BA 01 - CIA REVIEW - BUSINESS ACUMEN

Business Acumen

Possessing the knowledge, abilities, and skills (KASs) to succeed in the business field.

Strategic Planning

The process of developing and executing strategies to achieve a company's goals and objectives.

Mission

A statement reflecting management’s values and beliefs about the purpose of the organization.

Vision

A statement explaining what a company wants to become and what it hopes to achieve.

Goals

Statements of general, broad, long-term targets that an organization aims to reach, developed from its vision and mission.

Tactical Goals

Specific, measurable results expected from individual decisions, departments, and business units that support strategic goals.

Operational Goals

Very specific, detailed, and short-term measurable results of individual work groups.

Plans

Blueprints specifying the resources, schedules, and actions needed to achieve goals.

Actions

Systematic and structured steps or tasks required to achieve defined plans.

Porter’s Five Forces Model

A strategic analysis tool that assesses the competitive landscape of an industry based on five forces.

Competitive Rivalry

The intensity of competition in an industry influenced by factors like the number of competitors and industry growth.

Threat of New Entrants

The potential for new competitors to enter an industry, influenced by factors like economies of scale and capital requirements.

Bargaining Power of Suppliers

The ability of suppliers to influence the price and availability of goods, determined by factors like the number of suppliers and uniqueness.

Bargaining Power of Customers

The ability of customers to influence pricing and quality, determined by factors like the number of buyers and price sensitivity.

Threat of Substitutes

The risk that customers will find alternative products or services, influenced by factors like price performance and availability of substitutes.

Cost Leadership

A strategy where a firm aims to be the low-cost producer in its industry.

Differentiation

A strategy where a firm seeks to be unique in its industry along dimensions valued by buyers.

Focus Strategy

A strategy that targets a narrow segment of the market, tailoring its approach to serve that segment exclusively.

Value Chain

A series of steps involved in creating a finished product, identifying where value is added in the process.

Primary Activities

Components of the value chain that add value directly, including inbound logistics, operations, outbound logistics, marketing and sales, and service.

Support Activities

Activities that help make primary activities more efficient, including procurement, technological development, human resource management, and infrastructure.

Boston Consulting Group (BCG) Growth Share Matrix

A planning tool that categorizes a company’s products based on market growth and market share.

Stars

Products in high-growth markets with significant market share that should be invested in.

Cash Cows

Products in low-growth markets with high market share that generate cash for reinvestment.

Question Marks

Products in high-growth markets with low market share that require analysis to determine their potential.

Dogs

Products with low market share and low growth that should be divested or liquidated.

Continuous Improvement

Ongoing efforts to enhance processes, reduce waste, and improve quality and customer service.

Kaizen

A Japanese term for continuous improvement through small, incremental changes.

Business Process Reengineering (BPR)

A radical approach to redesigning business processes to eliminate inefficiencies.

Benchmarking

The process of identifying and applying best practices from other firms to improve performance.