Ch.2 Flashcards
Def: strategic management process
Process employed by strategic leaders to conceive and implement a strategy, which leads to sustainable competitive advantage
Def: strategic leadership
Executives’ use of power and influence to direct assets in the pursuit of an organization’s goals
Def: vision
Aspiration of the firm that lays the foundation for its mission – “to” is a common word
Def: mision
What an organization does, including products, services, and which markets – “by” is a common word
Def: values
Principles that guide behavior, used by employees at all levels, helps with complexity and conflict – including both internal conduct and external interactions, and provides a moral compass
Def: Product-Oriented Vision Statements
A product-oriented vision defines a business in terms of a good or service.
Product-oriented visions tend to force managers to take a myopic view of the business landscape.
Def: Customer-Oriented Vision Statements
A customer-oriented vision defines a business in terms of providing solutions to customer needs and are more ~flexible~
Be careful to differentiate between a customer-oriented vision and following customer sentiments.
Don’t define how that need will be met
Def: strategic commitments
Actions to achieve the mission that are:
Costly
Long-term oriented
Difficult to reverse.
Strong ethical values have two important functions:
- Solid foundation to build vision and mission in order to achieve long term success
- Guide rails set in place to help steer the organization towards its goals
Def: Strategic leadership
the behaviors and styles of executives that influence others to achieve the organization’s vision and mission
Def: Upper-echelons theory
organizational outcomes will reflect the values of the top management teams
Formulating Strategy Across Levels
Corporate Strategy (c-suite) - Where to compete: Industry, markets, and geography Business Strategy (president business unit ex. Region/product) - How to compete: Cost leadership, differentiation, or integration Functional Strategy (each area under the SBU) - How to implement a chosen business strategy
Def: Strategic planning
a formal, top-down planning approach; traditional approach
Def: Scenario planning
a formal, top-down planning approach; traditional approach
- Takes place at both the corporate and business levels of strategy
- Addresses both optimistic and pessimistic futures
Def: Emergence planning
begins with a strategic plan, less formal; more modern
