Basic concepts in Stratma

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

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

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

Answer 6

Objectives

Question 7

A theory proposing that an organization adjusts to changes in the environment through the learning of its employees.

Answer 7

Organizational learning theory

Question 8

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

Answer 8

Performance

Question 9

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

Answer 9

Phases of strategic management

Question 10

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

Answer 10

Policy

Question 11

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 11

Population ecology

Question 12

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

Answer 12

Procedure

Question 13

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

Answer 13

Program

Question 14

An eight-step process that improves strategic decision making.

Answer 14

Strategic decision-making process

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 14

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 14

Strategic audit

Question 14

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

Answer 14

Strategic management

Question 14

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

Answer 14

Strategic factors

Question 14

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

Answer 14

Strategy formulation

Question 14

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

Answer 14

Strategy

Question 14

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

Answer 14

SWOT analysis

Question 14

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

Answer 14

Strategy implementation

Question 15

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

Answer 15

Triggering event

Question 16

A view of what management thinks an
organization should become.

Answer 16

Vision

Question 16

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

Answer 16

Budget

Question 17

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

Answer 17

Environmental sustainability

Question 18

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

Answer 18

Evaluation and control

Question 19

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

Answer 19

Functional strategy

Question 20

A decision-making mode characterized by reactive solutions to existing problems, rather than a proactive search for new opportunities.

Answer 20

Adaptive mode

Question 21

The internationalization of markets and corporations.

Answer 21

Globalization

Question 22

A decision-making mode that is a synthesis of the planning, adaptive, and entrepreneurial modes.

Answer 22

Logical incrementalism

Question 23

A decision-making mode that involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy.

Answer 23

Planning mode

Question 24

A strategy made by one powerful individual in which the focus is on opportunities, and problems are secondary.

Answer 24

Entrepreneurial mode

Question 24

Strategic decisions are unusual and typically have no precedent to follow

Answer 24

Rare

Question 25

Strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels.

Answer 25

Consequential

Question 25

Strategic decisions set precedents for lesser decisions and future actions throughout an organization.

Answer 25

Directive

Question 26

Directors who, though not really employed by the corporation, handle the legal or insurance work for the company or are important suppliers.

Answer 26

Affiliated Director

Question 27

A theory stating that problems arise in corporations because the agents (top management) are not willing to bear responsibility for their decisions unless they own a substantial amount of stock in the corporation.

Answer 27

Agency Theory

Question 28

A range of the possible degree of involvement by the board of directors (from low to high) in the strategic management process.

Answer 28

Board of directors’ continuum

Question 28

Commonly agreed obligations of directors, which include: setting corporate strategy, overall direction, mission, or vision; hiring and firing the CEO and top management;controlling, monitoring, or supervising top management; reviewing and approving the use of resources; and caring for shareholder interest.

Answer 28

Board of director responsibilities