MGT 405 Chpt 1

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LShak87
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67470
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MGT 405 Chpt 1
Updated:
2011-02-19 16:22:54
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strategic management
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Managing the Strategy-Making Process for Competitive Advantage
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  1. how to most effectively manage a company's strategy-making process to create competitive avantage
    strategic leadership
  2. the task of selecting strategies
    stategy formulation
  3. the task of putting strategies into action
    stategy implementation
  4. capital that cannot be recovered if a company fails and goes bankrupt
    risk capital
  5. the returns that shareholders earn from purchasing shares in the company
    sharholder value
  6. the return that a company makes on the capital invested in the enterprise
    profitability
  7. measured by the increase in net profits over time
    profit growth
  8. high profitability and sustainable profit growth
    profitable growth
  9. a company's profitability is greater than the average profitability and profit growth of other companies competing for the same set of customer
    competitive advantage
  10. when a company's strategies enable it to maintain above-average profitability for a number of years
    sustained competitive advantage
  11. manager's conception of how the set of strategies his company pursues should mesh together into a congruent whole
    business model
  12. bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions
    general managers
  13. responsible for supervising a particular function, that is, a task, an activity, or an operation, such as accounting, marketing, R&D, IT, or logistics
    functional managers
  14. a company that competes in several different businesses and has created a separate, self-contained division to manage each
    mutidivisional company
  15. these individuals occupy the apex of decision making within an organization, including CEO's and other senior executives, and corporate staff
    corporate-level managers
  16. self-contained division (with its own fuctions, for example, financec, purchasing, production, and marketing departments) that provides a product or service for a particular market
    business unit
  17. describes what the company does
    mission
  18. lays out some desired future state and what the company would like to achieve
    vision
  19. states how managers and employees should conduct themselves, how they should do business, and what kind of organization they should build to help a company achieve its mission
    values
  20. individuals or groups that have an interest, claim, or stake in the company, in what it does, and in how well it performs
    stakeholders
  21. identifies strategic opportunies and threats from an organization's operating environment that will affect how it pursues its mission
    external analysis
  22. focuses on reviewing the resources, capabilities, and competencies of a company, including it's strengths and weaknesses
    internal analysis
  23. comparison of strengths, weaknesses, opportunities, and threats
    SWOT analysis
  24. indicates that strategic planning is ongoing; it never ends
    feedback loop
  25. the product of whatever planned strategies are actually put into action and of any unplanned (emergent) strategies
    realized strategy
  26. unplanned responses to unforeseen circumstances
    emergent strategies
  27. formulating plans that are based on what-if scenarios about the future
    scenario planning
  28. strategic plans formulated in a vacuum by top managers who have little understanding or appreciation of current operating realities
    ivory tower approach
  29. those that appear time and time again
    systematic errors
  30. human decision makers process information and reach decisions by falling back on certain rules of them that help us make sense out of the complex world
    cognitive biases**
  31. decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of these beliefs, even when presented with evidence that their beliefs are wrong
    prior hypothesis bias
  32. decision makers, having already committed significant resources to a project, commit even more resources even if they receive feedback that the project is failing
    escalating commitment
  33. involves the use of simple analogies to make sense out of comlex problems
    reasoning by analogy
  34. rooted in the tendency to generalize from a small sample or even a single vivid anecdote
    representativeness
  35. the tendency to overestimate one's ability to control events
    the illusion of control
  36. arises from our predisposition to estimate the probability of an outcome based on how easy the outcome is to imagine
    availability error
  37. the generation of both a plan and a critical analysis of the plan
    devil's advocacy
  38. the generation of a plan (a thesis) and a counterplan (an antithesis) that reflect plausible but conflicting courses of action
    dialectic inquiry
  39. planners identify a reference class of analogous past strategic initiatives, determine whether those initiatives succeeded or failed, and evalute the project at hand against those prior initiatives
    outside view
  40. the ability to understand one's own moods, emotions, and drives, as well as their effect on others
    self-awareness
  41. the ability to control or redirect disruptive impulses or moods, that is, to think before acting
    self-regulation
  42. a passion for work that goes beyond money or status and a propensity to pursue goals with energy and persistence
    motivation
  43. the ability to understand the feelings and viewpoints of suboridnates and to take those into account when making decisions
    empathy
  44. friendliness with a purpose
    social skills
  45. The major goal of a company is to...
    ...maxmize the returns that shareholders get from holding shares in the company
  46. Formal strategic planning models stress that an organization's strategy is...
    ...the outcome of a rational planning process
  47. The major components of the strategic management process are...
    • defining the mission, vision, values, & major goals
    • analyzing external & internal environment
    • choose aligning busines model & strategies
    • adopting structures & control systems to implement chosen strategies
  48. What are the 3 techniques for enhancing the effectiveness of strategic decision making?
    • devil's advocacy
    • dialectic inquiry
    • outside view
  49. What are the levels of strategic management?
    • Corporate-level managers
    • Business-level managers
    • Functional-level managers
  50. What are the 4 main components of a mission statement?
    • Mission
    • Vision
    • Key values
    • Major goals

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