Multiple Choice (Strategic Managment)

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SECTION -1 BASIC CONCEPTS OF STRATEGIC MANAGEMENT SUMMARY OF KEY POINTS • Strategic management starts with three key questions: (1) Where is the organization now? (2) If no changes are made, where will the organization be in a few years? (3) If the answers are not acceptable, what specific actions should management undertake? • Strategic management is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. • Strategic management in many organizations tends to evolve in four phases from basic financial planning to forecast-based planning, to what…show more content…
Increasing environmental uncertainty means that corporations must develop strategic flexibility—the ability to shift from one dominant strategy to another. It also demands that the company become a learning organization: an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. Learning organizations avoid stability through continuous self-examination and experimentation. People at all levels, not just top management, are involved in strategic management: scanning the environment for critical information, suggesting changes to strategies and programs to take advantage of environmental shifts, and working with others to continuously improve work methods, procedures, and evaluation techniques. 4. Why are strategic decisions different from other types of decisions? Strategic decisions deal with the long-run future of the entire organization and have three characteristics which differentiate them from other types of decisions: (1) They are rare. Strategic decisions are unusual and typically have no precedent to follow; (2) They are consequential. Strategic decisions commit substantial resources and demand a great deal of commitment; (3) They are directive. Strategic decisions set precedents for lesser decisions and future actions throughout the
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