Chapter 1 Flashcards

1
Q

multinational enterprise (MNE)

A

a firm that engages in foreign direct investment (FDI) by directly controlling and managing value-adding activities in other countries

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2
Q

foreign direct investment (FDI)

A

a firm’s direct investment in production and/or service activities abroad

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3
Q

business model

A

a firm’s way of doing business and creating and capturing value

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4
Q

strategic management

A

a way of managing the firm from a strategic, “big picture” perspective

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5
Q

strategy

A

an organization’s theory about how to compete successfully

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6
Q

strategy as plan

A

a perspective that suggests that strategy is most fundamentally embodied in explicit, rigorous formal planning as in the military

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7
Q

strategy as action

A

a perspective that suggests that strategy is most fundamentally reflected by firms’ pattern of actions

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8
Q

intended strategy

A

a strategy that is deliberately planned for

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9
Q

emergent strategy

A

a strategy based on the outcome of a stream of smaller decisions from the “bottom up”

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10
Q

strategy as integration

A

a perspective that suggests that strategy is neither solely about plan nor action and that strategy integrates elements of both schools of thought

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11
Q

strategy formulation

A

the crafting of a firm’s strategy

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12
Q

strategy implementation

A

the actions undertaken to carry out a firm’s strategy

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13
Q

SWOT analysis

A

a strategic analysis of a firm’s

internal environment
strengths (S)
weaknesses (W)

external environment
opportunities (O)
threats (T)

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14
Q

replication

A

repeated testing of theory under a variety of conditions to establish its applicable boundaries

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15
Q

vision

A

articulation of a firm’s envisioned future

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16
Q

mission

A

statement of a firm’s purpose

17
Q

top management team (TMT)

A

the team consisting of the highest level of executives of a firm led by the CEO

18
Q

Chief Executive Officer (CEO)

A

the top executive in charge of the strategy and operations of a firm

19
Q

leadership

A

transforming organizations from what they are to what the leaders would have them become

20
Q

strategic leadership

A

How to most effectively manage organizations’ strategy formulation and implementation processes to create competitive advantage

21
Q

microfoundation

A

Proximate causes of a given strategy phenomenon at a level of analysis lower than that of the phenomenon itself

22
Q

strategy tripod

A

a framework that suggests that strategy as a discipline has three “legs” or key perspectives:
- industry-based
- resource-based
- institution-based views

23
Q

competitive advantage

A

Performance superiority over rivals

24
Q

stakeholder

A

any group or individual who can affect or is affected by the achievement of the organization’s objectives

25
triple bottom line
a performance yardstick consisting of - economic - social - environmental dimensions
26
balanced scorecard
a performance evaluation method from the - customer - internal - innovation & learning - financial perspectives
27
information overload
too much information to process
28
global strategy
(1) strategy of firms around the globe (2) a particular form of international strategy, characterized by the production and distribution of standardized products and services on a worldwide basis
29
globalization
the close integration of countries and peoples of the world
30
emerging economy (emerging market)
a label that describes fast-growing developing economies since the 1990s
31
base of the pyramid (BoP)
the vast majority of humanity, about five billion people, who make less than U.S. $2,000 a year
32
reverse innovation (frugal innovation)
low-cost innovation from emerging economies that has potential in developed economies
33
risk management
the identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events
34
black swan event
an unpredictable event that is beyond what is normally expected and that has severe consequences
35
scenario planning
a technique to prepare and plan for multiple scenarios (either high or low risk)
36
semiglobalization
a perspective that suggests that barriers to market integration at borders are high but not high enough to completely insulate countries from each other
37
global value chain
Chain of geographically dispersed and coordinated activities involved in the production of a good or service and its supply and distribution activities
38
organizational slack
a cushion of resources that allow an organization to adapt successfully to pressures
39
The title of Chapter 1
Strategizing Around the Globe