Chapter 15 - Organizational Strategy
Functional strategy
A set of rules determining how each department will implement the strategic plan
Prospector strategy
A means through which organizations focus on creativity, innovation, and flexibility and take high risks to accelerate growth and gain competitive advantage
Reactor strategy
A means through which organizations respond to environmental threats and opportunities rather than following a defined plan
Divisional strategy
A plan that focuses on how the different departments of the organization comply with the company's vision
Grafting
A process of hiring experts to bring their knowledge to the firm
Vicarious learning
A process of learning by watching the actions or behaviors of another person
Expatriate
An employee who lives and works in a foreign country on a temporary basis
Learning organization
An organization that facilitates the acquisition, distribution, and retention of knowledge to enable it to react to change
First mover
An organization that wins competitive advantage by being the first to establish itself in a particular manifest
The Four Types of Strategy
Defender -> analyzer -> reactor -> prospector
Culture shock
Feelings of nervousness, doubt, and confusion arising from being in a foreign environment
The Three Levels of Strategy
Functional -> Divisional -> Organizational
HIPOs
High potential employees who are flexible, committed, and motivated
Hofstede's Dimensions
Individualist vs collectivist, Power distance, uncertainty avoidance, and long-term orientation
Standardization
The degree to which employees are expected to follow the same rules and procedures as everyone else
Individualist-collectivist
The degree to which employees believe they have the right to live their life as they see fit, choose their own values, and act on their judgement
Uncertainty avoidance
The degree to which people are able to deal with the unexpected and how they cope with uncertainty in unstructured environments
Power distance
The extent to which people in different societies accept the way power is distributed
Globalization
The integration of economy, trade, and finance on an international scale
Defender strategy
The means by which organizations focus on stability and efficiency of their internal operations to protect their market from new competitors
Analyzer strategy
The means by which organizations try to maintain current products and services with a limited amount of innovation
Short-term ordination
The measurement of values such as meeting social obligations and avoiding embarrassment or shame
Long-term ordination
The measurement of values such as perseverance, respect for tradition and thrift
Localization
The process of adapting certain functions to accommodate the language, culture, or governing laws of the country
Operational planning
The process of aligning the strategic plan to the day to day tasks required to run the organization
Organizational strategy
The process of creating, evaluating, and implementing decisions and objectives to achieve long term competitive success
Mimicry
The process of learning from the successful practices of others
Strategic planning
The process through which a focus on the desired future sets out defined goals and objectives to translate the vison into reality
Scanning
The search for solutions from outside consultants, competitors, and other successful firms
Tactical planning
The short term actions and plans to implement strategy