Growth Strategy and Company Development Terms

These flashcards cover key vocabulary terms related to growth strategies, corporate strategies, and business models within the context of managing and developing a firm.

Growth Strategy

A plan to increase the size and market presence of a business.

Blue Ocean Strategy

A business approach that seeks to create new market space, making the competition irrelevant.

Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Insourcing

The process of transferring a business function back in-house, typically from an outside supplier.

Outsourcing

A business practice where a company hires another company to perform tasks, handle operations, or provide services.

Specialization

A focus on a specific area of activity, allowing a company to develop competitive advantages within that niche.

Diversification

A strategy of increasing sales by introducing new products into new markets.

Market Penetration

Selling more of your current product/service to the existing market.

Market Development

Selling existing products to new types of consumers.

Product Development

Selling new products to existing customers.

Vertical Diversification

Expanding business activities into new market segments or adjacent industries within the supply chain.

Horizontal Diversification

Introducing new products into existing markets, targeting current customers.

Conglomerate Diversification

Expanding into diverse business areas that are unrelated to the existing business.

Strategic Alliance

An arrangement between two or more companies to pursue a set of agreed upon objectives while remaining independent organizations.

Competitive Advantage

An attribute that allows an organization to outperform its competitors.

Corporate Strategy

The overarching plan that defines a company's direction and allocation of resources.

Business Strategy

The plan that outlines how a company will compete in a particular market.

Functional Strategy

Detailed plans for specific areas of a business (e.g., marketing, finance) to support overall business strategies.

Risk of Specialization

Potential negative consequences arising from focusing solely on a narrow market segment.

Integration Strategy

Moving activities within the company to better align with business goals.

Cost Optimization

The process of reducing costs while maximizing value.

Value Chain

A set of activities that a company performs to deliver a valuable product or service.

Market Share

The portion of a market controlled by a particular company or product.

Innovation

The process of translating an idea or invention into a good or service that creates value.

Stakeholder

Any individual or group that has an interest in the outcome of a project or business.

Economic Profit Prospects

Financial returns anticipated from pursuing business activities or strategies.

Corporate Value Creation

The process through which a company enhances its worth through various strategies.

Risk of Outsourcing

The chance of losing control over critical business processes to external providers.

Benchmarking

The process of comparing a company’s performance metrics to industry bests.

Exit Strategy

A plan for how a business owner will sell or otherwise dispose of their investment.

Financial Risk of Over-Indebtedness

Increased risk of insolvency due to excessive borrowing.

Strategic Logics

The underlying rationale guiding a company's strategic decisions.

Synergy Failure

When combined efforts do not produce the expected additional benefits.

Resource Management

The efficient and effective deployment of an organization's resources.

Market Expansion

Increasing sales by reaching out to new consumer segments.

Disinvestment

The process of selling off subsidiary business interests or investments.

Niche Market

A specific, defined segment of the market that is addressed by a specific kind of product or service.

Cost Structure Impact

Changes in the allocation of costs in an organization due to strategic decisions.

Competitive Landscape

The aggregated environment where companies compete against each other.