Sigma

Front 1

S1: Strategy - The means by which individuals or orgs achieve their ____.

Back 1

objectives

Front 2

S1: Corporate Strategy = ______ to compete

Back 2

where

Front 3

S1: Business Strategy = ______ to compete

Back 3

how

Front 4

S1: _____ = strategy as conceived of by the top mgmt team

Back 4

Intended strategy

Front 5

S1: _____ = the actual strategy that is implemented

Back 5

realized strategy

Front 6

S1: _________ = decisions that emerge from the complex process in which managers interp the intended strategy and adapt to changing external circumstances.

Back 6

emergent strategy

Front 7

S1: ______ = organization as a coalition of interest groupswhere top management’s role to balance these different (oftenconflicting) interest.

Back 7

Stakeholder approach

Front 8

S1: _______ is a link between the firm and its external environment

Back 8

Strategy

Front 9

S2: Motivations for engaging in CSR: ______ perspective. Right or wrong, ethical consideration.

Back 9

Normative

Front 10

S2: Motivations for engaging in CSR: ______ perspective. CSR is a tool to achieve expected outcomes principally profitability.

Back 10

Instrumental

Front 11

S2: ______: Equity holder of a firm

Back 11

Shareholder

Front 12

________: Individuals groups and orgs who are affected by a firm's performance and who have claims on its performance.

Back 12

Stakeholder(s)

Front 13

S2: Firm as a ______ or _______ view.

Back 13

Property | Social Entity

Front 14

S2: Firm as a Property View
Emphasis is on _____
Assumption is ______

Back 14

Profitability
Zero-sum

Front 15

S2: Firm as a Social EntityView

Emphasis is on _____

Assumption is ______

Back 15

Responsibility

Stakeholder Symbiosis

Front 16

S2: _______: Assessment of a firms ___, _____ and _____

Back 16

Triple Bottom Line: financial, social and environmental

Front 17

S2: Does every stakeholder have the same level of influence?

Back 17

no

Front 18

S2: 3 groups of stakeholders
___: Shareholders and the major suppliers of a firm's capital
___: A firm's primary customers, suppliers, host communities, and unions reppin the work force

___: Firms emps, including both non managerial and managerial personnel

Back 18

Capital market stakeholders

Project market stakeholders

Organizational stakeholders

Front 19

S2: _____: Must be made in situations where theobjectives of various stakeholder groups differ orconflict.

Back 19

Trade-off

Front 20

S2: _______ is the most critical criterion inprioritizing stakeholders.

Back 20

Power

Front 21

S3: A Firms is a ______ of _______

Back 21

Nexus contracts

Front 22

S3: After a shareholder purchases stock they become _____ claimants

Back 22

residual

Front 23

S3: Corporate Governance
Owners _____
Monitor ________

Agents ________

Back 23

Shareholders, BOD, Managers

Front 24

__________ deals with the relationship between Shareholders (_____) and Executives (_____) .

Back 24

Agency theory. Principals. Agents.

Front 25

_________ One pary to a transactio has more or better info than the other -> source of agency costs

Back 25

Information Asymmetry

Front 26

How agency problems occur. _______: By limited ability of shareholders to precisely determine thecompetencies and priorities of executives at the time they arehired

Back 26

Adverse selection

Front 27

How agency problems occur. _______: Because owners have limited access to company information,making executives free to pursue their own interests.

Back 27

Moral Hazard

Front 28

_______________: Seeking self-interest with guile (i.e. cunning or deceit)

Back 28

Managerial Opportunism

Front 29

Principals establish governance and controlmechanisms to prevent________________________

Back 29

agents from acting opportunistically.

Front 30

Internal Governance Mechanisms:
____________ Relative amounts of stock owned by individual shareholders andinstitutional investors

Back 30

( Ownership Concentration)

Front 31

Internal Governance Mechanisms: ____________ Group of shareholder-elected individuals (usually called‘directors’) whose primary responsibility is to act in the owners’interests by formally monitoring and controlling thecorporation’s top-level executives

Back 31

(Board of Directors)

Front 32

Internal Governance Mechanisms: ____________ Use of salary, bonuses, and long-term incentives to alignmanagers’ interests with shareholders’ interests

Back 32

(Executive Compensation)

Front 33

External Governance Mechanisms: ____________ This market is a set of potential owners seeking to acquireundervalued firms and earn above-average returns on theirinvestments by replacing ineffective top-level managementteams.

Back 33

(Market for Corporate Control)

Front 34

Large block shareholders: shareholdersowning a concentration of at least ______ ofa corporation’s issued shares

Back 34

5%

Front 35

Large block shareholders have a strong___ and ___to monitormanagement closely

Back 35

incentive and capacity

Front 36

Shareholders can convene to discusscorporation’s directionIf a consensus exists, shareholders canvote as a block to elect their candidates tothe board

Back 36

Shareholder Activism

Front 37

Three Director Classifications

(____): the firm’s CEO and other top-level managers(______): individualsuninvolved with day-to-day operations,but who have a relationship with the firm(________): individuals who areindependent of the firm’s day-to-dayoperations and other relationshipsHistorically, BOD dominated by insidersbefore SOX (Sarbanes-Oxley Act)

Back 37

Insiders

Related Outsiders

Outsiders

Front 38

PEST Analysis: P = ? etc

Back 38

Political Economic Social Technological

Front 39

Porters 5 Forces Model

Back 39

Suppliers, Potential Entrants, Substitutes, Buyers, Industry Rivalty

Front 40

________: spreading of the costs ofproduction over the number of units produced.

Back 40

Economies of Scale

Front 41

_______ one-time costs customers incur whenthey buy from a different supplier

Back 41

Switching Costs

Front 42

______: combined market share of the four largest producers

Back 42

CR4 (Concentration Ratio)

Front 43

_____________: A set of firms emphasizing similar strategic dimensionsand using similar strategies;

Back 43

(Strategic Groups)

Front 44

___ are group-specific entry barriers thatrestrict shifting strategic position from one strategicgroup to another

Back 44

Mobility Barriers

Front 45

__A___ and _B___ are the primarysources of profitability.

A : productive assets (tangible & intangible) owned bythe firm

B: what the firm can do

Back 45

Resources: Capabilities:

Front 46

____ Financial resources and physical assets are identifiedand valued in the firm’s financial statement

Back 46

Tangible resources

Front 47

____ Expertise and effort offered by employees

Back 47

Human resources

Front 48

_____ - Firm’s capacity to deploy resources for a desired endresult

Back 48

Organizational capabilities

Front 49

Activities to produce products and then sell, distribute,and service those products in ways that create value forcustomers

Back 49

Primary Activities

Front 50

Activities to support the work being done to produce,sell, distribute, and service the products the firm isproducing

Back 50

Support Activities

Front 51

When these four criteria are met, resources andcapabilities become core competencies: ___, ____, _____, ______

Back 51

Valuable, rare, nonsubstitutable, costly to imitate