Management Chapter 8

Core Competence

Something that the organization does particularly well in comparison to others

Strategic Business Unit

A division of the organization that has unique business, mission, product or service line, competitors, and markets relative to other units of the same organization

Target customers, Exploit core competencies, Achieve synergy, Deliver value

Elements of competitive advantage

Synergy

Exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone

Business Level Strategy

Pertains to each business unit or product line within the organization

Functional Level Strategy

Pertains to the major functional departments within each business unit, such as manufacturing, marketing, and R&D

Corporate Level Strategy

Pertains to the organization as a whole and the combination of business units and products that make it up

Strategy

The plan of action that describes resource allocation and activities for dealing with the environment , achieving a competitive advantage, and attaining goals

Strategic Execution

The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes

SWOT Analysis

An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance

Formulation

Assessing the external environment and internal problems to create goals and strategy

Strategic Management

Refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals

Competitive Advantage

Refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace

Strategy Formulation

The stage of the strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan

Execution

The use of managerial tools to direct resources toward accomplishing strategic results