Which concept refers to a mismatch between a company’s intended strategy and the actions taken by managers?

Prepare for the Management and Organization Module 6 (06-MGMT-ORG) – Strategy Exam. Engage with flashcards, multiple choice questions, hints, and explanations. Excel in your exam!

The concept that refers to a mismatch between a company’s intended strategy and the actions taken by managers is known as strategic dissonance. This phenomenon occurs when there is a disconnect between the strategic plan that leadership has established and the actual operational decisions and implementations carried out by managers within the organization. Such dissonance can arise from various factors, including communication breakdowns, differing priorities at various levels of management, or a lack of resources to enact strategies effectively.

When strategic dissonance is present, it can lead to inefficiencies and reduced competitive performance, as the organization may fail to achieve its objectives and goals due to this misalignment. Recognizing and addressing strategic dissonance is crucial for ensuring that daily operations and managerial actions are aligned with the broader strategic vision of the company.

In contrast, terms such as strategic advantage might refer to benefits gained through superior strategies, competitive inertia refers to a tendency for companies to stick to the same approaches regardless of market conditions, and alliance strategy deals with cooperative agreements between firms. Each of these concepts has its own focus and implications, but none encapsulate the idea of misalignment between intended strategies and managerial actions as succinctly as strategic dissonance does.

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