The Strategic Management Process Is

question 23

Multiple Choice

The strategic management process is:

• A) A set of activities that will assure a sustainable competitive advantage and above-average returns for the firm
• B) A decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment
• C) A process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization's resources
• D) The full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness

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Definitions:

Herfindahl-Hirschman Index

A measure used to determine the level of concentration in a market, calculated by summing the squares of the market share percentages of all firms within the industry.

Antitrust Division

A government division responsible for enforcing laws to promote competition and prevent monopolies and other activities that restrain trade.

Moderately Concentrated

Describes an industry structure where a few firms occupy a significant portion of the market share but not to the extent of creating a monopoly or oligopoly.

Pure Monopoly

An industry with a single firm that produces a product for which there are no close substitutes and in which significant barriers to entry prevent other firms from entering the industry to compete for profits.