Basic Concepts

Question 1

A nesting of strategies by level from corporate to business to functional, so that they complement and support one another.

Answer 1

Hierarchy of strategy

Question 2

A concept of organizational adaptation that proposes that organizations can and do adapt to changing conditions by imitating other successful organizations.

Answer 2

Institution theory

Question 3

Variables within the organization not usually within the short-run control of top management.

Answer 3

Internal environment

Question 4

The end result of planned activity stating what is to be accomplished by when, and quantified if possible.

Answer 4

Objectives

Question 4

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.

Answer 4

Learning organization

Question 5

The purpose or reason for an organization’s existence.

Answer 5

Mission

Question 6

an organization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and its environment.

Answer 6

Organizational learning theory

Question 7

The end result of activities, actual outcomes of a strategic management process.

Answer 7

Performance

Question 8

A set of four levels of development through which a firm generally evolves into strategic management.

Answer 8

Phases of strategic management

Question 9

A broad guideline for decision making that links the formulation of strategy with its implementation.

Answer 9

Policy

Question 10

A theory that proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions.

Answer 10

Population ecology

Question 11

A list of sequential steps that describe in detail how a particular task or job is to be done.

Answer 11

Procedures

Question 12

A statement of the activities or steps needed to accomplish a single-use plan.

Answer 12

Program

Question 13

A checklist of questions by area or issue that enables a systematic analysis of various corporate functions and activities. It’s a type a management audit.

Answer 13

Strategic audit

Question 14

A theory that proposes that organizations adapt to a changing environment and have the opportunity and power to reshape their environment.

Answer 14

Strategic choice perspective

Question 15

Decisions that deal with the long-run future of an entire organization and are rare, consequential, and directive.

Answer 15

Strategic decisions

Question 16

An eight-step process that improves strategic decision making.

Answer 16

Strategic decision-making process

Question 17

External and internal factors that determine the future of a corporation.

Answer 17

Strategic factors

Question 18

A set of managerial decisions and actions that determine the longrun performance of a corporation.

Answer 18

Strategic management

Question 19

A comprehensive plan that states how a corporation will achieve its mission and objectives.

Answer 19

Strategy

Question 20

Development of long range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses.

Answer 20

Strategy formulation

Question 21

A process by which strategies and policies are put into action through the development of programs, budgets, and procedures.

Answer 21

Strategy implementation

Question 22

Identification of strengths, weaknesses, opportunities, and threats that may be strategic factors for a specific company.

Answer 22

SWOT analysis

Question 23

Something that acts as a stimulus for a change in strategy.

Answer 23

Triggering event

Question 24

A view of what management thinks an organization should become.

Answer 24

Vision

Question 25

A statement of a corporation’s programs in terms of money required.

Answer 25

Budget

Question 26

Competitive and cooperative strategies that emphasize improvement of the competitive position of a corporation’s products or services in a specific industry or market segment.

Answer 26

Business strategy

Question 27

A strategy that states a company’s overall direction in terms of its general attitude toward growth and the management of its various business and product lines.

Answer 27

Corporate strategy

Question 28

The monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the corporation.

Answer 28

Environmental scanning

Question 29

The use of business practices to reduce a company’s impact upon the natural, physical environment.

Answer 29

Environmental sustainability

Question 29

A process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance.

Answer 29

Evaluation and control

Question 30

Forces outside an organization that are not typically within the short-run control of top management.

Answer 30

External environment

Question 31

An approach taken by a functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity.

Answer 31

Functional strategy

Question 32

The internationalization of markets and corporations.

Answer 32

Globalization