Week 12 Terms


  1. Situational Analysis (SWOT)
  2. Diversification
  3. Portfolio Strategy
  4. Acquisition
  5. Unrelated Diversification
  6. Matrix BCG Matrix - Star, Question Mark, Cash Cow, Dog
  7. Related Diversification
  8. Grand Strategy
  9. Cost Leadership
  10. Differentiation
  11. Focus Strategy
  12. Strategies Adaptive Strategies: Defenders, Prospectors, Analyzers. Reactors
  13. Firm-Level Strategy
  14. Organizational Structure
  15. Departmentalization - Functional, Produce, Customer, Geographic
  16. Matrix Departmentalization - Simple, Complex
  17. Authority
  18. Chain Of Command Or Unity Of Command
  19. Line Authority, Line Function
  20. Staff Authority, Staff Function
  21. Delegaiton Of Authority
  22. Decentralization And (Or Vs.) Decentralization
  23. Standardization
  24. Design Job Design, Job Specialization, Job Rotation, Job Enlargement And/Or Job Enrichment
  25. Job Characteristics Model
  26. Core Job Characteristics: Skill Variety, Task Identity, Task Significance, Autonomy, Feedback
  27. Mechanistic Organization
  28. Organic Organizations
  29. Intranets
  30. Virtual Organizations

Situational Analysis (SWOT)

“It [Michael E. Porter’s Competitive Strategy and Competitive Advantage models] is designed as a self-assessing diagnostic instrument, to be used by itself or as part of a broad SWOT competitive analysis”(Lussier & Baeder, 1994).

Lussier, R. & Baeder, R. (1994). Measuring global practices: Global strategic planning through company situational analysis. Business Horizons. 37(5) p 56. Retrieved on October 28, 2008 from http://web.ebscohost.com.ezproxy.liberty.edu:2048/ehost/pdf?vid=15&hid=120&sid=716e175d-d14b-4796-94fe-6eaef6280f99%40sessionmgr107


“Diversification is a major draw for global real estate securities, "The advantages of investing in global property stocks are similar to those of investing in U.S. property stocks, with some added benefits," says John Robertson” (Crow, 2008).

Crowe, S. (2008). Global reits add diversification to portfolios. Financial Planning. 38(10) p14-16. Retrieved on October 28, 2008 from http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdf?vid=3&hid=116&sid=cd7e0676-9bbf-4d38-9c3b-b47c33277011%40sessionmgr107

Portfolio Strategy

“We study a pure alpha strategy, more precisely a portfolio strategy not related to the market risk and delivering abnormal returns. We focus on a long–short market neutral value strategy6 based on low price-to-earnings ratios (P/E)” (Caicedo-Llano & Dionusopoulos, 2007)

Caicedo-Llano, J. & Dionusopoulos, T. (2007). Market integration: A risk-budgeting guide for pure alpha investors. Edhec Business School, University of Paris. Retrieved from October 28, 2008 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science?_ob=ArticleURL&_udi=B6VGV-4RKTNC2-2&_user=5301161&_coverDate=10%2F31%2F2008&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_version=1&_urlVersion=0&_userid=5301161&md5=2fc6760c642a21339f1e2f713024c1cd


"We recommend a seven-step process that will help balance the needs of the business during an acquisition…Begin planning; Evaluate personnel in finance and accounting functions; Safeguard the assets of the business; Ensure adequacy of financial controls; Review information technology systems; Integrate financial and management accounting; Assess progress, and perform post-integration analysis." (Tarasovich, Lyons, Gerlach, 2008, p.26)

Tarasovich, B., Lyons, B. & Gerlach, J. (2008). After the acquisition. Strategic Finance. 90(4), 25-31. Retrieved October 31, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=34585348&site=bsi-live

Unrelated Diversification

"The second rationale is the agency theory argument. According to this argument, with separation of ownership and control, divergence of interests between top managers and owners and the existence of information asymmetry would create necessary conditions for top managers to pursue unrelated diversification strategies that depress firm performance.” (Unknown author, 2003, p.245)

Unknown Author. (2003). Diversification and economic performance: An empirical assessment of Chinese firms. Asia Pacific Journal of Management. 20(2), 243-265. Retrieved October 31, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=11197759&site=bsi-live.

BCG Matrix - Star, Question Mark, Cash Cow, Dog

"The BCG model assumes there is a close association between sales volume and cash flow. This is one of the great truisms of strategic management theory, also backed by the profit impact of market strategy… The BCG [matrix] has as its dimensions market share and market growth rate. Each is broken into high and low." (Peters, 1993, p. 49)

Peter, J. (1993). On product and service management. Management Decision. 31(6), 49-51. Retrieved October 31, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=9411110828&site=bsi-live

Related Diversification

“Related diversification tends to be favored slightly by both theories and empirical observations. To classify samples into related and unrelated diversifications, four qualitative diversification schemes were operationalized: geographic expansion, increase of market share, vertical integration, and the conglomerate type of diversification.” (Choi & Russell, 2004, p. 523)

Choi, J. & Russell, J. S. (2004). Economic gains around mergers and acquisitions in the construction industry of the United States of America. Canadian Journal of Civil Engineering 31(3), 513-525. Retrieved October 27, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=a9h&AN=13597850&site=ehost-live&scope=site

Grand Strategy

“In business administration, by analogy, Grand Strategy is the choice of a category of actions leading to a company’s success. This choice having been made, the usual, or logical, strategy will follow for detailing these actions.” (Pereira, 2006, p. 3)

Pereira, G. S. R. (2006). Grand strategy in business organizations. BSP Review, 1-28. Retrieved October 27, 2008, from http://www.revistabsp.com.br/0608/artigo1en.pdf

Cost Leadership

“Low cost producers typically sell a standard, or no frills, product and place considerable emphasis on reaping scale or absolute cost advantages from all sources. If a firm can achieve and sustain overall cost leadership, then it will be above an average performer in its industry provided it can command prices at or near the industry average. (Porter, 1985)” (Alamdari & Fagan, 2005, p. 380)

Alamdari, F. & Fagan, S. (2005). Impact of the adherence to the original low-cost model on the profitability of low-cost airlines. Transport Reviews 25(3), 377-392. Retrieved October 27, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=a9h&AN=16670064&site=ehost-live&scope=site


“A differentiation strategy is an attempt to create value that consumers perceive as unique, thus enabling the firm to build customer loyalty and command premium prices that exceed the extra costs associated with the strategy” (Li & Li, 2008, p. 3).

Li, C. & Li J. (2008). Achieving superior financial performance in china: Differentiation, cost leadership, or both? Journal of International Marketing, 16(3), 1-22. Retrieved October 31, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=34017702&site=ehost-live&scope=site

Focus Strategy

“Our results exhibit strong variations in corporate focus profiles that appear both across countries, firms and over time. This difference in focus strategies seems to be affecting both the return and risk of the property companies in our sample” (Boer, Brounen, & Opt’d Veld, 2005, p. 280).

Boer, D., Brounen, D., & Opt’d Veld, H. (2005). Corporate focus and stock performance international evidence from listed property markets. Journal of Real Estate Finance & Economics, 31(3), 263-281. Retrieved November 1, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=18188678&site=ehost-live&scope=site

Adaptive Strategies: Defenders, Prospectors, Analyzers. Reactors

“[Multi-national enterprises] use nonequity-entry modes or joint ventures as an adaptive strategy to participate in markets despite the presence of corruption” (Uhlenbruck, Rodriguez, Doh, & Eden, 2006, p. 403).

Uhlenbruck, K., Rodriguez, P., Doh, J., & Eden, L. (2006). The impact of corruption on entry strategy: Evidence from telecommunication projects in emerging economies. Organization Science, 17(3), 402-414. Retrieved November 1, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=20949107&site=ehost-live&scope=site

Firm-Level Strategy

“Qualitative new trends in achieving cost savings in pattern of volatile global market which creates opportunity to take advantage of innovative approach towards management of the supply chain. The new strategies, derived from particular management sections are coupled and compounded to achieve substantial benefit in supply process.” (Snieska, 2008, p694)

Snieška, V., & Drakšaitė, A. (2008, August). ADVANCED COST SAVING STRATEGIES OF SUPPLY CHAIN MANAGEMENT IN GLOBAL MARKET. Economics & Management, Retrieved October 31, 2008, from http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdf?vid=11&hid=114&sid=5bf2bd37-1cb9-4e9a-b214-9d45c03e2ccf%40sessionmgr104

Organizational Structure

“While studying the organizational relationship and cooperation with its stakeholders there is a necessity to analyze its capacity to generate wealth. Sveiby has developed a conception of organizational wealth that combines the value of tangibles assets and intangible elements to determine the total value of an organization.” (Susniene, 2008, p168)

Susnienė, D. (2008, August 15). SYNERGY AND STRATEGIC VALUE OF ORGANIZATION - STAKEHOLDER RELATIONSHIPS. Economics & Management, Retrieved October 31, 2008, from http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdf?vid=16&hid=114&sid=5bf2bd37-1cb9-4e9a-b214-9d45c03e2ccf%40sessionmgr104

Departmentalization - Functional, Produce, Customer, Geographic

“Focuses on changes in the design of offices. Refining of office space and furnishings to integrate information technologies; De-departmentalization; Decline and fall of the management elite; Virtual organization; Globalized, multicultural work environments.” (Gunn, p19)

Gunn, R., & Burroughs, M.. Work spaces that work: Designing high-performance offices. Futurist, 30(2), 19. Retrieved November 1, 2008, from http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdf?vid=20&hid=114&sid=5bf2bd37-1cb9-4e9a-b214-9d45c03e2ccf%40sessionmgr104

Matrix Departmentalization - Simple, Complex


“Whenever there is more than one means to accomplish a given end, the exercise of authority is the indispensable principle of united action. The need for the authority arises out of the plurality of means.” (Albanese, 1966, pp. 142-143)

Albanese, R. (1966) Substitutional and essential authority. Academy of management journal 9(2), 136-144. October 30, 2008, from http://www.liberty.edu:2048/login?url=http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=4297414&site=ehost-live&scope=site

Chain Of Command Or Unity Of Command

“…If you choose to ignore your customers because you are ball-and-chained to a chain of command process, or if you simply choose to not deviate from your daily routines, you will probably be richly rewarded with fewer customers and declining profits.” (Hall, 2007, p. 38)

Hall, J. R. (2007) When is chain of command unacceptable? Air conditioning heating & refrigeration news 231(6), p. 38. Retrieved October 30, 2008, from http://www.liberty.edu:2048/login?url=http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=25818801&site=ehost-live&scope=site

Line Authority, Line Function

Staff Authority, Staff Function

Delegaiton Of Authority

Decentralization And (Or Vs.) Decentralization

“The literature on fiscal federalism has amply discussed both the potential efficiency and welfare gains from decentralization and the potential trade-offs between decentralization and income redistribution. By contrast, it has generally put less emphasis on the effects of decentralization on macroeconomic management, although policymakers worldwide increasingly have to grapple with these effects.” (Ter-Minassian, 1997. p. 1)

Minassian, T. (1997). Decentralization and macroeconomic management. P. 1. Retrieved November 1, 2008, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=882734


“To minimize the inherent problems of standardization, standards should be minimal. That is, they should provide a sufficient level of standardization to meet the goals but no more. Simple, minimal standards are also easier to adopt to future innovation.” (Casanave, 2004, p. 13)

Casanave, C. (2004). Business-object architectures and standards. P.1-22. Retrieved November 1, 2008, from http://jeffsutherland.com/oopsla/casanpub.pdf

Job Design, Job Specialization, Job Rotation, Job Enlargement And/Or Job Enrichment

“Finally, firms can make full use of a skilled and motivated workforce by promoting job designs which provide enriched jobs for employees in terms of variety, skill flexibility and increased autonomy, whereby employees have responsibility for such activities as problem solving, maintenance, scheduling and quality assurance.” (Patterson, 1997, p. 25)

Patterson, M. (1997). Impact of people management practices on business performance. Issues in People Management. p. 22. Retrieved November 1, 2008, from, http://www.cipd.co.uk/NR/rdonlyres/75D39FB0-061E-4983-B681-FB1E0C43CB96/0/ImpactofPeoplMgmntinBusPerf.pdf

Job Characteristics Model

“The Team Characteristics Model was generally supported for the critical psychological states but generally not supported for work outcomes.”(Stubbler & York, 2007, p. 671)

Stubbler, D., York, K. (2007). An exploratory study of team characteristics model using organizational teams. Small Group Research 38(6), 670-695. Retrieved November 1, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=27690566&site=ehost-live&scope=site

Core Job Characteristics: Skill Variety, Task Identity, Task Significance, Autonomy, Feedback

skill variety, task identity, task significance, autonomy, feedback-“The core job characteristics model of intrinsic job motivation, comprises seven main areas: skill variety, task identity, task significance, autonomy, feedback from the job, feedback from others, and dealing with others.”(Stantont & Ashleight, 2003, p.1218)

Stantont, N., Ashleight, M., Roberts, A., Francis, X. (2003). Virtuality in human supervisory control: Assessing the effects of psychological and social remoteness. Ergonomics 46(12), 1215-1223. Retreived November 1, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=10626432&site=ehost-live&scope=site

Mechanistic Organization

“Years ago. Bums and Stalker (1994. p. xxiii) found that people in mechanistic organizations could not reorganize, despite pressures of unstable environments, because "the orthodox bureaucratic system … was seen as the only possible mode of organization …"(Dougherty, 2001, p. 616)

Dougherty, D., (2001). Reimagining the differentiation and integration of work for sustained product innovation. Organization Science 12(5), 612-621. Retreived November 1, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=5651647&site=ehost-live&scope=site

Organic Organizations

“Organic organizations are characterized by a contributive nature of special knowledge and experience to the common task of the concern, flexible task performance, a spread of commitment to the concern, a network structure of control, authority and communication and a lateral rather than a vertical direction of communication (Burns & Stalker, 2001, p.120,121).” (Sollund, 2006, pg. 289)

Sollund, R. (2006). Mechanistic versus organic organizations' impact on immigrant women's work satisfaction and occupational mobility. Scandinavian Journal of Hospitality & Tourism 6(4), 287-307. Retrieved November 1, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=24925280&site=ehost-live&scope=site


“At BD Diagnostics in Sparks, Md., a unit of the BD global medical technology company, HR staff members use the intranet for information sharing among widely separated locations. Using the intranet's collaboration software, staff members can post and share PowerPoint presentations, white papers and other documents.” (Taylor, 2008, pg. 104)

Taylor, J. (2008). Improving intranet usefulness. HRMagazine 53(4), 103-106. Retieved November 1, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=31726015&site=ehost-live&scope=site

Virtual Organizations

“Electronic communications are fundamental to the virtual organization that depends heavily on e-mail. The virtual corporation includes independent companies that share skills and resources to achieve common goals. They provide the advantage of worldwide access to resources to solve work-specific problems and to provide products or services.” (Byrd & Gulbro, 1998, pg. 14)

Byrd, K. & Gulbro, R. (1998). E-mail and the organization of tomorrow. Ivey Business Journal 63(1), 14. Retrieved November 1, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=1199379&site=ehost-live&scope=site

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