Chapter 4: Planning and Strategic Management Flashcards
Situational Analysis
where planning begins; relevant information is gathered, interpreted and summarized for the issue at hand.
Goals
targets or ends the manager wants to reach
S.M.A.R.T.
goals that have specific qualities; Specific, Measurable, Attainable, Relevant, Time-Bound
Plans
actions or means the manager intends to use to achieve goals
Strategic Planning
making decisions about the organization’s long-term goals and strategies.
Strategic Goals
major targets or results that relate to the long-term survival, value, and growth of the organization.
Strategy
pattern of actions and resource allocations designed to achieve the goals of the organization.
Tactical Planning
translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, often a functional area like marketing or human resources.
Operational Planning
identifies the specific procedures and processes required at lower levels of the organization.
Strategy Map
provides a tool managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they play in helping to achieve them.
Strategic Management
involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.
Six Steps of Strategic Management
- establishment of mission, vision, and goals
- analysis of external opportunities and threats
- analysis of internal strengths and weaknesses
- SWOT (strengths, weaknesses, opportunities, threats) analysis, and strategy formulation
- strategy implementation
- strategic control
Mission
a clear and concise expression of the basic purpose of the organization
Strategic vision
points to the future; provides a perspective on where the organization is headed and what it can become
Stakeholders
groups and individuals who affect and are affected by the achievement of the organization’s mission, goals and strategies.
Resources
inputs to production that can be accumulated over time to enhance performance of a firm.
Core capability
aka competence; something a company does especially well relative to its competitors
Benchmarking
process of assessing how well one company’s basic functions and skills compare with those of another company or set of companies.
Corporate strategy
identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.
Concentration strategy
focuses on a single business competing in a single industry.
vertical integration
involves expanding the domain of the organization into supply channels or distributors
concentric diversification
involves moving into new businesses that are related to the company’s original core business.
conglomerate diversification
corporate strategy that involves expansion into unrelated businesses.
business strategy
defines the major actions by which an organization builds and strengthens its competitive position in the marketplace
low-cost strategies
businesses that attempt to be efficient and offer a standard, no-frills product
differentiation strategy
company attempts to be unique in its industry or market segment along some dimension that customers value.
functional strategies
implemented by each functional area of the organization to support business strategy
strategic control system
designed to support managers in evaluating the organization’s progress with its strategy and, when discrepancies exist, taking corrective action.
