strategic management ch 2,10,11,13
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40 terms
Terms | Definitions |
|---|---|
 strategic leadership | task of managing an overall enterprise and influencing key organizational outcomes |
| executive roles | interpersonal roles, informational roles, and decisional roles, are the 3 basic activities that make up executive roles |
| interpersonal roles | executives act as figureheads, liaisons, and leaders |
| informational roles | executives act as monitors, disseminators, and spokespersons |
| decisional roles | executives act as entrepreneurs, disturbance handlers, resource allocators, and negotiators |
| vision | simple statement or understanding of what the firm will be in the future |
| mission | declaration of what a firm is and what it stands for - its fundamentals values and purpose |
| stakeholders | individual or group with an interest in an organization's ability to driver intended results and maintain the viability of its products and services |
| stakeholder analysis | the technique used to identify the key people who have to be won over. You then use stakeholder planning to build the support that helps you succeed. |
| balanced scorecard | strategic management support system for measuring vision and strategy against business and operating-unit-level performance. |
| ethics | The principles of right and wrong that guide an individual in making decisions. |
| biases | a prejudice towards one particular point of view or ideology. |
| merger | consolidation or combination of two or more firms |
| acquisition | strategy by which one firm acquires through stock purchaser exchange |
| takeover | A special type of acquisition when the target firm did not solicit the acquiring firm's bid for outright ownership |
| restructuring strategies | a strategy through which a firm changes its set of businesses or financial structure: Downsizing, downscoping, leveraged buyouts |
| downsizing | a reduction in the number of a firm's employees and sometimes in the number of its operating units. |
| Reasons for downsizing | expectation of improved profitability from cost reductions. Desire or necessity for more efficient operations. |
| downscoping | a divestiture, spin-off or other means of eliminating businesses unrelated to a firm's core businesses. (set of actions that causes a firm to strategically refocus on its core businesses) |
| Leveraged Buyouts | A restructuring strategy whereby a party buys all of a firm's assets in order to take the firm private. Can correct managerial mistakes and facilitate entrepreneurial efforts and strategic growth. |
| market value | the price at which buyers and sellers trade the item in an open marketplace |
| intrinsic value | present value of company's future cash flows from assists assets in business |
| organizational culture | core organizational values widely held and shared by an organization's members. |
| organizational structure | relatively stable arrangement of responsibilities, tasks, and people within an organization. |
| implementation levers | mechanisms used by strategic leaders to help execute a firm's strategy. |
| functional structure | form of organization revolving around specific value-chain functions |
| multidivisional structure | form of organization in which divisions are organized around product or geographic markets and are often self-sufficient in terms of functional expertise. |
| matrix structure | form of organization in which specialist form functional departments are assigned to work for one or more product or geographic units |
| network structure | form of organization in which small, semiautonomous, and potentially temporary groups are brought together for specific purposes. |
| partnerships | The company is organized as a group of partners who own shares or units in the corporation |
| franchises | Company not only trans-fers ownership of local facilities to franchisees, but license all local man-agement responsibility |
| Three "C's" of Communication | Contacts, Cultural understanding, Credibility |
| patching | regularly remapping businesses in accordance with changing market conditions and restitching them into internal business ventures |
| corporate governance | The system by which organizations, particularly business corporations, are directed and controlled by their owners |
| agency problems | separation of its ownership from managerial control of a firm |
| agency relationship | Managerial Opportunism: Seeking self-interest with guile (i.e., cunning or deceit). Principals establish governance and control mechanisms to prevent agents from acting opportunistically. |
| executive compensation | Governance mechanism that seeks to align the interests of top managers and owners through salaries, bonuses, and long-term incentive compensation, such as stock awards and stock options |
| The Sarbanes-Oxley Act | An act that was passed in 2002 in response to several corporate scandals which resulted in billions of dollars in losses to stockholders and debt holders. This Act established (1) more controls on management, (2) more responsibility on the Audit Committee and the Board of Directors, and (3) stricter requirements for the external auditors. |
| leadership | the task of exerting influence on other people's pursuit of goals in an organizational context |
| will and humility | 2 characteristics of a level 5 leader |
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