Chapter 6 Flashcards
Mission
defines an organization’s purpose or reason for existence.
Vision
is a forward-thinking statement that defines what a company wants to become and where it is going.
Harvesting
is a strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability potential.
SWOT
strengths, weaknesses, opportunities, and threats.
Corporate-level strategy
defines what the organization intends to accomplish and where it plans to compete.
Business-level strategy
outlines specific objectives the organization hopes to achieve for each of its identified business initiatives and/or business units.
Operating plan
is a detailed, immediate-term set of objectives and corresponding tactics designed to achieve a specific business initiative.
Directional Lock-in
is the level of financial and operational commitment an organization incurs as a result of implementing the organization’s strategies.
Vitality
refers to the ability of the NFP to grow and sustain its membership base and donor base.
Collective Entrepreneurship
ensures that the involvement of the community where an organization is located and the population that it serves are reflected in the formulation and implementation of the strategy.
Rootedness
refers to the extent to which the NFP is interwoven into the fabric of the community that it serves and is supported by a broad representation of its organizations, businesses, and citizens.
7 steps involved in developing a business strategy
creating a vision and mission statement, defining the products/services offered, assessing the resources the organization has or has the capacity to acquire, configuring the business system to ensure the execution of the intended set of actions, and defining managerial responsibility and accountability to ensure its success.
Key stages of the strategic planning process
revisiting the organization’s purpose, I/E analysis, the identification of strategic choices, strategy formulation and strategy implementation.
