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17 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is a business model? What should you take into consideration when developing one? |
Outlines the need the firm will fill, the operations its components & functions as well as expected revenue & expenses |
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What are the key questions you should ask when developing a mission, vision, and values statement |
Mission- what is our reason being? Why are we here? Purpose of organization Vision- what do we want to become? Where do we want to go? Clear sense of future Values- what values do we want to emphasize? What does our company stand for? |
Mission, vision, values |
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What is MBO? Why is it an important tool? What are the different objects of MBO? |
-Management by object helps connect managers and employees together -3 objectives- performance (checking outcome), behavioral (behaviors needed to achieve an outcome), learning (acquire knowledge) |
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3 principles of strategic positioning and how does it apply? |
-Unique and variable position -strategy requires trade-offs in competing -Creating a fit among activities |
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What are the different steps in strategic management process? |
-establish the mission, vision, and value statement -asses the current reality -formulate, corporate, business, & functional strats -execute strategies -maintain strat control |
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What are porters 5 forces? How do they impact development of strat? |
-Threat of new entrants -supplier bargaining power -internal competition(rivalry) -threat of substitutes -customer bargaining power How? By focusing on what other things to strategize/look out for |
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What is the rational decision making model & how is it used? |
1. Identify the problem/opportunity 2.think alternative solutions 3.evaluate alternatives & select a solution 4.implement & evaluate the solution chosen How? How managers should make decisions. Assume managers will make logical optimal decisions |
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Availability bias |
Using the only info available |
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What’s is bounded rationality and how is it different from satisficing? |
-The ability of decision makers to be rational is limited by numerous constraints Difference- rational is when something takes too long to get info so it’s not useful anymore |
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Representative Bias |
Faulty generalizing from a small sample or single event |
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Confirmation Bias
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Seeking info to support your point of view |
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Sunk Cost Bias |
Money already spent seems to justify continuing |
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Anchoring and Adjustment Bais |
Being influenced by an initial figure |
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Over confidence bias |
Blind to our own blindness |
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The hindsight bias |
the tendency of people to view events as more predictable than they really are |
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Framing bias |
decision makers influenced by the way a solution or problem is presented to them |
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Escalation of Commitment |
decision makers increase their commitment to a project despite negative info about it
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