M6

• Set of related actions that managers take to increase their company's performance?

  Strategy
• Creating competitive advantage through effective management of the strategy-making process?

  Strategic Leadership
• Selecting strategies based on analysis of an organization's external and internal environment?

  Strategy Formulation
• Putting strategies into action?

  Strategy Implementation
• Is concerned with managing the strategy-making process to increase the performance of a company?

  Strategic Leadership
• To do this, a company must be able to outperform its rivals; it must have a?

  Competitive Advantage
• What is the ultimate goal of profit-making companies?

  Maximizing Shareholder Value
• Is capital that cannot be recovered if a company fails and goes bankrupt?

  Risk Capital
• Is the return that it makes on the capital invested in the enterprise?

  Profitability
• It is the result of how efficiently and effectively managers use the capital at their disposal to produce goods and services that satisfy customer needs?

  Profitability
• When the company's profitability is greater than the average profitability and profit growth of other companies competing for the same set of customers, it is said to have a?

  Competitive Advantage
• The higher its profitability relative to rivals, the greater its competitive advantage will be.
• When the company's strategies enable it to maintain above average profitability for a number of years, it is said to have a?

  Sustained Competitive Advantage
• Is managers' conception of how the set of strategies their company pursues should work together as a congruent whole, enabling the company to gain a competitive advantage and achieve superior profitability and profit growth?

  Business Model
• Must lead the strategy making process?

  Managers
• What are the two primary types of managers?

  General Managers, Functional Managers
• Who bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions?

  General Managers
• Who are responsible for supervising a particular function, that is, a task, activity, or operation, such as accounting, marketing, research and development (R&D), information technology, or logistics?

  Functional Managers
• What are the three main levels of management?

  Corporate, Business, Functional
• Occupy the apex of decision making within the organization?

  Corporate Level of Management (Corporate-Level Managers)
• It consists of the chief executive officer (CEO), other senior executives, corporate staff?

  Corporate Level of Management (Corporate-Level Managers)
• Is the principal general manager?

  Chief Executive Officer (CEO)
• Their role is to oversee the development of strategies for the whole organization?

  Corporate-Level Managers
• Is a self-contained division (with its own functions—e.g., finance, purchasing, production, and marketing departments) that provides a product or service for a particular market?

  Business Unit
• Is the head of the division at the business level?

  Principal General Manager (Business-Level Manager)
• Are responsible for the specific business functions or operations (human resources, purchasing, product development, customer service, etc.) that constitute a company or one of its divisions?

  Functional-Level Managers