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| used to describe a group of factors affecting large and established firms; because of things like size, bureaucracy, and established practices, such firms can be rather inflexible and slow in responsing to pressure or seizing emerging opportunities |
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| a cognitive process by which individuals organize and attend to information from the environment; because no one can gather and interpret all the available information, they attend selectively to particular issues, _________ out what is thought to be irrelevant and internalizing that which is thought to be significant |
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| involves the categorization of complex issues under simple and discrete labels for the purpose of easing communication and decision making; two common examples used by managers are opportunity and threat |
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| refers to the tendency for established strategies, practices, and routines to be repeated over and again, such that forces for change are mitigated and the organization continues, reliably, to move in the same direction and to function in much the same way |
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| analogous to the simple principle that history matters to the present; suggests that current decisions and economic conditions are at least partly constrained and affected by the sequence of decisions and events that preceded them |
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| the tendency for people to look for solutions only once problems have been identified, rather than searching continuously for opportunities to improve |
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| deals with decision making under conditions of uncertainty or risk; its basic premise is that the starting condition, or reference point, of a decision maker influences the valuation of the potential outcomes |
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| a common occurrence in decision making and is the tendency to accept adequate solutions, rather than to continue searching for solution that could in fact be optimal |
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| typically wealthy individuals who invest their own funds to finance entrepreneurial ventures in the earliest stages of development |
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| consists of the 16 European countries that are both members of the EU and have adopted the euro as their official currency |
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| Foreign direct investment (FDI) |
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| the ownership of business assets by a foreign party, either an individual or firm |
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| a business model where a franchisor, who owns a concept, brand, and set of practices, sells the rights to these assets to a franchisee, who pays in return an upfront fee and a royalty; this model facilitates rapid growth but involves shared ownership and profits, and so the potential for conflicts of interest between the franchisor and franchisee |
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| a term referring to the ability of a framework or principle to apply across a range of settings; strategic management is a _________ discipline because it provides a framework that can be useful across a range of firms, organizations, and settings |
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| a type of international strategy that leverages standardization and economies of scale in building competitive advantage across multiple countries; with a focus on consistency and per unit costs, it capitalizes on some of the same economic forces as a low-cost strategy |
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| the homogenization of global markets, economies, and cultures |
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| the encouragement and cultivation of entrepreneurial thinking and behaviors inside of existing organizations |
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| the various difficulties that arise from doing something new; examples - lack of precedent, lack of familiarity in a role, lack of legitimacy in the eyes of a supplier or customer |
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| a means of commercializing a product, technology, or piece of intellectual property; holder grants another party, for a fee, the right to use, sell, or manufacture the property |
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| a type of international strategy that leverages customization and local responsiveness in building competitive advantage across multiple countries; with its focus on local preferences and branding, it capitalizes on some of the same economic forces as a differentiation strategy |
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| a social philosophy where national borders are largely inconseuqential and so offer little resistance to the movement of people, goods, materials, and information; example - large nultinational firms may have no distinct national identity |
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| those who pool funds from individual investors to invest in entrepreneurial ventures; while specializing in different types of firms at different of stages of growth, they are all accustomed to high risks, with the prospect of relatively short-term and large returns |
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| the set of issues and complications arising from the separating of ownership and control - in particular the asymmetrics in decision-making power and information between owners and managers |
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| the group of individuals who oversee a company or organization; in publicly traded firms, it has the fiduciary duty of prepresenting the owners in hiring the CEO, setting policy, and monitoring the activities of the firm |
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| exists when the CEO of a firm is also the chair of that firm's board of directors; this one individual then holds the two offices simultaneously |
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| a relationship of trust or obligation where a party in power is charged with the obligation to act on behalf of and in the interests of another, more vulnerable party |
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| used to describe the institutionalization of practices and beliefs within an organization; significant events, such as founding conditions or radical changes, are said to leave an ______ on an organization's strategy and practices |
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| those who aggregate funds from individual investors and then invest collectively; example - mutual funds and retirement funds; because they represent such large sums of money, these can be powerful actors in corporate governance |
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| refers to the process of infusing an organization with value, over and above the tangible value of its assets |
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| exist when multiple board members sit simultaneously on the boards of different company; by creating reciprocal interdependence among the board members, ________ are thought to mitigate independence |
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| Leader-member exchange (LMX) |
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| refers to a body of academic research focusing on the dyadic relationships between leaders and their immediate followers; at the crux of this work is the understanding that leaders relate differently to different followers and that the nature of these relationship is key to leadership effectiveness |
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| occurs when decision makers are separated from the risks associated with their decisions; in the principal-agent relationship, for instance, the agent has the bulk of the decision-making discretion and yet the principal bears the bulk of the risk of bad decisions |
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| is that small group of managers at the highest levels of the organization who make the majority of the strategic decisions and control the firm's operations; the CEO is typically the leader of the team |
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| Shared values --> skills, staff, strategy, structure, style, systems |
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| Consensus, contentment, affluence, faith, consistency, rationality |
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| What must be minimized to disrupt prospect theory/curse of incumbency? |
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| the ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environmentsl the firm's ability to learn, adapt, and change as necessary to stay fit to the environment, even as the environment changes |
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| the initiation, organization, and operation of a business venture for the purpose of earning a profit |
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| Opportunitity recognition --> feasibility analysis --> business plan development --> gathering key resources --> securing investment --> launching the venutes |
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| influencing others twoards the achievement of a common goal |
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| refers collectively to the processes, structures, and systems by which firms are governed |
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| the deployment and operation of organizational structures, favilities, human resources, and support systems, as necessary,t o bring a strategy to fruition |
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