CHAPTER 1
The Nature of Strategic Management

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Introduction

1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.

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2. Although the Internet has increased in popularity, it has actually led to increases in company expenses.

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3. Consumer e-commerce is five times greater than business-to-business e-commerce.

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What Is Strategic Management?

4. Optimizing for tomorrow the trends of today is the purpose of strategic management.

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5. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

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Resource allocation is included in strategy-formulation activities.

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6. The terms strategic management and strategy implementation are synonymous.

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7. A vision statement is, in essence, a company’s game plan.

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8. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice.

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9. The final stage in strategic management is strategy implementation.

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10. Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional.

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11. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies.

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