CHAPTER 7
Annual Objectives (p. 215) - Annual objectives
are short-term milestones that organizations
must achieve to reach long term objectives. Like
long-term objectives, annual objectives should
be measurable, quantitative, challenging,
realistic, consistent, and prioritized.
Avoidance (p. 220) - Avoidance includes such
actions as ignoring the problem in hopes that the
conflict will resolve itself or physically separating
the conflicting individuals (or groups)
Benchmarking (p. 230) - benchmarking simply
involves comparing a firm against the best firms
in the industry on a wide variety of performance
related criteria.
Bonus System (p. 233) - Criteria such as sales,
profit, production efficiency, quality, and safety
could also serve as bases for an effective bonus
system
Conflict (p. 220) - Conflict can be defined as a
disagreement between two or more parties on
one or more issues.
Confrontation (p. 220)
Culture (p. 235)
Decentralized Structure (p. 222)
Defusion (p. 220) - Defusion can include playing
down differences between conflicting parties
while accentuating similarities and common
interests, compromising so that there is neither
a clear winner nor loser, resorting to majority
rule, appealing to a higher authority, or
redesigning present positions.
Delayering (p. 229)
Divisional Structure by Geographic Area,
Product, Customer, or Process (p. 224)
Downsizing (p. 229)
Educative Change Strategy (p. 234)
Employee Stock Ownership Plans (ESOP) (p.
238)
Establishing Annual Objectives (p. 215)
Force Change Strategy (p. 234)
Functional Structure (p. 222)
Furloughs (p. 237) Gain Sharing (p. 232)
Glass Ceiling (p. 242) - Glass ceiling refers to the
invisible barrier in many firms that bars women
and minorities from top-level management
positions.
Horizontal Consistency of Objectives (p. 217) Horizontal consistency of objectives is as
important as vertical consistency of objectives.
For instance, it would not be effective for
manufacturing to achieve more than its annual
objective of units produced if marketing could
not sell the additional units.
Just-in-Time (JIT) (p. 237) - Just-in-time (JIT)
production approaches have withstood the test
of time. JIT significantly reduces the costs of
implementing strategies.
Matrix Structure (p. 226) - A matrix structure is
the most complex of all designs because it
depends upon both vertical and horizontal flows
of authority and communication.
Policy (p. 217) - policy refers to specific
guidelines, methods, procedures, rules, forms,
and administrative practices established to
support and encourage work toward stated goals
Profit Sharing (p. 232) - profit sharing is another
widely used form of incentive compensation.
Rational Change Strategy (p. 234)
Reengineering (p. 230) – reengineering is
concerned more with employee and customer
well-being than shareholder well-being.
Reengineering—also
called
process
management, process innovation, or process
redesign—involves reconfiguring or redesigning
work, jobs, and processes for the purpose of
improving cost, quality, service, and speed.
Resistance to Change (p. 234) - Resistance to
change can be considered the single greatest
threat to successful strategy implementation
Resource Allocation (p. 219)
Restructuring (p. 229) - Restructuring—also
called downsizing, rightsizing, or delayering—
involves reducing the size of the firm in terms of
number of employees, number of divisions or
units, and number of hierarchical levels in the
firm’s organizational structure.
Rightsizing (p. 229)
Self-Interest Change Strategy (p. 234)
Six Sigma (p. 230) - Six Sigma is a qualityboosting process improvement technique that
entails training several key persons in the firm in
the techniques to monitor, measure, and
improve processes and eliminate defects.
Strategic Business Unit (SBU) Structure (p. 225)
- As the number, size, and diversity of divisions in
an organization increase, controlling and
evaluating divisional operations become
increasingly difficult for strategists. Increases in
sales often are not accompanied by similar
increases in profitability.
Vertical Consistency of Objectives (p. 217) - For
instance, it would not be effective for
manufacturing to achieve more than its annual
objective of units produced if marketing could
not sell the additional units.
CHAPTER 8
Cash Budget (p. 272) - most common type of
financial budget is the cash budget
EPS/EBIT Analysis (p. 262) - is a valuable tool for
making the capital financing decisions needed to
implement strategies, but several considerations
should be made whenever using this technique.
Financial Budget (p. 271) - A financial budget is a
document that details how funds will be
obtained and spent for a specified period of time
Management Information System (MIS) (p. 277)
- Firms that gather, assimilate, and evaluate
external and internal information most
effectively are gaining competitive advantages
over other firms.
Market Segmentation (p. 257)
Marketing Mix Variables (p. 258) – 4 Ps
Multidimensional
Scaling
(p.
260)
Multidimensional scaling could be used to
examine three or more criteria simultaneously,
but this technique requires computer assistance
and is beyond the scope of this text.
Outstanding Shares Method (p. 275) - To use
this method, simply multiply the number of
shares outstanding by the market price per share
and add a premium.
Price-Earnings Ratio Method (p. 275) - The third
approach is called the price-earnings ratio
method. To use this method, divide the market
price of the firm’s common stock by the annual
earnings per share and multiply this number by
the firm’s average net income for the past five
years.
Product Positioning (p. 257) - After markets
have been segmented so that the firm can target
particular customer groups, the next step is to
find out what customers want and expect. This
takes analysis and research.
Projected Financial Statement Analysis (p. 266)
Purpose-Based Marketing (p. 257)
Research and Development (R&D) (p. 275)
Tweet (p. 255)
Vacant Niche (p. 260) - Look for the hole or
vacant niche. The best strategic opportunity
might be an unserved segment.
Wikis (p. 253)
CHAPTER 9
Advantage (p. 288)
Auditing (p. 300) Balanced Scorecard (p. 295) - e Balanced
Scorecard is an important strategy-evaluation
tool. It is a process that allows firms to evaluate
strategies from four perspectives: financial
performance, customer knowledge, internal
business processes, and learning and growth
Consistency (p. 288)
Consonance (p. 288) - Consonance refers to the
need for strategists to examine sets of trends, as
well as individual trends, in evaluating strategies.
Contingency Plans (p. 299)
Feasibility (p. 288) - A strategy must neither
overtax available resources nor create
unsolvable sub problems
Future Shock (p. 295)
GAAS, GAAP, and IFRS (p. 300)
Management by Wandering Around (p. 290) Measuring Organizational Performance (p. 292)
Reviewing the Underlying Bases
Organization’s Strategy (p. 290)
of
an
Revised EFE Matrix (p. 291) - A revised EFE
Matrix should indicate how effective a firm’s
strategies have been in response to key
opportunities and threats
Revised IFE Matrix (p. 290)
Taking Corrective Actions (p. 294) - The final
strategy-evaluation activity, taking corrective
actions, requires making changes
to
competitively reposition a firm for the future.
Taking corrective actions does not necessarily
mean that existing strategies will be abandoned
or even that new strategies must be formulated
CHAPTER 10
Bribe (p. 314)
Bribery (p. 314)
Business Ethics (p. 311)
Code of Business Ethics (p. 313)
Environment (p. 317)
EMS (environmental management system) (p.
321)
ISO 14000 (p. 320)
ISO 14001 (p. 320)
Social policy (p. 315)
Social responsibility (p. 311)
Sustainability (p. 311)
Whistle-Blowing (p. 313)
CHAPTER 11
Feng Shui (p. 337)
Global Strategy (p. 334)
Globalization (p. 334)
Guanxi (p. 335)
International Firms (p. 331)
Inhwa (p. 335)
Multinational Corporations (p. 331)
Nemaswashio (p. 337)
Protectionism (p. 333)
Recession (p. 335)
Wa (p. 335)