MGMT Chapter 6

Strategic positioning:

attempts to achieve sustainable
competitive advantage by preserving what is distinctive.

Strategy is the

creation of a unique and valuable position.

A strategic goal is to have

many customers with few needs

Strategy requires: 

trade-offs in competing

Strategy involves:

creating a “fit” among activities

SWOT Analysis:

a situational
analysis in which a company
assesses its strengths,
weaknesses, opportunities, and
threats.

Internal Environment

the
analysis of internal strengths
and weaknesses.

External Environment

the
analysis of external
opportunities and threats.

SWOT stands for

Strengths, Weaknesses, Opportunities, and Threats.

Organizational strengths

the skills and capabilities that give the organization
special competencies and competitive

Organizational weaknesses

the drawbacks that hinder an organization.

Organizational opportunities

environmental factors that the organization may
exploit for competitive advantage

Organizational threats

environmental factors that hinder an organization’s achieving a
competitive advantage

growth strategy

involves
expansion—as in sales
revenues, market share,
number of employees, or
number of customers or (for
nonprofits) clients served.

A defensive strategy, or a retrenchment strategy

a grand strategy that involves a reduction in the
organization’s efforts.

Execution is

not simply tactics; it is
a central part of any company’s
strategy.

Control Phase:

Progress is monitored and
evaluated