Strategic Management Basics

Strategic management primarily involves making decisions that impact only a single department within an organization.

A strategic plan primarily results from routine, easily made managerial choices.

While strategic plans are important, they rarely signal a company's commitment to specific markets or policies.

The strategic-management model begins with the question: 'How can we maximize profits this quarter?'

Strategy formulation involves executing the chosen strategies.

Strategy evaluation primarily focuses on determining which strategies are performing exceptionally well and expanding them.

Establishing long-term objectives is a component of strategy implementation.

Strategy formulation only includes choices about entering new businesses.

Strategy implementation is often referred to as the 'planning' stage.

Measuring organizational performance is a part of the strategy implementation stage.

A competitive advantage is defined as any detrimental activity a firm engages in compared to its rivals.

Strategists are individuals primarily responsible for the daily operations, rather than the overall direction, of an organization.

A vision statement answers the question, 'What is our current financial status?'

Internal strengths and weaknesses are largely driven by uncontrollable market forces.

Long-term objectives should span less than one year to allow for quick adaptation.

Annual objectives are short-term milestones that organizations must achieve to reach long-term objectives.

Organizations that utilize strategic management tend to show marginal improvements in financial metrics.

Strategic management enables an organization to be reactive rather than proactive.

Enhanced communication and deeper understanding are benefits of a firm that does strategic planning.

A key nonfinancial benefit of strategic planning is a decreased awareness of external threats.

Viewing planning as a waste of time is a reason why some firms do not engage in strategic planning.

Firms are more likely to engage in strategic planning if they have faced a prior unpleasant experience with it.

Using strategic planning as a means to only satisfy regulatory requirements enhances its overall effectiveness.

Strategic planning is most effective when delegated to a single 'planner' within the organization.

Maintaining a rigid planning process hinders flexibility and creativity.

In Western Europe, the expectation for green operations and products is increasing by 28 percent annually.

Internet marketing is reportedly decreasing by 11 percent annually in the United States.

Commodity food prices decreased by 6 percent the prior year.

Oil and gas prices saw an increase of 18 percent in the last year.

There is a significant drop in computer hacker problems, decreasing 14 percent annually.

Strategies are actually long-term objectives that will be achieved.

Determining internal strengths and weaknesses is not part of strategy formulation.

Strategic planning is synonymous with strategic management in this course.

If top managers make many intuitive decisions, there will be strong results for strategy implementation.

Not communicating the plan to employees means many will continue working in the dark.