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