Romantic View of Leadership
Situations in which the leader is the key force determining the organization's success--or lack thereof.
External View of Leadership
Situations in which external forces--where let leader has limited influence--determine the organization's success
Strategic Management
The analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
Four Key Attributes of Strategic Management
� Directs the organization toward overall goals and objectives.
� Inclueds multiple stakeholders in decision making.
�Needs to incorporate short-term and long-term perspectives.
Recognizes trade-offs between efficiency and effectiveness.
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 an organization rather than wasting efforts, 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.
Intended Strategy
Strategy in which organizational decisions are determines only by analysis.
Realized Strategy
Strategy in which organizational decisions are determines by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.
Corporate Governance
The relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors.
Social Responsibility
The expectation that businesses or individuals will strive to improve the overall welfare of society.
Triple Bottom Line
The assessment of a company's performance in financial, social, and environmental dimensions.
Hierarchy of Goals
Organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more specific and measurable.
Vision
Organizational goal(s) that evoke(s) powerful and compelling mental images.
Mission Statement
A set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage.
Strategic Objectives
A set of organizational goals that are used to operationalize the mission statement and that are specific and cover a well-defined time frame.
Strategic Objectives (4 criteria)
1. Measurable - There must be at least on indicator that measures progress against fulfilling the objective.
2. Specific - This provides a clear message as to what needs to be accomplished.
3. Appropriate - It must be consistent with the vision and missio