strategic management ch 2,10,11,13

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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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