SBL & SBA - UNIT 3 - STRATEGIC CHOICE SLIDES

What is Strategic Management?

Strategic Management is the ongoing process through which an organization formulates, implements, and evaluates strategies to achieve its goals effectively and efficiently by aligning its resources to meet the external challenges.

What are Porter's Generic Strategies?

Porter's Generic Strategies is a framework that outlines the strategic approaches a company can adopt to gain a competitive advantage in the market, namely through cost leadership, differentiation, or focus on a specific market segment.

What does Cost Leadership mean in a business context?

Cost Leadership is a competitive strategy aimed at becoming the lowest-cost producer in the industry, allowing the company to offer products or services at lower prices than competitors, thereby capturing a larger market share.

How does Differentiation work as a strategy?

Differentiation is a strategy where a company offers unique products or services that provide exceptional value, enabling them to charge higher prices than competitors, thereby enhancing brand loyalty and market position.

What is Focus Strategy?

Focus Strategy refers to a strategy where a company concentrates its efforts on a specific market segment, tailoring its products or services to the unique needs of that segment, resulting in a specialized competitive advantage.

What is the BCG Matrix?

The BCG Matrix, or Boston Consulting Group Matrix, is a strategic tool used for portfolio management that categorizes a company's business units based on their market growth rate and relative market share, helping to analyze investment priorities.

What characterizes a Cash Cow in the BCG Matrix?

A Cash Cow is a business unit in the BCG Matrix that has a high market share within a slow-growing industry, generating sufficient cash flow to sustain itself and fund other business units.

What defines a Dog in business strategy terms?

A Dog is a unit in the BCG Matrix characterized by a low market share in a declining industry, often considered unworthy of investment as it fails to generate significant returns.

What is a Question Mark in the BCG Matrix?

A Question Mark is a business unit with low market share in a high-growth market, typically requiring significant resources to improve its market position and potential for future growth.

What is Ansoff's Growth Matrix?

Ansoff's Growth Matrix is a strategic planning tool that helps organizations analyze and devise strategies for business growth by considering existing and new products against existing and new markets.

What is Market Penetration?

Market Penetration is a growth strategy focused on increasing a company's market share by selling more existing products to existing customers, thereby enhancing penetration in the current market.

What does Market Development involve?

Market Development is a growth strategy that entails introducing existing products into new markets, thereby reaching new customer bases and expanding the company's market footprint.

What is Product Development?

Product Development is a growth strategy focused on creating new products or enhancing existing ones to cater to the current market, aiming to satisfy customer needs and drive sales.

What is Diversification in a business context?

Diversification is a risk management strategy that involves entering new markets with new products, which may be related or unrelated to the company’s existing offerings, helping to spread risk and enhance growth opportunities.

What does Sustainable Competitive Advantage mean?

Sustainable Competitive Advantage refers to the unique attributes or resources that a company possesses, which allow it to consistently outperform its competitors over time, thereby securing long-term success.

What is the Marketing Mix?

The Marketing Mix is a combination of controllable marketing tools and tactics (often referred to as the 4 Ps: Product, Price, Place, and Promotion) that a company uses to influence its target market and achieve its marketing objectives.

What is Corporate Parenting?

Corporate Parenting refers to the strategic role of a parent company overseeing and supporting its strategic business units (SBUs) by providing necessary resources, guidance, and strategic direction to maximize overall performance.

What is Strategic Lock-in?

Strategic Lock-in is a condition where a company establishes barriers that make it difficult for customers or competitors to switch providers, thereby securing a competitive position in the market and enhancing customer loyalty.

What is Franchising?

Franchising is a business expansion strategy where a franchisor grants another entity (franchisee) the rights to operate a franchise using its brand name, operational systems, and support, allowing the franchisee to profit from the franchisor's established reputation.

What are Strategic Alliances?

Strategic Alliances are collaborative agreements between companies to work together towards specific goals while maintaining their independence, aimed at leveraging shared resources and capabilities to penetrate markets or innovate.

What is an Organizational Portfolio?

An Organizational Portfolio is the collection of all business units and investments held by a company, strategically managed to achieve the organizations' overall objectives and optimize resource allocation.

What does Operational Efficiency mean?

Operational Efficiency refers to the ability of an organization to deliver products or services in the most cost-effective manner while maintaining quality standards, aiming to improve profitability and resource utilization.

What are Mergers and Acquisitions (M&A)?

Mergers and Acquisitions (M&A) refer to the processes through which companies consolidate their operations by merging or acquiring other organizations, utilizing financial transactions to create synergies and enhance market competitiveness.

What is Competitive Advantage?

Competitive Advantage encompasses the unique attributes, resources, or capabilities that enable an organization to outperform its competitors in the marketplace, thereby achieving superior performance and increased profitability.

What is the role of Vision in Strategic Management?

Vision in Strategic Management refers to a clear and compelling statement that outlines what an organization aspires to achieve in the future, guiding its long-term direction and decision-making.

What does Mission Statement signify?

A Mission Statement defines the purpose of an organization, describing its core values, primary goals, and how it intends to serve its stakeholders.

What is the significance of SWOT Analysis?

SWOT Analysis is a strategic planning tool that helps organizations identify their internal Strengths and Weaknesses, along with external Opportunities and Threats, to inform decision-making.

What does Value Proposition mean?

A Value Proposition is a statement that summarizes why a consumer should choose a product or service, emphasizing the unique benefits and value it provides over competitors.

What is Blue Ocean Strategy?

Blue Ocean Strategy is a business approach that focuses on creating and capturing new demand in an uncontested market space, rather than competing in saturated markets.

What are Key Performance Indicators (KPIs)?

Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively a company is achieving key business objectives, serving as metrics for performance assessment.

What is the Balanced Scorecard?

The Balanced Scorecard is a strategic planning and management system that organizations use to translate their vision and strategy into actionable objectives across financial and non-financial metrics.

What is Change Management?

Change Management refers to the systematic approach to dealing with change in an organization, focusing on the transition of individuals, teams, and the organization as a whole.

What does Human Capital mean in a business context?

Human Capital refers to the economic value of the workforce's skills, knowledge, and experience, considered essential for achieving organizational effectiveness and competitive advantage.

What is Corporate Social Responsibility (CSR)?

Corporate Social Responsibility (CSR) is the practice of companies integrating social and environmental concerns into their business operations and interactions with stakeholders.

What is Strategic Intent?

Strategic Intent refers to a clear and uplifting statement that defines the organization's aspirations and guides its strategic planning and resource allocation.

What does Corporate Governance refer to?

Corporate Governance encompasses the structures, processes, and practices that direct and control an organization, ensuring accountability, fairness, and transparency in relationships with stakeholders.

What is a Business Model?

A Business Model describes how an organization creates, delivers, and captures value, outlining the company's approach to generating revenue and sustaining profitability.

What is Value Chain Analysis?

Value Chain Analysis is a strategic tool used to identify the value-adding activities within an organization and understand how they contribute to competitive advantage.

What are PESTEL factors?

PESTEL factors are external macro-environmental factors evaluated in strategic analysis, including Political, Economic, Social, Technological, Environmental, and Legal influences.

What is Risk Management in a strategic context?

Risk Management involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the impact of unfortunate events on an organization.

What is Scenario Planning?

Scenario Planning is a strategic planning method that organizations use to visualize and prepare for potential future events or situations by exploring various possible scenarios.

What is Benchmarking?

Benchmarking is the process of comparing business processes and performance metrics to industry bests or best practices from other companies to identify areas for improvement.

What does Brand Equity mean?

Brand Equity refers to the value added to a product or service based on the brand name recognition, perceived quality, customer loyalty, and overall brand strength in the market.

What is the role of Leadership in Strategic Management?

Leadership in Strategic Management refers to guiding and influencing an organization's direction and strategies, mobilizing resources, and fostering an environment conducive to achieving strategic goals.

What is Employee Engagement?

Employee Engagement is the level of enthusiasm and dedication a worker feels towards their job, which significantly affects productivity, efficiency, and overall organizational success.

What is Market Segmentation?

Market Segmentation is the practice of dividing a target market into smaller, more defined categories based on specific characteristics to better tailor marketing efforts.

What is a Business Continuity Plan?

A Business Continuity Plan is a strategy that outlines procedures for maintaining and restoring operations during and after a crisis or disruptive event.

What is the role of Data Analytics in Strategic Management?

Data Analytics in Strategic Management involves analyzing data to inform decision-making, identify trends, and enhance business strategies.

What is the purpose of a Business Plan?

A Business Plan is a formal document outlining a business's goals, strategies, target market, and financial projections, serving as a roadmap for the organization.