22 Questions
What are examples of tangible assets?
Production facilities, raw materials, financial resources
Which type of assets are the easiest to identify and often found on a firm's Balance Sheet?
Tangible assets
What does human capital refer to?
The number of employees, their skills, and motivation
Which factor is NOT part of a PEST analysis?
Environmental
What is the focus of an environmental scanning process?
Analyzing external factors affecting the business environment
Which of the following is NOT one of the three basic resources mentioned?
Marketing resources
What is an example of an intangible asset?
Brand names
In a PEST analysis, which factor is NOT typically considered?
Structure
What are some elements of the internal environment in strategic management?
Chain of Command
According to the SWOT analysis rules, how should one differentiate between strength and opportunity?
By looking at assets and competencies
Which component addresses the question 'What do we want to be?' in strategic management?
Vision
What do simple rules for successful SWOT analysis recommend differentiating between?
Strength and opportunity
Which of the following is NOT a component of the PEST analysis?
Competitor analysis
What is the purpose of analyzing the internal factors of an organization?
To determine the strengths and weaknesses that may impact the firm's ability to seize opportunities and avoid threats
Which of the following is NOT an example of a basic organizational structure?
Matrix structure
Which of the following factors would be considered a socio-cultural factor in the PEST analysis?
Age distribution of the population
What is the purpose of an organization's mission statement?
To define the reason for the organization's existence
Which of the following is NOT a component of the strategic management model presented in the text?
Marketing analysis
What is the purpose of the 'evaluation and control' step in the strategic management model?
To monitor the organization's actual performance against its planned objectives
Which of the following is an example of a technological factor in the PEST analysis?
New discoveries and innovations
What is the purpose of an organization's culture, according to the text?
To establish the collection of beliefs, expectations, and values shared by employees
Which of the following is NOT considered a resource in the internal analysis of an organization?
The organization's mission statement
Study Notes
Strategic Management Model
- Consists of Environmental Scanning, Strategy Formulation, Strategy Implementation, and Evaluation and Control
- External Societal Environment: General forces, PEST Analysis, Task (Industry), and Competitors
- Internal Structure: Chain of Command, Culture: Beliefs, Expectations, Values, and Resources: Assets, skills, competencies, knowledge
Environmental Scanning
- External Factors: PEST Analysis (Political, Economical, Socio-cultural, Technological)
- Internal Factors: Structure, Culture, Resources
- Strategy Formulation, Strategy Implementation, and Evaluation and Control
PEST Analysis
- Political Factors: Monopolies legislation, Environmental protection laws, Taxation policy, Employment laws, Government policy, Legislation
- Economical Factors: GDP Trends, Interest rates, Inflation, Money supply, Employment, Income, Energy availability and cost
- Socio-cultural Factors: Growth rate of Population, Age distribution of population, Distribution of income, Lifestyle changes, Levels of education
- Technological Factors: Total Government spending for R&D, New discoveries and innovations, Speed of technology transfer, Internet Availability, Information technology
Internal Factors
- Structure: Chain of Command, Basic Organizational Structures (Simple, Functional, Divisional, Strategic business units (SBU’s), Conglomerate structure)
- Culture: Collection of beliefs, expectations, and values shared by a corporation’s members and transmitted from one generation of employees to another
- Resources: Assets, skills, competencies, knowledge, Three Basic Resources (Tangible assets, Human Assets, Intangible assets)
Resources
- Tangible assets: physical and financial assets, can be found on a firm’s Balance Sheet
- Human Assets: number of employees, their skills, and motivation
- Intangible assets: cannot be seen or touched, often very important in creating competitive advantage
Test your knowledge on strategic management models, environmental analysis, strategy formulation, implementation, and evaluation. Topics include PEST analysis, chain of command, organizational culture, resources, vision, and mission.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
