Keywords for CPA Global Strategy and Leadership (GSL)
Keyword Definition Page Reference
Module 1: An Introduction to Strategy and Leadership
Strategy Those decisions that have high medium-term to long-term impact on the Chapter 1.1
activities of the organisation, including analysis leading to the resourcing (p.3)
and implementation of those decisions, to create value for key
stakeholders and to outperform competitors.
The Rational Approach Based on a linear and mechanistic model, in which the conception and Chapter 1.2
to Strategy execution of strategy are treated as discrete, sequential activities (p.8)
Strategic Management An ongoing and dynamic process that requires constant monitoring and Chapter 1.2
adjustment (p.10)
Competitive advantage The ability of an organisation to outperform its competitors and make Chapter 1.3
more profits than its competitors do from an equivalent set of activities (p.12)
(E.g. Doing things in a different way)
Purpose Chapter 1.3
Extends the focus of the organisation across a network of connected (p.12)
interests and relationships
Customer profile Articulates customer understanding for specific customer segments in Chapter 1.3
terms of what the customer needs to get done, what is currently difficult (p.14)
or challenging for them (the pain points) and ways that pain could be
addressed to create value for that particular customer segment
Pains Describes obstacles that get in the way of jobs to be done Chapter 1.3
(p.14)
Gains Describes the outcomes customers are trying to achieve and the benefits Chapter 1.3
they are looking for (p.14)
Value map Articulates the ways an organisation describes how it will create value for Chapter 1.3
the customer by describing the products and services that will be offered, (p.14)
how they will address current pain points for customers and how they will
create value for customers
Pain relievers Describes how products and services could address customer pain points Chapter 1.3
(p.14)
Gain creators Describe how products and services could help customers achieve the Chapter 1.3
outcome and benefits they are looking for (p.14)
Productivity frontier An economic concept that represents the current level of best practice and Chapter 1.3
it is the curve where the most efficient performers in the industry are (p.16)
placed
Operational Relates to reducing costs in order to achieve better performance (e.g. Chapter 1.3
efficiency/effectiveness distribution company implementing GPS tracking and guidance equipment (p.16)
on their trucks)
Competitive strategy Attempts to transform the activities performed, so that they differ from Chapter 1.3
rivals or are completed in a different manner to standard practice in the (p.17)
market (E.g. Makes the company’s products completely unique)
Strategic fit Involves matching the organisation’s goals, values, assets and capabilities, Chapter 1.3
structures and systems to the external environment and market needs (p.17)
(E.g. Acquiring a competitor, extending a product line, relocating
production or divesting distribution)
Strategic stretch Resource-led and based on leaders and managers challenging how Chapter 1.3
organisational resources and capabilities can be leveraged (‘stretched’) to (p.17)
create new opportunities or competencies – Relates to competitive
strategy (E.g. Create products, reorganise resources – More risky and
, expensive but greater rewards
Valley of death Describes the period of time where a start-up has commenced operations Chapter 1.4
but is not yet generating revenue (p.19)
Capability Maturity Originally developed to assist in the development of software but it Chapter 1.4
Model (CMM) evolved to become a useful tool in describing the overall capability and (p.20)
maturity of an organisation according to 5 levels
Corporate strategy Embraces all a diversified organisation’s businesses and determines how Chapter 1.4
the scope of these businesses are managed and coordinated to contribute (p.21)
to corporate performance.
Business strategy For individual businesses or each area of business into which the Chapter 1.4
organisation has diversified (p.21)
Functional strategy Pertains to each of the functions in an organisation, such as marketing, Chapter 1.4
production and human resources, the strategies for which have to be (p.21)
consistent with the overall business and/or corporate strategy
Interaction costs Represent the money and time expended whenever people and companies Chapter 1.4
exchange goods, services, or ideas (p.22)
Customer relationship Finding customers, building relationships with them and keeping them as Chapter 1.4
business customers (p.22)
Product innovation Coming up with new product and service ideas and bringing them to Chapter 1.4
business market (p.22)
Infrastructure business Building and managing facilities for high volume, efficient transactions, Chapter 1.4
such as physical assets, systems, processes and logistics (p.22)
Vision A guiding concept that contains aspirations Chapter 1.4
(p.25)
Mission Reason for operating; how to achieve vision Chapter 1.4
(p.25)
Values Guiding principles that direct and prioritise goals Chapter 1.4
(p.25)
Goals Targets and outcomes needed to meet vision and mission Chapter 1.4
(p.25)
Business model A way of representing and communicating how an organisation creates Chapter 1.4
and delivers value and makes explicit the assumptions it is making and (p.27)
testing about the economic logic of the model
Customer value That helps customers perform a specific ‘job’ that alternative offerings Chapter 1.4
proposition don’t address (p.27)
Profit formula How value is generated through factors such as revenue model, cost Chapter 1.4
structure, margins, and inventory turnover (p.27)
Key resources and What costs are required with regard to people, technology, products, Chapter 1.4
processes facilities, equipment and brand to deliver the value proposition to the (p.27)
target customers
Business Model Canvas Chapter 1.4
Helps decision makers in organisations conduct structured, tangible, and (p.29)
strategic conversations to map existing or create new business models as
part of strategy development.
Globalisation Refers to international organisations with operations in many countries Chapter 1.5
that are integrated in some way through finance, production, marketing or (p.30)
sales activities, and can take the form of import/export businesses,
entering into licensing or franchising, joint venture arrangements with a
local organisation, strategic alliances and/or by operating a wholly owned
foreign subsidiary in the local market.
Leadership The skill of motivating, guiding, and empowering a team towards a socially Chapter 1.6
, responsible vision (p.37)
Leaders Have followers and are often not given formal titles but people follow Chapter 1.6
them because of their ideas, behaviours and influence (p.37)
Managers Have subordinates and are formally appointed as well as have power Chapter 1.6
allocated to them by the organisation and give directions that must be (p.37)
followed to help plan and organise the entity
Traits approach Based on the theory that leaders are born with particular qualities that will Chapter 1.6
produce patterns of behaviour to make them successful leaders over time (p.37)
Emotional intelligence Consists of sensitivity to employees’ feelings and views and the ability to Chapter 1.6
manage one’s own emotional reactions (p.37)
Behavioural approach Suggests that leaders can be trained, as opposed to the traits approach, Chapter 1.6
which assumes that leaders are born (p.37)
People/employee Skilled at or focused on strong interactions with people. These leaders are Chapter 1.6
orientation typically less concerned with the idea of catering to employees and more (p.37)
concerned with finding the step-by-step solution required to meet specific
goals.
Task orientation Focused on getting the necessary task completed in order to achieve a goal Chapter 1.6
(p.37)
Contingency approach Suggests matching leadership style to the situation between traits and Chapter 1.6
behavioural (p.38)
Country Club Manager Focuses on people’s needs, building relationships Chapter 1.6
(p.38)
Impoverished Manager Focuses on minimum effort to get work done Chapter 1.6
(p.38)
Team Manager Focuses on building commitments to shared purpose Chapter 1.6
(p.38)
Middle-of-the-road Focuses on balancing Chapter 1.6
manager (p.38)
Authority-obedience Focuses on efficiency of tasks and operations Chapter 1.6
manager (p.38)
Leadership process Involves: Chapter 1.6
Developing a vision for the organisation (p.38)
Aligning people with that vision through communication
Motivating people to action through empowerment and through
basic need fulfilment. The leadership process creates uncertainty
and change in the firm.
Management process Involves: Chapter 1.6
Planning and budgeting (p.38)
Organising and staffing
Controlling and problem solving
Strategic leadership Encompasses the vision, mission, strategy and structure of an organisation Chapter 1.6
(p.41)
Strategic leaders Ensure the organisation can change as appropriate to meet the changing Chapter 1.6
demands of customers and the marketplace (p.41)
Strategic thinking Relates to linking concepts to operational practices and being able to Chapter 1.6
understand and articulate the ‘big picture’ in terms of an organisation’s (p.42)
potential strategic directions and developments
Transformational They have the ability to transform and lead major change and are well Chapter 1.7
leaders suited to the start-up, growth and renewal stages of the organisational life (p.45)
cycle
Transactional leaders Are more concerned with maintenance of current activities and better Chapter 1.7
, suited to the maturity and decline stages of the organisational life cycle. (p.45)
Fine-tuning Minor change akin to continuous improvement Chapter 1.7
(p.48)
Modular transformation A major change but only for part of the organisation Chapter 1.7
(p.48)
Incremental adjustment Relatively minor change but has impacts across the whole organisation Chapter 1.7
(p.48)
Corporate Major change that impacts the whole organisation Chapter 1.7
transformation (p.48)
Collaborative style Involves significant participation from employees in important decisions Chapter 1.7
related to the future and organisational change will be implemented. This (p.48)
style of change management is appropriate when knowledge relevant to
the change is distributed throughout the organisation.
Consultative style Employees are consulted before implementing organisational change and Chapter 1.7
are involved in the process of goal setting related to their area of expertise. (p.48)
This style of change is appropriate when management has developed a
plan but there is value in getting perspectives and feedback from others in
the organisation
Directive style Involves limited participation from the employees in the decision-making Chapter 1.7
process and uses authority for important decisions related to the (p.48)
organisational change. This style is appropriate when knowledge is held
centrally within the organisation and benefits of discussion are limited to
the perspective of consultation or when the leadership is trying to change
the culture of an organisation.
Coercive style Forces organisational change on employees either by involving the outside Chapter 1.7
parties or involving the managers/executives in the process. This style is (p.48)
appropriate when an organisation is in crisis and has limited time and
resources. Top-down leadership has to make decisions in the short-term to
get through the immediate crisis, and often involved retrenchments and
downsizing
Directing An authoritarian style characterised by specific instructions and close Chapter 1.7
supervision (p.49)
Coaching While specific instructions and supervision are still provided, there are also Chapter 1.7
clear explanations of what is occurring, and suggestions offered by (p.49)
employees may be accepted; coaching is still regarded as being
authoritarian but takes tentative steps towards collaboration
Supporting Employee efforts are facilitated, and employees share decision-making Chapter 1.7
responsibility (p.49)
Delegating Responsibility for both decision making and problem solving is transferred Chapter 1.7
to employees (p.49)
Risktakers Often the founder of an organisation and their original vision makes the Chapter 1.7
firm what it is today. They are a good match with the start-up and growth (p.50)
phases of an organisation but may not be appropriate during maturity
Caretakers Help an organisation move from the growth phase into the maturity phase Chapter 1.7
(p.50)
Surgeons Ensure future success or to fight against current problems; they have an Chapter 1.7
ability to prune or sever parts of the organisation that, although they may (p.50)
once have been valuable, have become a hindrance
Undertakers When an organisation has approached the end of its life, it is time to Chapter 1.7
harvest or salvage what is viable and shut down the rest. This style is (p.50)
required to prevent prolonging losses
, Culture Includes group norms, shared perceptions, espoused values, and Chapter 1.7
consensus around goals and objectives. It includes the way people interact (p.50)
with each other, how they solve problems, and how they justify
themselves
Power distance Refers to the way in which power is distributed in society and in Chapter 1.7
organisations, and the extent to which the less powerful accept that it is (p.51)
distributed unequally (E.g. Asian employees generally accept greater
directive authority from senior managers and leaders)
Management By Managers must walk around with their eyes and their ears wide open Chapter 1.7
Walking Around because in every interaction, formal and informal, conversations and (p.52)
(MBWA) actions should reinforce the need for change, the value of the future
direction and the success that will result.
Command This is where decisions are made by leaders without consultation with Chapter 1.7
their team. (p.54)
Collaborative Decisions are made collaboratively with the team. This leadership style Chapter 1.7
allows the team to provide opinions, insight and knowledge before the (p.54)
leader makes a collective decision
Consensus This is a ‘majority rules’ style of leadership, where leaders and their teams Chapter 1.7
take a vote in order to determine a decision. (p.54)
Convenience This is essentially a delegation of decision making by the leader, whereby Chapter 1.7
they allocate a trusted team member to make the ultimate decision. (p.54)
Business ethics The study of the rules of conduct, basic values and ethical principles of an Chapter 1.7
organisation and its practices. (p.55)
Corporate social Organisations’ obligation to minimise their negative effects on society, and Chapter 1.7
responsibility (CSR) to account for their economic, social and environmental output (p.55)
Classical view of ethics Milton Friedman argued that the only social responsibility of an Chapter 1.7
organisation is to utilise its resources and engage in profit-maximising (p.55)
activities, as long as those activities are conducted without fraud or
deception
Socio-economic view The leaders of organisations have a responsibility to the society that Chapter 1.7
creates and sustains them which goes beyond the profit imperative to (p.56)
include protecting and improving society’s welfare
Module 2: Understanding the External Environment (p.70)
Industry The grouping of similar economic or commercial activities (E.g. The Chapter 2.1
clothing retail industry is made up of all organisations that manufacture (p.71)
and/or distribute clothing)
Market The grouping of all organisations and their buyers (E.g. The retail clothing Chapter 2.1
market consists of the providers, listed above, and the consumers of these (p.71)
products)
External environment Refers to factors external to the organisation that influence the Chapter 2.1
organisation’s strategy, including industries and markets, societal issues, (p.71)
technological changes, economic drivers, environmental issues, political
forces, laws, ethical considerations and a variety of other factors
Industry analysis A process that considers factors that affect both the growth and Chapter 2.1
profitability of an industry, which in turn will affect an industry’s level of (p.73)
competition
Business Intelligence New approaches to gathering information and when integrated into Chapter 2.1
(BI) decision making, (p.73)
Big data An all-encompassing term for the volume, velocity and variety of data with Chapter 2.1
the majority of this data coming from 3 sources: social data (E.g. Likes, (p.73)
comments, and shares), machine data (E.g. Scanners, logs and tracking)
Keyword Definition Page Reference
Module 1: An Introduction to Strategy and Leadership
Strategy Those decisions that have high medium-term to long-term impact on the Chapter 1.1
activities of the organisation, including analysis leading to the resourcing (p.3)
and implementation of those decisions, to create value for key
stakeholders and to outperform competitors.
The Rational Approach Based on a linear and mechanistic model, in which the conception and Chapter 1.2
to Strategy execution of strategy are treated as discrete, sequential activities (p.8)
Strategic Management An ongoing and dynamic process that requires constant monitoring and Chapter 1.2
adjustment (p.10)
Competitive advantage The ability of an organisation to outperform its competitors and make Chapter 1.3
more profits than its competitors do from an equivalent set of activities (p.12)
(E.g. Doing things in a different way)
Purpose Chapter 1.3
Extends the focus of the organisation across a network of connected (p.12)
interests and relationships
Customer profile Articulates customer understanding for specific customer segments in Chapter 1.3
terms of what the customer needs to get done, what is currently difficult (p.14)
or challenging for them (the pain points) and ways that pain could be
addressed to create value for that particular customer segment
Pains Describes obstacles that get in the way of jobs to be done Chapter 1.3
(p.14)
Gains Describes the outcomes customers are trying to achieve and the benefits Chapter 1.3
they are looking for (p.14)
Value map Articulates the ways an organisation describes how it will create value for Chapter 1.3
the customer by describing the products and services that will be offered, (p.14)
how they will address current pain points for customers and how they will
create value for customers
Pain relievers Describes how products and services could address customer pain points Chapter 1.3
(p.14)
Gain creators Describe how products and services could help customers achieve the Chapter 1.3
outcome and benefits they are looking for (p.14)
Productivity frontier An economic concept that represents the current level of best practice and Chapter 1.3
it is the curve where the most efficient performers in the industry are (p.16)
placed
Operational Relates to reducing costs in order to achieve better performance (e.g. Chapter 1.3
efficiency/effectiveness distribution company implementing GPS tracking and guidance equipment (p.16)
on their trucks)
Competitive strategy Attempts to transform the activities performed, so that they differ from Chapter 1.3
rivals or are completed in a different manner to standard practice in the (p.17)
market (E.g. Makes the company’s products completely unique)
Strategic fit Involves matching the organisation’s goals, values, assets and capabilities, Chapter 1.3
structures and systems to the external environment and market needs (p.17)
(E.g. Acquiring a competitor, extending a product line, relocating
production or divesting distribution)
Strategic stretch Resource-led and based on leaders and managers challenging how Chapter 1.3
organisational resources and capabilities can be leveraged (‘stretched’) to (p.17)
create new opportunities or competencies – Relates to competitive
strategy (E.g. Create products, reorganise resources – More risky and
, expensive but greater rewards
Valley of death Describes the period of time where a start-up has commenced operations Chapter 1.4
but is not yet generating revenue (p.19)
Capability Maturity Originally developed to assist in the development of software but it Chapter 1.4
Model (CMM) evolved to become a useful tool in describing the overall capability and (p.20)
maturity of an organisation according to 5 levels
Corporate strategy Embraces all a diversified organisation’s businesses and determines how Chapter 1.4
the scope of these businesses are managed and coordinated to contribute (p.21)
to corporate performance.
Business strategy For individual businesses or each area of business into which the Chapter 1.4
organisation has diversified (p.21)
Functional strategy Pertains to each of the functions in an organisation, such as marketing, Chapter 1.4
production and human resources, the strategies for which have to be (p.21)
consistent with the overall business and/or corporate strategy
Interaction costs Represent the money and time expended whenever people and companies Chapter 1.4
exchange goods, services, or ideas (p.22)
Customer relationship Finding customers, building relationships with them and keeping them as Chapter 1.4
business customers (p.22)
Product innovation Coming up with new product and service ideas and bringing them to Chapter 1.4
business market (p.22)
Infrastructure business Building and managing facilities for high volume, efficient transactions, Chapter 1.4
such as physical assets, systems, processes and logistics (p.22)
Vision A guiding concept that contains aspirations Chapter 1.4
(p.25)
Mission Reason for operating; how to achieve vision Chapter 1.4
(p.25)
Values Guiding principles that direct and prioritise goals Chapter 1.4
(p.25)
Goals Targets and outcomes needed to meet vision and mission Chapter 1.4
(p.25)
Business model A way of representing and communicating how an organisation creates Chapter 1.4
and delivers value and makes explicit the assumptions it is making and (p.27)
testing about the economic logic of the model
Customer value That helps customers perform a specific ‘job’ that alternative offerings Chapter 1.4
proposition don’t address (p.27)
Profit formula How value is generated through factors such as revenue model, cost Chapter 1.4
structure, margins, and inventory turnover (p.27)
Key resources and What costs are required with regard to people, technology, products, Chapter 1.4
processes facilities, equipment and brand to deliver the value proposition to the (p.27)
target customers
Business Model Canvas Chapter 1.4
Helps decision makers in organisations conduct structured, tangible, and (p.29)
strategic conversations to map existing or create new business models as
part of strategy development.
Globalisation Refers to international organisations with operations in many countries Chapter 1.5
that are integrated in some way through finance, production, marketing or (p.30)
sales activities, and can take the form of import/export businesses,
entering into licensing or franchising, joint venture arrangements with a
local organisation, strategic alliances and/or by operating a wholly owned
foreign subsidiary in the local market.
Leadership The skill of motivating, guiding, and empowering a team towards a socially Chapter 1.6
, responsible vision (p.37)
Leaders Have followers and are often not given formal titles but people follow Chapter 1.6
them because of their ideas, behaviours and influence (p.37)
Managers Have subordinates and are formally appointed as well as have power Chapter 1.6
allocated to them by the organisation and give directions that must be (p.37)
followed to help plan and organise the entity
Traits approach Based on the theory that leaders are born with particular qualities that will Chapter 1.6
produce patterns of behaviour to make them successful leaders over time (p.37)
Emotional intelligence Consists of sensitivity to employees’ feelings and views and the ability to Chapter 1.6
manage one’s own emotional reactions (p.37)
Behavioural approach Suggests that leaders can be trained, as opposed to the traits approach, Chapter 1.6
which assumes that leaders are born (p.37)
People/employee Skilled at or focused on strong interactions with people. These leaders are Chapter 1.6
orientation typically less concerned with the idea of catering to employees and more (p.37)
concerned with finding the step-by-step solution required to meet specific
goals.
Task orientation Focused on getting the necessary task completed in order to achieve a goal Chapter 1.6
(p.37)
Contingency approach Suggests matching leadership style to the situation between traits and Chapter 1.6
behavioural (p.38)
Country Club Manager Focuses on people’s needs, building relationships Chapter 1.6
(p.38)
Impoverished Manager Focuses on minimum effort to get work done Chapter 1.6
(p.38)
Team Manager Focuses on building commitments to shared purpose Chapter 1.6
(p.38)
Middle-of-the-road Focuses on balancing Chapter 1.6
manager (p.38)
Authority-obedience Focuses on efficiency of tasks and operations Chapter 1.6
manager (p.38)
Leadership process Involves: Chapter 1.6
Developing a vision for the organisation (p.38)
Aligning people with that vision through communication
Motivating people to action through empowerment and through
basic need fulfilment. The leadership process creates uncertainty
and change in the firm.
Management process Involves: Chapter 1.6
Planning and budgeting (p.38)
Organising and staffing
Controlling and problem solving
Strategic leadership Encompasses the vision, mission, strategy and structure of an organisation Chapter 1.6
(p.41)
Strategic leaders Ensure the organisation can change as appropriate to meet the changing Chapter 1.6
demands of customers and the marketplace (p.41)
Strategic thinking Relates to linking concepts to operational practices and being able to Chapter 1.6
understand and articulate the ‘big picture’ in terms of an organisation’s (p.42)
potential strategic directions and developments
Transformational They have the ability to transform and lead major change and are well Chapter 1.7
leaders suited to the start-up, growth and renewal stages of the organisational life (p.45)
cycle
Transactional leaders Are more concerned with maintenance of current activities and better Chapter 1.7
, suited to the maturity and decline stages of the organisational life cycle. (p.45)
Fine-tuning Minor change akin to continuous improvement Chapter 1.7
(p.48)
Modular transformation A major change but only for part of the organisation Chapter 1.7
(p.48)
Incremental adjustment Relatively minor change but has impacts across the whole organisation Chapter 1.7
(p.48)
Corporate Major change that impacts the whole organisation Chapter 1.7
transformation (p.48)
Collaborative style Involves significant participation from employees in important decisions Chapter 1.7
related to the future and organisational change will be implemented. This (p.48)
style of change management is appropriate when knowledge relevant to
the change is distributed throughout the organisation.
Consultative style Employees are consulted before implementing organisational change and Chapter 1.7
are involved in the process of goal setting related to their area of expertise. (p.48)
This style of change is appropriate when management has developed a
plan but there is value in getting perspectives and feedback from others in
the organisation
Directive style Involves limited participation from the employees in the decision-making Chapter 1.7
process and uses authority for important decisions related to the (p.48)
organisational change. This style is appropriate when knowledge is held
centrally within the organisation and benefits of discussion are limited to
the perspective of consultation or when the leadership is trying to change
the culture of an organisation.
Coercive style Forces organisational change on employees either by involving the outside Chapter 1.7
parties or involving the managers/executives in the process. This style is (p.48)
appropriate when an organisation is in crisis and has limited time and
resources. Top-down leadership has to make decisions in the short-term to
get through the immediate crisis, and often involved retrenchments and
downsizing
Directing An authoritarian style characterised by specific instructions and close Chapter 1.7
supervision (p.49)
Coaching While specific instructions and supervision are still provided, there are also Chapter 1.7
clear explanations of what is occurring, and suggestions offered by (p.49)
employees may be accepted; coaching is still regarded as being
authoritarian but takes tentative steps towards collaboration
Supporting Employee efforts are facilitated, and employees share decision-making Chapter 1.7
responsibility (p.49)
Delegating Responsibility for both decision making and problem solving is transferred Chapter 1.7
to employees (p.49)
Risktakers Often the founder of an organisation and their original vision makes the Chapter 1.7
firm what it is today. They are a good match with the start-up and growth (p.50)
phases of an organisation but may not be appropriate during maturity
Caretakers Help an organisation move from the growth phase into the maturity phase Chapter 1.7
(p.50)
Surgeons Ensure future success or to fight against current problems; they have an Chapter 1.7
ability to prune or sever parts of the organisation that, although they may (p.50)
once have been valuable, have become a hindrance
Undertakers When an organisation has approached the end of its life, it is time to Chapter 1.7
harvest or salvage what is viable and shut down the rest. This style is (p.50)
required to prevent prolonging losses
, Culture Includes group norms, shared perceptions, espoused values, and Chapter 1.7
consensus around goals and objectives. It includes the way people interact (p.50)
with each other, how they solve problems, and how they justify
themselves
Power distance Refers to the way in which power is distributed in society and in Chapter 1.7
organisations, and the extent to which the less powerful accept that it is (p.51)
distributed unequally (E.g. Asian employees generally accept greater
directive authority from senior managers and leaders)
Management By Managers must walk around with their eyes and their ears wide open Chapter 1.7
Walking Around because in every interaction, formal and informal, conversations and (p.52)
(MBWA) actions should reinforce the need for change, the value of the future
direction and the success that will result.
Command This is where decisions are made by leaders without consultation with Chapter 1.7
their team. (p.54)
Collaborative Decisions are made collaboratively with the team. This leadership style Chapter 1.7
allows the team to provide opinions, insight and knowledge before the (p.54)
leader makes a collective decision
Consensus This is a ‘majority rules’ style of leadership, where leaders and their teams Chapter 1.7
take a vote in order to determine a decision. (p.54)
Convenience This is essentially a delegation of decision making by the leader, whereby Chapter 1.7
they allocate a trusted team member to make the ultimate decision. (p.54)
Business ethics The study of the rules of conduct, basic values and ethical principles of an Chapter 1.7
organisation and its practices. (p.55)
Corporate social Organisations’ obligation to minimise their negative effects on society, and Chapter 1.7
responsibility (CSR) to account for their economic, social and environmental output (p.55)
Classical view of ethics Milton Friedman argued that the only social responsibility of an Chapter 1.7
organisation is to utilise its resources and engage in profit-maximising (p.55)
activities, as long as those activities are conducted without fraud or
deception
Socio-economic view The leaders of organisations have a responsibility to the society that Chapter 1.7
creates and sustains them which goes beyond the profit imperative to (p.56)
include protecting and improving society’s welfare
Module 2: Understanding the External Environment (p.70)
Industry The grouping of similar economic or commercial activities (E.g. The Chapter 2.1
clothing retail industry is made up of all organisations that manufacture (p.71)
and/or distribute clothing)
Market The grouping of all organisations and their buyers (E.g. The retail clothing Chapter 2.1
market consists of the providers, listed above, and the consumers of these (p.71)
products)
External environment Refers to factors external to the organisation that influence the Chapter 2.1
organisation’s strategy, including industries and markets, societal issues, (p.71)
technological changes, economic drivers, environmental issues, political
forces, laws, ethical considerations and a variety of other factors
Industry analysis A process that considers factors that affect both the growth and Chapter 2.1
profitability of an industry, which in turn will affect an industry’s level of (p.73)
competition
Business Intelligence New approaches to gathering information and when integrated into Chapter 2.1
(BI) decision making, (p.73)
Big data An all-encompassing term for the volume, velocity and variety of data with Chapter 2.1
the majority of this data coming from 3 sources: social data (E.g. Likes, (p.73)
comments, and shares), machine data (E.g. Scanners, logs and tracking)
