Strategic Decision-Making Processes
48 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is one major advantage of adopting a rational strategic decision-making process?

  • It allows for spontaneous decision-making.
  • It decreases the involvement of lower-level managers.
  • It limits the availability of data during the process.
  • It ensures a systematic analysis of the decisions. (correct)

    • Which aspect can hinder the effectiveness of a rational strategic decision-making process?

  • Proactive management involvement.
  • Extensive data collection on alternatives.
  • A clear understanding of organizational goals.
  • The presence of uncertainty and complexity. (correct)

    • How does a rational decision-making process enhance organizational communication?

  • It discourages feedback from lower-level managers.
  • It provides clarity on organizational expectations. (correct)
  • It emphasizes emotional responses to strategic choices.
  • It reduces the number of people involved in strategy formulation.

    • What characteristic defines the holistic approach in strategic decision-making?

    <p>Integrating economic and organizational factors in a balanced manner.</p> Signup and view all the answers

    What is a potential outcome for firms not pursuing a rational decision-making process?

    <p>They may struggle with achieving better results.</p> Signup and view all the answers

    What does the assumption of a rational process imply about alternative considerations?

    <p>A reasonable number of alternatives should be assessed.</p> Signup and view all the answers

    What role do objective criteria play in the strategic decision-making process?

    <p>They provide a foundation for assessing alternatives.</p> Signup and view all the answers

    What is a key expectation for firms that follow a rational strategic process?

    <p>They are expected to achieve better results.</p> Signup and view all the answers

    What characterizes an emergent strategy in a firm?

    <p>It arises from responses to immediate problems without a deliberate plan.</p> Signup and view all the answers

    In the context of strategic management processes, which factor is critical for understanding the need for both deliberate and emergent strategies?

    <p>The integration of economic-rational and organizational aspects.</p> Signup and view all the answers

    Why is a deliberate strategy preferred in certain situations?

    <p>It mitigates risks when the cost of failure is high.</p> Signup and view all the answers

    What does the emergent model of strategy focus on?

    <p>Non-deliberate aspects and organizational problems during implementation.</p> Signup and view all the answers

    What dual focus is essential for formulating a holistic approach in strategic management?

    <p>Deliberate strategies and emergent strategies.</p> Signup and view all the answers

    What is a challenge posed by the presence of different stakeholders in a firm?

    <p>It generates potential conflicts in objectives.</p> Signup and view all the answers

    How does a balanced approach between economic-rational aspects and organizational aspects contribute to a strategy's success?

    <p>It allows for both flexible and structured approaches to strategy.</p> Signup and view all the answers

    What is the primary goal originally associated with Google searches?

    <p>To minimize the amount of time spent searching</p> Signup and view all the answers

    What do strategic objectives represent in an organization?

    <p>High-level and measurable goals with deadlines</p> Signup and view all the answers

    What is likely a result of an organization relying solely on deliberate strategies?

    <p>Limited responses to unexpected challenges.</p> Signup and view all the answers

    Which of the following is not a characteristic of an effective vision?

    <p>Becomes obsolete over time</p> Signup and view all the answers

    How should a well-designed vision influence individuals within an organization?

    <p>It should guide their alternatives in daily activities</p> Signup and view all the answers

    Which of the following statements about values in an organization is true?

    <p>They serve as fundamental beliefs guiding team efforts</p> Signup and view all the answers

    What role does a leader play in relation to an organization's vision?

    <p>They are responsible for defining the vision</p> Signup and view all the answers

    What is the significance of defining a firm's strategic purpose?

    <p>It highlights the path the organization should follow</p> Signup and view all the answers

    In what way is the responsibility for achieving the vision characterized?

    <p>It requires a collaborative effort from all members</p> Signup and view all the answers

    What is the primary purpose of forming relational strategies during the strategy formulation phase?

    <p>To establish safer business environments</p> Signup and view all the answers

    What is the primary purpose of breaking down a vision into strategic objectives?

    <p>To operationalize the vision and provide direction</p> Signup and view all the answers

    Which of the following areas is critical during the implementation phase of strategies?

    <p>Organizational culture</p> Signup and view all the answers

    In evaluating strategies, what must be analyzed regarding stakeholder groups?

    <p>Consequences, potential conflicts, and resolution needs</p> Signup and view all the answers

    Which component is NOT part of well-defined strategic objectives?

    <p>A vague description of goals</p> Signup and view all the answers

    What is the characteristic feature of a firm's vision?

    <p>It defines long-term aspirations for the firm</p> Signup and view all the answers

    What does the 'S' in SMART goals stand for?

    <p>Specific</p> Signup and view all the answers

    Which aspect has gained importance in the strategy's success due to increased focus on organizational dynamics?

    <p>Cognitive and emotional relationships among individuals</p> Signup and view all the answers

    Which of the following best describes a measurable attribute of a strategic objective?

    <p>Growth in the firm’s degree of internationalization</p> Signup and view all the answers

    What role do strategic objectives play in an organization?

    <p>They serve as a stimulus for future challenges</p> Signup and view all the answers

    What does a firm's mission primarily represent?

    <p>The management's vision for future development of the company</p> Signup and view all the answers

    What organizational element is vital for addressing key problems during the strategy's implementation?

    <p>Leadership roles and organizational structure</p> Signup and view all the answers

    Which of the following best defines the 'Timely' aspect of SMART goals?

    <p>The goal has a specific timeline for milestones</p> Signup and view all the answers

    What component forms a yardstick for measuring the success of a strategic objective?

    <p>Percentage of foreign sales over total</p> Signup and view all the answers

    Which of the following statements is true regarding changing a CEO's impact on firm strategy?

    <p>Leadership changes do not necessitate mission and vision changes</p> Signup and view all the answers

    What is the significance of setting targets within strategic objectives?

    <p>They act as motivational checkpoints for progress</p> Signup and view all the answers

    What is typically included in 'payment in kind' as a form of remuneration?

    <p>Provision of housing and cars</p> Signup and view all the answers

    Which mechanism may lead shareholders to exert control over management?

    <p>Successful public takeover bids</p> Signup and view all the answers

    How does the capital market reflect the performance of managers?

    <p>By mirroring company valuation through share price increases</p> Signup and view all the answers

    What are 'golden parachute' clauses designed to do for senior executives?

    <p>Protect them financially if terminated</p> Signup and view all the answers

    In a market characterized by perfect competition, what is the primary goal of a firm?

    <p>Optimum assignment of resources to maximize firm value</p> Signup and view all the answers

    What is one consequence of management underperformance in a firm?

    <p>Encouragement of public takeovers</p> Signup and view all the answers

    The debt capital market (DCM) requires executives to achieve what minimum condition?

    <p>A minimum return to cover interest and capital repayment</p> Signup and view all the answers

    How does the labour market for top management influence their earning potential?

    <p>By valuing knowledge and experience in performance contributions</p> Signup and view all the answers

    Study Notes

    About Strategic Management

    • A firm's strategy needs to be aligned with the environment.
    • Managers need to adopt strategies that change and adapt to the unstable and hostile environment.

    Strategic Decisions

    • The concept of strategy was developed in the 1960s.
    • Strategy evolves in conjunction with current management systems and their internal and external issues.
    • Andrews (1965) described strategy as: the pattern of major objectives, purposes or goals, and essential policies and plans for achieving those goals.
    • Chandler (1962), Ansoff (1965), and Porter (1980) have also contributed to the concept of strategy.
    • Ronda and Guerras (2012) define strategy as the dynamics of the firm's relation with its environment.

    Why Improve Performance?

    • Owners benefit from increased investment value.
    • Stakeholders (individuals, groups, or organizations with dealings with the firm) are positively impacted.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    TODOS LOS TEMAS DE EMPRESA PDF

    Description

    Explore the intricacies of rational strategic decision-making in this quiz. Assess its advantages, challenges, and the role it plays in organizational communication. Understand the differences between deliberate and emergent strategies and their implications for firms.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser