A Strategic Management Ch 1

Front 1

a set of related actions that managers take to increase their company's performance

Back 1

strategy

Front 2

how to most effectively manage a company's strategy-making process to create competitive advantage

Back 2

strategic leadership

Front 3

task of selecting strategies

Back 3

strategy formulation

Front 4

task of putting strategies into action, which includes designing, delivering, and supporting products; improving the effcieny and effectiveness of operations; and designing a company's organizational structure, control systems, and culture

Back 4

strategy implementation

Front 5

capital that cannot be recovered if a company fails and goes bankrupt

Back 5

risk capital

Front 6

returns that shareholders earn from purchasing shares in a company

Back 6

shareholder value

Front 7

return that it makes on the capital invested in the enterprise

Back 7

profitability

Front 8

increase in net profit over time

Back 8

profit growth

Front 9

profitability is greater than the average profitability and profit growth of other companies competing for the same set of customers

Back 9

competitive advantage

Front 10

strategies enable it to maintain above-average profitability for a number of years

Back 10

sustained competitive advantage

Front 11

manager's conception of how the set of strategies his company pursues should mesh together into a congruent whole, enabling the company to gain a competitive advantage and achieve superior profitability and profit growth

Back 11

business model

Front 12

bear responsbility for the overall performance of the company of for one of its major self-contained subunits or divisions

Back 12

general managers

Front 13

responsible for supervising a particular function, task, an activity, or an operation

Back 13

functional managers

Front 14

a company that competes in several different businesses and has created a seperate, self-contained division to mange each

Back 14

multidivisional company

Front 15

a self-contained division that provides a product or service for a particular market

Back 15

business unit

Front 16

describes what the company does

Back 16

a company's mission

Front 17

lays out some desired future state

Back 17

vision

Front 18

state how managers and employees should conduct themselves, how they should do business, and what kind of organization they should build to help a company achieve its mission

Back 18

values

Front 19

individuals or groups that have an interest, claim, or stake in the company, in what it does, and in how well it performs

Back 19

stakeholders

Front 20

comparison of strength, weaknesses, opportunities, and threats

Back 20

SWOT analysis

Front 21

involves formulating plans that are based on what-if scenarios about the future

Back 21

scenario planning

Front 22

systematic errors are those that appear time and time again. Way that human decision makers process info and reach decisions

Back 22

cognitive biases

Front 23

decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of beliefs, even when presented with evidence that their beliefs are wrong

Back 23

hypothesis bias

Front 24

occurs when decision makers, having already committed significant resources to a project, commit even more resources even if they receive feedback that the project is failing

Back 24

escalating commitment

Front 25

involves the use of simple analogies to make sense out of complex problems

Back 25

reasoning by analogy

Front 26

tendency to generalize from a small sample or even a single vivid anecdote

Back 26

representativeness

Front 27

tendency to overestimate one's ability to control events

Back 27

the illusion of control

Front 28

arises from our preisposition to estimate the probability of an outcome based on how easy the outcome is to imagine

Back 28

availability error

Front 29

generation of both a plan and a critical analysis of the plan. Bringing up all the reasons taht might make teh proposal unacceptable

Back 29

devil's advocacy

Front 30

more complex because it requires the generation of a plan (a thesis) and a counterplan (an antithesis) that reflect plausible but conflicting courses of action

Back 30

dialectic inquiry

Front 31

requires planners to identify a reference class of analogous past strategic initiatives, determine whether those initiatives succeeded or failed, and evaluate the project at hand against those prior initiatives

Back 31

outside view

Front 32

is a precise and measurable desired future state that a company attempts to realize

Back 32

goal