Test 1 (Ch 1-5) Flashcards
(51 cards)
Know what GE Ecomagination and what GE did.
BOOK beginning of ch. 1 pg 2
What is a companies Vision?
Describes what the organization would like to become.
What is a companies Mission?
The purpose or reason for the organizations existence. Tells what the company is providing to the society.
What are Objectives?
The end results of planned activity.
What are Strategies?
A comprehensive master plan that states how the corporation will achieve its mission and objectives.
What is Strategic Management?
A set of managerial decisions and actions that determines the long-run performance of the company.
What are the 4 phases of strategic management?
1) Basic financial planning
2) Forecast-based planning
3) Externally oriented (strategic) planning
4) Strategic Management
What are 3 benefits of Strategic Management?
1) Clearer sense of strategic vision for the firm.
2) Sharper focus on what is strategically important.
3) Improved understanding of a rapidly changing environment.
What is Globalization?
The integrated internationalization of markets and corporations.
What is Environmental Sustainability?
The use of business practices to reduce a company’s impact upon the natural, physical environment.
What is Learning Organization?
An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.
What are the main activities of a Learning Organization?
1) Solving problems systematically
2) Experimenting with new approaches
3) Learning from past experience, history and experiences of others.
4) Transferring knowledge quickly and easily throughout the organization.
What is the Strategic Decision Making Process?
1) Evaluate current performance results
2) Review corporate governance
3) Scan and assess the external environment
4) Scan and asses the internal corporate environment
5) Analyze strategic (SWOT) factors
6) Generate, evaluate, and select the best alternative strategy
7) Implement selected strategies
8) Evaluate implemented strategies
What is Environmental Scanning?
The monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation.
What is SWOT analysis?
Strength, Weaknesses, Opportunities, and Threats/
External Environment- Opportunities and Threats
Internal Environment- Strength and Weaknesses
What are the 4 basic elements of Strategic Management?
- Environmental Scanning- The monitoring, evaluating and disseminating of information from the external and internal environments to key people within the corporation.
- Strategy Formulation- The development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate Strengths and Weaknesses.
- Strategic Implementation- A process by which strategies and policies are put into action through the development of programs, budgets, and procedures.
- Evaluation and Control- A process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance.
What are the 3 types of Strategies?
1) Corporate Strategies- Overall direction of company and management of its business
2) Business Strategy- Competitive and Cooperative Strategies
3) Functional Strategy- Maximize resource productivity.
What are Mintzbergs 4 modes of strategic decision making?
1) Entrepreneurial mode- Made by 1 powerful individual. Focus is on opportunities; problems are secondary.
2) Adaptive Mode- sometimes referred as “muddling through”. characterized by reactive solutions to existing problems, rather then a proactive search for new opportunities.
3) Planning Mode- Involves systematic gathering of appropriate information for situations analysis, the generation of feasible alternative strategies, and the rationale selection of the most appropriate strategy.
4) Logical Mode (added by Quinn)- A synthesis of the planning, adaptive, and, to a lesser extent, the entrepreneurial mode.
Know about Home Depot
beg of Ch. 2 pg 42
What is a Corporation?
A mechanism established to allow different parties to contribute capital, expertise, and labor for their mutual benefit.
What is the Board of Directors (BOD) and what are the BOD responsibilities?
BOD-oversees top management with the concurrence of the shareholders.
1) Setting corporate strategy, overall direction, mission or vision.
2) Hiring and firing the CEO and top management.
3) Controlling, monitoring, or supervising top management.
4) Reviewing and approving the use of resources.
5) Caring for shareholder interests.
6) Assures corporation is managed in accordance to laws and regulations.
What are the 3 Members of a Board of Directors?
- Inside Directors- Officers or executive employed by the boards corporation.
- Independent Outside Directors- Executives of other firms but are not employees of the boards corporation.
- Family Directors- Descendants of the founder and own significant blocks of stock.
What is Agency Theory?
Problems arise in corporations because top management is not willing to accept responsibility for their decisions unless they own a substantial amount of stock in the corporation.
What is Stewardship theory?
The result of long tenure with the corporation, insiders (top management) tend to identify with the corporation and its success. Act in the best interest of the corporation more then self-interest.
