STRATEGIC MANAGEMENT AND BUSINESS
POLICY COMPREHENSIVE QUESTIONS AND
CORRECT ANSWERS
◉ Four Phases of Strategic Management.
Answer: 1: Basic financial planning
2: Forecast-based planning
3: Externally oriented (strategic) planning
4: Strategic management
◉ Basic financial planning.
Answer: Little analysis is done by managers, sales force provides
external info. Time horizon is usually one year.
◉ Forecast based planning.
Answer: Managers propose 5 year plans; political as managers
compete for larger shares of limited funds. Time horizon 3 to 5
years.
◉ Externally oriented (strategic) planning.
, Answer: Top management takes control. Planning concentrated in
planning staff. Formal strategy formulation, leaves implementation
to lower-management levels. top-down
◉ Strategic management.
Answer: Top management forms groups with people of all levels.
Plans at this point detail implementation, evaluation and control
issues.
◉ For success in long-run companies must....
Answer: execute current activities to satisfy an existing market and
adapt those activities to satisfy new and changing markets
◉ 3 benefits of strategic management.
Answer: -Clearer sense of strategic vision for firm
-Sharper focus on what is strategically important
-Improved understanding of a rapidly changing environment
◉ John Elkington - Triple Bottom Line (sustainability).
Answer: 1. Traditional Profit/Loss
2. People Account - The social responsibility of the organization
3. Planet Account - the environmental responsibility of the
organization
POLICY COMPREHENSIVE QUESTIONS AND
CORRECT ANSWERS
◉ Four Phases of Strategic Management.
Answer: 1: Basic financial planning
2: Forecast-based planning
3: Externally oriented (strategic) planning
4: Strategic management
◉ Basic financial planning.
Answer: Little analysis is done by managers, sales force provides
external info. Time horizon is usually one year.
◉ Forecast based planning.
Answer: Managers propose 5 year plans; political as managers
compete for larger shares of limited funds. Time horizon 3 to 5
years.
◉ Externally oriented (strategic) planning.
, Answer: Top management takes control. Planning concentrated in
planning staff. Formal strategy formulation, leaves implementation
to lower-management levels. top-down
◉ Strategic management.
Answer: Top management forms groups with people of all levels.
Plans at this point detail implementation, evaluation and control
issues.
◉ For success in long-run companies must....
Answer: execute current activities to satisfy an existing market and
adapt those activities to satisfy new and changing markets
◉ 3 benefits of strategic management.
Answer: -Clearer sense of strategic vision for firm
-Sharper focus on what is strategically important
-Improved understanding of a rapidly changing environment
◉ John Elkington - Triple Bottom Line (sustainability).
Answer: 1. Traditional Profit/Loss
2. People Account - The social responsibility of the organization
3. Planet Account - the environmental responsibility of the
organization
