MAN 4720 Final Exam with Complete Solutions

MAN 4720 Final Exam with Complete Solutions Strategic Management the ongoing process companies use to form a vision, analyze their external environment and their internal organization, and select one or more strategies to use to create value for customers and other stakeholders, especially shareholders Vision contains at least two components - a mission that describes the firm's DNA and the "picture" of the firm, as it hopes to exist in a future time period Strategy an action plan designed to move an organization toward achievement of its vision Mission Defines the firm's core intent and the business or businesses in which intends to compete External Environment a set of conditions outside the firm that affect the firms performance Internal Organization the set of conditions (such as strengths, resources, capabilities, and so forth) inside the firm that affect the choice and use of strategies Strengths resources and capabilties that allow the firm to complete important tasks resources the tangible and intangible assets held by the firm capabilities result when the firm integrates several different resources in a way that allows it to effectively and efficiently complete a task or a series of related tasks core competencies capabilities the firm emphasizes and performs especially well while pursuing its vision distinctive competencies core competencies that differ from those held by competitors competitive advantage exists when a firm's core competencies or its distinctive competencies allow it to create value for customers exceeding the value competitors create for them strategy implementation the set of actions a firm takes to use a strategy after it has been selected Opportunities conditions in the firms external environment that may help the firm reach its vision threats conditions in the firms external environment that may prevent the firm from reaching its vision stakeholders individuals and groups who have an interest in a firms performance and the ability to influence its actions strategic leaders the individuals practicing strategic leadership organizational culture the set of values and beliefs that are shared throughout the firm strategic leadership developing the vision for the firm, designing strategic actions to achieve this vision, and empowering others to carry out those strategic actions top management team the group of managers charged with the responsibility of developing and implementing the firms strategies human capital includes the knowledge and skills of those working for the firm social capital includes all internal and external relationships that help the firm provide value to customers and ultimately to its other stakeholders entrepreneurial culture encourages employees to