MGMT 681 Chap 2

Which of the following is NOT a way to minimize decision-making biases? LIST THE WAYS WE DISCUSSED THAT CAN HELP

Aware of biases Open decision making processes Diverse TMT Evaluation of decision process Some form of numerical analysis

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Customer-oriented is more broad and can cover more ground. Product-oriented limits companies to growing and modernizing.

Which of the following is an example of a product-oriented vision statement?

Defines a business in terms of goods/service. EX: We are in a typewriter business. (BAD) -less flexible -can lead to myopic view -not needs based Customer oriented EX: Google- "to organize the world's information and make it universally accessible and useful"

Describe the characteristics that make up a heteroTMT and a homoTMT.

HeteroTMT: DIFF education, background, and experience HomoTMT: SAME education, background, and experience

Which of the following is NOT associated with heterogeneous TMT? Innovation Higher Efficiency Identification of environmental changes Thinking outside the box Different perspectives Diminished debates Strategic change Stable strategy

Higher efficiency, diminished debate, and stable strategy are all homogeneous.

Which of the following is NOT likely to encourage change in a firm's strategy? WHAT FACTORS DISCOURAGE STRATEGIC CHANGE?

Homogeneous TMT Internal CEO succession

Does the selection of an insider as the new CEO indicate a firm's desire to encourage innovation and strategic change or does it encourage the firm to stay the same?

It would encourage innovation if the TMT is heterogeneous. You would need an outside CEO and a heterogeneous TMT for strategic change.

Will a more homogeneous top management team be more likely to innovate or improve efficiency? What about heterogeneous?

No, homoTMT have same strategies and therefor will not innovate. They will improve efficiency though, because they will most likely all be on the same page. HeteroTMT's all have different backgrounds and that leads to having different perspectives.

Pioneer Pharma Inc. and GH Medicines Corp. are two competing firms in the pharmaceutical industry. While Pioneer Pharma Inc.'s vision is "to be a preeminent drug manufacturer in the industry," GH Medicines Corp.'s vision is "to make good health a reality for everyone around the world." Which of the following is an implication of these different visions? Who is likely more flexible to adapting to a changing environment?

Pioneer=product (drug) GH=customer (more broad) = flexible

Define upper-echelon's theory. There is at least one question (maybe more) that will relate directly to it.

The values of the TMT influence the strategic choices they make. Values influenced by unique characteristics that form who we are. (Age, sex, education, race)

Which of the following summarizes the difference between a firm's vision and mission?

Vision: WHAT do we want to accomplish? Mission: HOW do we accomplish our goals?