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38 Cards in this Set
- Front
- Back
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How do many orgs stumble into strategy |
miscalculation serendipity |
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Double E of business |
Efficiency--making something in the most cost effective way Effectiveness--make best use of resources |
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Tibbetts definition of strategy |
the systematic approach of using environmental analysis to determine decisions |
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Strategic history |
60s-80s--market position, what we are selling, who selling to and how does org compare to others
Late 80s-today--strategic process, the procedures and routines by which comps get things done |
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Strategy formulation |
the development of long range plans for the effective management of environmental opportunities and threats in light of organizational strengths and weaknesses |
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Corporate governance |
policies and procedures set in place to ensure a business operates within the law and for optimal benefit of all stakeholders |
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Corporation |
established to allow different parties to contribute capital, expertise and labor for their mutual benefit |
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Friedman's view of business |
primary role is profit maximization |
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Archie Carroll |
4 responsibilities of business 1. economic-have to do 2. legal-must do 3. ethical-should do 4. philanthropic-might do |
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Greenwashing |
deceptive use of green PR to increase sales of goods or products |
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environmental scanning |
a quintessential form of organizational information seeking for gaining new knowledge that enables action |
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does scanning improve organizational peformance |
Miller & Friesen--81 cases Subramanian--increased growth and profit Ptoszynski--increase financial performance |
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Porters 5 force model |
1. leverage of suppliers 2. threat of substitute products 3. rivalry among existing firms 4. threat of new entrants 5. bargaining power of buyers |
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benefits of environmental scanning |
1. strengthen the quality of the thinking that goes into strategy development 2. understand what is coming and whats changing and what it means for a company 3. gives your enough time to prepare and be proactive 4. gives you a competitive edge 5. move out of a crisis management mode |
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4 types of scanners |
undirected viewing Enacting
conditioned viewing active |
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undirected viewing |
info needs are ill defined and fuzzy and much of info obtained is non-routine or informal--usually gathered through chance encounters |
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enacting |
construct their own variables, measures and environments |
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conditioned viewing |
information needs focused on a small number of relatively well defined variable or areas of concern |
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active searching |
information needs are based on well defined search goals that are broad, detailed and open ended |
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VRIO |
Value:doe it provide customer value and competitive advantage Rareness: Do no other competitors possess Imitability: Is it costly for others to imitate Organization: is the firm organized to exploit the resource |
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Organizational analysis |
identifying and developing an organizations resources and competencies |
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competency |
a cross functional integration and coordination of capabilities--across divisions |
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core competency |
collection of competencies that a company does exceptionally well--usually 1-2 |
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distinctive competency |
core competency that a company does better than competitors and gives it an advantage |
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efficiency ratio |
operating expenses/revenues (lower # better)
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3 characteristics of distinctive competency |
1. source of competitive advantage in that it makes a significant contribution to perceived customer benefits 2. it has application to a wide variety of markets 3. difficult for competitors to imitate |
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business model |
the point where customer need for receiving value meets the organizations need for profit |
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Value chain primary activities |
inbound logistics operation outbound logistics marketing and sales service |
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value chain supporting activities |
firm infrastructure human resource management technology development procurement |
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value |
benefits>costs |
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resources |
assets or benefits the company has, tangible and intangible |
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capabilities |
the ability to maximize and exploit resources
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current ratio |
current assets/current liabilities |
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net profit margin |
net income/net sales
% of money made increases the value of company rather than being spent on costs |
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inventory turnover ratio |
net sales/inventory |
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debt-to-asset ratio |
total debt/total assets
measure the extent to which borrowed funds have been used to finance the company's assets |
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drivers that impact change |
environmental marketplace requirements business imperatives organizational imperatives cultural imperatives leader and employee behavior leader and employee mindset |
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5 levels of communication |
1. information sharing 2. building understanding 3. identify implications 4. gain commitment 5. alter behavior
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