STM Ch2 Qz2 Fall22

The fundamental purpose of strategy is to develop, maintain and sustain competitive advantage

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Strategic management is a multi-level process that is aimed mainly at the formulation of successful strategies for a company

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The steps involved in the strategic management process are interdependent: any change is one particular step can significantly affect the other step/s

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A realized strategy is the plan at the beginning, while a deliberate/intended strategy is how it worked out at the end

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The ultimate authority to make strategic decisions lies with the senior-most executives, however the board of directors can object to their decisions or reject them

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Stage 2 and 3 of the strategic management process must occur side-by-side rather than sequentially, because strategies are built on assumptions which, in the absence of perfect knowledge, will never be perfectly correct

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A business unit is a self-contained division (with its own functions—for example, finance) that provides a product or service for a particular market

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Following would be an example of stretch objective from Bahria University’s perspective: “By 2025, BU will be in the list of the best universities of Rawalpindi and Islamabad”

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Front-line managers are responsible for supervising a particular functional area i.e. a task, activity, or operation like accounting, marketing, R&D, information technology, or logistics

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A company’s mission refers to its overall goal: all company processes and activities should contribute towards its achievement

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