Term
| Definition of strategic management |
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Definition
| consisting of analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. |
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| Four key attributes of strategic management: |
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| 1.directed at overall org. goals 2. includes multiple stakeholders, incorporates short-term as well as long-term perspectives; and recognizes trade-offs between effectiveness and efficiency |
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| three major processes of strategic management |
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| strategy analysis, strategy formulation, and strategy implementation |
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| three primary participants in corporate governance |
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| stockholders, management, board of directors |
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| the ideas, decisions, and actions that enable a firm to succeed. |
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| a firm's resources and capabilities that enable it to overcome the competitive forces in its industry |
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| operational effectiveness |
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| performing similar activities better than rivals |
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| to both align resources to take advantage of existing product markets as well as proactively explore new opportunities |
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| strategy in which organizational decisions are determined only by analysis |
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| a combination of deliberate and emergent strategies |
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| 4 strategy analysis steps |
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| Analyzing organizational goals and objectives; Analyzing the external environment of the firm; Assessing the internal environment of the firm; Assessing a Firm's intellectual assets |
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| Four steps of Strategy Formulation |
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| Formulating Business-Level Strategy; Formulating Corporate-Level Strategy; Formulating international Strategy; Entrepreneurial Strategy and Competitive Dynamics |
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| Four steps of Strategy Implementation |
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Definition
| Strategic control and corporate governance; Creating effective organizational designs; Creating a learning organization and an ethical organization; Fostering cor[p0rate entrepreneurship |
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| assessment of a firm's financial, social, and environmental performance |
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| Three types of critical leaders |
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| local line leaders; executive leaders; internal networkers |
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| 5 reasons that visions fail |
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Definition
| Don't walk the talk; irrelevance; not the holy grail; too much focus leads to missed opportunities; an ideal future irreconciled with present |
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| 5 requirements for meaningful objectives |
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| measurable; specific; appropriate; realistic; timely |
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| two frameworks for analyzing the external environment: |
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| the general environment and the competitive environment. |
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| Six segments of the general environment |
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Definition
| demographic, sociocultural, political/legal technological, economic, and global |
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| 3 processes (inputs) to develop an environmental forecast |
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Definition
| scanning, monitoring, and gathering competitive intelligence |
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| surveillance of a firm's extarnal environment to predict environmental changes and detect changes already under way |
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| listen; pay attention; follow trends online; go old school |
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| firm's analysis of thte external environment that tracks the evolution of environmental trends, sequences of events, or streams of activities. |
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| environmental forecasting |
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Definition
| the development of plausib le projections about the direction, scope, speed, and intensity of environmental change |
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| What does Scenario Analysis draw on? |
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Definition
| economics, psychology, sociology, and demographics |
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| Key trends in Demographics |
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Definition
| aging population; rising affluence, changes in ethnic composition; geographic distribution of population; greater disparities in income levels |
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| Key trends in Socioculture |
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| more women in the workforce; increase in temporary workers; greater concern for fitness; greater concern for environment; postponement of family formation |
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| Key trends in Political/Legal |
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| Key trends in the technological environment |
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| genetic engineering; emergence of internet technology; computer aided design; pollution/ miniaturization of computing technologies; wireless communications' nanotechonlogy |
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| Key trends in economic environment |
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Definition
| interest rates; currency exchange rates; emergence of the Indian/Chinese economies; risks associated with terrorism |
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| Six sources of entry barrier |
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Definition
| economies of scale, product differentiation, capital requirements, switching costs, access to distribution channels, cost disadvantages independent of scale |
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| Cost disadvantages of independent of scale derive from: |
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Definition
| proprietary products, favorable access to raw materials, government subsidies, favorable government policies |
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| 5 Primary Activities of the value chain |
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Definition
| inbound logistics; operations; outbound logistics; marketing and sales; service |
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| general administration; Human resource management; technology development; procurement |
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| Resource based view of the firm combines what two perspectives? |
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Definition
| an external analysis of the industry and its competitive environment. |
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| Three types of Firm Resources |
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| Tangible resources; intangible resources; organizational capabilities |
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| Four strategies that promote product uniqueness |
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Definition
| Physical Uniqueness; Path dependency; Causal Ambiguity; Social Complexity |
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| Four factors that explain why managers and employees maintain their profits |
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| employee bargaining power; employee replacement cost; employee exit costs; manager bargaining power |
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| Two views in which to evaluate a firm: |
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Definition
| financial ratios and a broad stakeholder view |
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| provides a quick view to managers: a method of evaluating a firm;s perfornace using perfomance measures from the customers' internal, innovation and learning, and financial perspectives. |
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| Four perspectives of the Balanced Scorecard |
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Definition
| customer perspective; internal business perspective; innovation and learning perspective; financial perspective |
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| limitations of the balance score card |
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Definition
| lack of a clear strategy; limited or ineffective executive sponsorship; too much emphasis on the financial measures rather than the non-financial measures; poor data; inappropriate links of scorecard measures to compensation; inconsistent or inappropriate terminology |
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| what is the primary means of wealth generation in today's economy? |
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| What is the foundation of intellectual capital? |
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Definition
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Term
| definition of intellectual capital |
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Definition
| difference between book value and market value |
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| 3 ways companies develop value in terms of intellectual capital |
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Definition
| human capital; social capital; Knowledge (both explicit and tacit) |
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| Six areas a diverse company can improve effectiveness and CA |
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Definition
| cost; resource acquisition; marketing; creativity; problem-solving; organizational flexibility |
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| two primary types of mechanisms through which social capital will flow: |
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Definition
| closure relationships and bridging relationships |
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| Three levers used to motivate: |
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Definition
| unification lever, people lever, network lever. |
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| What is the heart of strategic management? |
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Definition
| how firms compete with each other and how they attain and sustain competitive advantages |
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Definition
| Cost leadership; differentiation; niche (Focus) |
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| the total profits in an industry at all points along the industry's value chain |
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| Industry life cycle stages: |
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| introduction; growth; maturity; decline |
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| Introduction stage 7 steps: |
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| new products; poorly defined market; unspecified product features; low sales growth; rapid technological change; operating losses; a need for financial support |
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| three turnaround strategies |
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| asset and cost surgery; selective product and market pruning; piecemeal productivity improvements |
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