Strategic And International Management at Universität Mannheim

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Human preferences are

Unstable
Contradictory
Endogenous

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Cognitive dissonance

Need to ensure that cognitions and behaviors are consistent
Focus only on supportive information

What to do:

Get all information
Accept you’re not perfect

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Laggards

Older, traditional, less capable
Lowest financial and opinion building status
Isolated in network

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The experience curve

Estimate of the proportion by which unit costs fall as volume of production increases

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Empirical evidence on “Superstar CEOs”

Exhibit performance decline after becoming superstar
Receive increased compensation
Write more books and have lower golf-handcaps
Are more likely to manage earnings

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CEO cognitive dissonance

When CEOs are confronted with inconsistent cognitive elements

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LEADING

Motivate, coordinate and energize to work together and achieve goals

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Early majority

Average social status
Well connected
Average opinion building forces

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Brands, company image and reputational assets

Brand names and buyer loyalty
Company image, reputation, service, reliability
Reputation with suppliers and partners for fair dealing

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Demographics

Size
Growth rate
Age distribution
Geographic distribution
Income distribution
Trends

Of the population

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CEO narcissism

Desire for “narcissistic supply”: striving for fame, applause, and external recognition of (subjective) superiority

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Habit

Link between a stimulus and a response
Involuntary mode of behavior

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Strategic and International Management at Universität Mannheim

Flashcards and summaries for Strategic and International Management at the Universität Mannheim

Study with flashcards and summaries for the course Strategic and International Management at the Universität Mannheim

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