Quiz 2

Vocabulary practice flashcards covering mission statements, strategic visions, strategic plans, financial and strategic objectives, the strategy-making hierarchy, and execution processes.

Mission Statement

A purely descriptive statement of current business scope that describes the enterprise's present business and purpose, answering 'Who are we, what do we do, and why are we here?'

Strategic Vision

A statement delineating management's aspirations for the future, charting a strategic course, providing rationale for business model changes, and pointing the organization in a specific direction.

Strategic Intent

The condition when a company relentlessly pursues an ambitious strategic objective by concentrating the full force of resources and competitive actions on achieving that single objective.

Strategic Plan

A plan mapping where a company is headed and establishing targets, consisting of three parts: Future Direction, Performance Targets, and Strategy.

Financial Objectives

Performance targets focused on financial performance, such as achieving a bond rating of AA or higher.

Strategic Objectives

Performance targets focused on strengthening a company's market standing and competitive position, such as overtaking competitors on quality, achieving a specific market share, or widening the product line.

Balanced Scorecard

A method for combining both strategic and financial objectives to strike a balance and provide management with a complete view of performance.

Corporate Strategy

The level of strategy managed by the CEO & Senior Execs, focused on managing the set of businesses as a whole, cross-business synergies, and improving combined performance.

Business Strategy

The level of strategy managed by Midlevel Managers (General Managers), focused on strengthening market position and building competitive advantage for a single line of business.

Functional Strategy

The level of strategy managed by Functional Heads, focused on managing specific functions like R&D, production, marketing, or finance.

Operating Strategy

The level of strategy managed by Frontline Managers, focused on managing key operating units (plants, distribution centers) and specific activities with strategic significance (quality control, brand management).

Strategy-Making Hierarchy

The four-level strategy structure utilized in multi-business companies, consisting of Corporate Strategy, Business Strategy, Functional Strategy, and Operating Strategy.

5-Stage Strategy Process

An ongoing, continuous process consisting of 1) Developing a strategic vision, 2) Setting objectives, 3) Crafting a strategy, 4) Executing the strategy, and 5) Monitoring and adjusting.

Strategy Execution Management

The complex process of managing strategy implementation through structure, staffing, resources, incentives, and culture.