Chapter 2

Question 1

Strategic Leadership

Answer 1

pertains to executives´ use of power and influence to direct he activities of others when pursuing an organisation´s goals.
- Power: the strategic leader´s ability to influence the behaviour of other organisational members to do things

Question 2

What do strategic leaders do?

Answer 2

67% face-to-face meetings

working alone …

Question 3

Level-5 Leadership pyramid:

Answer 3

Level 1: Highly capable individual:
makes productive contributes through motivation, talent, knowledge and skills

2: contributing team member:
use high level of individual capability to work efficiently with others in order to achieve team objectives

3. competent manager:
   is efficient and effective in organizing resources to accomplish stated goals and objectives
4. effective leader
   presents compelling vision and mission to guide groups toward supieror performance
5. executive leader CEO
   builds enduring greatness by combining willpower and humility

Question 4

Strategic formulation

Answer 4

concerns the choice of strategy in terms of where and how to compete

Question 5

strategic implementation

Answer 5

concerns the organisation, coordination, and integration of how work gets done

Question 6

Vision

Answer 6

captures on organisation aspiration and spells out what it ultimately wants to accomplish

Question 7

product-oriented vision

Answer 7

defines business of a good or service provided.
- focuses employees on improving existing products and services without considering underlying customers problems to be solved

Question 8

costumer-oriented vision

Answer 8

defines business in term of providing solutions to customer needs
- allows the company to adapt to changing environment and focus on employees on how to best solve a problem for the costumer

Question 9

Mission

Answer 9

describes what a company actually does (the products and services it plans to provide and the markets it will compete)

Question 10

value

Answer 10

is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission

Question 11

Top-down strategic planning

Answer 11

• a rational,
• data-driven
• top manager attempts to program future success
• we can predict future with the past assumption which works when environment is stable

Question 12

scenario planning

Answer 12

strategic planning where the top manager envisions different what-if scenarios to anticipate plausible future events in order to derive strategic responses

Question 13

black swan events

Answer 13

incidents that describe highly improbable but highly-impact events

Question 14

dominate strategic plan

Answer 14

the strategic option that top managers decides most closely matches current reality and is then executes

Question 15

intended strategy

Answer 15

the outcome of a rational and structured top-down strategic plan

Question 16

realised strategy

Answer 16

is a combination of top-down strategic intentions and bottom-up emergent strategy

Question 17

emergent strategy

Answer 17

describes any unplanned strategic initiative bubbling up from deep within the organisation. if these are successful they have the potential to influence and shape the firms overall strategy

Question 18

strategic initiative

Answer 18

any activity a firm pursues to explore and develop new products and processes, new markets and new ventures

Question 19

autonomous actions (bottom up strategy)

Answer 19

strategic initiative undertaken by lower-level employees on their violation and often in response to unexpected situations

Question 20

serendipity

Answer 20

random events, pleasant surprises

- can have a impact on a firms strategic initiatives

Question 20

serendipity

Answer 20

random events, pleasant surprises

- can have a impact on a firms strategic initiatives

Question 21

resource-allocation process RAP

Answer 21

determinds the way it allocates its resources and can be critical in shaping its realised strategy

Question 22

planned emergence

Answer 22

strategy process in which organisational structure and systems allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management

Question 23

Strategic decision making: theory of bounded rationality

Answer 23

when individuals face decisions, their rationality is confined by cognitive limitations and the time available to make a decision.

Question 24

Strategic decision making: cognitive limitations

Answer 24

constrains as time or brain inability to process large amounts of data that prevents us from appropriately processing and evaluating each piece of information we encounter

Question 25

behavioural economics

Answer 25

combines elements of economics and psychology to understand how and why people behave the way they do. decision making two different systems

System 1: the brains default mode
system 2: logical, analytical, and deliberate

Question 26

cognitive biases

Answer 26

leads to systematic errors in our decision making process and interferes with rational thinking

Question 27

Illusion of control a cognitive bias

Answer 27

a cognitive bias that highlights peoples tendency to overestimate their ability to control events

Question 28

escalating commitment a cognitive bias

Answer 28

an individual or group faces increasingly negative feedback regarding the likely outcome from a decision but nevertheless continues to invest resources and time in that decision, often exceeds their earlier commitments

Question 29

confirmation bias a cognitive bias

Answer 29

the tendency of induviduals to search for information that confirms their beliefs. Will stick to it

Question 30

reason by analogy a cognitive bias

Answer 30

the tendency to use simple analogies to make sense of complex problems

Question 31

representativeness a cognitive bias

Answer 31

drawing conclusions based on small samples or even anecdotes or memorable cases

Question 32

groupthink a cognitive bias

Answer 32

a situation in which opinions coalesce around a leader without individuals critically evaluating and challenging the leader’s opinions

Question 33

How to improve strategic decision making: Devils advocacy

Answer 33

a technique that helps to improve strategic decision making

the separate team carefully questioning and critiquing underlying assumptions and highlighting potential downsides

Question 34

How to improve strategic decision making: dialect inquiry

Answer 34

can improve strategic decision making

two teams each generate a detailed but alternate plan fo action (thesis/antithesis)