The Strategic Management Process Is

question 121

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.

---

Definitions:

Net Operating Income

A measure of a company's financial performance, calculated as revenues minus expenses from operations, not including non-operating income and expenditures.

Operating Assets

Assets employed in the day-to-day operations of a business that are expected to generate economic benefits, including both current and non-current assets.

Transfer Price

The price charged by one division of a company for products or services that it supplies to another division within the same company.

Valve Division

A specialized department or segment of a company focused on the production and distribution of valves.