MNG3702 Assignment 2 Semester 2 due 15
September 2025
_____________________________________________________________________________
Strategic Control
the process of monitoring and connecting a firm's strategy and performance.
Informational Control
ability to respond effectively to environmental change.
Behavioral Control
the appropriate balance and alignment among a firm's culture, rewards and boundaries.
Traditional Approach to Strategic Control
a sequential method of organizational control in which strategies are formulated, implemented,
and performance is measured against predetermined goals.
Contemporary Approach to Strategic Control
adapting to and anticipating both internal and external environmental change as an integral part
of strategic control.
Organizational Culture
a system of shared values and beliefs that shape a company's people, organizational structures,
and control systems to produce behavioral norms.
Sustaining an Effective Culture
powerful organizational cultures require strong commitment from leaders throughout the
organization.
Reward System
policies that specify who gets rewarded and why.
Boundaries and Constraints
rules that specify behaviors that are acceptable and unacceptable.
Corporate Governance
the relationship among various participants in determining the direction and performance of
corporations.
Corporation
a mechanism created to allow different parties to contribute capital, expertise, and labor for the
maximum benefit of each party.
Agency Theory
a theory of the relationship between participants and their agents, emphasizing conflicting goals
and monitoring difficulties.
Shareholder Activism
actions by large shareholders to protect their interests when they feel that managerial actions
diverge from shareholder value maximization.
CEO Duality
,the dual leadership structure where the CEO acts simultaneously as the chair of the board of
directors.
Unity of Command
A principle that emphasizes a single authority directing a group to avoid confusion.
External Governance Control Mechanisms
Methods that ensure that managerial actions lead to shareholder value maximization and do
not harm other stakeholder groups.
The Market for Corporate Control
An external control mechanism in which shareholders dissatisfied with a firm's management sell
their shares.
Takeover Constraint
The risk to management of the firm being acquired by a hostile raider.
Auditors
Professionals who review financial statements to ensure accuracy and compliance with
regulations.
Banks and Analysts
Financial institutions and professionals that evaluate a firm's performance and provide insights.
Regulatory Bodies
Government agencies that enforce laws and regulations to ensure fair practices in the market.
Media and Public Activists
Entities that influence corporate governance through public opinion and advocacy.
Principal-principal Conflicts
Conflicts between two classes of principals, particularly between controlling shareholders and
minority shareholders.
Expropriation of Minority Shareholders
Activities that enrich controlling shareholders at the expense of minority shareholders.
Business Groups
A set of firms that are legally independent but are bound by formal and informal ties.
Organizational Structure
The formulated patterns of interactions that link a firm's tasks, technologies, and people.
Simple Organizational Structure
An organizational form where the owner-manager makes most decisions and controls activities.
Functional Organizational Structure
An organizational form where major functions of the firm are grouped internally.
Divisional Organizational Structure
An organizational form where products, projects, or product markets are grouped internally.
Strategic Business Unit (SBU) Structure
An organizational form where products, projects, or product market divisions are grouped into
homogeneous units.
Holding Company Structure
An organizational form that allows divisions a high degree of autonomy from corporate
headquarters.
Matrix Structure
, An organizational form with multiple lines of authority where individuals report to at least two
managers.
International division
A structure used to manage a firm's international operations.
Geographic-area division
A structure that organizes a firm's operations based on geographical regions.
Worldwide functional
A structure that organizes a firm's international operations by functions.
Worldwide product division
A structure that organizes a firm's international operations by product lines.
Worldwide matrix
A structure that combines multiple organizational forms to manage international operations.
Global Start-up
A business organization that seeks to derive significant advantage from resources in multiple
countries.
Boundaries Organizational Designs
Organizations with permeable boundaries, including vertical, horizontal, external, and
geographic.
The Modular Organization
An organization that outsources nonvital functions while retaining strategic control.
Virtual Organization
A continually evolving network of independent companies that are linked together to share
skills, costs, and access to one another's markets.
Adaptability
Managers' exploration of new opportunities and adjustments to volatile markets in order to
avoid complacency.
Alignment
Managers' clear sense of how value is being created in the short term and how activities are
integrated and properly coordinated.
Ambidextrous Organizational Designs
Organizational designs that attempt to simultaneously pursue modest, incremental innovations
as well as more dramatic, breakthrough innovations.
Strategy Formulation
Positioning forces before the action.
Strategy Implementation
Managing forces during the action.
Effectiveness
Focus of strategy formulation.
Efficiency
Focus of strategy implementation.
Intellectual Process
Primarily associated with strategy formulation.
Operational Process
Primarily associated with strategy implementation.
September 2025
_____________________________________________________________________________
Strategic Control
the process of monitoring and connecting a firm's strategy and performance.
Informational Control
ability to respond effectively to environmental change.
Behavioral Control
the appropriate balance and alignment among a firm's culture, rewards and boundaries.
Traditional Approach to Strategic Control
a sequential method of organizational control in which strategies are formulated, implemented,
and performance is measured against predetermined goals.
Contemporary Approach to Strategic Control
adapting to and anticipating both internal and external environmental change as an integral part
of strategic control.
Organizational Culture
a system of shared values and beliefs that shape a company's people, organizational structures,
and control systems to produce behavioral norms.
Sustaining an Effective Culture
powerful organizational cultures require strong commitment from leaders throughout the
organization.
Reward System
policies that specify who gets rewarded and why.
Boundaries and Constraints
rules that specify behaviors that are acceptable and unacceptable.
Corporate Governance
the relationship among various participants in determining the direction and performance of
corporations.
Corporation
a mechanism created to allow different parties to contribute capital, expertise, and labor for the
maximum benefit of each party.
Agency Theory
a theory of the relationship between participants and their agents, emphasizing conflicting goals
and monitoring difficulties.
Shareholder Activism
actions by large shareholders to protect their interests when they feel that managerial actions
diverge from shareholder value maximization.
CEO Duality
,the dual leadership structure where the CEO acts simultaneously as the chair of the board of
directors.
Unity of Command
A principle that emphasizes a single authority directing a group to avoid confusion.
External Governance Control Mechanisms
Methods that ensure that managerial actions lead to shareholder value maximization and do
not harm other stakeholder groups.
The Market for Corporate Control
An external control mechanism in which shareholders dissatisfied with a firm's management sell
their shares.
Takeover Constraint
The risk to management of the firm being acquired by a hostile raider.
Auditors
Professionals who review financial statements to ensure accuracy and compliance with
regulations.
Banks and Analysts
Financial institutions and professionals that evaluate a firm's performance and provide insights.
Regulatory Bodies
Government agencies that enforce laws and regulations to ensure fair practices in the market.
Media and Public Activists
Entities that influence corporate governance through public opinion and advocacy.
Principal-principal Conflicts
Conflicts between two classes of principals, particularly between controlling shareholders and
minority shareholders.
Expropriation of Minority Shareholders
Activities that enrich controlling shareholders at the expense of minority shareholders.
Business Groups
A set of firms that are legally independent but are bound by formal and informal ties.
Organizational Structure
The formulated patterns of interactions that link a firm's tasks, technologies, and people.
Simple Organizational Structure
An organizational form where the owner-manager makes most decisions and controls activities.
Functional Organizational Structure
An organizational form where major functions of the firm are grouped internally.
Divisional Organizational Structure
An organizational form where products, projects, or product markets are grouped internally.
Strategic Business Unit (SBU) Structure
An organizational form where products, projects, or product market divisions are grouped into
homogeneous units.
Holding Company Structure
An organizational form that allows divisions a high degree of autonomy from corporate
headquarters.
Matrix Structure
, An organizational form with multiple lines of authority where individuals report to at least two
managers.
International division
A structure used to manage a firm's international operations.
Geographic-area division
A structure that organizes a firm's operations based on geographical regions.
Worldwide functional
A structure that organizes a firm's international operations by functions.
Worldwide product division
A structure that organizes a firm's international operations by product lines.
Worldwide matrix
A structure that combines multiple organizational forms to manage international operations.
Global Start-up
A business organization that seeks to derive significant advantage from resources in multiple
countries.
Boundaries Organizational Designs
Organizations with permeable boundaries, including vertical, horizontal, external, and
geographic.
The Modular Organization
An organization that outsources nonvital functions while retaining strategic control.
Virtual Organization
A continually evolving network of independent companies that are linked together to share
skills, costs, and access to one another's markets.
Adaptability
Managers' exploration of new opportunities and adjustments to volatile markets in order to
avoid complacency.
Alignment
Managers' clear sense of how value is being created in the short term and how activities are
integrated and properly coordinated.
Ambidextrous Organizational Designs
Organizational designs that attempt to simultaneously pursue modest, incremental innovations
as well as more dramatic, breakthrough innovations.
Strategy Formulation
Positioning forces before the action.
Strategy Implementation
Managing forces during the action.
Effectiveness
Focus of strategy formulation.
Efficiency
Focus of strategy implementation.
Intellectual Process
Primarily associated with strategy formulation.
Operational Process
Primarily associated with strategy implementation.
