Strategic management Flashcards
Corporate strategy
A long-term plan of action for the whole organisation, designed to achieve a particular goal.
Tactic
Short-term policy or decision aimed at resolving a particular problem or meeting a specific part of the overall strategy.
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.
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.
Strategic analysis
The process of conducting research into the business environment within which an organisation operates, and into the organisation itself, to help form future strategies.
SWOT analysis
A form of strategic analysis that identifies and analyses the main internal strengths and weaknesses and external opportunities and threats that will influence the future direction and success of a business.
PEST analysis
The strategic analysis of a firm’s macro-environment, including political, economic, social and technological factors.
Mission statement
A statement of the business’s core purpose and focus, phrased in a way to motivate employees and to stimulate interest by outside groups.
Vision statement
A statement of what the organisation would like to achieve or accomplish in the long term.
Boston Matrix
A method of analysing the product portfolio of a business in terms of market share and market growth.
Core competence
An important business capability that gives a firm competitive advantage.
Core product
Product based on a business’s core competences, but not directly for final consumer or end user.
Ansoff’s matrix
A model used to show the degree of risk associated with the four growth strategies of market penetration, market development, product development and diversification.
Market penetration
Achieving higher market shares in existing markets with existing products.
Product development
The development and sale of new products or new developments of existing products in existing markets.
Market development
The strategy of selling existing products in new markets.
Diversification
The process of selling different, unrelated goods or services in new markets.
Force-field analysis
Technique for identifying and analysing the positive factors that support a decision (‘driving forces’) and negative factors that constrain it (‘restraining forces’).
Decision tree
A diagram that sets out the options connected with a decision and the outcomes and economic returns that may result.
Expected value
The likely financial result of an outcome obtained by multiplying the probability of an event occurring by the forecast economic return if it does.
Strategic implementation
The process of planning, allocating and controlling resources to support the chosen strategies.
Business plan
A written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts.
Corporate plan
This is a methodical plan containing details of the organisation’s central objectives and the strategies to be followed to achieve them.
Corporate culture
The values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with the external stakeholder groups.
