LIST FIVE NONFINANCIAL BENEFITS OF A FIRM USING STRATEGIC MANAGEM...

125) List five nonfinancial benefits of a firm using strategic management, according to Greenley. Answer: There are eight benefits stated by Greenley. Students are to list any five of the following: 1. increased discipline; 2. improved coordination; 3. enhanced communication; 4. reduced resistance to change; 5. increased forward thinking; 6. improved decision-making; 7. increased synergy; 8. more effective allocation of time and resources. Diff: 2 Objective: 1.06 Describe the benefits of good strategic management. Learning Outcome: Define strategic management and identify its basic concepts 126) Give at least seven reasons given for why some firms do no strategic planning. Answer: Ten reasons are stated; students should list any seven: 1. no formal training in strategic management; 2. no understanding of or appreciation for the benefits of planning; 3. no monetary rewards for doing planning; 4. no punishment for not planning; 5. too busy "firefighting" (resolving internal crises) to plan ahead; 6. to view planning as a waste of time, since no product/service is made; 7. laziness; effective planning takes time and effort; time is money; 8. content with current success; failure to realize that success today is not guarantee for success tomorrow; even Apple Inc. is an example; 9. overconfident; 10. prior bad experience with strategic planning done sometime/somewhere. Learning Outcome: Define strategic management and identify its basic concepts