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Ch.1 Strategic mgmt
| Question | Answer |
|---|---|
| What are the two perspectives of Leadership? | Romantic view and External control perspective |
| Romantic view | Leader is the key force in organization's success |
| External control perspective | Focus is on external factors that affect an organization's success Ex. E*Trade: Decline in real estate values in 08 sharply eroded the value of its mortgage-backed securities. |
| Leaders can make a difference by being aware of _________ and _________ faced in the _________ environment. | Opportunities; threats; external |
| Leaders can make a difference by having a thorough understanding of the firm's ______________ and __________. | resources; capabilities |
| A CEO made a lot of mistakes such as committing errors in assessing the market and competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. This illustrates the _ | Romantic |
| Strategic Management | The analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. |
| Strategic management must become both a ________ and a ___ ___ _________ throughout the organization. | process; way of thinking |
| Strategic management is used to compete in order to create... | competitive advantages in the market place-unique, valuable and difficult to copy. |
| What are the three processes of strategic management? | Analysis, strategic decisions, and actions |
| analysis | (1)strategic goals (vision, mission, strategic objectives) (2) Internal and external environment of the firm |
| Strategic decisions | What industries should we compete in? How should we compete in those industries? |
| Actions | Implementation; allocate necessary resources; design the organization to bring intended strategies to reality |
| operational effectiveness | means performing similar activities better than rivals |
| Sustainable competitive advantage | is possible only by performing different activities from rivals or performing similar activities in different ways. |
| stakeholders | individuals, groups and organizations who have a stake in the success of the organization, including owners, employees, customers, suppliers, and the community at large. |
| What is the essence of strategic management? | Study of why some firms outperform others-not operational effectiveness |
| What are two fundamental questions? | (1) How should we compete in order to create competitive advantages in the marketplace? (2)How can we create competitive advantages in the marketplace that are unique, valuable, and difficult for rivals to copy or substitute? |
| What are the 4 key attributes of strategic management? | (1) Directs the organization toward overall goals and objectives; (2) Includes multiple stakeholders in decision making; (3) Needs to incorporate short-term and long-term perspectives; (4) Recognizes trade-offs between efficiency and effectiveness. |
| Efficiency | performing actions at a low cost relative to a bench mark--> doing things right |
| Effectiveness | tailoring actions to the needs of an organization rather than wasting effort--> doing the right thing |
| Ambidexterity | Manager's ability to be both proactive in taking advantage of future opportunities as well as in exploiting an existing resource base. |
| An individual who takes time and is alert to opportunities beyond the confines of his/her own jobs is an example of what? | Ambidexterity |
| True or False. Ambidextrous individuals are incooperative and never seek out opportunities? | False. |
| True or False. Individuals who are multi-taskers and who are comfortable wearing more than one hat are considered ambidextrous? | True |
| There are two strategic management processes. What are they? | Intended Strategy and Realized Strategy |
| Intended Strategy | Decisions are determined only by analysis-rarely survives in original form |
| Realized Strategy | Decisions are determined by both analysis and unforseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences-combination of deliberate and emergent strategies. |
| Strategy Formation | It is developed at several levels including business level, corporate level, international, and entrepreneurial |
| Business level | how to compete in a given business |
| Corporate level | What businesses and how to achieve synergy |
| International | how to enter and attain competitive advantage internationally |
| Entrepreneurial | Recognize opportunity and formulate effective strategy |
| Strategy Implementation | Establishing effective means to coordinate and integrate activities within the firm as well as with suppliers, customers, and alliance partners. |
| Corporate Governance | The relationship among various participants in determining the direction and performance of corporations. Ex. Shareholders, Mgmt (CEO) Board of Directors. |
| Board of Directors | Elected representative of the owners |
| Job of Board of Directors | To ensure interests and motives of management are aligned with those of the owners, i.e. shareholders |
| What are the three mechanisms to ensure effective corporate governance (internal)? | (1) An effective and engaged Board of Directors; (2) Shared activism; (3) Proper managerial rewards and incentives |
| What are the external controls of corporate governance? | Banks, analysts, financial press, takeovers |
| Stakeholder Management | Firm's strategy for recognizing and responding to the interests of all its salient stakeholders. |
| What are the two view of stakeholder management? | Zero-sum view and stakeholder symbiosis view |
| Zero-sum view | Stakeholders compete for attention and resources of the organization; gain of one is a loss to the other |
| Stakeholder symbiosis view | Stakeholders are dependent upon each other for their success and well-being; mutual benefits |
| Outback Steakhouse has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. This is an example of ________. | Stakeholder symbiosis |
| Crowdsourcing | Practice wherein the Internet is used to tap a broad range of individuals and groups to generate ideas and solve problems. Ex. Linux, Amazon, Wikipedia |
| Social Responsibility | The expectation that businesses or individuals will strive to improve the overall welfare of society. |
| What is the business perspective of social responsibility? | This means that managers must take active steps to make society better by virtue of the business being in existence. |
| Top bottom line | Assessment of a company's performance in financial, social, and environmental dimensions |
| What are some of Starbuck's tangible benefits from social responsibility? | Attracting and retaining partners, customer loyalty, reducing operating costs, and creating a sustainable supply chain. |
| Strategic management perspective | There is an emerging need for empowerment and a strategic management perspective throughout organizations-due to complex, interconnected and ever changing global economy |
| What is the responsibility of managers in a strategic management perspective? | Managers must make a major effort to effect transformational change, which involves extensive communication, incentives, training and development |
| What are the three types of leaders? | Local line leaders, Executive leaders, and internal networkers (informal leader) |
| Local line leaders (first-line supervisor) | Have significant profit-and-loss responsibility |
| Executive leaders | Champion and guide ideas, create a learning infrastructure, establish a domain for taking action |
| Internal networkers (informal leader) | Little position power or formal authority but generate power through the conviction and clarity of their ideas. |
| Organizations express priorities best through stated goals and objectives that form a _____________. | hierarchy of goals |
| Hierarchy of goals | Goals ranging from those that are less specific yet able to evoke powerful and compelling mental images to those that are more specific and measurable. |
| Organizational vision | Goal that is "massively inspiring, overarching, and long term" |
| What is a representation of a destination that is driven by and evokes passion. | Organizational goals. |
| Disneyland's vision to be the happiest place on earth is an example of what strategic direction? | organization vision |
| The walk doesn't match the talk and irrelevance are examples of what? | Why visions fail |
| not the holy grail | no one elusive solution to solve all the company's problems |
| What is meant by the statement "an ideal future irreconciled with the present"? | Vision must be anchored in reality-don't paint a rosy picture if present environment is not supportive. |
| Mission Statement | set of goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage. |
| What has the greatest impact when it reflects an organization's enduring, overarching strategic priorities and competitive positioning? | Mission Statement |
| Federal Express's _______ _______ is "To produce superior financial returns for our shareholders as we serve our customers with the highest quality transportation, logistic, and e-commerce". | Mission Statement |
| A good mission statement, by addressing each principal theme, communicates why an organization is _____ and ______. | special and different |
| Strategic Objectives | Goals that are used to operationalize the mission statement. |
| What helps provide guidance on how to achieve higher level goals-mission and vision? | Strategic Objectives |
| Strategic objectives are meaningful if... | Measurable, Specific, Appropriate, Realistic, and Timely |
| Measurable | At least one indicator that measures progress toward meeting objective |
| Specific | Clear message of what to accomplish |
| Appropriate | Consistent with vision and mission |
| Realistic | Challenging but doable |
| Timely | Time frame for achieving objective |
| Strategic objectives help ________ and _________employees to higher levels of commitment and effort | motivate and inspire |
| Strategic objectives channel employees throughout the organization toward _________ _______. | Common Goals |
Created by:
kmpech
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