Strategic Management

is the integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

Strategic Management

is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Strategy

enables a firm to achieve superior performance and sustainable competitive advantage relative to its competitors.

Good Strategy

A __________ of the competitive challenge. This element is accomplished through analysis of the firm’s external and internal environments

Diagnosis

A ____________ to address the competitive challenge. This element is accomplished through strategy formulation, resulting in the firm’s corporate, business, and functional strategies

Guiding Policy

A ____________ to implement the firm’s guiding policy. This element is accomplished through strategy implementation

Set of Coherent actions

A good strategy needs to start with a clear and critical diagnosis of the__________?

competitive challenge

Superior performance relative to other competitors in the same industry or the industry average

Competitive Advantage

Outperforming competitors or the industry average over a prolonged period of time

Sustainable Competitive Advantage

Underperformance relative to other competitors in the same industry or the industry average

Competitive Disadvantage

Performance of two or more firms at the same level.

Competitive Parity

Occurs when companies with a good strategy are able to provide products or services to consumers at a price point that they can afford while keeping their costs in check, thus making a profit at the same time

Value Creation

Organizations, groups, and individuals that can affect or are affected by a firm’s actions.

Stakeholders

An integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage.

Stakeholders strategy

A decision tool with which managers can recognize, prioritize, and address the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen.

Stakeholder impact Analysis

A framework that helps firms recognize and address the economic, legal, social, and philanthropic expectations that society has of the business enterprise at a given point in time.

Corporate Social Responsibility (CSR)

The business enterprise is first and foremost an economic institution.

Gain and sustain competitive advantage

Economic Responsibilities

Laws and regulations are a society’s codified ethics, embodying notions of right and wrong

Define minimum acceptable standard

Legal Responsibilities

Legal responsibilities, however, often define only the minimum acceptable standards of firm behavior

Do what is right, just, and fair

Ethical Responsibilities

Are often subsumed under the idea of corporate citizenship, reflecting the notion of voluntarily giving back to society.

Corporate citizenship

Philanthropic Responsibilities

A model that links three interdependent strategic management tasks - analyze, formulate, and implement - that, together, help managers plan and implement a strategy that can improve performance and result in competitive advantage.

Strategy Framework

Executives’ use of power and influence to direct the activities of others when pursuing an organization’s goals.

Strategic Leadership

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.

Upper-echelons Theory

The part of the strategic management process that concerns the choice of strategy in terms of where and how to compete.

Strategy Formulation

What Level of Level 5 pyramid is this

Highly Capable Individual Makes productive contributions through motivation, talent, knowledge, and skills.

Level 1

What Level of level 5 pyramid is this : Contributing Team Member Uses high level of individual capability to work effectively with others in order to achieve team objectives.

Level 2

What level of level 5 pyramid is this. Competent Manager Is efficient and effective in organizing resources to accomplish stated goals and objectives. Does things right.

Level 3

What Level of level 5 pyramid is this

: Effective Leader Presents compelling vision and mission to guide groups toward superior performance. Does the right things.

Level 4

What Level f level 5 pyramid is this

Executive Builds enduring greatness through a combination of willpower and humility

Level 5

The part of the strategic management process that concerns the organization, coordination, and integration of how work gets done, or strategy execution.

Strategy Implementation

Standalone divisions of a larger conglomerate, each with their own profit-and-loss responsibility.

Strategic Business Units(SBUs)

statement about what an organization ultimately wants to accomplish; it captures the company’s aspiration.

Vision

Description of what an organization actually does the products and services it plans to provide, and the markets in which it will compete.

Mission

What commitments do we make, and what safe guards do we put in place, to act both legally and ethically as we pursue our vision and mission?

Values

A stretch goal that pervades the organization with a sense of winning, which it aims to achieve by building the necessary resources and capabilities through continuous learning.

Strategic Intent

Statement of principles to guide an organization as it works to achieve its vision and fulfill its mission, for both internal conduct and external interactions; it often includes explicit ethical considerations.

Core Values Statement

Ethical standards and norms that govern the behavior of individuals within a firm or organization.

Organizational Core Values

defines a business in terms of providing solutions to customer needs.

Customer-oriented Vision statement

defines a business in terms of a good or service provided.

Product Oriented Vision Statement

Method put in place by strategic leaders to formulate and implement a strategy, which can lay the foundation for a sustainable competitive advantage.

Strategic Management Process

A rational, data-driven strategy process through which top management attempts to program future success

Top-down Strategic Planning

Strategy planning activity in which top management envisions different what-if scenarios to anticipate plausible futures in order to derive strategic responses.

Scenario Planning

Incidents that describe highly improbable but high-impact events.

Black Swan Event

The strategic option that top managers decide most closely matches the current reality and which is then executed.

Dominant Strategic Plan

The outcome of a rational and structured top-down strategic plan.

Intended Strategy

Combination of intended and emergent strategy.

Realized Strategy

Any unplanned strategic initiative bubbling up from the bottom of the organization.

Emergent Strategy

Any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

Strategic Initiatives

undertaken by lower-level employees on their own volition and often in response to unexpected situations.

Autonomous Actions strategic Initiatives

Any random events, pleasant surprises, and accidental happenstances that can have a profound impact on a firm’s strategic initiatives.

Serendipity

The way a firm allocates its resources based on predetermined policies, which can be critical in shaping its realized strategy.

Resource-allocation process (RAP)

Strategy process in which organizational structure and systems allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management

Planned Emergence

When individuals face decisions, their rationality is confined by cognitive limitations and the time available to make a decision. Thus, individuals tend to “satisfice” rather than to optimize.

Theory of Bounded Rationality

Constraints such as time or the brain’s inability to process large amounts of data that prevent us from appropriately processing and evaluating each piece of information we encounter.

Cognitive Limitations

A field of study that blends research findings from psychology with economics to provide valuable insights showing when and why individuals do not act like rational decision makers, as assumed in neoclassical economics.

Behavioral Economics

Obstacles in thinking that lead to systematic errors in our decision making and interfere with our rational thinking.

Cognitive Biases

A cognitive bias that highlights people’s tendency to overestimate their ability to control events.

Illusion of Control

A cognitive bias in which an individual or a group faces increasingly negative feedback regarding the likely outcome from a decision, but nevertheless continues to invest resources and time in that decision, often exceeding the earlier commitments.

Escalating Commitment

A cognitive bias in which individuals tend to search for and interpret information in a way that supports their prior beliefs

Confirmation Bias

A cognitive bias in which individuals use simple analogies to make sense out of complex problems.

Reason by Analogy

A cognitive bias in which conclusions are based on small samples, or even from one memorable case or anecdote.

Representativeness

A situation in which opinions coalesce around a leader without individuals critically evaluating and challenging that leader’s opinions and assumptions.

Groupthink

Technique that can help to improve strategic decision making; a key element is that of a separate team or individual carefully scrutinizing a proposed course of action by questioning and critiquing underlying assumptions and highlighting potential downsides.

Devil's Advocacy

Technique that can help to improve strategic decision making; key element is that two teams each generate a detailed but alternate plan of action (thesis and anti-thesis).

Dialectic Inquiry

To make it easy to do business anywhere

Alibaba

To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online.

Amazon

To harness the power of capitalism to bring literacy and opportunity to people around the world.

Better world Books

To make the world more open and connected.

Facebook

To move, cure, build, and power the world

GE

To organize the world's information and make it universally accessible and useful.

Google

To bring inspiration and innovation to every athlete in the world.

Nike

To make human life multi planetary

SpaceX

To accelerate the world's transition to sustainable energy.

Tesla

To be the best retailer in the hearts and minds of consumers and employees.

Walmart

To offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.

Warby Parker

Value creation occurs because companies with a good strategy can provide products or services to consumers at a price they can't afford.

False

Formulation alone can allow a sustainable competitive advantage.

False

Coherent actions allow organizations to relay the objectives; it is the implementation of the strategy and can stand alone.

False

TESLA discontinued the production of the Roadster due to poor sales.

False

Strategic Management is an integrative management field that combines analysis, formulation, and initiative to gain a competitive advantage.

True

Strategy is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

True

Firms creating a good strategy should be guided by these three key concepts: a diagnosis of the competitive challenge, a guiding policy, and a set of coherent actions.

True

The objective of Dr. Frank T. Rothaermel in his book Strategic Management is to move beyond an understanding of competitive advantage.

True

Competitive parity is the underperformance of a firm versus its competitors in the same industry or the industry average.

False

Tomy works hard and makes sure that he reports to work on time. What is tomy?

Highly Capable Individual

Leni works hard and ensures that she helps the team members achieve their company goals.

What type of person she is?

Contributing Team member

April manages a small team, her team members are in sync with the company's goals and objectives. What type of manager she is?

Competent Manager

Sarah manages several teams, and ensures that the managers under her includes the team members in the company's goals and objectives. Sarah follows the directive of their Chief Executive Officer.

Executive Leader

Bongbong designs the vision and mission statement of the organization. He executes a top-down and bottom-up communication and humbly listens to the employees suggestions.

Effective leader

entails what we want to accomplish ultimately

Vision

states how we accomplish our goals.

Mission

entails the commitments we make, and what safeguards we put in place

Values

wants to make human life multi planetary.

Ellon musk