Globus Exam 1

strategic management integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage strategy the set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors good strategy enable a firm to achieve superior performance relative to its competitors. Consisted of 1) a diagnosis of the competitive challenge. 2) a guiding policy to address the competitive challenge. 3) a set of coherent actions to implement a firm's guiding policy competitive advantage superior performance relative to other competitors in the same industry or the industry average sustainable competitive advantage outperforming competitors or the industry average over a prolonged period of time competitive disadvantage under performance relative to other competitors in the same industry or the industry average competitive parity performance of two or more firms at the same level vision a statement about what an organization ultimately wants to accomplish; captures the company's aspirations mission Description of what an organization actually does—the products and services it plans to provide, and the markets in which it will compete. core values statement statement of principles to guide an organization as it works to achieve its vision and fulfill its mission, for both internal conduct and external interactions; it often includes explicit ethical considerations organizational core values ethical standards and norms that govern the behavior of individuals within a firm or organization Product-Oriented Vision Statements defines a business in terms of a good or service provided customer oriented vision statement defines a business in terms of providing solutions to customer needs AFI strategy framework A model that links three interdependent strategic management tasks—analyze, formulate, and implement—that, together, help managers plan and implement a strategy that can improve performance and result in competitive advantage. 1) explains and predicts differences in firm performance 2)helps managers formulate and implement a strategy that can result in superior performance Strategic Leadership executives' use of power and influence to direct the activities of others when pursuing an organization's goals upper-echelons theory A conceptual framework that views organizational outcomes—strategic choices and performance levels—as reflections of the values of the members of the top management team. strategy formulation concerns the choice of strategy in terms of where and how to compete strategy implementation concerns the organization, coordination, and integration of how work gets done Corporate Strategy concerns questions relating to where to compete in terms of industry, markets, and geography Business Strategy concerns the question of how to compete. Three generic business strategies are available: cost leadership, differentiation, or value innovation. Funtional Strategy concerns the question of how to implement a chosen business strategy Leadership Pyramid A conceptual framework of leadership progression with five distinct, sequential levels. 1) highly capable individual: makes productive contributions through motivation, talent, knowledge, and skills 2) contributing team members: uses high level of capability to work effectively with others in order to achieve team objectives 3) competent manager: is efficient and effective in organizing resources to accomplish stated goals and objectives. Does things right 4) effective leader: presents compelling vision and mission to guide groups toward superior performance. Does the right things 5) executive: builds enduring greatness through a combination of willpower and humility Top-down strategic planning A rational, data-driven strategy process through which top management attempts to program future success. Scenario planning Strategy-planning activity in which top management envisions different what-if scenarios to anticipate plausible futures in order to derive strategic responses. Dominant planning top managers decide most closely matches the current reality and which is then executed intended strategy the outcome of a rational and structured top-down strategic plan