Questions and Answers
What is strategic management?
A set of managerial decisions and actions that determines the long-run performance of a corporation.
What are the four phases of strategic management?
Which countries are members of Mercosur?
The Andean Community is a free-trade alliance composed of Bolivia, Ecuador, and Venezuela.
Signup and view all the answers
When was the European Economic Community formed?
Signup and view all the answers
Which of the following risks is associated with environmental sustainability?
Signup and view all the answers
NAFTA is an agreement between Canada, the United States, and ______.
Signup and view all the answers
What is the goal of NAFTA?
Signup and view all the answers
Climate change does not impact business decisions.
Signup and view all the answers
What is strategic management?
Signup and view all the answers
The Mercosur free-trade area includes Brazil, Argentina, and Chile.
Signup and view all the answers
The four phases of strategic management include: Basic financial planning, Forecast-based planning, Externally oriented (strategic) planning, and _____ management.
Signup and view all the answers
What does environmental sustainability refer to?
Signup and view all the answers
Which of the following are members of the Association of Southeast Asian Nations (ASEAN)? (Select all that apply)
Signup and view all the answers
What is the goal of the North American Free Trade Agreement (NAFTA)?
Signup and view all the answers
Climate change does not significantly impact business decisions.
Signup and view all the answers
What was the original name of strategic management?
Signup and view all the answers
What is a significant risk associated with climate change for companies?
Signup and view all the answers
Which organization was formed on May 23, 2008, to unite existing free-trade areas in South America?
Signup and view all the answers
Study Notes
Strategic Management
- Strategic management involves decisions and actions that determine a corporation's long-term performance.
- Key components include environmental scanning, strategy formulation, implementation, evaluation, and control.
- Focuses on external opportunities and threats relative to a corporation's strengths and weaknesses.
- Originally known as business policy, now incorporates strategic planning, industry analysis, and environmental scanning.
Phases of Strategic Management
- Phase 1: Basic financial planning.
- Phase 2: Forecast-based planning.
- Phase 3: Externally oriented (strategic) planning.
- Phase 4: Comprehensive strategic management.
Trade Agreements and Economic Alliances
- Mercosur (Mercosul) includes Argentina, Brazil, Uruguay, and Paraguay; essential for manufacturers to avoid tariffs.
- The Andean Community consists of Colombia, Ecuador, Peru, Bolivia, and Chile, focusing on regional free trade.
- On May 23, 2008, the Union of South American Nations was established to unify free-trade areas.
- Central American Free Trade Agreement (CAFTA) includes El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, and the U.S.
Globalization Impact
- Globalization has transformed how corporations operate, causing increased market and product integration.
- ASEAN aims to create a borderless economic zone by 2020 among its ten member countries.
Environmental Sustainability
- Refers to business practices aimed at minimizing environmental impact.
- Essential for long-term profitable growth and resource efficiency.
Climate Change Risks
- Climate change influences business decisions with growing importance in strategic planning.
- Regulatory Risk: Companies must comply with mandates like the Kyoto Protocol to reduce greenhouse gas emissions.
- Supply Chain Risk: Increased costs from regulations may be passed on to customers.
- Product and Technology Risk: Sustainable practices may become necessary for financial success.
- Litigation Risk: Companies with high carbon emissions face potential lawsuits.
- Reputational Risk: Environmental impact affects market perception and consumer trust.
- Physical Risk: Climate change poses direct threats, including droughts, floods, storms, and rising sea levels.
European Trade Association
- The European Union, formed in 1957 as the European Economic Community, is a key global trade association.
- NAFTA connects Canada, the U.S., and Mexico, aiming for enhanced trade and economic integration among the member nations.
Strategic Management
- Strategic management involves decisions and actions that determine a corporation's long-term performance.
- Key components include environmental scanning, strategy formulation, implementation, evaluation, and control.
- Focuses on external opportunities and threats relative to a corporation's strengths and weaknesses.
- Originally known as business policy, now incorporates strategic planning, industry analysis, and environmental scanning.
Phases of Strategic Management
- Phase 1: Basic financial planning.
- Phase 2: Forecast-based planning.
- Phase 3: Externally oriented (strategic) planning.
- Phase 4: Comprehensive strategic management.
Trade Agreements and Economic Alliances
- Mercosur (Mercosul) includes Argentina, Brazil, Uruguay, and Paraguay; essential for manufacturers to avoid tariffs.
- The Andean Community consists of Colombia, Ecuador, Peru, Bolivia, and Chile, focusing on regional free trade.
- On May 23, 2008, the Union of South American Nations was established to unify free-trade areas.
- Central American Free Trade Agreement (CAFTA) includes El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, and the U.S.
Globalization Impact
- Globalization has transformed how corporations operate, causing increased market and product integration.
- ASEAN aims to create a borderless economic zone by 2020 among its ten member countries.
Environmental Sustainability
- Refers to business practices aimed at minimizing environmental impact.
- Essential for long-term profitable growth and resource efficiency.
Climate Change Risks
- Climate change influences business decisions with growing importance in strategic planning.
- Regulatory Risk: Companies must comply with mandates like the Kyoto Protocol to reduce greenhouse gas emissions.
- Supply Chain Risk: Increased costs from regulations may be passed on to customers.
- Product and Technology Risk: Sustainable practices may become necessary for financial success.
- Litigation Risk: Companies with high carbon emissions face potential lawsuits.
- Reputational Risk: Environmental impact affects market perception and consumer trust.
- Physical Risk: Climate change poses direct threats, including droughts, floods, storms, and rising sea levels.
European Trade Association
- The European Union, formed in 1957 as the European Economic Community, is a key global trade association.
- NAFTA connects Canada, the U.S., and Mexico, aiming for enhanced trade and economic integration among the member nations.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the fundamentals of strategic management, focusing on long-term decision-making within corporations. It also explores the implications of establishing the Mercosur free-trade area and its significance for manufacturing in member countries.
