Chapter 2 Flashcards
What is strategic leadership?
Strategic leadership pertains to executives’ use of power and influence to direct the activities of others when pursuing an organization’s goals. In other words, power refers to the strategic leader’s ability to influence the behavior of other organizational members to do things, including thins they wouldn’t do otherwise.
What do strategic leaders do?
Studies have found that leaders spend 67% of their time in meetings, 13% working alone, 7% on email, 6% on phone walls, 5% on business meals and 2% on public events. These studies also show that CEO prefer oral communication over the use of technology
Whats the upper-echelons theory?
The upper-echelons theory is a conceptual framework that views organizational outcomes – strategic choices and performance levels – as reflections of the values of the members of the top management team. It favors the idea that effective strategic leadership is the result of both innate abilities and learning.
Whats the pattern of the Level 5 leadership pyramid?
Level 1: Highly Capable Individual Level 2: Contributing Team Member Level 3: Competent Manager Level 4: Effective Leader Level 5: Executive
What 2 parts does the strategy process consist of?
- Strategy Formulation
2. Strategy Implementation
What are the three areas of strategy formulation & implementation?
(1) Corporate strategy
(2) Business strategy
(3) Functional strategy
What is corporate strategy?
(1) Corporate strategy, which concerns questions relating to where to compete as to industry markets, and geography.
What is business strategy?
(2) Business strategy, which concerns the question of how to compete within strategic business units (SBUs) – standalone divisions of a larger conglomerate each with their own profit-and-loss responsibility. With guidelines from the corporate headquarters they formulate appropriate generic business strategies such as: cost leadership, differentiation, or value innovation.
What is functional strategy?
(3) Functional strategy, which concerns the question of how to implement a chosen business strategy. Within each SBU are various business functions (such as accounting, finance, human resources, …) for which a functional manager is responsible as well as the decisions and actions within it. Different corporate and business strategies will require different activities across the various functions.
Whats the strategic management process?
The strategic management process is a method put in place by strategic leaders to formulate and implement a strategy, which can lay the foundation for a sustainable competitive advantage. When setting it, strategic leaders rely on three approaches: strategic planning, scenario planning and strategy as planned emergence.
What is top-down strategic planning?
Top-down strategic planning is a rational, data-driven strategy process through which top management attempts to program future success. All strategic intelligence and decision-making responsibilities are concentrated in the office of the CEO, which leads the company.
What is scenario planning?
Scenario planning is a strategy planning activity in which top management envisions different what-if scenarios to anticipate plausible futures in order to derive strategic responses. This method adds to the top-down approach as it anticipates plausible futures in order to derive strategic responses. These scenarios can be very global or very specific. For example, some scenarios can be: being the target of a terrorist attack.
Whats a dominant strategic plan?
The strategic option that top managers decide most closely matches the current reality and which is then executed. If the situation changes, managers can quickly retrieve and implement any of the alternative plans developed in the formulation stage.
Whats the Illusion of control?
A tendency by people to overestimate their ability to control events
Whats the planned emergence model?
A strategy process in which organizational structure and systems allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management.
Whats an intended strategy?
The outcome of a rational and structures top-down strategic plan. These are likely to fall by the wayside because of unpredictable events and turn into unrealized strategy.
Whats a firms realized strategy?
A firm’s realized strategy is formulated through a combination of intended strategy and bottom-up emergent strategies – any unplanned strategic initiative bubbling up from the bottom of the organization.
What are strategic initiatives?
Strategic initiatives play a big role in the strategy as planned emergence model. They refer to any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures. They can come from anywhere; they can be the result of top-down planning by executives, or they can also emerge through a bottomup process.
What are autonomous actions?
Autonomous actions are strategic initiatives undertaken by lower-level employees on their own volition and often in response to unexpected situations.
What is serendipity?
Serendipity refers to any random events, pleasant surprises, and accidental happenstances that can have a profound impact on a firm’s strategic initiatives.
Whats the RAP (ressource allocation process?)
The resource-allocation process (RAP) is the way a firm allocates its resources based on predetermined policies, which can be critical in shaping its realized strategy
What is stakeholder strategy?
Stakeholder strategy is an integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage.
Whats the stakeholder impact analysis?
The stakeholder impact analysis provides a decision tool with which managers can recognize, prioritize, and address the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen.
What are the three most important stakeholder attributes?
(1) Power. A stakeholder has power over a company when it can get the company to do something that it would not otherwise do.
(2) Legitimacy. A stakeholder has a legitimate claim when it is perceived to be legally valid or otherwise appropriate.
(3) Urgency. A stakeholder has an urgent claim when it requires a company’s immediate attention and response.
