MGMT 4000 FINAL EXAM
QUESTIONS AND VERIFIED
ANSWERS
Define globalization and identify the role of strategic management in
globalization
Globalization is the internationalization of markets and corporations. It has changed
the way that modern corporations do business. As more industries become global,
strategic management is becoming an increasingly important way to keep track of
international developments and position the company for long-term competitive
advantage.
What are the four main activities of a learning organization
1. Solving problems systematically
2. Experimenting with new approaches
3. Learning from their experiences and history as well as from the experiences of
others
4. Transferring knowledge quickly and efficiently throughout the organization.
Describe and explain the four basic elements of strategic management
1) Environmental scanning is the monitoring, evaluating, and disseminating of
information from the external and internal environments to key people within the
corporation.
2) Strategy formulation is the development of long-range plans for effective
management of environmental opportunities and threats, in light of corporate
strengths and weaknesses.
3) Strategy implementation is the process by which strategies and policies are put
into action through the development of programs, budgets, and procedures.
4) Evaluation and control is the process in which corporate activities and
performance results are monitored so that actual performance can be compared with
desired performance.
What is a strategic decision
A strategic decision deals with the long-run future of an entire organization.
, Strategic decisions are unusual and typically have no precedent to follow. They
commit substantial resources and demand a great deal of commitment from people
at all levels. And they set precedents for lesser decisions and future actions
throughout the organization.
Explain each characteristic of strategic decisions.
1. Rare: Strategic decisions are unusual and typically have no precedent to follow.
2. Consequential: Strategic decisions commit substantial resources and demand a
great deal of commitment from people at all levels.
3. Directive: Strategic decisions set precedents for lesser decisions and future
actions throughout an organization.
What are the 5 responsibilities of the board of directors?
1. Effective board leadership, including the processes, makeup and output of the
board
2. Strategy of the organization
3. Risk vs. initiative and the overall risk profile of the organization
4. Succession planning for the board and top management team
5. Sustainability
Why is the use of the combined Chair/CEO role being increasingly criticized
The use of the combined Chair/CEO role is increasingly criticized because of the
potential for conflict of interest. The CEO is supposed to concentrate on strategy,
planning, external relations, and responsibility to the board. The Chairman's
responsibility is to ensure that the board and its committees perform their functions
as stated in the board's charter. Critics of having one person in both roles ask how
the board can properly oversee top management if the Chairman is also a part of top
management.
What are the responsibilities of top management
Top management responsibilities involve getting things accomplished through and
with others to meet the corporate objectives. Top management's job is
multidimensional and oriented toward the welfare of the total organization.
The CEO, with the support of the rest of the top management team, must
successfully handle two primary responsibilities crucial to the effective strategic
management of the corporation: (1) provide executive leadership and a strategic
vision, and (2) manage the strategic planning process.
QUESTIONS AND VERIFIED
ANSWERS
Define globalization and identify the role of strategic management in
globalization
Globalization is the internationalization of markets and corporations. It has changed
the way that modern corporations do business. As more industries become global,
strategic management is becoming an increasingly important way to keep track of
international developments and position the company for long-term competitive
advantage.
What are the four main activities of a learning organization
1. Solving problems systematically
2. Experimenting with new approaches
3. Learning from their experiences and history as well as from the experiences of
others
4. Transferring knowledge quickly and efficiently throughout the organization.
Describe and explain the four basic elements of strategic management
1) Environmental scanning is the monitoring, evaluating, and disseminating of
information from the external and internal environments to key people within the
corporation.
2) Strategy formulation is the development of long-range plans for effective
management of environmental opportunities and threats, in light of corporate
strengths and weaknesses.
3) Strategy implementation is the process by which strategies and policies are put
into action through the development of programs, budgets, and procedures.
4) Evaluation and control is the process in which corporate activities and
performance results are monitored so that actual performance can be compared with
desired performance.
What is a strategic decision
A strategic decision deals with the long-run future of an entire organization.
, Strategic decisions are unusual and typically have no precedent to follow. They
commit substantial resources and demand a great deal of commitment from people
at all levels. And they set precedents for lesser decisions and future actions
throughout the organization.
Explain each characteristic of strategic decisions.
1. Rare: Strategic decisions are unusual and typically have no precedent to follow.
2. Consequential: Strategic decisions commit substantial resources and demand a
great deal of commitment from people at all levels.
3. Directive: Strategic decisions set precedents for lesser decisions and future
actions throughout an organization.
What are the 5 responsibilities of the board of directors?
1. Effective board leadership, including the processes, makeup and output of the
board
2. Strategy of the organization
3. Risk vs. initiative and the overall risk profile of the organization
4. Succession planning for the board and top management team
5. Sustainability
Why is the use of the combined Chair/CEO role being increasingly criticized
The use of the combined Chair/CEO role is increasingly criticized because of the
potential for conflict of interest. The CEO is supposed to concentrate on strategy,
planning, external relations, and responsibility to the board. The Chairman's
responsibility is to ensure that the board and its committees perform their functions
as stated in the board's charter. Critics of having one person in both roles ask how
the board can properly oversee top management if the Chairman is also a part of top
management.
What are the responsibilities of top management
Top management responsibilities involve getting things accomplished through and
with others to meet the corporate objectives. Top management's job is
multidimensional and oriented toward the welfare of the total organization.
The CEO, with the support of the rest of the top management team, must
successfully handle two primary responsibilities crucial to the effective strategic
management of the corporation: (1) provide executive leadership and a strategic
vision, and (2) manage the strategic planning process.
