Management: A Focus on Leaders Chapter 5

Planning
The cognitive, creative, and behavioral process of developing a sequence of activities intended to achieve a goal or move toward an imagined future state.
Goal-oriented planning
The process of determining the activities and steps from an existing state to a clearly defined end state.
Directional planning
The process of identifying a domain (general area of activity) and direction (preferred values and activities) rather than specific goals.
Action orientation
Directing one’s full attention to the task at hand
Scenario planning
A dynamic, systematic process in which people envision all of the “what if” scenarios for given situations and plan for several likely possibilities.
Mission statement
A statement that describes what an organization is, what i does, and what it stands for.
Competitive advantage
Anything that positively distinguishes one organization from others.
Vision
A description of what an organization wants to become-its future identity-which can be realized through the successful accomplishment of its mission.
Vision statement
A articulation of a company’s vision.
Growth strategy
A corporate strategy that involves expansion of operations and/or an increase in market share.
Acquisition strategy
A corporate strategy that involves joining with other businesses by buying, merging with, or talking over other companies.
Joint venture
A formal arrangement between two or more entities to engage in activities together to share risk.
Stability strategy
A corporate strategy that is intended to maintain a company’s current position.
Retrenchment strategy
A corporate strategy that is adopted when a company needs to regroup and defend itself while turning the business around.
Divestiture strategy
A corporate strategy in which a company sells off or folds a particular division, business, brand, product, or service line.
Differentiation
A business strategy of providing a product or service that is perceived as unique by customers.
Core competency
An activity that an organization does very well, that is readily identified by customers, and that sets the company part from its competitors.
Cost leadership
A business strategy of providing the lowest prices in the industry for a particular product, product line, or service.
Niche strategy
A business strategy that caters to a narrow segment of the market.
Vertical integration
A business strategy of acquiring or developing businesses along the supply chain.
Supply chain
All of the resources, products, services, and operations that contribute to producing and selling goods or services.
Functional strategies
Departmental strategies that are developed to help an organization achieve its goals.
Strategic planning
The process of examining an organization’s internal and external environments and determining major goals that will help the company realize its mission and move towards its vision.
Environmental scanning
The process of assessing social and natural conditions that have the potential to affect an organization.
Industry
A collective group of companies that provide the same or similar products or services.
Stakeholder
Any constituent potentially impacted by an organization’s actions, either inside or outside the organization.
Stakeholder analysis
An audit of all stakeholders and an analysis of how each stakeholder will be affected by an organization’s decisions, and/or how the stakeholder can affect the organization.
SWOT analysis
A technique that examines strengths, weaknesses, opportunities, and threats that may affect achievement of strategic mission and vision.
Diversified company
A company that has two or more distinct divisions that produce different products or services.
BCG matrix
An analysis tool used to illustrate how a business unit, product, service, brand or product portfolio is performing in terms of market share and market growth.
Market share
The percentage of the market that a product, service or business unit has captured.
Market growth rate
A measure of growth in the market for given products or services.
Recruiting
The process of attracting qualified candidates for jobs.
HR inventory
An internal system that maintains information about people within an organization, including skills, training needs, career plans, and other information about employees.
For-cause termination
The dismissal of an employee for breaking a company policy, failing to perform, or failing to adjust to company values, norms or culture.