.
- Emergent Strategy: A flexible process emerging in response to unanticipated events or circumstances that were not included or considered in the strategic planning.
Levels of Strategy
- Strategy is categorized into corporate, business, and functional levels.
- Corporate level strategy defines the domain-activities and market scope of a firm.
- Business level strategy involves gaining a competitive advantage in a specific market sector.
- Functional strategy focuses on achieving specific goals within functional areas such as marketing, finance, operations, and research.
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Description
This quiz explores the six key characteristics of strategic thinking: intent-focused, comprehensive, opportunistic, long-term oriented, built on the past and present, and hypothesis-driven. Understanding these traits can enhance one's capacity for strategic management in a business context.
