1.

Compare and contrast the activities involved in strategy formulation and those in strategy
implementation.
Answer:

Strategy Formulation Strategy Implementation

Developing a vision and a mission
Identifying an organization’s external
opportunities and threats
Determining internal strengths and weaknesses
Establishing long-term objectives
Generating alternative strategies
Choosing particular strategies to pursue
Deciding what new businesses to enter, what
businesses to abandon whether to enter
international markets
Deciding whether to expand operations or
diversify
Deciding whether to merge or form a joint
venture
Deciding on how to avoid a hostile takeover.
Establish annual objectives
Devise policies
Motivate employees
Allocate resources so that formulated strategies
can be executed
Developing a strategy-supportive culture
Creating an effective organizational structure
Redirecting marketing efforts
Preparing budgets
Developing and using information systems
Linking employee compensation to
organizational performance.

2. Compare and contrast vision statements with mission statements.

Answer:
In general, a mission statement defines what an organization is currently doing, while a vision
statement is basically the ultimate goal of what they'd like to accomplish. The mission is what
people do in order to achieve the vision. It is the how (mission) versus the why (vision).

3. As cited in the chapter, Dale McConkey says, “plans are less important than planning.” In terms
of strategic management and its benefits, what does McConkey mean?
Answer:
It means that the manner in which strategic management is carried out is therefore exceptionally
important. A major aim of the process is to achieve understanding and commitment from all
managers and employees. Understanding may be the most important benefit of strategic
management, followed by commitment. When managers and employees understand what the
organization is doing and why, they often feel a part of the firm and become committed to
assisting it. This is especially true when employees also understand links between their own
compensation and organizational performance. Managers and employees become surprisingly
creative and innovative when they understand and support the firm’s mission, objectives, and
strategies. A great benefit of strategic management, then, is the opportunity that the process
provides to empower individuals.

4. Which stage of strategic management do you feel is the most important?

Answer:
 Strategy Implementation is arguably the most important part of the entire strategic management
process. At this point, each member of the team should have a clear understanding of the plan and
should know how they play a part within it. This is the stage where your strategy is put into
action.

5. In an organization, at which three hierarchal levels would strategy formulation, implementation,

and evaluation activities occur?
Answer:
Corporate, Divisional or Strategic business unit and Functional.

6. Explain how and why firms use social networks these days to gain a competitive advantage.
Answer:
Monitoring and measuring your brand via social media enables you to track what your customers
are saying online about your company and products. It offers a competitive advantage by
providing information on comparisons customers draw between you and your competitors, which
helps you to make decisions about pricing and customer preferences.

7. In order of importance, list six benefits of a firm engaging in strategic management.

Answer:

 It allows for identification, prioritization, and exploitation of opportunities.

 It provides an objective view of management problems.
 It represents a framework for improved coordination and control of activities.
 It minimizes the effects of adverse conditions and changes.
 It allows major decisions to better support established objectives.
 It allows more effective allocation of time and resources to identified opportunities.

8. Compare strategic planning with long-range planning.

Answer:
Long-range planning is usually considered to assume present knowledge about future
conditions. It looks to make certain the plan's exact results over the period of its
implementation.
Strategic planning, however, assumes that your organization must be quick to respond to a
dynamic, changing environment, which may require changes in the future. Strategic planning,
then, points out the importance of making decisions that will ensure your organization's ability
to successfully respond to changes in the environment.

9. Explain how a firm can achieve sustained competitive advantage

Answer:
Firms can achieve sustained competitive advantage by understanding the market and its
segments. Look for those niches that aren’t well serviced by competitors and can be profitably
targeted and sold to. Developing an understanding of what customers really want and establish
a value proposition that grabs their attention. Working out the key things that you need to do
really well to support and deliver the value proposition. For example, service levels, quality,
branding, pricing, etc. Understanding what your strengths and core competencies are and how
you can use these in innovative ways to provide value to your chosen market. And lastly,
designing your business model to support and deliver the value proposition.

10. . List three financial and four nonfinancial benefits of a firm engaging in strategic planning.
Answer:
Financial Benefits
 1. Improvement in sales
2. Improvement in profitability
3. Improvement in productivity
Non-Financial Benefits
1. Enhanced awareness of external threats
2. Improved understanding of competitors’ strategies
3. Increased employee productivity
4. Clearer understanding of performance–reward relationships