ch.8

Strategic management

set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals

Strategy

plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals

Competitive advantage

what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace

Core competence

something the organization does especially well in comparison to its competitors

Synergy

occurs when organizational parts interact to produce a joint effect that is greater than the sum of its parts acting alone

Corporate-level strategy:

pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate

Business-level strategy

•pertains to each business unit or product line

Functional-level strategy

•pertains to the major functional departments within the business unit

SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats