Chapter 2 Review Questions

Chapter 2 Review Questions

1. The components of strategic management are all directed toward the future success of the organization and require strong links among them. The components are mission, goals, objectives, strategy and implementation. The mission gives the general purpose of the organization, goals give global targets within the mission, objectives give specific targets to goals, objectives give rise to formulation of strategies to reach objectives, and strategies require actions and tasks to be implemented.

2. Projects are used in the strategic management process by being assigned to lower divisions, departments, or individuals to work towards the common goal of the company. Projects will be completed so that they can help implement strategies the company sets in place to help achieve bigger goals.

3. The projects and programs that businesses pursue often vary greatly from one company to another. The projects businesses choose to pursue are determined, in part, by strategic planning. Strategic planning describes a process where managers form business objectives and create a strategy to achieve those objectives.

4. The classification of projects will have a great effect on project selection. The three different kinds of projects are compliance (emergency or must-do), operational (needed to support current operations), and strategic (directly support the organizations’s long-run mission). If a project is classified as a compliance project then that project will be done first because these projects are required to operate before anything else can be done. Operational projects will be next in line as these projects are not emergency but are needed to support current operations. Strategic will be next because they are not emergency or necessarily support current operations but are projects that support the long run.

5. An open, published priority system ensures projects are selected on the basis of their contribution to the...