MGMT 478 JOEL STEVENSON TEST 1
Strategic Management - Answer -Decisions + action that = creation and implementation
of plans to achieve company's objectives
Strategy - Answer -Large-Scale, future oriented plans for interacting w/ competitive
environment to achieve company objectives
Formality - Answer -degree to which participation/response/authority/discretion in
decision making are specified in strategic management
Entrepreneurial mode - Answer -informal/innovative/limited approach to strategic
management associated w/ owners & managers of smaller firms
Planning mode - Answer -Formality in large firms that operate under comprehensive,
formal planning system
Adaptive mode - Answer -(strategic) formality associated with medium-firms for
incremental modification of existing competitive approaches
company mission - Answer -unique purpose that sets a company apart from others;
identifies the scope of its operations
long-term objectives - Answer -results an organization seeks to achieve over several
years
Generic strategies - Answer -fundamental philosophical options for strategy designs
Grand strategies - Answer -the means by which objectives are achieved
Short term objectives - Answer -results that provide specific guidance for action during
a year or less period
functional tactics - Answer -short-term, narrow plans that details "means"/activities a
company will use to achieve short-term objectives
Policies - Answer -predetermined decisions that substitute for managerial discretion in
repetitive decision making
Strategic control - Answer -tracking strategy through implementation, detecting
problems & changes in underlying promises & making necessary adjustments
continuous improvement - Answer -form of strategic control in which managers are
encouraged to be proactive in improving all operations of the firm
, process - Answer -flow of info through interrelated stages of analysis toward the
achievement of an aim
Stakeholders - Answer -influential people who are vitally interested in the action of the
business
feedback - Answer -analysis of post implementation results that can be used to
enhance future decision making
dynamic - Answer -characterizes constantly changing conditions that affect inter related
& interdependent strategic activities
Company mission - Answer -unique purpose setting a company apart from competition
& identifies scope of operations in product, market, and technology terms
company creed - Answer -company's statement of its philosophy
vision statement - Answer -presents firm's strategic intent design to focus energies and
resources of the company on achieving a desirable future
board of directors - Answer -group of stockholder representatives & strategic managers
responsible for overseeing the creation & accomplishment of the company mission
agency theory - Answer -set of ideas and organizational control based on the belief that
the separation of the ownership from management creates the potential for the wishes
of owners to be ignored
agency costs - Answer -cost of agency problems and cost of actions taken to minimize
them
moral hazard problem - Answer -occurs because owners have limited access to
company information, making executive free to pursue their own interest
adverse selection - Answer -agency problem caused by the limited ability of
stockholders to precisely determine the competencies & priorities of executives @ the
time they are hired
Ethical responsibilities - Answer -strategic manager's notion of right and proper
business behavior
discretionary responsibilities - Answer -responsibilities voluntarily assumed by a
business, such as public relations, good citizenship & full corporate responsibility
Corporate Social Responsibility - Answer -Idea business has a duty to serve society in
general as well as the financial interest of stockholders
Strategic Management - Answer -Decisions + action that = creation and implementation
of plans to achieve company's objectives
Strategy - Answer -Large-Scale, future oriented plans for interacting w/ competitive
environment to achieve company objectives
Formality - Answer -degree to which participation/response/authority/discretion in
decision making are specified in strategic management
Entrepreneurial mode - Answer -informal/innovative/limited approach to strategic
management associated w/ owners & managers of smaller firms
Planning mode - Answer -Formality in large firms that operate under comprehensive,
formal planning system
Adaptive mode - Answer -(strategic) formality associated with medium-firms for
incremental modification of existing competitive approaches
company mission - Answer -unique purpose that sets a company apart from others;
identifies the scope of its operations
long-term objectives - Answer -results an organization seeks to achieve over several
years
Generic strategies - Answer -fundamental philosophical options for strategy designs
Grand strategies - Answer -the means by which objectives are achieved
Short term objectives - Answer -results that provide specific guidance for action during
a year or less period
functional tactics - Answer -short-term, narrow plans that details "means"/activities a
company will use to achieve short-term objectives
Policies - Answer -predetermined decisions that substitute for managerial discretion in
repetitive decision making
Strategic control - Answer -tracking strategy through implementation, detecting
problems & changes in underlying promises & making necessary adjustments
continuous improvement - Answer -form of strategic control in which managers are
encouraged to be proactive in improving all operations of the firm
, process - Answer -flow of info through interrelated stages of analysis toward the
achievement of an aim
Stakeholders - Answer -influential people who are vitally interested in the action of the
business
feedback - Answer -analysis of post implementation results that can be used to
enhance future decision making
dynamic - Answer -characterizes constantly changing conditions that affect inter related
& interdependent strategic activities
Company mission - Answer -unique purpose setting a company apart from competition
& identifies scope of operations in product, market, and technology terms
company creed - Answer -company's statement of its philosophy
vision statement - Answer -presents firm's strategic intent design to focus energies and
resources of the company on achieving a desirable future
board of directors - Answer -group of stockholder representatives & strategic managers
responsible for overseeing the creation & accomplishment of the company mission
agency theory - Answer -set of ideas and organizational control based on the belief that
the separation of the ownership from management creates the potential for the wishes
of owners to be ignored
agency costs - Answer -cost of agency problems and cost of actions taken to minimize
them
moral hazard problem - Answer -occurs because owners have limited access to
company information, making executive free to pursue their own interest
adverse selection - Answer -agency problem caused by the limited ability of
stockholders to precisely determine the competencies & priorities of executives @ the
time they are hired
Ethical responsibilities - Answer -strategic manager's notion of right and proper
business behavior
discretionary responsibilities - Answer -responsibilities voluntarily assumed by a
business, such as public relations, good citizenship & full corporate responsibility
Corporate Social Responsibility - Answer -Idea business has a duty to serve society in
general as well as the financial interest of stockholders
