Question

Which of the following is not accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?

a. It entails drawing upon the results and conclusions from analyzing the company's external environment.
b. It entails drawing on the results and conclusions from evaluating the company's own resources and competitive position.
c. It entails developing a "worry list" of problems and issues for managerial strategy making.
d. Identifying the strategic issues and problems that the company faces is the first thing that company managers need to do before starting to analyze the company's internal and external environment.
e. Developing a list of what issues and problems that managements needs to address (and to resolve) should always precede deciding upon a strategy and what actions to take to improve the company's position and prospects.

Answer 1

Option d is incorrect because identifying strategic issues and problems should be done after a complete analysis of the company's external environment and internal resources. Utilizing critical thinking and problem-solving techniques, managers gather information and conduct analyses to prioritize and address these strategic issues.

Step-by-step explanation:

In addressing the student's question regarding identifying strategic issues and problems that require managerial attention, option d is not accurate. It incorrectly suggests that the first task managers should do is to identify strategic issues and problems prior to analyzing the company's internal and external environments. In practice, the identification of strategic issues generally happens after a thorough analysis of the company's external environment, which might include understanding market trends, competitive dynamics, and broader economic factors, in addition to evaluating the company's own resources and competitive position.

Critical thinking and problem-solving involve gathering data and perspectives to analytically assess and address complex situations. This mirrors the process of identifying strategic issues within a business context, which also involves gathering information, seeking expert knowledge, and conducting analyses such as a root cause analysis to get to the heart of challenges.

Therefore, once a company has a detailed understanding of both its internal capabilities and the external factors influencing its industry, it can then develop a priority list or 'worry list' of strategic issues that warrant immediate attention. Crafting a strategy and deciding upon action steps ensue from the insights gained through this methodical approach.