STGY Chapter 1

Question 1

Romantic View of Leadership

Answer 1

Situations in which the leader is the key force determining the organization’s success or failure

Question 2

External Control View of Leadership

Answer 2

Situations in which external forces-where the leader has limited influence- determine the organization’s success.

Question 3

Strategic Management

Answer 3

The analysis, decisions, and actions an organization undertakes in order to create and sustain a competitive advantage.

Question 4

Strategy

Answer 4

The ideas, decisions, and actions that enable a firm to succeed.

Question 5

Competitive Advantage

Answer 5

A firm’s resources and capabilities that enable it to overcome the competitive forces in its industries

Question 6

Operational Effectiveness

Answer 6

Performing similar activities better than rivals

Question 7

Stakeholders

Answer 7

Individuals, groups, and organizations that have a stake in the success of the organization. These include owners (shareholders in a publically held corporation) employees, customers, suppliers, and the community at large.

Question 8

Effectiveness

Answer 8

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

Question 9

Efficiency

Answer 9

Performing actions at a low cost relative to a benchmark, or “doing things right”

Question 10

Ambidexterity

Answer 10

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

Question 11

Strategic Management Process

Answer 11

Strategy analysis, strategy formulation, and strategy implementation.

Question 12

Intended Strategy

Answer 12

strategy in which organizational decisions are determined only by analysis

Question 13

Realized Strategy

Answer 13

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

Question 14

Strategy Analysis

Answer 14

Study of a firms external and internal environments, and their fit with organizational vision and goals.

Question 15

Strategy Formulation

Answer 15

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

Question 16

Strategy Implementation

Answer 16

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

Question 17

Corporate Governance

Answer 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 CEO
3. The Board of Directors

Question 18

Stakeholder Management

Answer 18

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

Question 19

Social Responsibility

Answer 19

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

Question 20

Triple Bottom Line

Answer 20

Assessment of a firm’s financial, social, and environmental performance.

Question 21

Hierarchy of Goals

Answer 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

Question 22

Vision

Answer 22

Organizational goals that evoke powerful and compelling mental images.

Question 23

Mission Statement

Answer 23

A set of organizational goals that identify the purpose of the organization, its basis of competition, and competitive advantage.

Question 24

Strategic Objectives

Answer 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