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Definition
| a set of managerial decisions and actions that determines the long-run performance of a corporation. This includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. |
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| the study of strategic management |
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Definition
| emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation's strengths and weaknesses. |
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| phases of strategic management |
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Definition
| based-financial planning, forecast-based-planning, externally oriented (strategic) planning, strategic management |
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| benefits of strategic management |
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Definition
| clearer sense of strategic vision for the firm, sharper focus on what is strategically important, and an improved understanding of a rapidly changing environment. |
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Definition
| the integrated internationalization of markets and corporations. This has changed the way modern corporations do business because job, knowledge, and capital are now able to move across borders with far greater speed and far less friction than was possible before. |
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| Environmental Sustainability |
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Definition
| the use of business practices to reduce a company's impact upon the natural, physical environment. |
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| risks of climate change on industries/companies |
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Definition
| regulatory risk, supply chain risk, product and technology risk, litigation risk, reputational risk, and physical risk. RSPLRP |
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Definition
| A theory of organizational adaptation which thinks once a company is successfully established in a particular environmental niche, it is unable to adapt to change conditions, and is eventually replaced as the success leader. |
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Definition
| A theory of organizational adaptation which proposes that organizations can and do adapt to changing conditions by imitating other successful organizations. |
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| strategic choice perspective |
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Definition
| A theory of organizational adaptation which proposing not only do organizations adapt to a changing environment, but they also have the opportunity and power to reshape their environment. |
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| organizational learning theory |
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Definition
| A theory of organizational adaptation which says an organization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and its environment. |
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Definition
| An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights. These organizations are good at solving problems systematically, experiementing with new approaches, learning from their own experiences and past history as well as from the experiences of others, and transferring knowledge quickly and efficiently throughout the organization. |
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Definition
| the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. |
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Definition
| those external and internal elements that will determine the future of the corporation (can be found by performing a SWOT analysis). |
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Definition
| the variables of a corporation which are within the organization itself and are not usually within the short-run control of top management. |
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Definition
| the development of long-range plans for the effective management of environmental opportunities and threats after taking corporate strategic factors into consideration. |
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Definition
| the purpose/reason for an organization's existence. |
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Definition
| end results of a planned activity. They should be described with action words and be accomplished within the scope of the company's mission statement. |
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Definition
| a comprehensive master plan that states how the corporation will achieve its mission and objectives, usually through maximizing competitive advantages and minimizing it's competitive disadvantages. |
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| a company's overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines. Typically they include plans for stability, growth, and retrenchment. |
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Definition
| emphasizes improvement of the competitive position of a corporation's products or services in the specific industry or market segment served by that business unit. |
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Definition
| a statement of a corporation's prgrams in terms of dollars containing the detailed costs of each program for planning purposes. |
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Definition
| The lowest rate of return management will approve before a budget is accepted. |
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| procedures (a.k.a. Standard Operating Procedures) |
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Definition
| a system of sequential steps or techniques that describe in detail how a particular task or job is to be done. |
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Definition
| a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance. |
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Definition
| the actual outcomes of the strategic management process. |
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Definition
| a phenomenon/pattern which seems to have developed where corporations evolve through relatively long periods of stability (equilibrium periods) punctuated by relatively short bursts of fundamental change (revolutionary periods). |
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Definition
| something that acts as a stimulus for a change in strategy. (ex. new CEO, external intervention, threat of a change in ownership, performance gap, and/or strategic inflection points. |
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Definition
| when performance does not meet expectations. |
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Term
| strategic inflection point |
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Definition
| when a major change takes place in a business do to the introduction of new technologies, a different regulatory environment, a change in customer' values, or a change in what customers prefer. |
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Term
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Definition
| decisions that deal with the long-run future of an entire organization and are rare in nature, consequential because they commit substantial resources and demand a great deal of commitment from people at all levels, and they set precedents for lesser decisions and future actions throughout an organization (i.e. are "directive"). |
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Term
| Mintzberg and Quinn's four modes of strategic decision making |
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Definition
| Planning, entrepreneurial, adaptive, logical incrementalism (think PEALi ("peal-ee")) |
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Term
| Mintzberg's entrepreneurial mode for strategic decision making |
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Definition
| strategy made by one powerful individual which focuses on seizing opportunities as being more important than addressing problems. |
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Term
| Mintzberg's adaptive mode for strategic decision making |
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Definition
| taking a reactive approach to strategic decision making versus taking a proactive search for new opportunities. |
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Term
| Mintzberg's planning mode for strategic decision making |
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Definition
| a decision-making mode involving the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. It includes both a proactive search for new opportunities while trying to find reactive solutions to existing problems. |
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Term
| Quinn's logical incrementalism mode for strategic decision making |
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Definition
| When top management is aware and knowledgeable of the company's mission and objectives, but chooses to use an interactive process in which the organization probes the future, experiments and leans from a series of partial commitments rather than through global formulations of total strategies. It can be see as a combination of Mintzberg's three modes for strategic decision making. |
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Term
| The 8 steps in the strategic decision-making process. |
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Definition
| Evaluate current performance results, review corporate governance, scan and assess the external environment, scan and assess the internal corporate environment, analyze strategic (SWOT) factors, generate/evaluate/and select the best alternative strategy, implement selected strategies, and evaluate implemented strategies. |
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Term
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Definition
| a checklist of questions, by area or issue, that enables a systematic analysis to be made of various corporate functions and activities. |
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