GMS 200 Class 8 (Chapter 10) Key Terms 2025/2026

Textbook

Bankruptcy and Insolvency Act

The Canadian law that protects a firm from creditors while management reorganizes to restore solvency.

BCG Matrix

A tool to analyze business opportunities according to market growth rate and market share.

Business strategy

A strategy that identifies how a division or strategic business unit will compete in its product or service domain.

Competitive advantage

The ability to do something so well that one outperforms competitors.

Concentration

A growth strategy to expand within the same business area.

Co-opetition

The strategy of working with rivals on projects of mutual benefit.

Core competency

A special strength that gives an organization a competitive advantage.

Core values

Broad beliefs about what is or is not appropriate behaviour.

Corporate governance

The system of control and performance monitoring of top management.

Corporate strategy

A strategy that sets long-term direction for the total enterprise.

Cost leadership strategy

A strategy that seeks to operate with low cost so that products can be sold at low prices.

Differentiation strategy

A strategy that offers products that are different from the competition.

Diversification

A growth strategy to expand by acquisition of or investment in new and different business areas.

Divestiture

Selling off parts of the organization to refocus attention on core business areas.

Downsizing

Decreasing the size of operations.

Focus strategy

A strategy that concentrates on serving a unique market segment better than anyone else.

Focused cost leadership

A strategy that seeks the lowest costs of operations within a special market segment.

Focused differentiation strategy

A strategy that offers a unique product to a special market segment.

Functional strategy

A strategy that guides activities within one specific area of operations.

Globalization strategy

A strategy that adopts standardized products and advertising for use worldwide.

Growth strategy

A strategy that involves expansion of the organization’s current operations.

Lack-of-participation error

A failure to include key persons in strategic planning.

Liquidation

What occurs when a business closes and sells its assets to pay creditors.

Mission

A statement that expresses the organization’s reason for existence

Multidomestic strategy

A strategy that customizes products and advertising to best fit local needs.

Operating objectives

Specific results that organizations try to accomplish.

Organizational culture

The predominant value system for the organization as a whole.

Retrenchment, restructuring, and turnaround strategies

Strategies that pursue radical changes to solve problems.

Stakeholders

Individuals and groups directly affected by the organization and its strategic accomplishments.

Strategic alliance

A partnership that organizations join to pursue an area of mutual interest.

Strategic analysis

The process of analyzing the organization, the environment, and the organization’s competitive position and current strategies.

Strategic control

An attempt to make sure that strategies are well implemented and that poor strategies are scrapped or modified.

Strategic intent

The focus on and application of organizational energies on a unifying and compelling goal.

Strategic leadership

Leadership that inspires people to continuously change, refine, and improve strategies and their implementation.

Strategic management

The process of formulating and implementing strategies.

Strategy

A comprehensive plan guiding resource allocation to achieve an organization’s long-term goals.

Strategy formulation

The process of crafting strategies to guide the allocation of resources.

Strategy implementation

The process of putting strategies into action.

Sustainable competitive advantage

The ability to outperform rivals in ways that are difficult or costly to imitate.

SWOT analysis

An examination of organizational strengths and weaknesses and environmental opportunities and threats.

Transnational strategy

A strategy that seeks efficiencies of global operations with attention to local markets.

Turnaround strategy

A strategy that tries to fix specific performance problems.

Vertical integration

A growth strategy to expand by acquiring upstream suppliers or downstream distributors.