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12 Cost-leadership strategy is to create a

competitive advantage by reducing firms


Strategy Implementation concerns the
organizations, coordination, and integration of Differentiation strategy is to create a
how works gets done. competitive advantage by offering products or
services
Organization design is the process of creating,
implementing, monitoring and modifying the Integration strategy requires reconciliation of
structure. the trade-offs between differentiation and low
cost.
Specialization describes the degree to which a
task into separate jobs that is the division of 13
labor.
Innovation is a powerful driver in the
Formalization Captures the extent to which competitive process. Redefine the marketplace
employee behavior is controlled by explicit and
Consciousness knows the strategy and believes
codified rules and procedures.
they can play a part in achieving it
Centralization degree to which decision making
Multiplicity teams and group contain a wide
is concentrated at the top of the organization.
and creative mix
Decentralized organization decisions are made
Invention describes the discovery of new
and problems are solved by empowered lower-
product, process, or idea.
level
Industry life cycle four distinct stages
Hierarchy Position-based reporting lines and
this stipulates who reports to whom. Entrepreneurship describes the process by
which people undertake economic risk.
Mechanistic organization are characterized by a
high degree of specialization and formalization, Entrepreneurs Innovate by commercializing
and a tall hierarchy that relies on centralized ideas and inventions
decision making
Strategic entrepreneurship describes pursuit of
Organic organization is an organization form innovation from strategic management.
characterized by a low degree specialization and
formalization Incremental innovation squarely builds on the
firm’s established knowledge base
Simple structure is used by small firms with low
organization complexity. Radical innovation draws novel methods or
materials
Functional structure employees into distinct
functional areas based on domain expertise. Architectural innovation where a new product
which known component, based on existing
Multidivisional structure into different product technologies
lines and geographies
Discontinuities periods of time in which the
Implementation is a critical step in putting a underlying technological standards changes.
planned action into effect.
Paradigm shift a situation in which a new tech
Functional structure allows for a higher degree revolutionizes and existing industry
of specialization and thus deeper domain
expertise
Hypercompetition is a situation in which
competitive intensity has increased

14

Strategic leadership refers to behavior and


styles of executives that influence other to
achieve organizational goals. Executives who
have overall responsibility for the performance

Active inertia occurs when managers respond


disruptive change by repeating and usually
accelerating activities

Goals setting goals for both overall coaching


relationship

Reality exploring current position of the learner

Options generating strategies

Will/what deciding what is to be done

Trust is fundamental because

Emotional intelligence is the ability to


understand your own emotions

Seven habits of highly effective people, by


Stephen covey

Interpersonal role acts figurehead, liaison and


leader

Informational role acts as monitor,


disseminator, and spokesperson

Decisional role acts as entrepreneur,


disturbance handler, resource allocator and
negotiator.

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