MGT 247 Chapter 2: CHAPTER 2.docx
Document Summary
Chapter 2: leading strategically: strategic leadership, establishing vision and mission, developing the management team and succession. Top management team=group of managers charged with the responsibility of developing and implementing the firms strategies. Develop people who can succeed them: managing the resource portfolio. Human capitol= knowledge and skills of those working in the firm. Social capitol= all internal and external relationships that help the firm provide value to customers and ultimately to its other stakeholders: building entrepreneurial culture. Encourages employees to identify and exploit new opportunities: promoting integrity and ethical behavior. Related-party transactions= paying a person who has a relations with the firm, extra money for reasons other than their normal activities on the firms behalf: using effective controls. Financial controls= focus on shorter term financial outcomes: generating sales revenue, maintaining expenses, remaining financially solvent, generate profit. Strategic controls= focus on the content of strategic actions rather than on their outcomes.
