30 Questions
What does capital expenditure do to an asset account?
Increases the asset's basis
When would a company opt for an acquisition according to the text?
If they need to quickly enter a market
What type of arrangement do some countries like India and China specify for FDI according to the text?
Strategic Alliance
Which economic theory does the Industrial Organizational Approach in strategic management mainly deal with?
Competitive rivalry
What is one of the assumptions of the Sociological Approach in strategic management?
Bounded rationality
What advantage does a business obtain due to expansion according to the text?
Economies of scale
What is a strategic business unit responsible for?
Budgeting, new product decisions, hiring decisions, and price setting
What does an operational level strategy primarily deal with?
Day-to-day operational activities
What is the main criticism of a functional organizational structure mentioned in the text?
Inefficiency in organizing activities
Which term refers to a semiautonomous unit responsible for its own profit within a corporation?
Strategic business unit
Why do some firms revert to a simpler strategic structure according to the text?
Driven by advances in information technology
What distinguishes a technology strategy from operational level strategies based on the text?
Focuses on technology as a means of achieving overall objectives
What is the first task in strategic management as highlighted in the text?
Compiling and disseminating a mission statement
Why might an SME employ an entrepreneurial approach to strategic management?
As a result of fewer resources and smaller size
What does a mission statement outline for an organization?
Raison d'etre of the organization
Which process is NOT part of strategic formation as mentioned in the text?
Market expansion
Why might a global/transnational organization employ a more structured strategic management model?
Scope of operations
What should objectives in strategic management be parallel to, as per the text?
Time-line
What did Edward Deming emphasize when it comes to decision-making?
Intuition and data should be integrated in decision-making
Which statement best describes the role of intuition in strategic decision-making according to the text?
Intuition plays a crucial role in making good strategic decisions
What does the strategic management process aim to achieve?
Organize information effectively for decision-making under uncertainty
In what situations is intuition particularly useful according to the text?
When making decisions amidst uncertainty or few precedents
What characteristic of strategic management is emphasized in the text?
It involves integrating intuition and analysis for effective decisions
Alfred Sloan described Will Durant as someone who was guided by:
Intuition alone
What is one of the non-financial benefits of taking an organization-wide, proactive approach to a changing global world?
Improved understanding of competitors' strategies
Which benefit is NOT associated with building an executive team that serves as a model of cross-functional teamwork?
Increased employee turnover
Why might red oceans feel comfortable to people even if they are not paths to future profitable growth?
They are perceived to have served well in the past
Which action can help organizations overcome the cognitive hurdle and execute strategic shifts successfully?
Clarifying competitive advantage
What is one benefit of defining focused, quantifiable outcomes measures of success for an organization?
Clarifying the path to success
Which factor contributes to reducing conflict and empowering the organization according to the text?
Providing clear day-to-day decision-making guidelines
Learn about the strategic management process, which involves making major decisions in an objective and systematic way. Explore the importance of involving managers and employees at corporate and functional levels. Understand Edward Deming's perspective on integrating intuition and analysis in decision-making.
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