CHAPTER 1: The nature of Strategy

What is strategic management?

• The process of managing day-to-day operations

• A comprehensive approach to organizational leadership for long-term success

• A financial planning method for short-term goals

• The process of recruiting employees

According to Fred R. David, strategic management consists of three main stages. What are they?

• Planning, execution, and monitoring

• Formulation, implementation, and evaluation

• Analysis, decision-making, and reporting

• Visioning, budgeting, and auditing

Which of the following is NOT a component of strategic management?

• Strategy formulation

• Strategy implementation

• Operational management

• Strategy evaluation

What is the primary goal of strategic management?

• Maximizing shareholder wealth

• Gaining a sustainable competitive advantage

• Reducing operational costs

• Ensuring strict government compliance

Who is primarily responsible for strategic management in an organization?

• Frontline employees

• Middle management

• Top executives and decision-makers

• Customers

Which of the following is NOT a benefit of strategic management?

• Clearer vision and direction

• Increased employee turnover

• Improved decision-making

• Greater adaptability to change

What is an example of an organization using strategic management?

• A company that adjusts its strategy based on market trends

• A company that operates without a defined vision

• A business that focuses only on reducing costs

• A company that ignores external market changes

What is the final stage of the strategic management process?

• Evaluation and control

• Strategy formulation

• Strategy implementation

• Financial auditing

Why is strategic planning important?

• It helps reduce employee engagement

• It allows businesses to react to market changes proactively

• It ensures a company's complete control over competitors

• It focuses only on short-term profits

Strategic management involves:

• Only top-level executives

• A holistic approach involving all levels of management

• Only external consultants

• Primarily customer service representatives