Exploring Strategic Management Concepts

What are the key steps in the strategic planning process?

• Develop a marketing plan

• 1. Define mission and vision 2. Conduct SWOT analysis 3. Set strategic goals 4. Formulate strategies 5. Implement the plan 6. Monitor and evaluate

• Analyze market trends

• Identify target audience

How does corporate strategy differ from business strategy?

• Corporate strategy is only concerned with financial performance.

• Corporate strategy focuses on competition within specific markets.

• Corporate strategy is about the overall direction of the organization, while business strategy focuses on competition within specific markets.

• Business strategy is about the overall direction of the organization.

What are the main types of market entry strategies?

• Product Diversification

• Market Segmentation

• Direct Investment

• Exporting, Licensing, Franchising, Joint Ventures, Wholly Owned Subsidiaries

Define business policy and its importance in organizations.

• Business policy is a set of guidelines that govern an organization's decisions and actions, crucial for providing direction, enhancing decision-making, and ensuring compliance.

• Business policy is only about financial management.

• Business policy is irrelevant to organizational success.

• Business policy is a set of rules for employee behavior.

What is the role of strategy in achieving organizational goals?

• Strategy is primarily focused on employee satisfaction.

• Strategy is essential for aligning resources and efforts towards achieving organizational goals.

• Strategy has no impact on resource allocation.

• Strategy is only important for large organizations.

How do external factors influence policy making in businesses?

• Policy making is solely determined by internal company culture.

• External factors have no impact on policy making.

• External factors only affect marketing strategies, not policy making.

• External factors influence policy making by affecting economic conditions, regulatory requirements, social trends, and technological advancements.

What is SWOT analysis and how is it used in strategic planning?

• SWOT analysis is a financial forecasting tool.

• SWOT analysis is used only for employee performance reviews.

• SWOT analysis is a tool used in strategic planning to evaluate an organization's internal strengths and weaknesses, as well as external opportunities and threats.

• SWOT analysis focuses solely on external market trends.

Explain the concept of competitive advantage in corporate strategy.

• Competitive advantage is solely based on having the largest market share.

• Competitive advantage is the unique edge a company has over its competitors, enabling it to generate greater sales or margins.

• Competitive advantage refers to a company's ability to follow industry trends.

• Competitive advantage is the process of reducing costs by outsourcing production.

What are the risks associated with different market entry strategies?

• Guaranteed profit

• High customer loyalty

• Instant market dominance

• Risks include trade barriers, partner conflicts, capital loss, political instability, and loss of control over brand.

How can organizations align their business policies with their strategic goals?

• By defining strategic objectives, assessing current policies, involving stakeholders, and regularly reviewing policies.

• By ignoring stakeholder feedback and making unilateral decisions.

• By increasing the number of employees without clear roles.

• By focusing solely on short-term profits without a strategic plan.