Session:9 The Strategic Management Process: Achieving and Sustaining Competitive Advantage
Key Terms
Principles of Management | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-management
- BCG matrix
- a tool used to evaluate the various business units in a corporation.
- benchmarking
- a performance evaluation technique where the standard for a firm’s performance is based on another firm’s superior performance.
- business-level strategy
- ways that single-product firms organize their activities to succeed against rivals; at this level, include cost leadership and differentiation.
- corporate strategy
- the broadest level of strategy, concerned with decisions about growing, maintaining, or shrinking very large companies.
- defensive strategy
- a grand strategy pursued by companies facing challenges.
- goal
- something that a firm is trying to accomplish; can also be called an objective.
- growth strategy
- a grand strategy to increase the size of the firm in terms of revenue, market share, geographic reach, or a combination of these elements.
- implementation
- the execution of a strategy by planning and assigning actions to employees to carry out in order to accomplish the company’s strategic objectives.
- international strategy
- the level of strategy concerned with the large-scale actions involved in entering a brand-new geographic market.
- long-term strategic plan
- company actions to achieve an objective that will take a year or longer to accomplish.
- mission statement
- a general description of how the firm will try to accomplish the firm’s vision.
- operational planning
- first-line strategic planning consisting of specific daily and short-term actions that employees will perform to make the company function.
- performance measurement
- the evaluation of firm activities to determine the success of that activity in helping the firm reach its strategic objectives.
- plan
- a decision to carry out a particular action in order to achieve a specific goal, including decisions about when and how the action should be accomplished and what resources will be required to carry out the action.
- short-term strategic plan
- company actions to achieve an objective in a time frame of a year or less.
- SMART framework
- an acronym for the characteristics of good goals: specific, measurable, achievable, relevant, and time-bound.
- stability strategy
- a grand strategy for a company that wants maintain its current income, market share, or geographic reach.
- strategic analysis
- the systematic examination of a firm’s internal and external situation that informs managerial decision-making.
- strategic management process
- the set of activities that firm managers undertake in order to try to put their firms in the best possible position to compete successfully in the marketplace.
- strategic objectives
- the big-picture goals for the company: what the company will do to try to fulfill its mission.
- strategic planning
- connects the company’s actions back to its vision and mission statements.
- tactical planning
- mid-level strategic planning consisting of broad ideas of what a company should do to pursue its mission.
- vision statement
- a broad expression of what a business’s founders want that business to accomplish.