Principles Chapter 5 & 8

The strategy diamond includes

Arenas, Staging, Economic Logic, Vehicles and Differentiators

are resources and capabilities that serve as a source of a firm's competitive advantage over rivals. ___________________distinguish a company competitively and reflect its personality. ______________emerge over time through an organizational process of accumulating and learning how to deploy different resources and capabilities

Core competencies

is where an organization participates in multiple businesses that are in some way distinct from each other, as Taco Bell is from Pizza Hut, for instance. Just as with a portfolio of stock, the purpose of diversification is to spread out risk and opportunities over a larger set of businesses. Some may be high growth, some slow growth or declining; some may perform worse during recessions, while others perform better.

Diversification

refers to the strategy where a firm's competitive advantage is based on the bet that it can develop, manufacture, and distribute products more efficiently than competitors.

Overall lower cost or cost leadership

Strategy Formulation involves the ____ in POLC. Strategy Implementation involves the _____ in POLC

P OLC

are predictable, rule-oriented, and bureaucratic. When the environment is stable and certain, these cultures may help the organization to be effective by providing stable and constant levels of output

Stable Cultures

________ is a common characteristic across successful organizations. ____________ is seen when an organization is very clear about its mission and vision and has a coherent, well-articulated strategy for achieving those.

Strategic Focus

reflects what a firm is doing to achieve its mission and vision, as seen by its achievement of specific goals and objectives.

Strategic Management

is the process by which a firm manages the formulation and implementation of its strategy The ____________ is "the coordinated means by which an organization achieves its goals and objectives

Strategic Management Process

_______ was developed by strategy researchers Don Hambrick and Jim Fredrickson as a framework for checking and communicating a strategy

Strategy Diamond

tells managers how they should go about putting the desired strategy into action.

Strategy Implementation

exists when the interaction of two or more activities (such as those in a business) create a combined effect greater than the sum of their individual effects. The idea is that the combination of certain businesses is stronger than they would be individually because they either do things more cheaply or of higher quality as a result of their coordination under a common owner.

Synergy

Companies with ________________ value competitiveness and outperforming competitors; by emphasizing this, they often fall short in corporate social responsibility.

agressive cultures

Organizational culture consists of: Finally, at the surface, we have __________, or visible, tangible aspects of organizational culture.

artifacts

Understanding the organization's culture may start from observing its_____________: its physical environment, employee interactions, company policies, reward systems, and other observable characteristics.

artifacts

Organizational Culture consists of: At the deepest level, below our awareness, lie basic ________. These ___________ are taken for granted and reflect beliefs about human nature and reality.

assumptions

Whereas corporate strategy looks at an organization as a portfolio of things, _________________ focuses on how a given business needs to compete to be effective.

business strategy

__________ diversification, where the new business produces products that are technically similar to the company's current product but that appeal to a new consumer group

concentric

__________ diversification, where the new business produces products that are totally unrelated to the company's current product and that appeal to an entirely new consumer group.

conglomerate

answers strategy questions related to "What business or businesses should we be in?" and "How does our business X help us compete in business Y, and vice versa?" In many ways, _______________ considers an organization to be a portfolio of businesses, resources, capabilities, or activities

corporate strategy

a subculture may take the form of a _________________. Defined as shared values and beliefs that are in direct opposition to the values of the broader organizational culture. __________________ are often shaped around a charismatic leader.

countercultures

the realized strategy is a consequence of __________________ and emerging factors.

deliberate

are characterized in the OCP framework as emphasizing precision and paying attention to details. Such a culture gives a competitive advantage to companies in the hospitality industry by helping them differentiate themselves from others.

detail-oriented culture

refers to the strategy where competitive advantage is based on superior products or service. Superiority arises from factors other than low cost, such as customer service, product quality, or unique style. To

differentiation

the decisions that emerge from the complex processes in which individual managers interpret the intended strategy and adapt to changing external circumstances ** primary determinant of realized strategy

emergent strategy

_______ concentrates on meeting the specialized needs of its customers. Products and services can be designed to meet the needs of buyers. One approach to focusing is to service either industrial buyers or consumers but not both

focus strategy

indoctrinates new employees to the company culture, as well as introducing them to their new jobs and colleagues. An __________ program has a role in making new employees feel welcome in addition to imparting information that may help them be successful in their new jobs

formal orientation program

_________ diversification, where the new business produces products that are totally unrelated to the company's current product but that appeal to the same consumer group;

horizontal

is a group of firms producing products that are close substitutes. In the course of competition, these firms influence one another. Typically, _______________ include a rich mix of competitive strategies that companies use in pursuing strategic competitiveness and above-average returns.

industries

Whereas PESTEL provides you with a good sense of the broader macro-environment,_______________ should tell you about the organization's competitive environment and the key industry-level factors that seem to influence performance.

industry analysis ** External Analysis Tool

consists of stakeholder groups that a firm has regular dealings with. The way these relationships develop can affect the costs, quality, and overall success of a business.

industry microenvironment

companies that have ____________ are flexible, adaptable, and experiment with new ideas. These companies are characterized by a flat hierarchy and titles and other status distinctions tend to be downplayed.

innovatie culture

is a nonphysical resource that provides gainful advantages in the marketplace. Brands, copyrights, software, logos, patents, goodwill, and other ______ factors afford name recognition for products and services.

intangible asset intangible

is strategy as conceived by the top management team. Even here, rationality is limited and the ________ strategy is the result of a process of negotiation, bargaining, and compromise, involving many individuals and groups within the organization.

intended

can be crucial to helping new employees adjust by teaching them the ropes of their jobs and how the company really operates. A _______ is a trusted person who provides an employee with advice and support regarding career-related matters.

mentors

Another way in which an organization's values, norms, and behavioral patterns are transmitted to employees is through ______________ (also referred to as the organizational socialization process). __________ refers to the process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization.

on boarding

refers to a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior. These values have a strong influence on employee behavior as well as organizational performance.

organizational culture

The OCP framework describes _________________________ as those that emphasize achievement, results, and action as important values. hold employees as well as managers accountable for success and use systems that reward employee and group output.

outcome-oriented cultures

value fairness, supportiveness, and respecting individual rights. In these organizations, there is a greater emphasis on and expectation of treating people with respect and dignity

people-oriented cultures

PESTEL stands for _________________________. Simply, the PESTEL framework directs you to collect information about, and analyze, each environmental dimension to identify the broad range of threats and opportunities facing the organization.

political, economic, sociocultural, technological, environmental, and legal environments. ** External Analysis Tool

the actual strategy that is implemented—is only partly related to that which was intended

realized

refer to repetitive activities within an organization that have symbolic meaning. Usually _________ have their roots in the history of a company's culture. They create camaraderie and a sense of belonging among employees. They also serve to teach employees corporate values and create identification with the organization.

rituals

Planning and _____________ sometimes called business planning, or strategic planning, have much in common, since _________ helps determine what the firm should do.

strategy formulation formulation

these four inputs into strategizing are often called SWOT analysis which stands for

strengths, weaknesses, opportunities, and threats

is one that is shared by organizational members —that is, a culture in which most employees in the organization show consensus regarding the values of the company. The stronger a company's culture, the more likely it is to affect the way employees think and behave. For

strong culture

Cultures that emerge within different departments, branches, or geographic locations are called ________. _________________may arise from the personal characteristics of employees and managers, as well as the different conditions under which work is performed.

subcultures

The hardest thing for an organization to do is to develop its competitive advantage into a _____________________ where the organization's strengths cannot be easily duplicated or imitated by other firms, nor made redundant or less valuable by changes in the external environment.

sustainable competitive advantage

has a value and physically exists. Land, machines, equipment, automobiles, and even currencies, are examples of _________

tangible assets

are collaborative and emphasize cooperation among employees.

team oriented cultures

VRIO stands for ______________—basically, the VRIO framework suggests that a capability, or a resource, such as a patent or great location, is likely to yield a competitive advantage to an organization when it can be shown that it is ________

valuable, rare, inimitable, and organization ** internal analysis tool

The __________, popularized by Michael Porter's book Competitive Advantage, is a useful tool for taking stock of organizational capabilities

value chain

Organizational culture consists of: At the second level, ________ exist. _________ are shared principles, standards, and goals.

values

the likelihood of firms making profits in a given industry depends on five factors:

(1) barriers to entry and new entry threats, (2) buyer power, (3) supplier power, (4) threat from substitutes, and (5) rivalry

is a statement of purpose, describing who the company is and what it does. It serves an important function for organizations as part of the first facet of the planning P-O-L-C function

Mission statement