I.

Write the letter of the correct answer from the word bank (2 pts each)
a. Strategic Management f. Goals
b. Vision g. Objectives
c. Mission h. Action Plans
d. Core Values i. Demographic Factor
e. Strategies j. Social Factors

1. It provides a destination for the organization.

2. This is a guiding light of how to get to the destination
3. These are one or more ways to use the mission statement in order to achieve the vision
statement.
4. It is all about identification and description of the strategies that managers can carry so as
to achieve better performance and a competitive advantage for their organization.
5. These are general statements of what needs to be accomplished to implement a strategy.
6. These are an individual or organization's fundamental beliefs and highest priorities that
drive their behavior.
7. Our attitudes, values, ethics, and lifestyles—influence what, how, where, and when people
purchase products or services.
8.It helps companies define the markets for their products and also determine
the size and composition of the workforce.
9. These are statements of specific actions or activities that will be used to achieve a goal
within the constraints of the objective.
10. These are specific actions and timelines for achieving the goal.

II. Essay ( 30 pts.)

1. Explain Porter's Five Forces Model and its relevance in formulating strategies. For each
competitive force,
discuss one condition that is likely to increase the threat of that force.
2. Compare and contrast vision statements with mission statements.
Describe why a mission statement is so important in the strategic-management process.
3. Discuss the differences between strategy formulation and strategy
implementation.