Chapter 3 Terms Flashcards
Business Planning
An ongoing process of making decisions that guides the firm both in the short term and in the long term
Business Plan
A plan that includes the decisions that guide the entire organization
Marketing Plan
A document that describe the marketing environment, outlines the marketing objectives and strategy, and identifies how the company will implement and control the strategies embedded in the plan
Strategic Planning
A managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth
Strategic Fit
The degree to which an organization is matching its resources and capabilities with the opportunities in the external environment
Strategic Business Units
Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
Mission Statement
A formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
Situational Analysis
Refers to a collection of methods that managers use to analyze an organization’s internal and external environment to understand the organization’s capabilities, customers, and business environment.
Internal Environment
The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
External Environment
The uncontrollable elements outside an organization that may affect its performance either positively or negatively
SWOT Analysis
An analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment.
Business Portfolio
The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
Portfolio Analysis
A management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units
BCG Growth-Market Share Matrix
A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.
Stars
SBUs with products that have a dominant market share in high-growth markets
