1. Planning
    A process whereby managers select goals, choose actions (strategies) to attain those goals, allocate responsiblity for implementing actions to specific individuals or units, measure the success of actions by comparing actual results against the goals, and revise plans accordingly.
  2. Strategic plan
    A plan that outlines the major goals of an organization and the organizationwide stategies for attaining those goals.
  3. Corporate-level strategy
    Strategy concerned with deciding which industries a firm should compete in and how the firm should enter or exit industries.
  4. Business-level strategy
    Strategy concerned with deciding how a firm should compete in the industries in which it has elected to participate.
  5. Operating strategy
    Strategy concerned with the actions that should be taken at the level of individual functions, such as production, logistic, R&D, and sales, to support business-level strategy.
  6. Operating plans
    Plans that specify goals, actions, and responsibility for individual functions.
  7. Unit plans
    Plans for departments within functions, work teams, or individuals.
  8. Planning Horizon
    How far out a plan is meant to apply.
  9. Tactical Plans
    The actions managers adopt over the short to medium term to deal with a specific oppurtunity or threat that has emerged.
  10. Single-use plans
    Plans that address unique events that do not reoccur.
  11. Standing plans
    Plans used to handle events that reoccur frequently.
  12. Contingency Plans
    Plans formulated to address specific possible future events that might have a significant impact on the organization.
  13. Crisis management plan
    Plan formulated specifically to deal with possible future crises.
  14. Scenario planning
    Plans that are based on ''what if" scenarios about the future.
  15. Action plans
    Plans that specify with precision how strategies will be put into effect.
  16. Mission
    The purpose of an organization.
  17. Vision
    A future desired state.
  18. Values
    The philosophical priorities to which managers are committed.
  19. Goal
    A desired future state that an organization attempts to realize.
  20. Strategy Implementation
    Putting action plans into effect.
  21. Bounded rationality
    Limits in human ability to formulate complex problems, to gather and process the information necessary for solving those problems in a rational way.
  22. Satisfice
    Aiming for a satisfactory level of a particular performance variable rather than its theoretical maximum.
  23. Decision Heuristics
    Simple rules of thumb ie 80-20 rule
  24. Cognitive biases
    Decision-making errors that we are all prone to making and that have been repeatedly verified in laboratory settings or controlled experiments with human decision makers.
  25. Prior hypothesis bias
    Decision makers who have strong prior beliefs about the relationship between two varibles tend to make decisions on the basis of these beliefs, even when presented with evidence that their beliefs are wrong.
  26. Escalating commitment
    Arises when decision makers, having already committed significant resources to a project, commit even more resources if they receive feedback that the project is failing.
  27. Reasoning by analogy
    The use of simple analogies to make sense out of complex problems.
  28. Representativeness
    Generalizing from a small sample or even a single vivid anecdote.
  29. Illusion of control
    The tendency to overestimate one's ability to control events.
  30. Availability error
    Arises from our predisposition to estimate the probability of an outcome based on how easy the outcome is to imagine.
  31. Framing bias
    Bias arising from how a decision is framed.
  32. Groupthink
    Arises when a group of decision makers embarks on a course of action without questioning underlying assumptions.
  33. Devil's advocacy
    The generation of both a plan and a critical analysis of the plan by a devil's advocate.
  34. Dialectic inquiry
    The generation of a plan and a counterplan that reflect plausible but conflicting courses of action.
  35. Outside view
    Identifying a reference class of analogous past strategic initiatives, determining whether those initiatives succeeded or failed, and evaluating a project at hand against those prior initiatives.
Card Set
Principles of Management Chapter V - Strategizing