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51 Cards in this Set
- Front
- Back
S1: Strategy - The means by which individuals or orgs achieve their ____. |
objectives |
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S1: Corporate Strategy = ______ to compete |
where |
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S1: Business Strategy = ______ to compete |
how |
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S1: _____ = strategy as conceived of by the top mgmt team |
Intended strategy
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S1: _____ = the actual strategy that is implemented |
realized strategy |
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S1: _________ = decisions that emerge from the complex process in which managers interp the intended strategy and adapt to changing external circumstances. |
emergent strategy |
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S1: ______ = organization as a coalition of interest groupswhere top management’s role to balance these different (oftenconflicting) interest. |
Stakeholder approach |
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S1: _______ is a link between the firm and its external environment |
Strategy |
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S2: Motivations for engaging in CSR: ______ perspective. Right or wrong, ethical consideration. |
Normative |
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S2: Motivations for engaging in CSR: ______ perspective. CSR is a tool to achieve expected outcomes principally profitability.
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Instrumental |
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S2: ______: Equity holder of a firm |
Shareholder |
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________: Individuals groups and orgs who are affected by a firm's performance and who have claims on its performance. |
Stakeholder(s) |
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S2: Firm as a ______ or _______ view. |
Property | Social Entity |
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S2: Firm as a Property View |
Profitability |
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S2: Firm as a Social EntityView Emphasis is on _____ Assumption is ______ |
Responsibility Stakeholder Symbiosis |
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S2: _______: Assessment of a firms ___, _____ and _____ |
Triple Bottom Line: financial, social and environmental |
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S2: Does every stakeholder have the same level of influence? |
no |
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S2: 3 groups of stakeholders ___: Firms emps, including both non managerial and managerial personnel |
Capital market stakeholders Project market stakeholders Organizational stakeholders |
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S2: _____: Must be made in situations where theobjectives of various stakeholder groups differ orconflict. |
Trade-off |
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S2: _______ is the most critical criterion inprioritizing stakeholders. |
Power |
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S3: A Firms is a ______ of _______ |
Nexus contracts |
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S3: After a shareholder purchases stock they become _____ claimants |
residual |
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S3: Corporate Governance Agents ________ |
Shareholders, BOD, Managers |
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__________ deals with the relationship between Shareholders (_____) and Executives (_____) . |
Agency theory. Principals. Agents. |
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_________ One pary to a transactio has more or better info than the other -> source of agency costs |
Information Asymmetry |
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How agency problems occur. _______: By limited ability of shareholders to precisely determine thecompetencies and priorities of executives at the time they arehired |
Adverse selection |
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How agency problems occur. _______: Because owners have limited access to company information,making executives free to pursue their own interests. |
Moral Hazard |
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_______________: Seeking self-interest with guile (i.e. cunning or deceit) |
Managerial Opportunism |
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Principals establish governance and controlmechanisms to prevent________________________ |
agents from acting opportunistically. |
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Internal Governance Mechanisms: |
( Ownership Concentration) |
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Internal Governance Mechanisms: ____________ Group of shareholder-elected individuals (usually called‘directors’) whose primary responsibility is to act in the owners’interests by formally monitoring and controlling thecorporation’s top-level executives |
(Board of Directors) |
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Internal Governance Mechanisms: ____________ Use of salary, bonuses, and long-term incentives to alignmanagers’ interests with shareholders’ interests |
(Executive Compensation) |
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External Governance Mechanisms: ____________ This market is a set of potential owners seeking to acquireundervalued firms and earn above-average returns on theirinvestments by replacing ineffective top-level managementteams. |
(Market for Corporate Control) |
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Large block shareholders: shareholdersowning a concentration of at least ______ ofa corporation’s issued shares |
5% |
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Large block shareholders have a strong___ and ___to monitormanagement closely |
incentive and capacity |
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Shareholders can convene to discusscorporation’s directionIf a consensus exists, shareholders canvote as a block to elect their candidates tothe board |
Shareholder Activism |
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Three Director Classifications (____): the firm’s CEO and other top-level managers(______): individualsuninvolved with day-to-day operations,but who have a relationship with the firm(________): individuals who areindependent of the firm’s day-to-dayoperations and other relationshipsHistorically, BOD dominated by insidersbefore SOX (Sarbanes-Oxley Act) |
Insiders Related Outsiders Outsiders |
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PEST Analysis: P = ? etc |
Political Economic Social Technological |
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Porters 5 Forces Model |
Suppliers, Potential Entrants, Substitutes, Buyers, Industry Rivalty |
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________: spreading of the costs ofproduction over the number of units produced. |
Economies of Scale |
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_______ one-time costs customers incur whenthey buy from a different supplier |
Switching Costs |
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______: combined market share of the four largest producers |
CR4 (Concentration Ratio) |
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_____________: A set of firms emphasizing similar strategic dimensionsand using similar strategies; |
(Strategic Groups) |
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___ are group-specific entry barriers thatrestrict shifting strategic position from one strategicgroup to another |
Mobility Barriers |
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__A___ and _B___ are the primarysources of profitability. A : productive assets (tangible & intangible) owned bythe firm |
Resources: Capabilities: |
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____ Financial resources and physical assets are identifiedand valued in the firm’s financial statement |
Tangible resources |
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____ Expertise and effort offered by employees |
Human resources |
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_____ - Firm’s capacity to deploy resources for a desired endresult |
Organizational capabilities |
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Activities to produce products and then sell, distribute,and service those products in ways that create value forcustomers |
Primary Activities |
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Activities to support the work being done to produce,sell, distribute, and service the products the firm isproducing |
Support Activities |
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When these four criteria are met, resources andcapabilities become core competencies: ___, ____, _____, ______ |
Valuable, rare, nonsubstitutable, costly to imitate |