What is Strategic Management

A strategic decision is one which:

• involves many resources yet is easy to resrve

• is so important that it is usually taken by senior management

• is similar to other decisions so can be taken by junior managers

• involves few resources and has no long term consequences

The decision by Apple to develop a range of new advanced technology products was influenced by all of the following factors except:

• The finance and other resources that the company had available

• The strategic decisions of the company's competitors

• The skills and experience that the company's research teams have developed

• Governments making it a legal requirement for companies to spend resources on new products

Typically, the correct order for the stages of strategic management is:

• analysis of company; implement decision;take decision; review success

• take decision; implement decision; review success; analysis of company

• analysis of company; take decision; implement decision; review success

• review success; analysis of company; take decision; implement decision

According to Michael Porter the two main ways for a business to gain competitive advantage are:

• cost reduction and cheaper products

• differentiated products and new developments

• cost reduction and increased prices

• differentiated products and cost reductions

Which of the following is an example of a business gaining a competitive advantage?

• Cutting costs of production to allow for lower prices

• Attempting to sell the same products as competitors but at higher prices

• Setting higher prices than competitors for products that are clearly inferiors

• Cutting costs of production to make the company seem different to competitors

Which one of the following is a potential advantage for a fashion clothing business in pursuing a 'differentiation' strategy?

• Lower prices could be charged as costs of production would be below competitors'

• No promotional costs would be needed as the product would 'sell themselves'

• Consumers might be prepared to pay higher prices for better designed clothes

• Design and production costs would be minimized allowing the business to become more profitable

Which one is the difference between strategic decisions and tactical decisions are:

• Time period tactical decision for long term strategic for short term

• Time period tactical decision for short term strategic for long term

• Tactical decision taken by senior managers strategic taken by junior managers

• Tactical decisions impact for whole organization strategic decisions impact for one department

Corporate strategic decisions are influenced by:

• Opportunity of the business

• Threats of the business

• Weakness of the business

• Strengths of the business

If organizational structure does not 'follow strategy' then the wrong structure may be used, possibly leading to:

• Join accountable profit center

• low overhead costs

• higher overhead costs

• centralized decision making when decentralization worse

"Structure follow strategy"

• True

• false