Arsi University

College of Business and Economics

Department of ACFN
Course title: strategic management, Assessment 1 for Acfn 2nd year students, campus:
Bishoftu

Name Andualem Getu ID No- 1366/11

Part I Write “True” if the statement is correct or “False” if it is incorrect (1 point each)

True 1.Strategic management is concerned with gaining and maintaining competitive

advantage what rival firms can do.

True 2.A mission should stretch an organization in terms of its current position and
performance and it should help employees feel involved and motivated to be part of the
organization's future.

True 3. Entrepreneurial opportunistic approach focus on capitalizing the opportunities rather

than problem solving.

Fasle 4. Adaptive approach focus on capitalizing the opportunities rather than problem solving.

True 5. Brainstorming sessions are regularly used as a way to develop new ideas or to solve
complex problems.

Part II: Choose the best answer (1 point each)

B 1.--------------Should be designed and articulated during strategy formulation, set and
administered during strategy implementation, and reaffirmed or changed during strategy
evaluation.

A. vision C. Business Ethics

B. mission D. Corporate social policy E. None

A 2. Which one is not characteristics of visionary leaders?

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 A. Search for ideas, concepts, and ways of thinking until clear vision crystallizes.

B. Act in a supportive and expressive way.

C. Measure the failure of the organization in terms of its ability to fulfill the vision.

D. Relate the vision to the cares and concerns of individual

A 3. -------------are guides to decision making and address repetitive or recurring situations.

A. Policies B. objectives C. Procedures D. mission

Part III: Give precise answer for the following questions (4 point)
1.What is the business environment and why do organizations analyze it?(2point)

2.What is the significance of strategy activity mapping, and how can it be used to enhance
competitive advantage?(2 point)

Strategic management Assessment 1

Part III answers

1. Business environment refers to all internal and external forces, elements and factors
which influence the development, performance, and outcome of a business. In short,
business environment is the surroundings where business firm grow up. Environmental
adaptation is the essence of business survival and growth.
Environmental analysis is a strategic tool. It is a process to identify all the external and
internal elements, which can affect the organization's performance. The analysis entails
assessing the level of threat or opportunity the factors might present. Businesses are
greatly influenced by their environment.

The environment signal can be of 3 types:-

a. Fad (temporary)
b. Trend (some momentum and durability, predictable)
c. Megatrend (longer duration)
Managers should pay attention to trend and megatrends. They should anticipate them,

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 understand them and identify opportunities and threats in them.
Techniques of Environmental Analysis

1. Scanning
Scanning involves acquiring information from external environment to try to detect
trends in some way. It detects emerging trends that have potential impact on business.

2. Monitoring
The scanned information should be monitored and analyzed that in which way they are
beneficial to the organizations. The monitoring helps to forecast the future trends. It
involves tracking environmental trends and events.

3. Forecasting
This is the step to forecast the future situations. It focuses on what is likely to happen. It
lays out a path for anticipated changes. Scenario building, Delphi technique,
extrapolation can be useful for forecasting.

4. Assessment
This step identifies key opportunities and threats. In this step, organization evaluates
how it has been success to forecast the environments and how the organization stands
in relation to other competitors for same resources and customers. It is review phase.

2qs. Ans -Strategy maps help you identify key goals and uncover gaps in your strategy before
you set anything in stone and initiate execution.

A strategic map allows you to assess your organization’s overall performance at a

glance, while also giving you the ability to dig deeper into individual components of the
strategy when required.
Four benefits of strategy mapping

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1.Access multiple levels
A strategic map allows you to assess your organization’s overall performance at a
glance, while also giving you the ability to dig deeper into individual components of the
strategy when required.

This lets you identify the short-term tactics and objectives that must be carried out to
service the long-term aspirations outlined by the strategy.

2. Delegate tasks more efficiently

A strategy map identifies the disparate tasks that must be performed to realise the
strategy, making it easier to break down and analyses.
3. Greater organizational involvement
By basing your strategic mapping on a cloud platform such as StrategyBlocks, you can
bring the whole organization together to contribute in the process.
Strategic progress is easily communicated to every individual via the mapping system,
clearly identifying each person’s role and place within the strategy.

4. Better risk management

The holistic view of the strategy facilitated by mapping allows you to quickly spot where
deficiencies and weakness lie, and come up with appropriate solutions.

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 Arsi University

College of Business and Economics

Department of ACFN

Course title: strategic management, Assessment 2 for Acfn 2nd year students, campus:
Bishoftu

Name -Andualem Getu IDNo__1366/11____________

Give precise answer for the following questions

Answers of Assessment 2

1. What Is Strategic Management?

Strategic management is the management of an organization’s resources to achieve its goals
and objectives. Strategic management involves setting objectives, analyzing the competitive
environment, analyzing the internal organization, evaluating strategies, and ensuring that
management rolls out the strategies across the organization.

2.Write and explain the stages of strategic management?

 goal-setting,
 analysis,
 strategy formation,
 strategy implementation and
 strategy monitoring.

Goal-setting is to clarify the vision for your business. This stage consists of identifying three key
facets: First, define both short- and long-term objectives. Second, identify the process of how to
accomplish your objective. Finally, customize the process for your staff; give each person a task
with which he can succeed.

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Analysis is a key stage because the information gained in this stage will shape the next two
stages. In this stage, gather as much information and data relevant to accomplishing your
vision. The focus of the analysis should be on understanding the needs of the business as a
sustainable entity, its strategic direction and identifying initiatives that will help your business
grow. Examine any external or internal issues that can affect your goals and objectives. Make
sure to identify both the strengths and weaknesses of your organization as well as any threats
and opportunities that may arise along the path.

Formulate a Strategy
The first step in forming a strategy is to review the information gleaned from completing the
analysis. Determine what resources the business currently has that can help reach the defined
goals and objectives. Identify any areas of which the business must seek external resources.

Strategy Implementation
Successful strategy implementation is critical to the success of the business venture. This is the
action stage of the strategic management process. If the overall strategy does not work with
the business' current structure, a new structure should be installed at the beginning of this
stage. Everyone within the organization must be made clear of their responsibilities and duties,
and how that fits in with the overall goal .

Evaluate and Control

Strategy evaluation and control actions include performance measurements, consistent review
of internal and external issues and making corrective actions when necessary. Any successful
evaluation of the strategy begins with defining the parameters to be measured. These
parameters should mirror the goals set in Stage 1. Determine your progress by measuring the
actual results versus the plan.

Monitoring
Monitoring internal and external issues will also enable you to react to any substantial change
in your business environment. If you determine that the strategy is not moving the company
toward its goal, take corrective actions. If those actions are not successful, then repeat the

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strategic management process. Because internal and external issues are constantly evolving,
any data gained in this stage should be retained to help with any future strategies.

3. List and explain strategic management approach?

There four approaches to strategic management are ;

 Classical,
 Evolutionary,
 Systemic and
 Processual

Classical aproach
The classical approach to strategy making is the deliberate process of developing a strategy to
maximize profit. This approach, though described as classical, was mainly developed and
propounded by management strategists in the 1960s such as Igor Ansoff and Alfred Sloan.
Sloan, the former chief of General Motors, was credited with much of the organization’s early
success predominantly due to his approach of thoughtful examination of the internal and
external environment and then developing a strategy to direct resources to meet the
company's long-term goals. The long-term aim of the classical approach to strategy is precisely
to make a profit, and this is best summed up in Sloan's words from his biography;

This very rational approach has advantages where a change in markets and the industry move
relatively slowly and where reasonable confidence can be achieved in long-term financial
modeling. The classical approach relies on the strategic capability being concentrated in the
organizational leader and his or her ability to suitably commanding the organization. For this
reason, particularly due to cognitive limitations in decision making by individuals, many
organizations are adopting an approach that, while focusing on business profitability,
acknowledges the dynamic processes acting upon and within the organization.

Evolutionary aproach
The evolutionary approach to strategy is based on the view that the organization is operating
within an economic environment that is ever changing. The role of strategy, in this case, is to

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respond to the environment for survival and profit. The main reason that this process is known
as evolutionary is that it is similar to Darwinian theory in biology where only those individuals,
or in this case strategies, best equipped to survive environmental or economic pressures do so
(Colin White, 2004). An example of this is the strategy of Sony during the 1980s where they
released well over 100 different versions of their portable cassette player, the Walkman, and
allowed the market to decide which would survive and which would be removed from the
market through failure.

Processual aproach
The processual view is that the business environment is messy and largely unpredictable
(Richard Whittington, 2001). Additionally, with this approach, there is an acknowledgement
that decision-makers cannot act with pure reason and that only a few factors affecting a
decision can be dealt with. This limitation of human cognition is known as bounded rationality

Ultimately, because there is an acceptance that the world is messy and unpredictable, it is
accepted that maximising profit is not within the control of the strategist and sufficient profit
becomes the goal. To achieve this, there is also a prevalence of satisficing in environments
which are tolerant of under-performance) where the decision maker looks for a satisfactory,
rather than an optimal, alternative.

Systemic approach
The systemic approach is taken by those that understand the need to play by the local rules
(Richard Whittington, 2001). The cultural context is key to the development of the strategy. This
may be a function of the way that a family culture influences a business or may also be
influenced by the local cultures with different levels of uncertainty avoidance, power distance,
collectivism, masculinity and long-term vs short-term orientation. The systemic approach
toward strategy is the deliberate development of a strategy to meet cultural and societal needs
while maintaining sufficient profit.

4. Discuss the benefit of strategic management?

Strategic management offers the following benefits:

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  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.
 It allows fewer resources and less time to be devoted to correcting erroneous or ad hoc
decisions.
 It creates a framework for internal communication among personnel.
 It helps integrate the behavior of individuals into a total effort.
 It provides a basis for clarifying individual responsibilities.
 It encourages forward thinking.
 It provides a cooperative, integrated, and enthusiastic approach to tackling problems
and opportunities.
 It encourages a favorable attitude toward change.
 It gives a degree of discipline and formality to the management of a business.

5. Describe a code of business ethics and ‘’unethical business can be very expensive
‘’what does it mean?
A code of ethics is a guide of principles designed to help professionals conduct business
honestly and with integrity. ... A code of ethics also referred to as an "ethical code," may
encompass areas such as business ethics, a code of professional practice and an employee
code of conduct.

Ethics can be defined as going beyond what is legal and doing what is right, even when no
one is looking. So when we talk about unethical behavior in business, we're talking about
actions that don't conform to the acceptable standards of business operations, failing to do
what is right in every situation.

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 Arsi University

College of Business and Economics

Department of ACFN

Course title: strategic management, Assessment 3 for Acfn 2nd year students, : Bishoftu
campus

Name_Andualem Getu ID No_ 1366/11

Part I: Choose the best answer

1. Developing a vision and mission, identifying an organization's external opportunities and

threats, and determining internal strengths and weaknesses are all __________ activities.

A. Strategy-formulation B. Strategy-implementation

C. Long-range planning D. Short-range planning

E. None of the above

2. The means by which long-term objectives will be achieved?

A. Mission statements B. Strategies. C. Vision statements. D. Long-term

goals.

E. policies

3. Competitive rivalry will be high if:

A. The industry is fragmenting B. There are a few strong players in the industry C.
There is a high degree of differentiation D. The industry is in its infancy

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 4. A substitute product or service is:

A.A competitor's product or service B. An alternative way of meeting the same needs
C. A new entrant into the industry D. A less attractive way of meeting the same need

Part II: Give precise answer for the following questions.

1. Discuss levels at which strategy operates in an organization.

Strategy can be formulated at three levels, namely,

o the corporate level,

o the business level, and
o The functional level.

At the corporate level, strategy is formulated for your organization as a whole. Corporate strategy deals
with decisions related to various business areas in which the firm operates and competes

2. What is the difference between mission statement and vision statement?

A Mission Statement defines the company's business, its objectives and its approach to reach
those objectives.

A Vision Statement describes the desired future position of the company. Elements of Mission
and Vision Statements are often combined to provide a statement of the company's purposes,
goals and values.

3. List and explain approaches to Environmental Scanning.

Approaches to Environmental Scanning:

The experts have suggested three approaches, which could be adopted for, sort out
information for environmental scanning.

1. Systematic Approach: Under this approach, information for environmental scanning is

collected systematically. Information related to markets and customers, changes in legislation
and regulations that have a direct impact on an organization’s activities, government policy
statements pertaining the organization’s business and industry, etc, could be collected
continuous updating such information is necessary not only for strategic management but also
for operational activities.

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 2. Ad hoc Approach: Using this approach, an organization may conduct special surveys
and studies to deal with specific environmental issues from time to time.

3. Processed-form Approach: For adopting this approach, the organization uses

information in a processed form available from different sources both inside and outside the
organization

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