Strategic Management Ch. 2

  1. Captures an organizations aspirations. Motivates members of the organization
    Vision, to is a common word
  2. Describes what an organization actually does, what its business is and why and how it does it
    Mission Statement, by is a common word
  3. Define ethical standards and norms that should govern the behavior of individuals within the firm
  4. Vision statements that define a business in terms of a good or service provided, less flexible
  5. Vision statements that define business in terms of providing solutions to customer needs
  6. Vision statements that provide managers with more strategic flexibility than product oriented missions
  7. To be effective, visions and missions need to be
    backed up by hard-to-reverse strategic commitments
  8. 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
  9. 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
  10. 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
  11. What is the role of functional managers in strategy formulation and implementation
    implementing business strategy within a single functional area
  12. Sequential, linear process that works reasonably well when the environment does not change much
    Top-down strategic planning
  13. Managers envision what-if scenarios and prepare contingency plans that can be called upon when necessary
    Scenario planning
  14. a firms realized strategy is generally a combination of its top-down intended strategy and bottom-up strategy resulting in
    planned emergence
  15. The strategic option that top managers decide most closely matches the current reality and which is then executed
    Dominant strategic plan
  16. Any unplanned strategic initiative undertaken by mid-level employees of their own volition
    Emergent strategy
  17. A conceptual framework of leadership profession with five distinct, sequential levels
    Level-5 leadership pyramid
  18. The outcome of a rational and structured top-down strategic plan
    Intended strategy
  19. A standalone division of a larger conglomerate, with its own profit-and-loss responsibility
    Strategic business unit (SBU)
  20. 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
Card Set
Strategic Management Ch. 2