The risk-bearing capacity of the organization’s managers. Course Hero is not sponsored or endorsed by any college or university. b. economies of scale in the industry are high. This strategy emphasizes the strengthening of a company’s competitive position of products or services. b. a decision-making activity concerned with a firm’s internal resources, capabilities, and competencies, independent of the conditions in its external environment. It is easier to build competitive advantage when a firm has a core competence in an area important to market success. These are more objective and measurable. The other objective is to judge performance through operating results. The other aspect of information management is to ensure that this internal information is not ‘leaked’ to the outside world of competitors. The purpose of strategic management is to develop an integrative perspective across the organization. Strategic issues require which level of management decisions? 97. c. Front-line . Strategic decisions are to be taken with less information and also in the environment of uncertainty and risk. Similarly, a human resource manager trying to recruit someone for the organization would do a lot of information analysis regarding the job profile, suitability of the candidate for the job, the job market dynamics, etc. They need to ensure that all employees comply with the code of ethics in every unit of the organization and at every level. It can be regarded as the architecture of integrative decision making. It is a central value­creating capability of the organization. Top C. Front-line D. Middle 14. Strategies Help Managers to plan properly by guiding them to make operational decisions. ________ is/are the source of a firm’s________, which is/are the source of the firm’s ________. Such a strategy describes the company’s overall direction in terms of its various businesses and product lines. Course Hero is not sponsored or endorsed by any college or university. If the organization does not anticipate the learning requirements and leaves people to be on their own, implementation runs into serious problems. 23. It also involves the allocation of resources necessary to achieve the objectives. Report a Violation, Decisions Making: Strategic, Tactical and Operational Decisions | Business Management. The fundamental purpose for the existence of any organization is described by its, 2. Strategic analysis is involved with analyzing the industry in which the organization is operating its business and analysis of both the external and internal environmental factors. d. is developed by a firm before the firm develops its vision. It becomes much easier when competitors do not have offsetting competences. Strategy-formulation concepts and tools, a. Competitors are more likely to respond to competitive actions that are taken by. The complexity in the external domain of business has increased and forecast-based planning may no longer be feasible or reliable. Top management typically develops the strategic plans. 18. The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization.The number of levels in management increases when the size of the business and work force increases and vice versa. Some business decisions are strategic and therefore deserve strategic management. New entrants to an industry are more likely when (i.e., entry barriers are low when…). Delineates, yet links the operational with the strategic among process systems and managers of organizations. The short term C. 3-4 years D. A long time, typically five years 15. One of the foremost things we need to know is the scope of the strategic HR and how successful organizations are leveraging their success on strategic human resource management. Strategy-focused objective­setting is concerned with establishing long-range objectives for the organization to achieve the vision and mission. a. Organizations should, therefore, build ethics into their cultures. There are many sources of competitive advantages: Managers need to recognize these winning business strategies are grounded in sustainable competitive advantage. 8. Prepare equipment and manpower planning. These plans are set by the senior-most managers (directors in the company’s board and the CEO plus other senior-level people). 6. 46. Strategic level production planning helps to achieve the goals in the best possible way. Strategic issues refer to important aspects that require attention in order to achieve the business goals of a company. Strategic management involves the_______, directing, _______ and controlling of a company’s strategy-related decisions and actions. Not only in these external issues, but changes are also taking place. c. Evaluate effectiveness of strategies to be implemented efficiently. 21. b. it creates a framework for internal communication among personnel. The task of strategy choice involves: a. developing plans and activities which will improve the organisation’s performance and competitive position, b. determining how the organisation can be more market and efficiency oriented, c. monitoring whether the organisation is achieving good financial performance. 23. A. Operative. They coordinate services and are keen on planning. Which of the following defines what business or businesses the firm is in or should be in? From being just a support function it has become a key resource for gaining competitive advantage. 2. Their job is to track progress, spot problems and issues clearly, monitor the winds of market and customer change and initiate adjustments as needed. 27. Basic concepts and issues such in Strategic Management are; Organizational philosophy establishes the relationship between the organization and its stakeholders. The time-span of the strategic plan needs to be shorter, sometimes measured in months, in the organizations involved in e-business (especially in e-retailing). Special Weapons for Operations Timeliness, b. The primary responsibility of corporate or business-level strategy making rests mainly with the CEO, the board of directors and other senior-level managers. Content Filtrations 6. Facilities decisions: Size, location and specialisations, 4. Strategic management is a stream of decisions and actions, which leads to the development of an effective strategy to help achieve organizational objectives. 55. Decisions on regular issues. General Electric is a multi-business company. For example, many Indian business houses had a strategy to enter the organized retail segment in 2005-2006 but the high price of retail space made the foray unprofitable. Organizing means an identifiable group of people contributing their efforts towards the attainment of same goal. Strategic decisions are based on what managers_____________, rather than on what they__________. If formulation was talking about things within the realm of the possible, implementation is pushing plans to the realm of attainable. It represents a minor factor in decision-making integrated with analysis. 14. a. Vertical integration: Direction, extent and balance. 70. Because of the liberalization of trade and financial services, companies are becoming more and more globalized. Most successful companies have been found to have a strategic plan in the form of a written document. 91. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit. Competitive advantage can best be described as: 8. 2. Potential development of substitute products. On the other hand, strategic management seeks competitive advantage and sustainable market growth by effectively managing all resources of the organization. 59. Strategic planning involves deciding and developing strategic plans to achieve strategic objectives (or goals). Strategic management focuses on how an organization uses a strategic planning process to make decisions. Which of the following is an issue considered in developing corporate strategies?