The Strategic Management Process (Scenario)

question 24

Multiple Choice

The Strategic Management Process (Scenario)
Kerry is vice-president of operations at Delta Corp. The company president has asked Kerry to lead the strategic management process that will help guide Delta through the next five to ten years. At next week's management meeting, Kerry must give a presentation that explains the process. In preparation, Kerry begins by reviewing the steps in the strategic management process from his university textbook.
-Kerry will also need to assess industry trends,level of competition,labour supply,and pending legislation that might have an impact on Delta's operations.This occurs at which step of the strategic management process?

• A)conduct internal analysis
• B)conduct external analysis
• C)write a business plan
• D)identify the organization's current mission,objectives,and strategies

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Definitions:

Face Amount

The nominal or dollar value printed on a financial instrument, such as a bond or insurance policy.

Specified Rate

A predetermined interest rate detailed in a financial agreement or instrument.

Liquidity Risk Premium

An additional return that investors demand for holding securities with low liquidity, compensating for the cost associated with the inability to quickly sell the asset.

Corporate Bond

A corporate bond is a debt security issued by a corporation to raise funding, which promises to pay back the principal along with interest at a specified maturity date.