CHAPTER 1 SM

What does strategic management primarily involve?

• Managing daily operations

• Drafting, implementing, and evaluating decisions

• Only planning and forecasting

• Setting short-term objectives

Which of the following best defines a strategy in management?

• A detailed financial plan

• A marketing campaign

• A method for employee training

• Actions taken to ensure an organization is better off than competitors

What is the first stage of the strategic management process?

• Resource allocation

• Strategy formulation

• Strategy implementation

• Strategy evaluation

Which term is often used interchangeably with strategic planning?

• Corporate planning

• Operational planning

• Contingency planning

• Tactical planning

What is the primary focus of strategy evaluation?

• To allocate resources

• To develop new products

• To measure performance and take corrective actions

• To set annual objectives

What is a key component of the strategic management process?

• Only strategy formulation

• Only strategy implementation

• Strategy formulation, implementation, and evaluation

• Only strategy evaluation

What does corporate strategy refer to?

• A specific marketing strategy

• The overall plan or direction of an organization

• The overall plan for short-term objectives

• A financial investment plan

Which of the following is NOT a part of the strategic management process?

• Daily operations management

• Strategy formulation

• Strategy implementation

• Strategy evaluation

What is the role of planning in management?

• To develop financial reports

• To prepare ways to use resources efficiently

• To create marketing strategies

• To manage employee performance

What is the significance of having a vision and mission in an organization?

• They are not necessary for small businesses

• They are only for marketing purposes

• They are used to evaluate employee performance

• They set the direction for the company