Strategic Management Overview
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Questions and Answers

What is NOT a reason for a company to revisit its strategic vision, direction, objectives, and strategy?

  • External or internal condition changes
  • Downturn in market position
  • Improvement in employee satisfaction (correct)
  • Shortfalls in performance

    • Successful strategy execution can be achieved uniformly across an organization.

    False (B)

    What is the primary responsibility of managers when a company experiences performance issues?

    To identify whether the causes are due to poor strategy, poor execution, or both.

    The game plan that directs a company towards success is called _______.

    <p>corporate strategy</p> Signup and view all the answers

    Match the planning levels with their descriptions:

    <p>Strategic Planning = Developed by senior management for the entire organization Operational Planning = Formulated at middle and lower management levels Action Plans = Specifics on how resources are used to achieve goals Resource Allocation = Gathering resources to achieve organizational goals</p> Signup and view all the answers

    Which of the following is NOT a management issue central to strategy implementation?

    <p>Devising marketing strategies (A)</p> Signup and view all the answers

    Employee participation in strategy-implementation activities should not occur until after the strategy is formulated.

    <p>False (B)</p> Signup and view all the answers

    What should be clear to all organizational members regarding major competitors?

    <p>Accomplishments, products, plans, actions, and performance</p> Signup and view all the answers

    The process of _________ transformation is becoming essential for organizations to remain competitive.

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

    Match the following management issues with their respective actions:

    <p>Establishing annual objectives = Setting clear performance goals Devising policies = Creating guidelines for decision-making Adapting production processes = Improving operational efficiency Developing a competitive focus = Distributing competitive intelligence</p> Signup and view all the answers

    What is considered a necessary force for motivating managers and employees during strategy implementation?

    <p>Personal commitment of strategists (C)</p> Signup and view all the answers

    Which of the following is essential for the new behaviour to become permanent?

    <p>Continuous reinforcement (C)</p> Signup and view all the answers

    Top-down communication is important for developing bottom-up support in an organization.

    <p>True (A)</p> Signup and view all the answers

    Name one key challenge faced during digital transformation.

    <p>Change management</p> Signup and view all the answers

    Change management is a one-time application process.

    <p>False (B)</p> Signup and view all the answers

    What are the four essential elements of change management in digital transformation?

    <p>Defining goals and objectives, assessing current state, creating a roadmap for change, implementing and managing change.</p> Signup and view all the answers

    Successful change management assists organizations in overcoming the obstacles posed by the __________ transition.

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

    Match the following change management components with their descriptions:

    <p>Defining goals and objectives = Establishing a clear vision for change Assessing the current state = Identifying gaps between current and desired states Creating a roadmap for change = Outlining steps needed for transformation Implementing and managing change = Overseeing execution of change at all levels</p> Signup and view all the answers

    What does the process of unfreezing, changing, and refreezing represent?

    <p>A cyclical change process (B)</p> Signup and view all the answers

    Digital transformation can involve entirely new products and services.

    <p>True (A)</p> Signup and view all the answers

    What is the primary goal of change management?

    <p>To manage changes in a safe and regulated manner.</p> Signup and view all the answers

    Which of the following best describes a simple organizational structure?

    <p>Owner-manager makes all major decisions directly (B)</p> Signup and view all the answers

    A simple organizational structure is suitable for large, multi-business corporations.

    <p>False (B)</p> Signup and view all the answers

    What are two potential competitive advantages of a simple organizational structure?

    <p>Broad-based openness to innovation, greater structural flexibility</p> Signup and view all the answers

    In a simple structure, the owner's direct involvement in daily operations leads to __________ communication.

    <p>frequent and direct</p> Signup and view all the answers

    Match the following characteristics to their respective descriptions:

    <p>Little specialization of tasks = Owners are involved in every aspect Unsophisticated information systems = Simple decision-making processes Few rules = Flexibility in operations Direct involvement of owner-manager = Quick market introduction of products</p> Signup and view all the answers

    As small companies grow larger, what is a significant challenge they may face regarding their organizational structure?

    <p>Dealing with increased information-processing requirements (C)</p> Signup and view all the answers

    In a simple structure, communication tends to be frequent but not direct.

    <p>False (B)</p> Signup and view all the answers

    What is the main reason that small companies outgrow a simple organizational structure?

    <p>Increased amount of competitively relevant information</p> Signup and view all the answers

    What is the primary advantage of using a Strategic Business Unit (SBU) structure?

    <p>Helps in strategic planning by grouping related businesses (C)</p> Signup and view all the answers

    All products and businesses within an SBU receive the same strategic planning treatment.

    <p>True (A)</p> Signup and view all the answers

    What does SBU stand for?

    <p>Strategic Business Unit</p> Signup and view all the answers

    Each SBU will have its own distinct set of _______ and its own distinct strategy.

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

    Match the following SBU attributes with their descriptions:

    <p>Scientific method = Groups businesses for strategic planning Distinct competitors = Every SBU has its own market rivals CEO responsibility = Oversees strategic planning and profit performance Functional relation = Assembles related businesses into units</p> Signup and view all the answers

    What happens to unrelated products/businesses when grouping them into SBUs?

    <p>They are placed into separate SBUs (D)</p> Signup and view all the answers

    Grouping based on territorial units is preferred over grouping based on functional relations.

    <p>False (B)</p> Signup and view all the answers

    Who is responsible for strategic planning and profit performance within an SBU?

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

    What is one way that relatedness among Strategic Business Units (SBUs) can exist?

    <p>SBUs share the same customers (A)</p> Signup and view all the answers

    All organizations benefit from using a matrix structure for strategy implementation.

    <p>False (B)</p> Signup and view all the answers

    In a matrix structure, employees report to two different managers: a product or project manager and a __________ manager.

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

    Which organizational structure is likely to combine functional and product forms?

    <p>Matrix structure (A)</p> Signup and view all the answers

    Unilever operates only in frozen food production.

    <p>False (B)</p> Signup and view all the answers

    What benefits does identifying SBUs provide to a company?

    <p>Clear assignment of responsibilities for strategic planning</p> Signup and view all the answers

    Match the following components with their descriptions:

    <p>SBU = Organizational unit focused on a specific market or product Matrix structure = Combines functional and product-based organization Functional manager = Responsible for overseeing a specific department Product manager = Leads projects and product-related initiatives</p> Signup and view all the answers

    Study Notes

    Strategy Implementation and Evaluation

    • Strategy implementation involves putting strategic plans into action.
    • Evaluation assesses the effectiveness of implemented actions.
    • These phases are critical for organizational success.
    • Strategic management is a dynamic and continuous process.
    • Implementing and evaluating activities are crucial at any point, not just annually.

    Strategic Management Process

    • Developing the strategy is a methodical process.
    • A clear vision, mission, values, and goals are essential to start.
    • An analysis of multiple themes helps identify the best options.
    • A comprehensive strategic plan is created, including implementation plans, and key performance indicators.
    • The plan links themes to organizational goals and measures the success of the strategy’s implementation.

    Stages in Strategic Management

    • Developing a strategic vision, mission, and objectives.
    • Conducting an analysis of the environment and the organization.
    • Formulating the strategy.
    • Implementing the strategy.
    • Evaluating and controlling the strategy.

    Strategic Management Model

    • The model (Fred R David) details the process, including environmental analysis, developing and selecting strategies, implementation, and evaluation, which are vital segments of the process.

    Strategic Management

    • The strategic management process is dynamic and continuous.
    • A change in any component of the model (e.g., a major economic shift) can necessitate adjustments to the other components.
    • Strategy, implementation, and evaluation activities should be performed on a continually ongoing basis, not just once a year or semi annually.

    Strategic Management Process

    • It is methodical; it begins with developing a clear vision, mission, values, and goals, and analysing themes to determine profitable options.
    • The development of a strategic plan details these elements.
    • Key areas are vision, mission, values, goals, and strategic themes.
    • There is a detailed implementation plan, and key performance measures are included to link themes to organizational goals and measure strategy success.

    Strategic Management

    • Strategy implementation involves transforming plans into action, effectively executing strategy, and measuring results.
    • It critically reviews strategic decisions and activities.
    • Activities focus on achieving the overall strategy.
    • Evaluation is meant to monitor progress and understand the impact of those activities in attaining the desired outcomes.

    Strategic Management Model (Fred R. David)

    • Environmental Analysis: Understanding the external environment.
    • Develop Vision, Mission, Objectives: Defining the company direction.
    • Generate, Analyse, and Select Strategies: Determining potential strategies.
    • Strategy Implementation: Putting strategies into action.
    • Strategic Control and Evaluation: Tracking progress, assessing results, and making adjustments.

    Strategic Planning

    • Strategic planning is the process of establishing objectives, resources needed, setting policies, acquisition, utilization, and disposition of resources.
    • It shapes organizational direction, allocation of resources, and strategy execution.
    • It's concerned with long-term organizational success.
    • It's usually a senior management responsibility.

    Strategic Management

    • Strategic planning deals with future directions (today, tomorrow, etc.), and devising action plans to achieve set objectives through strategic action plans, which provide detailed directions on how resources should be allocated and used to reach the strategic goals.

    Strategic Management

    • Strategic planning is determining the organization's objectives, necessary resources to achieve those objectives, and policies to govern resource acquisition, use, and deployment.

    Strategic Leadership

    • Effective leadership is defined by results not attributes.
    • A leader is one who knows the way, goes the way, and shows the way.
    • Strategic leadership is about developing a vision, creating a plan, inspiring and motivating their teams, and communicating the plan effectively.
    • Strategic leaders play an important role in encouraging and directing organizational members toward positive and successful strategy execution.

    Types of Strategic Control

    • Premise control - verify assumptions.
    • Strategic surveillance - uncover unanticipated information.
    • Special alert control - respond to unexpected events.
    • Implementation control - monitor strategy implementation.

    Strategic Implementation and Evaluation

    • Strategic planning encompasses the determination of an organization’s objectives, the necessary resources to achieve those objectives, and the formulation of guiding principles for resource management.
    • Effective implementation and evaluation are dependent on leadership, communication, resources, and effective management of change.

    Organization Structure

    • The ideal organizational structure is one where the merit of ideas is prioritized over the originators of the ideas, and where the significance of shared objectives is more prominent than executive directives.

    Organizational Structure

    • The functional structure groups tasks by function (e.g., marketing, finance).
    • The divisional structure groups related products or services into divisions.
    • The matrix structure combines functional and divisional structures.
    • The network structure is a decentralized, flexible structure that relies on external partnerships for its specialized expertise.

    Stages of Strategic Change

    • Determining the need for change.
    • Creating a shared vision of the future.
    • Implementing and institutionalizing the change.

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    Related Documents

    Strategy Implementation and Evaluation PDF

    Description

    Explore the crucial phases of strategy implementation and evaluation in organizational success. This quiz covers the strategic management process, including developing a strategic vision and formulating actionable plans. Test your understanding of how effective evaluation measures the success of these strategies.

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