Exam #3 Flashcards
Organizational Structure
Specifies the firms formal reporting relationships, procedures, controls, and authority and decision making processes.
Organizational Controls
guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable.
Strategic Controls
largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company’s competitive advantages.
Financial Controls
largely objective criteria used to measure the firms performance against previously established quantitative standards
simple structure
a structure in which the owner-manager makes all major decisions and monitors all activities while the staff serves as an extension of the manager’s supervisory authority
functional structure
consists of a CEO and limited corporate staff, with functional line managers in dominant organizational areas such as production, accounting, marketing, R&D, engineering, and HR
Multidivisional (M-Form) Structure
consists of a corporate office and operating divisions, each operating division representing a separate business or profit center in which the top corporate officer delegates responsibilities for day-to-day operations and business unit strategies to division managers
Corporate Firm
An M-Form Structure in which horizontal integration is used to bring about interdivisional cooperation.
SBU Form
an M-Form consisting of 3 levels; corporate HQ, SBU’s, and SBU divisions
Competitive Form
an M-Form structure characterized by complete independence among the firms divisions which compete for corporate resources.
Worldwide Geographic Area Structure
emphasizes national interests and facilitates the firms efforts to satisfy local differences.
Worldwide Product Divisional Structure
decision making authority is centralized in the worldwide division HQ to coordinate and integrate decisions and actions among divisional business units.
Combination Structure
structure drawing characteristics and mechanisms from both the worldwide geographic area structure and the worldwide product divisional structure
Strategic Network
group of firms that has been formed to create value by participating in multiple cooperative arrangements.
Strategic Leadership
the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary
Strategic Change
change brought about as as result of selecting and implementing a firm’s strategies
Top Management Team
composed of the individuals who are responsible for making certain the firm uses the strategic management process, especially for the purpose of selecting and implementing strategies
heterogenous top management team
composed of individuals with different functional backgrounds, experience, and education
internal managerial labor market
consists of a firms opportunities for managerial positions and qualified employees within that firm
External managerial labor market
collection of managerial career opportunities and the qualified people who are external to the organization in which opportunities exist
Determining Strategic Alliance
involves specifying the vision and the strategy or strategies to achieve this vision over time
Human Capital
refers to the knowledge and skills of a firms entire workforce
Social Capital
involves relationships inside and outside the firm that help in efforts to accomplish tasks and create value for stakeholders
The balanced scorecard
A tool firms use to determine if they are achieving an appropriate balance when using strategic and financial controls as a means of positively influencing performance
Strategic Entrepreneurship
the taking of entrepreneurial actions using a strategic perspective.
Corporate Entrepreneurship
the use or application of entrepreneurship within an established firm
Entrepreneurship
the process by which individuals, teams, or organizations identify and pursue entrepreneurial opportunities without being immediately constrained by the resources they currently control.
Entrepreneurial opportunities
are conditions in which new goods or services can satisfy a need in the market.
Invention
is the act of creating or developing a new product or process.
