Basic concepts in Stratma Flashcards
A nesting of strategies by level from corporate to business to functional, so that they complement and support one another.
Hierarchy of strategy
A concept of organizational adaptation that proposes that organizations can and do adapt to changing conditions by imitating other successful organizations.
Institution theory
Variables within the organization not usually within the short-run control of top management.
Internal Environment
An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.
Learning Organization
The purpose or reason for an organization’s existence.
Mission
The end result of planned activity
stating what is to be accomplished by when, and quantified if possible
Objectives
A theory proposing that an organization adjusts to changes in the environment through the learning of its employees.
Organizational learning theory
The end result of activities, actual outcomes of a strategic management
process
Performance
A set of four levels of development through which a firm generally evolves into a strategic management.
Phases of strategic management
A broad guideline for decision-making
that links the formulation of strategy with its
implementation.
Policy
A theory that proposes
that once an organization is successfully established in a particular environmental
niche, it is unable to adapt to changing
conditions.
Population ecology
A list of sequential steps that
describe in detail how a particular task or job is to be done.
Procedure
A statement of the activities or
steps needed to accomplish a single-use plan in strategy implementation.
Program
An eight-step process that improves strategic decision making.
Strategic decision-making process
A theory that proposes that organizations adapt to a changing environment and have the opportunity and power to reshape their environment.
Strategic choice perspective
A checklist of questions by
area or issue that enables a systematic analysis of various corporate functions and activities. It’s a type a management audit.
Strategic audit
A set of managerial
decisions and actions that determine the long run performance of a corporation.
Strategic management
External and internal factors
that determine the future of a corporation.
Strategic factors
Development of long-range plans for the effective management of
environmental opportunities and threats in light of corporate strengths and weaknesses
Strategy formulation
A comprehensive plan that states
how a corporation will achieve its mission and objectives.
Strategy
Identification of strengths,
weaknesses, opportunities, and threats that may be strategic factors for a specific company
SWOT analysis
A process by which strategies and policies are put into action through the development of programs, budgets, and procedures.
Strategy implementation
Something that acts as a
stimulus for a change in strategy.
Triggering event
A view of what management thinks an
organization should become.
Vision
A statement of a corporation’s programs in terms of money required.
Budget
The use of business practices to reduce a company’s
impact upon the natural, physical environment.
Environmental sustainability
A process in which
corporate activities and performance results are monitored so that actual performance can be compared with desired performance.
Evaluation and control
An approach taken by a
functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity
Functional strategy
A decision-making mode
characterized by reactive solutions to existing problems, rather than a proactive search for new opportunities.
Adaptive mode
The internationalization of
markets and corporations.
Globalization
A decision-making mode that is a synthesis of the planning, adaptive, and entrepreneurial modes.
Logical incrementalism
A decision-making mode
that involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most
appropriate strategy.
Planning mode
A strategy made by one powerful individual in which the focus is on opportunities, and problems are
secondary.
Entrepreneurial mode
Strategic decisions are unusual and typically have no precedent to follow
Rare
Strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels.
Consequential
Strategic decisions set precedents for lesser decisions and future actions throughout an organization.
Directive
Directors who, though not really employed by the corporation, handle the legal or insurance work for the company or are important suppliers.
Affiliated Director
A theory stating that problems arise in corporations because the agents
(top management) are not willing to bear responsibility for their decisions unless they own a substantial amount of stock in the corporation.
Agency Theory
A range of the possible degree of involvement by the
board of directors (from low to high) in the strategic management process.
Board of directors’ continuum
Commonly agreed obligations of directors, which include: setting corporate strategy, overall direction, mission, or vision; hiring and firing the CEO and top management;controlling, monitoring, or supervising top management; reviewing and approving the use of resources; and caring for shareholder interest.
Board of director responsibilities
