chapter 6
Strategic goals
A goal set by and for top management of the organization
ongoing management process aimed at formulating and implementing effective strategies
Strategic management
The act of choosing one alternative from among a set of alternatives
Decision making
It’s the process of starting and running your own business while taking on financial risks in hopes of a profit.
Entrepreneurship
Deciding how best to group organizational activities and resources
Organizing
Tactical goals
Tactical goals are set by and for middle managers.
An organizational strength possessed by only a small number of competing firms
Distinctive competence
3 typs of Decision-Making Conditions
1. certainty
2. Risk
3. Uncertainty
This written roadmap outlines a new target market and financial projections to help secure funding.
Business plan
The determination of a person’s work-related responsibilities
Job design
Reaction plan
A plan developed to react to an unforeseen circumstance
The set of processes involved in creating or determining the strategies of the organization; it focuses on the content of strategies
Strategy formulation
Steps in rational decision making
1. Recognize and define the decision situation
2. Identify appropriate alternatives
3. Evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences
A relatively new small business
start-up
The process of grouping jobs according to some logical arrangement
departmentalization
Single-use plan
Developed to carry out a course of action that is not likely to be repeated in the future
SWOT
An acronym that stands for strengths, weaknesses, opportunities, and threats
An innate belief about something without conscious consideration
Intuition
This term describes a market where a few large, well-known firms compete using established rules and clear boundaries.
established market
The number of people who report to a particular manager
span of management
SOP
A standard plan that outlines the steps to be followed in particular circumstances
Porter’s Generic Strategies
Differentiation, Overall cost leadership, Focus
Managers must recognize when to use ______, how to assess whether coalitions are acting in the organization's best interests, and how to constrain their dysfunctional effects.
coalitions
This type of marketing focuses all efforts on one small, well-defined segment of the population.
Niche market
The process by which managers assign work to subordinates
Delegation