Strategic Management1

  1. Ethics
    The principles that define right and wrong decisions and behaviors.
  2. Stakeholders
    Individuals or groups who have a stake in or are significantly influenced by an organization's decisions and actions and who can influence the organization.
  3. Corporate Social Responsibility (CSR)
    The obligation of organizational decision makers to make decisions and act in ways that recognize the interrelatedness of business and society.
  4. Mission
    A statement of what specific organizational units do and what they hope to accomplish.
  5. World-class Organization
    An organization in which strategic decision makers take actions to help it be the best in the world at what it does.
  6. Internal Analysis
    The process of evaluating an organization's resources and capabilities.
  7. Offshoring
    Relocating business processes from one country to another.
  8. Outsourcing
    Moving non-core activities from being done internally to being done externally by an entity that specializes in that activity.
  9. Innovation
    Turning a creative idea into a product or process that can be used or sold.
  10. Technology
    Using equipment, materials, knowledge, and experience to perform tasks.
  11. Organizational Capabilities
    The various routines and processes that transform inputs (resources) into outputs (products including physical goods and services).
  12. Guerilla View
    The view that an organization's competitive advantage is temporary because the environment is characterized by continual, radical, and often revolutionary change.
  13. I/O View
    The view that focuses on the structural forces within an industry, the competitive environment of firms and how these influence competitive advantage.
  14. Resources
    All the financial, physical, human, intangible, and structural/cultural assets used by an organization to develop, produce, and deliver products or services to customers.
  15. Resource-based View
    The view that a firm's resources are most important in getting and keeping competitive advantage and that organization's are collections of assets and capabilities.
  16. Organizational Routines and Processes
    The regular, predictable, and sequential work activities done by organizational members.
  17. Strategy
    Goal-directed decisions and actions in which a firm's capabilities and resources are aligned with the opportunities and threats in its environment.
  18. Core-Competencies
    Any major value-creating capabilities organizations have that are essential to their businesses.
  19. Strategic Management
    The process of analyzing the current situation; developing appropriate strategies; putting those strategies into action; and evaluating, modifying, or changing those strategies as needed.
  20. Strategic Leadership
    The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.
  21. Distinctive Capabilities
    The special and unique capabilities that distinguish an organization from its competitors.
  22. Strengths
    Resources that the organization possesses and capabilities that the organization has developed, both of which can be developed into sustainable competitive advantage.
  23. Corporate Governance
    The way a corporation is governed or the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the many participants in organizations.
  24. Sarbanes-Oxley Act
    Federal law designed to protect investors by improving the accuracy and reliability of corporate disclosures.
  25. E-business
    A business conducted using electronic media such as the Internet, other computer networks, wireless computing, and so forth.
  26. Weakness
    Resources and capabilities that are lacking or deficient and that prevent the organization from developing sustainable competitive advantage.
  27. Organization Vision
    The comprehensive picture of what an organization stands for, what it believes in, and why it exists.
  28. Opportunities
    Positive external trends or changes that may help the organization improve its performance.
  29. Value Chain Analysis
    Systematic way of examining all the organization's functional activities and how well they create customer value (developed by Michael Porter).
  30. Goals
    Statements of desired outcomes.
  31. External Analysis
    The process of scanning and evaluating an organization's external environment.
  32. Threats
    Negative external trends or changes that may hinder the organization's performance.
  33. Open Systems
    The idea that organizations interact with and respond to their environment.
  34. Industry
    A group or groups of organizations producing similar or identical products.
  35. Strategic Group
    A group of firms competing within the same industry that have similar strategies and resources.
  36. Environmental Uncertainties
    The amount of change and complexity in an organization's environment.
  37. Exit Barriers
    Economic, strategic, and emotional factors that keep companies competing in business even though they may be earning low or even negative returns on investment.
  38. Switching Cost
    The one-time cost facing the buyer who changes from one supplier's product to another.
  39. Internal Audit
    A thorough assessment of an organization's internal functional areas.
  40. Capabilities Assessment Profile
    An in-depth evaluation of an organization's capabilities.
  41. External Sectors
    • Specific: Customers, Competitors, Suppliers, and other Industry-Competitive Variables
    • General: Economic, Demographic, Sociocultural, Political-Legal, and Technological
  42. Organizational Change
    A structured transition in what organization does and how it does it.
  43. Change Agents
    Someone who initiates and oversees change efforts.
  44. Creativity
    The ability to combine ideas in a unique way or to make unusual associations between ideas.
  45. For Uniqueness Resources Must (4 Things)
    • 1. Add Value
    • 2. Be Rare
    • 3. Be Hard to Imitate
    • 4. Be Exploitable
  46. Strategy Formulation
    Developing and then choosing appropriate strategies.
  47. Strategy Evaluation
    Evaluating the implementation and outcomes of strategies.
  48. Strategy Implementation
    Putting strategies into action.
  49. Situation Analysis
    Scanning and evaluating the current organizational context and external and internal environments.
  50. Functional or Operational Strategy
    Goal-directed plans and actions of the organization's functional areas.
  51. Corporate Strategy
    Goal-directed plans and actions concerned with the choices of what businesses to be in and what to do with those businesses.
  52. Competititve or Business Strategy
    Goal-directed plans and actions concerned with how an organization competes.
  53. Specific Environment
    • 1. Customers
    • 2. Competitors
    • 3. Suppliers
    • 4. Industry-Competitive Variables
  54. General Environment
    • 1. Economic
    • 2. Demographic
    • 3. Sociocultural
    • 4. Political - Legal
    • 5. Technological
  55. External Information System
    An information system that provides managers with needed external information on a regular basis.
  56. Organizational Goals
    Statements of desired outcomes.
  57. Porter's Five Forces Model
    • 1. Current Rivalry- Eight factors: # of competitors, rate of industry growth, level of fixed storage costs, differentiation and switching costs, capacity increments required, diversity of competitors, extent of strategic stakes, and extent of exit barriers.
    • 2. Potential Entrants- Seven factors: barriers to entry, cost disadvantages, product differentiation, capital requirements, switching costs, access to distribution channels, and government policy protection.
    • 3. Bargaining Power of Buyers- Eight factors:
    • 4. Bargaining Power of Suppliers- Seven factors
    • 5. Threat of Substitute Product- Whether there is another industry that can satisfy customers' needs.
  58. Three Levels of Strategy Formulation
    • Functional Strategies - Goal-directed plans and actions of the organization's functional areas.
    • Competitive Strategies - Goal-directed plans and actions that are concerned with how an organization competes in a specific business or industry.
    • Corporate Strategies - Goal-directed plans and actions that are concerned with the choices of what business(es) to be in and what to do with those businesses.
  59. Three Perspectives on Managing Strategically
    • 1. I/O View - Focuses on structural forces within an industry, the competitive environment of firms, and how these influe competitive advantage.
    • 2. Resource Based View - A firm's unique resources are most important in getting and keeping competitive advantage.
    • 3. Guerrilla View - Competitive advantage is temporary... Rapid and radical.
  60. Two Perspectives on Organizational Environments
    • 1. Environment as a Source of Information- based on environmental uncertainty. The more dynamic and complex the environment the more uncertainty.
    • 2. Environment as a Source of Resources- as the environment becomes more hostile it is more difficult to obtain and control resources. Managers monitor the environment.
  61. The Five Components of the General Environment
    • 1. Economic - macroeconomics data- what is happening with the overall economy.
    • 2. Demographic - current data and trends in population characteristics- census type info
    • 3. Sociocultural - current data and trends in society and culture - values, attitudes, behavior patterns
    • 4. Political-Legal - laws, regulations, judicial decisions, and political forces
    • 5. Technological - scientific and technological innovations
  62. Steps in the Strategic Management Process
    • 1. Situation Analysis
    • 2. Strategy Formulation
    • 3. Strategy Implementation
    • 4. Strategy Evaluation
  63. Three Drivers of the New Business Environment
    • 1. Information Revolution - Info is the essential resource of production
    • 2. Technology - Equipment, materials, knowledge, and experience to perform tasks
    • 3. Globalization - Global marketplace and global competitors
  64. The Characteristics of a World-Class Leader
    • 1. Strong Customer Focus
    • 2. Continual Learning and Improvement
    • 3. Flexible Organization Structure
    • 4. Creative Human Resources Management
    • 5. Egalitarian Climate
    • 6. Significant Technological Support
  65. Characteristics of Effective Strategic Leadership
    • 1. Determining Organization's Purpose or Vision
    • 2. Exploiting and Maintaining Core Competencies
    • 3. Developing Human Capital
    • 4. Creating and Sustaining Strong Organizational Culture
    • 5. Emphasizing Ethical Decisions and Practices
    • 6. Establishing Appropriately Balanced Controls
  66. Methods for Conducting an Internal Analysis
    • Value-Chain Analysis
    • Internal Audit
    • Capabilities Assessment Profile
  67. Distinctive Organizational Capabilities
    • 1. Customer Value
    • 2. Hard to Imitate
    • 3. Useful in a Variety of Ways
  68. Relationship between Org. Resources, Org. Capabilities, Core Competencies, and Distictive Capabilities
    • In terms of a triangle: Performance Results
    • Competitive Advantage
    • Distinctive Organizational Capabilities
    • Organizational Resources Organizational Capabilities Core Competencies
Card Set
Strategic Management1
Strategic Management Definitions Ch. 1-4 (WCU)