1) Illustrate with a DIAGRAM the sequence of the strategic management steps and INDICATE (show) where

the 3 phases begin and end. What is the DIFFERENCE between strategic planning and strategic
management?  (10 pts.)

Strategic management is a continuous process of examining both present and future environments formulating
the organizations objectives and making, implementing and controlling decisions. Strategic planning is about
analysis of data, it is a process

external

Mission Objectives Strategic Strategy

Choice Implement Competitive
ation Advantage
internal

Strategy Strategy
Evaluation
Planning Implementati and Control
on

2(a) What are the uses (&/or significance) of each of the following: vision, mission and

values? DO NOT DEFINE. (5 pts.)
2(b) Differentiate goals and objectives. How do both play a significance in
strategic planning & control? (5 pts.)

2(a) Vision concerns a firm's future business path 

Mission the purpose of being/ existence 

Values beliefs and ideals 

2(b) A goal is a broad primary outcome. An objective is a measurable step you take to

achieve a strategy.  For example, if an organization has a goal to “grow revenues”.
A goal is where you want to be and objectives are the steps taken to reach the goal.
3.) Which must be conducted first - external or internal analysis (DO NOT DEFINE)? Is the order
important in strategic analysis? E.PLAIN your answer. (5 pts.)

External analysis must be conducted first. It is important for businesses to perform

an external analysis because the information gathered would show if there exist
opportunities for growth and expansion which they could exploit and reap the
benefits. On the other hand, performing an internal analysis allows you to identify the
strengths and weaknesses of your organization.  The data generated by an internal
analysis is important because you can use it to develop strategic planning objectives to
sustain and grow your business.

4.) EXPLAIN in a concise manner "strategic fit". (10 pts.)

Strategic fit expresses the degree to which an organization is matching its resources

and capabilities with the opportunities in the external environment. The matching takes
place through strategy and it is therefore vital that the company has the actual
resources and capabilities to execute and support the strategy. 

5.) DEFINE competitive advantage. EXPLAIN COMPARATIVELY the two (2) basic competitive

advantages pursued by business-for-profit organizations in their market(s). Cite the BENEFITS of
attaining them. (10 pts.)

It is the reason behind brand loyalty, and why you prefer one product or service over
another. There are three different types of competitive advantages that companies can
actually use. They are cost, product/service differentiation, and niche strategies. It is the
force that enables a business to have greater focus, more sales, better profit margins,
and higher customer and staff retention than competitors 

6.)  ILLUSTRATE, not define, with an example the VRIO framework in achieving competitive advantage
(5 pts.)