Strategic Management Vocabulary

A comprehensive set of vocabulary terms and concepts from the Strategic Management lecture covering introduction, theory, goal setting, and stakeholders.

Analysis, Choice, Execution (ACE)

The components of the fundamental strategic process framework.

VUCA/BANI

Frameworks used to describe the current environmental context of strategic management, with BANI standing for Brittle, Anxious, Non-linear, and Incomprehensible.

Shared Value

A concept proposed by Porter and Kramer focusing on creating economic value in a way that also creates value for society; it is distinct from CSR (Corporate Social Responsibility).

Sun Tzu and Clausewitz

Historical figures whose works are foundational to strategic management, specifically regarding 'knowing yourself and your enemy' (Sun Tzu) and the relationship between objectives and military/strategic action.

Weak Signals

Early indicators of potential change or emerging trends that are used in scenario planning and developing dynamic capabilities.

Realized Strategy

The actual strategy that a firm follows, which is often a mix of intended strategy and emergent strategy (as seen in the Honda case).

Operational Effectiveness (OE)

Performing similar activities better than rivals. Michael Porter argues that OE is necessary but not sufficient for strategy because it leads to competitive convergence.

Trade-offs

Essential strategic choices to limit what a company does, creating a unique position that cannot be easily imitated by rivals.

Fit

The way a company's activities interact and reinforce one another, often visualized through an activity map.

5 Ps of Strategy

Mintzberg's framework consisting of Plan, Ploy, Pattern, Position, and Perspective.

Strategy Palette

Reeves' framework which includes four strategic styles: classical, adaptive, visionary, and shaping.

Core Rigidities

Deeply embedded patterns of behavior or assets that were once strengths but have become obstacles to change, notably cited in the failures of Nokia and Kodak.

Strategic Intent

A concept by Hamel and Prahalad describing a high-level ambition that stretches an organization's resources and focuses on a long-term 'obsession with winning.'

Strategy Pyramid

A hierarchy of goal setting that flows from mission and vision down to specific strategic goals and KPIs.

Mission

A statement of the organization's purpose, defining 'what we do.'

Vision

A statement describing the future aspirations of the organization, defining 'what we want to become.'

Golden Circle

Simon Sinek's model comprising Why (purpose), How (process), and What (product), emphasizing that successful organizations start with 'Why.'

Shareholder View

Milton Friedman's perspective that the primary responsibility of a business is to increase profits for its owners.

Stakeholder View

Edward Freeman's perspective that a business must create value for all stakeholders, including employees, customers, and the community.

Mendelow Matrix

A stakeholder management tool that maps stakeholders based on their power and interest to determine management strategies (e.g., keep satisfied, manage closely).

Goodhart's Law

The principle that when a measure becomes a target, it ceases to be a good measure.

FAST

A goal-setting framework characterized by Frequent discussion, Ambition, Specificity, and Transparency.

OKR

Objectives and Key Results; a goal-setting framework focused on outcomes and stretch goals, often contrasted with the more operational KPI (Key Performance Indicator).

Strategic Dissonance

The gap or misalignment between an organization's stated mission/strategy and its actual daily behavior or metrics.

Balanced Scorecard (BSC)

A strategic management framework used to track and manage an organization's performance across multiple perspectives, beyond just financial results.