Basic Concepts of Strategy

A continuous cycle of analyzing, formulating, implementing, and gathering feedback on a company's strategy to achieve competitive advantage.

Information gathered from the marketplace regarding the effectiveness of a company's strategy in achieving competitive advantage.

A strategy is not a simple statement of aspirations; it needs to describe how to execute on the goals.

A strategy is not just a desired outcome; it details the actions to achieve that outcome.

A strategy is broader than specific plans or financial details – it outlines the overall approach for success.

Data analysis helps refine a strategy, but the strategic decisions should come first.

Cooperation between competitors to achieve shared strategic objectives.

Strategies for specific business areas (e.g., pricing, marketing) that support an overall business approach.

Superiority over competitors in a market; it requires more than just good operational effectiveness; it needs a unique strategy

Strategy helps businesses understand customers and competitors, improves resource allocation, strengthens operations, and motivates employees. It also helps in assessing progress toward goals

Strategy is the overarching approach to achieve goals, whilst objectives are measurable actions taken to execute the strategy.

A successful strategy should result in improved customer appeal and assist them in accomplishing their objectives

A well-defined and implemented strategy, communicated effectively, is crucial for business success, helping understand strengths, weaknesses, and opportunities.

An overarching approach to reach or exceed established goals, where actions directly relate to those goals.

Performing similar activities better than rivals but not leading to a competitive advantage on its own.

Measurable action taken by management and the company to implement the strategy.

A plan to achieve a specific goal, often involving steps and timelines.

A measurable element of a strategy, specifying what needs to be done and when.

Fundamental beliefs guiding an organization's actions.

Tools used to identify and attract potential customers.

Increasing the number of customers.

The team responsible for generating revenue.

Meetings to present ideas to potential clients.

Using insight and learning from others to develop a business plan.

Different methods for making important decisions within an organization, selected based on the specific situation and the leadership style.

A method focused on planning, organizing, commanding, coordinating, and controlling to achieve organizational aims.

Foreseeing the future, setting goals, and creating an action plan within a company.

Gathering resources and structuring the company to accomplish its goals.

Motivating employees to achieve the best results within a company (leading/motivating).

Unifying employee efforts to ensure success in a company.

Monitoring plans, making changes, and learning from feedback for future improvements within a company.

Managing uncertainty and maximizing opportunities by adapting to new situations.

Understanding your company's and your competitors' position in the market. This includes factors like pricing, brand reputation, product quality, customer loyalty, and financial health.

Overwhelmed by too much information, leading to difficulty in making decisions. This can happen when you gather too much data.

Questioning assumptions, exploring alternative solutions, and challenging current thinking to improve decision-making.

Questioning and challenging the assumptions and rationale behind others' ideas, even if they seem well-founded.

Anticipating and preparing for negative outcomes when making decisions, especially if there's a risk of unintended consequences.

A plan B, or alternative strategy, that's ready to be implemented if the initial plan fails or circumstances change unexpectedly.

Recognizing that the business environment is constantly evolving and adapting to those changes.

Developing strategies and plans to handle unforeseen events, acknowledging that the future is uncertain and will likely be different.

Focuses on the long-term and short-term financial performance goals of the company. It measures the overall financial success of the strategy.

Identifies the customer and market segments the company targets and aims to meet their needs. It's the source of revenue for the company.

Defines the processes used to create value for both customers and shareholders. It ensures efficient and effective delivery of goods and services.

Focuses on the capabilities and resources needed to achieve the objectives of the other three perspectives. It ensures the company can adapt and grow.

A strategic theme in the financial perspective aimed at increasing the company's income.

A strategic theme in the financial perspective aimed at minimizing expenses and improving efficiency.

A strategic theme in the financial perspective aimed at maximizing the use of company assets.

A framework within the process perspective that outlines the key processes for creating value. It is made up of the innovation, operations, and post-sales processes.