STRATEGIC MANAGEMENT FINAL EXAM REVIEW

by **terrywildwolf** Sun Sep 20, 2009 12:29 pm

Q1: Explain the traditional Strategic management process:

is the process through which organizations…
 analyze and learn from stakeholders inside and outside of the organization,
 establish strategic direction,
 create strategies that are intended to help achieve established goals, and
 execute those strategies….
=> all in an effort to satisfy key organizational constituencies (stakeholders).

Q2: The external environment of business may be divided into two sectors: they are broad and task.

Q3: The Broad environment consists of domestic and global forces such as:

 socio-cultural trends (e.g. demographics)
 technological trends (e.g. internet)
 political trends (e.g. open markets)
 economic trends (e.g. growing economy)

Q4: The task environment consists of external stakeholders. Explain it:

Groups or individuals outside the organization that are significantly influenced by or have a major impact on the organization -- such as:
 Customers
 Suppliers
 Competitors

Q5: The purpose of internal analysis to determine:

 strengths and opportunities for competitive advantage, and
 weaknesses and organizational vulnerabilities that should be corrected.

Q6: What contains the functional Strategy formulation?

Functional strategy formulation contains the details of how the functional areas such as marketing, operations, finance, and research should work together to achieve the business-level strategy.

Q7: Strategic restructuring involves?

Strategic restructuring involves a renewed emphasis on what an organization does well.

Q8: The Most Successful Organizations Analyze and Manage Their Stakeholders Well. Stakeholder’s Analyses are?

 Identifying and Prioritizing Key Stakeholders
 Assessing Their Needs
 Collecting Ideas From Them
 Integrating this Knowledge into the Strategic Management Process

Q9: What is increasing need for ethical behavior?

Global Competition and Technological Complexity lead to Increasing Organizational Interdependence and Increasing Need for trust so that increase the Trustworthy Behavior and Behavior that Violates Trust and Fairness.

Q10: Why Consider Society?

 Stakeholders are members of society--assessment of their values and beliefs
 Good (ethical) reputation
 Avoid restrictive legislation
 Change = opportunities

Q11: What are the Key Forces That Affect Virtually All Organizations?

 Economic Growth
 Interest Rates
 Availability of Credit
 Inflation Rates
 Foreign Exchange Rates
 Foreign Trade Balances

Q12: Can you explain Global Political and Legal Forces?

 Among the most significant determinants of organizational success
 Governments provide and enforce the rules by which organizations operate
 Level of interference from government varies from country to country and industry to industry
 The worldwide trend is towards deregulation and privatization
 In the U.S., significant political/legal influence comes from: lawmakers, regulatory agencies, revenue collection agencies, courts

Q13: What are the Leadership Styles?

 Authoritative: Inspire with a vision, set direction. Appropriate when new direction needed.
 Affiliative: Build teams, create harmony. Appropriate in stressful situations.
 Democratic: Build consensus, create participation. Appropriate when need input from key employees and buy-in.
 Pace-setting: Set high standards. Appropriate when need quick results from a highly motivated team.
 Coaching: Develop people for the future.
 Coercive: Demand immediate compliance. Appropriate in a crisis.

Q14: When the emotional intelligence of the Leader as SELF AWARENESS occurs?

Self Awareness: Ability to understand own moods and emotions as well as their impact on others

Q15: Inform the Four Primary Responsibilities of Leaders?
 Design organizational purpose, vision and core values
 Develop policies, strategies and structure
 Create an environment for organizational learning
 Serve as a steward for the organization

16. There is links Between Business and Marketing Strategies. For Growth Strategies. What we have to do?
For growth strategies - identify new customers, suggest product opportunities, create advertising and promotional programs, arrange distribution channels, and creates pricing and customer service policies

17. What are the Human Resources Strategies for Implementation plans?
Establish the performance evaluation, training, rewards, and benefits programs that support chosen strategies
Recruit management and employees that fulfill the strategic needs of the organization.

18. Explain: Well-Developed Functional Strategies?
Decisions made in each functional area are consistent with each other
Decisions made within one function are consistent with those made in other functions
Decisions within functions are consistent with the strategies of the business

19. Strategic Control System is a system to support managers in:
- assessing whether the organization’s strategy is accomplishing goals as intended
- identifying areas needing attention.

20. What are the Types of Control?
Feedback - Provides managers with performance information so that they can make adjustments if necessary
Concurrent - Provides real-time information used to control organizational processes
Feedforward - Helps managers anticipate changes in the external and internal environments

21. Restructuring Approaches. It is always looking for?
Refocusing Assets : Down-scoping
Retrenchment: Down-sizing
Chapter XI Reorganization
Leveraged Buyout (LBO)
Changes to Organizational Design

22. What is the Global Expansion Tactics?
Exporting
Licensing
Franchising
Joint Ventures
Greenfield Ventures

23. What are the Countries Characteristics the Global Company has to know?
Government
Transportation
Educational Systems
Economic Health
Taxes
Currency/Exchange

24. What are the Challenges for managers?
retaining valuable employees
creating and preserving competitive advantage
holding back new entrants
serving increasingly demanding customers
choosing and timing technology investments at a time when change is so rapid.

GOOD LUCK TO YOU! SEE YOU NEXT TERM