Chapter 1 Flashcards
multinational enterprise (MNE)
a firm that engages in foreign direct investment (FDI) by directly controlling and managing value-adding activities in other countries
foreign direct investment (FDI)
a firm’s direct investment in production and/or service activities abroad
business model
a firm’s way of doing business and creating and capturing value
strategic management
a way of managing the firm from a strategic, “big picture” perspective
strategy
an organization’s theory about how to compete successfully
strategy as plan
a perspective that suggests that strategy is most fundamentally embodied in explicit, rigorous formal planning as in the military
strategy as action
a perspective that suggests that strategy is most fundamentally reflected by firms’ pattern of actions
intended strategy
a strategy that is deliberately planned for
emergent strategy
a strategy based on the outcome of a stream of smaller decisions from the “bottom up”
strategy as integration
a perspective that suggests that strategy is neither solely about plan nor action and that strategy integrates elements of both schools of thought
strategy formulation
the crafting of a firm’s strategy
strategy implementation
the actions undertaken to carry out a firm’s strategy
SWOT analysis
a strategic analysis of a firm’s
internal environment
strengths (S)
weaknesses (W)
external environment
opportunities (O)
threats (T)
replication
repeated testing of theory under a variety of conditions to establish its applicable boundaries
vision
articulation of a firm’s envisioned future
mission
statement of a firm’s purpose
top management team (TMT)
the team consisting of the highest level of executives of a firm led by the CEO
Chief Executive Officer (CEO)
the top executive in charge of the strategy and operations of a firm
leadership
transforming organizations from what they are to what the leaders would have them become
strategic leadership
How to most effectively manage organizations’ strategy formulation and implementation processes to create competitive advantage
microfoundation
Proximate causes of a given strategy phenomenon at a level of analysis lower than that of the phenomenon itself
strategy tripod
a framework that suggests that strategy as a discipline has three “legs” or key perspectives:
- industry-based
- resource-based
- institution-based views
competitive advantage
Performance superiority over rivals
stakeholder
any group or individual who can affect or is affected by the achievement of the organization’s objectives
triple bottom line
a performance yardstick consisting of
- economic
- social
- environmental dimensions
balanced scorecard
a performance evaluation method from the
- customer
- internal
- innovation & learning
- financial perspectives
information overload
too much information to process
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
globalization
the close integration of countries and peoples of the world
emerging economy (emerging market)
a label that describes fast-growing developing economies since the 1990s
base of the pyramid (BoP)
the vast majority of humanity, about five billion people, who make less than U.S. $2,000 a year
reverse innovation (frugal innovation)
low-cost innovation from emerging economies that has potential in developed economies
risk management
the identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events
black swan event
an unpredictable event that is beyond what is normally expected and that has severe consequences
scenario planning
a technique to prepare and plan for multiple scenarios (either high or low risk)
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
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
organizational slack
a cushion of resources that allow an organization to adapt successfully to pressures
The title of Chapter 1
Strategizing Around the Globe
