College 1 Why do firms exist?

Question 1

Why do firms exist?

Answer 1

• Firms exist in order to economize on buying and selling everything.
• Firms exist to reduce transaction costs

Question 2

Licht de betekenis van Vision toe

Answer 2

Vision: – articulates a view of a realistic, credible, attractive future for the organization, a condition that is better in some important ways that what now exists (Bennis and Nanus, 1985)

Question 3

Wat houdt Mission in?

Answer 3

Mission: – concerns the way the organisation is managed today (behavior standard) and its purpose (it is a timeless explanation of the organization’s identity and ambition)

Question 4

Wat houdt strategic intent in?

Answer 4

Strategic intent: – envisions a desired leadership position and establishes the criterion the organisation will use to chart its progress.

Question 5

Wat houdt Strategy in?

Answer 5

Strategy: – “The pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.” (Quinn, 1980)

Question 6

What is Performance?

Answer 6

For firms it’s when the company successfully formulates & implements a value-creating strategy

Question 7

Leg de definities van Profitability and Responsibility uit

Answer 7

Profitability To be an attractive investment, a firm must earn a higher return on the shareholders´ equity than could be realized at a bank

Responsibility Acting in the interest of others, even when there is no legal imperative

Question 8

Teken het CSR model

Answer 8

Question 9

Leg het Strategic Management Process uit

Answer 9

The Strategic Management Process Involves the full set of:

Commitments > Decisions > Actions

which are required for firms to achieve:

Strategic Competitiveness
Sustained Competitive Advantage
Above-Average Returns

Question 10

Teken het Agreement and certainty model van Ralph Stacey

Answer 10

Zone Notes

1. Close to Agreement, Close to Certainty You have agreement on the outcomes and you are certain how to get there. Plan actions to achieve outcomes and monitor the results against the plans. Repeat what works.
2. Far from Agreement, Close to Certainty You have certainty on how to achieve outcomes, but you don’t have agreement on the outcomes you want. Plans and shared missions don’t work. This is where people play politics. Coalition building, negotiation, and compromise are used for agendas and direction.
3. Close to Agreement, Far from Certainty You have agreement on the outcomes you want, but aren’t certaint how to get there. Monitoring against a plan won’t work. A shared mission or vision might work. The goal is to head towards the end-in-mind, even though you don’t know the specific paths up front.
4. Far from Agreement, Far from Certainty (Anarchy) You have a high level of uncertainty and disagreement. Traditional methods of planning, visioning and negotiation are ineffective. What happens here is often avoidance (avoiding the issues where there is disagreement and uncertainty.) This is a short-term protective strategy that leads to long-term disaster.
5. The Edge of Chaos (The Zone of Complexity) This is where traditional management approaches are ineffective, but this is where you can use innovation and creativity to break with the past to create new modes of operating.

Question 11

Benoem de 3 Typologies of problem situations en beschrijf de aanpak daarvan

Answer 11

Approaches to problem situations

• Type 1: rational-technical and standard work;
• Type 2: learning and discussion are required by managers and the stakeholders they lead;
• Type 3: extensive learning and discussion are required for all concerned.