【正文】 ptable, what specific actions should management undertake? ? Strategic management is that set of managerial decisions and actions that determines the longrun performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. ? Strategic management in many organizations tends to evolve in four phases from basic financial planning to forecastbased planning, to what people refer to as strategic planning (strategy formulation only), and finally to fullblown strategic management (including implementation and evaluation and control). ? Research reveals that panies engaging in strategic management tend to outperform those organizations which do not. (2) They are consequential. Strategic decisions mit substantial resources and demand a great deal of mitment。s responsibilities. d. A statement of corporate objectives. e. The philosophy of the founder. 9A A goal differs from an objective because it a. is openended. () b. is quantified. c. specifies measurable results. d. is clearly specified. e. provides a time horizon.10C As defined in this course, a policy is a. the purpose or reason for a corporation39。s quick response to opportunities and threats. Even in a publiclyheld corporation, the board may be posed of nothing but a few insiders who occupy key executive positions and few good old boy outsiders who go along with the CEO on all major issues. Nevertheless, the rationale for the board of directors seems to be changing from simply one of safeguarding stockholder investments to a broader role of buffering the corporation from its task environment and forcing management to manage strategically. If nothing else, the board can do the corporation a great service by simply offering to top management a different point of view. The board39。s ability to properly evaluate top management.s world?Milton Friedman contends that it is very appropriate. The quote from his classic article, The Social Responsibility of Business Is to Increase its Profits does suggest a certain modification, however, to pure laissez faire. He states that business should work to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free petition without deception or fraud. These rules of the game form the crux of the argument. What should these rules be and who should municate and enforce them? This leads directly into Archie Carroll39。 social responsibilities? Although it can be argued that the rights of current users of tobacco should be respected, is it appropriate that firms should try to attract new users who may not be aware of the risks of tobacco? Use the question of outlawing tobacco as a way of getting at the role of government in the relationship of business and society. Do otherwise laissezfaire, free enterpriseoriented students (who happen to be nonsmokers) call for government intervention on this issue? Try to get the students to assess the impact of their personal values and opinions on their social responsibility judgments.A4. Using Carroll39。s mission statement typically includes both the corporation39。 iron law of responsibility, Carroll points out that a refusal to consider ethical responsibilities is likely to lead to an increase in a firm39。 Separate the positions of CEO and Chairman so that top management cannot unduly influence the board39。s task environment and be prepared to juggle priorities in order to negotiate through a maze of conflicting demands. ? Ethical problems in organizations may be resolved by considering the utilitarian, individual rights, and justice approaches to ethical behavior.SUGGESTED ANSWERS TO DISCUSSION QUESTIONS1. When does a corporation need a board of directors?Given that a number of people do not consider the board of directors to have much of a role in a corporation39。s bank b. Entrance of a new petitor into the industry () c. Change in ownership of the organization d. New CEO e. Awareness by management of decreased profitability 8B The corporate mission is best described by which one of the following? a. A description of the activities carried out by the organization. b. The purpose or reason for the corporation39。s corporations as one way to make the environment more manageable.2. How does strategic management typically evolve in a corporation?Strategic management in a corporation appears to evolve through four sequential phases according to Gluck, Kaufman and Walleck. Beginning with basic financial planning, it develops into forecastbased planning, and then into externallyoriented planning, and finally into a fullblown strategic management system. The evolution is most likely caused by increasing change and plexity in the corporation39。 Strategy formulation is typically not a regular, continuous process but is often initiated by triggering events, such as a new CEO or a performance gap. ? The strategic management model proceeds from environmental scanning to strategy formulation (including establishing mission, objectives, strategies, and policies) to strategy implantation (including developing programs, budgets, and procedures) to evaluation and control. This model is made actionoriented through the strategic decision making process depicted in Figure ..? A large corporation tends to have three levels of strategy (corporate, business, and functional) which form a hierarchy of strategy. ? Strategic decisions are rare, consequential, and directive. ? Top managers tend to use one of three modes of strategy formulation: entrepreneurial, adaptive, planning, or logical incrementalism. SUGGESTED ANSWERS TO DISCUSSION QUESTIONS1. Why has strategic management bee so important to today39。 (3) They are directive. Strategic decisions set precedents for lesser decisions and future actions throug