Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

BUS 478 - Chapter 12 > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

Strategic Leadership

A

Ability to anticipate vision, flexibility and empower others to create strategic change as necessary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Strategic Change

A

It is the change brought about as a result, selecting and implementing a firms strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Top Management Team

A

Is composed of the individuals who are responsible for making certain the firm uses the strategic management process, especially for purpose, selecting, and implementing strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Heterogenous Top Management Team

A

Is composed of individuals with different functional backgrounds, experience and education

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Internal Managerial Labour Market

A

Consist of a firms opportunities for managerial positions and the qualified employees within that firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

External Managerial Labour Market

A

Is the collection of managerial career opportunities, and the qualified people who are external to the organization in which the opportunities exist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Determining Strategic Direction

A

Involve specifying the vision and the strategy or strategies to achieve this vision over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Human Capital

A

Knowledge and skills of entire workforce (ex employees)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Social Capital

A

Involves relationships inside and outside the firm that help in efforts to accomplish tasks and create value for stakeholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Balanced Scorecard

A

Is a tool firms use to determine if they are achieving an appropriate balance on using strategic and financial controls as means of positively influencing performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Strategic Leadership and SMP walkthrough

A

Effective Strategic Leadership -> vision and mission -> successful strategic actions -> formulation anf implementation of strategies -> strategic competitiveness above-average returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Transformational Leadership

A

Motivating followers to exceed the expectations they expect from others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Characteristics of Transformational Leaders

A

High degree of integrity and character with emotional intelligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Primary Factors Determining the Level of Decision-Making Discretion

A
  1. External Environment Sources ( industry growth, rate of market growth in primary industry, degree of product differentiation)
  2. Organization Characteristics (size, age, resources and structure)
  3. Manager Characteristics (commitment to firm and strategic outcomes, people skills, aspiration levels)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Role of Board of Directors

A

Monitor firms strategic direction and represents stakeholder interests

Higher performance linked to active board involvement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

CEO Influence on the Board

A

Powerful CEOs can appoint sympathetic board members

CEO’s decision-making discretion influenced by the board’s latitude

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

CEO Duality

A

CEO also serving as chair increases power

Can lead to poor performance and weak board oversight

More common in larger firms; shareholder activism opposes i

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Family Influence on Top Management

A

Family ownership can create power imbalances

Family ties can cause conflict unless balanced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

CEO and Top Management Tenure

A

Long tenure = more influence on board decisions

Limits strategic options but improves strategic control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Managerial Succession Overview

A

CEO selection is critical for firm performance

Board of directors’ key responsibility is to select CEO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Leadership Screening Systems

A

Identify internal and external strategic leadership talent

Training and development programs shape leadership skills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Internal vs. External Managerial Labor Markets

A

Internal: Promotion from within the firm (66% of Fortune 500 CEOs)

External: Hiring from outside the fir

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Benefits of Internal CEO Succession

A

Maintains commitment to existing strategy

CEO familiarity with products, markets, and operations

Reduces turnover and retains firm-specific knowledge

24
Q

Reasons for External CEO Succession

A

Need for innovation

Reversing poor performance

Rapid industry growth

Need for strategic change

25
CEO Succession and Strategy Outcomes
Internal CEO + Homogeneous Team: Stable strategy Internal CEO + Heterogeneous Team: Innovation likely External CEO + Homogeneous Team: Ambiguous strategy change External CEO + Heterogeneous Team: High chance of strategic change
26
Interim CEO
Appointed in emergencies or lack of succession plan Usually internal to maintain stability
27
Foreign CEOs
Challenge due to cultural differences Success depends on understanding local culture and practices
28
Two Parts of Strategic Direct
Core Ideology: Motivates employees through company’s heritage Envisioned Future: Challenges employees to exceed expectati
29
Importance of Strategic Flexib
Vision remains stable; strategies must adapt to external changes Risk aversion from past success can prevent strategic adjustments
30
Impact of CEO Behahaviour
Risk-Averse CEOs: Resist change, limiting strategic progress Erratic CEOs: Ambivalence in turbulent environments lowers performance Charismatic CEOs: Inspire commitment but must align changes with firm’s strengths
31
Incentive Compensation
Stock options drive talented executives to select better strategies Less effective with lower-skilled executives
32
Ambicultural Approach
Combines the best practices from different cultures Supports long-term success through strategic adaptability
33
Role of Strategic Leaders in Core Competencies
34
Role of Strategic Leaders in Core Competencies
Ensure core competencies align with strategy selection and implementation Continuously reshape capabilities based on market feedback
35
Risks of Layoffs and Human Capital Lo
Moderate layoffs → Short-term performance improvement Large layoffs → Loss of knowledge and long-term performance decline Retaining human capital critical for maintaining core competencies
36
Social Capital Definitio
Relationships inside and outside the firm that help create value Internal: Cooperation among employees External: Partnerships with suppliers, customers, and competitors
37
Building Social Capital
Strategic alliances to share complementary resources Enhances ability to adapt to opportunities and threats
38
Entrepreneurial Mind-Set Overview
Encourages strategic leaders and employees to pursue entrepreneurial opportunities Important for both for-profit and not-for-profit organizations Drives growth and innovation
39
Entrepreneurial Opportunities
A key source of growth and innovation Firms invest in opportunities as real options to maintain future strategic flexibility Example: Oil companies acquire land leases with the option to drill for oil
40
Strategic Entrepreneurship
Pursuing entrepreneurial opportunities to earn above-average returns Requires employees to have an entrepreneurial mind-set
41
Five Dimensions of Entrepreneurial Mind-Set
1. Autonomy – Freedom for employees to take actions without organizational constraints 2. Innovativeness – Supporting new ideas, experimentation, and creative processes 3. Risk Taking – Willingness to accept measured risks when pursuing opportunities 4. Proactiveness – Anticipating future market needs and acting before competitors 5. Competitive Aggressiveness – Taking bold actions to outperform rivals consistently
42
Example of Real Options Strateg
Buying land to keep the option of building on it in the future Forming strategic alliances to have the option to acquire the partner later
43
Changing Organizational Cultur
Changing culture is harder than maintaining it Incremental changes = implementing strategies Radical changes = selecting new strategies
44
Success Factors Changing Organizational Culture
Effective communication and problem-solving Selecting the right people Performance appraisals aligned with new values Reward systems supporting desired behaviors
45
Role of Leadership in Cultural Change
Success depends on CEO, top management, and middle managers’ active support Middle-level managers need discipline to align culture with firm’s vision Downsizing can harm culture if not handled according to core values
46
Emphasizing Ethical Practices
Ethical practices improve the effectiveness of strategy implementation Strong ethics create social capital (goodwill) Unethical behavior, if accepted, becomes normalized over time Ethical failures can lead to executive turnover and investor backlash
47
Encouraging Ethical Decision-Maki
Strategic leaders should: 1. Establish and communicate a clear code of conduct 2. Continuously revise and update the code 3. Disseminate the code to all stakeholders 4. Develop internal controls to enforce the code 5. Reward ethical behavior and whistleblowing 6. Create a work environment based on respect and dignity
48
Establishing Balanced Organizational Contr
Controls – Formal, information-based procedures to guide organizational activities • Strategic Control – Focuses on strategic actions and long-term goals • Financial Control – Focuses on short-term financial outcomes • Challenge: Balancing strategic and financial controls to support performance
49
BSC: Financial
CF, ROE, ROA
50
BSC: Customer
Anticipation of customer needs Customer service effectiveness Percentage of repeat business Quality of customer communication
51
BSC: Internal Business Process
Asset utilization, employee morale, turnover rates
52
BSC: Learning and Growth
Innovation, new product development, skill development
53
Risk of Overemphasis on Financial Contr
Financial controls reflect past outcomes, not future drivers of success Overemphasis = short-term gains at the expense of long-term performance
54
Strategic Leaders’ Role in Balancing Controls
Ensure strategic controls (future focus) and financial controls (current focus) are balanced Use strategic controls to support future investments and competitive advantage Provide subunits with autonomy to adapt to market conditions
55
Strategic Control and Autonomy
Promotes resource sharing among business units Encourages market-specific flexibility Supports competitive advantage through independent decision-making

BUS 478 - Chapter 12 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions