Management 3

Strategic management

is a systematic, comprehensive process of analyzing the company's external and internal environments, identifying strengths, weaknesses, opportunities, and threats, constructing a strategy to implement, execute, then monitor and evaluate results

Effective Strategy

A strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals.

operational plan

The section of the business plan that includes all processes involved in producing and/or delivering the product or service to the customer.

Business-Level Strategy

The set of strategic alternatives from which an organizations chooses as it conducts business in a particular industry or market.

Corporate-Level Strategy

The set of strategic alternatives from which an organizations chooses as it manages its operations simultaneously across several industries and several markets

Related diversification

an organization under one ownership operates several businesses that are related to one another

Product life cycle

A model that portrays how sales volume for products changes over the life of products

Organizational weakness

A skill or capability that does not enable an organization to choose and implement strategies that support its mission

Organizational Strength

A skill or capability that enables an organization to conceive of and implement its strategies.

differentiation strategy

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

Overall cost leadership strategy

A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms.

Focus strategy

A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers in combination with its pursuit of either an overall cost leadership or differentiation strategy.

Single-product strategy

A strategy in which an organization manufactures just one product or service and sells it in a single geographic market

Strategy

A comprehensive plan accomplishing an organization's goals

Strategic plan

A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals.

Operational Goal

A goal set by and for the lower-levels managers of an organization

Tactical Goal

A goal set by and for the middle managers of the organization

Strategic Goal

A goal set by and for top management of the organization

Organizational threat

An area in the environment that increases the difficulty of an organization achieving high performance.

Organizational opportunity

An area in the environment that, if exploited, may generate higher performance.

Distinctive Competence

An organizational strength possessed by only a small number of competing firms

Unrelated diversification

Operating several businesses that are not related to one another under one ownership.

Strategy implementation

The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved.

Scope

When applied to strategy, if specifics the range of markets in which an organization will compete

Mission

a statement that defines an organization's overreaching purpose

SWOT

an acronym for strengths, weaknesses, opportunities, and threats, business managers evaluate the performance of their department or the entire company using SWOT analysis

Resource Deployment

how it will distribute its resources among various areas of the business

Diversification

the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another.

Strategy Formulation

the stage of strategic development that involves the planning and decision making that lead to the establishment of the orgs goals and of a specific strategy plan