Term
| Four Phases of Strategic Management |
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Definition
1)Basic Financial Planning
2)Forecast-based Planning
3)Externally Oriented Planning
4)Strategic Management |
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Term
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Definition
-most info from in firm
-time horizon=about 1 year |
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Definition
-time horizon is about 3-5 years
-internal info and any available environmental data
-process gets political |
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| Externally Oriented Planning |
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Definition
-Top mgmt takes control of planning (out of hands of lower mgmt)
-use of consultants
-upper-lvl "retreat" |
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Definition
-Form planning groups (mgrs and key emp's)
-Strategic planning at all levels
-Emphasizes L-T performance
-GE is one of pioneers |
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Term
| Highest rated benefits of Strategic Management (3) |
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Definition
-Clearer sense of strategic vision
-focus on what is strat. important
-Understanding environment better |
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Definition
| Integrated internationalization of markets and corporations |
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Term
| Environmental Sustainability |
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Definition
| Use of business practices to reduce a company's impact on environment. |
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Term
| Effects of Climate Change (6 risks) |
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Definition
1)Regulatory Risk
2)Supply Chain Risk
3)Product and Tech. Risk
4)Litigation Risk
5)Reputational Risk
6)Physical Risk |
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Term
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Definition
Regulations requiring reductions in harmful emissions.
Kyoto Protocal-reduction in gases by avg. of 6%
Emissions trading program |
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Definition
| Suppliers become vulnerable to gov't. regulations-leads to higher component and energy costs as they pass along carbon-related costs to customers |
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Term
| Product and Technology Risk |
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Definition
-Env. Sust. can be prereq to profitable growth.
-investments in sustainable energy |
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Definition
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Definition
| Impact on environment affect reputation with customers |
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Definition
| Direct risks from climate change (weather, rising sea levels) |
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Term
| Theory of Population Ecology |
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Definition
| proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions |
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Definition
| Proposes that organizations can and do adapt to changing conditions by imitating other successful organizations |
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| Strategic Choice Perspective |
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Definition
| Proposing that not only do orgs adapt to a changing environment, but they also have the opportunity and power to reshape it |
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Term
| Organizational Learning Theory |
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Definition
| Organization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and its environment |
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Definition
| Ability to shift from one dominant strategy to another |
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Definition
An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new nowledge and insights
-important to innovation/prod. development |
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Term
| Learning Org main activities (4) |
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Definition
1)solving problems systematically
2)Experimenting with new approaches
3)Learning from experiences and past history as well as from the experiences of others
4)Transferring knowledge throughout organization |
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Term
| Basic Elements of Strategic Planning |
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Definition
-Environmental Scanning
-Strategy Formulation
-Strategy Implementation
-Evaluation and Control
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Term
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Definition
Easiest to use SWOT
External (Opportunities and Threats)
-Natural (Resources/climate)
-Societal (General Forces)
-Task (Industry Analysis)
Internal (Strengths/weaknesses)
-Structure (chain of command)
-Culture (beliefs, expectations, values)
-Resources (assets, skills, knowledge) |
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Term
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Definition
-Mission (Reason for existence)
-Objectives (What results to accomplish by when)
-Strategies (Plan to achieve the mission and objectives)
-Policies (Broad guidelines for decision making) |
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Term
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Definition
Sometimes called Operational Planning
1)Programs (activities needed to accomplish a plan)
2)Budgets (Cost of programs)
3)Procedures (Sequence of steps needed to do job) |
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Definition
| Performance (actual results) |
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Term
| Forces in Societal Environment |
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Definition
-Sociocultural
-Economic (Hard to predict)
-Technological (rapidly changing)
-Political-Legal forces |
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Definition
Internal (Strengths and Weaknesses)
External (Opportunities and Threats) |
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Definition
Purpose or reason for organization's existence
-what organization is providing society |
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Definition
What a company would like to become
-broad best in stable environment lacking in growth opp's
-narrow in turbulent, keeps firm focused on what it does best |
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Definition
| Open-ended statement of what one wants to accomplish, with no quantification of what is to be achieved and to time criteria |
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Definition
Corporate Strategy-Company's overall direction and mgmt of biz(Stability, growth, and retrenchment)
Business Strategy-competitive or cooperative strategies
Functional Strategy-maximizing resource productivity |
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Term
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Definition
| Functional support Business which support Corporate |
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Term
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Definition
| Corporations as evolving through relatively long periods of stability (equilibrium) punctuated by short bursts of fundamental change (revolutionary period) |
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Term
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Definition
-New CEO
-External Intervention (bank refuse loan, key customer complain of product defect)
-Threat of change in ownership
-Performance Gap (Exists when perf. does not meet expectations. Sales/profits not increasing/maybe decreasing)
-Strategic Inflection Point (when major change takes place due to new tech., diff regulatory env, change in customer values, or change in cust. preferences) |
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Term
| Strategic Decision Characteristics (3) |
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Definition
-Rare-unusual and typically no precedent
-Consequential-commit substantial resources, demand commitment
-Directive-Set precedents for lesser decisions and future actions |
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Term
| Mintzberg Modes of Strat Dec Making (3) |
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Definition
-Entrepreneurial (One powerful indiv., focus on opportunities not problems, bold decisions)
-Adaptive Mode ("muddling through", reactive decisions to existing probs, incremental progress)
-Planning Mode (Gathering of info for analysis in next step)
-Logical Incrementalism (Useful when env is changing and important to build consensus and develop needed resources first) |
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Term
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Definition
| Provides a checklist of questions that enables a systematic analysis to be made of various corporate functions/activities |
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