Exam 1 Prep - Word Bank Vocabulary

Vocabulary flashcards covering core management and strategic planning terminology from the Exam 1 Word Bank prep exercise.

West Chester University

An institution whose mission statement refers to 'a community of educators that develops graduates to succeed personally and professionally and contribute to the common good.'

Values

Shared principles, standards, and goals.

Vision statement

A future-oriented declaration of the organization's purpose and aspirations.

Mission statement

States the purpose of the organization, describing who they are, what they do, and who they aim to serve/benefit.

Stakeholder analysis

An analysis performed by managers to gain a better understanding of the range and variety of groups and individuals who have a vested interest in the organization and its performance.

Controlling

A management function consisting of three steps: (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary.

Organizing

The function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives.

Synergy

Exists when the interaction of two or more activities, such as those in business, create a combined effect greater than the sum of their individual efforts.

Corporate strategy

Answers the questions related to, 'What businesses should we be in?'

Diversification

Exists when an organization participates in multiple businesses that are distinct from each other.

Emergent strategy

A strategy that often develops over time as the intended strategy is adapted to changing external circumstances.

SWOT analysis

Used to help organizations understand its internal strengths and weaknesses along with opportunities and threats posed by the external environment.

Cost leadership strategy

Refers to the strategy where a firm's competitive advantage is based on its ability to develop, make, and distribute products more cost efficiently than its competitors, and then sell those products at a lower price than the competition.

Strategic focus

Exists when an organization is clear about its mission and has a coherent, well-articulated strategy to achieve it.

Differentiation strategy

Refers to the strategy where a firm's competitive advantage is based on superior products or services.

Tangible resources

Resources that can be readily seen, touched, and quantified.

Capabilities

Refer to what the organization can do, as opposed to resources which refer to what an organization owns.

Intangible resources

Resources that include, for example, the knowledge and skills of employees, a firm's reputation, and a firm's culture.

PESTEL

Framework used to analyze various external environments potentially impacting the organization, such as technological, political, and social.

VRIO analysis

An acronym for Valuable, Rare, Inimitable, and Organized (supported by the organization).

Sustainable competitive advantage

A competitive advantage (such as Aruba's warm climate and location outside of the hurricane belt) that cannot be easily duplicated or imitated by competitors.

Five Forces Model

Porter's model that attempts to analyze the attractiveness of an industry by considering their impact on the profit potential of a market or industry.

Power of substitutes

Refers to the ease at which buyers can switch to another product in a different industry that accomplishes the same goals and objectives as the existing industry.

Value Chain

A form of internal analysis, representing the primary and support activities that an organization used to create value in the form of products and services.

Goals

Outcome statements that define what an organization is trying to accomplish.

Balanced Scorecard

A framework designed to translate the organization's mission statement and overall strategy into specific, quantifiable goals and objectives in both financial and non-financial terms.

Performance evaluation

A constructive process to acknowledge an employee's performance.

Management by Objectives (MBO)

An approach that aims to increase organizational performance by aligning subordinate objectives throughout the organization with the overall goals set by management.

Objectives

Very precise, time-based, measurable actions that support the completion of a goal.

Cooperative strategy and Divergent strategy

The two leftover terms from the word bank that were not covered in MGT200 and are not on the exam.