Management Chapter 9 – Strategic Management

strategic management
what managers do to develop the organization’s strategies
strategies
Plans for how the organization will do what it’s in business to do, how it will compete successfully, and how it will attract its customers in order to achieve its goals
business model
how a company is going to make money
strategic management process
A six-step process that encompasses strategy planning, implementation, and evaluation
mission
a statement of an organization’s purpose
opportunities
positive trends in the external environment
threats
negative trends in the external environment
resources
an organization’s assets that are used to develop, manufacturem and deliver products to its customers
capabilities
an organization’s skills and abilities in doing the work activites needed in its business
core competencies
The organization’s major value creating capabilities that determine its competitive weapons
strengths
any activities the organization does well or any unique resources that it has
weaknesses
activities the organization does not do well or resources it needs but does not possess
SWOT analysis
analyzes a businesses strengths, weaknesses, opportunities and threats
corporate strategy
an organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses
growth strategy
a corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, through either its current business(es) or new business(es)
stability strategy
a corporate strategy in which an organization continues to do what it is currently doing
renewal strategy
a corporate strategy designed to address declining performance
BCG matrix
A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs
competitive strategy
an organizational strategy for how an organization will compete in its business(es)
strategic business unit (SBU)
the single independent businesses of an organization that formulate their own competitive strategies.
competitive advantage
what sets an organization apart; its distinctictive edge
functional strategy
the strategies used by an organization’s various functional departments to support the competitive strategy
strategic leadership
the ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a positive future for an organization
strategic flexibility
the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake.