Chapter 1 Flashcards
the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages
strategic management
the ideas, decisions, and actions that enable a firm to succeed
strategy
a firm’s resources and capabilities that enable it to overcome the competitive forces in its industry(ies)
competitive advantage
performing similar activities better than rivals
operational effectiveness
tailoring actions to the needs of an organization rather than wasting effort, or “doing the right thing”
effectiveness
performing actions at a low cost relative to a benchmark, or “doing things right”
efficiency
the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities
ambidexterity
strategy analysis, strategy formulation, and strategy implementation
strategic management process
strategy in which organizational decisions are determined only by analysis
intended strategy
strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences
realized strategy
study of firms’ external and internal environments and their fit with organizational vision and goals
strategy analysis
decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage
strategy formulation
actions made by firms that carry out the formulated strategy, including strategic contracts, organizational design, and leadership
strategy implementation
the relationship among various participants in determining the direction and performance of corporations
corporate governance
a firm’s strategy for recognizing and responding to the interests of all its salient stakeholders
stakeholder management
