Chapter 1 (Strategic Management)

Question 1

romantic view of leadership

Answer 1

the implicit assumption that the leader is the key force in determining an organization’s success or lack thereof

Question 2

external control view of leadership

Answer 2

focus on external factors that may positively or negatively affect a firm’s success

Question 3

incremental management

Answer 3

making a series of small, minor changes to improve operational efficiency

Question 4

strategic management

Answer 4

the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

Question 5

strategy

Answer 5

the ideas, decisions, and actions that enable a firm to succeed

Question 6

competitive advantage

Answer 6

a firm’s resource and capabilities that enable it to overcome the competitive forces in its industry(ies)

Question 7

operational effectiveness

Answer 7

performing similar activities better than rivals

Question 8

strategic goals include…

Answer 8

vision, mission, and strategic objectives

Question 9

the first set of strategic management practices

Answer 9

analysis of the collective analyses, decisions, and actions

Question 10

the second set of strategic management practices

Answer 10

observing the competition, and knowing why they are outperforming other organizations

Question 11

stakeholders

Answer 11

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

Question 12

effectiveness

Answer 12

tailoring actions to the needs of an organization rather than wasting effort; “doing the right thing”

Question 13

efficiency

Answer 13

performing actions at a low cost relative to a benchmark; “doing things right”

Question 14

ambidexterity

Answer 14

the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities

Question 15

Key Attribute of Strategic Management #1

Answer 15

Direct the organization toward overall goals and objectives; “organizational versus individual rationality”

Question 16

Key Attribute of Strategic Management #2

Answer 16

Include multiple stakeholders in decision making

Question 17

Key Attribute of Strategic Management #3

Answer 17

Incorporate short-term and long-term perspectives

Question 18

Key Attribute of Strategic Management #4

Answer 18

Recognize trade-offs between efficiency and effectiveness

Question 19

intended strategy

Answer 19

strategy in which organizational decisions are determined only by analysis

Question 20

realized strategy

Answer 20

strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences

Question 21

strategy analysis

Answer 21

study of firms’ external and internal environments, and their fit with organizational vision and goals

Question 22

strategy formulation

Answer 22

decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage

Question 23

strategy implementation

Answer 23

actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership

Question 24

cronyism

Answer 24

the appointment of friends and associates to positions of authority, without proper regard to their qualifications

Question 25

stakeholder management

Answer 25

a firm’s strategy for recognizing and responding to the interest of all its salient (or principal) stakeholders

Question 26

crowdsourcing

Answer 26

practice wherein the Internet is used to tap a broad range of individuals and groups to generate ideas and solve problems

Question 27

non-governmental organization (NGO)

Answer 27

refers to organizations that are neither part of a government nor conventional for-profit business; usually set up by ordinary citizens, NGOs may be funded by governments, foundations, or businesses

Question 28

procurement

Answer 28

the act of buying goods and services; a process that includes preparation and processing of a demand as well as the end receipt approval of payment

Question 29

social responsibility

Answer 29

the expectation that businesses or individuals will strive to improve the overall welfare of society

Question 30

Corporate Social Responsibility (CSR)

Answer 30

the continuing commitment by businesses to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large

Question 31

shared value

Answer 31

policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates; focuses on identifying and expanding the connections between societal and economic progress

Question 32

triple bottom line

Answer 32

assessment of a firm’s financial, social, and environmental performance

Question 33

sustainable global economy

Answer 33

an economy that the planet is capable of supporting indefinitely

Question 34

local line leaders

Answer 34

handle significant profit-and-loss analysis responsibilities

Question 35

executive leaders

Answer 35

champion of ideas, learning infrastructures, and action-taking domain establishment

Question 36

internal networkers

Answer 36

generally carrying little positional power and formal authority, generate power through their conviction and clarity of their ideas

Question 37

hierarchy of goals

Answer 37

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 specific and measurable

Question 38

vision

Answer 38

organizational goal(s) that evoke(s) powerful and compelling mental images; “massively inspiring, overarching, and long term”

Question 39

mission statement

Answer 39

a set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantages

Question 40

strategic objectives

Answer 40

a set of organizational goals that are used to operationalize the mission statement and that are specific and cover a well-defined time frame