CH 2 - Strategic Leadership: Managing the Strategy Process

The concept, or framework of corporate social ________ guides firms in identifying and addressing their economic, legal, ethical and philanthropic obligations to society.

Responsibility

____________ planning is a strategy-planning activity in which top management envisions various what-if scenarios to anticipate plausible futures in order to derive strategic responses.

Scenario

Stakeholder strategy argues that focusing only on the needs of _____________ places the firm at risk of failure.

Shareholders

Managing the interactions of individuals and groups that affect and are affected by the activities of a firm is known as __________________ strategy.

Stakeholder

Which of the following is the conceptual framework developed by Jim Collins that describes the progression of leadership through distinct, sequential levels?

The Level-5 Leadership Pyramid

If parts of a firm's intended strategy fall by the wayside. it is referred to as:

Unrealized strategy

Which of the following legal developments allow business to function as an institution?

- Contract enforcement - Property rights

Intended strategy

- Top-down - Strategic plan - Rational and structure

What are the approaches that can be utilized when strategizing for competitive advantage?

1. Strategic planning 2. Scenario planning 3. Strategy as planned emergence

5 Steps of the Stakeholder Impact Analysis

1. Who are stakeholders? 2. What are our stakeholders' interests and claims? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical and philanthropi do we have to our stakeholders? 5. What should we do to effectively stakeholder concerns?

Top-Down Strategic Planning in the AFI Framework

Analysis: - Vision, Mission and Values - External Analysis - Internal Analysis Formulation: - Corporate Strategy - Business Strategy - Functional Strategy Implementation: - Structure, Culture, and Control - Corporate Governance and Business Ethics

Emergent strategy

Any unplanned strategic initiative bubbling up from deep within the organization.

A(n) _____________ swan event is an unexpected and unlikely occurrence that has a significant impact on society.

Black

Corporate Strategy

Concerns questions relating to where to compete as to industry, markets, and geography. "Where to compete"

Business Strategy

Concerns the question of how to compete. Three generic business strategies are available: cost leadership, differentiation, or value innovation. "How to compete"

The idea that firms should voluntarily give back to society when they are able to do so is also known as ________________.

Corporate citizenship

Stakeholder Impact Analysis

Decision tool with which strategic leaders can recognize, prioritize, and address the need of different stakeholders. - Competitive advantage - Good corporate citizen - Recognize stakeholder claims - Power, legitimacy, urgency

T/F: Top-down strategic planning is most effective when the environment is constantly changing.

False

A(n) ______________ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

Strategic initative

Functional Strategy

The question of how to implement a chosen business strategy. Different corporate and business strategies will require different activities across the various functions. "How to implement business strategy"

In the ____________ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm.

Third

T/F: Stakeholders can affect the firm's actions.

True

T/F: Strategic initiatives can be the result of top-down planning or a bottom-up process.

True

T/F: The actions of the firm can affect stakeholders.

True

If parts of a firm's intended strategy fall by the wayside, it is referred to as:

Unrealized strategy

Starbuck's commitment to fair trade and responsible growing practices indicates that the firm takes its __________ responsibilities seriously.

Ethical

In the _________ step of stakeholder impact analysis, firms identify those stakeholders that currently have, or potentially have, a material effect on the company.

First

Realized strategy

Formulated through a combination of its top-down strategic intentions and bottom-up emergent strategy.

Business strategy is developed by ______________.

General managers in strategic business units.

Jennie is the CEO of an information technology company. Based on the data that her researchers have compiled, she feels confident that her strategic plan for the company will be successful in the future, regardless of what happens. Based on this information, it seems that Jennie _______________.

Has an illusion of control

A(n) _____________ of control describes the tendency of managers to overestimate their ability to manage events.

Illusion

Strategy _________ concerns the organization, coordination, and integration of how work gets done.

Implementation

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ________________.

Interests and claims

Level-5 Leadership Pyramid (top, down)

Level 5: Executive Level 4: Effective Leader Level 3: Competent Manager Level 2: Contributing Team Member Level 1: Highly Capable Individual

Top-down strategy is derived from ____________.

Military strategy

The Pyramid of Corporate Social Responsibility (top of pyramid, to bottom)

Philanthropic Responsibilities: Corporate citizenship Ethical Responsibilities: Do what is right, just, and fair Legal Responsibilities: Laws and regulations are society's codified ethics Define minimum acceptable standard Economic Responsibilities: Gain and sustain competitive advantage

The executives of a computer software company developed an intended strategy to make the company more competitive. The company's ultimate ___________ strategy contained elements not only of the intended strategy but also unplanned elements from a(n) __________ strategy.

Realized; emergent