Chapter 37: What Is Strategic Managemnt

Question 1

Define corporate strategy

Answer 1

Corporate strategy: along-term plan of action for the whole organisation, designed to achieve a particular goal.

Question 2

Define tactic

Answer 2

Tactic: short-term policy or decision aimed at resolving a particular problem or meeting a specific part of the overall strategy.

Question 3

Define strategic management

Answer 3

Strategic management: the role of management when setting long-term goals and implementing cross-functional decisions that should enable a business to reach these goals.

Question 4

Define competitive advantage

Answer 4

Competitive advantage: a superiority gained by a business when it can provide the same value product/ service as competitors but at a lower price, or can charge higher prices by providing greater value through differentiation.