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