Strategic Management

Question 1

– situations in which the leader is the key force determining the organization’s success-or lack thereof

Answer 1

1.1. Romantic view of leadership

Question 2

– situations in which external forces – where the leader has limited influence – determine the organization’s success

Answer 2

1.2. External control view of leadership

Question 3

the analyses decisions, and actions an organization undertake in order to create and sustain competitive advantages

Answer 3

1.3. Strategic management

Question 4

the ideas, decisions, and actions that enable a firm to succeed

Answer 4

1.4. Strategy

Question 5

a firm’s resources and capabilities that enable it to overcome the competitive forces in its industry(ies

Answer 5

1.5. Competitive advantage

Question 6

performing similar activities better than rivals

Answer 6

1.6. Operational effectiveness

Question 7

– individuals, groups, and organizations that have a stake in the success of the organization. These includes owners (shareholders in publicly held corporation), employees, customers, suppliers, and the community at large

Answer 7

1.7. Stakeholders

Question 8

– tailoring actions to the needs of an organization rather than wasting effort or doing the right thing

Answer 8

1.8. Effectiveness

Question 9

performing actions at a low-cost relative to a benchmark or doing things right

Answer 9

Efficiency

Question 10

the challenge managers face of both aligning resources to take advantage of existing product markets and proactively exploring new opportunities

Answer 10

1.10. Ambidexterity

Question 11

strategy analysis, strategy formulation, and strategy implementation

Answer 11

1.11. Strategic management process

Question 12

strategy in which organizational decisions are determined only by analysis.

Answer 12

1.12. Intended strategy

Question 13

– strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences

Answer 13

1.13. Realized strategy

Question 14

study of firm’s external and internal environments, and their fit with organizational vision and goals

Answer 14

1.14. Strategy analysis

Question 15

decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage

Answer 15

1.15. Strategy formulation

Question 16

actions made firms that carry out the formulated strategy, including strategic controls, organizational, design, and leadership

Answer 16

1.16. Strategy implementation

Question 17

the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive office), and (3) the board of directors

Answer 17

Corporate governance

Question 18

a firm’s strategy for recognizing and responding to the interests of all its salient stakeholders

Answer 18

1.18. Stakeholder management

Question 19

the expectation that businesses or individuals will strive to improve the overall welfare of society

Answer 19

1.19. Social responsibility

Question 20

assessment of a firm’s financial, social, and environmental performance

Answer 20

1.20. Triple bottom line

Question 21

organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more specific and measurable

Answer 21

1.21. Hierarchy of goals

Question 22

– organizational goals that evokes powerful and compelling mental images

Answer 22

1.22. Vision

Question 23

a set of organizational goals that identifies the purpose of the organization, its bases of competition, and competitive advantage

Answer 23

1.23. Mission

Question 24

a set of organizational goals that are used to put into practice the mission statement and that are specific and cover a well-defined time frame

Answer 24

2. Strategic objectives