What Is the First Step in the Strategic Management Process

question 35

Multiple Choice

What is the first step in the strategic management process?

• A) formulating a strategy
• B) defining the current business and its mission
• C) translating a mission into goals
• D) implementing an environmental scan

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Definitions:

Perfectly Competitive Markets

Markets characterized by many buyers and sellers, homogenous products, freedom of entry and exit, and perfect information, where no single participant can influence the market price.

Law of Demand

The principle that, all else being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Competitive Markets

Markets where multiple buyers and sellers have the liberty to engage in trade based on mutual agreements.

Price Setters

Entities, such as companies or regulatory bodies, that have the power to establish prices for goods or services in a market.