Knowing all the facts, outcomes, and always choosing the best option for the organization.
Rational Decision Making
Complete the relationship: structured problem--> _____________
A mental shortcut used in decision-making.
The steps of the decision-making process.
Step 1: Problem Identification Step 2: Criteria Identification Step 3: Weight Allocation Step 4: Development of Alternatives Step 5: Analysis of Alternatives Step 6: Selection of Alternative Step 7: Implementation Step 8: Evaluation
Step-by-step directions for dealing with a problem.
Outperforming rivals over the long term
Sustainable Competitive Advantage
The three levels of organizational strategy.
Corporate Competitive Functional
When Yahoo acquired Tumblr in 2013, this was an example of a __________ strategy through _________.
Having unique products that are valued by consumers over competitors' products.
The two types of integration strategy.
Horizontal & Vertical
When vividness / recentness distorts our perception.
Taking credit for the firm's successes and blaming others for its failures.
When someone only pays attention to particular things.
Selective Perception Bias
Overreliance on early information when making a decision.
Believing that we're more knowledgeable, more ethical, more effective than others.
Organizational-level goals for everything but finances.
Flexible, general guidelines are also known as _______.
Directional Plans- different from specific plans which are clearly defined and leave no room for interpretation.
Comparing firm performance to that of other firms.
Benchmarking: when a firm looks at its industry rivals and compares its own performance to them with the goal of identifying areas of improvement or areas of strength.
Strengths, Weaknesses, Opportunities, Threats
These plans are typically for a duration of more than three years.
Rationalization of facts that don't support assumptions, pressure to conform, and an illusion of unanimity are all symptoms of this.
Groupthink: a group dynamic in which individuals are under intense pressure to conform to the group views and refrain from dissenting from the group position.
A minority of members can dominate a group when this is true
There is unequal status among members.
Typically, the higher one is in the organization the more _________ the problem and ___________ the decision.
Which is the least favorable environment for managers to make decisions in?
This term describes choosing an option that is "just good enough."
Satisficing: is when people search for a solution until one that is good enough is found. This runs counter to the rational decision making model which states that individuals look for the best solution.
This view of decision making assumes that there are limits on how much an individual can know.
Organizations in real trouble may adopt this kind of corporate strategy.
In being able to maintain profit while selling products at a lower price, Wal Mart uses this type of competitive strategy.
When meeting lower-level goals helps fulfill higher-level goals.
Means-End Chain: is a view of goal setting that assumes the satisfying of lower level goals contributes to the satisfying of goals by the next higher unit.
This type of strategy involves targeting a niche market.
Focus: is a competitive strategy where the company tries to compete in a specific segment of the market (e.g., ultra wealthy consumers, low income shoppers, etc.).