Strategic Management - Study Mode

[#266] Which of the following requires a firm to establish annual objectives, devise, policies, motivates employees and allocate resources for the execution of strategies?
Correct Answer

(C) Strategy implementation

Explanation

Solution: Strategy implementation requires a firm to establish annual objectives, devise, policies, motivates employees and allocate resources for the execution of strategies. Strategic implementation is a process that puts plans and strategies into action to reach desired goals. The strategic plan itself is a written document that details the steps and processes needed to reach plan goals, and includes feedback and progress reports to ensure that the plan is on track.

[#267] What are the guides to decision making?
Correct Answer

(D) Policies

Explanation

Solution: Policies are the guides to decision making. Policies are standing plans that provide guidelines for decision making. They are guides to thinking that establish the boundaries or limits within which decisions are to be made.

[#268] In strategic thinking, how long is the long term, approximately?
Correct Answer

(D) More than 5 years

Explanation

Solution: In strategic thinking, more than 5 years long is the long term, approximately. Most strategic plans look about 3 to 5 years into the future.

[#269] Buying another company by one company means:
Correct Answer

(B) Acquisition

Explanation

Solution: Buying another company by one company means acquisition. An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's shareholders.

[#270] Low cost, Differentiation and Focus are examples of
Correct Answer

(C) Business strategies

Explanation

Solution: Low cost, Differentiation and Focus are examples of Business strategies. A low-cost provider seeks to sell its products at the lowest price it can, while still making a profit so that it can draw customers to the market. This is the broad version of the low-cost strategy because such companies try to appeal to a broad market.