MANIQUIZ, DIANNE CHARLES F.

08/09/2022
3MKTG-3 Strategic Management

MODULE 1 QUIZ 1

1.Suppose you are the Managing Director of an organization. Losses are being incurred by your
organization as a result of poor management and decision-making. How will you evaluate the situation and
get your company out of it?

If I were the managing director of an organization that was experiencing losses due to poor performance
and decision-making, I would first need to understand the entire situation or its cause, such as whether it was due
to a lack of resources. Lack of people, lack of motivation or ability? Because, through learning its roots, we can
create a plan to answer it. Second, I need to check all the points and listen to them. Ask them about what they
think was needed in order for us to get out of it and list all the possible important points. Third, check if we're on
the same page or if all of us are communicating and thoroughly understanding the situation. Fourth, in order to
minimize this incident from happening again, I may need to enhance my employees' skills in order to know if
they have what it takes to do what's expected.

2. Which among the six definitions given in your module you think is the most easy to understand?
Elaborate your answer.

The most easy to understand is the Financial Benefits, Because it Formalized strategic management (strategic
planning and implementation) that does result in superior performance by organizations and business, according
to studies. The process makes a difference in the recorded measurement of profits, sales, and return on assets.
Organizations that adopt a strategic management approach can expect that the new system will lead to improved
financial performance.

3. What do think is the importance of studying Strategic Management?

Organizations that adopt a strategic management approach can expect that the new system will lead to improved
financial performance. Yoo and Digman emphasize that strategic management is needed to cope with and manage
uncertainty in decision making. Regardless of the profitability of strategic management, several behavioral effects
can be expected to improve the welfare of the firm. Strategic management provides a framework for improved
coordination and control of activities that minimizes the effects of adverse conditions and changes. It allows more
effective allocation of time and resources to identified opportunities, as well as an objective view of management
problems. It provides a cooperative, integrated, and enthusiastic approach to tackling problems and opportunities,
and encourages a favorable attitude towards change.

4. Discuss the steps in Strategic Management Process.

1. Clarify your vision Setting well-defined goals should clarify your vision for your organization. This stage
comprises three important tasks: identifying your short-term and long-term objectives, determining the process
for accomplishing your goals and customizing the process for your staff. Your objectives should be realistic,
detailed and in line with your values. For the final task, consider writing a mission statement that clearly
communicates your objectives to your shareholders and staff. Make sure you assign each of your staff members
a task they can perform effectively.
2. Collect and analyze information This stage is important because the information you gain can have an impact
on the next two steps. Collect as much knowledge as you can on how to achieve your vision. During the analysis,
you should focus on identifying your company’s needs for sustaining itself, the strategic direction it is taking and
the initiatives that can help it grow. You should also examine any internal or external factors that can have an
impact on your ability to accomplish your objectives.

3. Devise a strategy When you are making a plan, you should first review the information you have obtained in
the analysis stage. Then, identify the resources currently available in your organization that can help you reach
your objectives. Also, find out if you need external resources. Next, create a list of problems that are affecting
your company in order of importance. Once you have completed these tasks, you can proceed to develop your
strategy. Since economic and business situations can change, you should also have alternative approaches for
each stage of your strategic management plan.

4. Execute your strategy Implementing your strategy is the action stage of your strategic management process.
Everybody in your company should have a clear idea of what they need to do and how they will contribute to the
overall goal. Also, you should have already secured all the funds and resources required for the project at this
point. Once your staff is ready and the resources are in place, you can start implementing your strategy.

5. Evaluate and control To evaluate and control the effectiveness of your strategic management plan, you have
to create and use performance measurements, regularly review internal and external factors, and take corrective
measures when necessary. If your strategy is not helping your company achieve its goals, you need to take
corrective actions. You can evaluate your progress by comparing the actual results with your plan.

5. Explain the characteristics of Strategic Management.

Following are the 8 characteristics of strategic management:

1) Long-Term Issues

The issues that strategic management handles are usually of long-term nature. These issues do not necessarily
affect the organization immediately but will benefit the organization in the future. For example, if a company
spends on the education of its employees, it may not witness increases in productivity in the short-run, but in due
course, highly educated employees will deliver better results and will also help in increasing the returns.

That is why strategic management gives you a big picture of the organization and you may not see any result in
short term. They are implemented to achieve long-term goals but also they are very effective in several short-term
scenarios.

2) Competitive Advantage

Strategic management assists the managers in looking for fresh avenues for achieving sustainable competitive
advantage. When strategic management principles are applied regularly in the proceedings of the organization,
managers can increase the number of satisfied customers, provide goods and services at economical prices, and
can develop a highly satisfied workforce.

3) Impact on Operations

An effective strategic management process affects operational issues positively. For example, if increases in
salary and performance are correlated then this would increase the operational productivity, as the employees will
be motivated to put more effort into their work. Operating decisions are the ones that involve topics like deciding
the best way to handle sales with a particular segment of customers or making decisions regarding selling products
on credit. Decisions concerned with operational issues are made by lower-level managers.
4) Future-Oriented

Strategic management makes decisions regarding situations that would occur in the future and are not a part of
the day-to-day activities. Managers are ignorant about the after-effects of their decisions because of the dynamic
and uncertain business environment.

5) Complex

Since strategic management is uncertain, it becomes complex as well. Managers come across situations related to
the business environment that is not easy to understand. There is a need for analysing internal and external
environments.

6) Organisation-Wide

The implementation of strategic management affects the entire organization and not merely the operation on
which strategic management principles are applied. It entails strategic choices and is a systematic approach. So,
business organizations need to implement strategies carefully and wisely because it affects an organization as a
whole and also gives results that benefit the organization as well.

7) Long-Term Implications

The implications of strategic management are long-term and do not affect the routine operations of the
organizations. The concepts of strategic management are concerned with the mission, vision, and objectives of
the organization.

8) Facilitates Strategic Implementation

Strategic management makes sure that strategies are effectively executed and implemented with the help of
action-oriented plans and it is a very very important step because if strategies are good enough but are not
implemented properly then they will not give the results the company expects.