Class 11

Strategy Implementation

The process of putting formulated strategies into action to achieve objectives.

Feedback Loop

A system where outputs are circled back as inputs to help in future decision-making and strategy adjustment.

Implementation Levers

Elements such as structure, systems, processes, people, rewards, and symbols that help in executing strategy.

Environmental Scanning

The process of gathering, analyzing and dispensing information for strategic decision-making.

Incentives

Rewards or motivations provided to employees to influence behavior and performance.

Corporate Governance

The mechanisms, processes, and relations by which corporations are controlled and directed.

Principal-Agent Problem

A conflict in priorities between a person or group, who delegates work (the principal), and the person or group (the agent) who performs that work.

Internal Governance Mechanisms

Control measures implemented within an organization, such as board monitoring and executive incentives.

External Governance Mechanisms

Influences from outside the organization, such as market for corporate control and regulatory authorities.

Board of Directors

A group of individuals elected to represent shareholders and oversee the management of a corporation.

Stakeholder vs. Shareholder

Debate about whether the interests of stakeholders (all parties affected by the company) or shareholders (owners) should take precedence.

Management Performance

Evaluation of how well managers achieve organizational goals and objectives.

Organizational Symbols

Visible representations of company culture that convey meaning to stakeholders.