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The process of conducting research and gathering and assimilating external information is called:

• Strategic planning; strategic management
• Assessment; planning
• Strategic management; strategic planning
• Management cycle; brainstorming

Answer explanation

Strategic management is the term used to encompass the entire process of strategy formulation, implementation, and evaluation. On the other hand, strategic planning specifically refers to the initial stage of strategy formulation. This means that strategic management includes not only the planning phase but also the execution and assessment of the strategy. Therefore, the correct answer is strategic management; strategic planning.

________ is the process by which a firm manages the formulation and implementation of its strategy.

• Strategy formulation
• Strategy implementation
• Strategy evaluation
• Strategy manipulation

Answer explanation

Strategy implementation is the phase where the formulated strategy is put into action. It involves translating the strategic plans into concrete actions. This process requires a firm to establish annual objectives, devise policies, and allocate resources effectively.

The two most critical questions that __________ strategy must address are how a company will achieve its objectives today, when other firms may be competing to satisfy the same customer's needs, and how the firm plans to compete in the future.

• Competitive advantage
• Comparative advantage
• An external opportunity
• Opportunity cost

Answer explanation

A competitive advantage refers to something that a firm excels at compared to its competitors. It could be a unique product or service, superior customer service, cost efficiency, or innovative technology. This advantage allows the firm to outperform its rivals and gain a larger market share. Comparative advantage, on the other hand, refers to a country's ability to produce a good or service at a lower opportunity cost than other countries. External opportunity refers to favorable circumstances in the external environment that can benefit a firm. Opportunity cost is the value of the next best alternative that is given up when making a decision.

How can we, as corporate parents, add value to our various lines of business?

• Strategists
• Consultants
• Operatives
• Ethics Officers

Answer explanation

Strategists are the individuals who are most responsible for the success or failure of an organization. They are responsible for developing and implementing effective strategies that align with the organization's goals and objectives. Strategists analyze market trends, competition, and internal capabilities to make informed decisions and guide the organization towards success. Their ability to anticipate and adapt to changes in the business environment greatly impacts the organization's performance. On the other hand, poor strategic decisions can lead to failure and loss of competitive advantage. Therefore, the role of strategists is crucial in determining the overall success or failure of an organization.

Which of the following statements regarding strategy formulation and strategy implementation is the most accurate?

• Competitors in foreign markets may not exist.
• Language, culture, and value systems differ among countries, causing communication barriers and problems in managing people.
• Economies of scale can be achieved from operation in global rather than solely domestic markets.
• Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.

Answer explanation

The answer is "Language, culture, and value systems differ among countries, causing communication barriers and problems in managing people." This is a disadvantage of international operations because when a company operates in different countries, it has to deal with language barriers, cultural differences, and varying value systems. These differences can make communication difficult and can lead to misunderstandings and conflicts among employees. Managing people from different cultural backgrounds also requires a deeper understanding of their values and norms, which can be challenging for a company operating internationally.

All of the following are elements of the strategy diamond except

• Long-range planning
• Short-term planning
• Strategy formulation
• Strategy implementation

Answer explanation

Strategy formulation is particularly important for a firm when it is facing limited resources because it involves the process of determining the best course of action to achieve the firm's long-term goals and objectives. By formulating a clear strategy, the firm can effectively allocate its limited resources in a way that maximizes their impact and ensures the firm's long-term success. This involves making decisions about resource allocation, prioritizing initiatives, and identifying opportunities for growth and competitive advantage.

Within the strategy, diamond ______ refer(s) to decisions about the areas in which a firm will be active, including its products, services, distribution channels, market segments, geographic areas, technologies, and even stages of the value creation process

• Using strategic planning to gain control over decisions and resources.
• Failing to involve key employees in all phases of planning.
• Hastily moving from mission development to strategy formulation.
• Using plans as a standard for measuring performance.

Answer explanation

Strategic planning is a process that organizations use to set goals, make decisions, allocate resources, and develop strategies to achieve their objectives. It is not intended to be used as a means of gaining control over decisions and resources. Instead, strategic planning should involve key employees in all phases of planning, avoid hastily moving from mission development to strategy formulation, and use plans as a standard for measuring performance. The given answer is the exception because it goes against the purpose and principles of strategic planning.

Which one is not a part of strategy formulation?

• Mission development
• Long-range planning
• Industry analysis
• Lobbying

Answer explanation

Industry analysis refers to the process of conducting research and gathering external information about a specific industry. It involves examining various factors such as market trends, competition, customer behavior, and regulatory environment to gain insights and make informed business decisions. This process helps businesses understand the dynamics of the industry they operate in, identify opportunities and threats, and develop strategies to stay competitive. It is an essential step in strategic planning and allows businesses to assess their position in the market and make informed decisions about future actions.

Which is not a part of strategy implementation?

• Total Quality Management
• Strategic Management
• Micro-Management
• Economic Logic

Answer explanation

Strategic management refers to the process through which a company plans, formulates, and implements its overall strategy. It involves analyzing the internal and external environment, setting goals and objectives, making strategic decisions, and allocating resources effectively. This process helps the firm align its actions with its long-term vision and objectives, ensuring that it stays competitive and achieves sustainable success in the market.

Which is not a part of the international strategy lifecycle?

• Corporate
• Functional
• Operational
• Business

Answer explanation

Operational strategy is the correct answer because it focuses on how a company will achieve its objectives in the present, especially when facing competition from other firms. It also addresses how the firm plans to compete in the future, making it critical for determining the day-to-day operations and tactics needed to achieve success.