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Captures an organizations aspirations. Motivates members of the organization
Vision, to is a common word
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Describes what an organization actually does, what its business is and why and how it does it
Mission Statement, by is a common word
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Define ethical standards and norms that should govern the behavior of individuals within the firm
Values
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Vision statements that define a business in terms of a good or service provided, less flexible
Product-oriented
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Vision statements that define business in terms of providing solutions to customer needs
Customer-oriented
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Vision statements that provide managers with more strategic flexibility than product oriented missions
Customer-oriented
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To be effective, visions and missions need to be
backed up by hard-to-reverse strategic commitments
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Why is it essential for a firm to anchor ethical values
- Employees tend to follow values practiced by leaders
- Guardrails that help keep the company on track
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What is the role of corporate executive in strategy formulation and implementation
To provide answers to the question of where to compete and how to create synergies among different business units
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What is the role of general managers in strategy formulation and implementation
- Answer the strategic question of how to compete in order to achieve superior performance
- Manage and align the firm's different functional areas for competitive advantage
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What is the role of functional managers in strategy formulation and implementation
implementing business strategy within a single functional area
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Sequential, linear process that works reasonably well when the environment does not change much
Top-down strategic planning
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Managers envision what-if scenarios and prepare contingency plans that can be called upon when necessary
Scenario planning
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a firms realized strategy is generally a combination of its top-down intended strategy and bottom-up strategy resulting in
planned emergence
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The strategic option that top managers decide most closely matches the current reality and which is then executed
Dominant strategic plan
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Any unplanned strategic initiative undertaken by mid-level employees of their own volition
Emergent strategy
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A conceptual framework of leadership profession with five distinct, sequential levels
Level-5 leadership pyramid
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The outcome of a rational and structured top-down strategic plan
Intended strategy
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A standalone division of a larger conglomerate, with its own profit-and-loss responsibility
Strategic business unit (SBU)
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A conceptual framework that views organizational outcomes - strategic choices and performance levels - as reflections of the values of the members of the top management team, who interpret situations through the lens of their unique perspectives
Upper-echelons theory
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