BUS 101 - Chapter 3: Strategy, Leadership, and Culture

Corporate Strategy

The direction an organization takes with the objective of achieving business success in the long term

Concentration

Focus on a single business and compete in a single industry

Vertical Integration

Expanding forward and selling their products themselves in retail stores and/or backward by manufacturing their own products

Related Diversification

Occurs when organizations expand into businesses related to their core business

Unrelated Diversification

Occurs when firms acquire or merge firms unrelated to their core competency

Business Strategy

A long term plan of action designed to achieve a particular goal or set of goals or objectives

Low-cost Strategy

Focus on reducing costs and carrying that value over to customers

Differentiation Strategy

Focus more on innovation and quality than on costs

Organizational Structure

Show activities such as task allocation, coordination and supervision are directed toward the achievement of organization claims

Centralization

The concentration of management and decision-making power at the top of an organization's hierarchy

Span of Control

The number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variable work reduces it to six, whereas routine, fixed work increases it to twenty or more

Planning

Management defines goals, establishes strategy, and develops plans to coordinate activities

Organizing

Management defines organizational needs and coordinates to achieve those needs

Leading

Management directs and coordinates the work activities of its human capital

Controlling

Management monitors activities to ensure goals and strategies are accomplished as planned

Interpersonal Roles

Involve people and other duties that are ceremonial or symbolic in nature

Informational Roles

Involve collecting, receiving, and disseminating information

Decisional Roles

Involve making choices. The four what are entrepreneur, disturbance handler, resource allocator and negotiator

Change Management

Guide organizational leaders to initiative and implement important changes in their organizations

Transformatonal Leaders

Characterized by inspiration and charisma

Transactional Leaders

Managers who ensure tasks are completed

Individualism/Collectivism

The degree to which individuals look after themselves or prefer to operate in groups

Power Distance

The extent to which a society accepts and endorses authority, power differences, and status privileges

Uncertainty Avoidance

A society that is comfortable in ambiguous, unstructured situations, with a high-risk tolerance

Motivation to Achievement

The distribution of roles between the genders

Long-term Orientation

The extent to which a society accepts virtues focused on future rewards, with specific attention to perseverance and thrift

Indulgence

A society in which individuals are allowed relatively free gratification of basic and human needs

Performance Orientation

The extent to which a society encourages and rewards innovation, high standards, and performance improvement

Future Orientation

The degree to which a society encourages and rewards future-oriented behaviors such as planning and delaying gratification

Gender Egalitarianism

The extent to which societies minimize gender role differences

Assertiveness

The extent to which society encourages aggression, assertiveness, and toughness

Institutional Collectivism

The extent to which institutional practices at the societal level encourage and reward collective action

In-group Collectivism

The extent to which institutional practices at the societal level encourage and reward collective action

Humane Orientation

The extent to which a society encourages and sensitivity and benevolence toward people

Uncertainty Avoidance

A society that is comfortable in ambiguous, unstructured situations, with a high-risk tolerance