| action plans | Plans that specify with precision how strategies will be put into effect.
|
 |
|
|
| availability error | Arises from our predisposition to estimate the probability of an outcome based on how easy the outcome is to imagine.
|
|
|
|
| bounded rationality | Limits in human ability to formulate complex problems, to gather and process the information necessary for solving those problems, and thus to solve those problems in a rational way.
|
|
|
|
| business-level strategy | Strategy concerned with deciding how a firm should compete in the industries in which it has elected to participate.
|
|
|
|
| cognitive biases | Decision-making errors that we are all prone to making and that have been repeatedly verified in laboratory settings or controlled experiments with human decision makers.
|
|
|
|
| contingency plans | Plans formulated to address specific possible future events that might have a significant impact on the organization.
|
|
|
|
| corporate-level strategy | Strategy concerned with deciding which industries a firm should compete in and how the firm should enter or exit industries.
|
|
|
|
| crisis management plan | Plan formulated specifically to deal with possible future crises.
|
|
|
|
| decision heuristics | Simple rules of thumb.
|
|
|
|
| devil's advocacy | The generation of both a plan and a critical analysis of the plan by a devil's advocate.
|
|
|
|
| dialectic inquiry | The generation of a plan (a thesis) and a counterplan (an antithesis) that reflect plausible but conflicting courses of action.
|
|
|
|
| 80–20 rule | A heuristic stating that 80 percent of the consequences of a phenomenon stem from 20 percent of the causes.
|
|
|
|
| escalating commitment | Arises when decision makers, having already committed significant resources to a project, commit even more resources if they receive feedback that the project is failing.
|
|
|
|
| framing bias | Bias arising from how a problem or decision is framed.
|
|
|
|
| goal | A desired future state that an organization attempts to realize.
|
|
|
|
| groupthink | Arises when a group of decision makers embarks on a course of action without questioning underlying assumptions.
|
|
|
|
| illusion of control | The tendency to overestimate one's ability to control events.
|
|
|
|
| mission | The purpose of an organization.
|
|
|
|
| operating plans | Plans that specify goals, actions, and responsibility for individual functions.
|
|
|
|
| operating strategy | Strategy concerned with the actions that should be taken at the level of individual functions, such as production, logistic, R&D, and sales, to support business-level strategy.
|
|
|
|
| outside view | Identifying a reference class of analogous past strategic initiatives, determining whether those initiatives succeeded or failed, and evaluating a project at hand against those prior initiatives.
|
|
|
|
| planning | A process whereby managers select goals, choose actions (strategies) to attain those goals, allocate responsibility for implementing actions to specific individuals or units, measure the success of actions by comparing actual results against the goals, and revise plans accordingly.
|
|
|
|
| planning horizon | How far out a plan is meant to apply.
|
|
|
|
| prior hypothesis bias | Decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of these beliefs, even when presented with evidence that their beliefs are wrong.
|
|
|
|
| reasoning by analogy | The use of simple analogies to make sense out of complex problems.
|
|
|
|
| representativeness | Generalizing from a small sample or even a single vivid anecdote.
|
|
|
|
| satisfice | Aiming for a satisfactory level of a particular performance variable rather than its theoretical maximum.
|
|
|
|
| scenario planning | Plans that are based on "what if " scenarios about the future.
|
|
|
|
| single-use plans | Plans that address unique events that do not reoccur.
|
|
|
|
| standing plans | Plans used to handle events that reoccur frequently.
|
|
|
|
| strategic plan | A plan that outlines the major goals of an organization and the organizationwide strategies for attaining those goals.
|
|
|
|
| strategy implementation | Putting action plans into effect.
|
|
|
|
| tactical plans | The actions managers adopt over the short to medium term to deal with a specific opportunity or threat that has emerged.
|
|
|
|
| unit plans | Plans for departments within functions, work teams, or individuals.
|
|
|
|
| values | Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations; the philosophical priorities to which managers are committed.
|
|
|
|
| vision | A desired future state.
|