Chapter 2 - Strategic Management Flashcards
Rational Strategy - Basic Principles
What is the Rational View of strategy?
Strategy as a logical, top-down process where senior managers analyze information to set a clear course of action for the organization.
Rational Strategy - Basic Principles
According to Ansoff, what are the four key objectives of strategy?
A: Economic, Non-economic, Self-renewal, and Flexibility.
Rational Strategy - Basic Principles
What are the four key aspects of strategic management suggested by Johnson et al. (2017)
Analysis, Choice, Implementation, and Control.
Rational Strategy - Evolution
Who suggested creativity and obsession are crucial for strategy development?
Ohmae.
Rational Strategy - Evolution
What does Porter’s Competitive Strategy emphasize in rational planning?
The need to consider markets and aim for competitive advantage.
Rational Strategy - Evolution
What does Senge’s “learning organization” concept involve?
Promoting a culture of intuition, experimentation, and freedom to make mistakes.
Rational Strategy - Evolution
What are the five dimensions of a learning organization, according to Senge?
Systems thinking, Personal mastery, Mental models, Building shared vision, and Team learning.
Chaos Theory and VUCA Forces
What does Chaos Theory suggest in organizational strategy?
Small changes can have unpredictable effects on the entire system.
Chaos Theory and VUCA Forces
What are VUCA forces?
Volatility, Uncertainty, Complexity, and Ambiguity.
Critique of the Rational Model
What are Mintzberg’s criticisms of the Rational Model?
Formalization, Detachment, and Predetermination.
Emergent Strategy
What is the principle of Emergent Strategy?
Strategy development involves adapting to new opportunities and discarding outdated intentions.
Emergent Strategy
What are factors that can drive emergent strategies?
Changes in personnel
key events affecting the organization, and
shifts in the business environment.
Emergent Strategy
How did Mintzberg categorize emergent strategies?
EPIC PUUI
Entrepreneurial, Planned, Ideological, Consensus,
Process, Unconnected, Umbrella, Imposed.
Complexity, Cooperation, and Networks
What does Institutional Theory suggest about organizational strategy?
Organizations conform to established norms but are also subject to change.
Complexity, Cooperation, and Networks
What is the ecological view of business strategy?
Businesses operate in ecosystems of interconnected entities, affecting and being affected by each other.
