Strategic planning
long-range (3-5 years) planning that focuses on the organization as a whole
Commitment Principle
managers should commit funds for planning only if they can anticipate, in the foreseeable future, a return on planning expenses as a result
Strategy
broad & general plan developed to reach long-term objectives; end result of planning
Strategic management
process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy
Environmental analysis
study of the org environment to pinpoint environmental factors that can significantly influence operations
General environment
external components w/ broad, long-term implications for managing org
economic environment
indicates how resources are being distributed & used within environment
social environment
describes characteristics of society in which the organization functions
economics
understanding how ppl produce, distribute, & use various goods & services
social values
relative degrees of worth society places on the ways in which it exists & functions
industry environment
external components w/ specific & immediate implications for managing
Five Forces Model
outlines forces that determine competitiveness within an industry& illustrates how those forces are related
internal environment
exists inside the org & has immediate & specific implications for managing
competitive capability
resources & ability a firm has to undertake an action
competitive dynamics
how a firm undertakes strategic & tactical​ actions, & competitors' responses to those​ actions, is referred
Mission statement
written doc developed by management that describes & explains the mission
Strategy formation
process of determining appropriate courses of action for achieving objs & accomplishing the org purpose
Critical question analysis
answering basic questions about the present purposes & objs of the org, its present direction & environment, & actions that can be taken to achieve objs
Business portfolio analysis
orgs should develop strategy much as they handle investment portfolios (support sound investments & disregard unsound ones)
Strategic business unit
significant org segment that is analyzed to develop org strategy aimed at generating future business or revenue
Star
large share of a high-growth market & needs large $$$ to support rapid growth
Cash cow
large share of a market that is growing only slightly
Question mark
small share of a high-growth market
Dog
relatively small share of a low-growth market
Growth
increase the amount of business an SBU is generating
Stability
maintain/slightly improve the amount of business that an SBU is generating
Retrenchment
strengthen or protect the amount of business an SBU is currently generating
Divestiture
eliminate an SBU that is not generating a satisfactory amount of business & has little hope of doing so in the near future (sell or close down the SBU)
Strategy implementation
putting formulated strategies into action
Allocating skill
provide the resources necessary to implement a strategy
Monitoring skill
use info to determine whether a problem has arisen
Organizing skill
create a network of ppl who can help solve implementation problems
Strategic control
monitoring & evaluating the strategic management process as a whole to ensure that it is operating properly
Tactical planning
short-range (<1 year) planning that emphasizes current operations of parts of an org