Definitions in Assignment 1

Question 1

Organizational boundaries

Answer 1

define the limits within which an organization operates, setting the scope for decision-making, resource allocation, and interactions with external entities.

Question 2

Vertical integration

Answer 2

integration is a business strategy where a company controls multiple steps in its supply chain. It can involve acquiring suppliers (backward integration) or moving into distribution (forward integration).

Question 3

Horizontal integration

Answer 3

is a business strategy where a company expands by acquiring or merging with competitors in the same industry.

Question 4

Cultural integration

Answer 4

refers to the process of different cultures blending and coexisting, often through shared values, traditions, and social practices.

Question 5

Outsourcing

Answer 5

is the business practice of hiring external companies or individuals to handle tasks, services, or production that were traditionally done in-house.

Question 6

Make or buy

Answer 6

buy is strategic choice businesses face when deciding whether to produce a product or service in-house (make) or purchase it from external suppliers (buy).

Question 7

Transaction Cost Economics

Answer 7

analyzes the costs of economic exchanges, helping firms decide between in-house production or outsourcing. It considers factors like market costs, internal costs, and asset specificity. Businesses use TCE to minimize inefficiencies and enhance decision-making. Developed by Ronald Coase and expanded by Oliver Williamson, it influences organizational strategies.

Question 8

Bounded rationality

Answer 8

rationality is the idea that individuals make decisions with limited information, time, and cognitive capacity. Instead of seeking perfect solutions, people settle for “good enough” choices due to constraints.

Question 9

Opportunism

Answer 9

Opportunism is the practice of exploiting situations or relationships to gain an advantage, often with little regard for ethics or long-term consequences. In business, it can manifest in deceptive contracts, price manipulation, or strategic behavior that prioritizes short-term gains.

Question 10

Asset specificity

Answer 10

refers to the degree to which an investment or resource is tailored to a specific transaction, making it difficult to repurpose for other uses. High asset specificity means an asset has limited value outside its intended use, which can create dependency between parties in a transaction.

Question 11

Make and buy (concurrent sourcing)

Answer 11

is a strategy where firms simultaneously produce goods or services in-house and purchase them from external suppliers. Instead of choosing between make or buy, companies balance both approaches to optimize costs, flexibility, and risk management.

Question 12

M-form

Answer 12

form is an organizational structure where a company is divided into semi-autonomous divisions, each responsible for its own operations, products, or markets. This model allows firms to decentralize decision-making while maintaining overall corporate control.

Question 13

Coopetition

Answer 13

is a business strategy where companies simultaneously compete and cooperate to achieve mutual benefits. Instead of purely seeing rivals as threats, firms work together in areas like research, technology sharing, or market expansion while still competing in other areas.

Question 14

Backward integration

Answer 14

integration is a business strategy where a company expands its operations to include suppliers or raw material production, reducing dependency on third parties. This allows firms to control costs, ensure quality, and secure supply chains, making operations more efficient.

Question 15

Forward integration

Answer 15

is a business strategy where a company expands into distribution or retail, selling its products directly to consumers instead of relying on intermediaries. This helps firms gain more control over pricing, customer experience, and market positioning.

Question 16

Embedded ties

Answer 16

ties refer to strong, long-term relationships between individuals or organizations that go beyond simple transactions.

Question 17

Inter-firm cooperation

Answer 17

When two or more companies work together to achieve shared goals combining resources and knowledge.

Question 18

Strategic alliance

Answer 18

A formal agreement between companies to collaborate for mutual benefit, without merging fully.

Question 19

Alliance governance

Answer 19

How an alliance is managed, including decision-making, control, and dispute resolution.

Question 20

Equity alliances

Answer 20

Partnerships where companies take partial ownership of each other’s business.

Question 21

Non-equity alliances

Answer 21

Collaborations where companies agree to work together without exchanging ownership or shares.

Question 22

Public–private partnership

Answer 22

A cooperative arrangement between government and private companies to achieve goals like infrastructure projects.

Question 23

Joint ventures

Answer 23

A separate legal entity created and owned by two or more firms, each contributing resources and sharing profits/losses.

Question 24

Alliance life cycle

Answer 24

The stages an alliance goes through—from formation, growth, and maturity to possible decline or end.

Question 25

Competency traps

Answer 25

When firms over-rely on what they know well, missing new opportunities or improvements.

Question 26

Networks

Answer 26

Groups of interconnected companies or individuals who work together, share knowledge, and build relationships.

Question 27

Open strategy

Answer 27

Involving external parties, like customers or partners, in shaping a company’s strategy.

Question 28

Blockchain

Answer 28

A digital, decentralized ledger that records transactions transparently and securely across many computers.

Question 29

MNE

Answer 29

A company that operates in multiple countries.

Question 30

Mandates

Answer 30

Specific roles or responsibilities assigned to subsidiaries by headquarters.

Question 31

Globalization

Answer 31

The process of increasing interconnectedness of markets, people, and businesses across countries.

Question 32

Glocalization

Answer 32

Combining global and local strategies to adapt to different markets.

Question 33

Hybridization

Answer 33

Blending different cultures, ideas, or business practices.

Question 34

Multi-divisional form

Answer 34

An organizational structure dividing a company into units based on products or regions.

Question 35

Arbitrage

Answer 35

Taking advantage of differences in costs, prices, or regulations across markets.

Question 36

Multinational corporations

Answer 36

Companies that manage production or delivery services in multiple countries.

Question 37

Matrix organizations

Answer 37

A structure where employees report to multiple managers, like both a project and functional leader.

Question 38

Integrated network

Answer 38

A structure where resources and capabilities are shared across locations for efficiency and innovation

Question 39

Project-based knowledge networks

Answer 39

Collaborative groups sharing expertise for specific projects.

Question 40

BRICs

Answer 40

Refers to Brazil, Russia, India, and China, large emerging economies.

Question 41

Chinese family businesses

Answer 41

Firms in China often run and controlled by family members.

Question 42

State-owned enterprises

Answer 42

Companies owned or controlled by the government.

Question 43

Belt and Road Initiative

Answer 43

A global development strategy by China to improve trade and infrastructure across Asia, Africa, and Europe.

Question 44

Corporate governance

Answer 44

Corporate governance is essentially defining how a business is run. It is the rules, policies, and strategic framework for how the business will operate. It is also the definition of how the business leadership will be structures, such as the board of directors.

Question 45

Ownership and management

Answer 45

Ownership and management can be the same, or different depending on the structure of the business. In a corporation with shareholders, for example, shareholders are owners of the company but are not part of the management. This management is performed by a corporate management team under the watch of a board of directors. Using a familial governance as a contracting example, the business is owned and managed by a family. Management sets the vison and strategy for the company and oversees the day-to-day operations to ensure execution.

Question 46

Ownership and control

Answer 46

Ownership and control can be described when the owner of a business also controls how the business is run, or managed. An example of this is when an owner of a limited liability with shareholders is able to hand-pick the board of directors themselves, creating a board who is custom tailored to run the business the way the owner would like.

Question 47

Agency theory

Answer 47

Agency theory is the study of relationships and conflicts between the business authorities and their agents. The authorities are the principles, or leaders who hire the agents, or those acting on behalf of the principles. Generally, principles will hire agents who are aligned with their ideals and vision, but many times agents will act in conflict to the principle.

Question 48

Principals and agents

Answer 48

In agency theory, The authorities are the principles, or leaders who hire the agents, or those acting on behalf of the principles. Generally, principles will hire agents who are aligned with their ideals and vision, but many times agents will act in conflict to the principle.

Question 49

Agency costs

Answer 49

Agency costs are incurred when principles are needed to spend time monitoring, guiding, or correcting the actions of agents, to align these actions with the will or expectations of the principle.

Question 50

Shareholders

Answer 50

When companies go public, they offer partial ownership for purchase by way of company shares. Each share represents some percentage of ownership of the company, and the owner of the share is called a shareholder. Shareholders join in ownership with the purpose of making profits from increased value of each share.

Question 51

Stakeholders

Answer 51

Stakeholders is more broad than the term shareholders. Stakeholders describe anyone associated with a business who stands to gain or lose something depending on the success of the business. This can include shareholders, employees, and communities.

Question 52

Shareholder capitalism

Answer 52

Shareholder capitalism is a model popularized in the United States. Companies are publicly owned in this model, meaning they allow the public to purchase and sell ownership of the company through shares distributed publicly. These shareholders nominate a board of directors to hire and oversee the company's leadership

Question 53

Social democratic stakeholder capitalism

Answer 53

This model expands the focus beyond shareholders to all stakeholders, which creates greater inclusion of, and accountability to employees and communities. It integrates some social equity policies into the model such as heavy support of labor rights through unions and collective bargaining agreements

Question 54

State capitalism

Answer 54

In state capitalism, the government plays a very strong role in the size, operation, and even regulation of the economy. The state does this by owning large shareholder portions and/or managing large businesses within key industries such as banking, defense, and energy industries.

Question 55

Familial capitalism

Answer 55

A business is owned and operated by family members, maintaining full control without offering public shares, and no board of directors in place. These businesses are typically kept in the family, passed down to future generations.

Question 56

Corporate codes of ethics

Answer 56

Provide a structured guide for employees and leaders to facilitate everyday decision making and interactions which could have conflict with moral or ethical obligations. In theory, this should provide insurance for both the employees and the company against purposely or accidentally making unethical decisions, and a way for unethical actions to be identified and acted upon.

Question 57

CSR

Answer 57

CSR is an acronym for Corporate Social Responsibility. CSR is a corporation's responsibility to ensure ethically, and with social responsibility, including a focus on sustainability. CSR has grown in importance in recent years, with a focus on reputation which can be driven positively or negatively based on CSR perception by the public.

Question 58

Strategic CSR

Answer 58

Strategic CSR is the idea of aligning a businesses CSR efforts with its vision, products, purpose, and/or target markets. By aligning CSR efforts with the business in these ways, there can be great efficiencies, excellent marketing opportunities, and increased appeal to consumers.

Question 59

Greenwashing

Answer 59

Greenwashing is a term used to describe a business which takes advantage of an opportunity with the goal of making itself look good. This can be a byproduct of strategic CSR. Companies are often accused of greenwashing when they have been accused or found to be in conflict with ethics or morals by the public, and in an effort to erase this reputation the business engages in CSR efforts to which might make them look like they are doing good. An attempt to control or change the narrative.

Question 60

Ecological modernization strategies

Answer 60

Ecological modernization strategies are a form of corporate social responsibility related specifically to ecological or environmental responsibility. This includes improving processes to increase the health of the environment while also increasing efficiency of the business. This can be a win-win situation.

Question 61

Deliberate strategy

Answer 61

Deliberate strategy is a strategy created by leadership that is design with specific intent, to perform specific purpose. This type of strategy is well thought through, planned, and focused on a set of expectations.

Question 62

Emergent strategy

Answer 62

Emergent strategy is a product of interactions with the business's environment, keeping track of changes and determining patterns which can then indicate how a strategy should be formed or changed to adapt.

Question 63

Process

Answer 63

Process strategy is a method of creating a strategy where leadership defines the process to be used. This is defined only for the process of creating the strategy, but the strategy itself can be defined by the users/creators.

Question 64

Mintzberg’s 5 Ps of strategy

Answer 64

The 5 P's of strategy are: Plan: A predetermined course of action with a purpose, and expected outcome. Ploy: A strategic plan designed to trick or mislead and opponent to gain an advantage. Pattern: Something that recurs in a predictable fashion. Position: In business, position is placing a product or service in a market where it can achieve set goals. Perspective: The way something is viewed by others.

Question 65

Single loop learning

Answer 65

Single loop learning involves executing within a predefined framework or set of processes and taking learnings from failures or inefficiencies to improve that specific framework / process, but not taking into account that the framework or process might be the incorrect one.

Question 66

Double loop learning

Answer 66

Double loop learning is similar to single loop learning but takes into account the framework and/or process being used as well. Learnings and feedback are used to help define the proper framework or process for the situation, based on the learnings from execution. Is the outcome the most suitable outcome for the situation.

Question 67

Deutero-learning

Answer 67

Deutero learning is also known as triple loop learning. This form of learning includes primarily learning through communication and interaction, and is more cognitive than anything else.

Question 68

Sensemaking

Answer 68

Sensemaking is the process of gathering information from experiences and then interpreting this information into a personal understanding of what happened, and then how to act. By nature, sensemaking is a very subjective process, with subjective outcomes.

Question 69

Sensegiving

Answer 69

Sensegiving is essentially influencing the sensemakers. Sensegiving is the act of attempting to make the sensegivers think that their sense is the correct sense, in turn making the sensemaker implement that sense. This can also be construed as controlling.

Question 70

Cognitive maps

Answer 70

Cognitive maps are creations within one's mind that describe how something is, or how something works. This is a mental picture used to explain or visualize something within one's own mind.

Question 71

Organizational storytelling

Answer 71

Storytelling is a way of explaining something to others. It can be an elaborate string of events which depict a certain thought or situation, allowing the listener to better understand something through the storytelling effort.

Question 72

Strategy as narrative

Answer 72

A specific narrative is a very highly informed and detailed strategy which is used to execute a detailed strategy.

Question 73

Strategy as discourse

Answer 73

Discourse is very general, a bigger picture framework generally used as a high-level strategy.

Question 74

Machiavellian

Answer 74

This is a perspective that has been developed over numerous years. It highlights that decisions should be made with haste and not prolonged. This is thought about to bring success rather than failure.

Question 75

Organizational politics

Answer 75

These are the underlying motives behind various stakeholders in the business. Understanding the politics of an organization is important to gain support for various initiatives and projects.

Question 76

Power

Answer 76

This is necessary to enact decisions and comes in various forms. A person can gain power through status or position, through networking, and through understanding organizational politics to name a few examples.

Question 77

Strategic interests

Answer 77

Are the specific interests of various stakeholders. These interests play into the overall vision an individual or business is trying to achieve.

Question 78

Political skill

Answer 78

This is the ability for a person to understand the organizational politics and utilize them in favor of their desired outcome.

Question 79

Micro-politics

Answer 79

These are small imbalances of power that affect decisions throughout the organization.

Question 80

Business elites

Answer 80

These are individuals that hold upper level positions in an organization.

Question 81

Social capital

Answer 81

This is relationship building that is done through similar interests such as shared universities.

Question 82

Resistance

Answer 82

This describes the attitude of an individual or group towards a specific idea or change that they do not agree with.

Question 83

Non-decision-making

Answer 83

This happens when a decision is not brought up for various reasons. It could be because it is an unwelcome subject or has not been mentioned.

Question 84

Mobilization of bias

Answer 84

This is when a series of decisions are made to favor a specific group and there is resistance to anything that challenges the course that has been set.

Question 85

Employee voice

Answer 85

This is the amount of say that the employees have on various topics and strategic decisions.

Question 86

Three ‘faces’ or ‘levels’ of power

Answer 86

These are the various levels of power that individuals have. It can be decision-making power, non-decision-making power, or ideological power. The first allows for conflict, the second allows some decisions to be made with input and others without, and the third does not give any say.

Question 87

Strategic drift

Answer 87

This is when an organization fails to continue to review their strategy and stay ahead of environment changes. It is a form of complacency and can lead to business failure.

Question 88

Organizational paradigm

Answer 88

This is the lens that a company views decisions through and it is created over a long period of time, often not recognized by the decision makers.

Question 89

Sensemaking

Answer 89

This is when managers synthesize the information points they are gathering from the internal and external environment.

Question 90

Sensegiving

Answer 90

This is providing communication and information to those on your team so that they know the direction in which the organization or team is going.

Question 91

Evolutionary change

Answer 91

This is change that is made in small pieces rather than all at once.

Question 92

Revolutionary change

Answer 92

This is change that completely alters the way of working.

Question 93

Contingency perspective on change

Answer 93

This is a perspective that suggests that there is not only one “right” way of doing something.

Question 94

Three-step model of change

Answer 94

This is a change model that suggests there are three steps to change. The phases are unfreeze, change, and refreeze.

Question 95

Metaphors

Answer 95

Metaphors are used to communicate change by likening change to something familiar to many.

Question 96

Storytelling

Answer 96

This is a form of change communication that paints a picture of why the change is necessary and the desired outcome of that change.

Question 97

Framing

Answer 97

This technique is utilized to mold how someone views a particular idea.

Question 98

Power

Answer 98

This comes through various means and is necessary in order to enact change.

Question 99

Politics

Answer 99

This refers to the various stakeholders in an organization and their motives.

Question 100

Resistance to change

Answer 100

This is the tendency of most people when they encounter change. It is something that must be overcome by leaders in order for the proposed change to be successful.

Question 101

Productive resistance

Answer 101

This refers to when resistance is viewed as positive and can be utilized in shaping the change outcome.

Question 102

Resistance leadership

Answer 102

This refers to individuals who try to oppose change and attempt to lead others to oppose change with them.