MGT 4394 Midterm Exam (Chapters 1-6; Methanex)

strategic management

an ongoing process used by firms to set an organizational vision, analyze the external, competitive, and internal environments, and develop strategies for success; the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners based on consideration of resources and an assessment of the internal and external environments in which the organization competes

key question answered by strategic management

why do some firms outperform other firms?

strategy

a broad goal that an organization needs to be achieve to be successful in the marketplace; a higher-level, broad goal, without a lot of specifics and long-term in nature

3 principles underlying strategy

creating a unique and valuable position, making trade-offs by choosing what not to do, creating fit by aligning company activities with one another to support the chosen strategy

2 major processes of strategic management

formulation of strategy, implementation of strategy

5 types of strategy

intended, emergent,

deliberate, realized, and unrealized

intended strategy

the strategy an organization hopes to execute; described in detail in strategic plan

emergent strategy

an unplanned strategy that arises in response to unexpected opportunities and challenges

realized strategy

the strategy that an organization actually follows; a product of intended strategy, deliberate strategy, and emergent strategy

deliberate strategy

the parts of the intended strategy that the firm continues to pursue over time

unrealized strategy

a strategy that was developed but not accomplished; the abandoned parts of the intended strategy