DECA Strategic Management Terms

Management

The process of coordinating resources, activities, and people within an organization to achieve specific objectives. It involves four key functions

Managerial Ethics

The set of moral principles and standards that guide managers’ decision-making and actions within an organization. It focuses on doing what is right and just, balancing the needs of stakeholders such as employees, customers, and shareholders while ensuring compliance with legal and societal norms.

Business Plans

A detailed document outlining the goals of a business, the strategies to achieve them, the market research, financial forecasts, and resources needed. It serves as a roadmap for the company’s direction, helping secure funding and aligning the team on long-term objectives.

Company Goals/Objectives

Goals are broad, long-term targets a company aims to achieve, while objectives are specific, measurable steps taken to reach those goals. Well-developed goals and objectives should be SMART

Business Mission

A statement that clearly defines the purpose, values, and core objectives of a business. It serves as the foundation for decision-making, aligning all stakeholders around a common vision of what the company seeks to achieve in the market.

SWOT Analysis

A strategic tool used to assess a company’s internal Strengths and Weaknesses, and external Opportunities and Threats. This analysis helps identify areas where the company can leverage its advantages, improve weaknesses, capitalize on opportunities, and mitigate threats to stay competitive.

External Planning Considerations

Factors outside the organization that affect its strategic planning, such as market trends, competition, economic conditions, and regulations. Businesses must adapt to these external influences to ensure their strategies remain relevant and effective.

Key Performance Indicators (KPIs)

Metrics used to evaluate the success of an organization in achieving its objectives. KPIs track performance in areas like sales, customer satisfaction, and operational efficiency, helping companies identify strengths, weaknesses, and areas for improvement.

Action Plans

Detailed outlines of the steps, resources, and timeline required to achieve specific business objectives. An action plan includes assigned responsibilities, deadlines, and the necessary resources to ensure that goals are met effectively and efficiently.

Business Plan Development

The process of creating a comprehensive strategy that includes goals, market research, SWOT analysis, financial projections, and action plans. A well-constructed business plan is crucial for guiding the company’s direction and securing investment or loans.

Metrics for Measuring Organizational Success

Quantifiable measures used to track the effectiveness and progress of an organization’s strategies and performance. These include financial metrics (like ROI) and operational metrics (like customer satisfaction or production efficiency).

Operating Results vs. Budget/Industry

The process of comparing actual business performance with pre-established budgets and industry standards. This helps assess whether the company is performing as expected or if adjustments are needed to improve profitability and efficiency.

Tracking Business Plan Performance

Regularly monitoring and assessing the progress of goals and objectives outlined in the business plan. This involves reviewing key metrics and adjusting strategies or actions to stay on track toward achieving the desired outcomes.

Risk Management

The process of identifying, evaluating, and mitigating potential risks that could negatively impact an organization’s objectives. This includes financial, operational, and reputational risks, and involves strategies like insurance, diversification, and crisis management plans to reduce impact.

Factors Influencing Management

Internal and external factors that impact the management of an organization. Internal factors include company culture, leadership style, and resources, while external factors include economic conditions, market trends, and legal/regulatory changes.

The Interconnected Relationship between Innovation, Learning, and Change

The interconnected relationship between innovation (developing new ideas and solutions), learning (acquiring new knowledge from experiences), and change (adapting to new conditions). Organizations that embrace innovation and continuous learning are better positioned to manage and adapt to changes in the marketplace.

Change Management

The process of planning, implementing, and managing organizational changes in a way that minimizes resistance and maximizes employee adoption. It includes communication strategies, training, and support systems to help employees adjust to new policies, systems, or organizational structures.