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30 Cards in this Set
- Front
- Back
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Strategy |
A set of related actions that managers take to increase their company's performance |
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Strategic Leadership |
Creating competitive advantage through effective management of the strategy-making process |
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Strategy Formulation |
Selecting strategies based on analysis of an external and internal environment |
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Strategy Implementation |
Putting strategies into action |
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Risk Capital |
Equity capital for which there is no guarantee that stockholders will ever recoup their investment or earn a decent return. |
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Shareholder Value |
Returns that shareholders earn from purchasing shares in a company |
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Profitability |
The return a company makes on the capital invested in the enterprise |
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Profit Growth |
The increase in net profit over time |
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Competitive Advantage |
The achieved advantage over rivals when a company's profitability is greater than the average profitability of firms in it's industry |
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Sustained Competitive Advantage |
A company's strategies enable it to maintain above-average profitability for a number of years |
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Business Model |
The conception of how strategies should work together as a whole to enable the company to achieve competitive advantage |
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General Managers |
Managers who bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions |
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Functional Managers |
Managers responsible for supervising a particular function, that is, a task, activity, or operation, such as accounting, marketing, R&D, information technology, or logistics |
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Multidivisional Company |
A company that competes in several different businesses and has created a separate self-contained division to manage each |
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Business Unit |
A self-contained division that provides a product or service for a particular market |
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Mission |
The purpose of the company, or a statement of what the company strives to do |
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Vision |
The articulation of a company's desired achievements or future state |
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Values |
A statement of how employees should conduct themselves and their business to help achieve the company mission |
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SWOT Analysis |
The comparison of strengths, weaknesses, opportunities, and threats |
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Scenario Planning |
Formulating plans that are based upon "what-if" scenarios about the future |
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Cognitive Biases |
Systematic errors in human decision making that arise from the way people process information |
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Prior Hypothesis Bias |
A cognitive bias that occurs when decision makers who have strong prior beliefs tend to make decisions on the basis of these beliefs, even when presented with evidence that their beliefs are wrong |
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Escalating Commitment |
A cognitive bias that occurs when the decision makers, having already committed significant resources to a project, commit even more resources after receiving feedback that the project is failing |
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Reasoning by Analogy |
Use of simple analogies to make sense out of complex problems |
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Representativeness |
A bias rooted in the tendency to generalize from a small sample or even a single vivid anecdote |
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Illusion of control |
A cognitive bias rooted in the tendency to overestimate one's ability to control events |
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Availability Error |
A bias that arises from our predisposition to estimate the probability of an outcome based on how easy the outcome is to imagine |
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Devil's Advocacy |
A technique in which one member of a decision making team identifies all the considerations that might make a proposal unacceptable |
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Dialectic Inquiry |
The generation of a plan (a thesis) and counter plan (an antitheses) that reflect plausible but conflicting courses of action |
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Outside View |
Identification of past successful or failed strategic initiatives to determine whether those initiatives will work project at hand |
