Chapter 10
What is Managerial opportunism?
the seeking of self-interest with guile (i.e., cunning or deceit).
What is organizational structure?
specifies the firm’s formal reporting relationships, procedures, controls, and authority and decision-making processes.
What does ROI mean?
What is strategic leadership?
is the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary.
Define Free cash flow.
the cash remaining after the firm has invested in all projects that have positive net present value within its current businesses
Name the two types of organizational controls used to support the implementation of a strategy
1.Strategic controls
2.Financial controls
What kind of strategy did Baidu use ?
differentiation strategy
Describe a heterogeneous top management team
A heterogeneous top management team is composed of individuals with different functional backgrounds, experience, and education.
Name 3 internal governance mechanisms used in the modern corporation
1.Ownership concentration
2.The board of directors
3.Executive compensation
Name the 3 benefits of M-form structure
1.It enabled corporate officers to more accurately monitor the performance of each business, which simplified the problem of control.
2.It facilitated comparisons between divisions, which improved the resource allocation process.
3.It stimulated managers of poorly performing divisions to look for ways of improving performance.
According to our talk with Sr.Microsoft Global Manager Kevin, what is the best way to overcome challenges with global teams?
Overcommunicate
Who does it take to effectively change an organizational culture?
firm’s CEO, other key top management team members, and middle-level managers
As the equity held in state- owned enterprise in China has gradually declined the percentage of _____ has ___
private firms, grown (increased)
What are the three major types of organizational structures
1.Simple
2.Functional
3.Multidivisional
What was Baidu's core business offering?
Home grown internet search engine
Name 3 of the functions of organizational controls
•Are necessary to help ensure that firms achieve their desired outcomes
•Provide the parameters for implementing strategies as well as the corrective actions to take when implementation-related adjustments are required
•Organizational controls help strategic leaders:
•Build credibility
•Demonstrate the value of strategies to the firm’s stakeholders
•Promote and support strategic change
What role does a "poison pill" play in a hostile takeover?
Its a defense, a firm can use by making the stock less attractive to a potential acquirer.
Name 4 characteristics of the differentiation form of the functional structure
Relatively complex and flexible reporting relationships
Frequent use of cross-functional product development teams
A strong focus on marketing and product R & D rather than manufacturing and process R & D
•A development-oriented culture and flatter structure in which employees try to find ways and frequently exchange ideas about how to further differentiate current products and develop new, highly differentiated products
Decentralized decision-making responsibility and authority
Low specialization of jobs
Few formal rules and procedures
What is the primary goal of all firms
To achieve above average returns
Christina is evaluating Maximum Brands as an investment opportunity. She is very concerned about future financial performance by Maximum Brands. Christina does not believe that the CEO can act as a steward. Christina will probably be most concerned if:
there is CEO duality