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Strategic Management: Strategic Managment
Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Strategic Management: Creating Competitive Advantages

Application Questions and Exercises

Summary Review Questions

1. How is "strategic management" defined in the text and what are its five key attributes?

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?

3. Explain the concept of "stakeholder management"? Why shouldn’t managers be solely interested in stockholder management, that is, maximizing the returns for owners of the firm—its shareholders?

4. How can "symbiosis" (interdependence, mutual benefit) be achieved among a firm’s stakeholders?

5. What are some of the major trends that now require firms to have a greater strategic management perspective and empowerment in the strategic management process throughout the firm?

6. What is meant by a "hierarchy of goals"? What are the main components of it and why must consistency be achieved among them?

Application Questions and Exercises

1. Go to the Internet and look up one of these company sites: www.walmart.com, www.ge.com, and www.ford.com. What are some of the key events that would represent the "romantic" perspective of leadership? What are some of the key events that depict the "external control" perspective of leadership?

2. Select a company that competes in an industry in which you are interested. What are some of the recent demands that stakeholders have placed on this company? Can you find examples of how the company is trying to develop "symbiosis" (interdependence and mutual benefit) among its stakeholders? (Use the Internet and library resources.)

3. Provide examples of companies that are actively trying to increase the amount of empowerment in the strategic management process throughout the organization. Do these companies seem to be having positive outcomes? Why? Why not?

4. Look up the vision statements and/or mission statements for a few companies. Do you feel that they are constructive and useful as a means of motivating employees and providing a strong strategic direction? Why? Why not? (Note: Annual reports, along with the Internet, may be good sources of information.)

Ethics Questions

1. A company focuses solely on short-term profits to provide the greatest return to the owners of the business (i.e., the shareholders in a publicly held firm). What ethical issues could this raise?

2. A firm has spent some time—with input from managers at all levels—in developing a vision statement and a mission statement. Over time, however, the behavior of some executives is contrary to these statements. Could this raise some ethical issues?