MGT306 - Unit 1: Strategy and Business Process

Vocabulary flashcards covering key definitions, concepts, operating models, and frameworks from Unit 1 of Management 306 (Strategy and Business Process).

Strategia

The Greek word meaning 'art of troop leader; office of general, command, generalship', from which the word strategy is derived.

Strategy

A well defined roadmap of an organization that defines its overall mission, vision, and direction, designed to maximize strengths and minimize competitor strengths.

Business Strategy

A plan of action or set of decisions providing direction and scope to an organization, aligning resources and capabilities to meet market demands and stakeholder expectations.

Vision

The long-term aspirational goal of the organization.

Mission

The purpose and primary objectives of an organization related to customer needs and team values.

SWOT Analysis

An environmental analysis tool used for evaluating an organization's strengths, weaknesses, opportunities, and threats.

PEST Analysis

An environmental analysis tool examining political, economic, social, and technological factors affecting an organization.

Business Process Management (BPM)

The practice of designing, executing, monitoring, and optimizing business processes to ensure alignment with strategic objectives.

Competitive Strategy

Defined by Michael Porter as the broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.

Porter's Five Forces Model

A framework published by Michael Porter in 1979 to analyze the level of competition and profit potential within an industry based on five core competitive forces.

Threat of New Entrants

A force where new entrants put pressure on industry prices, costs, and investment rates through their desire to gain market share.

Barriers to Entry

Advantages that existing, established companies have over new entrants that restrict or discourage new competitors from entering an industry.

Bargaining Power of Suppliers

The ability of suppliers providing essential operational ingredients to dictate terms, increase prices, or reduce product quality when few suppliers exist.

Bargaining Power of Buyers

The power of customers to influence pricing and terms, demand higher quality or lower prices, and play competitors against each other.

Threat of Substitute Products

The likelihood that customers will switch to alternative products or services outside the industry that fulfill the same needs or functions.

Rivalry Among Existing Competitors

The intensity of competition between current players in an industry, which limits profitability through price wars, advertising, and innovation.

Five Forces Driving Factors

The specific market factors across all five forces (such as economies of scale, switching costs, brand loyalty, and supplier uniqueness) that shape industry competition.

Defensible Position

A business stance that allows an organization to protect its market share and profitability against competitors to ensure long-term sustainability.

Cost Leadership

A strategy aimed at becoming the lowest-cost producer in the industry by achieving economies of scale and operational efficiency.

Differentiation Strategy

A strategy aimed at offering unique products or services that provide value to customers through innovation, quality, branding, or service.

Focus / Niche Strategy

A strategy aimed at targeting a specific market segment or group with specialized products or services tailored to their needs.

Competitor Analysis

The process of identifying key industry competitors, evaluating their strengths and weaknesses, and understanding their strategies to inform decision-making.

Operating Model

A framework outlining how an organization coordinates people, core processes, technology, culture, and management systems to deliver value.

Operational Excellence

An operating discipline focused on delivering good products at the lowest total cost through streamlined operations, efficiency, and continuous improvement.

Product Leadership

An operating discipline focused on offering superior, cutting-edge products or services driven by innovation, design, and rapid commercialization.

Customer Intimacy

An operating discipline focused on building deep customer relationships, service flexibility, and delivering customized solutions to meet individual needs.

Balanced Scorecard (BSC)

A strategic management framework introduced by Robert Kaplan and David Norton in 1996 that measures organizational performance across four balanced perspectives.

Financial Perspective

A perspective of the Balanced Scorecard asking 'To succeed financially, how should we appear to our shareholders?' using metrics like ROI and revenue growth.

Customer Perspective

A perspective of the Balanced Scorecard asking 'To achieve our vision, how should we appear to our customers?' using metrics like satisfaction and market share.

Internal Business Process Perspective

A perspective of the Balanced Scorecard asking 'To satisfy our shareholders and customers, what business processes must we excel at?'

Learning and Growth Perspective

A perspective of the Balanced Scorecard asking 'To achieve our vision, how will we sustain our ability to change and improve?'