Chapter 1 Flashcards
Romantic View of Leadership
situations in which the leader is the key force determining the organizations success–or lack there of
External control view of leadership
situations in which external forces–where the leader has limited influence–determine the organization’s success
strategic management
the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages
strategy
the ideas, decisions, and actions that enable a firm to succeed
competitive advantage
a firm’s resources and capabilities that enable it to overcome the competitive forces in it industry(ies)
operational effectiveness
performing similar activities better than rivals
stakeholders
individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large
effectiveness
tailoring actions to the needs of an organization rather than wasting effort, or “doing the right thing”
efficiency
performing actions at a low cost relative to a benchmark, or “doing things right”
ambidexterity
the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities
strategic management process
- Strategy Analysis
- Strategy Formulation
- Strategy Implementation
Intended Strategy
strategy in which organizational decisions are determined only by analysis
Realized Strategy
strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences
strategy analysis
study of firms’ external and internal environments, and their fit with organizational vision and goals
strategy formulation
decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage
strategy implementation
actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership
corporate governance
the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors
Stakeholder management
a firm’s strategy for recognizing and responding to the interests of all its salient stakeholders
crowdsourcing
practice wherein the internet is used to tap a broad range of individuals and groups to generate ideas and solve problems
social responsibility
the expectation that businesses will strive to improve the overall welfare of society
triple bottom line
assessment of a firm’s financial, social, and environmental performance
hierarchy of goals
organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more measurable
vision
organizational goals that evoke powerful and compelling mental images
mission statement
a set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of competitive advantage
