Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
28 Cards in this Set
- Front
- Back
|
Strategy
A set of _____ _____ that ________ take to increase their companies __________. |
related actions, managers performance
|
|
|
Strategic Leadership
|
how to most effectively manage a company's strategy making process to create competitive advantage.
|
|
|
strategy formulation
|
selecting strategies
|
|
|
strategy implmentation
|
designing
delivering supporting products improving efficiency and effectiveness designing company organization, structure, control systems and culture |
|
|
Determinants of Shareholder Value
|
1. Effectiveness of strategies.
2. Profitibility (ROIC) 2. Profit Growth Result = shareholder Value |
|
|
Risk Capital
|
Equity capital for which there is no guarantee that stockholders will ever recoup investment
|
|
|
Shareholder value
|
returns that shareholders earn from purchasing shares in a company
|
|
|
Profitable growth
|
Generate high profitability and increase the companies profits
|
|
|
sustained competitive advantage
|
companies strategies enable it wto maintain above average profitability for numerous years.
=gain market share, profits growth more rapid |
|
|
Business model
|
the conception of how strategies should work together as a whole to enable the company to achieve competitive advantage
|
|
|
profitability and profit growth rely on two factors
|
success within the industry and success of the industry in its entirety
|
|
|
general managers:
functional managers: |
bear responsibility for overall performance
beare responsibility for supervising a particular function |
|
|
multidivisional company
|
company that ompetes in several different businesses and creates separate self contained division to manage each.
|
|
|
Business Unit
|
Self contained division that provides a product or service for a particular market
|
|
|
Mission
|
the purpose of the company or a statement of what the company strives to do.
|
|
|
Business definition
|
1. who is being satisfied/ customer group
2. what is being satisfied/ customer needs 3. how are they being satisfied/ distinctive competencies |
|
|
Vision
|
articulation of a company's desired achievements or future state
|
|
|
Values
|
statement of how employees should conduct themselves and their business to help achieve the company mission
values norms and standards that control how employees work/achieve mission/goals |
|
|
Goal of Swot analysis
|
Create, affirm, or finetune a company-specific business model that will best align, fit, or match a company's resources and capabilities to the demands of the environment in which it operates.
|
|
|
Scenario Planning
|
Formulating plans that are based upon what if scenarios about the future.
|
|
|
Prior-hypothesis bias
|
occurs when decision makers have strong prior beliefs and make decisions on the basis of such beliefs even when evidence suggests otherwise
|
|
|
escalating commitment
|
decision makers having already committed significant resources to a project, commit more. They need to realize sunk costs.
|
|
|
reasoning by analogy
|
over simplifying of complex problems by use of analogies
|
|
|
Representativeness
|
tendancy to generalize from a small sample or even single vivid anectdote.
|
|
|
Illusion of controld
|
Managers overesetimate their ability to control circumstances.
|
|
|
availability error
|
Predisposition to estimate the probability of an outcome based on how easy the outcome is to imagine.
|
|
|
2 solutions to avoid biased decision making
1. Devils advocate 2. Dialectic inquiry 3. outside view |
1. self explanatory
2. development of a thesis/counterthesis plausible conflicting courses 3. uses similar track records to base judgement on. |
|
|
Emotional Intelligence
|
Self awareness- understand ones moods emotions
Self regulation- ability to redirect moods/emotions motivation- work goes beyond money, status, pursue goal empathy- ability to understand others social skills- friedliness with a purpose |
