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Business Stategy

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Submitted By norz2015
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Business Strategy
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Chapter 1
The Nature of Strategic
Management

1. Distinguish between long-range planning and strategic planning.
Long-range planning is used to optimize for tomorrow the trends of today, whereas strategic planning is used to exploit and create new and different opportunities for tomorrow. 2. Compare a company’s strategic plan with a football team’s game plan.
A strategic plan is, in essence, a company’s game plan. Just as a football team needs a good game plan to have a chance for success, a company must have a good strategic plan to compete successfully. 3. Describe the three activities that comprise strategy evaluation.
The three fundamental strategy-evaluation activities are (1) reviewing external and internal factors that are the bases for current strategies, (2) measuring performance, and (3) taking corrective actions 4. How important do you feel “being adept at adapting” is for business firms? Explain.
The strategic-management process is based on the belief that organizations should continually monitor internal and external events and trends so that timely changes can be made as needed. 5. Compare the opossum and turtle to the woolly mammoth and saber tooth tiger in terms of being adept at adapting. Students’ answers will vary, but students are likely to make the argument that those species that are adept at adapting are able to survive, while those that are unable to adapt are more likely to perish and become extinct. 6. As cited in the chapter, Edward Deming, a famous businessman, once said, “in God we trust. All others bring data.” What did Deming mean in terms of developing a strategic plan? The strategic-management process can be described as an objective, logical, systematic approach for making major business decisions in an organization. It attempts to organize

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