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Questions and Answers
One component of a mission statement involves identifying the firm's ______.
One component of a mission statement involves identifying the firm's ______.
customers
A mission statement should reflect the firm’s concern for survival, growth, and ______.
A mission statement should reflect the firm’s concern for survival, growth, and ______.
profitability
The ______ of a firm refers to its distinctive competence or major competitive advantage.
The ______ of a firm refers to its distinctive competence or major competitive advantage.
self-concept
Concern for ______ is important for firms to ensure they are responsive to social and environmental issues.
Concern for ______ is important for firms to ensure they are responsive to social and environmental issues.
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Companies often state their mission is to earn a ______, which is more accurately seen as an objective.
Companies often state their mission is to earn a ______, which is more accurately seen as an objective.
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A company’s realized strategy is a combination of deliberate planned elements and unplanned __________ elements.
A company’s realized strategy is a combination of deliberate planned elements and unplanned __________ elements.
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Strategic management consists of four basic elements: Environmental scanning, strategy formulation, strategy __________, and evaluation and control.
Strategic management consists of four basic elements: Environmental scanning, strategy formulation, strategy __________, and evaluation and control.
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A strategy evolves through incremental adjustments or dramatic __________ shifts.
A strategy evolves through incremental adjustments or dramatic __________ shifts.
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The strategic management process includes internal and external environment __________.
The strategic management process includes internal and external environment __________.
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Strategic change can occur due to unexpected moves from __________.
Strategic change can occur due to unexpected moves from __________.
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One of the reasons a strategy may change over time is due to shifting buyer needs and __________.
One of the reasons a strategy may change over time is due to shifting buyer needs and __________.
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__________ analysis is a technique used in environmental scanning to assess strengths, weaknesses, opportunities, and threats.
__________ analysis is a technique used in environmental scanning to assess strengths, weaknesses, opportunities, and threats.
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The purpose or reason for the organization’s existence is outlined in its __________.
The purpose or reason for the organization’s existence is outlined in its __________.
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A graphic vision statement paints a ______ of the kind of company that management is trying to create.
A graphic vision statement paints a ______ of the kind of company that management is trying to create.
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A directional vision statement describes the ______ course that management has charted.
A directional vision statement describes the ______ course that management has charted.
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A focused vision statement is specific enough to provide managers with ______ in making decisions.
A focused vision statement is specific enough to provide managers with ______ in making decisions.
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A flexible vision statement allows management to adjust to ______ circumstances in markets.
A flexible vision statement allows management to adjust to ______ circumstances in markets.
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Strategy formulation is a process of investigation, analysis, and decision-making that provides the company with the criteria for attaining a competitive ______.
Strategy formulation is a process of investigation, analysis, and decision-making that provides the company with the criteria for attaining a competitive ______.
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A feasible vision statement is within the realm of what the company can reasonably ______ to achieve.
A feasible vision statement is within the realm of what the company can reasonably ______ to achieve.
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A desirable vision statement indicates why the directional path makes good ______ sense.
A desirable vision statement indicates why the directional path makes good ______ sense.
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A comprehensive master approach that states how the corporation will achieve its mission and ______ is called a strategy.
A comprehensive master approach that states how the corporation will achieve its mission and ______ is called a strategy.
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A broad guideline for decision making that links the formulation of a strategy with its ______ is known as policy.
A broad guideline for decision making that links the formulation of a strategy with its ______ is known as policy.
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An easy to communicate vision statement should be explainable in 5 to 10 ______.
An easy to communicate vision statement should be explainable in 5 to 10 ______.
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A vague vision statement is short on specifics about where the company is ______.
A vague vision statement is short on specifics about where the company is ______.
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A vision statement articulates the ideal description of an organization and outlines its intended ______.
A vision statement articulates the ideal description of an organization and outlines its intended ______.
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An effective and inspirational vision enlists the commitment of the ______.
An effective and inspirational vision enlists the commitment of the ______.
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The mission of Disney is to 'create happiness by providing the finest in entertainment for people of all ages, everywhere' and focuses on the company's ______.
The mission of Disney is to 'create happiness by providing the finest in entertainment for people of all ages, everywhere' and focuses on the company's ______.
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A vision statement should be relatively short and ______.
A vision statement should be relatively short and ______.
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The Mayo Clinic's mission states to provide the best care to every ______ every day.
The Mayo Clinic's mission states to provide the best care to every ______ every day.
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Conditions in the firm’s external environment and internal ______ influence the forming of a vision statement.
Conditions in the firm’s external environment and internal ______ influence the forming of a vision statement.
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Greenpeace aims to halt environmental abuse and promote environmental ______.
Greenpeace aims to halt environmental abuse and promote environmental ______.
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An effective vision challenges and stretches the ______ of those involved.
An effective vision challenges and stretches the ______ of those involved.
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A mission statement should establish a firm's ______.
A mission statement should establish a firm's ______.
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A company's mission is more concrete than its ______.
A company's mission is more concrete than its ______.
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A strategic vision concerns a firm's future ______ course.
A strategic vision concerns a firm's future ______ course.
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A mission statement focuses on a firm's present business scope and ______.
A mission statement focuses on a firm's present business scope and ______.
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An effective company mission should identify products or services and specify customer ______.
An effective company mission should identify products or services and specify customer ______.
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Profit is not 'who we are and ______.'
Profit is not 'who we are and ______.'
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Values provide guidance for desired ______ and behaviors of employees.
Values provide guidance for desired ______ and behaviors of employees.
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Managerially, valuable objectives must be challenging, yet ______.
Managerially, valuable objectives must be challenging, yet ______.
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Financial objectives relate to revenue growth, profitability, and ______.
Financial objectives relate to revenue growth, profitability, and ______.
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Strategic objectives are related to a firm’s marketing standing and competitive ______.
Strategic objectives are related to a firm’s marketing standing and competitive ______.
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The balanced scorecard approach includes both financial and strategic ______.
The balanced scorecard approach includes both financial and strategic ______.
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Short-term objectives are targets to be achieved ______.
Short-term objectives are targets to be achieved ______.
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Long-term objectives are targets to be achieved within ______ to 5 years.
Long-term objectives are targets to be achieved within ______ to 5 years.
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Strategy forms a comprehensive master approach that states how the corporation will achieve its ______ and objectives.
Strategy forms a comprehensive master approach that states how the corporation will achieve its ______ and objectives.
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A policy is a broad guideline for ______-making that links the strategy with its implementation.
A policy is a broad guideline for ______-making that links the strategy with its implementation.
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Study Notes
BPMN 3023 Strategic Management
- Course name: BPPM 3023 Strategic Management
- Chapter 1: Introduction to Strategic Management
Phases of Strategic Management
- Phase 1: Basic financial planning (short-term focus)
- Phase 2: Forecast-based planning (internal and external analysis)
- Phase 3: Externally oriented strategic planning (focus on the external environment)
- Phase 4: Strategic management (combining all aspects)
Phases of Strategic Management (Detailed)
- Basic financial planning: minimal analysis, internal data, 2-3 weeks, one-year plans
- Forecast-based planning: more thorough analysis, internal and external data, one month, three to five years plans
- Strategic planning: external analysis, planning staff, top management, and consultants, throughout the year, five-year plans
- Strategic management: external and internal environments, lower-level managers, top-level managers, and consultants, throughout the year, five-year plans
Strategic Management vs Strategy
- Strategic Management: A set of managerial decisions and actions determining long-term corporate performance.
- Strategy: The set of actions managers take to outperform competitors and achieve superior profitability.
What is Strategy?
- Choosing how to compete
- Creating products/services to attract customers
- Positioning the company in the industry
- Deploying resources to build competitive capabilities
- Determining how each business function (R&D, supply chain, production, sales, marketing, distribution, finance, human resources) will operate
- Achieving the firm's performance targets
Why Strategy Evolves Over Time
- Unexpected competitor moves
- Shifting buyer needs/preferences
- Emerging market opportunities
- Managers implementing new ideas
- Evidence that current strategy isn't working
A Company's Strategy (Planned/Unplanned)
- Deliberate strategy elements (initiatives and continuing strategies)
- Unplanned reactive elements to changes (emergent strategy elements)
- Some deliberate strategies may be abandoned through these unplanned changes
Strategic Management Process
- Internal and external environment scanning
- Strategy formulation
- Strategy implementation
- Evaluation and Control
Basic Model of Strategic Management
- The process includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control.
Basic Model of Strategic Management (Detailed)
- Environmental scanning (gathering information) - external (natural, societal, task environments) and internal (structure, culture, resources)
- Strategy formulation (developing long-range plans) - Mission, objectives, strategies and policies
- Strategy Implementation (putting the strategy into action) - Programs, Budgets and Procedures
- Evaluation and Control (monitoring performance) - Performance and feedback/learning processes
Environmental Scanning
- Monitoring, evaluating, and disseminating information from both the internal and external environments for people within the organization
- Includes SWOT analysis.
Strategy Formulation
- Investigation, analysis, and decision making to provide the company with the criteria to attain competitive advantage.
- Includes defining competitive advantage (strategy), crafting the firm's business strategy, and setting objectives
Stage 1: Developing a Strategic Vision
- A picture of what the firm wants to be and achieve in the future.
- The statement should be short, concise, inspirational, consistent with stakeholders' plans, and provide a clear picture of the organization's future.
- External and Internal conditions affect the vision statement.
Stage 2: Developing a Mission Statement
- A more concrete description of the firm's vision, stating the businesses in which the firm will compete and the customers it will serve.
- Inspiring and relevant to stakeholders, developed by top leaders, and highly effective when employees have strong ethics.
Strategic Vision Versus Mission Statement
- Strategic Vision: Focuses on the future strategic course ("where we are headed")
- Mission Statement: Focuses on the present business scope and purpose ("who we are, what we do, why").
Developing a Company Mission Statement
- Clearly describe the company's product(s) or service(s) and buyer needs that are being met
- Specify the customer target groups and markets being served
- Specify the approach to meeting customer needs with a clear company identity
Developing a Mission Statement: Components
- Customers, products/services, markets, technology, concern for survival/growth/profitability
Developing a Mission Statement: Components (Continued)
- Philosophy, self-concept, concern for public image/community/environment, concern for employees
Strategic Mission, Vision, and Profit
- Profit is an objective, result of activities, and not the sole purpose of a firm
Linking the Strategic Vision and Mission with Company Values
- Values provide guidance for desired actions and behavior of employees, focusing on fair treatment, honor, integrity, ethical behavior, innovativeness, teamwork, passion for excellence, social responsibility, and community citizenship.
Stage 3: Setting Objectives
- Transforming the strategic vision into specific performance targets
- Using indicators to gauge progress and measure results
- Creating valuable objectives for comprehensive performance tracking
What Kinds of Objectives to Set
- Financial Objectives: Indicators of past decisions, relate to growth, profitability, and investment return.
- Strategic Objectives: Indicators of a firm's future performance, related to its marketing position and competitive vitality.
Short-Term and Long-Term Objectives
- Short-term Objectives: Achieved quickly, represent milestones or steps in reaching long-term performance
- Long-term Objectives: Achieved within 3–5 years
Stage 4: Formulate a Strategy
- A comprehensive approach to achieving the corporation's mission and objectives
- Maximizing competitive advantages while minimizing disadvantages (corporate, business, and functional levels)
Stage 5: Set a Company Policy
- A broad guideline that combines strategy formulation and implementation
Stage 3: Strategy Implementation
- Strategies and policies put into action to develop programs, budgets, and procedures
Stage 3: Evaluation and Control
- Monitoring organizational activities and performance results
- Actual performance is compared to desired results through the feedback/learning process
Benefits of Strategic Management
- Clearer sense of strategic vision
- Sharper focus on important strategies
- Improved understanding of rapidly changing environments
Impact of Globalization on Strategic Management
- International markets are integrated
- Corporations are more interconnected and modernized
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Description
Test your understanding of key concepts in strategic management. This quiz covers essential elements such as mission statements, environmental scanning, and the strategic management process. Challenge yourself with questions about the components that influence a firm's strategy and competitiveness.
