18 Questions
What is the main focus of strategic management?
Environmental scanning
Which phase of strategic management involves proposing the next year's budget with most information coming internally?
Basic financial planning
What is the time horizon for Phase 2 of strategic management?
Three to five years
In which phase of strategic management are formal strategic planning initiatives taken by top management to improve responsiveness?
Externally oriented planning
What is one benefit of strategic management mentioned in the text?
A clear strategic vision for the firm
What distinguishes strategic management from basic financial planning?
Proposing five-year plans with external data
What is a key characteristic of Phase 3 of strategic management?
Top management controls the planning process
What distinguishes Phase 4 of strategic management from the previous phases?
Emphasis on probable scenarios and contingency strategies
How does Phase 2 of strategic management differ from Phase 4?
Strategic thinking at all levels is emphasized in Phase 2
What is a major difference between Phase 3 and Phase 4 of strategic management?
Phase 4 involves top management forming planning groups
What is a primary reason for top management taking control of the planning process in Phase 3?
To increase responsiveness to changing markets
How does strategic information usage change from Phase 3 to Phase 4 of strategic management?
Strategic information is used by people throughout the organization in Phase 4
What is the primary focus of strategic management?
Developing strategies to achieve long-term organizational performance
Which phase of strategic management involves considering projects that may take more than one year?
Forecast-based planning
What is the primary difference between basic financial planning and strategic management?
Basic financial planning involves proposing annual budgets, while strategic management focuses on long-term performance
Which of the following is NOT a phase of strategic management mentioned in the text?
Resource allocation
What is a limitation of basic financial planning?
It pretends to be strategic management without substantial analysis
What is the primary source of environmental information used in basic financial planning?
The company's sales force
Explore the concept of strategic management, including decision-making, long-term performance, environmental scanning, strategy formulation, implementation, and control. Learn about the evolution of strategic management from business policy to a recognized science and art.
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