Chapter 1 Flashcards
(26 cards)
Strategic Management
set of managerial decisions & actions that determines the long-run performance of an organization
Globalization
the integrated internationalization of markets and organizations
Innovation
new products, services, methods & organizational approaches that allow the business to achieve extraordinary returns
Sustainability
a term used to describe the degree to which a business will survive;
the use of business practices to manage the Triple Bottom Line:
1) management of traditional profit/loss
2) management of the corps social responsibility
3) management of its environmental responsibility
Population ecology
once a organization is adjusted to a niche environment, it is unable to adapt to the changing conditions
Institutional Theory
organizations can/do adapt to changing environments by imitating other successful organizations
Strategic Choice Perspective
organizations adapt to changing environments & they have the opportunity & power to reshape their environment
Organizational Learning Theory
a organization adjusts defensively to changing conditions & uses knowledge offensively to improve the fit between itself and its environment
Learning Organization
organization skilled at creating, acquiring & transferring knowledge and at modifying its behavior to reflect new knowledge & insights
Policy
guidelines for decision making that links formulation of strategy with its implementation
Strategic Formulation
investigation, analysis & decision making that provides the organization with criteria for achieving competitive advantage
Objectives
the end result of a planned activity
– tells what is to be accomplished & by when
Vision
a picture of what the firm want to be and in broad terms what it wants to ultimately achieve
Mission
specifies the businesses in which the firm intends to compete and the customers it intends to serve
Strategy
integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage
Competitive Advantage
when a company implements strategy that creates superior value for customers and that competitors are unable to duplicate and find it too costly to try to imitate
Strategic Flexibility
set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment
Hierarchy of Strategy
grouping of strategy types by level in the organization
Strategy Implementation
process of strategies & policies put into action through the development of programs, budgets & procedures
Evaluation & Control
process of corporate activities & performances results that are monitored for actual performance comparison to the desired performance
Performance
the end result of the organizations activities
Strategic Audit
checklist of questions by issue that enable systematic analysis of what is going on in the organization
Strategic Decision Making
long-term future of the entire organization
(3) characteristics:
- Rare - unusual & typically no precedent to follow up
- Consequential - commits substantial resources & demand. great deal of commitment from people at all levels
- Directive - set precedents for lesser decisions & future actions throughout the organization
Logical Incrementalism
continually integrating the process of strategy
