Business strategy Flashcards
Business strategy
A long-term plan of action for the whole organisation designed to meet the needs of the markets and to fulfill stakeholder expectations
Strategic management
The role of management in setting up long-term goals and implementing cross functional decisions that should enable the firm to reach this goals
Tactic
Short-term policy or decision aimed at resolving a particular problem or meeting a specific part of the overall strategy
Strategic analysis
The process of conducting research on the business environment within which a firm operates and on the firm itself in order to develop strategies
Core competence
An important business capability that gives it a competitive advantage
- provide recognisable benefits to customers
- difficult to copy (patents)
- applicable for products or markets
Core product
A Product made from a business’s core competencies, but not or final user
Strategic choice
Identifying strategic options, evaluating them and then choosing between them
- decision-making
- forecasting future market changes
- evaluating future options
- target setting and benchmarking
Corporate plan
A methodical plan containing details of the organisation`s central objectives and the strategies to be followed to achieve them
- overall objectives with time frame
- strategies to achieve objectives
- objectives for key departments
Benefits and limitations of corporate plans
Benefits:
- clear focus and sense of purpose
- control and review
- planning = thinking
Limitations:
- external changes
- needs to be flexible
Factors of a corporate plan
Internal: Financial resources, operating capacity, managerial skills and experience, staff number and skills, culture of organisation
External: Macro-economic decisions, economic policies, technological changes, competitors actions
Strategic implementation
The process of allocating and controlling resources to support the chosen strategies
