Strategy Flashcards
Essentially a plan of action for accomplishing an organization’s long-range goals to create value.
Strategy
Focuses on the future of the organization as a single-unit - a general vision of the future it seeks and its long-term goals.
Organizational Strategy
Address questions of how and where the organization will focus to create value.
Business Unit Strategies
Reflects the way in which organizational and business unit strategies are translated into action at the functional level through functional strategies.
Operational Strategy
Process of setting goals and designing a path toward a competitive position. It helps create alignment of efforts and provides a layer of control.
Strategic Planning
The actions that leaders take to move their organizations toward the goals set in strategic planning and to create value for all stakeholders. It makes incremental adjustments to the plan as needed and to the organization itself.
Strategic Management
Formulation > Development > Implementation > Evaluation
Strategic Planning & Management Process
Actions, processes, or results that are needed to deliver a desired value.
Value Drivers
Approach to identify their key performance indicators (KPIs) and to make sure that the objectives used to measure performance are strategically aligned to the various sources of value to the organization and are balanced.
Balanced Scorecard
Predictive in that action in this area can change future performance and help achieve success.
Leading Indicator
Effects that have already occurred and cannot be changed.
Lagging Indicator
Compares performance levels and/or processes of one entity with those of another to identify performance gaps and set goals aimed at improving performance.
Benchmarking
Consonance or compatibility of an organization’s strategy with its external and internal environments, especially with regard to the goals and values it chooses and the resources and capabilities that can be deployed toward strategic goals.
Strategic Fit
Companies agree to share assets, such as technology or sales capabilities, to accomplish a goal. The relationship may have varying degrees of tightness and formality. Some alliances involve customers, partners, or competitors.
Strategic alliance
Two or more companies invest together in forming a new company that is jointly owned.
Joint Venture
