Mgt 405 Ch 1 Notes Essay

Submitted By 2the9s
Words: 541
Pages: 3

Mgt 405
Ch 1
Romantic view of leadership: situations in which the leader is the key force determining the organizations success or lack thereof.
CEO praised for success of company such as Steve Jobs of apple
External control view of leadership: situations in which external forces - where the leader has limited influence – determine the organizations success.
Such as the Borders example when books started to go online and through digital media, overwhelming environmental force against which there are few defenses.
Hurricane Katrina, the financial collapse of 2008, etc natural disasters
Strategic management: the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
The analysis of strategic goals, vision , mission, objectives
Strategy: the ideas, decisions, and actions that enable a firm to succeed.
Competitive advantage: a firms resources and capabilities that enable it to overcome the competitive forces in its industry.
Operational effectiveness: performing similar activities better than rivals.
Stakeholders: individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large.
Effectiveness: tailoring actions to the needs of the organization rather than wasting effort, or “doing the right thing”
Efficiency: performing actions at a low cost relative to a benchmark or “doing things right”
Ambidexterity: the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.
Strategic management process: strategy analysis, strategy formulation, and strategy implementation.
4 key attributes of strategic management:
Directed toward overall organizational goals and objectives.
Includes multiple stakeholders in decision making.
Requires incorporating both short and long term perspectives.
Involves the recognition of trade-offs b/w effectiveness and efficiency
Intended strategy: organizational decisions are determined only by analysis.
Realized strategy: organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.
Strategy analysis: study of firm’s external and internal environments, and their fit w/ organizational vision and goals.
Strategy formulation: decisions made by firms regarding investments, commitments, and other aspects of operations that create and…