CHAPTER 1 Flashcards
A statement of a corporation’s programs in terms of money required.
budget
Competitive and cooperative strategies that emphasize improvement of the competitive position of a corporation’s products or services in a specific industry or market segment.
business strategy
A strategy that states a company’s overall direction in terms of its general attitude toward growth and the management of its various business and product lines.
corporate strategy
A nesting of strategies by level from corporate to business to functional, so that they complement and support one another.
hierarchy of strategy
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
objective
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 strategic management.
phases of strategic management
The monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the corporation.
environmental scanning
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
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
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 theory that proposes that organizations adapt to a changing environment and have the opportunity and power to reshape their environment.
strategic choice perspective
Decisions that deal with the long-run future of an entire organization and are rare, consequential, and directive.
strategic decision
An eight-step process that improves strategic decision making
strategic decision-making process
Forces outside an organization that are not typically within the short-run control of top management.
external environment
An approach taken by a functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity
functional strategy
External and internal factors that determine the future of a corporation.
strategic factor
A set of managerial decisions and actions that determine the longrun performance of a corporation.
strategic management
A comprehensive plan that states how a corporation will achieve its mission and objectives
strategy
Development of long range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses.
strategy formulation
A process by which strategies and policies are put into action through the development of programs,
budgets, and procedures.
strategy implementation
Identification of strengths, weaknesses, opportunities, and threats that may be strategic factors for a specific
company
SWOT analysis
Something that acts as a stimulus for a change in strategy
triggering event
A view of what management thinks an organization should become.
vision
Phases of Strategic Management
- Basic financial planning
- Forecast-based planning
- Externally oriented (strategic) planning
- Strategic management
three benefits of strategic management
- Clearer sense of strategic vision for the firm
- Sharper focus on what is strategically important
- Improved understanding of a rapidly changing environment
The internationalization of markets and corporations.
globalization
Effects of Climate Change on industries and companies
- Regulatory Risk
- Supply Chain Risk
- Product and Technology Risk
- Litigation Risk
- Reputational Risk
- Physical Risk
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 concept of organizational adaptation that proposes that organizations can and do adapt to changing
conditions by imitating other successful organizations
institution theory
4 Basic Elements of Strategic Management
Environmental scanning
Strategy formulation
Strategy implementation
Evaluation and control
Characteristics of Strategic Decisions
rare
consequential
directive
Modes of Strategic decision making
Entrepreneurial mode
Adaptive mode
Planning mode
Logical incrementalism
