Principles of Management - C483 - Strategic Planning

Goal

A target or end that management desires to reach

Business strategy

The major actions by which a business competes in a particular industry or market

Concentration

A strategy employed for an organization that operates a single business and competes in a single industry

Concentric diversification

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Conglomerate diversification

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Core capability

A unique skill and/or knowledge an organization possesses that gives it an edge over competitors

Corporate strategy

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities

Differentiation strategy

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

Functional strategies

Strategies implemented by each functional area of the organization to support the organization's business strategy

Low-cost strategy

A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

Mission

An organization's basic purpose and scope of operations

Operational planning

The process of identifying the specific procedures and processes required at lower levels of the organization

Plans

The actions or means managers intend to use to achieve organizational goals

Resources

Inputs to a system that can enhance performance

Scenario

A narrative that describes a particular set of future conditions

Situational analysis

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

Stakeholders

Groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies

Strategic control system

A system designed to support managers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action

Strategic goals

Major targets or end results relating to the organization's long-term survival, value, and growth

Strategic management

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

Strategic planning

A set of procedures for making decisions about the organization's long-term goals and strategies

Strategic vision

The long-term direction and strategic intent of a company

Strategy

A pattern of actions and resource allocations designed to achieve the organization's goals

SWOT analysis

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

Tactical planning

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing

Vertical integration

The acquisition or development of new businesses that produce parts or components of the organization's product

Mechanistic organization

A form of organization that seeks to maximize internal efficiency

Organic structure

An organizational form that emphasizes flexibility

Strategic alliance

formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals

Learning organization

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights

High-involvement organization

A type of organization in which top management ensures that there is consensus about the direction in which the business is heading

Economies of scope

Economies in which materials and processes employed in one product can be used to make other related products

Downsizing

The planned elimination of positions or jobs

Rightsizing

A successful effort to achieve an appropriate size at which the company performs most effectively

Survivor's syndrome

Loss of productivity and morale in employees who remain after a downsizing

Customer relationship management (CRM)

A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns

Total quality management (TQM)

An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services

Six sigma quality

A method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction

ISO 9001

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers

Barriers to entry

Conditions that prevent new companies from entering an industry

Switching costs

Fixed costs buyers face when they change suppliers

Supply chain management

The managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers

Final consumer

A customer who purchases products in their finished form

Intermediate consumer

A customer who purchases raw materials or wholesale products before selling them to final customers