Introduction to Strategic Management Flashcards

Vocabulary-style flashcards covering the key concepts, definitions, and strategic levels from Chapter 1: Introduction to Strategic Management.

Management (Key Group)

The chief organ entrusted with the task of making an organization a purposeful and productive entity by integrating resources of manpower, money, material, and technology.

Management (Functions)

A set of interrelated functions and processes—including Planning, Organising, Directing, Staffing, and Control—carried out to attain organizational objectives.

Strategy (Igor H. Ansoff definition)

The common thread among the organization’s activities and product-markets that defines the essential nature of business that the organization has or planned to be in future.

Strategy (William F. Glueck definition)

A unified, comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved.

Strategy (General)

A long-range blueprint of an organization’s desired image, direction and destination, defining what it wants to be, what it wants to do, and where it wants to go.

Proactive Strategy

A planned strategy consisting of deliberate actions on the part of managers to improve the company’s market position and financial performance.

Reactive Strategy

An adaptive reaction to unanticipated developments and fresh market conditions, also known as an adaptive strategy.

Strategic Management

The managerial process of developing a strategic vision, setting objectives, crafting a strategy, implementing and evaluating the strategy, and initiating corrective adjustments.

Competitive Advantage

Something unique and valued by the customer that allows a company to outperform its competitors in all aspects of organizational performance.

Strategic Intent

The purposes for which an organization strives, representing the philosophical base of strategic management and answering why the firm wants to do what it does.

Vision

A blueprint of the company’s future position that describes management's aspirations and where the organization wants to land in the long run.

Mission

Delineates the firm’s business, its goals, and its reason for existence in society, typically focusing on "who we are and what we do."

Goals

Open-ended attributes that denote the future states or outcomes that the organization attempts to achieve.

Objectives

Close-ended attributes that are precise, time-based measurable targets serving as yardsticks for tracking performance.

Values / Value System

Deep-rooted principles that guide an organization’s decisions and actions, which are inherent and cannot be compromised for short-term economic gain.

Corporate Level Management

Consists of the CEO, senior executives, the board of directors, and corporate staff who oversee strategy development for the whole organization.

Business Level Management

Divisional managers who translate general statements of direction into concrete strategies for individual business areas.

Functional Level Management

Managers responsible for specific organizational activities like human resources, purchasing, and marketing, focused on implementing business-level plans.

Strategic Business Unit (SBU)

A self-contained division with its own functions—such as finance, production, and marketing—that provides a product or service for a particular market.

Functional and Divisional Relationship

An independent relationship where each function or division is run independently and reports directly to the business head.

Horizontal Relationship

A flat hierarchical structure where all positions are at the same level, facilitating speed in idea sharing and innovation, commonly seen in startups.

Matrix Relationship

A grid-like structure with teams formed from various departments for temporary task-based projects, often featuring more than one business-level manager per team.

Survival of the Fittest

A principle by Charles Darwin implying that in business, the 'fittest' are those who can change and adapt successfully to the business environment.