1Ŧ Pow ls ƍsLraLeglc managemenLƍ deflned ln Lhe LexL and whaL are lLs flve key

aLLrlbuLes?


2. Briefly discuss the three key activities in the strategic management process.
Why is it important for managers to recognize the interdependent nature of these
activities?
1here key sLraLeglc managemenL process ť sLraLegy analyslsţ sLraLegy formulaLlon ţ and
sLraLegy lmplemenLaLlonŦ
1Ŧ SLraLegy analyslsť
Ŵanalyzlng organlzaLlon goals and ob[ecLlvesŦ
Ŵ analyzlng Lhe exLernal envlronmenL of Lhe flrmŦ
ŴAssesslng Lhe lnLernal envlronmenL of Lhe flrm
Ŵ Assesslng a flrm lnLellecLual asseLsŦ
2Ŧ SLraLegy lormulaLlonť
Ŵ lormulaLlng 8uslnessŴLevel sLraLegyŦ
ŴlormulaLlng CorporaLeŴLevel sLraLegy
Ŵ lormulaLlng lnLernaLlonal sLraLegy
ŴLnLrepreneurlal sLraLegy and compeLlLlve
Ŧ sLraLegy lmplemenLaLlonť
ŴsLraLeglc conLrol and corporaLe governance
ŴCreaLlng effecLlve organlzaLlon deslgns
ŴcreaLlng a learnlng organlzaLlon and an eLhlcal organlzaLlon
ŴlosLerlng corporaLe enLrepreneurshlp

Ŧ Lxplaln Lhe concepL of ƍsLakeholder managemenLƍ? Why shouldn'L managers be
solely lnLeresLed ln sLockholder managemenLţ LhaL lsţ maxlmlzlng Lhe reLurns for owners
of Lhe flrmŸlLs shareholders?
lndlvlduals ţ groupsţ and organlzaLlon who have a º sLake" ln Lhe success of Lhe
organlzaLlonţ lncludlng owners (shareholders ln a publlcly held corporaLlon)ţ employees
ţ cusLomers ţ suppllers ţ Lhe communlLy aL a largeţ and so onŦ
l f Lhey overwhelmlng emphasls ls on generaLlng proflLs for Lhe ownersţ employees may
become allenaLedţ cusLomer servlce may suffer ţ and Lhe suppllers may become
resenLful of conLlnual demands for prlclng concesslonsŦ
. What is "corporate governance"? What are its three key elements
and how can it be improved?
Corporate governance: the relationship among various participants in
determining the direction and performance of corporations. The
primary participants are : 1- the shareholders, 2- the management
(led by the chief executive officer) , 3- the board of directors .
We focus on the three important mechanisms to ensure effective corporate
governance : an effective and engaged board of direction , shareholders activism
and proper managerial rewards and incentives.
5.How can "symbiosis" (interdependence, mutual benefit) be achieved
among a firm's stakeholders?
Recognize that stakeholders are dependent upon each other for their success
and well-being. That is . managers acknowledge the interdependence among
employees, suppliers, customers, shareholders , and the community.

. Why do firms need to have a greater strategic management
perspective and empowerment in the strategic management process
throughout the organization?

Strategic managements requires managers to take an integrative view
of the organization and assess how all of the functional areas and
activities fit together to help an organization achieve its goals and
objectives. This cannot be accomplished if only the top managers in
the organization take an integrative , strategic perspective of issues
facing the firm and everyone else " fends for themselves " in their
independent, isolated functional areas.

7.What is meant by a "hierarchy of goals"? What are the main
components of it, and why must consistency be achieved among
them?
hierarchy of goals : organizational goals ranging from , at the top ,
those that are less specific yet able to evoke powerful and compelling
mental images, to, at the bottoms , those that are more specific and
measurable.
Include its vision , mission and strategic objectives.
Strategic objective tend to be more specific and provide a more direct
means of determining if the organization is moving toward boarder,
overall goals.

Ch.2:
1. Why must managers be aware of a firm's external environment?
They must be aware of what is going on outside their company . If
they focus exclusively on the efficiency of internal operations, the firm
may degenerate into the world´s most efficient producer of buggy
whips or carbon paper. But if they miscalculate the market,
opportunities will be lose -hardly and enviable position for their firm.
2.What is gathering and analyzing competitive intelligence and why is
it important for firms to engage in it?
Helps firm define and understand their industry and identify rival´s
strengths and weaknesses This includes the intelligence gathering
associated with collecting data on competitors and interpreting such
data. Done properly , competitive intelligence helps a company avoid
surprises by anticipating competitors moves and decreasing response
time.
3. Discuss and describe the six elements of the external environment.
- Demographic , sociocultural , political/legal, technological, economic,
global.
Not completed page 46
4. Select one of these elements and describe some changes relating to
it in an industry that interests you.
No answer.


5. Describe how the five forces can be used to determine the average
expected profitability in an industry.
1. The threat of new entrants.
2.The bargaining power of buyers.
3. The bargaining power of suppliers.
4. The threat is substitute products and services.
5.The intensity of rivalry among competitors in an industry.
Each of these forces affects a firm ability to compete in a given
market. Togrther, they determine the profit potential for a particular
industry.it helps you decide whether your firm should remain in or exit
an industry. It provides the rationale for increasing or decreasing
resources commitments.
6. What are some of the limitations (or caveats) in using five-forces
analysis?
First , managers must not always avoid low profit industries ( or low
profit segments in profitable industries(.
Second , five-forces analysis implicitly assumes a zero-sum game ,
determining how a firm can enhance its position relative to the forces.
Third, the five-forces analysis also has been criticized for being
essentially static analysis.
7. Explain how the general environment and industry environment are
highly related. How can such interrelationships affect the profitability
of a firm or industry?
No answer.
8. Explain the concept of strategic groups. What are the performance
implications?
Strategic groups: clusters of firms that share similar strategies.
Or : groups of firms that are more similar to each other that firms that
are not.
This is important because rivalry tends to be greater among firms that
are alike.

Ch.4
1.Explain the role of knowledge in today's competitive environment.
Today , more than 50 percent of the gross domestic product (gdp) in
developed economies is knowledge-based; that is, it is based on
intellectual assets and intangible people skills.
In the knowledge economy , wealth is increasingly created through the
effective management of knowledge workers instead of by the efficient
control of physical and financial assets. The growing importance of
knowledge, coupled with the move by labor markets to buying a set of
talents, capabilities , skills ,and ideas-intellectual capital- not physical
and financial resources.
2.Why is it important for managers to recognize the interdependence
in the attraction, development, and retention of talented
professionals?
Each employee must be motivated and her efforts focused on the
organization´s goals and objectives.
The rise to prominence of the knowledge worker as a vital siurce of
competitive advantage is changing the balance of power in today´s
organization . knowledge workers place professional development and
personal enrichment (financial and otherwise) above company loyalty .
attracting ,recruiting, and hiring the "best and the brightest ,¨ is a
critical first step in the process of building intellectual capital.
3. What are some of the potential downsides for firms that engage in a
"war for talent"?
First , some firms have been adversely affected by very high level of
social capital because it may breed "groupthink¨ - a tendency not to
question shared beliefs.
The second potential limitation is an outcome of the first one . If there
are deep-rooted mindsets , there would be a tendency to develop
dysfunctional human resources practices.
Third, the socialization process (orientation , training , etc.) can be
expensive in terms of both financial recourses and managerial
commitment.
Finally, individuals may use the contacts they develop to pursue their
own interests and agendas that may be inconsistent with the
origination´s goals and objectives.

4. Discuss the need for managers to use social capital in leveraging
their human capital both within and across their firm.
Successful firms are well aware that attraction , development, and
retention of talent is a necessary but not sufficient condition for
creating competitive advantages . In the knowledge economy, it is not
thr stock of human capital that is important, but the extent to which it
is combined and leveraged.
Or / and :
Developing and retaining human capital becomes less important as key
players. Rather, the development os social capital ( that is friendships
and working relationships among talented individuals) gains
importance,because it helps tie knowledge workers to a given firm.
Knowledge workers often exhibit greater loyalties to their colleagues
and their profession that their employing organization .

5. Discuss the key role of technology in leveraging knowledge and
human capital.
Sharing knowledge and information throughout the orginzation can be
a means of conserving resources, developing products and services,
and creating new opportunities.
- Using Networks to share information: e-mail is effective means
of communicating a wide variety of information . it is quick,
easy, and almost costless. Of course , it can become a problem
when employees use it extensively for personal reasons. And we
all know how fast jokes or rumors can spread within and across
organization.

- Electronic Teams : Use Technology to Enhance Collaboration:
The use of technology has also enable professionals to work as
part of electronic, or virtual teams to enhance the speed and
effectiveness with which products are developed

- Codifying Knowledge for Competitive Advantage : there are two
different kinds of knowledge . Tacit knowledge is embedded in
personal experience and shared only with the consent and
participation of the individual . Explicit ( or codified) knowledge ,
on the other hand, is knowledge that can be documents, widely
distributed , and easily replicated.

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