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62 Cards in this Set
- Front
- Back
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3 Pillars of Management
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1 Strategic position 2 Organizational Design 3 Strategic leadership |
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Strategic position
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- Depends on nature and context of competitive and environmental landscape - Skills and capabilities of the management team - Understanding of the contextual landscape |
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Organizational Design
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- The allocation of resources - Structure of the organization - Incorporation of performance metrics |
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Strategic Leadership
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- Using technological advances - responding to change and uncertainty - operating in a socially responsible manner - competing on a global scale - Managing an leading diverse workforces |
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Leadership
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Ability to drive change through inspiration and motivation
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Effective Leaders use?
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- A style that enables them to obtain results. could be a combination |
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Management
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Working with and through a group of people to accomplish a desired goal or objective in an efficient and effective manner |
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Bureaucracy
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- Proposed by Max Weber - coordination through strict hierarchy of authority and decision rights - Vertical separation of planning and execution |
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Managerial Views
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- On Production - A business framework where the firm is seen as a mechanism for converting raw materials into products to sell to customers |
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Shareholder views
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- Financial performance - The job of top managers is to produce the highest possible stock market valuation of the firms assets |
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Business Environment
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Represents all of the external forces that affect the firms business - Broken into the General Environment, Task Environment, and Internal Environment |
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General Environment includes what 5 components that affect a firms external environment?
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1 Technological 2 Political 3 Legal 4 Economic 5 Socio-cultural |
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Task Environment include what 3 components
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Competitors, Suppliers, and Customers |
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Internal Environment is affected by what parties or factors?
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Owners, Board of Directors, Employees, and Culture
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The factor that distinguishes an internal environment of an organization from an external environment?
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The internal environment includes owners, the board of directors, employees, and culture.
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Ethics
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The study of moral standards and their effect on behavior and conduct
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Types of Ethics?
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Utilitarianism, Kantianism, and Egoism
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Utilitarianism
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Behaviors are moral if they produce the greatest good for the greatest number of people |
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Kantianism
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claims that motives and universal rules are important aspects in judging what is right or wrong
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Egoism
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Self-interest, even selfishness, is the foundation of morality
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What is CSR
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Corporate Social Responsibility
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Corporate Social Responsibility
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is a business's obligation to pursue policies, decisions, and actions that align with the objectives and values of society
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What types of Corporate Social Responsibility are there?
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Economic, Legal, and Ethical
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Strategic CSR
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Activities that are directly related to their business activities so social welfare can be combined with financial welfare
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Justice
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Philosophy that provides the framework for society to judge what is morally right or wrong, fair or unfair, and establishes ways to evaluate or punish those who behave in morally wrong ways
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Procedural Justice
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a subset of justice claiming that rules should be clearly stated, consistently obeyed, and impartially enforced
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What are some Ethical Delimmas
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- Conflicts of Interests - Trade Secrets - Bribery - Whistle-Blowing |
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Conflicts of Interest
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occur when employees or managers engage in activities on behalf of the company and have a personal interest in the outcomes
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Trade Secret
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Information used in conducting business that is not commonly known by others and provides strategic advantage
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Bribery
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offering something valuable to a party to action his or her behalf, often to an unfair advantage
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Whistle-Blowing |
the release of information by a member of an organization that is evidence of illegal or immoral conduct
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Strategy
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- Pursuing a set of unique activities that provide value to customers. - Making trade-offs about which businesses to pursue, what products to produce, and which customers to serve, and aligning resources to achieve organizational objectives |
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Competitive advantage
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achieved when a firm creates more economic value than competitors by engaging in a strategy that is difficult or impossible for others to duplicate
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Business-level Strategy
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the determination of how a company will compete in a given business and position itself among its competitors
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Corporate-level Strategy
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The way a company seeks to create value through the configuration and coordination of multimarket activities
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Vision
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A concept or picture of what a firm wants to achieve and how it plans to accomplish that
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Mission
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the activities a firm performs for its customers
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Mission Statement
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a statement that defines a firm's reason for existence
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Objectives
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series of quantifiable milestones or benchmarks by which a firm can assess its progress
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3 components to strategy are?
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What, Who, How
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Which of the following best defines corporate-level strategy?
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The way a company seeks to create value through the configuration and coordination of multimarket activities
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Business Level Strategies are?
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the determination of how a company will compete in a given business and position itself among its competitors
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Porter's 5-forces Model
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Threat of new entrants Bargaining power of customers bargaining power of suppliers Threat of substitutes Rivalry among existing competitors |
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How does the 5-forces model impact industry profitability?
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Increased Profitability when: -High barriers to entry -limited competitors - lack of substitutes - and low buyer/supplier power Decreased Profitability when: - Low barriers to entry - many competitors - many substitutes - high buyer/supplier power |
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what are 3 Generic strategies
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Cost leadership, Differentiation, Focus |
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Cost leadership
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provide product for as low a price as possible to as many people as possible |
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Differentiation
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to be unique in the market or industry and become valued by customers |
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Focus
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companies focuses its sales efforts on a geographical region, specific groups of purchasers, or specific product types
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If you are a supplier for Wal-Mart, which of the 5-forces shows wal-marts ability to buy products at rock bottom prices?
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Bargaining power of customers
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Corporate-Level Strategy
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The way a company seeks to create value through the configuration and coordination of multimarket activities |
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Strategy Choices
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Scope, Organizational Design, and ownership |
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Diversification Strategy
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strategy in which a firm engages in several different businesses that may or may not be related to create more value than the businesses would have alone |
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Single Product Strategy
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Focuses on one specific product, typically in one market
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Related Diversification
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firm pursues businesses that share a similar set of tangible and intangible resources
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Unrelated Diversification
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a firm manages several businesses with no connection
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Vertical Integration
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One corporation owns business units that make inputs for other business units in the same corporation
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Forward Integration
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when a firm owns or controls the customers or distribution channels for its main products
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Backward Integration
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when a firm controls or owns the inputs it uses
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What type of integration would Coke owning places that sell their products be?
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Forward - buying means of distribution
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What type of integration would the ingredients that make coke and all means of production for coke be?
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Backwards - buying raw materials
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Organizational design
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Coordinating mechanisms: organizers
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Bureaucratic approach
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not useful in creative environment
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