MGMT 478 Joel Stevenson Test 1 UPDATED ACTUAL Questions And Correct
Answers
Terms in this set (91)
Strategic Management Decisions + action that = creation and implementation of plans to achieve
company's objectives
Strategy Large-Scale, future oriented plans for interacting w/ competitive environment to
achieve company objectives
Formality degree to which participation/response/authority/discretion in decision making
are specified in strategic management
Entrepreneurial mode informal/innovative/limited approach to strategic management associated w/
owners & managers of smaller firms
Planning mode Formality in large firms that operate under comprehensive, formal planning
system
Adaptive mode (strategic) formality associated with medium-firms for incremental modification of
existing competitive approaches
company mission unique purpose that sets a company apart from others; identifies the scope of its
operations
long-term objectives results an organization seeks to achieve over several years
Generic strategies fundamental philosophical options for strategy designs
Grand strategies the means by which objectives are achieved
Short term objectives results that provide specific guidance for action during a year or less period
functional tactics short-term, narrow plans that details "means"/activities a company will use to
achieve short-term objectives
Policies predetermined decisions that substitute for managerial discretion in repetitive
decision making
Strategic control tracking strategy through implementation, detecting problems & changes in
underlying promises & making necessary adjustments
continuous improvement form of strategic control in which managers are encouraged to be proactive in
improving all operations of the firm
process flow of info through interrelated stages of analysis toward the achievement of an
aim
, Stakeholders influential people who are vitally interested in the action of the business
feedback analysis of post implementation results that can be used to enhance future
decision making
dynamic characterizes constantly changing conditions that affect inter related &
interdependent strategic activities
Company mission unique purpose setting a company apart from competition & identifies scope of
operations in product, market, and technology terms
company creed company's statement of its philosophy
vision statement presents firm's strategic intent design to focus energies and resources of the
company on achieving a desirable future
board of directors group of stockholder representatives & strategic managers responsible for
overseeing the creation & accomplishment of the company mission
agency theory set of ideas and organizational control based on the belief that the separation of
the ownership from management creates the potential for the wishes of owners to
be ignored
agency costs cost of agency problems and cost of actions taken to minimize them
moral hazard problem occurs because owners have limited access to company information, making
executive free to pursue their own interest
adverse selection agency problem caused by the limited ability of stockholders to precisely
determine the competencies & priorities of executives @ the time they are hired
Ethical responsibilities strategic manager's notion of right and proper business behavior
discretionary responsibilities responsibilities voluntarily assumed by a business, such as public relations, good
citizenship & full corporate responsibility
Corporate Social Responsibility Idea business has a duty to serve society in general as well as the financial interest
of stockholders
Sarbanes-Oxley Act of 2002 Law that revised & strengthened auditing & accounting standards
Social audit attempt to measure a company's actual social performance against its social
objectives
Ethics moral principles that reflect society's beliefs about the actions of an individual or
group that are right or wrong
utilitarian approach judging appropriateness of a particular action based on a goal to provide the
greatest good for the greatest number of people
Answers
Terms in this set (91)
Strategic Management Decisions + action that = creation and implementation of plans to achieve
company's objectives
Strategy Large-Scale, future oriented plans for interacting w/ competitive environment to
achieve company objectives
Formality degree to which participation/response/authority/discretion in decision making
are specified in strategic management
Entrepreneurial mode informal/innovative/limited approach to strategic management associated w/
owners & managers of smaller firms
Planning mode Formality in large firms that operate under comprehensive, formal planning
system
Adaptive mode (strategic) formality associated with medium-firms for incremental modification of
existing competitive approaches
company mission unique purpose that sets a company apart from others; identifies the scope of its
operations
long-term objectives results an organization seeks to achieve over several years
Generic strategies fundamental philosophical options for strategy designs
Grand strategies the means by which objectives are achieved
Short term objectives results that provide specific guidance for action during a year or less period
functional tactics short-term, narrow plans that details "means"/activities a company will use to
achieve short-term objectives
Policies predetermined decisions that substitute for managerial discretion in repetitive
decision making
Strategic control tracking strategy through implementation, detecting problems & changes in
underlying promises & making necessary adjustments
continuous improvement form of strategic control in which managers are encouraged to be proactive in
improving all operations of the firm
process flow of info through interrelated stages of analysis toward the achievement of an
aim
, Stakeholders influential people who are vitally interested in the action of the business
feedback analysis of post implementation results that can be used to enhance future
decision making
dynamic characterizes constantly changing conditions that affect inter related &
interdependent strategic activities
Company mission unique purpose setting a company apart from competition & identifies scope of
operations in product, market, and technology terms
company creed company's statement of its philosophy
vision statement presents firm's strategic intent design to focus energies and resources of the
company on achieving a desirable future
board of directors group of stockholder representatives & strategic managers responsible for
overseeing the creation & accomplishment of the company mission
agency theory set of ideas and organizational control based on the belief that the separation of
the ownership from management creates the potential for the wishes of owners to
be ignored
agency costs cost of agency problems and cost of actions taken to minimize them
moral hazard problem occurs because owners have limited access to company information, making
executive free to pursue their own interest
adverse selection agency problem caused by the limited ability of stockholders to precisely
determine the competencies & priorities of executives @ the time they are hired
Ethical responsibilities strategic manager's notion of right and proper business behavior
discretionary responsibilities responsibilities voluntarily assumed by a business, such as public relations, good
citizenship & full corporate responsibility
Corporate Social Responsibility Idea business has a duty to serve society in general as well as the financial interest
of stockholders
Sarbanes-Oxley Act of 2002 Law that revised & strengthened auditing & accounting standards
Social audit attempt to measure a company's actual social performance against its social
objectives
Ethics moral principles that reflect society's beliefs about the actions of an individual or
group that are right or wrong
utilitarian approach judging appropriateness of a particular action based on a goal to provide the
greatest good for the greatest number of people
